The United States issues $1,000 to newborns! "Trump Account" designates Robinhood and Bank of New York Mellon to handle it

The U.S. Department of the Treasury has officially launched the Trump Accounts program, supported by Bank of New York Mellon and Robinhood to carry it out. The program aims to accumulate long-term wealth for the next generation through the capital markets.

The U.S. Department of the Treasury has released an official announcement to formally launch a major financial policy viewed as a “capital experiment for everyone.” According to the Treasury’s statement, Bank of New York Mellon (BNY) has been designated as the government’s financial agent, while Robinhood will serve as the broker and initial trustee for Trump Accounts. Both parties are responsible for supporting the rollout and early account management of the “Trump Accounts” program, symbolizing that the policy has officially entered the implementation stage.

Trump Accounts is positioned as an investment account designed for U.S. citizens under 18. Under the current plan, the government will provide $1,000 in initial investment funds for each newborn during the period from 2025 to 2028, and invest it directly in the market. After that, parents can make additional annual contributions of up to $5,000, and employers can also contribute an additional up to $2,500 for employees’ children, with tax advantages. In principle, the funds cannot be used before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating.

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White House economic adviser-related estimates suggest that, assuming an annualized return rate of about 10%, the $1,000 provided solely by the government could grow to about $5,800 after 18 years. If families continue investing the maximum amount every year, the asset size could exceed $300,000 at age 18, and even reach the $1 million level at age 28—becoming a core selling point in policy promotion.

U.S. Treasury names Bank of New York Mellon and Robinhood to help with Trump Accounts

According to the announcement, BNY will help manage the first batch of accounts and participate in developing a dedicated Trump Accounts App. The application is positioned as a “white-label” product, designed and operated with the government leading the way. It emphasizes security and ease of use, enabling families to conveniently look up and manage their account assets. The official said that the overall system will remain under the Treasury’s control, including account operations and platform governance, to ensure public funds are used under strict regulation.

Under the partnership structure, BNY has already established a partnership with Robinhood, and the latter will serve as the broker and initial trustee (trustee) for Trump Accounts. In addition, the interface design will be handled jointly by National Design Studio and Robinhood, emphasizing the creation of an intuitive user experience so that families can enter the capital markets with a low barrier to entry. Overall, the structure shows that this plan is not a single government initiative, but a cross-industry collaboration combining a bank, a brokerage, and a design team.

The Treasury also stressed that this action is based on its long-held statutory authority for “financial agents,” allowing it to designate eligible financial institutions to represent the government in carrying out financial services in a trustee capacity. The official said that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and protect the government’s interests.

The government provides $1,000 to each newborn; under the system, there could be a million dollars at age 28

In terms of policy design, Trump Accounts is positioned as an investment account designed for U.S. citizens under 18. Under the current plan, the government will provide $1,000 in initial investment funds for each newborn during the period from 2025 to 2028, and invest it directly in the market. After that, parents can make additional annual contributions of up to $5,000, and employers can also contribute an additional up to $2,500 for employees’ children, with tax advantages.

Regarding investment targets, the policy sets clear restrictions: the funds must be invested in low-cost index funds or ETFs that track the broad U.S. stock market, and it requires that management fees must not exceed 0.1% to ensure that the benefits of long-term compounding are not eroded by fees. This design is seen as tying the public’s assets directly to growth in the U.S. economy and enabling long-term wealth accumulation through the capital markets.

As for the account mechanism, it is similar to an individual retirement account (IRA). In principle, the funds may not be used before age 18; after reaching adulthood, they can be converted into a long-term investment account for continued accumulation. If withdrawals are made early, there may be limits or penalties, but there are exceptions for purposes such as education expenses and purchasing a first home.

White House economic adviser-related estimates suggest that, assuming an annualized return rate of about 10%, the $1,000 provided solely by the government could grow to about $5,800 after 18 years. If families continue investing the maximum amount every year, the asset size could exceed $300,000 at age 18, and even reach the $1 million level at age 28—becoming a core selling point in policy promotion.

• This article is reproduced with authorization from: 《Lian News》
• Original title: 《The government provides $1,000 to newborns! “Trump Accounts” specifies Robinhood and Bank of New York Mellon to handle it》
• Original author: Neo