The United States will provide $1,000 to newborns! The “Trump Account” specifies Robinhood and Bank of New York Mellon to process it

The U.S. Department of the Treasury has officially launched the Trump Accounts program, with the help of BNY Mellon Bank of New York and Robinhood. The program is intended to build long-term wealth for the next generation through the capital markets.

The U.S. Department of the Treasury issued an official announcement formally launching a major financial policy that is viewed as a “capital experiment for everyone.” According to the Treasury’s statement, BNY Mellon Bank of New York (BNY) has been designated as the government’s financial agent institution, while Robinhood will serve as the broker and initial trustee for Trump Accounts. The two parties are responsible for supporting the rollout of the “Trump Accounts” program and the management of initial accounts, 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 U.S. dollars in initial investment funds for each newborn during 2025 to 2028 and invest it directly into the market. After that, parents can additionally contribute up to 5,000 U.S. dollars each year, employers can also contribute an additional up to 2,500 U.S. dollars for their employees’ children, and such contributions are eligible for tax benefits. In principle, the funds may not be used before the child turns 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating.

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Estimates related to the White House economic advisors suggest that, assuming an annualized return rate of about 10%, the 1,000 U.S. dollars provided solely by the government could grow to about 5,800 U.S. dollars after 18 years. If the household continues investing the maximum amount every year, the asset size could potentially exceed 300,000 U.S. dollars at age 18, and even reach a level of 1 million U.S. dollars by age 28—becoming the key selling point emphasized in the policy promotion.

U.S. Treasury designates BNY Mellon Bank 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 by the government, emphasizing security and ease of use, so that families can conveniently view and manage their account assets. The official statement notes that overall system control will remain with the Treasury Department, including account operations and platform governance, to ensure that public funds operate under strict regulation.

Under the partnership framework, 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 jointly handled 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. Overall, the framework shows that this plan is not a single government project, but rather a cross-industry collaboration combining a bank, a broker, and design teams.

The Treasury Department also emphasizes that this is based on its legally authorized power of the “financial agent” it has long possessed, allowing it to designate eligible financial institutions to carry out financial services on behalf of the government in the capacity of trustee. The official statement indicates that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and to safeguard government interests.

The government provides 1,000 U.S. dollars to each newborn, with a million-dollar outcome at age 28 under the system

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 U.S. dollars in initial investment funds for each newborn during 2025 to 2028 and invest it directly into the market. After that, parents can additionally contribute up to 5,000 U.S. dollars each year, employers can also contribute an additional up to 2,500 U.S. dollars for their employees’ children, and such contributions are eligible for tax benefits.

Regarding investment targets, the policy includes clear restrictions: the funds must be invested in low-cost index funds or ETFs that track a broad U.S. stock market index, and management fees must not exceed 0.1%, ensuring that the effects of long-term compounding are not eroded by fees. With this design, it is seen as directly linking the assets of the public to the growth of the U.S. economy, achieving long-term wealth accumulation through the capital markets.

The account mechanism is similar to an individual retirement account (IRA): in principle, the funds may not be used before the child turns 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating. If the funds are withdrawn early, there may be restrictions or penalties, but exceptions may apply for purposes such as education expenses and first home purchases.

Estimates related to the White House economic advisors suggest that, assuming an annualized return rate of about 10%, the 1,000 U.S. dollars provided solely by the government could grow to about 5,800 U.S. dollars after 18 years. If the household continues investing the maximum amount every year, the asset size could potentially exceed 300,000 U.S. dollars at age 18, and even reach a level of 1 million U.S. dollars by age 28—becoming the key selling point emphasized in the policy promotion.

• This article is authorized for republication from: 《Chain News》
• Original title: 《The government provides 1,000 U.S. dollars to newborns! The “Trump Account” specifies handling by Robinhood and BNY Mellon Bank》
• Original author: Neo