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 officially launched the Trump Accounts program, with the assistance of BNY Mellon Bank and Robinhood. The program aims to accumulate long-term wealth for the next generation through capital markets.

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

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

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

U.S. Department of the Treasury names BNY Mellon Bank and Robinhood to handle Trump Accounts

According to the contents of the announcement, BNY will assist in managing the first batch of accounts and also participate in developing a dedicated Trump Accounts App. The app is positioned as a “white-label” product. It will be designed and operated under the government’s leadership, emphasizing security and ease of use, so that families can conveniently look up and manage the value of their account assets. The official statement notes that the overall system will be under the Treasury Department’s control, 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 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 market with a low barrier to entry. The overall structure shows that this program is not a single government initiative, but rather an inter-industry collaboration combining a bank, a brokerage firm, and design teams.

The Treasury Department also emphasized that this is based on its long-standing statutory authority of having “financial agents,” which enables it to designate eligible financial institutions to represent the government in executing financial services in the capacity of trustee. The official statement said that all participating institutions must meet strict regulatory standards, performance requirements, and cybersecurity controls to ensure the safety of public funds and safeguard the government’s interests.

The government provides $1,000 to each newborn—by age 28 there could be a million dollars

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

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

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

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

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• Original title: 《The government provides $1,000 to newborns! The “Trump Account” designates Robinhood and BNY Mellon Bank to handle it》
• Original author: Neo