The United States will provide $1,000 to newborns! The “Trump Account” is designated to be handled by Robinhood and Bank of New York Mellon

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

The U.S. Department of the Treasury has issued an official announcement, formally launching a major financial policy that is seen as a “nationwide capital experiment.” 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 implementation and initial account management of the “Trump Accounts” program, symbolizing that the policy has officially entered the execution phase.

Trump Accounts is positioned as an investment account designed for American citizens under 18 years old. Under current plans, the government will provide each newborn with an initial investment of $1,000 during the period from 2025 to 2028, and invest it directly in the market. After that, parents may additionally contribute up to $5,000 per year, employers may also contribute an additional up to $2,500 for their employees’ children, and the contributions come with tax benefits. In principle, the funds may not be used before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating 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 solely by the government could grow to about $5,800 after 18 years; if families continue contributing the maximum amount each year, the asset size could potentially exceed $300,000 by age 18, and even reach a level of $1 million by age 28—becoming a core selling point in policy publicity.

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

According to the announcement, BNY will help manage the first batch of accounts and also participate in developing the dedicated Trump Accounts App. The app is positioned as a “white-label” product, designed and operated under the leadership of the government, emphasizing security and ease of use so that families can conveniently look up and manage their account assets. The official statement notes that overall control of the entire system will remain with the Treasury, including account operations and platform governance, to ensure that public funds operate under strict oversight.

Under the collaboration 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 access the capital markets with a low barrier to entry. The overall framework shows that this plan is not a single government initiative, but rather a cross-industry collaboration that combines a bank, a broker, and design teams.

The Treasury also emphasized that this is based on its legally granted long-term authority for “financial agents,” which allows it to designate qualified financial institutions to carry out financial services on behalf of the government as trustees. The official statement also notes 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 for each newborn, with $1 million at age 28 under the system

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

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

The account mechanism 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 to continue accumulating. If withdrawals are made early, the program may impose restrictions or penalties, but exceptions may be available for education expenses and a first home purchase, among other uses.

Based on estimates related to the White House economic advisors, 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 contributing the maximum amount each year, the asset size could potentially exceed $300,000 by age 18, and even reach a level of $1 million by age 28—becoming a core selling point in policy publicity.

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