The U.S. provides $1,000 to newborns! The “Trump Account” designates Robinhood and Bank of New York Mellon to process it in New York

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

The U.S. Department of the Treasury has issued an official announcement to formally launch a major financial policy that is seen as a “mass capital experiment.” According to the Treasury Department’s statement, BNY 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. Both parties will support the implementation of the “Trump Accounts” program and the initial account management, symbolizing that the policy has officially entered the execution stage.

Trump Accounts is 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 between 2025 and 2028 and invest the money directly into the market. After that, parents may contribute an additional up to $5,000 per year, and employers may also contribute an additional up to $2,500 for employees’ children, with tax advantages. As a rule, the funds may not be accessed before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating.

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Related estimates from White House economic advisers suggest that, 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 break $300,000 by age 18, and potentially reach the $1 million level by age 28—becoming a core selling point in policy promotion.

U.S. Treasury specifies BNY Mellon Bank and Robinhood to assist with Trump Accounts

According to the contents of the announcement, BNY will help manage the first batch of accounts and also participate in developing a dedicated Trump Accounts App. The application is positioned as a “white-label” product, designed and operated under government leadership, emphasizing security and ease of use, so that families can conveniently look up and manage their account assets. The official statement says the entire system will remain under the Treasury Department’s control, including account operations and platform governance, to ensure that public funds operate 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 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 access the capital market with a low barrier. The overall structure shows that this plan is not a single government initiative, but rather a cross-industry collaboration that combines a bank, a broker, and a design team.

The Treasury Department also emphasized that this move is based on its statutory authority as a “financial agent,” which allows it to designate qualified financial institutions to carry out financial services on behalf of the government in the capacity of a trustee. The official statement says 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, $1 million at age 28

In terms of policy design, Trump Accounts is 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 between 2025 and 2028 and invest the money directly into the market. After that, parents may contribute an additional up to $5,000 per year, and employers may also contribute an additional up to $2,500 for employees’ children, with tax advantages.

Regarding investment targets, the policy sets clear limits: the funds must be invested in low-cost index funds or ETFs that track the major U.S. stock market, and it requires that management fees not exceed 0.1%, ensuring that long-term compounding effects are not eroded by fees. This design is viewed as directly tying the public’s assets 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). As a rule, the funds may not be accessed before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating. If withdrawn early, they may face restrictions or penalties, but exceptions may apply for purposes such as education expenses and a first home purchase.

Related estimates from White House economic advisers suggest that, 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 break $300,000 by age 18, and potentially reach the $1 million level by age 28—becoming a core selling point in policy promotion.

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• Original title: 《The government gives every newborn $1,000! “Trump Accounts” designated to be handled by Robinhood and BNY Mellon Bank》
• Original author: Neo