The United States will distribute $1,000 to newborns! The “Trump Account” designates 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 support of Bank of New York Mellon and Robinhood for implementation. The program aims to accumulate long-term wealth for the next generation through the capital markets.

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

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 into the market. After that, parents may contribute an additional $5,000 per year at most, and employers may also contribute an additional $2,500 at most for employees’ children, with tax advantages. 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.

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White House economic adviser-related estimates, assuming an annualized return rate of about 10%, suggest that the $1,000 provided by the government alone 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 at age 18, and even reach the $1,000,000 level by age 28—making it a core selling point in the policy promotion.

U.S. Treasury designates 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 application is positioned as a “white-label” product, designed and operated with the government leading the way, emphasizing security and ease of use, so that families can conveniently look up and manage their account assets. The official statement says that overall, the Treasury Department will retain control rights over the system, including account operations and platform governance, to ensure that public funds operate under strict oversight.

In terms of the cooperation framework, BNY has already established a partnership with Robinhood, and the latter will serve as the broker-dealer and the 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 enter the capital markets with a low barrier. The overall structure shows that this plan is not a single government project, but rather a cross-industry collaboration that combines a bank, a brokerage, and a design team.

The Treasury Department also emphasized that this is based on its long-held statutory authority for “financial agents,” which allows it to designate qualified financial institutions to represent the government in executing financial services in the capacity of 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 safeguard the government’s interests.

The government provides $1,000 to each newborn, and under the system it can reach 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 into the market. After that, parents may contribute an additional $5,000 per year at most, and employers may also contribute an additional $2,500 at most for employees’ children, with tax advantages.

For 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 benchmark, and the management fee must 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 U.S. economic growth and 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 age 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 educational expenses and a first home purchase.

White House economic adviser-related estimates, assuming an annualized return rate of about 10%, suggest that the $1,000 provided by the government alone 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 at age 18, and even reach the $1,000,000 level by age 28—making it a core selling point in the policy promotion.

• This article is reprinted with authorization from: 《Chain News》
• Original title: 《Government grants newborns $1,000! “Trump Accounts” designated to be handled by Robinhood and Bank of New York Mellon》
• Original author: Neo