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, assisted by Bank of New York Mellon and Robinhood in its implementation. The program is designed to accumulate long-term wealth for the next generation through the capital markets.

The U.S. Department of the Treasury released 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 serves as the broker and initial trustee for Trump Accounts. Both are responsible for supporting the rollout and early account management of the “Trump Accounts” program, symbolizing that the policy has entered the implementation phase in an official capacity.

Trump Accounts is positioned as an investment account designed for U.S. citizens under 18 years old. Under the current plan, the government will provide an initial investment of $1,000 for each newborn during the period from 2025 to 2028, and invest it directly into the market. After that, parents may additionally contribute up to $5,000 per year, employers may also contribute up to $2,500 for employees’ children, and the contributions come with tax benefits. As a rule, the funds may not be used before the age of 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 Council of Economic Advisers: assuming an annualized return rate of about 10%, the $1,000 provided by the government alone could grow to approximately $5,800 after 18 years. If families continue to invest up to the maximum amount each year, the asset size could have the potential to exceed $300,000 at age 18, and even reach the $1 million level by age 28—becoming a key selling point in the policy promotion.

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 a dedicated Trump Accounts App. The application is positioned as a “white-label” product. It will be 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 that overall system control will remain with the Treasury, including account operations and platform governance, to ensure public funds operate under strict supervision.

Under the cooperation framework, BNY has already established a partnership with Robinhood, and the latter will act as the broker and initial trustee for Trump Accounts. In addition, the interface design will be handled jointly by the National Design Studio and Robinhood, with an emphasis on building an intuitive user experience so that families can enter the capital markets with a low barrier to access. The overall framework indicates that this program is not a single government project, but rather an cross-industry collaboration that combines a bank, a brokerage, and design teams.

The Treasury also emphasized that this is based on its long-standing statutory authority of “financial agents,” allowing it to designate qualified financial institutions to represent the government in executing financial services 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 safeguard government interests.

The government provides $1,000 to each newborn; under the system, you can have 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 years old. Under the current plan, the government will provide an initial investment of $1,000 for each newborn during the period from 2025 to 2028, and invest it directly into the market. After that, parents may additionally contribute up to $5,000 per year, employers may also contribute up to $2,500 for 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 benchmark, and it requires that the management fee not exceed 0.1%, ensuring that long-term compounding effects are not eroded by fees. This design is considered to directly tie the public’s assets 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). As a rule, the funds may not be used before age 18; after reaching adulthood, they can be converted into a long-term investment account for continued accumulation. If withdrawn early, there may be restrictions or penalties, but exceptions may be available for purposes such as education expenses and a first home purchase.

Estimates related to the White House Council of Economic Advisers: assuming an annualized return rate of about 10%, the $1,000 provided by the government alone could grow to approximately $5,800 after 18 years. If families continue to invest up to the maximum amount each year, the asset size could have the potential to exceed $300,000 at age 18, and even reach the $1 million level by age 28—becoming a key selling point in the policy promotion.

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• Original title: 《Government provides $1,000 to newborns at large—“Trump Accounts” designate Robinhood and Bank of New York Mellon to handle》
• Original author: Neo