The United States will issue 1,000 bucks to newborns! The “Trump account” designates Robinhood and Bank of New York Mellon for processing

The U.S. Department of the Treasury has officially launched the Trump Accounts program, with support from Bank of New York Mellon and Robinhood. The program is intended to build long-term wealth for the next generation through capital markets.

The U.S. Department of the Treasury has released an official announcement, officially launching a major financial policy regarded as a “mass 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 (the “Trump Accounts” plan under the name). Both entities are responsible for supporting the implementation of the “Trump Accounts” program and the initial account management, symbolizing that the policy has entered the execution phase in an official capacity.

Trump Accounts is positioned as an investment account designed for U.S. citizens under 18. Under the current plan, the government will provide an initial investment amount of $1,000 for each newborn during the period from 2025 to 2028, and invest it directly into the market. After that, parents may contribute an additional maximum of $5,000 per year, and employers may also contribute an additional maximum of $2,500 for their employees’ children, with tax advantages. In principle, the funds may not be used before age 18; after 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 households continue contributing the maximum amount each year, the asset size could potentially exceed $300,000 at age 18, and even reach a $1 million level by age 28—becoming a core 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 initial accounts and also participate in developing a dedicated Trump Accounts App. The app is positioned as a “white-label” product, designed and operated under government leadership, emphasizing security and ease of use so that families can conveniently check and manage 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 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 enter the capital markets with a low barrier to entry. Overall, the structure indicates that this program is not a single government initiative, but rather a cross-industry collaboration combining a bank, a broker, and a design team.

The Treasury also emphasized that this action is based on its long-standing statutory authority to appoint “financial agents,” enabling it to designate qualified financial institutions to represent the government in providing 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 to protect government interests.

The government provides $1,000 to each newborn—under the system, there can be 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 an initial investment amount of $1,000 for each newborn during the period from 2025 to 2028, and invest it directly into the market. After that, parents may contribute an additional maximum of $5,000 per year, and employers may also contribute an additional maximum of $2,500 for their employees’ children, with tax advantages.

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 the management fee must not exceed 0.1% to ensure that the long-term compounding effect is not eroded by fees. This design is viewed as directly tying everyday people’s assets to the growth of the U.S. economy, enabling 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 accessed before age 18; after reaching adulthood, they can be converted into a long-term investment account to continue accumulating. If funds are withdrawn early, there may be restrictions or penalties, but there are exceptions for purposes such as education expenses and first-home purchases.

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 households continue contributing the maximum amount each year, the asset size could potentially exceed $300,000 at age 18, and even reach a $1 million level by age 28—becoming a core selling point in the policy promotion.

• This article has been reprinted with authorization from: 《Lian News》
• Original title: 《The government provides $1,000 to newborns! “Trump Accounts” designated to be handled by Robinhood and Bank of New York Mellon》
• Original author: Neo