The United States issues $1,000 to newborns! "Trump Account" designates Robinhood and Bank of New York Mellon to handle

The U.S. Department of the Treasury officially launches the Trump Accounts program, assisted by BNY Mellon Bank of New York and Robinhood to carry it out. The program is designed 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, officially launching a major financial policy regarded as a “people’s capital experiment.” According to the Treasury’s statement, New York 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 are responsible for supporting the implementation of the “Trump Accounts” program and managing the initial accounts, symbolizing that the policy has entered the execution stage.

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 of $1,000 for each newborn during 2025 to 2028 and directly invest it in the market. After that, parents may contribute an additional up to $5,000 per year, employers may also contribute an additional up to $2,500 for employees’ children, and the contributions are eligible for tax benefits. As a rule, the funds may not be withdrawn before age 18; after reaching adulthood, they may be converted into a long-term investment account to continue accumulating.

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White House economic advisor-related estimates: With an assumed annualized return rate of about 10%, the $1,000 provided by the government alone could grow to about $5,800 after 18 years; if the household continues investing the maximum amount each year, the asset size could break $300,000 by age 18, and even reach the $1 million level by age 28—becoming a core selling point in the policy publicity.

U.S. Treasury designates 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 participate in developing a dedicated Trump Accounts App. The application 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 said that overall control of the system will remain with the Treasury, including account operations and platform governance, to ensure that public funds operate under strict regulation.

Under the cooperation structure, 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 jointly handled 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 an cross-industry collaboration combining banks, brokers, and design teams.

The Treasury also emphasized that this is based on its statutory authority as a long-term “financial agent,” allowing it to designate qualified financial institutions to carry out financial services on behalf of the government in the capacity of trustees. The official said 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, 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 of $1,000 for each newborn during 2025 to 2028 and directly invest it in the market. After that, parents may contribute an additional up to $5,000 per year, employers may also contribute an additional up to $2,500 for employees’ children, and the contributions are eligible for 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 management fees may not exceed 0.1% to ensure that the effects of long-term compounding are not eroded by fees. This design is seen as tying the nation’s assets directly 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). The funds generally 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.

White House economic advisor-related estimates: With an assumed annualized return rate of about 10%, the $1,000 provided by the government alone could grow to about $5,800 after 18 years; if the household continues investing the maximum amount each year, the asset size could break $300,000 by age 18, and even reach the $1 million level by age 28—becoming a core selling point in the policy publicity.

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• Original title: 《The government provides $1,000 to newborns! “Trump Accounts” specify Robinhood and BNY Mellon Bank to handle it》
• Original author: Neo