finance
Robinhood Partners with U.S. Treasury and BNY Mellon for Trump Accounts Targeting Children Born 2025-2028
The U.S. Treasury Department selected Robinhood and BNY Mellon to support Trump Accounts, tax-deferred investment accounts for children. These accounts will launch this summer with a $1,000 government contribution for eligible newborns. Robinhood CEO Vlad Tenev stated the partnership aligns with the company's mission to expand access to finance.
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U.S. Treasury Department announced on Monday that it has selected Robinhood and BNY Mellon to facilitate Trump Accounts. These are tax-deferred, custodial investment accounts designed for children born between 2025 and 2028.
The program includes a $1,000 seed contribution from the government, with accounts set to launch this summer. Robinhood will serve as a broker and trustee in the partnership with BNY Mellon. The company will design the associated app, provide the front-end interface, and handle customer support.
This arrangement positions Robinhood as a subcontractor to BNY Mellon under a government agreement. As of March 31, more than 4 million children had been signed up for Trump Accounts by taxpayers. Over 1 million of these children are eligible for the Treasury's $1,000 pilot program contribution, according to the IRS.
The accounts are intended to be fee- and commission-free for customers.
described the initiative during an appearance on CNBC's "Squawk on the Street" on Tuesday.
“This puts Robinhood in front of the next generation ... this is literally going to be the first investment account for millions of people.”
Tenev noted that the company is prioritizing the government partnership in the near term over immediate monetization. He indicated that any future management fees through ETFs in the accounts would be minimal. The partnership marks Robinhood's first significant collaboration with the government in this capacity.
Several financial institutions have announced plans to match the federal $1,000 contribution for employees' children. These include JPMorgan Chase, Bank of America, Wells Fargo, SoFi, BlackRock, Charles Schwab, BNY Mellon, and Robinhood. The program aims to provide low-cost investment options for young participants.
