BNY and Robinhood Will Help Run ‘Trump Accounts’ for Children

Key Points:

• The Treasury Department announced that Bank of New York Mellon and Robinhood will manage the new Trump accounts, a tax-sheltered savings system for children created under President Trump’s 2023 domestic spending bill.
• The accounts, which will start accepting deposits in July, have enrolled four million children so far, with about one million qualifying for a $1,000 federal seed contribution.
• Bank of New York Mellon will serve as the financial agent managing the accounts, while Robinhood will act as the brokerage and initial trustee, also collaborating with the White House’s National Design Studio to develop the accounts’ app.
• The Trump accounts allow contributions from parents, relatives, employers, and others, with funds generally locked until the child turns 18; the government plans to make the accounts portable and transferable in the future.
• Industry groups like the Investment Company Institute advocate for a competitive marketplace for account trustees and custodians, aiming to expand options and flexibility within the program.