Bank of New York Mellon Corp. and Robinhood Markets Inc. will help manage the "Trump accounts" created for children as part of the One Big Beautiful Bill Act last year.
BNY will manage the initial accounts and help develop an app for the program, and Robinhood will serve as the brokerage and initial trustee, the U.S. Treasury Department said in a statement Monday.
Banks and asset managers have been looking for ways to be involved as the government starts to map out the program. Under the initiative, the government plans to automatically seed an account with $1,000 for
In guidance released in December, the government said that the Treasury Department will select one or more financial institutions to be a trustee for the initial accounts. That same guidance also called for trustees of rollover accounts.
The Treasury was
The accounts are expected to be invested in U.S. stock index funds and locked up until the child turns 18. The Internal Revenue Service said that the funds should have annual fees and expenses of no more than 0.1%.
The program secured a huge boost from Michael and Susan Dell, who said in December that they will give 25 million American children $250 each to jump-start an investment account. That gift totals $6.25 billion.
