Robinhood to handle Trump Account transfers before July 4 launch

Trump Accounts are set to launch July 4 as the administration’s child investment program begins with $1,000 government-funded accounts for U.S. citizens born between 2025 and 2028. Families can also open accounts for children under 18 with a valid Social Security number, though only those born during that period are eligible for the federal contribution. The Treasury Department is overseeing the program, with Robinhood and BNY acting as administrators. The accounts are free to open, and parents, relatives, employers and charitable organizations can contribute up to $5,000 a year on a pre-tax basis. Contributions will be automatically invested in low-cost index funds, with launch allocations going into the State Street SPDR Portfolio S&P 500 ETF and additional options from BlackRock and Vanguard. Account holders gain control at age 18, when they can withdraw funds or remain invested, with gains taxed upon withdrawal. Several U.S. companies have pledged support through employer matches or additional seed funding, including Visa, Dell, Comcast and Micron, which pledged $250 million. Supporters say the structure could broaden access to long-term investing and financial literacy, while critics argue the benefits may accrue mainly to families and workers already positioned to make regular contributions over time.