Robinhood (HOOD) Surges 11% After Winning Custody of US Government’s ‘Trump Account’ Child Investment Program

Shares of Robinhood Markets (HOOD) jumped 11.29% on May 28, 2026, after the U.S. Treasury named the brokerage as the primary custodian for the Trump Account, a government-sponsored initiative automatically enrolling newborns in stock-market ETFs. Starting July 4, 2026, children born from 2025 through 2028 will receive a $1,000 seed contribution in a tax-advantaged account. All minors are eligible to open accounts, with parents allowed to contribute up to $5,000 annually and employers able to add $2,500 per year for employees’ children. The Treasury requires funds to be invested in broad U.S. equity index ETFs or similar low-cost funds. Robinhood said default allocations will go into qualified low-cost index funds. Treasury Secretary Bessent estimated that at a 10.5% annualized return, the initial $1,000 alone could reach $600,000 by retirement. The program is expected to cover more than 10 million participants, based on last year’s birth rate of 3.6 million.