Robinhood has proposed giving each newborn $1,000 to invest in the S&P 500

Robinhood has expressed support for a bill that would mandate automatic brokerage accounts for all newborns in the United States. These accounts would be funded with $1000 from the country’s budget and invested in the S&P 500 index.

The idea was discussed at the summit with Donald Trump and businesses including Dell and Goldman Sachs. Vlad Tenev said the company is capable of servicing 3.5 million such accounts annually while staying within budget constraints.

Robinhood has demonstrated a model in which the account can grow to $825,000 by age 30 with regular additions. Lobbyists at Invest America believe that children could receive up to an additional $50,000 through private contributions.

The initiative will cost about $35 billion over 10 years. A child will be able to access the funds from the age of 18. Accounts will be invested in the index without active participation of users.

The Robinhood platform has offered to provide all the necessary technology infrastructure to support the implementation of this program at the federal level.

Amid news of the initiative, Robinhood shares fell 6% after being excluded from the S&P 500, as reported by Reuters.