The Defense Credit Union Council (DCUC) called on the U.S. Department of the Treasury to ensure credit unions are fully integrated into the implementation of the “Trump Accounts” program, a $1,000 government-funded custodial account for every American newborn from 2025 through 2028.
Known as the Creating Hope and Opportunity for Our Babies and Toddlers (CHOBAT) Act, the initiative was enacted as part of H.R. 1, the “One Big Beautiful Bill.” Treasury will oversee the accounts, which are to be administered by private financial institutions. DCUC is advocating for credit unions, particularly those serving military families, to be authorized as custodians.
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“This initiative presents a transformative opportunity to invest in the future of our nation’s children,” Anthony Hernandez, DCUC's president/CEO, said in a letter sent July 7 to Treasury Secretary Scott Bessent. “Credit unions are uniquely positioned to deliver this benefit to military families, including those stationed overseas or in remote locations.”
The DCUC letter emphasized that on many U.S. military bases, especially overseas, on-base credit unions are often the only financial institutions available. Including credit unions would ensure “universal coverage,” allowing families to access accounts regardless of geography. The letter also highlighted the not-for-profit, member-owned nature of credit unions and their long-standing commitment to financial education.
DCUC Chief Advocacy Officer Jason Stverak added: “Credit unions have the systems, expertise and mission-driven focus to help ensure this program succeeds.”
DCUC urged Treasury to include credit union representation in all working groups, advisory committees and pilot programs related to the rollout. It also stressed that credit unions are equipped to manage the accounts under IRS Section 408(a) and can do so with lower fees and a focus on long-term financial literacy.
The baby accounts are set to launch fully in 2026.
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Michael Ogden
Editor-in-Chief at CU Times. To connect, email at [email protected]. As Editor-in-Chief of CU Times since 2016, Michael Ogden has led the editorial team in all aspects of content strategy and execution, including the creation of the publication’s exclusive and proprietary research database of the credit union industry’s economic landscape. Under Michael’s leadership, CU Times has successfully shifted to an all-digital editorial product with new focuses on the payments, fraud, lending and regulatory beats. Most recently, he introduced a data-focused editorial product for subscribers that breaks down credit union issues into hard data, allowing for a deeper and more factual narrative for readers. In 2024, he launched the "Shared Accounts With CU Times" podcast, which offers a fresh, inside-the-newsroom perspective through interviews with leaders from the credit union industry and the regulatory world. He dives into pressing credit union issues, while revealing the personalities working behind-the-scenes to push the credit union world forward. His background includes years as a radio and TV anchor/reporter and a public relations and digital/social media manager, where he covered the food and music industries, as well as cooperatives and credit unions. Over the years, he has launched numerous exclusive video and podcast series, including a successful series of interactive backstage interviews with musicians at music festivals, showcasing his social media and live streaming production skills.
