Today, the Defense Credit Union Council (DCUC) has sent a letter to Treasury Secretary Bessent offering support and assistance in implementing the Creating Hope and Opportunity for Our Babies and Toddlers (CHOBAT) Act—a key provision of H.R. 1, the One Big Beautiful Bill.
This landmark initiative, often referred to as the “Trump Accounts” or baby bonus accounts, establishes a one-time $1,000 government-funded custodial account for every American newborn from 2025 through 2028. The program is to be administered by private financial institutions under Treasury oversight.
“…At numerous U.S. bases and installations abroad, the on-base credit union is the primary (sometimes sole) banking facility available to military families. If credit unions are fully integrated into the baby accounts program, a young military family stationed in a remote location or overseas will still have ready access to open and manage their newborn’s $1,000 Trump Account through the local on-base credit union. This ensures the program truly achieves universal coverage. Additionally, credit unions have deep experience serving populations that might be overlooked by larger for-profit banks – including lower-income and rural families, as well as junior enlisted servicemembers. By leveraging our existing presence and relationships in these communities, Treasury can increase uptake of the newborn accounts and make the program more inclusive.”
“This initiative presents a transformative opportunity to invest in the future of our nation’s children,” says Anthony Hernandez, DCUC President/CEO. “As not-for-profit financial cooperatives, credit unions are uniquely positioned to deliver this benefit to military families, including those stationed overseas or in remote locations where credit unions may be the only financial institutions available.”
DCUC shared that including credit unions will:
- Ensure universal access, especially for military families in remote or overseas locations.
- Leverage existing infrastructure to efficiently manage custodial accounts, including compliance with Section 408(a) of the Internal Revenue Code.
- Provide low-fee, high-trust services focused on maximizing the long-term value of each $1,000 account.
- Offer financial education as children grow, helping families make the most of their savings when the funds become available at age 18.
“Credit unions have the systems, expertise, and mission-driven focus to help ensure this program succeeds,” adds Jason Stverak, DCUC Chief Advocacy Officer. “We’re eager to partner with Treasury to build a program that truly delivers on its promise—for every child, in every community.”
DCUC called on the Treasury Department to formally include credit union representatives in any working groups, advisory committees, or pilot programs related to the rollout of the CHOBAT Act’s baby accounts.