Bessent Says Trump Accounts For Kids Are Backdoor ‘For Privatizing Social Security’

Authored by Aldgra Fredly via The Epoch Times,

Treasury Secretary Scott Bessent said in an interview this week that the Trump Accounts, which are aimed at helping parents save for their children’s future, are “a back door for privatizing Social Security,” before later clarifying that the administration remains committed to protecting Social Security.

Trump Accounts are tax-advantaged investment vehicles created as part of President Donald Trump’s One Big Beautiful Bill Act.

Under the bill, parents can contribute up to $5,000 yearly, while the federal government will contribute $1,000 into the accounts for children born in the United States between Jan. 1, 2025, and Dec. 31, 2028.

Speaking at a Breitbart policy panel, Bessent said the government seeks to enhance Americans’ financial literacy, particularly through the use of Trump Accounts, although the distribution timeline is still unclear.

“I’m not sure when the distribution level date should be … But in a way, it is a backdoor for privatizing Social Security,” Bessent said.

“Social Security is a defined benefit plan paid out that, to the extent that if all of a sudden these accounts grow, and you have in the hundreds of thousands of dollars for your retirement, then that’s a game changer too.”

Sen. Ron Wyden (D-Ore.), ranking member of the Senate Finance Committee, which oversees Social Security, criticized Bessent’s remarks and accused the administration of lying about protecting the program.

“This would be a disaster for seniors and for all Americans who will rely on Social Security for a dignified retirement, and it’s a guarantee that Republicans would follow up privatization with brutal cuts that would drive vulnerable people into destitution,” Wyden said in a July 30 statement.

Bessent posted on X later on Wednesday, saying the administration remains committed to protecting Social Security and that the Trump Accounts would “supplement the sanctity of Social Security’s guaranteed payments.”

“This is not an either-or question: our administration is committed to protecting Social Security and to making sure seniors have more money,” he stated.

“This is why President Trump’s One Big Beautiful Bill gave tax cuts to those receiving these Social Security benefits.”

Social Security is a federal program that provides financial support to individuals who are retired, disabled, or the surviving family members of deceased workers.

A recent report by the Committee for a Responsible Federal Budget (CRFB) states that Social Security recipients could see a 24 percent cut to their monthly payments by late 2032, as trust funds that finance the program are depleted.

The actual size of the Social Security benefit cut would vary based on age, work history, and marital status, the CRFB said, adding that some higher-income couples could see annual payment reductions of around $24,000.