Treasury Secretary Scott Bessent said Wednesday that President Donald Trump's new children's savings program "is a back door for privatizing Social Security," a remark at a Breitbart News forum that revived a long-fraught debate Republicans have largely avoided in recent years.
What Happened: Hours later, Bessent sought to steady the message, saying the accounts created under the law "will supplement the sanctity of Social Security's guaranteed payments."
Bessent also posted that the administration remains committed to protecting seniors, adding in his evening clarification that it is "not an either-or" proposition, a point he emphasized after his earlier comment ricocheted across Capitol Hill. His X post arrived as the controversy eclipsed the rollout of the policy and prompted questions about whether the White House was shifting toward market-based retirement savings.
See Also: Could Trump Accounts Turn American Babies Into Tomorrow’s Millionaires? Here’s What Experts Say
The law established ‘Trump Accounts,’ tax-advantaged savings for children born in the United States that receive a potential $1,000 Treasury seed and allow post-tax contributions up to $5,000 a year, with rules modeled on IRAs. According to a report by the Associated Press, supporters say the balances can build over time and broaden wealth. Critics warn the structure nudges retirement security away from Social Security's guarantees.
Why It Matters: Democrats seized on Bessent's phrasing, with Senate Majority Leader Chuck Schumer (D-N.Y.) saying the comment signaled an intent to revive privatization efforts that voters have repeatedly rejected. “A stunning admission,” Schumer said in a Senate speech. “Bessent actually slipped, told the truth: Donald Trump and government want to privatize Social Security.”
The Treasury Department later said to AP that the child accounts are an additive program that works in conjunction with Social Security and that the federal benefit "always will be" a critical safety net, seeking to quell backlash.
Bessent's comment at the forum cut against Trump's repeated campaign assurances that he would protect the program, even as Republicans explore new savings vehicles. For now, Treasury says the accounts expand wealth-building without replacing Social Security, while the administration insists its goal is to leave retirees with "more money."
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