Treasury Secretary Scott Bessent said Wednesday that the so-called “Trump accounts” created by the One Big Beautiful Bill Act could be a “backdoor for privatizing Social Security.”
The comments, made during an appearance on the Breitbart podcast, are sure to provide fodder for Democrats, who have long accused Republicans of seeking to privatize the retirement programs. Many high-profile Republicans, especially President Donald Trump, have been careful in recent years to avoid any suggestion that they would cut or privatize Social Security.
The Trump accounts are a form of savings account for children, included in the tax legislation recently approved by Congress and signed into law by Trump.
The treasury secretary framed the accounts as a way for young people to learn about financial literacy.
“And also at the end of the day … but in a way it is a backdoor for privatizing Social Security,” Bessent said. “Like Social Security is a defined benefit plan paid out 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 gamechanger too.”
The Washington Examiner contacted the Treasury Department for further comment.
Bessent’s remarks quickly faced backlash from political figures on the Left. Rep. Brendan Boyle (D-PA), the top Democrat on the House Budget Committee, tweeted that he will “fight like hell to keep Donald Trump and his billionaire donors away from our hard-earned benefits.”
Despite Trump repeatedly saying he doesn’t want to cut Social Security, Democrats have argued that Republicans are trying to unwind, cut, or privatize the program.
The Trump accounts in question would be funded through the Treasury Department with a $1,000 credit for U.S. citizens born from 2025 through 2028. Parents and families could contribute up to $5,000 per year to those accounts.
Beneficiaries will not be permitted to pull from their Trump accounts until they turn 18. At that time, they can withdraw up to half the funds only for higher education costs, training programs, small business loans, or first-time home purchases. They can withdraw more funds later in life.
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Republicans have been cautious about advancing Social Security reform ideas since former President George W. Bush attempted to push for at least partial Social Security reform and privatization after he won his second term. That effort galvanized public opposition, and the idea was later scrapped.
Trump campaigned on not cutting Social Security, but his One Big Beautiful Bill Act contained a new tax cut on Social Security benefits.
