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Bessent Walks Back Social Security Privatization Remark on Trump Baby Accounts

The administration insists the new tax-deferred savings accounts for babies will enhance rather than replace retirement security

President Donald Trump, right, shakes hands with Treasury Secretary Scott Bessent, left, as Sen. Dave McCormick, R-Pa., center, looks on at the "Inaugural Pennsylvania Energy and Innovation Event" at Carnegie Mellon University, Tuesday, July 15, 2025, in Pittsburgh.
Treasury Secretary Scott Bessent attends a meeting in the Oval Office at the White House in Washington, DC, on July 22.

Overview

  • Treasury Secretary Scott Bessent told a Breitbart forum that Trump accounts could serve as a “backdoor for privatizing Social Security,” triggering sharp Democratic criticism on July 30.
  • In a social media post and on CNBC, Bessent clarified that the $1,000-seed accounts are intended to supplement Social Security’s guaranteed payments, not substitute them.
  • White House Press Secretary Karoline Leavitt told reporters the program will bolster retirement savings for future generations while preserving the existing Social Security framework.
  • Leading Democrats including Senate Minority Leader Chuck Schumer and Rep. Richard Neal maintain the accounts could pave the way for dismantling guaranteed benefits despite administration assurances.
  • Officials are finalizing IRS regulations and automatic-enrollment procedures ahead of the Trump accounts’ planned July 2026 launch for U.S. newborns through 2028, with private contributions capped at $5,000 annually.