Trump Treasury Chief Calls New Child Savings Accounts “ A Path To Privatizing Social Security”

The White House on Thursday reaffirmed President Donald Trump’s commitment to preserving Social Security, following controversy sparked by Treasury Secretary Scott Bessent’s description of the administration’s new child investment plan as a potential “backdoor for privatizing” the program.

Speaking at a press briefing, White House press secretary Karoline Leavitt emphasized that the so-called “Trump accounts,” a feature of the administration’s recent “One Big Beautiful Bill,” are designed to supplement rather than replace Social Security. 

“This administration believes these newborn accounts… will help supplement, not substitute, Social Security,” Leavitt said, defending the tax-deferred savings plan aimed at boosting future financial security for American families, as first reported by POLITICO.

The Trump accounts would allow parents to invest up to $5,000 annually for each child, with penalty-free withdrawals beginning at age 59. The federal government would also contribute $1,000 for every baby born between 2025 and 2028, a move the administration has framed as pro-family and fiscally forward-looking.

But Bessent’s remarks at a Breitbart event in Washington on Wednesday stirred backlash. He called the program “a backdoor for privatizing Social Security,” noting the accounts’ long-term potential to significantly shift how Americans save for retirement. 

“In a way, it is a backdoor for privatizing Social Security. If, all of a sudden, these accounts grow and you have in the hundreds of thousands of dollars for your retirement, that’s a game-changer,” he said.

Democrats quickly seized on Bessent’s statement. “Have never seen a more textbook saying the quiet part out loud,” posted Democratic National Committee adviser Tim Hogan on X. In response, Bessent later clarified his comments, calling the accounts “an additive benefit” and reiterating that the administration remains committed to safeguarding Social Security while enhancing long-term retirement security for younger generations.