Controversy Sparks Over 'Trump Baby Accounts' and Social Security Privatization

U.S. Treasury Secretary Scott Bessent on Wednesday drew parallels between newly introduced savings accounts in a recent law signed by President Donald Trump and the privatization of Social Security. The remark was made at an event organized by Breitbart.

The accounts, part of Trump's comprehensive tax and spending legislation, aim to support new parents with a one-time $1,000 government contribution. The White House states that these accounts, by tracking a stock index, will permit additional private contributions up to $5,000 annually. However, Bessent highlighted that distribution dates and fund access details are still under discussion.

"In essence, this could be seen as a backdoor to privatizing Social Security," Bessent noted. The Social Security program, established in the 1930s, faces funding challenges, predicted to impact full benefit payments by 2033. While concerns have been voiced by figures such as U.S. Senator Ron Wyden, the Trump administration maintains its stance on safeguarding Social Security, with Bessent reiterating on X that these accounts are intended to complement the existing system.

(With inputs from agencies.)