1:48Treasury Secretary Scott Bessent arrives prior to President Donald Trump addressing an event aimed at enhancing Americans’ access to their medical records in the East Room of the White House, July 30, 2025, in Washington.Mark Schiefelbein/AP
Treasury Secretary Scott Bessent is attempting to retract his assertion that the proposed Trump savings accounts for newborns might serve as a “back door” to initiate the privatization of Social Security.
Bessent expressed these thoughts during an interview with Breitbart while elaborating on the significance of financial literacy.
"But in a certain sense, it does serve as a back door for privatizing Social Security," Bessent remarked.
In a social media update on Wednesday evening, Bessent aimed to clarify his statements.
"Trump Baby Accounts are an additional benefit for future generations, which will enhance the integrity of Social Security’s guaranteed payments," Bessent stated on X. "This is not a matter of either-or: our Administration is dedicated to safeguarding Social Security and ensuring that seniors have more financial resources."
When questioned about Bessent’s comments on Thursday, the White House affirmed that Trump was "dedicated to safeguarding" Social Security.
"What the Treasury Secretary articulated, and what this administration stands for, is that these Trump newborn accounts, which are a remarkably innovative provision included in the significant, comprehensive bill for newborns, families, and future generations of Americans, will serve to supplement rather than replace Social Security," White House press secretary Karoline Leavitt informed reporters.
"The Trump administration is fully committed to protecting Social Security. The president did it during his first term and is continuing this effort now. Nevertheless, these newborn accounts represent an additional revenue source for young individuals, allowing them to accumulate wealth throughout their lives and ultimately access those funds to hopefully purchase a home and achieve the American dream," she added.
A spokesperson from the Treasury Department also clarified Bessent’s comments, stating that they are "additive" to Social Security, not a substitute for the existing benefits.
"Trump Accounts are a supplementary government initiative that operates alongside Social Security to expand and enhance the savings and wealth of Americans. Social Security remains an essential safety net for Americans and will always do so. This Administration has not only worked tirelessly for seniors but is also advocating for the next generation," the Treasury representative conveyed.
Treasury Secretary Scott Bessent arrives before President Donald Trump speaks at an event to promote his proposal to improve Americans’ access to their medical records in the East Room of the White House, July 30, 2025, in Washington.Mark Schiefelbein/AP
The "Trump Savings Accounts" were included in his major legislative agenda narrowly passed by congressional Republicans earlier this month. The initiative will allocate $1,000 into a tax-deferred, low-cost index fund account that will mirror the overall stock market for each newborn.
Additional contributions can reach up to $5,000 annually. Upon reaching adulthood, the children can utilize these funds to cover costs such as college or a down payment on a house.
If a child is born after December 31, those under 18 will receive one thousand dollars deposited into their accounts for investment purposes.
This program is a fresh initiative aimed at fostering financial literacy among Americans.
"And, you know, individuals can contribute up to specified amounts each year for their child, and they can invest those funds in the market, learning how to do so," Bessent mentioned in his interview with Breitbart.
When queried whether matching contributions from companies would be beneficial, Bessent responded affirmatively, stating it would be a "fantastic thing."
"Ultimately, I'm uncertain about when the distribution level date should be established. Should it be at 30 when you
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