WASHINGTON D.C. – Treasury Secretary Scott Bessent ignited a political controversy this week by stating that the newly established "Trump Accounts," created under a recent tax and spending bill, serve as a "backdoor for privatizing Social Security." The remark, made at a Breitbart-hosted event, immediately drew sharp criticism from Democratic lawmakers, who accused the administration of reneging on pledges to protect the federal retirement program.
Senator Tammy Duckworth (D-IL) was among those quick to condemn the statement, posting on social media, > "Aaaaaand there it is. Privatizing Social Security has been their plan all along. Lying thieves. All of them." Her tweet reflected the widespread Democratic reaction to Bessent's comments.
Bessent elaborated that if these individual accounts grow significantly, providing hundreds of thousands of dollars for retirement, it would be a "game changer," implying a reduced reliance on traditional Social Security benefits. The "Trump Accounts" are designed as tax-deferred investment vehicles for children, with potential initial deposits from the Treasury, aimed at fostering financial literacy and wealth building.
Democrats swiftly seized on Bessent's remarks, framing them as an admission of a long-held Republican ambition to privatize Social Security. Senate Minority Leader Chuck Schumer stated that Bessent "said the quiet part out loud," while the Democratic National Committee (DNC) accused the administration of "scheming to privatize Social Security." This comes despite President Donald Trump's repeated assurances that he would not "touch" the program.
A Treasury Department spokesperson later clarified that "Trump Accounts are an additive government program that work in conjunction with Social Security to broaden and increase the savings and wealth of Americans," emphasizing that Social Security remains a critical safety net. However, the political fallout continues, echoing past contentious debates over Social Security reform and privatization efforts, notably during the George W. Bush administration, which faced significant public and political opposition.