Treasury Secretary Scott Bessent said Wednesday that the "Trump Accounts" proposal in the One Big Beautiful Bill Act that President Donald Trump signed into law on July 4 could be a "back door" to privatizing Social Security.
The initiative allows the federal government to contribute $1,000 for every newborn American with a valid Social Security number from 2025 to 2028 and allows up to $5,000 in annual private contributions until the child turns 18.
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At a policy event in Washington sponsored by Breitbart News, Bessent said the long-term potential of the accounts could reshape federal entitlement programs.
"In a way, it is a back door for privatizing Social Security," he said. "If these accounts grow and you have hundreds of thousands of dollars for your retirement — then that's a game-changer.
"People who are part of the system do not want to bring down the system."
Bessent added the accounts are meant to make more Americans part of that system by encouraging saving, investing, and financial literacy.
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"We are increasing financial literacy," he said. "If you get a pet, you understand everything about your pet. So, if you had these accounts — why are you investing in this way? How are you doing it? How can you understand the power of compound interest?"
Bessent said the Treasury Department will work to ensure schools and communities are educating account holders about long-term saving, investment strategy, and compound growth.
"We want you to understand it," he said. "We want you to learn about it."
Last week, Charter Communications, one of the nation's largest broadband providers, announced it would match the federal government's $1,000 Trump Account contribution for employees' children, according to Breitbart. It would effectively double the starting investment for thousands of working families.
The company also publicly thanked Sen. Bernie Moreno, R-Ohio, and Trump for championing the policy, calling it a tool to "unleash the next generation of American success."
With nearly 20% of Charter's U.S. workforce participating in its employee stock purchase plan and plans to allow self-progression bonuses to be directed into Trump Accounts, the program is being hailed as a breakthrough in corporate-backed financial empowerment, according to Breitbart.
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Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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