President Donald Trump’s plan to give every newborn a $1,000 savings account is more than just a sweet deal for babies—it’s a sneaky move to rewrite how Americans retire.
Trump’s so-called “baby savings accounts,” part of his massive One Big, Beautiful Bill, are being marketed as a helping hand for future generations. Parents can add up to $5,000 a year, with employers and charities allowed to pitch in too. The money can be used when the child turns 18 for school, a house, or other big life expenses. But now, one of Trump’s top officials is letting the real plan slip out.
Treasury Secretary Scott Bessent made the explosive revelation during a Breitbart News event on Wednesday, describing the accounts as more than just a savings plan for kids.
“It is a back door for privatizing Social Security,” Bessent said bluntly. “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, too.”
That one sentence set off alarm bells in Washington.
Democrats were quick to respond. “Today, the Treasury Secretary said the quiet part out loud,” said Rep. Richard Neal of Massachusetts. “Republicans’ ultimate goal is to privatize Social Security, and there isn’t a backdoor they won’t try to make Wall Street’s dream a reality.”
Senate Minority Leader Chuck Schumer was even more direct. “Bessent actually slipped and told the truth: Donald Trump and his government want to privatize Social Security,” he said.
Why does this matter? Privatizing Social Security means your retirement could depend on the stock market instead of a guaranteed government check.
“You could make more or you could lose it all,” said Michael Liner, a Social Security disability lawyer.
Even experts outside politics are raising red flags.
“On one hand, what they are doing is they are making Social Security less solvent and a riskier proposition for people,” said Howard Gleckman from the Urban-Brookings Tax Policy Center. “On the other hand, the treasury secretary seems to be musing out loud about the idea of beginning to privatize the system.”
After the blowback, Bessent tried to walk it back on social media. “Trump Baby Accounts are an additive benefit for future generations… This is not an either-or question,” he posted on X. “Our Administration is committed to protecting Social Security.”
The Treasury Department also scrambled to clean up the mess. A spokesperson said Bessent’s words were “taken out of context” and insisted, “Social Security is a critical safety net for Americans and always will be.”
But the damage may already be done.
This isn’t the first time Republicans have floated the idea. President George W. Bush tried it in the early 2000s and got burned politically. Since then, the GOP has mostly gone silent on privatizing Social Security—until now.
Trump’s “baby savings accounts” might sound harmless. But according to his own Treasury Secretary, they’re something else entirely: a new front in the fight over America’s retirement safety net.
Watch the clip below:
Trump's Treasury Secretary says the Trump Accounts created by the budget bill are a "backdoor for privatizing Social Security" pic.twitter.com/1jpKHUtP85
— FactPost (@factpostnews) July 30, 2025
