Each week while Congress is in session, our Policy team delivers a key update to highlight a topical benefits, health, or retirement news item from the Hill, such as a newly introduced bill, a summary of a committee hearing, or another hot-button matter.
The Trump Administration has been highlighting a provision of the One Big Beautiful Bill Act that established “Trump Accounts” for children under 18 and created a pilot program to provide U.S. citizen newborns with $1,000 contribution for a few years. From a policy perspective, the pilot program is similar to progressive proposals for “baby bonds” and other childhood savings programs. For more information, review the Groom webinar or chart.
On July 30, Treasury Secretary Scott Bessent stated that Trump Accounts were a “backdoor for privatizing Social Security.” Secretary Bessent’s remarks focused on encouraging participation in the savings system, and he stated that the Administration wanted to make “everyone a shareholder” in economic success because “people who are part of the system do not want to bring down the system.” He continued, “In a way, it is a backdoor for privatizing Social Security. 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.” As created, Trump Accounts do not affect Social Security. Secretary Bessent later took to X to clarify his remarks, saying the accounts are an “additive benefit” that will “supplement” Social Security payments.
