On Wednesday, Treasury Secretary Scott Bessent said that “Trump Accounts” created by the Republican budget bill are a “backdoor for privatizing Social Security,” claiming they could eventually supplement or even replace the earned benefits. He later attempted to backtrack in a post on X, saying that the Administration is dedicated to protecting the program.
The private investment accounts will allow the federal government to provide $1,000 to babies born between 2025 and 2028. Parents would be able to contribute additional funding and would have to invest the money in stock funds.
Privatizing Social Security would put Americans’ guaranteed benefits at risk at a time when seniors are heavily reliant on them to make ends meet. 65 percent of older Americans rely heavily on Social Security, up from 58 percent in 2010. The Administration has already taken multiple steps to weaken the earned benefit system, slashing the Social Security Administration workforce, making it harder for beneficiaries to file claims, and enacting a tax and budget plan that hastens the insolvency date of the Social Security Trust Fund by one year.
“Social Security isn’t a handout. Americans work a lifetime to earn our modest benefits,” said Richard Fiesta, Executive Director of the Alliance, in a statement issued on Wednesday. “We will not let this or any administration cut or privatize Social Security without a fight.”
This was originally published in the August 1, 2025 edition of the Friday Alert. Read the full length version and see other Friday Alert editions here.
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