Trump Newborn Accounts Ignite Social Security Debate

Treasury Secretary Scott Bessent stated that the new children's savings accounts from President Trump's 'One Big Beautiful Bill' could act as a 'back door for privatizing Social Security,' prompting controversy. The accounts, which start with a $1,000 government deposit for newborns and permit annual contributions, are meant to encourage long-term savings. Democrats criticized the move as a signal of Republican intent to shift retirement security away from government guarantees. Bessent later clarified that the program is designed to supplement, not replace, Social Security, reaffirming the administration's commitment to guaranteed benefits. The debate has revived political battles over Social Security privatization, an idea previously considered and abandoned by the GOP. The White House has declined to comment, as concerns persist over possible funding shortfalls for Social Security by 2033.