A significant admission from U.S. Treasury Secretary Scott Bessent has ignited a political firestorm, as he revealed a provision within the Republicans’ “One Big Beautiful Bill Act” (OBBBA) serves as a direct mechanism for privatizing Social Security. This disclosure starkly contradicts President Donald Trump’s repeated assurances that he would safeguard the vital program, exposing a stark divergence between public promises and underlying policy objectives.
Speaking at a policy event, Bessent openly touted the introduction of “Trump accounts,” scheduled to be accessible to all U.S. citizen children starting next July under the recently signed OBBBA. The former hedge fund manager candidly described these accounts as a “backdoor way for privatizing Social Security,” asserting that their growth to hundreds of thousands of dollars for retirement would be a “game-changer,” fundamentally altering the landscape of defined benefit plans.
The Treasury Secretary’s remarks immediately drew sharp condemnation, with Tim Hogan, the Democratic National Committee’s senior adviser for messaging, mobilization, and strategy, quick to respond. Hogan stated unequivocally that Bessent “just said the quiet part out loud,” accusing the administration of actively “scheming to privatize Social Security” and adding that this move follows other actions detrimental to American families and seniors.
Echoing this sentiment, House Ways and Means Committee Ranking Member Richard Neal (D-Mass.) issued a statement emphasizing that Bessent’s admission confirmed the ultimate goal of Republicans: to privatize Social Security. Neal warned that there is no “backdoor” they wouldn’t exploit to fulfill Wall Street’s aspirations, urging Americans to view this as another crucial sign that the program, relied upon by millions, cannot be safely entrusted to the current administration.
Nancy Altman, president of the advocacy group Social Security Works, expressed strong criticism, highlighting the perceived hypocrisy of Trump’s administration regarding Social Security. Altman pointed out that despite campaign promises, actions such as empowering figures like Elon Musk to impact the Social Security Administration (SSA) and the current admission by Bessent, reveal an intent to undermine the program, including making “false claims about fraud” to erode public confidence.
Altman further elaborated on the strategy, suggesting that after intentionally weakening public trust and service, the administration would then propose Wall Street intervention to “save” Social Security. She vehemently rejected this approach, stressing that Social Security is a “guaranteed earned benefit” that individuals cannot outlive, unlike private savings. Altman concluded with a powerful message to Trump and Bessent: “Keep Wall Street’s hands off our Social Security!”
Richard Fiesta, executive director of the Alliance for Retired Americans, confirmed that Bessent “let the cat out of the bag,” affirming that this administration is targeting Social Security. Fiesta noted their alarm, citing previous actions taken to weaken and dismantle the program, including significant tax breaks for the wealthy and corporations under the OBBBA, which experts predict will accelerate the Social Security Trust Fund’s insolvency.
The progressive watchdog Accountable.US labeled Bessent’s comments a “shocking confession,” with executive director Tony Carrk stating that despite public assurances to protect Social Security, the Trump administration’s true intentions were inadvertently revealed. Carrk asserted that the administration continues to jeopardize the financial security of millions of Americans, prioritizing a system rigged to favor large corporations and billionaires.
Further compounding concerns for Social Security recipients, the Trump administration is poised to implement a new policy next month that is expected to significantly increase wait times for essential services. Starting in mid-August, the SSA will reportedly cease allowing seniors to utilize phone services for routine tasks that have been accessible for decades, adding another layer of challenge for those relying on the program.
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