Story perspectives

New “Trump Accounts” Aim to Privatize Social Security

5/10/2026

Summary

Story summary

Bill created “Trump Accounts” for 2025-2028 births, July 4 launch with $1,000 seed and $5,000 contributions.
Senator Ted Cruz presented the program at Milken Institute Global Conference in Los Angeles as a gateway to Social Security privatization, debate.
Treasury Secretary Scott Bessent called accounts a backdoor for privatizing Social Security and said they would supplement system.
Analysts warn of a $230 billion 2026 shortfall, 2034 trust-fund depletion, and 15 percent support for privatization.

History

Historical Context

Social Security, created by the 1935 Roosevelt act, has faced repeated privatization pushes—from Bill Clinton’s 1999 proposal and George W. Bush’s 2005 plan—to today’s “Trump Accounts” championed by Ted Cruz. Demographers warn the trust fund will cover only about 79% of scheduled benefits after 2034, intensifying pressure in Congress for long-term reform.

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Story summary

Bill created “Trump Accounts” for 2025-2028 births, July 4 launch with $1,000 seed and $5,000 contributions.
Senator Ted Cruz presented the program at Milken Institute Global Conference in Los Angeles as a gateway to Social Security privatization, debate.
Treasury Secretary Scott Bessent called accounts a backdoor for privatizing Social Security and said they would supplement system.
Analysts warn of a $230 billion 2026 shortfall, 2034 trust-fund depletion, and 15 percent support for privatization.

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