Washington DC - Treasury Department Secretary Scott Bessent recently explained how President Donald Trump's plan to provide Americans with privatized financial accounts will transform Social Security.

On Wednesday afternoon, Bessent shared an X post praising "Trump Baby Accounts" as "an additive benefit for future generations, which will supplement the sanctity of Social Security's guaranteed payments."

Bessent went on to argue that it is the reason Trump's recently signed "One Big, Beautiful Bill" "gave tax cuts to those receiving these Social Security benefits, as the administration is "working tirelessly to spread prosperity to all Americans."

According to Politico, the baby accounts – also known as Trump or MAGA accounts – allow parents to contribute up to $5,000 each year on behalf of their children, which is invested in portfolios tied to US stock indexes.

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Much like retirement accounts, the funds can be withdrawn penalty-free for particular situations, such as paying for college expenses, first-time homeownership, or after the recipient reaches the age of 59.

The Trump administration will then provide a universal contribution of $1,000 to every baby born between 2025 and 2028.

Bessent also spoke at a Breitbart event in Washington earlier that day, where he further explained the accounts would make "everyone a shareholder," especially young people who are "disillusioned with the system."

"In a way, it is a backdoor for privatizing Social Security," Bessent said. "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, too."

Bessent's remarks come after Trump's "Big, Beautiful Bill" took heavy criticism from both sides of the political aisle on a number of planned cuts to federal programs.

According to Axios, the bill is expected to massively cut Social Security – arguably the nation's most popular federal benefit – over the next seven years.

Following Bessent's comments, Senate Minority Leader Chuck Schumer said the Treasury Secretary "slipped and told the truth: Donald Trump and his government want to privatize Social Security."

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Richard Neal, the top Democrat on the House tax-writing committee, also argued in an X post that Bessent "said the quiet part out loud: Republicans' ultimate goal is to privatize Social Security, and there isn’t a backdoor they won't try to make Wall Street's dream a reality."

In response, a spokesperson for the Treasury Department told Politico the secretary's comments were being taken out of context, and insisted, "Social Security is a critical safety net for Americans and always will be."