Cruz Calls ‘Trump Accounts’ Social Security Personal Accounts, Hinting at Privatization

Overview

• At the Milken Institute Global Conference, Sen. Ted Cruz said the newborn “Trump accounts” are essentially Social Security personal accounts.
• Cruz outlined a political path by saying the money went to babies to avoid backlash now, then parents could later be asked to direct part of their payroll taxes into similar personal accounts.
• The program, created last year in the One Big Beautiful Bill Act, gives newborns a $1,000 tax-deferred investment account, allows up to $5,000 in yearly contributions, and opens for use at age 18, with enrollment set to start this summer.
• Retirement advocates warn these private accounts would not guarantee monthly checks like Social Security, exposing savers to market swings and fees and likely hitting lower-income families harder; Treasury Secretary Scott Bessent previously called the approach a potential backdoor to privatization.
• The debate is unfolding as the Congressional Budget Office projects the main Social Security trust fund could run short around 2032, which would trigger automatic benefit cuts of up to about 28% if Congress does nothing.