Sen. Ron Wyden Warns Of Backdoor Social Security Privatization: 'It's Clear Trump Was Lying All Along'

As debate over the future of Social Security heats up once again, Sen. Ron Wyden (D-OR) is sounding the alarm over what many see as a renewed effort to privatize the program — this time, through a provision in the recently passed One Big Beautiful Bill Act.The controversy began last week after Treasury Secretary Scott Bessent referred to the Trump administration's new so-called Trump Accounts — a new savings program for children — as a "back door for privatizing Social Security."Don't Miss: The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — and you can too at just $2.90/share. Accredited Investors: Grab Pre-IPO Shares of the AI Company Powering Hasbro, Sephora & MGM—Secure $0.63 Shares Before 8/14 Today's Best Finance DealsA Return to an Old FightBessent's remarks have reopened a long-standing and politically sensitive issue. Proposals to privatize Social Security — which would shift the system from a government-run program to one based on personal savings accounts — have surfaced in the past, most notably under President George W. Bush. But those ideas have largely been set aside after public pushback.Millions of Americans rely on Social Security as a guaranteed source of income in retirement. Under privatization, individuals would be responsible for managing their own retirement savings, potentially exposing them to market risks and uncertainty.Trump Accounts Draw ScrutinyThe program at the center of the latest debate is the Trump Account, a new savings vehicle created under the One Big Beautiful Bill Act. The account is designed to be opened for any baby born in the U.S., with a potential $1,000 initial deposit from the Treasury. Like an IRA, it allows for post-tax contributions — up to $5,000 a year — and could grow over time."In a way, it is a back door for privatizing Social Security," Bessent said, speaking at a Breitbart News forum, about the Trump Accounts. This has sparked widespread concern that they are intended as a long-term replacement — not a supplement — to Social Security.Trending: ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.Later that day, Bessent clarified his comments, saying the administration was committed to protecting Social Security. "This is not an either-or question," he wrote in a post on X. "Our administration is committed to protecting Social Security and to making sure seniors have more money."Wyden, Democrats React SwiftlyDespite the clarification, Wyden and other top Democrats were quick to push back. "It's clear Trump was lying all along about protecting Social Security," Wyden said in a statement, accusing the president of paving the way for Wall Street interests to profit at the expense of retirees.Senate Minority Leader Chuck Schumer (D-NY) called Bessent's remarks "a stunning admission," saying they revealed the administration's true intentions.The Democratic National Committee echoed that view. Spokesperson Tim Hogan accused the Trump administration of scheming to dismantle the program through what he called a "backdoor scam."Social Security's Future Remains UncertainThe backdrop to this renewed debate is Social Security's long-term financial outlook. According to the program's trustees, the trust fund that pays benefits will no longer be able to cover full payments starting in 2034 unless changes are made.Trump, for his part, has repeatedly promised to protect Social Security. On the 2024 campaign trail, and after winning re-election, he said the program would remain untouched, other than possible efforts to make it more efficient.Still, for critics like Wyden, recent developments suggest a different story. "Calling this a five-alarm fire is an understatement," Wyden said.With millions of Americans counting on Social Security to fund their retirement, the debate over its future — and who's telling the truth about it — is far from over.Image: Shutterstock