Senator Ted Cruz told Fox Business that President Trump’s proposed “Trump Accounts” for newborn Americans represent the most significant potential restructuring of Social Security in generations—shifting the New Deal program toward personal ownership rather than government promises.
The Texas Republican said the accounts, which would be opened for every baby born in America, could fundamentally change how future retirees think about their retirement security. Instead of depending entirely on Social Security checks backed by payroll taxes from current workers, Americans would build individual nest eggs they actually own.
“This is about giving working families control over their own retirement,” Cruz said. “Right now, you pay into Social Security your whole life, but you don’t own anything. The government just promises to pay you later. These accounts would be yours.”
The proposal comes as Social Security faces a 2034 funding cliff, when the trust fund is projected to run dry without congressional action. At that point, incoming payroll taxes would cover only about 80 percent of promised benefits—forcing either benefit cuts, tax increases, or major program changes that both parties have avoided for decades.
Cruz emphasized that Trump Accounts would supplement, not replace, traditional Social Security for current retirees and those near retirement. But for babies born today, the accounts could grow over a lifetime of contributions and compound interest, potentially providing more retirement income than Social Security alone.
The structure would resemble 401(k) accounts or the Thrift Savings Plan available to federal employees. Parents or the government would fund initial deposits, then contributions could continue throughout a person’s working life. The accounts would be portable—following workers from job to job—and inheritable, allowing families to pass wealth to the next generation rather than losing benefits when someone dies.
Critics from the left have historically opposed Social Security privatization, arguing that market downturns could wipe out retirement savings and that the current system provides guaranteed income. But supporters point to decades of stock market growth that have built substantial wealth for Americans with 401(k)s and IRAs.
The proposal faces a long legislative road. Democrats control narrow margins in both chambers and have shown little appetite for Social Security changes beyond raising taxes on high earners. But with the 2034 deadline approaching and younger Americans increasingly skeptical that Social Security will be there for them, Cruz argues the politics may be shifting.
“Every year we wait makes the problem worse,” Cruz said. “These accounts could give the next generation something to count on.”
Key Points
- Trump Accounts would be opened for every newborn American, creating personal retirement nest eggs separate from traditional Social Security
- Accounts would be owned by individuals, portable between jobs, and inheritable—unlike current Social Security benefits that disappear at death
- Proposal comes as Social Security trust fund faces 2034 depletion, threatening 20 percent benefit cuts without congressional action
https://www.foxbusiness.com/politics/ted-cruz-says-trump-accounts-social-security-personal-accounts-could-reshape-retirement – May 09, 2026
