Secretary of the Treasury Scott Bessent spoke at the Power of Innovation Summit, highlighting the connection between education reform and economic growth. He began by thanking Janine and Jeff Yass for their leadership, then outlined his views on the importance of education as part of the nation’s economic infrastructure.
Bessent noted that recent data show significant declines in student performance. He referenced figures from the Nation’s Report Card, stating that math scores for 13-year-olds had their largest drop in 50 years, reading scores for 9-year-olds declined sharply, only one in five high school juniors meets college-readiness benchmarks, and chronic absenteeism has nearly doubled nationwide.
He argued that these problems reflect systemic issues rather than failures by students themselves. “But it’s not America’s students who are failing; it’s the system that serves them,” Bessent said.
Bessent criticized what he described as inefficiencies in public education revealed during COVID-19. He said, “COVID laid bare the perverse incentives and inefficiencies of the US public school system. Student wellbeing and performance were sacrificed to the demands of teachers’ unions, which kept America’s kids locked out of the classroom in some states for more than a year. We are still grappling with the economic fallout of this betrayal.”
He warned that if learning losses from the pandemic are not addressed, there could be long-term negative effects on workforce skills and economic output.
According to Bessent, lack of competition is a central problem facing public schools: “Because public schools are largely insulated from market pressure, they have little incentive to innovate or raise their performance.” He proposed introducing more competition into education through policies like school choice.
Bessent highlighted a new federal tax credit designed to promote K-12 scholarships: “Thanks to the President’s signature legislation, taxpayers can now claim a $1,700 federal tax credit for contributions to qualifying Scholarship Granting Organizations. This is the first federal tax credit that directly supports private donations for K-12 education.” The goal is to increase donations and scholarships so families have more educational options.
He also introduced Trump Accounts as an initiative aimed at expanding financial literacy among young Americans. Under this policy, each eligible child born during this administration will receive a $1,000 contribution invested in an index fund by Treasury. Others may contribute up to $5,000 annually per account starting July 4th. These accounts will be locked until recipients turn 18 and can then be used for retirement savings or educational expenses.
Bessent explained: “By giving every US newborn a material stake in the American Dream through public equity-based Trump Accounts, we are providing future students with a hands-on education in financial literacy...”
The Secretary emphasized that Trump Accounts would also help instill capitalist values among youth who may otherwise feel excluded from asset ownership due to debt or housing costs: “President Trump wants every American on every rung of the economic ladder to have a share in the nation’s wealth.”
Bessent concluded by calling on innovators and policymakers to support these reforms: “Our goal is to transform the US education system into an engine of economic dynamism... We are grateful to be your partners in this effort as we work together to Make America Great Again.”
