Trump Weighs Federal Retirement Plan Option Ahead Of State Of The Union

The Trump administration is exploring options to create a retirement savings plan for workers who don’t have access to an employer-sponsored account. The move would not require action by Congress, people familiar with the discussions told news website Semafor on Tuesday.

President Donald Trump is considering mentioning the concept in his State of the Union address on Tuesday, sources told the outlet.

The proposal would complement the administration’s broader push to combat cost-of-living increases, which has centered in part on a children’s savings initiative known as Trump Accounts.

One option under consideration is to revive former President Barack Obama’s myRA program, which Trump ended in 2017 after citing high costs.

Obama introduced myRA, described as a “voluntary, low-risk, no-fee federal retirement savings program,” during his 2014 State of the Union address. The program ultimately enrolled about 30,000 participants.

Another option under discussion, Semafor reported, is to pair a new plan with the Saver’s Match, a federal contribution set to take effect in 2027 under the SECURE 2.0 Act.

The provision replaces the Saver’s Credit with a refundable match equal to 50% of up to $2,000 in retirement contributions, with a maximum annual deposit of $1,000 into eligible accounts, even for filers with no tax liability, according to Congress.

Kevin Hassett, director of the White House National Economic Council, has long supported a similar concept. During the Biden administration, Hassett urged lawmakers to advance legislation that would replicate the federal government’s Thrift Savings Plan for private-sector workers who lack employer-sponsored retirement coverage.

Sens. John Hickenlooper (D-Colo.) and Thom Tillis (R-N.C.), along with Reps. Lloyd Smucker (R-Pa.) and Terri Sewell (D-Ala.), reintroduced that proposal last year.

Trump formerly praised Australia’s retirement savings system, known as superannuation, during a December press conference. He told reporters that officials are reviewing “a certain Australian plan that people are liking,” Newsweek reported.