Secretary of the Treasury Scott Bessent addressed the Power of Innovation Summit, focusing on the role of education reform in promoting economic growth. In his remarks, Bessent emphasized that education is a form of economic infrastructure and stated that the Treasury Department is invested in education policy because student performance predicts future economic outcomes.
Bessent cited data from the Nation’s Report Card, noting significant declines in math and reading scores among American students. He also highlighted increased chronic absenteeism and low college-readiness rates, arguing that systemic issues rather than student shortcomings are to blame.
He criticized what he described as inefficiencies within the public school system, particularly those exposed during the COVID-19 pandemic. Bessent 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. If pandemic learning losses are not reversed, the US economy could lose up to $31 trillion over the course of the 21st century as a result of a less-skilled workforce.”
He advocated for introducing greater competition into K-12 education by expanding school choice through federal tax credits. According to Bessent, new legislation now allows taxpayers to claim a $1,700 federal tax credit for donations to Scholarship Granting Organizations supporting K-12 scholarships. He explained: “Through this forward-thinking reform to the tax code, the Trump administration is providing Americans with strong financial incentives to donate generously to organizations that award primary and secondary education scholarships. More donations means more scholarships for families in need. And more scholarships means more school choice.”
Bessent also introduced Trump Accounts, which aim to promote financial literacy by giving each newborn a $1,000 account invested in an index fund. He outlined: “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 power of compound growth, and the benefits of free markets.” The accounts allow additional annual contributions up to $5,000 and become accessible at age 18.
He further stated: “Trump Accounts will embed financial literacy in America’s youth in a way no book, test, or school curriculum could.” Bessent argued that these policies would help address declining faith in capitalism among young Americans by expanding access to capital ownership.
In closing his remarks at the summit, Bessent called on innovators for support: “Our goal is to transform the US education system into an engine of economic dynamism. But to achieve that goal, we need the perspective, ideas and support of the innovators in this room…We are grateful to be your partners in this effort as we work together to Make America Great Again.”
