By Sohaib Shams
With the U.S. midterm elections days away, President Donald Trump faces voter backlash over the cost of living, even as his administration touts financial gains for some Americans. An October AP-NORC poll shows 83% disapprove of his handling of cost-of-living issues and 74% disapprove of his economic management.
The Good
The "Trump Account" retirement savings program launched in July 2026, offering a specialized IRA for children under 18. Those born between 2025 and 2028 receive a $1,000 government contribution. By October, nearly 70 million children had accounts, according to the White House. Ken Hevert of Fidelity Investments said the accounts give families a new way to jump-start retirement savings.
The U.S. stock market has surged since Trump took office. The Dow Jones rose 18% from January 2025 to October 2026, surpassing 50,000 for the first time in February. The S&P 500 returned 39% from Election Day on November 5, 2025 through September 2026. Retail investors made up a record share of trading in April 2025, and experts attribute the growth to strong corporate earnings despite geopolitical tensions.
The One Big Beautiful Bill Act, effective July 4, 2025, delivered tax cuts that largely benefit the wealthiest taxpayers, according to Tristan Hightower of Bryant University. Many households are paying less due to expanded child deductions and higher standard deductions. A tax break on tips up to $25,000 saves eligible workers about $1,300 annually, and the removal of overtime taxes through 2028 saves an average of $1,400 per year.
The Bad
Trump's "Liberation Day" tariffs announced April 2, 2025 have raised costs for American households. Yale's Budget Lab estimates the average household will pay $1,100 more. Small businesses that import goods have lost an estimated $426,000 since April 2025, according to the Center for American Progress.
The war with Iran, begun February 28, halted oil shipping through the Strait of Hormuz. Gas prices exceeded $4 a gallon in March for the first time in three years. By May, elevated gas prices had cost Americans an extra $59 billion compared to the previous year. Diesel hit a record $6.53. The average unleaded price under Trump is higher than during the Biden administration, and higher transport costs are being passed to consumers.
The Ugly
Inflation climbed from 2.4% in February to a three-year high of 4.2% in May before easing to 3.7%. The cost-of-living squeeze has forced consumers to cut back: investing less, shopping at discount stores, deferring car maintenance, and skipping meals. Half of U.S. adults have skipped meals to save money. Some 16.5 million households saw their financial health deteriorate from 2025 to 2026, and 40% fear they cannot pay their bills. Only about six in ten households are completely confident they can afford basic essentials.
