President Trump took the stage for his State of the Union address this week to tout what he called a "roaring economy," claiming his administration has solved the affordability crisis that's been weighing on American households. But the numbers tell a starkly different story. Working families continue to struggle with rising costs for groceries, housing, utilities, and healthcare, even as the president insists he's delivering on his campaign promises to make America affordable again.
Key Takeaways
- Trump blamed Democrats for affordability problems during his State of the Union while claiming his administration has solved the issue
- Inflation under Trump has cost the average family over $1,600 in price hikes on essentials like housing and transportation
- Electricity bills rose more than 6% in 2025, contradicting Trump's campaign promise to cut energy prices by 50%
- Healthcare costs have nearly doubled for some families, with one woman's premiums jumping from $1,600 to $3,200 monthly
Background
Trump's State of the Union address came at a moment when affordability has become one of the defining economic issues for American voters. Polls consistently show that a majority of Americans don't believe the economy is working for them, despite lower unemployment rates and moderating inflation. The president entered the speech facing significant skepticism about whether his policies have actually helped working families put food on the table or pay their bills.
During his campaign, Trump made sweeping promises about bringing down costs across the board. He vowed to cut energy prices in half. He pledged to make housing more affordable. He promised that his tariffs would reduce prices, not increase them. Now, as he enters his second term, he's being forced to defend why those promises haven't materialized.
"The president did acknowledge affordability, but in hindsight that's the Democrats problem," according to analysis of his speech.
Key Details
The Inflation Gap
Trump claimed during his State of the Union that core inflation was running at just 1.7% over the last three months of 2025. The actual numbers show something different. According to the Federal Reserve's preferred inflation measure, core inflation stood at 2.7% in October, 2.8% in November, and 3% in December. That's nearly double what the president claimed.
These inflation figures translate into real pain for real families. The average household has absorbed more than $1,600 in price increases on essentials since Trump took office. Groceries have become noticeably more expensive, with five major food categories posting increases in recent months. Rent continues climbing. And for millions of Americans living paycheck to paycheck, these aren't abstract statistics—they're the difference between affording their next meal or cutting other expenses.
The Tariff Problem
Trump's signature economic policy has been a series of tariffs on imports. He's argued they'll protect American workers and bring manufacturing back home. But families are paying the price at the checkout counter and the hardware store. Tariffs cost the average working family nearly $1,200 last year, according to multiple analyses.
Just last week, the Supreme Court struck down Trump's "Liberation Day" tariffs. But rather than accept the ruling, the president doubled down almost immediately, implementing sweeping new global tariffs that economists warn will drive prices even higher. And here's the catch: families won't see refunds on the money they've already paid, despite the court's decision.
Housing Costs Keep Climbing
During his speech, Trump touted an executive order banning Wall Street from competing with Main Street homebuyers. He claimed mortgage rates are the lowest in four years and that the annual cost of a typical new mortgage is down almost $5,000 since he took office.
But the housing affordability picture is more complicated. Trump himself said he doesn't want to drive housing prices down—he wants to drive them up for people who already own homes. That's a direct contradiction to what frustrated home buyers need. And his tariffs have made the affordability crisis worse, not better. New homes now cost about $17,500 more due to increased prices for lumber and other building materials.
The president's mortgage claim is also overstated. According to the Mortgage Bankers Association, the national median monthly mortgage payment was $2,025 in December. That's roughly $24,300 a year—hardly the savings Trump described.
Electricity Bills Still Rising
Trump promised during his 2024 campaign that he would cut energy prices in half. Instead, electricity bills rose more than 6% in 2025—more than double the rate of inflation. The U.S. Energy Information Administration projects that retail electricity prices will continue climbing this year, with increases of 13% expected from 2022 to 2025.
Economists say his policies could make this worse. The rollback of clean energy tax credits and the expansion of energy-intensive data centers for artificial intelligence are both putting upward pressure on power costs.
Healthcare Costs Skyrocketing
Perhaps the most dramatic affordability crisis is happening in healthcare. Some families have seen their insurance premiums nearly double in recent months. One couple paid about $1,600 a month for insurance in 2025. Now their monthly premium has jumped to $3,200—nearly $39,000 a year for coverage alone.
A single mother of three saw her premiums increase sevenfold. When she got her January notice just before Christmas, she had $74 left in her bank account. These aren't isolated cases. Across the country, families are being forced to choose between healthcare and other necessities.
What This Means
Trump's State of the Union speech highlighted a fundamental gap between what the president claims and what Americans are experiencing in their daily lives. While he points to statistics like unemployment and overall inflation rates, millions of families are struggling to afford the basics.
The affordability crisis has become deeply personal for working Americans. It's not abstract economic data—it's choosing between filling a prescription and paying rent. It's deciding whether to turn on the heat or cut back on groceries. It's the anxiety of watching healthcare premiums double without any warning.
The president's response has been to blame his predecessors and to double down on policies that economists say are making things worse, not better. His tariffs continue to drive up prices. His healthcare policies have failed to control costs. His energy policies haven't delivered on his promises. And his housing policies seem designed to help people who already own homes, not those trying to buy their first one.
Polls show that voters are skeptical. They don't feel like the economy is working for them, even if some headline numbers look better. And that skepticism appears justified when you look at what families are actually paying for food, housing, healthcare, and utilities.
The question now is whether the president will adjust course or continue defending policies that aren't delivering results for working families. Based on his State of the Union speech, it appears he's choosing to defend his record rather than acknowledge the real struggles Americans face every day.
Frequently Asked Questions
Q: How much have prices actually increased under Trump?
A: The average family has absorbed more than $1,600 in price increases on essentials like housing and transportation since Trump took office. Tariffs alone cost the average working family nearly $1,200 in 2025. Electricity bills rose more than 6%, and healthcare premiums have sometimes increased sevenfold for individual families.
Q: What did Trump say about affordability in his State of the Union?
A: Trump claimed his administration has solved the affordability crisis and blamed Democrats for the problem. He cited lower inflation rates and mortgage costs as evidence of success. However, his figures on inflation were overstated compared to actual Federal Reserve data.
Q: Are Trump's tariffs really causing higher prices?
A: Yes. Economists and multiple analyses confirm that tariffs have driven up costs for consumers, particularly on groceries, building materials, and appliances. After the Supreme Court struck down some tariffs, Trump implemented new global tariffs that are expected to push prices even higher.
Frequently Asked Questions
How much have prices actually increased under Trump?
The average family has absorbed more than $1,600 in price increases on essentials like housing and transportation since Trump took office. Tariffs alone cost the average working family nearly $1,200 in 2025. Electricity bills rose more than 6%, and healthcare premiums have sometimes increased sevenfold for individual families.
What did Trump say about affordability in his State of the Union?
Trump claimed his administration has solved the affordability crisis and blamed Democrats for the problem. He cited lower inflation rates and mortgage costs as evidence of success. However, his figures on inflation were significantly overstated compared to actual Federal Reserve data.
Are Trump’s tariffs really causing higher prices?
Yes. Economists and multiple analyses confirm that tariffs have driven up costs for consumers, particularly on groceries, building materials, and appliances. After the Supreme Court struck down some tariffs, Trump implemented new global tariffs that are expected to push prices even higher.
