4 Trump Proposals That Could Impact Middle-Class Budgets
Consumer prices were 4.2% higher in May than a year earlier, according to the consumer price index from the U.S. Bureau of Labor Statistics released in June, leaving many middle-class families looking for ways to stretch their budgets. President Donald Trump, meanwhile, has stated his policies can help.
Here are four things Trump said could help middle-class families and what they could mean for your finances.
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Lowering Taxes for Workers
One of Trump's biggest promises has been helping workers keep more of what they earn. The One Big Beautiful Bill Act, which Trump signed into law on July 4, 2025, changed federal tax rules for individuals, families and businesses, according to the IRS.
During his March 2025 joint address to Congress, Trump said, "To get urgently needed relief to Americans hit especially hard by inflation, I'm calling for no tax on tips, no tax on overtime and no tax on Social Security benefits for our great seniors."
How much you save depends on your income and which tax provisions apply to your household.
Bringing Down Everyday Costs
Trump has repeatedly said lowering the cost of groceries and other everyday expenses remains a priority for his administration. In his 2026 State of the Union address, he pointed to falling egg prices as an example.
"Their policies created the high prices. Our policies are rapidly ending them," Trump said. "The price of eggs is down 60%..."
In the same speech, Trump said his policies would lower the cost of gasoline, mortgages, healthcare, prescription drugs and utility bills. If those costs were to come down, many families could have a little more breathing room in their monthly budgets, but as the BLS ilustrated, many consumer prices continue to be higher.
Expanding Domestic Energy Production
Filling up the tank isn't the only place energy prices show up. They also affect utility bills, shipping costs and, eventually, the prices consumers pay for many everyday goods.
During his inaugural address, Trump said, "The inflation crisis was caused by massive overspending and escalating energy prices," before declaring a national energy emergency and saying, "We will drill, baby, drill."
Trump also said, "We will bring prices down, fill our strategic reserves up again right to the top and export American energy all over the world."
Strengthening American Manufacturing
If more companies manufacture products in the United States, that could mean more factory jobs and new business investment in some communities.
During his March 2025 joint address to Congress, Trump said, "If you don't make your product in America, however, under the Trump administration, you will pay a tariff and in some cases a rather large one. Other countries have used tariffs against us for decades, and now it's our turn to start using them against those other countries."
Trump has framed tariffs as a way to bring more production back to the U.S. Some companies may absorb the added costs, while others could pass them on to consumers through higher prices.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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