Black women
Tipping
Black families lose insurance coverage - just one of the many harms to working communities from the loss of ACA tax credits
ACA tax credits
Two multi-ethnic mature workers in their 40s at the back of a truck, loading or unloading a large cardboard box. The men are wearing plaid shirts, reflective vests and jeans.
Worker pay

The 2025 labor market can best be characterized as faltering. The national unemployment rate climbed to its highest point in four years, job growth slowed dramatically, and federal employment fell by a staggering 277,000. Black women bore the brunt of the economic slowdown, suffering far greater employment losses than other groups of women or Black men.

In one of the sharpest one-year declines in the last 25 years, Black women’s employment rate fell by 1.4 percentage points to 55.7%.

What is going on →

The 2025 Republican budget bill created a new federal income tax deduction for tipped income. Trump and his administration have sold this policy as a substantial victory for workers.

It is not.

Most workers, including a large portion of tipped workers, will not benefit. The policy does nothing to address the main problems tipped workers face and could make them worse while reducing pressure on employers to raise wages=. All workers will be harmed by the bill’s massive cuts to health care, energy, and food assistance programs made to finance tax cuts for the ultrawealthy.

Everything you need to know about ‘no tax on tips’ →

Following the January expiration of the Affordable Care Act (ACA) premium tax credits, millions of working families have lost health care coverage. Millions more face much higher premiums.

Black families disproportionately face these impacts since they are more likely to live in states without Medicaid expansion, and they are more likely to have lower and less stable incomes. 

Reinstating and extending the ACA premium tax credits is crucial for equity-enhancing, race-conscious economic and public health policy. Understand the impacts →

Low-wage workers saw their real wages decline in 2025, a sharp reversal from the historically fast real wage growth they had experienced over the previous five years. This reversal was not inevitable—it was caused by policy decisions that weakened the labor market.

The Trump administration chaotically imposed historically high tariffs, conducted cruel mass deportations, and implemented massive layoffs among federal agencies—all of which led to increased economic uncertainty.

Low- and middle-wage workers have suffered from decades of slow and suppressed wage growth. To improve affordability, policymakers can and must raise wages.

Get the 2026 outlook for wages →

EPI in the news

  • Public News Service | February 13, 2026
  • Maui Now | February 13, 2026
  • Gizmodo | February 13, 2026
  • Fast Company | February 13, 2026
  • The Nation | February 13, 2026
  • Reuters | February 13, 2026
  • Al Jazeera | February 13, 2026

More EPI in the news