Latino man and woman struggle to pay their monthly bills. They are calculating expenses versus budget income and are upset. Many invoices, laptop on living room coffee table. Children in kitchen background. Frustration among middle-class people. Imagery for home finances, recession
Affordability
A union organizer with a megaphone
Unions
'No tax on...'
Black women

The Trump administration’s economic policies will exacerbate affordability problems by raising inequality and slowing income growth for typical families, according to a new Economic Policy Institute report. This will hold true even if it does not lead to recession (though its policy choices do raise the risk of recession) or spiking inflation in the near term.

The root of the affordability crunch is always and everywhere poor economic choices, including prioritizing the interests of the rich and corporations over the concerns of working families.

It doesn’t have to be this way →

Nearly a half a million more workers were represented by a union in 2025 compared with 2024. The number of unionized workers was the highest it has been in 16 years.

The increase demonstrates working people’s desire for greater agency in their workplaces and in shaping policies that affect their lives. In a time of fear, uncertainty, and hardship, the importance and benefits of unionization are especially clear.

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The 2025 Republican budget bill created a new, temporary federal income tax deduction for the premium portion of overtime pay. Trump and his administration have sold this policy as a substantial victory for workers.

It is not.

Overtime exists to discourage employers from overworking their employees. This policy will not benefit most workers and could harm them. There will be less pressure on employers to hire more staff and raise wages. All workers will be harmed by the budget 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 overtime’ →

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%.

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