21 Ways Trump’s Agenda Could Actually Hurt Many Americans That Are Already Struggling

Donald Trump’s presidency could bring sweeping policy changes that might have far-reaching consequences for many Americans. Among those most impacted would likely be low-income individuals and families, who often rely on government programs and protections to meet their basic needs.

As the economic landscape potentially shifts, it is crucial to understand how these policies might affect vulnerable groups and to recognize the potential challenges they could face. The numbers highlight the importance of safety nets in combating poverty.

A report by the U.S. Census Bureau revealed that government assistance has lifted approximately 45.4 million people out of poverty in 2021. This demonstrates the crucial role of programs like Medicaid, housing vouchers, and food assistance in helping families make ends meet.

Many of Trump’s policies were geared toward cutting government spending, restructuring taxes, and deregulating industries. While these measures aimed to spur economic growth, they might come at a cost for those in lower-income brackets.

This discussion outlines 21 specific ways in which these changes could create financial burdens for the poor. Each example shows how these policies might affect access to essential services and create new challenges for struggling families. 

It is important to point out that this is speculative based on what has been claimed, especially by Trump himself.

Tax Cuts Favoring the Wealthy

The Tax Cuts and Jobs Act (TCJA) of 2017 marked a cornerstone of Trump’s economic agenda. While it was projected to reduce taxes across the board, its benefits were expected to overwhelmingly favor corporations and high-income earners.

The Center on Budget and Policy Priorities revealed that nearly half of the tax reductions could flow to the top 1% of earners. Many low-income households might see minimal relief, and some could experience an increased tax burden due to reduced deductions, such as those for state and local taxes.

This approach might deepen economic divides, leaving those already struggling with few tangible benefits while the wealthiest stand to enjoy significant financial gains.

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Elimination of Taxes on Tips

Trump’s proposal to remove federal income taxes on tips aims to provide relief for service industry workers. The Tax Policy Center analyzed this measure and found that only a small percentage of workers might see meaningful benefits.

On the other hand, payroll tax contributions used to fund programs like Social Security and Medicare could be reduced, potentially undermining long-term retirement and healthcare security.

This measure, while well-intentioned, risks weakening vital safety nets that workers might rely on during retirement or periods of medical need.

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Increased Import Tariffs

Rising tariffs on imports became a hallmark of Trump’s trade strategy, designed to bolster domestic industries. These tariffs, ranging between 10% and 20% on various goods, are likely to lead to higher prices as companies might pass costs onto consumers.

A study by the Federal Reserve Bank confirmed that low-income households, which spend a larger portion of their earnings on necessities like food and clothing, could bear the brunt of these increases.

As essentials grow more expensive, the financial strain could deepen for those already grappling with tight budgets.

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Cuts to Medicaid and Healthcare Programs

Proposed cuts to Medicaid could jeopardize healthcare access for millions of low-income Americans. This program covers essential services such as preventive care, hospital visits, and long-term treatment for individuals who cannot afford private insurance.

The Kaiser Family Foundation noted that reductions in funding would likely force states to either cut coverage or impose higher costs on participants.

Many families, particularly those with children or elderly members, could risk losing critical healthcare services, increasing their vulnerability to financial and medical hardships.

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Changes to SNAP Benefits

The Supplemental Nutrition Assistance Program (SNAP) has long been a lifeline for food-insecure households. Trump’s administration proposed stricter work requirements, which the organization Feeding America warned could disqualify many individuals in need.

Hunger remains a persistent issue, with over 47 million Americans, including one in five children, facing food insecurity. Cutting access to SNAP could intensify this crisis, leaving families at greater risk of malnutrition and further diminishing their quality of life.

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Dismantling of Affordable Housing Initiatives

Access to affordable housing might become increasingly precarious as public housing funding and housing voucher programs face significant reductions. According to the National Low Income Housing Coalition, the U.S. has a shortage of 7.3 million affordable rental homes for extremely low-income families.

Cuts to these initiatives could exacerbate housing instability, increasing homelessness and leaving countless families without secure living conditions. These changes might hit already-vulnerable communities the hardest, amplifying the challenges of finding and maintaining stable housing.

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Reduction in Child Tax Credits 

The Child Tax Credit (CTC) has been a critical tool in reducing child poverty, offering families financial assistance for childcare and essential expenses. The Center on Budget and Policy Priorities emphasized that expanding the CTC would lift a total of 9.9 million children above or closer to the poverty line.

This expansion not only helps families cover their basic needs but also highlights the critical role of government support in improving children’s well-being. Proposals to reduce or eliminate this credit would likely reverse these gains, forcing families to stretch their limited budgets even further.

Without this support, many parents could face increasing difficulties in meeting their children’s basic needs.

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Changes to Social Security Benefits 

Proposals targeting Social Security benefits, such as raising the retirement age and adjusting cost-of-living increases, pose a significant threat to low-income seniors.

The Social Security Administration reports that about half of the U.S. population aged 65 or older lives in households that receive at least 50% of their family income from Social Security benefits, and approximately 25% of aged households rely on these benefits for at least 90% of their family income.

Altering these programs could push many elderly individuals deeper into poverty, limiting their ability to cover essential expenses such as food, housing, and healthcare during retirement.

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Cuts to Education Funding 

Cuts to education programs, particularly those like Pell Grants, could limit opportunities for students from low-income backgrounds. These grants provide essential financial aid for pursuing higher education and vocational training.

Without them, many students might face increasing barriers, including tuition costs and financial pressures that could force some to abandon their studies.

According to the National Association of Student Financial Aid Administrators, financial barriers are the biggest reason why many low-income students do not pursue higher education or drop out before completing their degrees.

Such reductions could hinder students’ ability to obtain the degrees or skills necessary for economic mobility, perpetuating cycles of poverty.

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Work Requirements for Welfare Programs

Stricter work requirements for welfare programs like Temporary Assistance for Needy Families (TANF) could limit access to essential support for many vulnerable individuals.

These rules would disproportionately affect people unable to work due to caregiving responsibilities, disabilities, or other barriers. Research published in the American Economic Journal found that implementing such requirements might cause program participation to drop by 53%.

These changes could leave countless families without the resources they rely on to cover basic needs, exacerbating economic instability for those already struggling to stay afloat.

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Increased Costs Due to Deregulation

Efforts to reduce regulations in sectors like healthcare and consumer safety might lead to rising costs and reduced protections for low-income families. For example, a study revealed that deregulation in nonprofit hospitals could cause a 10.5% rise in inpatient healthcare expenses.

With higher costs for essential services, families already managing tight budgets could face additional financial pressures. In some cases, deregulation might lower safety standards, making affordable options less reliable and accessible.

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Reduction in Disability Benefits

Proposals to cut programs such as Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) could have severe implications for individuals with disabilities.

These benefits often represent their primary source of income, covering basic expenses like housing and food. The National Council on Disability reported that scaling back these programs might push many disabled individuals into poverty, further entrenching the financial and social challenges they face.

The proposed cuts could jeopardize the independence and security of one of the nation’s most vulnerable groups.

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Impact on Labor Rights and Protections

Proposals weakening labor rights and restricting union activities would likely pose significant challenges for low-income workers. Without the collective bargaining power of unions, wages and working conditions for many employees might deteriorate.

The Economic Policy Institute highlighted that unionized workers earn higher wages and receive better benefits compared to their non-unionized peers. Restricting these rights could leave workers with fewer options to negotiate for fair pay, exacerbating income inequality and workplace insecurity.

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End of Student Loan Relief Programs

Eliminating student loan relief initiatives could create financial roadblocks for recent graduates, especially those with limited incomes. Many low-income borrowers rely on these programs to manage debt while pursuing better economic opportunities.

A Federal Reserve study found that student debt hinders mobility, as borrowers struggle to save, buy homes, or invest in their futures. Without loan forgiveness options, graduates from low-income families might face mounting challenges in breaking the cycle of poverty.

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Increased Interest Rates on Credit Cards

Rising interest rates on credit cards due to deregulation or shifts in lending practices could significantly impact individuals relying on credit for emergencies or everyday expenses.

The Consumer Financial Protection Bureau noted that lower-income households are more likely to carry high-interest credit card debt. These higher rates might trap many borrowers in cycles of repayment that consume much of their limited incomes.

This dynamic could make financial recovery and stability increasingly difficult for struggling families.

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Cuts to Energy Assistance Programs

Programs like the Low-Income Home Energy Assistance Program (LIHEAP) provide critical help to families facing high utility costs during extreme weather.

Budget reductions might threaten this vital aid, leaving families with difficult choices between paying energy bills or covering food, medical expenses, and other essentials.

The National Energy Assistance Directors’ Association found that reduced funding could lead to increased financial strain during periods of extreme heat or cold, putting both health and stability at risk for vulnerable households.

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Cuts Through Government Efficiency Measures

Plans to streamline government operations through measures like the Department of Government Efficiency (DOGE) could result in layoffs and reduced services for low-income communities.

Led by figures like Elon Musk and Vivek Ramaswamy, the department emphasized trimming budgets over maintaining adequate support systems.

Critics argued these cuts would disproportionately affect vulnerable populations who rely on public programs, as reduced staffing and resources might create gaps in essential services.

Barriers to Accessing Welfare Programs

Additional bureaucratic hurdles could make it harder for eligible individuals to receive welfare benefits during critical times. Stricter identification requirements and administrative delays might exclude marginalized groups, including those experiencing homelessness or language barriers.

These changes could compound existing inequalities, leaving many without access to the help they need during periods of financial hardship. Such measures might deepen the challenges facing people already on the margins of society.

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Threats to the Affordable Care Act

Attempts to repeal or undermine the Affordable Care Act (ACA) could create significant risks for low-income families who gained healthcare access through expanded Medicaid provisions.

The American Hospital Association projected that repealing the ACA might increase the number of uninsured Americans by 22 million by 2026, raising the total from a projected 28 million under the ACA to 50 million with the repeal.

Without affordable healthcare options, families could face higher medical expenses, limited access to preventive care, and the constant threat of financial ruin due to unexpected health emergencies.

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Mass Deportation Policies

Tougher immigration policies, including threats of mass deportation, could have ripple effects on low-income communities. Undocumented individuals often play critical roles in industries like agriculture and food services, and their removal might disrupt local economies.

The Center for American Progress reported that deportations could cause labor shortages and increase instability within affected households. Fear of deportation also might deter immigrants from seeking healthcare or social services, further straining already fragile support systems.

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Long-Term Economic Inequality

Trump’s policies might significantly widen the gap between the nation’s wealthiest and poorest citizens. Research from The Hill found that income inequality grew faster under Trump than during any previous administration.

Tax policies that prioritize corporations and high earners could compound this disparity, while cuts to public services might reduce opportunities for those in lower-income brackets.

This growing inequality could undermine access to housing, education, and healthcare, perpetuating cycles of poverty for millions and leaving lasting challenges for the country to address.

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The Impact on Low-Income Americans

Trump’s agenda presents serious challenges for low-income individuals and families. Proposed policies threaten essential services and support systems, increasing the risk of economic hardship for those already struggling to make ends meet.

Cuts to essential programs, rising costs for basic needs, and barriers to critical services might leave vulnerable communities in precarious situations. As healthcare, housing, education, and food become harder to afford, millions could face greater uncertainty about their future.

These changes might deepen existing challenges, making it increasingly difficult for struggling families to achieve stability and financial security in their daily lives.

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AI was used for light editing, formatting, and readability. But a human (me!) wrote and edited this.