The financial conditions facing American households in 2026 are very different than those presented by President Trump on Tuesday in his State of the Union speech, according the Consumer Federation of America, or CFA, a consumer advocacy group.
While the Trump Administration has described its economic agenda as the “dawn of a new Golden Age of American greatness,” the data tell a more complicated and concerning story, the CFA said in a statement. It monitors economic conditions and regulatory decisions and their direct impact on consumers.
The CFA said the evidence shows the U.S. economy is in a precarious position, with rising risks and mounting pressure on working families.
After President Trump’s State of the Union Address, with so many misrepresentations, lies, and insults, the staff of the CFA offers these economic facts:
FACT: Food prices rose 3.1 percent in 2025, with an average family of four spending more than $1,000 a month on groceries, up 30 percent from January of 2020.
“The Administration and its allies urge Americans to ‘eat real food,’ but real food is expensive,” said Thomas Gremillion, director of food policy.
Gremillion said the Trump administration should abandon tariffs, take up reforms to reduce harms from ultra-processed foods, and make “real food” more accessible and affordable through requiring front-of-pack labeling, investing in school meals, shielding children from food marketing, and fostering competition.
FACT: Seventy-five percent of homes, for the typical household earning the median income in their area, are now unaffordable.
“The American Dream of homeownership is further out of reach in 2026 than almost any time before, said Sharon Cornelissen, director of housing.
Cornelissen said the country needs ambitious investments in affordable housing construction for renters and homebuyers, as well as targeted down payment assistance.”
FACT: Energy prices increased more than 13 percent from 2022 to 2025 and are expected to outpace inflation for 2026. The average American consumer is seeing increases between 13 to 18 percent for residential electricity relative to 2022 prices.
“The Administration has made terrible energy decisions that will continue to increase the cost of energy for the average American and make us less competitive against foreign adversaries, but it’s not too late to make course corrections,” said Karim D. Marshall, director of climate and energy policy.
Marshall said Trump Administration needs to stop its attacks on renewable energy projects that will make real difference in the budgets of American families.
FACT: Auto insurance premiums rose by 55 percent, between February 2020 to October 2025, far above the rate of inflation, leaving millions of drivers struggling to pay their premiums or driving uninsured because coverage is unaffordable.
“Complying with government mandates to purchase auto insurance is getting more and more difficult, and lower-income Americans are stuck with the untenable choice between driving uninsured and illegally or not driving at all,” said Douglas Heller, director of insurance.
Heller said Americans deserve stronger oversight of the insurance industry and regulators need to do a better job of ensuring that auto insurance is affordable for the hundreds of millions of Americans who need coverage.”
FACT: Over the last year, private credit default rates have nearly doubled in some sectors and crypto markets have fallen by more than $2 trillion in value since October.
“You can’t run the world’s largest economy like a get-rich-quick scheme,” said Corey Frayer, director of investor protection.
Frayer said Americans need well-regulated markets so the system doesn’t collapse if the AI sector is overexposed to private credit or if the traditional banking system is overexposed to crypto.
FACT: Since its launch in 2011, the Consumer Financial Protection Bureau, or CFPB, has returned $19 billion to people who were ripped off by financial companies. But under the leadership of Acting Director Russell Vought, the CFPB has permanently dismissed 22 enforcement actions, and in doing so, it has taken $3.5 billion in restitution away from consumers.
“During the Great Recession, millions of Americans lost their homes, their jobs, and their life savings,” said Adam Rust, director of financial services.
Rust said the CFPB restored fairness to markets and lowered the cost of living for struggling households, but the Trump administration has decimated the CFPB.
FACT: Online scam losses reported to the FBI have increase 33 percent.
“Americans are losing more and more to devastating online scams each year,” said Ben Winters, director of AI and privacy.
Winters said more resources are needed at the FTC and CFPB, but instead, the Trump administration is firing key personnel, giving corporate pardons to key bad actors, and making moves to prioritize Big Tech over people.
FACT: This Administration has spent the past year attacking the independence of the very agency Congress put in place to keep dangerous products out of our homes. While the President speaks about a thriving economy and cutting red tape, he never once mentions the families who will pay the price when dangerous products reach their children because our independent safety watchdog has been left unable to do its job.
“We need to put safety over politics and allow the Consumer Product Safety Commission to do its job,” said Courtney E. Griffin, director of consumer product safety.
Griffin said dismantling the CPSC and gutting its leadership isn’t an economic agenda; it’s a transfer of risk from corporations to unsuspecting families.
FACT: More than half of U.S. adults say they would struggle to cover an unexpected $1,000 expense using savings.
“Household finances remain under pressure for many Americans, with rising costs continuing to challenge affordability and strain monthly budgets,”said Amy Miller, director of America Saves.
Miller said the Trump administration isn’t providing practical, accessible solutions for people that strengthen affordability and help them build financial confidence and long-term stability.
