What Trump’s Economic Policies Could Mean for Household Budgets in 2026
Written by
Laura Bogart
Edited by
Kristen Mae
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With one year of the second Trump administration officially in the books, many families are taking stock of how its economic policies have affected their budgets. As they follow the headlines, they’re also mindful of how each new proposal could impact their ability to spend and save wisely while planning for the future.
To help you and your loved ones understand what Trump’s economic policies could mean for your household this year, GOBankingRates spoke with experts and reviewed the research. Being knowledgeable means being prepared, so you can make financial and family plans that support your long-term goals.
The Price of Groceries Will Remain High
Americans have noticed the price pinch at grocery stores, with everything from hamburger ingredients to morning coffee costing more. Greg Zakowicz, an e-commerce and retail adviser to Omnisend, expects that trend to continue in 2026 — particularly for beef and produce.
Zakowicz attributes rising beef prices to tariffs, higher operating costs and smaller domestic cattle herds. Another potential factor, he said, is new government food guidelines that align with a growing consumer interest in high-protein diets. As demand for meat rises, prices are likely to follow.
But meat eaters aren’t the only ones feeling the squeeze. Vegetarians are seeing price spikes in produce as well.
“Produce is another area susceptible to tariffs,” he said. “A large amount of produce is imported, and like beef, rising operational expenses such as gasoline continue to drive costs higher. Unpredictable weather can wreak havoc on crops, causing prices to rise even further.”
To offset the higher cost of eating well, Zakowicz recommends trimming unnecessary expenses, such as streaming services or paid memberships you don’t really use.
Insurance Might Become More Expensive
Even if you’re not an avid news watcher, you’re likely aware of the intense political debate over health care costs — particularly around the “Big Beautiful Bill” and the expiration of the Affordable Care Act’s enhanced premium tax credits at the end of 2025. If you purchase insurance through the marketplace, you may have already felt the impact through higher premiums.
Writing for The Fulcrum, Robert Pearl, former CEO of the Permanente Medical Group, warned that the battle over health care costs could significantly affect households.
“As health care economics worsen in 2026, the pressure will intensify. Premium increases will outpace wage growth. Deductibles will remain high,” he wrote. “Tens of millions of Americans face potential Medicaid coverage losses, while 20 million more will see sharply higher exchange premiums.”
While Pearl suggested the White House may pursue some high-visibility measures to rein in health care costs ahead of the midterms, he remained skeptical that those actions would provide meaningful relief for most families.
Consumer Goods Could Get Pricey
When J. Anton Collins, a tax defense attorney at Tax Law Offices Inc. and a former IRS official, looks at the economic horizon for 2026, he sees several ways Trump-era policies could affect the cost of consumer goods.
Proposed tariffs on imported items could lead to higher prices for appliances, electronics, cars, home improvement supplies and packaged foods — all staples for typical households.
If you’re considering purchasing any of these items in 2026, Collins advises committing to being “more cost-conscious in what we buy, when we buy and where we buy.”
He also cautions against taking on high-interest financing. “It’s more important to have flexibility in a budget than to try to forecast precise results,” he said.
Families Will Need To Be Mindful of Tax Implications
As families build their budgets for the new year, Collins advises watching for potential changes to the 2017 tax cuts from Trump’s first term — or new tax cuts — that could affect take-home pay. He’s particularly concerned about changes to withholding, deductions or credits many households rely on.
“Families will also need to keep a close eye on the standard deduction, credits related to children or dependents and retirement contributions,” he said. “A lack of policy certainty can also add inflationary pressure, which can keep interest rates higher for longer.”
The Bottom Line
The first year of the second Trump administration has brought significant changes. Budgeting carefully, using technology wisely and approaching financial decisions with caution can help families navigate uncertainty — advice that holds true no matter who is in office.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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