5 Ways Biden Might Affect Your Wallet in His Final Weeks as President
Written by
Dawn Allcot
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Many factors influence the U.S. economy: the U.S. Federal Reserve, tax and tariff policies, foreign policy, wars and natural disasters. While the U.S. President has limited control over these factors, he can still guide policy and spark change.
Higher Minimum Wage for Federal Contractors
Less than 18 months after taking office, Biden issued an executive order to increase the minimum wage for federal contractors to $15 an hour. Under that same ruling, the minimum wage for federal contractors jumped to $17.75 on January 1, 2025.
It’s too late for Biden to pass legislation raising minimum wage across the board in the U.S., but roughly half-a-million federal contractors celebrated 2025 with a little more cash in their first paycheck of the year.
Gas Prices Could Rise
In his last days in office, Biden passed legislation to prevent offshore drilling of oil and natural gas across 625 million acres of oceans across the United States’ East Coast, the Gulf of Mexico, portions of the Pacific coast and in areas of the North Bearing Sea. The White House issued a release stating that “the environmental and economic risks and harms that would result from drilling in these areas outweigh their limited fossil fuel resource potential.”
During his four-year term, Biden has protected more than 670 million acres of land and water, which is more than any other president, according to the White House release.
However, the move could, in theory, increase gas prices as it limits future access to U.S. gas and oil. The National Ocean Industries Association president Erik Milito told AP News, “This move directly undermines American energy consumers and jeopardizes the vast benefits tied to a thriving domestic energy sector.”
Coastal Economies Could Thrive
The upside to the offshore drilling ban, however, is a stronger economy for the 40% of Americans who live — and often make their livings — on these shores.
“With these withdrawals, President Biden is protecting coastal communities, marine ecosystems and local economies — including fishing, recreation and tourism — from oil spills and other impacts of offshore drilling,” stated the White House release.
Additional Aid for Natural Disaster Victims in California
On January 8, 2025, Biden presented California with more than $500 million in disaster relief funds.
“The money specifically is allocated for disaster relief set to eventually go to Californians who were impacted by winter storms that resulted in severe flooding, wind damage and mud slides between December 2022 and January 2024,” according to a newscast from NBC affiliate KGET, shared at MSN.com.
While this money will be distributed by the Department of Housing and Urban Development for rebuilding infrastructure, Biden also took immediate action to support California firefighters. On January 8, 2025, the president approved a Major Disaster declaration for California, giving affected communities immediate access to funds and FEMA support.
FEMA Money To Prevent Future Disasters
Biden recently passed the Bipartisan Infrastructure Law, allocating more than $4.5 billion in critical climate infrastructure and resilience programs through 2026. As a result of this law, FEMA has launched two grant programs worth a total of $1.35 billion for projects that protect people and infrastructure from natural hazards and flood risks.
“The Bipartisan Infrastructure Law has enabled the agency to fund more projects allowing communities across the country to improve their resilience to more frequent and extreme weather events,” FEMA Administrator Deanne Criswell stated in a press release issued by the agency.
Taking a long (and optimistic) view, these protective programs could help reduce the costs of natural disasters and, ultimately, lead to reductions in homeowners’ insurance premiums.
More From GOBankingRates
