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Income is up, poverty is down, but Trump’s economy still needs improvement
Confirmed
In Short: The Census Bureau's annual report shows income at an all-time high and poverty at an all-time low, but challenges remain.
The Census Bureau's annual report on income in the United States reveals that household income, after adjusting for inflation, is at an all-time high, with real median household income rising from $85,210 in 2024 to $87,460 in 2025, a $2,250 gain.
Poverty rates, including child poverty, have also reached historic lows, with the overall poverty rate falling from 10.7% to 10.2%, and child poverty dropping to 13.4%, the lowest rate recorded.
Black households saw particularly significant gains, with median income rising 4.8%, compared to 2.6% for households overall.
However, the report also highlights areas where progress is needed, particularly in permitting reform and reducing burdensome environmental regulations.
The supplemental measure of poverty, which accounts for taxes, government benefits, and additional expenses, showed somewhat higher levels of poverty at 13.1%.
In 2025, families saw real improvements in their purchasing power, with the average family's income rising 2.6% last year, after adjusting for inflation.
Despite these gains, the average American family is still grappling with stubborn inflation rekindled by the war with Iran.
Programs such as Supplemental Nutrition Assistance (SNAP) helped keep many families out of poverty, as measured by a special yardstick that includes government aid.
President Donald Trump's sinking ratings threaten to drag down Republicans in November’s midterm elections, with a majority of voters saying they believe Trump’s policies have hurt the economy.
At this point in the 2018 election cycle, more voters said Trump’s policies helped the economy (41%) than hurt (26%), but that lead has since evaporated.
Voters don’t appear to be motivated by Trump’s signature tax and spending legislation he championed last year.
Democrats would have to flip multiple states Trump carried by double digits in 2024 to win the Senate.
What this adds
The report highlights the need for further economic reforms and adjustments to address ongoing challenges.
The positive quarterly net income reported by Transocean (RIG) does not reflect the full picture after adjustments for asset impairment losses.
What's confirmed
- The Census Bureau's annual report on income in the United States reveals that household income, after adjusting for inflation, is at an all-time high, with real median household income rising from $85,210 in 2024 to $87,460 in 2025, a $2,250 gain.
- Poverty rates, including child poverty, have also reached historic lows, with the overall poverty rate falling from 10.7% to 10.2%, and child poverty dropping to 13.4%, the lowest rate recorded.
- Black households saw particularly significant gains, with median income rising 4.8%, compared to 2.6% for households overall.
- However, the report also highlights areas where progress is needed, particularly in permitting reform and reducing burdensome environmental regulations.
- The supplemental measure of poverty, which accounts for taxes, government benefits, and additional expenses, showed somewhat higher levels of poverty at 13.1%.
- In 2025, families saw real improvements in their purchasing power, with the average family's income rising 2.6% last year, after adjusting for inflation.
- Despite these gains, the average American family is still grappling with stubborn inflation rekindled by the war with Iran.
- Programs such as Supplemental Nutrition Assistance (SNAP) helped keep many families out of poverty, as measured by a special yardstick that includes government aid.
- President Donald Trump's sinking ratings threaten to drag down Republicans in November’s midterm elections, with a majority of voters saying they believe Trump’s policies have hurt the economy.
- At this point in the 2018 election cycle, more voters said Trump’s policies helped the economy (41%) than hurt (26%), but that lead has since evaporated.
- Voters don’t appear to be motivated by Trump’s signature tax and spending legislation he championed last year.
- Democrats would have to flip multiple states Trump carried by double digits in 2024 to win the Senate.
What's still developing
- But there is also evidence in the report that he is missing the mark on some of his goals, and more work needs to be done, especially on permitting reform and rolling back burdensome environmental regulations.
- Unfortunately, Trump’s tariff policies are pushing in the wrong direction for manufacturing and construction.
- The poverty rate fell from 10.7% to 10.2%, leaving 34.5 million people below the poverty line.
- Transocean (RIG), the absolute leader in offshore drilling, is reporting significant results improvements; its balance sheet is improving substantially, while its Valaris (VAL) deal is about to be approved by Brazil’s authorities.
- During the press conference, the management said the following about Transocean’s performance: "The Transocean team again delivered exceptional operational performance in the second quarter, beating our guidance on both revenue and costs and generating a solid adjusted EBITDA margin of 32%." (President, CEO & Director Keelan Adamson) Here are a few highlights from the second-quarter 2026 results: The most important points of the 2Q26 results, in my view, were the net income figure of $170 million, high total liquidity, and strong positive cash flows.
- Some might argue that the positive quarterly net income was due to the fact that there were no impairment costs.
- There are net income figures and also net income figures adjusted for asset impairment losses recorded in each quarter.
- Still, after the adjustments made, the net income figures were very close to $0, unlike the $170 million net income recorded in 2Q 2026.
- Families at the top of the income ladder saw bigger gains than those at the bottom.
- Longtime double-digit leads over the Democratic Party on who would better handle inflation and the economy have evaporated.
- Late last year, the Trump administration announced it would rescind the Biden-era rule, replacing it with... nothing.