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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 Trump's policies face criticism.
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, rising from $85,210 in 2024 to $87,460 in 2025, a $2,250 gain.
Poverty, including child poverty, is also at an all-time low, with the overall poverty rate falling from 10.7% to 10.2%, and child poverty dropping to 13.4%, the lowest rate recorded.
Despite these positive figures, the report highlights areas where more work is needed, particularly in permitting reform and reducing burdensome environmental regulations.
The report also notes that Trump's tariff policies are negatively impacting manufacturing and construction.
Black households saw especially significant gains, with median income rising 4.8%, compared to 2.6% for households overall.
While the report is generally positive, it also includes a supplemental measure of poverty that accounts for taxes, government benefits, and additional expenses, showing a slightly higher poverty rate of 13.1%.
Families saw real improvements in purchasing power in 2025, with income rising 2.6% last year.
However, the gains were not evenly distributed, with families at the top of the income ladder seeing larger increases than those at the bottom.
Programs such as Supplemental Nutrition Assistance (SNAP) helped keep many families out of poverty, as measured by the special yardstick that includes government aid.
The report's findings are a mixed bag for the Trump administration, with significant economic gains but also areas for improvement.
Transocean, the leader in offshore drilling, reported strong second-quarter results, with a net income of $170 million, though adjusted figures were closer to $0.
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, rising from $85,210 in 2024 to $87,460 in 2025, a $2,250 gain.
- Poverty, including child poverty, is also at an all-time low, with the overall poverty rate falling from 10.7% to 10.2%, and child poverty dropping to 13.4%, the lowest rate recorded.
- Despite these positive figures, the report highlights areas where more work is needed, particularly in permitting reform and reducing burdensome environmental regulations.
- The report also notes that Trump's tariff policies are negatively impacting manufacturing and construction.
- Black households saw especially significant gains, with median income rising 4.8%, compared to 2.6% for households overall.
- While the report is generally positive, it also includes a supplemental measure of poverty that accounts for taxes, government benefits, and additional expenses, showing a slightly higher poverty rate of 13.1%.
- Families saw real improvements in purchasing power in 2025, with income rising 2.6% last year.
- However, the gains were not evenly distributed, with families at the top of the income ladder seeing larger increases than those at the bottom.
- Programs such as Supplemental Nutrition Assistance (SNAP) helped keep many families out of poverty, as measured by the special yardstick that includes government aid.
- The report's findings are a mixed bag for the Trump administration, with significant economic gains but also areas for improvement.
- Transocean, the leader in offshore drilling, reported strong second-quarter results, with a net income of $170 million, though adjusted figures were closer to $0.
What's still developing
- The Census Bureau’s annual report on income delivered the kind of numbers any White House would be eager to celebrate.
- 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.
- The average American family made more money last year than in 2024, while the number of people living in poverty fell slightly, according to a new report from the Census Bureau.
- The annual snapshot of last year's family income, poverty and health coverage comes as Americans are currently wrestling with stubborn inflation that's been rekindled by the war with Iran.