Becker’s State of the Union Analysis
Last night, President Donald Trump gave his first State of the Union address of his second term. In it, he declared that his Administration has reversed what he described as years of decline in public safety and national readiness. Overall, the President framed his first year in office as a success both for America’s economy and global stature, citing recent revamps in tax policy, corporate engagement, and foreign policy. The following provides an overview of the President’s address and key issues highlighted.
Economy & Jobs:
The President touted what he characterized as a resurgent economy and said his policies have driven inflation down to its lowest level in five years, reaching 1.7% in the last quarter of 2025. He highlighted lower gas prices, averaging $2.30 per gallon, declining mortgage rates, and renewed growth in homeownership. He emphasized stock market strength, noting 53 market records since the 2024 election, and states that he has secured over $18 trillion in global investment commitments compared to less than $1 trillion under President Biden. He also cited 70,000 new construction jobs, increased oil production exceeding 600 barrels per day, shipments of over 80 million barrels of oil from Venezuela, and record-high natural gas production. He cited that employment is at an all-time high, with more Americans working than ever and the bulk of new job creation occurring in the private sector. He also pointed to lifting more than 2.4 million Americans off food stamps.
One Big Beautiful Bill Act Impacts:
President Trump highlighted last year’s reconciliation bill titled the “One Big Beautiful Bill Act,” citing provisions eliminating taxes on tips and Social Security income and removing taxes on auto loan interest for American-made vehicles. He also featured “Trump Accounts” for children, designed to leverage private investment support, noting that with compounding growth, these accounts could reach $100,000 by the time a child turns 18.
Tariffs:
The President defended his tariff policies, saying they have generated billions in revenue and provided leverage in trade negotiations. Although he acknowledged a Supreme Court ruling that reversed a prior tariff action, he argued that corporations and foreign governments continue to honor deals negotiated in anticipation of tougher measures. He pledged to impose additional tariffs under different legal authorities that would withstand judicial scrutiny and said congressional approval would not be necessary. Ultimately, he asserted that tariff revenue could replace the modern income tax system, benefiting American workers.
Americans’ Affordability Concerns:
Framing affordability as “the issue of the day,” President Trump blamed the last Administration for today’s high living costs. He states that his administration has begun reversing those trends, citing a 67% drop in egg prices and declines in other food costs, including beef. He said Americans would soon see further price reductions reflected in economic data.
Healthcare:
The President criticized the Affordable Care Act, arguing that it increased costs and benefited insurance companies more than patients. He proposed a plan that would redirect payments from insurers directly to individuals, allowing them to purchase their own plans at lower cost. He emphasized price transparency and pledged to end inflated prescription drug prices. Under an Administration-led “Most Favored Nation” policy, he said Americans would pay the lowest drug prices available globally and urged Congress to codify the program. He also referenced price savings available through trumprx.gov.
Energy:
President Trump touted an Administration-led negotiated ratepayer protection plan requiring technology companies to supply their own electricity for data center development, preventing increased costs for local consumers. He said this approach would shield families and benefit cities and towns and reiterated that American energy production, particularly natural gas, is at record highs.
Homeownership:
The President announced an executive order to prevent Wall Street firms from purchasing large numbers of single-family homes, arguing that such practices price out American families. He called on Congress to codify the ban into law.
Retirement:
President Trump pledged to protect Social Security and Medicare, stating that the average retirement account has grown by $30,000 since the start of his administration. Acknowledging that many Americans lack employer-matched retirement plans, he proposed expanding access to retirement accounts modeled on those available to federal workers. He also called for a congressional ban on insider trading by members of Congress.
Immigration:
President Trump alleged widespread fraud within certain immigrant communities and announced a federal “war on fraud” to be led by Vice President JD Vance. He pointed to record border security, claiming zero illegal immigration while maintaining legal immigration pathways, and cited a 56% reduction in fentanyl crossing the border alongside what he called the largest decline in the murder rate in 125 years. He urged Congress to pass legislation banning states from issuing commercial driver’s licenses to undocumented immigrants and reaffirmed his commitment to deporting violent offenders. He called for ending sanctuary cities and passing the SAVE America Act to require voter ID and proof of citizenship, limiting mail-in voting to cases of illness, disability, military service, or travel. He also emphasized expanded national law enforcement and immigration enforcement operations to combat crime and illegal immigration. He urged Congress to pass legislation ensuring that violent, repeat offenders remain incarcerated.
Foreign Affairs/Western Hemisphere:
President Trump stated that his administration has ended eight wars and highlighted a ceasefire in Gaza that he said would secure the return of all hostages. He praised Secretary of State Marco Rubio for diplomatic efforts. He said his administration is working to end the war in Ukraine and described an operation called “Midnight Hammer” targeting Iran’s nuclear program. He condemned the Iranian government’s killing of 32,000 protesters and warned that Iran is developing missiles capable of threatening Europe and the United States. While expressing a preference for diplomacy, he insisted the U.S. would not allow Iran to obtain a nuclear weapon and emphasized American military strength. He touted that NATO allies are now contributing 5% of GDP toward defense, up from 2%. In the Western Hemisphere, he described intensified efforts against drug cartels, designated fentanyl as a weapon of mass destruction, and said record amounts of drugs have been intercepted at sea.
