What the New Administration May Mean for Your Personal Finances

With the Trump Administration back in the White House, many Americans are asking the same question: What does this mean for my finances? The government’s decisions about taxes, healthcare and trade can affect your wallet in real ways. Some policies aim to boost the U.S. economy’s growth, and others may have unintended financial consequences. Understanding these changes to policies and regulations can help you prepare.

Let’s take a closer look at what’s already changed following the election—and how you can be ready for any other changes to come.

Healthcare: Retooling the ACA

One of President Trump’s first actions in office was to roll back key provisions of the Affordable Care Act (ACA). He rescinded Executive Order 14009, which had expanded open enrollment periods for ACA plans, and Executive Order 14070, which aimed to lower ACA premiums. These reversals may make it more difficult for individuals to enroll in coverage and could lead to rising premium costs.

Looking ahead, the administration has also reiterated its goal of lowering prescription drug prices by negotiating directly with pharmaceutical companies. 

Taxes: Extensions of the Tax Cuts and Jobs Act

One of the Trump Administration’s top priorities is to enact legislation that extends key provisions of the Tax Cuts and Jobs Act (TCJA). This act reduced corporate tax rates, offered tax relief for individuals and aimed to stimulate economic growth. Proposals include making individual tax cuts permanent, eliminating taxes on tip income, reducing capital gains taxes and expanding tax relief for small businesses. While these policies may help middle-class earners keep more of their income, they may result in other programs being cut down the line.

Social Security: Eliminating taxes on benefits

Posting on his social media platform, Truth Social, President Trump has proposed eliminating taxes on Social Security benefits for seniors. This initiative—highlighted during his 2024 campaign—aims to provide financial relief to retirees by allowing them to keep more of their monthly benefits. While details of this proposal are still being finalized, it’s a change that could significantly impact the financial plans of seniors and those nearing retirement.

Inflation: Uncertainties over rising costs

Inflation has been a persistent concern in recent years, and the Trump Administration’s economic policies may further influence price stability. New tariffs and changes in government spending may influence everything from grocery prices to housing costs. While we can’t predict exactly how these changes will affect your wallet, smart planning can help you stay ahead.

Student loans: Repayment policies

The Trump Administration is proposing several key student loan reforms, largely aimed at streamlining repayment plans. One proposal includes reducing the number of income-driven repayment plans to one simplified option. Additional plans include capping undergraduate loan payments at 12.5% of your available income and forgiving remaining balances after 15 years. These changes aim to make student loan payments more manageable for borrowers.

Navigate uncertainties with Navy Federal Credit Union

When a new administration takes office, financial changes often follow. From healthcare and taxes to Social Security and student loans, the policies proposed for 2025 could affect your finances in important ways. By understanding what might change and taking steps to prepare, you can protect your financial well-being and find new opportunities to save money, build credit and pursue your goals. Navy Federal financial advisors are here to help—regardless of what comes to pass.