How the Trump administration is working to convince the public that the economy is improving

Trump Administration Promotes Tax Legislation and Other Economic Initiatives

As President Donald Trump met with the Cabinet this week, he discussed the One Big Beautiful Bill Act, the major legislation passed during his second term. He described the measure as delivering the largest tax cuts in American history, noting that all Democrats in Congress voted against it. Trump stated that the changes would put more money in Americans’ pockets, with typical families receiving tax refunds of nearly $5,000 this year.

Cabinet members referred to the legislation as the Working Family Tax Cuts during the meeting. The administration has continued to highlight provisions intended to reduce financial burdens on households.

Recent polling has recorded public views on economic conditions. A Politico poll found that 53 percent of Americans described the cost of living as the worst they could remember. Fifty-eight percent said Trump had not done enough to protect the nation against costs associated with the Iran war, and 79 percent said prices for food, medicine, and drugs had increased since Trump took office.

A UnidosUS poll showed that 66 percent of Latino voters said Trump and congressional Republicans were not focused on fixing the economy. Sixty-seven percent of Latino voters disapproved of Trump’s job performance, and one in four Latino voters who supported Trump in 2024 said they would not vote for him again.

Republican strategist Dennis Lennox said the administration risks repeating the approach taken by former President Joe Biden, who faced criticism for downplaying voter concerns about grocery and gas prices ahead of midterm elections. Lennox noted that voters assess the economy based on their own finances, including bills, groceries, paychecks, and bank balances, rather than aggregate data.

White House spokesman Kush Desai stated that Trump was elected because voters believed they had been left behind under Biden. Desai said the administration has focused on economic relief since taking office, citing the addition of discounted drug offerings on TrumpRx.gov, an executive order on home construction costs, and the removal of certain Biden-era ESG regulations on grocery stores.

The administration has promoted several specific policies. One is the Trump Accounts app, which is scheduled to launch on July 4 and will allow parents to manage accounts for their children. Treasury Secretary Scott Bessent described the accounts as the most important benefit for young people since the GI Bill. He said nearly 6 million children have been signed up and that the program will place investment opportunities in the hands of parents and children.

The accounts were included in the One Big Beautiful Bill Act under the original name Money Accounts for Growth and Advancement. They are available to U.S. citizen children under age 18 with a Social Security number. Children born between January 1, 2025, and December 31, 2028, who meet the criteria receive a one-time $1,000 contribution into a tax-deferred, low-cost index fund account that tracks the stock market.

Vice President JD Vance posted on X that the app was designed to be simple and user-friendly so parents would not need to navigate complicated forms. Jill Homan, economy and trade deputy director at the America First Policy Institute, said the accounts would enable more Americans to participate in stock market ownership. Homan also cited trade deals, including the renegotiation of the U.S.-Mexico-Canada Agreement, as measures that encourage companies to expand and hire workers.

The House passed the 21st Century ROAD to Housing Act last week after the Senate approved its version two months earlier. The chambers must reconcile differences before the bill can reach the president. The legislation includes incentives for homebuilding and limits on institutional investor purchases of single-family homes. The two chambers differ on provisions such as a ban on purchases by firms including Blackstone. Congress returns from recess in June to continue work on the bill, and the Senate must also address a second reconciliation measure.

The White House has stated it strongly supports passage and has urged the chambers to resolve differences quickly. Heritage Foundation President Kevin Roberts wrote in a memo that federal regulations should not obstruct new home construction and that Washington should not subsidize state and local regulatory barriers.

The administration has also stated that increased U.S. oil production is reducing prices. At the Cabinet meeting, Trump said the United States is producing more than double the oil output of Russia and Saudi Arabia combined, making the Strait of Hormuz less relevant to supply. Treasury Secretary Bessent said oil prices have already declined substantially and that the country is pumping more oil than ever before.

As of Friday, the national average gasoline price was $4.391 per gallon, down 16 cents from the previous week but higher than a month earlier and more than a dollar above the level from a year ago, according to AAA. Brent crude futures fell from a recent high of $107.21 per barrel to $92.24 as of Friday, though still $30 above the year-ago level.

Trump has proposed that Congress temporarily suspend the federal gas tax, which would reduce the price per gallon by 18 cents. Some Republicans have introduced legislation for the suspension, but it is unclear whether either chamber will vote on the measure.

One Republican close to the White House, speaking on condition of anonymity, said the administration should emphasize stock market performance, economic growth, and wage growth with greater repetition. The individual also said Republicans should state that Democrats have no solutions on gas prices because of past efforts to reduce fossil fuel use.

Trump has criticized media coverage of his administration’s actions on prescription drug prices. He said the TrumpRx.gov site offers record discounts with price differences of 400 to 600 percent and that nearly 1,000 low-cost generics were recently added. Last week the administration announced partnerships with Mark Cuban’s Cost Plus Drugs, Amazon Pharmacy, and GoodRx to add generic medications.

The administration has advanced a Most Favored Nation policy that caps what Medicare and Medicaid pay for certain brand-name drugs and has negotiated more than a dozen agreements with pharmaceutical companies. Desai said that as these policies and the Working Families Tax Cuts take effect and as temporary effects from Operation Epic Fury subside, the economy is positioned to repeat the performance of Trump’s first term.