For millions of Americans, making ends meet is already a daily challenge. Groceries are expensive, healthcare bills can drain savings, and many families have little money left after paying rent and other necessities.
Now, several policies associated with President Donald Trump’s second administration could make those struggles even harder for certain households.
From changes to Medicaid and food assistance to tariffs and student loan repayment, the financial consequences could reach far beyond Washington.
According to the Congressional Budget Office, the sweeping federal budget law signed in 2025 is projected to reduce economic resources for households near the bottom of the income distribution while increasing resources for middle- and higher-income households.
That doesn’t mean every struggling American will lose benefits or pay more. Some policies are already in effect, while others are scheduled to begin in 2027 or later.
Here are eight major ways these changes could create additional financial pressure for Americans who are already having difficulty getting by.
Tariffs Could Make Everyday Essentials Even More Expensive
When families are already stretching their paychecks, the last thing they need is another reason for everyday purchases to become more expensive. Yet tariffs can create exactly that pressure.
Tariffs are taxes imposed on imported goods. Although foreign companies may be affected by them, American importers generally pay the duties, and businesses can pass some of those costs along to customers.
That means shoppers may face higher prices for certain imported products or goods made using imported materials.
Research from Yale University’s Budget Lab examines how Trump’s tariff policies can affect consumer prices and household purchasing power.
For lower-income families, even modest price increases can be difficult to absorb because necessities already consume a large share of their income.
The situation is complicated by changing tariff rates, court decisions, and exemptions. Not every price increase can be blamed on tariffs.
Still, additional costs on everyday purchases can leave households with even less room to maneuver financially.
New Medicaid Rules Could Put Health Coverage at Risk
For Americans who rely on Medicaid, keeping health insurance could soon involve additional paperwork and eligibility requirements.
Under the 2025 federal budget law, certain adults will generally need to demonstrate qualifying activities to maintain Medicaid coverage beginning January 1, 2027, unless their state implements the requirement earlier.
According to the Centers for Medicare & Medicaid Services, affected individuals generally must satisfy an 80-hour monthly requirement through employment, approved work programs, community service, or a combination of qualifying activities. Half-time enrollment in an educational program can also satisfy the rule.
Supporters argue that these requirements encourage employment, education, and greater self-sufficiency. However, the potential difficulty isn’t limited to finding work.
Someone with irregular shifts, changing employment circumstances, or problems documenting qualifying activities could struggle to demonstrate compliance.
People who qualify for exemptions may also have to navigate administrative requirements.Not every Medicaid recipient is affected, and important exceptions apply.
Nevertheless, for those subject to the changes, losing coverage could mean confronting medical expenses that their household budget cannot easily absorb.
Food Assistance Could Become Harder to Keep
For families struggling to afford groceries, federal food assistance can make an enormous difference.
But changes to the Supplemental Nutrition Assistance Program, commonly known as SNAP, could make receiving benefits more difficult for some adults.
According to the U.S. Department of Agriculture’s implementation guidance, the 2025 legislation expands the population subject to certain work-related time limits.
Among the changes, the upper age for an exception rises to 65, while the exception involving dependent children is narrowed to adults responsible for children under 14.
Separate exceptions previously available to certain veterans, people experiencing homelessness, and former foster youth have also been removed.
The changes do not mean everyone in those groups automatically loses benefits. Other exemptions and individual circumstances still matter.
However, more people could face time limits unless they satisfy qualifying requirements. For someone already choosing between groceries, transportation, and utility bills, losing food assistance could be a devastating financial setback.
The legislation also changes certain calculations involving household utilities and shelter expenses, potentially affecting benefit amounts.
Health Insurance Premiums Have Already Become More Expensive
Some Americans are already feeling the financial impact of changes to health insurance assistance. Enhanced Affordable Care Act premium tax credits expired at the end of 2025 after Congress did not extend them.
These temporary subsidies had helped reduce Marketplace insurance costs for millions of people According to KFF’s May 2026 analysis, average monthly premium payments among Marketplace consumers increased from $113 in 2025 to $178 in 2026.
That’s a 58% increase. Some consumers moved to plans with higher deductibles to limit their monthly payments, while others stopped participating in Marketplace coverage.
The expiration wasn’t a Trump executive order, and ordinary ACA premium tax credits have not disappeared entirely.
However, the resulting affordability problems are part of the healthcare challenges Americans are confronting during his administration.
For a household with little financial breathing room, paying more for insurance can mean cutting back elsewhere.
Some Families Could Face Bigger Tax Bills Because of Health Insurance
Paying monthly health insurance premiums is one expense. Discovering an unexpected tax bill months later is another.
Beginning with the 2026 tax year, the 2025 budget law eliminates previous limits on how much certain Marketplace enrollees must repay if they received excess advance premium tax credits.
Here’s why that matters. Marketplace subsidies are generally calculated using estimated annual household income.
If someone earns more than expected, the tax credits received during the year may exceed the amount they ultimately qualify for.
Previously, repayment limits protected some households from owing the entire excess amount. Under the new rules, those limits are eliminated.
For workers with unpredictable income, seasonal employment, or changing household circumstances, that could mean a larger repayment when filing their 2026 federal tax returns in 2027.
Not everyone who receives Marketplace assistance will owe money. But for those affected, an unexpected repayment could consume savings intended for other essential expenses.
Some Lawfully Present Immigrants Could Lose Insurance Subsidies
Another major healthcare change is scheduled to begin in 2027. The 2025 budget law narrows eligibility for Affordable Care Act premium tax credits among lawfully present immigrants.
According to KFF’s October 2026 analysis, eligibility will be limited to certain immigration categories, including lawful permanent residents and other specifically qualifying groups.
Some lawfully present immigrants, including certain refugees and people granted asylum, will no longer qualify for Marketplace premium tax credits under the new rules.
That doesn’t mean they are automatically prohibited from purchasing health insurance. However, losing financial assistance could make coverage much more expensive.
For households already facing financial instability, the difference between subsidized and unsubsidized premiums can affect whether insurance remains affordable.
The Congressional Budget Office projects that this provision will contribute to an increase in the uninsured population in future years. Those longer-term projections should not be confused with coverage losses already observed in 2026.
Medicaid Funding Changes Could Put Pressure on Hospitals
Healthcare coverage isn’t the only issue. The availability of medical services could also become a concern in some communities.
The 2025 budget law restricts certain taxes that states use to help finance Medicaid. These arrangements, known as provider taxes, help states fund their share of Medicaid spending and obtain federal matching funds.
According to KFF’s August 2026 analysis, the changes could place additional pressure on state budgets.
If states cannot replace the affected revenue, they may face difficult decisions involving provider payments, benefits, or other Medicaid spending.
That could have consequences for hospitals, nursing facilities, and healthcare providers serving large numbers of Medicaid patients.
However, the outcome will vary by state, and the restrictions do not establish that every hospital will close or reduce services.
The law also created a $50 billion Rural Health Transformation Program intended to support rural healthcare systems.
Still, financing uncertainty could be particularly concerning for communities where affordable healthcare options are already limited.
Student Loan Changes Could Trap Some Borrowers in Longer Repayment
For Americans trying to improve their financial circumstances through education, student loans can create years of financial obligations.
New federal repayment rules could add pressure for some borrowers, especially those with limited incomes. The Repayment Assistance Plan, or RAP, became available on July 1, 2026.
According to federal student loan servicer guidance, the plan generally requires a minimum monthly payment of $10, with payment calculations based on income and adjustments for qualifying dependents.
For borrowers outside applicable Public Service Loan Forgiveness provisions, forgiveness can take up to 30 years of qualifying payments.
That is a long time to carry an education-related financial obligation. For someone earning very little, even a small mandatory payment may matter when every dollar has already been budgeted.
However, the new plan also includes features designed to help borrowers, including interest subsidies and principal-reduction benefits for qualifying payments.
Not every existing borrower must immediately switch to RAP, and not everyone will pay more. The financial impact depends on the borrower’s loans, income, family circumstances, and available repayment options.
