If a Democrat were in the White House, the headlines from the Census Bureau’s annual report on income in the United States would have been glowing. Household income, after adjusting for inflation, is at an all-time high. Poverty, including child poverty, is falling and is at an all-time low.
This is great news. President Donald Trump deserves credit. But there is also evidence in the report that he is missing the mark on some of his goals, and more work needs to be done, especially on permitting reform and rolling back burdensome environmental regulations.
The Census Bureau’s annual report on income delivered the kind of numbers any White House would be eager to celebrate. It is baffling that Trump is missing his chance to do so, for it is surely possible to acknowledge some areas of concern, such as rising gasoline prices, while at the same time putting the doomsayers in context.
Real median household income rose from $85,210 in 2024 to $87,460 in 2025, a $2,250 gain after inflation. After accounting for taxes and transfers, the gain was even larger: median household income rose $2,300, or 3.1%, to $76,060. Black households did especially well, with median income rising 4.8%, compared with 2.6% for households overall.
The data on poverty were similarly encouraging. The poverty rate fell from 10.7% to 10.2%, leaving 34.5 million people below the poverty line. Child poverty fell to 13.4%, the lowest rate the census has recorded. Hispanic poverty also reached a record low, 13.9%.
But the report also contains signs of an uneven economy. Among full-time, year-round workers, median earnings for people ages 25 to 34 fell 1.6% in 2025, even as older age groups posted gains. The divide by sex was also striking. Median earnings for full-time, year-round male workers did not change significantly, while women’s earnings rose 3.2%.
The report does not tell us why women’s earnings rose while men’s stayed flat. But separate Bureau of Labor Statistics data point to one plausible part of the story. Women made up 78% of workers in healthcare and social assistance in 2025, and healthcare added roughly 405,000 jobs last year. By contrast, women were only 29% of manufacturing workers, 11% of construction workers, and 14% of workers in resource extraction. During 2025, manufacturing payrolls fell by about 68,000, while construction employment was nearly flat.
Trump has made an effort to help those industries, but some of his policies are working in the opposite direction. On the positive side, he has directed agencies to streamline National Environmental Policy Act reviews and speed up the permitting process, while the Environmental Protection Agency has rescinded the greenhouse gas endangerment finding and associated vehicle emissions standards. These are all good steps, but more can be done.
Unfortunately, Trump’s tariff policies are pushing in the wrong direction for manufacturing and construction. Both depend heavily on steel, aluminum, machinery, and other goods that tariffs have made more expensive. Federal Reserve surveys repeatedly find manufacturers and builders reporting higher material costs tied to tariffs, with some raising their own prices or accepting smaller margins. That makes it more expensive to build a factory, expand a plant, or construct a home, precisely the investment needed for these sectors to grow. Reversing these tariffs is one way Trump could boost stagnant male wages.
IMMIGRANTS SHOULD BE SELF-SUFFICIENT
But the window for positive reform is closing. The Iran war has driven energy prices, particularly diesel prices, to near-record highs. Consumers are not happy about higher energy prices eating away at their paychecks.
Trump can point to rising household incomes and falling poverty as evidence of economic progress. But weaker earnings for younger workers and continued softness in manufacturing suggest the gains are uneven. With higher energy costs eating into workers’ paychecks, the administration still faces significant work to broaden prosperity across the economy.