President Donald Trump had a clear message from the get-go in the first State of the Union address of his second term: America is “bigger, better, richer and stronger.” Yet with American workers facing deep financial concerns, record rates of burnout and ongoing disruption related to AI, global instability and more, most employers are managing a less-than-optimistic workforce in an ongoing environment of uncertainty.
Did Trump’s address highlight a direction for employers operating in this landscape? Here are the top signals for HR:
A tale of two stories on American financial health
Throughout the address, Trump aimed to characterize his first year as having shepherded an economic turnaround for the country, citing lower prices for gas and groceries, improved access to home ownership and easing inflation.
However, the financial picture facing many Americans appears starkly different, according to recent research. A study released earlier this month by MetLife, for instance, found that, compared to 10 years ago, American employees are 12 percentage points less likely to report being in control of their finances. More than 80% of those surveyed cite rising living expenses and healthcare costs for their financial stress.
Meanwhile, research from Allianz Life found that 48% of workers reported financial stress at the start of this year, up five percentage points from the beginning of 2025—and nearly half say their income level is the most significant driver of that uncertainty. Yet, Trump painted a different picture—”Incomes are rising fast,” he said—highlighting an already chaotic compensation landscape.
New investments, from birth to retirement
To support his push for economic optimism, Trump touted several new federal investments, which have employer impacts that are still materializing.
In particular, he called out the launch of “Trump accounts,” a tax-free investment account for children born after 2025. With $6 billion in support from the Dell family, the program provides a seed of $1,000; families can contribute up to $5,000 a year and employers can match contributions up to $2,500 annually. So far, companies like JPMorgan Chase, Bank of America and IBM have announced they will participate in the matching program.
“With modest investments,” Trump said, that amount can reach “$100,000 by the time they turn 18.”
On the other end of the financial spectrum, Trump announced a new federal program launching next year, providing American workers “access to the same retirement plan offered to every federal worker,” including a federal match of up to $1,000 per year. He said the effort is meant to “remedy gross disparities” related to employers not matching employee retirement contributions.
“We want to ensure all Americans profit from the rising stock market,” he said.
‘We ended DEI in America’
Early in the speech, Trump referenced his work to dismantle federal diversity, equity and inclusion programs and pressure corporate communities to retreat from DEI.
“We ended DEI in America,” he said to significant applause.
While many private organizations have dialed back DEI investments in the last year, the efforts don’t always align with employee expectations. Recent Gallup research, for instance, finds that nearly 70% of Americans surveyed place importance on corporate DEI work.
Equity became a perhaps unintentional focus of the lead-up to the State of the Union after Trump’s controversial congratulatory call to the U.S. men’s Olympic gold medal-winning hockey team. In a viral video of the call, in which Trump invited the team to the State of the Union, the president seemingly joked that he had to also invite the women’s team, who also won gold. The women’s team declined the invitation, while a majority of the men’s team attended, to a lengthy standing ovation.
The healthcare cost crisis
Trump acknowledged the pressure of rising healthcare costs, placing the blame on the Affordable Care Act, which he argued has lined the pockets of insurance companies. He pitched his recently announced “Great Healthcare Plan” as a solution, which Dr. Mehmet Oz, chief of Medicare and Medicaid, has called a “broad framework” that prioritizes elements like price transparency and insurance reform. The plan would pivot government subsidies to direct consumer payments.
The effort comes as rising healthcare costs are hitting Americans hard, with recent research finding that nearly 60% are prioritizing saving for healthcare over other financial goals like retirement savings.
Navigating disruption
Trump also waded into the topic of AI, with the announcement of a new “rate payer protection pledge,” which he said instructs tech companies to build their own AI data centers to reduce the financial impact on Americans.
“We’re telling the major tech companies they have an obligation to provide their own power needs, to build their own plants, so no one’s prices will go up,” he said.
Among other hotly watched disruptors are Trump’s global tariffs, which were recently found unconstitutional by the U.S. Supreme Court. With several Supreme Court justices in the audience, Trump called that decision “unfortunate” and doubled down on moving forward with tariffs—without Congressional action. That promise leaves employers waiting for reimbursements or clarity about the financial impact of tariff agreements in limbo.
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