How Recent Federal Policies Are Impacting New York's Economy

New Yorkers are losing thousands of dollars they don't have thanks to policies that have been put in place. The current federal administration has issued new rules that cost working New Yorkers a lot of money. And because the policies affect a variety of people, only the ultra-wealthy are safe.

No legitimate economic forecast predicts a good economy under the new ruler. The jobs report that recently came out was so bad that an employee got fired (rather than the politicians who put us in this mess). Companies have been laying off workers and cutting budgets. Inflation is up to 2.7 percent. The economy is a mess, and it's only going to get worse. The funny thing is, many people warned that promises of a booming economy on day one were all lies.

College Graduates See Paychecks Slashed By New Administration

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The current regime is not prioritizing education. The politicians in power seem to want America to become a manual labor nation again, rather than moving forward in sectors that require a college education. Presidents like Barack Obama and Joe Biden promoted higher education and put policies in place to make it a worthwhile choice for people. Now, not so much. As a matter of fact, a new policy is making it hard for college graduates who took out loans.

With Republicans' 'Big Beautiful Bill' signed, New Yorkers with outstanding federal student loans only have two options for repayment plans. Options such as SAVE, Pay As You Earn, and Income-Contingent Repayment have been eliminated by the administration, forcing borrowers to choose between two plans - the standard plan or the Repayment Assistance Plan, which requires 30 years of payments before the loan becomes eligible for forgiveness.

As of August 1, 2025, borrowers must pay interest on their loans again. The change affects 8 million borrowers, who had been granted an interest-free forbearance period on their loans under the Biden administration's Saving on a Valuable Education (SAVE) Plan. Borrowers will now be forced to pay up regardless of their income. It's a sad time for our teachers and true public servants who don't make a lot of money, but are working for the greater good.

Trump's Tariffs Will Cost New York Families $2,400 This Year

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While billionaires enjoy their new tax breaks, New York families and businesses will suffer thanks to tariffs, which will drive the prices of imported goods up. It amazes me how some New Yorkers still believe the lie that foreign governments pay for tariffs. They do not. We do.

According to the Yale Budget Lab,

"The new tariff rates President Trump announced late Thursday are the highest in nearly a century and will cost the average family about $2,400 this year."

Per the Budget Lab, the average tariff is 18.3 percent, which is the highest since 1934. That's not a great sign since the Great Depression was from 1929 to 1939. These tariffs are raising prices on consumer and other goods, costing New York families $2,400 in 2025. I'm still waiting for any indication that we are headed towards greatness, because as of now, our economy is crumbling.

New Yorkers’ Social Security Checks Will Shrink This Month

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As if the hit to working New Yorkers wasn't bad enough, some Social Security recipients will have much less money coming in thanks to the administration's policies. During President Biden's term, in March of 2024, the Social Security Administration stopped collecting 100 percent of a person's benefits to repay any overpayment they may have received. The Biden administration, realizing that Social Security income is the only source of funds many people have, decided to claw back 10 percent towards repayment.

The current administration instructed the SSA to resume seizing 50 percent of a person's benefits in order to recoup any overpayment. According to The Motley Fool, the first notices were sent out on April 25. New Yorkers who received these notices were given 90 days to appeal. Since the grace period is over, any beneficiaries in New York will begin to see their benefits seized to repay the overpayment they received.

If the current people in charge delivered on their many promises of a booming economy, I doubt these financial challenges would be as big of a deal. However, they are doing a bad job at managing the economy and forcing working and middle-class families to pay the price.