Many New Yorkers Will Soon Have Money Taken From Paychecks

Money will be missing from many New York residents' paychecks very soon. It's already bad enough that most of us aren't making enough to make ends meet, but now, many New Yorkers will have a chunk of their checks missing. A lot of people were expecting inflation, which hit highs during President Biden's term, to drop. But it hasn't dropped significantly. According to USA Facts, the current inflation rate in America is,

"About 2.4%, as of March 2025. Inflation refers to the rise in prices of goods and services over time, which reduces the purchasing power of the dollar. The inflation rate is the percentage that describes how quickly these prices are rising. While several government datasets track price changes, the Consumer Price Index (CPI) represents about 90% of the US population."

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The rate did drop from February, when it was 2.8 percent. I think many people were hoping to see the rate drop way more. The inflation rate on eggs is still 60.4 percent, so egg prices have not dropped very much since being a core issue during the 2025 presidential race. The Vanguard Group projects that inflation will be 4 percent for 2025 due to tariffs imposed by Trump and retaliation by other countries.

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In addition to the potential for an increased inflation rate, job cuts, a tanking stock market, and other downturns in the U.S. economy, some New Yorkers will soon have money garnished from their paychecks. Under the Trump regime, the U.S. Department of Education has reignited its collection efforts on student loans. New Yorkers who defaulted on their school debts could face garnishments in 2025. Collections have been paused since the COVID-19 pandemic.

Under Trump's first term, in March of 2020, borrowers were shielded from normal collection activities. The temporary relief officially ended in October of 2024. President Biden decided not to pursue any involuntary collections before the end of his term.

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The Department of Education, under Trump's direction, has decided to reactivate collections. While many people in New York are struggling to pay bills, they will now have to face the music and pay up on their student loans. Approximately 10 million Americans are in default on their student loans. The Department of Education is permitted to garnish up to 15 percent of a borrower's disposable income.

There certainly is a shift in America. The federal government is deprioritizing education. Time will tell if we will be able to compete within the global economy under a regime that shuns education while other countries are putting it at the forefront of their strategies to be leaders in the world.

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