Five Takeaways From Trump’s State of the Union Address

preCharge News POLITICS — President Donald Trump delivered a nearly two-hour State of the Union address on Tuesday, centering his remarks on an economy he declared was on the brink of a boom.

The speech came as Trump’s approval ratings on the economy have slipped ahead of the 2026 midterm elections, now less than nine months away — contests that could determine whether Republicans maintain control of Congress and Trump’s governing agenda.

1. Trump Proposes Government-Backed 401(k)-Style Plan

Retirement Savings Expansion for Workers Without Employer Matches

Trump called for a new government-backed retirement plan modeled on a 401(k) for workers who do not receive employer-sponsored retirement benefits.

“My administration will give these oft-forgotten American workers … access to the same type of retirement plan offered to every federal worker,” Trump said, pledging a government match of up to $1,000 annually.

The plan would rely on the existing “Saver’s Match” tax credit created under the Secure 2.0 Act of 2022, which is scheduled to begin in 2027 and targets low-income workers.

Administration officials said the proposal would resemble the Thrift Savings Plan used by federal employees, offering index-based investment options and a government match.

2. Renewed Push to Block Institutional Investors From Buying Homes

Housing Affordability Takes Center Stage

Trump urged Congress to codify an executive order banning large institutional investors and private equity firms from purchasing single-family homes.

“We want homes for people, not corporations,” Trump said, arguing that corporate investors have worsened affordability pressures.

The proposal mirrors similar efforts from Democrats, who released competing legislation earlier Tuesday aimed at curbing large-scale investor purchases of housing.

3. Trump Declares Inflation Defeated, Economy ‘Roaring’

Claims Clash With Public Sentiment

Trump claimed inflation was “plummeting” and credited his administration with bringing core inflation to its lowest level in more than five years, contrasting sharply with voter polling that shows ongoing frustration with affordability.

According to the Bureau of Labor Statistics, the Consumer Price Index rose 2.4% year-over-year in January, while core CPI — excluding food and energy — increased 2.5%, its lowest level since April 2021.

Trump also blamed inflation under former President Joe Biden, a frequent political foil during the address.

4. Democrats Push Back — but Avoid Disruption

Tensions Flare, Speech Proceeds

Democrats expressed visible frustration at points but largely refrained from interrupting the address.

Trump sparred briefly with Reps. Ilhan Omar and Rashida Tlaib after challenging lawmakers to stand if they agreed that protecting U.S. citizens should take priority over undocumented immigrants.

Rep. Al Green was ejected from the chamber for the second consecutive year after holding a protest sign during the speech.

5. Trump Keeps Focus Mostly Domestic, Briefly Addresses Iran

Foreign Policy Takes a Back Seat

Trump largely avoided foreign policy but briefly addressed tensions with Iran, where the U.S. has increased military pressure.

“My preference is to solve this problem through diplomacy,” Trump said, while insisting he would never allow Iran to acquire a nuclear weapon.

The domestic-heavy focus appeared strategic, as Democrats have gained early polling momentum by emphasizing affordability and household costs.

Republicans welcomed the approach.

“What I was hoping he’d do was talk about the things moms and dads worry about when they lie down at night,” said Sen. John Kennedy. “And he did.”