President Trump Delivers Progress on Lowering Costs — With Much More Relief on the Way
12/9/2025
Action Summary
- Inflation Reduction: President Trump’s policies have reduced inflation from nearly 5%-9.1% under the previous administration to an average of 2.7%, marking the first overall price decline since 2020.
- Wage Growth: Real wages have increased by nearly 4% (around $700) with projections for further growth to nearly $1,200, reversing the loss in purchasing power experienced under Biden.
- Gas Price Decline: Gas prices have dropped to the lowest average in 1,682 days, with many states reporting prices below $3 per gallon, resulting in lower disposable income spending on fuel.
- Housing Affordability: Mortgage rates have fallen (30-year fixed rate at 6.19%), shelter inflation is at a four-year low, and the national median rent has been declining for four consecutive months.
- Grocery and Staple Cost Reductions: Prices for everyday items such as eggs, butter, ice cream, fresh fruit, cereal, fish, seafood, rice, pasta, and ham are declining, with expectations for more reductions.
- Tax Cuts and Deregulation: The largest tax cuts in U.S. history, including No Tax on Tips, Overtime, and Social Security, are set to raise take-home pay by up to $13,300; deregulatory efforts have saved Americans $180 billion overall.
- Economic Growth and Job Creation: Increased domestic investments and onshoring efforts have resulted in 1.9 million more American-born workers and record levels of employment.
- Deficit Reduction: A combination of spending cuts, interest savings, economic growth, and tariff revenues is expected to reduce the national deficit by trillions, contributing to stronger economic fundamentals.
- Overall Economic Relief: A whole-of-government approach continues to drive lower costs, boost consumer and small business confidence, and deliver relief from policies enacted by the previous administration.
Risks & Considerations
- The emphasis on reducing inflation and cost of living could lead to changes in federal budget allocations, potentially impacting funding for higher education initiatives. Vanderbilt University may need to plan for adjustments in federal grants and subsidies.
- Lower gas and housing prices may influence the cost of attendance for students, potentially affecting enrollment numbers and financial aid distribution as students face lower living expenses.
- Significant tax cuts and deregulatory measures could indirectly affect research funding and university operations. The university may need to assess the impact on sponsored research and its regulatory compliance framework.
- The focus on economic growth and job creation might lead to increased demand for skilled graduates, which could influence the university’s curriculum development and career services.
- The potential changes in consumer sentiment and economic stability could affect philanthropic donations and endowments influencing university finances.
Impacted Programs
- Vanderbilt’s Economics and Business Programs could see increased interest as students look to understand and capitalize on the evolving economic landscape under the new administration.
- The Office of Financial Aid may need to revise aid packages to reflect changes in students’ cost of living and federal tax influences on family incomes.
- Research Departments focused on economic policy and regulatory impacts could benefit from new funding opportunities and collaborative initiatives.
- The Career Center might experience a need to expand its services and partnerships with industries benefiting from economic growth and job creation efforts.
Financial Impact
- The reduction in inflation and cost of living may decrease operational expenses, potentially allowing reallocation of budgets towards strategic initiatives.
- Tax reductions and deregulatory actions could change the university’s financial planning and investment strategies, requiring reassessment of financial forecasts and risk management.
- Increased domestic investment and job growth may lead to more robust alumni giving and enhanced corporate partnerships, positively impacting financial resources.
- Potential changes in federal funding allocation could necessitate adjustments in university funding strategies and diversification of revenue sources.
Relevance Score: 3 (The policies present moderate risks involving compliance and economic adjustments.)
Key Actions
- Vanderbilt University’s Economic and Policy Research Centers should conduct studies on the impact of reduced inflation and housing costs on higher education affordability. By understanding these economic trends, the university can better plan for tuition adjustments and financial aid allocations.
- The Office of Financial Aid should evaluate the implications of tax legislation on students and families to optimize financial support packages. This includes understanding the effects of No Tax on Tips, Overtime, and Social Security on students’ disposable income.
- The Career Center can leverage increased domestic investment and job creation to strengthen partnerships with companies. Expanding internship and job placement opportunities for students will be crucial as the market grows.
- Sustainability and Environmental Programs should assess the impact of deregulation on environmental standards. This involves ensuring that Vanderbilt’s sustainability goals align with or exceed new federal guidelines.
Opportunities
- The reduction in gas and grocery prices provides an opportunity for Vanderbilt’s Transportation and Dining Services to pass on savings to students and staff. This could enhance the university’s affordability and attractiveness.
- Vanderbilt’s Entrepreneurship Center can capitalize on small business optimism and increased consumer sentiment by fostering startup and innovation programs. Encouraging student-led startups will align with current economic trends.
- The focus on job creation and investment presents an opportunity for Vanderbilt’s Office of Corporate Relations to build new alliances with businesses. Engaging with firms that are expanding their U.S. operations can lead to collaborative research and development projects.
Relevance Score: 3
Timeline for Implementation
N/A: No specific timeline or deadline for directives is mentioned in the article.
Relevance Score: 1
Impacted Government Organizations
- N/A: This text is a political and economic progress report without explicit directives or impacts on specific government agencies.
Relevance Score: 1 (No specific government agencies are impacted by the text.)
Responsible Officials
N/A – The text is a press release summarizing past policy achievements and general future intentions without specifying any particular directive or naming any official agency or individual for implementation.
Relevance Score: 1 (The directives are too general and do not explicitly target a specific level of official responsible for implementation.)