Here’s What Biden’s Second State of the Union Address Could Mean for Your Finances

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The president addressed a divided Congress Tuesday evening. 

President Biden’s second State of the Union address was a politically charged event featuring audience participation in the form of name calling and finger pointing. However, the annual speech provided the president with an opportunity to highlight the nation’s progress during the last two years and signify to Americans the direction of upcoming policy. A variety of the president’s remarks could have a direct impact on the personal finances of millions of Americans.

A strong economy

Economic outlook plays a major role in the political popularity of a sitting president. Consider that, when faced with a recession in the last two years of their first presidential term, only once has a president won re-election. Put more simply by the 1992 Clinton campaign, “It’s the economy, stupid.”

President Biden hasn’t shied away from touting a stronger-than-anticipated jobs report, and he again reiterated the point on Tuesday. The president referred specifically to the 12 million jobs added to the economy in the last two years along with the 50-year low unemployment rate. In line with his stated mission of growing the middle class, Biden highlighted the more than 800,000 manufacturing jobs created during his tenure.

The president also pointed to other economic indicators as proof of his administration’s success. He referred to falling inflation rates despite global instability and supply chain challenges. Additionally, Biden presented 10 million small business applications in the last two years as “an act of hope.”

The Junk Fees Prevention Act

The Biden administration’s mission against “junk fees” took center stage for a few minutes as the president rallied lawmakers to his cause. Aiming to save Americans “up to hundreds of dollars a month,” the initiative is clearly a high priority on the administration’s agenda.

The president first addressed steps his administration has already taken to protect consumers from hidden fees. A recent Southwest Airlines meltdown led the Secretary of Transportation to demand fee transparency and made it easier for Americans to get a refund in the case of a delayed or canceled flight. Biden also referenced saving Americans over a billion dollars annual in bank overdraft fees, and slashing credit card late fees by 75%.

The next step for the Biden administration is to pass the Junk Fees Prevention Act, which would place new restrictions on surcharges that airlines, cell providers, resorts, ticket brokers, and others can charge consumers. The bill will require bipartisan support in order to land on the president’s desk. Biden made a clear appeal to lawmakers, asking them to “Pass the Junk Fee Prevention Act so companies stop ripping us off.”

Domestic investment

The president also addressed investing in American families in the form of expanded access to education and more flexibility for families. Pointing to the success of universal K-12 education in making America the best-educated nation in the world, Biden appealed to lawmakers to once again increase educational investment. In his address, the president asked lawmakers to expand universal education to include preschool and two years of community college.

Biden put forth a variety of family-oriented proposals in his remarks. He called for an expansion of paid family and medical leave as well as more affordable childcare options. Additionally, Biden rallied for the restoration of the Child Tax Credit, which he claimed to have cut the child poverty rate in half.

Despite proposing a slate of largely left-leaning policies, the undercurrent of President Biden’s address encouraged unity and bipartisanship. While the lasting legacy of the Biden administration is yet to be seen, a variety of proposed initiatives hinted at in the presidential address could have a large impact on Americans and their families for years to come.

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