The president unveiled new policies including a retirement program proposal, lower energy costs tied to data centers, and a task force to combat fraud.
President Donald Trump highlighted his economic agenda in a record-long State of the Union address, declaring the United States is “bigger, richer, and stronger than ever before.”
In his 1-hour 47-minute-long speech, the president introduced multiple guests to spotlight the impacts of his policies, from no-tax-on-tips to Trump Accounts.
The president awarded the Medal of Honor to a Korean War hero and to a helicopter pilot wounded in the mission to capture Venezuelan Leader Nicolás Maduro, and announced that he would award the Medal of Freedom to USA men’s hockey team goalie Connor Hellebuyck.
Here are eight takeaways from the president’s speech.
New Retirement Program Proposal
Trump’s speech focused in part on bettering Americans’ financial situation through new policies on retirement accounts and homeownership.
“Next year, my administration will give these often forgotten American workers—great people, the people that built our country—access to the same type of retirement plan offered to every federal worker,” Trump said.
His policy will provide 401(k) plans for workers whose employers don’t provide them, with up to $1,000 a year in matching contributions. Estimates suggest that about 56 million workers currently have no employer‑sponsored retirement plan.
The president also touted lower housing costs during his administration.
“Mortgage rates are the lowest in four years and falling fast,” he said. The average 30-year fixed-rate mortgage is around 6 percent, down from 7 percent when Trump took office.
Trump also championed his recent executive order clamping down on large institutional investors buying single-family homes. He urged Congress to make his ban permanent because “we want homes for people, not for corporations.”
Trump pointed to guest Rachel Wiggins, a mother of two who’s lost out on 20 bids on homes to large investment firms, “stealing away her American Dream.”
“We want homes for people, not for corporations,” the president said.
Data Center Energy Deal With Big Tech
Trump unveiled a deal with big tech firms that will have them shoulder more of the electricity costs generated as a result of data centers, used for artificial intelligence (AI) development.
“We’re telling the major tech companies that they have the obligation to provide for their own power needs,” he said, describing it as a “rate payer protection pledge.”
“They can build their own power plants as part of their factory, so that no one’s prices will go up and, in many cases, prices of electricity will go down for the community, and very substantially down.”
Since returning to office in January 2025, Trump has promoted the “co-location” of new energy sources and data centers to accelerate the build-out of AI infrastructure with initiatives that fast-track permits, reduce regulatory hurdles, and make federal land available for these projects.
The president said this “unique strategy never used in this country before … will ensure the company’s ability to get electricity, while, at the same time, lowering prices of electricity for you.”
Medal Highlights
Throughout his address, Trump took the opportunity to bestow Americans with official recognitions, connecting stories of heroism and accomplishment to the first year of his second presidential term.
Trump first announced he would present the Presidential Medal of Freedom to Hellebuyck following Team USA’s Olympic gold medal hockey game on Sunday. The Presidential Medal of Freedom is considered tied with the Congressional Gold Medal as the highest official U.S. award for civilians.
The president next awarded the Legion of Merit to U.S. Coast Guard rescue swimmer Scott Ruskan, who helped rescue 165 people during flash flooding in Texas last summer.
Trump highlighted the Jan. 3 U.S. special operations raid to capture Venezuelan leader Nicolás Maduro. He tied much of its success to Army Chief Warrant Officer 5 Eric Slover, who continued to fly one of the helicopters in the strike force despite being hit by enemy gunfire.
Trump awarded Slover the Medal of Honor, the first time in history that the highest military decoration for valor has been awarded during a State of the Union address.
Moments later, Trump awarded a second Medal of Honor to retired Navy pilot E. Royce Williams for downing four Soviet fighter jets in a 1952 aerial battle during the Korean War.
Democrats Withhold Applause
At one point, Trump called on audience members to “stand up and show your support” if they agreed with the notion that the “first duty of the American government is to protect American citizens, not illegal aliens.”
When many Democrats remained seated, Trump said to them that they “should be ashamed.” At another point in the president’s speech, Rep. Ilhan Omar (D-Minn.) appeared to yell that Trump should be ashamed.
The president also expressed frustration with Democrats’ refusal to stand for Sage Blair, whose relatives had accused Virginia school officials of going behind her family’s back to help Blair transition when she was 14.
He also called out Democrats for not standing when he introduced the mother of Iryna Zarutska, the Ukrainian refugee who was brutally murdered in Charlotte, North Carolina, by a repeat offender who was free on no-cash bail.
Democrats, however, did stand and applaud when Trump said they all voted against his large tax cut and spending bill last year. The party had criticized the legislation, saying it disproportionately benefited the wealthy and funded tax breaks through significant Medicaid cuts.
The president’s remarks came as Democrats challenged Trump on affordability, saying that his administration has seen rising costs for things like health care.
Guests Spotlight Economic Agenda
To showcase his economic achievements, the president gave shoutouts to several Americans who have benefited from policies in the One Big Beautiful Bill Act enacted last year.
Pennsylvania mother of two, Megan Hemhauser, a bartender who homeschools her children, had her tax bill more than cut in half under Trump’s economic policies, he said.
“Megan is here this evening, and she’s happy to tell you that she is so, so much richer because with no tax on tips, no tax on overtime, and her expanded child tax credit … Megan and her husband will take home more than $5,000 extra just for the year,” Trump said.
Parents like Hemhauser can activate their children’s new Trump Accounts, the president said, funded courtesy of the Treasury Department and private individuals such as Michael and Susan Dell. The Dells, who have donated $6.25 billion to fund Trump Accounts for 25 million children, were also guests at the State of the Union address.
Trump Strikes Softer Tariff Tone, Teases Income Tax Replacement
Trump adopted a more measured approach when defending his tariff agenda to rebalance international trade.
The president had previously sharply criticized the Supreme Court for overturning his emergency tariffs. During the address, where four of the justices were in attendance, he struck a softer tone, calling the decision “very unfortunate.”
Despite the high court’s ruling, countries that established trade agreements with the United States will “continue to work along the same successful path that we had negotiated before the Supreme Court’s unfortunate involvement,” Trump said.
Trump invoked Sections 122 and 301 of the Trade Act of 1974, implementing a new global tariff rate of 10 percent. While he said on social media he would raise the rate to 15 percent, the higher number was not yet listed in executive proclamations.
He also teased that tariffs will one day replace the income tax.
“Tariffs paid for by foreign countries will, like in the past, substantially replace the modern-day system of income tax,” Trump said.
Vance to Lead New Fraud Task Force
Among his new policy promises Tuesday night, Trump said he was “officially announcing the war on fraud” and would appoint Vice President JD Vance to lead the effort.
The vice president responded, saying, “I’ll get it done.”
The president said that fraud was rife across multiple states and that a task force was required to eliminate it.
“When it comes to the corruption that is plundering—really, it’s plundering America—there’s been no more stunning example than Minnesota,” Trump said.
He also pointed to California, Massachusetts, and Maine, and said “many other states are even worse.”
Trump’s announcement followed a fraud investigation late last year into welfare programs in multiple states. For Minnesota, the Justice Department said “half or more” of the $18 billion billed throughout 14 Medicaid services in the state since 2018 could be fraudulent.
An official from the office of Minnesota Gov. Tim Walz said in December that the Walz administration had “evidence of tens of millions of dollars in fraud to this point,” but not billions. Walz, a Democrat, accused the Trump administration of using its estimates “without the proof behind it.”
The fraud allegations in Minnesota have so far resulted in 64 individuals convicted out of 98 charged.
Trump Backs Bill Banning Congressional Stock Trading
Trump urged Congress to approve legislation barring lawmakers from trading individual stocks.
In making the case for the Stop Insider Trading Act, Trump pointed to Speaker Emerita Nancy Pelosi (D-Calif.), whose husband’s investment activity has drawn scrutiny and allegations of trading based on insider information.
Efforts to restrict congressional stock trading have circulated on Capitol Hill for years, but lawmakers have yet to reach a final agreement.
One sticking point has been whether the ban should also apply to the president. The White House has pushed back on proposals from Democrats and Josh Hawley (R-Mo.) that would extend the prohibition to the Oval Office.
The House Administration Committee advanced the bill last month. House Speaker Mike Johnson (R-La.) supports the legislation, which would ban members of Congress from trading stocks, although it would allow them to keep existing stocks. It wouldn’t apply to the president.
By Jacob Burg, Andrew Moran, Troy Myers, Ryan Morgan, John Haughey, Jackson Richman
