As Donald Trump prepares to be sworn in as the 47th President of the United States, he is poised to enact sweeping changes to federal taxes, spending, and trade policies, the Washington Post reports.
With the support of Republican allies, these initiatives signal a dramatic realignment of the nation’s economic priorities.
From day one, Trump will face immediate fiscal challenges, including a government funding deadline in March and an impending debate over raising the debt ceiling. The new administration is also tasked with addressing the expiration of tax cuts enacted in 2017, described by Treasury Secretary nominee Scott Bessent as “the single most important economic issue of the day.” Failing to renew these cuts, Bessent warned, could lead to an economic crisis.
Trump has outlined an ambitious economic agenda focused on reducing federal spending, extending tax cuts, and implementing broad deregulation. He also plans to establish a new office, the External Revenue Service, to administer proposed universal tariffs aimed at boosting domestic revenue. These measures, Trump argues, will reinvigorate American industries and create jobs, while placing the country on a firmer financial footing.
The administration’s emphasis on fiscal discipline, except in defense spending, underscores its commitment to addressing the national debt, which reached $2 trillion last year. According to Russell Vought, Trump’s pick for White House budget director, controlling government spending is essential to securing the country’s financial future.
In preparation for his term, Trump has named key advisors to the National Economic Council and other agencies tasked with addressing critical issues like artificial intelligence, workers’ rights, and housing. Trump’s nominees, including Bessent, Vought, and Scott Turner, who is set to lead the Department of Housing and Urban Development (HUD), have emphasized the need for bold action to streamline government and promote economic growth.
Turner, a former director of the White House Opportunity and Revitalization Council, pledged to tackle the national housing crisis by reducing regulatory burdens and maximizing HUD’s budget. Trump’s broader policies aim to address housing affordability and accessibility, which remain pressing concerns for millions of Americans.
Trump’s policy proposals, including universal tariffs and potential spending cuts to safety-net programs, have drawn criticism from Democrats, who argue they may disproportionately affect low-income Americans. However, proponents contend that these measures are necessary to balance the budget and ensure the sustainability of key programs for future generations.
