WASHINGTON (States Newsroom) — As Americans continue to face rising prices ahead of year-end holidays, President Donald Trump blamed inflation and health care costs on his predecessor during a prime-time speech Wednesday in which he also claimed to have fixed the issues.
Trump “inherited a mess” and has turned the United States into the “envy of the entire globe” by imposing an immigration crackdown, tariffs and tax breaks, he said.
“Over the past 11 months, we have brought more positive change to Washington than any administration in American history. There’s never been anything like it, and I think most would agree I was elected in a landslide,” Trump said.
Standing before a backdrop of Christmas decorations, Trump also promised $1,776 checks would arrive for members of the United States military by Christmas.
And he continued to blame Democrats for health care costs that are projected to skyrocket next month when tax credits for Affordable Care Act marketplace plans expire.
Nearly a year into his second term, Trump remains fixated on blaming former President Joe Biden even as his own approval ratings sink, according to numerous recent polls.
A plaque below Biden’s photo in Trump’s newly installed “Presidential Walk of Fame” display reads “Sleepy Joe Biden,” according to reports from journalists present at the White House Wednesday.
“When I took office, inflation was the worst in 48 years, and some would say in the history of our country, which caused prices to be higher than ever before, making life unaffordable for millions and millions of Americans. This happened during a Democrat administration, and it’s when we first began hearing the word ‘affordability,’” Trump said.
In recent weeks, Trump has said “affordability” is a “hoax.”
Yet the bulk of Trump’s somewhat hastily scheduled address — the White House announced it Tuesday — focused on lowering costs for housing, electricity and health care.
Trump announced he will send a $1,776 “warrior dividend” to every U.S. servicemember. The amount is in honor of the year of the country’s founding, Trump said. Checks are “already on the way,” he said.
That could add up to as much as $2.6 billion, according to a White House estimate Wednesday night that 1.45 million service members would receive the payment.
Health care costs
He also touted trumprx.gov, where he said Americans can find “unprecedented price reductions” on prescription drugs starting in January.
“These big price cuts will greatly reduce the cost of health care,” Trump said.
He boosted a Republican plan on Capitol Hill to fund individual health savings accounts, or HSAs, in annual amounts of $1,000 to $1,500 depending on age and poverty level. An HSA is not health insurance.
“I want the money to go directly to the people so you can buy your own health care. You’ll get much better health care at a much lower price,” Trump said.
Four House Republicans defected Wednesday to sign a Democrat-led petition to bypass Speaker Mike Johnson, R-La., and force a floor vote in January on extending health insurance premium subsidies for people who buy insurance on the Affordable Care Act marketplace.
‘My favorite word’
Trump spent several minutes addressing the economy, stating that prices on groceries and fuel are coming down. Both claims are false, according to government data.
“I am bringing those high prices down and bringing them down fast,” Trump said.
The latest consumer price index for September showed gasoline prices rose 4.1% over the past 12 months, and “was the largest factor in the all items monthly increase,” increasing 1.5% over the previous month.
Food prices rose faster than overall inflation in recent months, according to the government’s latest data. Food prices in August were 3.2% higher than a year ago, according to the data.
Still, Trump claimed an economic turnaround that he credited to his international trade policy.
“Much of this success has been accomplished by tariffs — my favorite word ‘tariffs’ — which for many decades have been used successfully by other countries against us, but not anymore,” he said.
The U.S. collected nearly $195 billion in customs duties in fiscal year 2025, up from $77 last fiscal year, according to the U.S. Treasury’s monthly statement.
The U.S. ended fiscal year 2025 with a deficit reaching nearly $1.8 trillion, or roughly 6% of the domestic economy’s gross domestic product.
Trump unilaterally imposed a global 10% tariff on all foreign goods in April, plus higher tariffs on many major trading partners, including the European Union, Japan, South Korea and Vietnam. The Supreme Court is expected to rule soon on whether Trump’s emergency tariffs are legal.
Americans have lost faith in Trump’s ability to handle the economy, according to an NPR/PBS News/Marist poll published Wednesday.
Trump received a 36% approval rating on his economic strategy, the lowest rating over the past six years that the survey has asked voters the question.
A Fox News poll released Nov. 19 found 76% of respondents saw the economy negatively. Of all voters polled, 41% approved and 58% disapproved of Trump’s performance. That’s down from the conservative news network’s poll of Biden’s approval ratings during the same point in his presidency, which the network says was 44%.
Mum on Venezuela
The president did not spend much time addressing his military campaign off the coast of Venezuela, despite declaring just 24 hours beforehand that the U.S. had formed a “blockade” in the Caribbean Sea.
Trump posted on his own social media platform Truth Social Tuesday night that Venezuela is “completely surrounded by the largest Armada ever assembled in the History of South America.”
The campaign, which has become top of mind for many lawmakers on Capitol Hill, is about preventing drug smuggling to the U.S., Trump and Republican lawmakers have repeatedly said.
Democratic lawmakers are pressing the Trump administration to release unedited footage of a Sept. 2 strike that killed two shipwrecked individuals who were clinging to what was left of a boat after an initial strike.
