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A daycare center employee pushes a KinderVan filled with preschool children on an outing along the National Mall in Washington, D.C. (Photo: Robert Alexander/Getty Images)
Democratic Frontrunner Bernie Sanders Releases Plan for Guaranteed 'Child Care and Pre-K for All'
"We know that the first four years of a child's life are the most important years of human development, so it is unconscionable that in the wealthiest country in the world, we do not properly invest in early childhood education."
Feb 23, 2020
Now running as the presumptive frontrunner in the Democratic presidential primary, Sen. Bernie Sanders on Monday morning unveiled a sweeping new proposal that would guarantee high-quality child care and then pre-kindergarten education to every child--regardless of income or status--in the United States.
"By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
--Sen. Bernie Sanders
Citing figures that show the average American family with young children spends $10,000 per year on childcare--a burden that eats as much as 35 percent out of the annual budget of low-income families' annual budget--the detailed early childhood plan released by the Sanders campaign seeks to address the crisis and economic hardship by providing free child care starting at infancy and pre-K beginning at age three.
"Childcare must be guaranteed for every child regardless of their parents' income, just like K-12 education," said Sanders in a statement. "We know that the first four years of a child's life are the most important years of human development, so it is unconscionable that in the wealthiest country in the world, we do not properly invest in early childhood education." Sanders said.
Sanders--who has achieved frontrunner status in the Democratic 2020 race on a platform of universal programs like Medicare for All and denouncing "grotesque" levels of inequality--releases his early childhood plan just two days after a landslide win in the Nevada caucus and with Super Tuesday just over a week away on March 3.
In a study released last month, the Economic Policy Institute (EPI) found that American families spend approximately $42 billion annually on child care for their children. That figure does not include the $34 billion spent by federal and state governments on child care support systems, services, and subsidies. According to EPI, parents of young children forgo $30 to 35 billion each year in income due to the high cost of early childhood care and education, a figure that translates into an estimated $4.2 billion in lost federal tax revenue.
The "astronomical cost of this failed system," according to the Sanders campaign's plan, hits "vulnerable and marginalized families the hardest"--with lower-income parents directing huge portions of their salaries towards child care or being forced to leave the workforce entirely to care for their children:
A majority of Black and Latina mothers report being passed up for promotions, working fewer hours, or making other career sacrifices in order to care for their children. Those who can pay for care and education are having an increasingly difficult time finding affordable options; 80 percent of families with young children have a hard time finding quality child care at a cost they can afford.
All over the country, families are struggling under the cost of child care. Today, caring for children in America is so outrageously expensive that having children is a leading cause of poverty in the United States. Bernie believes that no family should be pushed into poverty for the "crime" of making sure their children are cared for and safe.
Recent reporting by CNBC notes that increasing numbers of families face "a Catch-22 when it comes to paying for child care: Americans now have to put in more work hours to generally to make ends meet, which requires spending more on day care and babysitters. Yet since the 1990s the costs of child care have been rising twice as fast as overall inflation in the U.S."
Sanders plans intends to halt that trend.
"As president, we will guarantee free, universal childcare and pre-kindergarten to every child in America to help level the playing field, create new and good jobs, and enable parents more easily balance the demands of work and home," Sanders said.
According to the campaign, the plan would:
- Provide child care at least 10 hours a day and ensure programs operate at times to serve parents who work non-traditional hours.
- Building off the success of the existing federal child care programs, the universal free child care program will be funded by the federal government and administered by state agencies and tribal governments in cooperation and in collaboration with public school districts, and other relevant agencies and organizations. The federal funding will cover the full cost of child care services and pay for the workers as well as capital expenses.
- As a condition of funding, the federal government will set quality standards for the program, including minimum wages for workers and mandated low child-to-adult ratios and small group sizes for delivery of services.
- Guarantee every child access to a full-day, full-week pre-kindergarten education, regardless of income, starting at age 3.
Wendoly Marte, director of Economic Justice for the progressive advocacy group Community Change Action, responded to the new proposal with applause.
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live. It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
--Wendoly Marte, Community Change Action
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live," Marte said in a statement. "It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
Marte credited the childcare movement nationwide for pushing the envelope on such policies and said the what Sanders has put forth, as well as proposals by Sen. Elizabeth Warren (D-Mass.), also running for the Democratic nomination, signal a turning point in the way top politicians are discussing the crisis around childcare and early childhood education that so many families and communities experience.
"Bold child care plans, such as those by Sanders and Warren," she said, "are examples of the type of comprehensive proposals we need to interrupt generations of racial, gender and socio-economic injustice. We must invest in all families so they can thrive."
The early child care and universal pre-K would be paid for by inverting the massive tax giveaway lavished on the wealthiest individuals and corporations in the country by President Donald Trump.
"Trump provided over $1 trillion in tax breaks to the top 1 percent and the most profitable corporations in America," the Sanders campaign proposal states. "We will do the exact opposite. We will demand that the wealthiest people and most profitable corporations in America pay their fair share of taxes. By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
Read the full plan here.
Update: This piece has been updated to include outside comments from Community Change Action's Wendoly Marte.
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Now running as the presumptive frontrunner in the Democratic presidential primary, Sen. Bernie Sanders on Monday morning unveiled a sweeping new proposal that would guarantee high-quality child care and then pre-kindergarten education to every child--regardless of income or status--in the United States.
"By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
--Sen. Bernie Sanders
Citing figures that show the average American family with young children spends $10,000 per year on childcare--a burden that eats as much as 35 percent out of the annual budget of low-income families' annual budget--the detailed early childhood plan released by the Sanders campaign seeks to address the crisis and economic hardship by providing free child care starting at infancy and pre-K beginning at age three.
"Childcare must be guaranteed for every child regardless of their parents' income, just like K-12 education," said Sanders in a statement. "We know that the first four years of a child's life are the most important years of human development, so it is unconscionable that in the wealthiest country in the world, we do not properly invest in early childhood education." Sanders said.
Sanders--who has achieved frontrunner status in the Democratic 2020 race on a platform of universal programs like Medicare for All and denouncing "grotesque" levels of inequality--releases his early childhood plan just two days after a landslide win in the Nevada caucus and with Super Tuesday just over a week away on March 3.
In a study released last month, the Economic Policy Institute (EPI) found that American families spend approximately $42 billion annually on child care for their children. That figure does not include the $34 billion spent by federal and state governments on child care support systems, services, and subsidies. According to EPI, parents of young children forgo $30 to 35 billion each year in income due to the high cost of early childhood care and education, a figure that translates into an estimated $4.2 billion in lost federal tax revenue.
The "astronomical cost of this failed system," according to the Sanders campaign's plan, hits "vulnerable and marginalized families the hardest"--with lower-income parents directing huge portions of their salaries towards child care or being forced to leave the workforce entirely to care for their children:
A majority of Black and Latina mothers report being passed up for promotions, working fewer hours, or making other career sacrifices in order to care for their children. Those who can pay for care and education are having an increasingly difficult time finding affordable options; 80 percent of families with young children have a hard time finding quality child care at a cost they can afford.
All over the country, families are struggling under the cost of child care. Today, caring for children in America is so outrageously expensive that having children is a leading cause of poverty in the United States. Bernie believes that no family should be pushed into poverty for the "crime" of making sure their children are cared for and safe.
Recent reporting by CNBC notes that increasing numbers of families face "a Catch-22 when it comes to paying for child care: Americans now have to put in more work hours to generally to make ends meet, which requires spending more on day care and babysitters. Yet since the 1990s the costs of child care have been rising twice as fast as overall inflation in the U.S."
Sanders plans intends to halt that trend.
"As president, we will guarantee free, universal childcare and pre-kindergarten to every child in America to help level the playing field, create new and good jobs, and enable parents more easily balance the demands of work and home," Sanders said.
According to the campaign, the plan would:
- Provide child care at least 10 hours a day and ensure programs operate at times to serve parents who work non-traditional hours.
- Building off the success of the existing federal child care programs, the universal free child care program will be funded by the federal government and administered by state agencies and tribal governments in cooperation and in collaboration with public school districts, and other relevant agencies and organizations. The federal funding will cover the full cost of child care services and pay for the workers as well as capital expenses.
- As a condition of funding, the federal government will set quality standards for the program, including minimum wages for workers and mandated low child-to-adult ratios and small group sizes for delivery of services.
- Guarantee every child access to a full-day, full-week pre-kindergarten education, regardless of income, starting at age 3.
Wendoly Marte, director of Economic Justice for the progressive advocacy group Community Change Action, responded to the new proposal with applause.
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live. It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
--Wendoly Marte, Community Change Action
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live," Marte said in a statement. "It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
Marte credited the childcare movement nationwide for pushing the envelope on such policies and said the what Sanders has put forth, as well as proposals by Sen. Elizabeth Warren (D-Mass.), also running for the Democratic nomination, signal a turning point in the way top politicians are discussing the crisis around childcare and early childhood education that so many families and communities experience.
"Bold child care plans, such as those by Sanders and Warren," she said, "are examples of the type of comprehensive proposals we need to interrupt generations of racial, gender and socio-economic injustice. We must invest in all families so they can thrive."
The early child care and universal pre-K would be paid for by inverting the massive tax giveaway lavished on the wealthiest individuals and corporations in the country by President Donald Trump.
"Trump provided over $1 trillion in tax breaks to the top 1 percent and the most profitable corporations in America," the Sanders campaign proposal states. "We will do the exact opposite. We will demand that the wealthiest people and most profitable corporations in America pay their fair share of taxes. By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
Read the full plan here.
Update: This piece has been updated to include outside comments from Community Change Action's Wendoly Marte.
Now running as the presumptive frontrunner in the Democratic presidential primary, Sen. Bernie Sanders on Monday morning unveiled a sweeping new proposal that would guarantee high-quality child care and then pre-kindergarten education to every child--regardless of income or status--in the United States.
"By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
--Sen. Bernie Sanders
Citing figures that show the average American family with young children spends $10,000 per year on childcare--a burden that eats as much as 35 percent out of the annual budget of low-income families' annual budget--the detailed early childhood plan released by the Sanders campaign seeks to address the crisis and economic hardship by providing free child care starting at infancy and pre-K beginning at age three.
"Childcare must be guaranteed for every child regardless of their parents' income, just like K-12 education," said Sanders in a statement. "We know that the first four years of a child's life are the most important years of human development, so it is unconscionable that in the wealthiest country in the world, we do not properly invest in early childhood education." Sanders said.
Sanders--who has achieved frontrunner status in the Democratic 2020 race on a platform of universal programs like Medicare for All and denouncing "grotesque" levels of inequality--releases his early childhood plan just two days after a landslide win in the Nevada caucus and with Super Tuesday just over a week away on March 3.
In a study released last month, the Economic Policy Institute (EPI) found that American families spend approximately $42 billion annually on child care for their children. That figure does not include the $34 billion spent by federal and state governments on child care support systems, services, and subsidies. According to EPI, parents of young children forgo $30 to 35 billion each year in income due to the high cost of early childhood care and education, a figure that translates into an estimated $4.2 billion in lost federal tax revenue.
The "astronomical cost of this failed system," according to the Sanders campaign's plan, hits "vulnerable and marginalized families the hardest"--with lower-income parents directing huge portions of their salaries towards child care or being forced to leave the workforce entirely to care for their children:
A majority of Black and Latina mothers report being passed up for promotions, working fewer hours, or making other career sacrifices in order to care for their children. Those who can pay for care and education are having an increasingly difficult time finding affordable options; 80 percent of families with young children have a hard time finding quality child care at a cost they can afford.
All over the country, families are struggling under the cost of child care. Today, caring for children in America is so outrageously expensive that having children is a leading cause of poverty in the United States. Bernie believes that no family should be pushed into poverty for the "crime" of making sure their children are cared for and safe.
Recent reporting by CNBC notes that increasing numbers of families face "a Catch-22 when it comes to paying for child care: Americans now have to put in more work hours to generally to make ends meet, which requires spending more on day care and babysitters. Yet since the 1990s the costs of child care have been rising twice as fast as overall inflation in the U.S."
Sanders plans intends to halt that trend.
"As president, we will guarantee free, universal childcare and pre-kindergarten to every child in America to help level the playing field, create new and good jobs, and enable parents more easily balance the demands of work and home," Sanders said.
According to the campaign, the plan would:
- Provide child care at least 10 hours a day and ensure programs operate at times to serve parents who work non-traditional hours.
- Building off the success of the existing federal child care programs, the universal free child care program will be funded by the federal government and administered by state agencies and tribal governments in cooperation and in collaboration with public school districts, and other relevant agencies and organizations. The federal funding will cover the full cost of child care services and pay for the workers as well as capital expenses.
- As a condition of funding, the federal government will set quality standards for the program, including minimum wages for workers and mandated low child-to-adult ratios and small group sizes for delivery of services.
- Guarantee every child access to a full-day, full-week pre-kindergarten education, regardless of income, starting at age 3.
Wendoly Marte, director of Economic Justice for the progressive advocacy group Community Change Action, responded to the new proposal with applause.
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live. It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
--Wendoly Marte, Community Change Action
"Sanders' plan would make child care and pre-Kindergarten available with no tuition or fees to every child regardless of where they live," Marte said in a statement. "It would make care more affordable for those who need it most and provide a living wage for the mostly Black and Brown women providers who keep our children safe."
Marte credited the childcare movement nationwide for pushing the envelope on such policies and said the what Sanders has put forth, as well as proposals by Sen. Elizabeth Warren (D-Mass.), also running for the Democratic nomination, signal a turning point in the way top politicians are discussing the crisis around childcare and early childhood education that so many families and communities experience.
"Bold child care plans, such as those by Sanders and Warren," she said, "are examples of the type of comprehensive proposals we need to interrupt generations of racial, gender and socio-economic injustice. We must invest in all families so they can thrive."
The early child care and universal pre-K would be paid for by inverting the massive tax giveaway lavished on the wealthiest individuals and corporations in the country by President Donald Trump.
"Trump provided over $1 trillion in tax breaks to the top 1 percent and the most profitable corporations in America," the Sanders campaign proposal states. "We will do the exact opposite. We will demand that the wealthiest people and most profitable corporations in America pay their fair share of taxes. By taxing the extreme wealth of the top 0.1 percent, we can invest $1.5 trillion over the next decade on guaranteeing free, universal, quality child care and early education for all. And unlike Trump's tax cuts, investing in our children actually pays for itself: for every $1 we invest in pre-kindergarten, we see an economic return as high as $17."
Read the full plan here.
Update: This piece has been updated to include outside comments from Community Change Action's Wendoly Marte.
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LATEST NEWS
'Censorship and Discrimination': 200+ Scholars Slam Canceling of Harvard Journal Issue on Palestine
They wrote that "it exemplifies anti-Palestinian discrimination, obstructing the dissemination of knowledge on Palestine at the height of the genocide in Gaza," where students and educators face scholasticide.
Aug 14, 2025
As Israel continues its U.S.-backed annihilation of the Gaza Strip and Harvard University weighs a deal with the Trump administration, the Ivy League institution came under fire by more than 200 scholars on Thursday for recently canceling a journal issue on Palestine.
"We, the undersigned scholars, educators, and education practitioners, write to express our alarm at the Harvard Education Publishing Group's (HEPG) cancellation of a special issue on Palestine and Education in the Harvard Educational Review (HER)," says the open letter. "Such censorship is an attempt to silence the academic examination of the genocide, starvation, and dehumanization of Palestinian people by the state of Israel and its allies."
Last month, The Guardian revealed how, after over a year of seeking, collecting, and editing submissions for a special issue on "education and Palestine" in preparation for a summer release, HEPG scrapped plans for the publication in June.
"The Guardian spoke with four scholars who had written for the issue, and one of the journal's editors," the newspaper detailed. "It also reviewed internal emails that capture how enthusiasm about a special issue intended to promote 'scholarly conversation on education and Palestine amid repression, occupation, and genocide' was derailed by fears of legal liability and devolved into recriminations about censorship, integrity, and what many scholars have come to refer to as the 'Palestine exception' to academic freedom."
The new letter also uses that language:
Contributing authors of the special issue were informed late into the process that the publisher intended to subject all articles to a legal review by Harvard University's Office of General Counsel. In response to this extraordinary move, the 21 contributing authors submitted a joint letter to both HEPG and HER, protesting this process as a contractual breach that violated their academic freedom. They also underscored the publisher's actions would set a dangerous precedent not only for the study of Palestine, but for academic publishing as a whole. The authors demanded that HEPG honour the original terms of their contractual agreements, uphold the integrity of the existing HER review process, and ensure that the special issue proceed to publication without interference. However, just prior to its release, HEPG unilaterally canceled the entire special issue and revoked the signed author contracts, in what The Guardian notes as "a remarkable new development in a mounting list of examples of censorship of pro-Palestinian speech."
These events reflect what scholars have termed the "Palestine exception" to free speech and academic freedom. It exemplifies anti-Palestinian discrimination, obstructing the dissemination of knowledge on Palestine at the height of the genocide in Gaza—precisely when Palestinian educators and students are enduring the most severe forms of "scholasticide" in modern history.
In a lengthy online statement about the cancellation, HEPG executive director Jessica Fiorillo said that "we decided not to move forward with the special issue because it did not meet our established standards for scholarly publishing. Of the 12 proposed pieces, three were research-based articles, two were reprints of previously published HER articles, and seven were opinion pieces."
"As a student-edited, non-peer-reviewed publication, HER manuscripts, nonetheless, undergo internal review by experienced, professional staff," she continued. "During this review, we determined that the submissions required substantial editorial work to meet our publication criteria. We concluded that the best recourse for all involved was to revert the rights to the pieces to authors so that they could seek publication elsewhere."
The scholars wrote Thursday that "it is unconscionable that HEPG have chosen to publicly frame their cancellation of the special issue as a matter of academic quality, while omitting key publicly reported facts that point to censorship. Perhaps most disturbingly, HEPG leadership has sought to displace responsibility for their actions onto the authors and graduate student editors of the journal, calling into question the integrity of the journal's long-standing review processes, and dismissing the articles as 'opinion pieces' unfit for publication."
"The latter claim ignores that HER explicitly welcomes 'experiential knowledge' and 'reflective accounts' through their Voices submission format," they noted. "When genocide is ongoing, personal reflections and testimonies are not only valid but vital. Dismissing such contributions as lacking scholarly merit reflects an exclusionary view of 'whose knowledge counts'—valuing Western and external academic perspectives over lived experiences of violence and oppression."
The scholars—whose letter remains open to signatures—said that they "stand in solidarity with the authors and graduate student editors of the special issue, who are facing and confronting censorship and discrimination," and concluded by calling for "HEPG to be held accountable."
HEPG is a division of the Harvard Graduate School of Education. While a spokesperson for the latter did not respond to The Guardian's request for comment on the new letter, signatory and University of Oxford professor Arathi Sriprakash told the newspaper that the cancellation mobilized scholars "precisely because we recognize the grave consequences of such threats to academic freedom and academic integrity."
"The ongoing genocidal violence in Gaza has involved the physical destruction of the entire higher education system there, and now in many education institutions around the world there are active attempts to shut down learning about what's happening altogether," Sriprakash said. "As educationalists, we have to remain steadfast in our commitment to the pursuit of knowledge and learning without fear or threat."
HEPG's cancellation has been blasted as yet another example of higher education institutions capitulating as President Donald Trump's administration cracks down on schools where policies and speech on campus don't align with the White House agenda—including students' and educators' condemnation of the Israeli assault on Gaza and U.S. complicity in it. The Trump administration is also targeting individual critics, trying to deport foreign scholars who have spoken out or protested on campus over the past 22 months.
Harvard won praise in April for suing the federal government over a multibillion-dollar funding freeze. However, last month, the university "quietly dismantled its undergraduate school's offices for diversity, equity, and inclusion," and reportedly "signaled a willingness to meet the Trump administration's demand to spend as much as $500 million to end its dispute with the White House."
Amid fears of what a settlement, like those reached by other Ivy League institutions, might involve, Harvard faculty argued in a July letter that "the university must not directly or indirectly cede to governmental or other outside authorities the right to install or reject leading personnel—that is, to dictate who can be the officials who lead the university or its component schools, departments, and centers."
While the HER issue was canceled during Harvard's battle with Trump, outrage over how scholarship on Palestine is handled on campus predates the president's return to power in January. In November 2023, The Nation published a piece about Israel's war on Gaza that the Harvard Law Review commissioned from a Palestinian scholar but then refused to run after an internal debate.
At the time, the author of that essay, human rights attorney Rabea Eghbariah, wrote in an email to a Law Review editor: "This is discrimination. Let's not dance around it—this is also outright censorship. It is dangerous and alarming."
Key Inflation Indicator Comes in ‘Scorching Hot’ Just as Trump Tariffs Hit
"So much for foreigners paying tariffs," commented one economic expert.
Aug 14, 2025
A leading inflation indicator surged much more than expected last month, just as the impact of U.S. President Donald Trump's tariffs started to weigh on American businesses and consumers.
New Producer Price Index (PPI) numbers released on Thursday showed that wholesale prices rose by 0.9% over the last month and by 3.3% over the last year. These numbers were significantly higher than economists' consensus estimates of a 0.2% monthly rise and a 2.5% yearly rise in producer prices.
PPI is a leading indicator of future readings of the Consumer Price Index, the most widely cited gauge of inflation, as increases in wholesalers' prices almost inevitably get passed on to consumers. Economists have been predicting for months that Trump's tariffs on imported goods, which at the moment are higher than at any point in nearly 100 years, would lead to a spike in inflation.
Reacting to the higher-than-expected PPI number, some economic experts pinned the blame directly on the president.
"So much for foreigners paying tariffs," commented Joseph Brusuelas, chief economist at tax consulting firm RSM US, on X. "If they did, PPI would be falling. Wholesale prices up 3.3% from a year ago and 3.7% in the core. The temperature is definitely rising in the core. This implies a hot PCE reading lies ahead."
Liz Pancotti, the managing director of policy and advocacy at the Groundwork Collaborative, took a deep dive into the numbers and found that Trump's tariffs were having an impact on a wide range of products.
"There is no mistaking it: President Trump's tariffs are hitting American farmers and driving up grocery prices for American families," she said. "Wholesale prices for grocery staples, like fresh vegetables (up 39% over the past month) and coffee (up 29% over the past year) are rising, squeezing American families even further in the checkout line."
Pancotti singled out the rise in milk prices as particularly worrisome for American families.
"Milk drove more than 30% of the increase in prices for unprocessed goods, rising by 9.1% in just the past month," she explained. "Tuesday's CPI print showed that milk prices rose by 1.9% in July, and this PPI data suggests further price hikes are on the way."
Betsey Stevenson, who served on former President Barack Obama's Council of Economic Advisers, also pointed the finger at Trump's policies.
"Tariffs will cause higher prices," she said. "Volatility and uncertainty will cause higher prices. The PPI jump is not a surprise, it was inevitable."
On his Bluesky account, CNBC's Carl Quintanilla flagged analysis from economic research firm High Frequency Economics stating that the new PPI numbers were "a kick in the teeth for anyone who thought that tariffs would not impact domestic prices in the United States economy."
The firm added that it "will not be a long journey for producers' prices to translate into consumer prices" in the coming months.
Liz Thomas, the head of investment strategy at finance company SoFi, argued that the hot PPI numbers could further frustrate Trump's goal of getting the Federal Reserve to lower interest rates given that doing so would almost certainly boost inflation further.
"The increase in PPI was driven by services, and there were increases in general services costs and in the Trade component (i.e., wholesale/retail margins)," she commented. "The Fed won't like this report."
Ross Hendricks, an analyst at economic research firm Porter & Co., described the new report as "scorching hot" and similarly speculated that it would stop the Federal Reserve from cutting rates.
"Good luck with them rate cuts!" he wrote. "Can't recall the last time we've seen a miss that big on a single monthly inflation number."
Hedge fund manager and author Jeff Macke jokingly speculated that the bad PPI print would cause Trump to fire yet another government statistician just as he fired Erika McEntarfer, the former commissioner of the Bureau of Labor Statistics.
"Whoever compiles the PPI needs to update their CV," he wrote.
Just as with the monthly jobs report, the Bureau of Labor Statistics collects and publishes PPI data.
'Corporate Crime Pays' Under Trump as His Agencies Drop Enforcement Against 165 Companies
"The Trump administration is protecting lawbreaking corporate insiders from accountability instead of protecting Americans from corporate lawbreaking," said the author of a new Public Citizen report.
Aug 14, 2025
During the first six months of his second term, President Donald Trump's administration has withdrawn or suspended enforcement actions against 165 companies in sectors across the U.S. economy, with Big Tech benefiting most from federal agencies' lax approach to corporate crime.
A report released Wednesday by the consumer advocacy group Public Citizen found that the Trump administration has halted or ended a third of misconduct investigations and enforcement actions targeting technology firms—including behemoths such as Meta, Tesla, and Google.
Both Meta and Google donated to Trump's inaugural fund, and Tesla CEO Elon Musk spent big in support of the president's 2024 White House bid. Public Citizen found that the tech corporations that have benefited from Trump administration decisions to drop enforcement efforts have spent a combined $1.2 billion trying to influence the president.
"The Trump administration is protecting lawbreaking corporate insiders from accountability instead of protecting Americans from corporate lawbreaking," said Rick Claypool, a research director for Public Citizen and author of the new report. "To Big Tech corporations, this sends the message there is little risk in breaking the law in pursuit of profit—especially if you are an ally of the administration."
"For insiders," Claypool added, "corporate crime pays."
"Although he pretends to be tough on Big Tech, Donald Trump is a willing enabler of Big Tech's wrongdoing."
Public Citizen's report comes amid growing scrutiny of what one critic recently described as "the incredible shrinking Trump antitrust enforcers."
Despite claims of a "surging MAGA antitrust movement," Trump's Justice Department and Federal Trade Commission have repeatedly shown a willingness to bow to White House-connected lobbyists and allow corporate consolidation to proceed unabated. Last week, as Common Dreams reported, the Trump DOJ settled a Biden-era legal challenge against UnitedHealth Group, allowing the monopolist to swallow yet another competitor.
"The second Trump administration has now become a pay-to-play operation where influential MAGA lobbyists paid millions by large corporations use their clout with the president and Attorney General Pam Bondi to overrule the enforcers and push through mergers," The American Prospect's David Dayen wrote following news of the UnitedHealth settlement.
"It seems that if you're a company and can pony up the money," Dayen added, "you can get whatever regulatory treatment you wish. Bribery has gone in a few short months from a prohibited activity to the coin of the realm in Trump's America."
As Public Citizen's report showed, tech giants have been the chief beneficiaries of what the group characterized as the Trump administration's corrupt approach to corporate crime enforcement.
At the start of Trump's second term, at least 104 tech corporations faced more than 140 federal investigations and enforcement actions. The Trump administration has withdrawn or halted nearly 50 of those enforcement actions, Public Citizen found.
"Although he pretends to be tough on Big Tech, Donald Trump is a willing enabler of Big Tech's wrongdoing," Robert Weissman, co-president of Public Citizen, said in a statement. "For Big Tech, a relative pittance in political spending has generated gigantic returns in dropped prosecutions, policy U-turns, and aggressive administration support for Big Tech's global agenda."
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