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housing
As Inflation Soars Under Trump, US Families Face Record High Household Debt
"These numbers tell the real story," said one campaigner. "His administration has failed to address—and in many cases, worsened—an historic cost-of-living crisis that is crushing everyday Americans."
May 12, 2026
While inflation hit a three-year high on Tuesday and President Donald Trump publicly confessed that he doesn't consider how his illegal war on Iran impacts Americans' finances, a Federal Reserve bank revealed that US household debt has risen to a record high of $18.8 trillion.
The Federal Reserve Bank of New York's Center for Microeconomic Data found that household debt increased by $18 billion in the first quarter of this year.
It specifically found that by the end of March, mortgage balances increased by $21 billion to $13.19 trillion, home equity line of credit balances jumped by $12 billion to $446 billion, and automobile loan balances rose by $18 billion to $1.69 trillion.
The center further found that "while student loan balances remained essentially flat, decreasing by $6 billion and standing at $1.66 trillion," the delinquency rate "increased to 10.3% of balances 90+ days delinquent, up from the 9.6%" in the last quarter of 2025.
The analysis notes that credit card balances dropped by $25 billion to $1.25 trillion, a seasonal decline that generally occurs after the winter holidays. However, in its coverage of the New York Fed's findings, CNBC highlighted another report out Tuesday that shows how Americans are struggling with current economic conditions.
As CNBC detailed:
More than half—53%—of consumers carry credit card balances to cover essential expenses, according to a report released Tuesday by debt management company Achieve.
"For many households, higher balances are less a sign of economic optimism and more a sign that wages and savings are struggling to keep pace with essential expenses like groceries, utilities, and housing," Austin Kilgore, analyst for the Achieve Center for Consumer Insights, said in a statement.
Among respondents in Achieve's survey of 2,000 consumers, 57% of borrowers said it would take six months or longer to pay off all their credit card debt.
According to ABC News, "On a call with reporters Tuesday morning, researchers at the New York Fed described Americans' overall credit as 'stable,' but noted there are weaknesses among younger consumers and lower-income households."
Mike Pierce, co-founder and executive director of the advocacy group Protect Borrowers, was far more scathing, declaring in a statement that "working families are at a breaking point and desperately need relief. Instead, President Trump is bragging about his plans for a new White House ballroom while his head economist touts families' surging debts as a sign of a booming economy."
"These numbers tell the real story: Trump's economy has driven up costs," Pierce continued. "His administration has failed to address—and in many cases, worsened—an historic cost-of-living crisis that is crushing everyday Americans under stagnant wages and rampant price gouging by grocery conglomerates, data centers, corporate landlords, and private equity firms."
"Making matters worse, Trump's war with Iran is pushing inflation to record levels and forcing Americans to feel the economic pain at the pump," he added, as gasoline prices topped $4.50 a gallon on Tuesday. "It is clear that President Trump is not only failing to 'Make America Affordable Again' but is actively pushing millions of families further into the red."
Last week, Pierce's group and The Century Foundation published an analysis about soaring US auto loan debt. Report co-author and Protect Borrowers senior fellow Tara Mikkilineni said at the time that "for millions of working families, a car is not a luxury, it is an essential economic lifeline. Working families deserve relief, and they deserve to have a government that is watching out for them, not allowing lenders and auto dealers to rake in record profits at their expense."
Meanwhile, Trump—who is facing intense disapproval from the US public, particularly regarding the economy—has repeatedly made clear he doesn't care how his policies, from sweeping tariffs to the Iran War, impact Americans' pocketbooks.
Trump's assault prompted Iran to restrict ship traffic through the Strait of Hormuz, a key trade route, which has driven up the prices of fossil fuels worldwide. Speaking with journalists outside the White House last month, Trump suggested that $4 a gallon for gas is "not very high."
Asked about the war's impact on the US public's finances again on Tuesday, Trump said that "the only thing that matters when I'm talking about Iran—they can't have a nuclear weapon. I don't think about Americans' financial situation. I don't think about anybody. I think about one thing—we cannot let Iran have a nuclear weapon. That's all."
Those remarks came just hours after the latest consumer price index from the US Bureau of Labor Statistics, which shows that prices increased by 3.8% on an annual basis in April—above economists' expected 3.7% jump—and the cost of living rose above average monthly wage gains. Various experts responded by taking aim at the president.
University of Michigan economist Justin Wolfers said that "Trump campaigned on bringing down the cost of living 'starting on day one,' and then: started a trade war; deported much of the farm workforce, bombed Iran, allowed healthcare subsidies to expire, cut food assistance, ran an interest-rate boosting deficit, and attacked Fed independence."
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Louisiana Advances One of the Country’s ‘Cruelest’ Anti-Homeless Bills
One homeless advocacy group said the bill, which would require homeless people to perform unpaid labor to pay for involuntary treatment, "evokes debtor’s prisons, convict leasing, and the ugliest day of Jim Crow."
Apr 18, 2026
The Louisiana House of Representatives voted this week to pass what the National Homelessness Law Center says is "one of the cruelest anti-homeless bills in the country."
Like many other anti-homeless bills being advanced around the country following a 2024 Supreme Court decision allowing states and cities to criminalize homelessness, House Bill 211, which passed by a vote of 70-28, makes unauthorized sleeping in public spaces a crime.
It is punishable by a fine of up to $500, imprisonment for up to six months, or both. Repeat offenders could face one to two years in prison with hard labor and a $1,000 fine.
The bill, which will now advance to the GOP-controlled state Senate, has been nicknamed the "Streets to Success Act" because, according to its sponsor, state Rep. Debbie Villio (R-79), the goal is not to jail homeless people but to "connect them to service providers."
Those who are convicted of sleeping outdoors could be given the option to avoid jail time by instead entering into a mandatory treatment program for at least 12 months. The bill authorizes local governments to set up semi-permanent camps in remote areas, where defendants would be required to stay and receive treatment.
The bill requires homeless defendants to pay “all or part of the cost of the treatment program to which he is assigned," a steep cost for many, as the average cost for residential drug and alcohol rehab treatment in Louisiana is more than $4,400 per week, according to the addiction referral service directory Addicted.org.
According to the bill, those who cannot afford this steep cost would be required to perform unpaid labor for the state or a local community center in lieu of payment.
Bill Quigley, director of the Gillis Long Poverty Law Center at Loyola University New Orleans, called the bill's entire premise "a farce."
"If people had the resources to pay for housing and physical and/or mental health services, they would not be on the street," he told Common Dreams.
He described it as a "cruel theater of the absurd" based on "the lie that people choose to be homeless." The law, he said, "assumes our communities have plenty of affordable apartments and lots of mental and physical health services available."
In reality, he said, these services are chronically underfunded, and the city would need to build about 55,000 more affordable rental units to provide enough housing for its rent-burdened population.
Though it is not uncommon for homeless people to struggle with mental health or substance use issues, increases in the cost of housing have been shown to have a direct relationship with increasing homelessness.
Homelessness in New Orleans dropped considerably in the years following the Covid-19 pandemic, when Congress provided permanent housing subsidies for those in need. But after those funds have dried up, homelessness in the city shot up higher than before the pandemic, a study by the homelessness nonprofit UNITY of Greater New Orleans found in 2024.
New Orleans City Councilmember Lesli Harris (D), who has opposed the bill, pointed to the success of the city's Home for Good program, which took a "Housing First" approach to homelessness, providing rental subsidies and allowing people to move straight from encampments into housing without requirements that they obtain treatment.
According to a May 2025 report, the program had moved 1,133 people off the streets and into supportive housing and allowed eight homeless encampments to close.
"Through our Home for Good program, we house an individual for roughly $21,844 per year. By comparison, jailing that same person costs an average of $51,000—and failing to act at all can cost up to $55,000 in emergency room visits and crisis rehousing," Harris said. "HB 211 would steer Louisiana toward the most expensive option while producing no lasting housing, no services, and no real path forward for the people involved."
Harris has also decried the bill's creation of what she called "internment camps" for treatment. The bill's text requires these facilities to be far away from downtown and other high-value neighborhoods, which she said separates those trying to rebuild their lives from work, public transit, and other critical services, and further isolates them from society.
Since the Supreme Court’s 2024 decision in Grants Pass v. Johnson, which allowed cities to enforce public-camping bans against unhoused people even when shelter is unavailable, around two dozen states and hundreds of municipalities have passed various measures criminalizing poverty.
The homeless advocacy group Housing Not Handcuffs points out that many of the bills were written by the Cicero Institute, a far-right think tank with heavy backing from billionaire tech investors that now has deep influence over the housing policy of President Donald Trump, who has taken a hacksaw to funding for public housing programs under the Department of Housing and Urban Development.
Housing Not Handcuffs said Louisiana's bill, which would almost certainly be signed by Republican Gov. Jeff Landry if passed by the state Senate, "is an extreme take on the already extreme copy-paste legislation" peddled by Cicero.
"This bill forces homeless people charged with a crime to make the false choice between jail or at least one year of forced treatment," the group said. "Louisiana has a long history—and present—of chain gangs, prison labor, and entrenched white supremacy. This bill clearly evokes debtor’s prisons, convict leasing, and the ugliest day of Jim Crow."
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Targeting 'Bad Landlords,' Mamdani Invites New Yorkers to Testify at 'Rental Ripoff' Hearings
“What tenants share at these hearings won’t lead to empty promises," said the mayor. "Their testimony will guide our work and help shape the policies we advance to build a city New Yorkers can afford to call their home.”
Feb 10, 2026
After delivering on his promise of universal childcare for New York families, launching a process to ramp up construction of affordable housing, and personally seeing to snow removal after a major storm and the repair of a road hazard that's long plagued cyclists, New York City Mayor Zohran Mamdani on Tuesday made strides toward fulfilling another campaign pledge: cracking down on "bad landlords."
The effort will involve active participation from residents across the city, whom Mamdani invited to testify at "Rental Ripoff" hearings set to begin later this month in the five boroughs.
“You can’t fight for tenants without listening to them first. That’s why we’re launching Rental Ripoff Hearings in all five boroughs—bringing together renters to speak directly about what they’re facing, from hidden fees to broken tiles and unresponsive landlords,” Mamdani, a democratic socialist, said in a statement.
On social media, Mamdani said the hearings will give New Yorkers "a chance to tell the city EXACTLY what your landlord’s been getting away with" and will help his government to enact "real policy changes."
People who testify will have the opportunity to meet one-on-one with officials from City Hall, "including commissioners from the city’s housing and consumer protection agencies, to help shape future policy," according to the BK Reader.
The city website urges residents to testify about challenges including "getting issues in their homes addressed" and "rental junk fees," like fees for certain amenities, pets, services, and rental payment systems.
The dates of the hearings were announced five weeks after Mamdani signed Executive Order 08, which stipulates that city agencies will publish a report 90 days after the final hearing—scheduled for April 7 in Staten Island—with recommendations for policy changes and action plans.
Kenny Burgos, CEO of the New York Apartment Association (NYAA), which represents apartment building owners and property managers, quickly denounced the planned hearings as "show trials" and "a distraction."
Burgos claimed the NYAA believes that "renters with complaints should have their voices heard," but suggested landlords have little ability to respond to complaints because "thousands of buildings are being defunded by the government through overtaxation, nonsensical rent laws, and failing city agencies.”
Mamdani has argued that "the problems tenants deal with every day need to become real problems for landlords, too" and has called for the doubling of fines for hazardous housing violations.
“What tenants share at these hearings won’t lead to empty promises," said Mamdani on Tuesday. "Their testimony will guide our work and help shape the policies we advance to build a city New Yorkers can afford to call their home.”
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