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Author: Chris Clark

  • Trump administration abruptly terminates $24M in grants going to city of Denver — joining the ranks of US cities caught in the crosshairs of the president’s immigration enforcement

    The Mile High City has joined a growing list of U.S. metros put on notice by the Trump administration: No more federal money for shelters that support migrants.

    Denver leaders recently heard from the Federal Emergency Management Agency (FEMA) that the agency is rescinding $24 million in grants earmarked to support shelters and services for migrants arriving in the city.

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    The abrupt termination of funding was revealed during a routine presentation to the City Council in April, disrupting the plans of city officials who were relying on these funds to offset the costs of an influx of migrants.

    "The city does not have the capacity, if all of that federal funding were to go away, to backfill it. And so, that is another risk that we are carefully monitoring and very concerned about," Budget Director Justin Sykes told the council, according to ABC affiliate Denver 7.

    Cities caught in between

    Cities applied for FEMA grants for migrant support because they faced significant costs in providing emergency shelter, food, medical care and transportation to migrants released from federal short-term holding facilities.

    The Shelter and Services Program (SSP), administered by FEMA, was created to help non-federal entities offset some of these emergency costs, especially as large numbers of migrants began arriving and many could not immediately support themselves. Without this federal reimbursement, cities would have to bear these expenses alone, straining local budgets and resources.

    In Denver’s case, roughly $8 million of the $32 million promised had already been dispersed, according to Denver 7. It’s unclear whether FEMA will seek repayment of the initial grant.

    According to The Denver Post, Sykes told council members that the upcoming 2026 city budget doesn’t account for federal grant money that has been canceled or may be canceled. But the city won’t feel the hit for a while, as it wasn’t expecting the federal reimbursement for several years, city spokesperson Jon Ewing told The Post.

    In a letter to the city, FEMA administrator Cameron Hamilton said Denver’s program was at odds with Trump’s view that federal money shouldn’t support programs tied to encouraging or facilitating illegal immigration.

    “Grant programs that support, or have the potential to support, illegal immigration through funding illegal activities or support for illegal aliens that is not consistent with DHS’s enforcement focus do not effectuate the agency’s current priorities,” the letter read.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Trump’s crackdown on sanctuary cities

    Denver is the latest city caught in the crossfire of Trump’s campaign against sanctuary cities that limit their cooperation with federal immigration enforcement. The administration has repeatedly threatened and, in several cases, already pulled significant funding from major cities across the country.

    New York City recently faced a similar blow, losing $188 million previously allocated to its migrant support programs, according to CBS News. The administration’s stark message is clear: Cities that openly defy strict immigration policies should expect to hear from FEMA.

    Earlier this year, President Trump signed sweeping executive orders aimed explicitly at clamping down on sanctuary policies.

    These orders include financial penalties, aggressive enforcement of deportation protocols and substantial funding cuts for non-compliant cities. Trump’s strategy, critics say, puts city budgets nationwide in peril, risking vital public services that extend well beyond immigration support.

    Federal courts have already blocked some attempts to withhold funds from 16 cities, including Minneapolis, Portland and San Francisco, citing constitutional limits on the executive branch’s authority to impose new grant conditions without congressional approval.

    That means the actual impact on city budgets remains uncertain and will likely be determined through ongoing legal battles.

    How Denver’s budget crunch could hit residents

    Denver’s total budget for 2025 is about $4.4 billion, down 2.5% from the year prior. But since the city wasn’t expecting to receive the full federal allotment for several years anyway, FEMA’s move doesn’t exactly spell a budget crisis — yet.

    However, if Denver pushes forward with its migrant support, the money will need to come from somewhere — so it’s conceivable other parts of the city budget could suffer.

    The sudden funding withdrawal could become more than politics. As city officials consider whether to mitigate the loss of the FEMA money, residents may wonder how deep the hole is — and how much they may end up paying for a battle fought at the federal level.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • What is MEI? It’s the ‘new corporate rage’ as DEI dies, says a Harvard economist — but surveys show the majority of Americans still support DEI

    What is MEI? It’s the ‘new corporate rage’ as DEI dies, says a Harvard economist — but surveys show the majority of Americans still support DEI

    If you’ve been following the plans of the Trump administration, you’ve likely heard a lot about DEI – diversity, equity, and inclusion.

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    DEI programs focus on ensuring fair treatment and equal participation for everyone, particularly targeting biases against marginalized groups in workplaces, college campuses, and organizations. But the Trump administration wants DEI gone, labeling DEI government programs “radical” and “wasteful.”

    Tesla CEO Elon Musk’s Department of Government Efficiency (DOGE) has regularly used the term in its updates about "wasteful" contracts and grants it has cancelled. The federal government recently froze grants for Harvard when the university refused to eliminate DEI programs and obey other orders.

    Now, there’s a new acronym grabbing attention – MEI, short for merit, excellence, and intelligence. Harvard economist Roland Fryer dubbed MEI "the new corporate rage" in a recent op-ed for The Wall Street Journal.

    So is MEI writing DEI’s obituary?

    What exactly is MEI?

    MEI advocates for hiring candidates strictly based on merit, excluding factors like race, gender, age, or ethnicity from the equation. Fryer describes this shift as "refreshing," and supporters argue the approach naturally fosters diversity because the best talent inherently includes diverse backgrounds and perspectives.

    Scale AI CEO Alexandr Wang, who coined the term, explained on his blog that “a hiring process based on merit will naturally yield a variety of backgrounds, perspectives, and ideas.”

    Elon Musk, another prominent MEI supporter, has been notably blunt about his opposition to DEI, tweeting provocatively that “DEI means people DIE.” In response to Wang’s announcement about the MEI hiring policy at Scale, Musk simply tweeted, “great!”

    MEI supporters argue that focusing purely on merit is a return to traditional American values like work ethic and individual achievement.

    However, critics such as Adia Wingfield, a professor at Washington University in St. Louis, counter that the meritocratic past referenced by MEI proponents never truly existed. Historically, women and people of color faced significant barriers preventing equal workplace opportunities.

    According to Wingfield and other experts, DEI initiatives are exactly what’s needed to create a genuine meritocracy. As Wingfield explained to Fortune magazine, “The idea is to move away from a very non-meritocratic past into a future where everyone really does have opportunities.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Is DEI really on its way out?

    Despite aggressive moves by the Trump administration and some business leaders to dismantle DEI departments and even remove the word “diversity” from company websites, national sentiment toward DEI remains surprisingly resilient.

    A CivicScience study published in February shows that 63% of Americans still support or feel neutral about DEI efforts. Furthermore, 75% remain concerned about income inequality, suggesting continued public support for initiatives bridging socioeconomic gaps. In its report, Morning Consult said broad support for DEI is still high, with the majority of U.S. adults against decreasing the funding and influence of such programs, but the "often negative messaging originating from the president’s office around diversity and inclusion is working — there are early signs that support for pullbacks is growing."

    Surveys from CultureCon and CNBC have shown most employers and entrepreneurs also still support DEI.

    While corporations like Target and Google might indicate DEI’s demise, many major companies aren’t ready to abandon their programs. Costco and Apple, for instance, are standing firm on diversity initiatives, with shareholders even rejecting anti-DEI proposals from conservative think tanks.

    Brands like Ben & Jerry’s have been particularly outspoken. The ice cream maker boldly declared, “Companies that timidly bow to the current political climate by attempting to turn back the clock will become increasingly uncompetitive in the marketplace.”

    Even Target’s CEO recently met with Rev. Al Sharpton amid a backlash and boycott that is said to have hurt foot traffic.

    DEI behind the scenes

    Even businesses scaling back public DEI messaging aren’t necessarily stopping their internal diversity efforts altogether – they may just be keeping a lower profile. According to Amira Barger, a DEI executive and communications professor at California State University, East Bay, companies might avoid public attention yet continue quietly promoting inclusion.

    “I do think we will continue to see companies be less vocal, but I think people should take a pause and really ask more questions, because I do think many of these companies are still quietly doing the work behind the scenes,” Barger told CNBC.

    Businesses may recognize tangible benefits of DEI initiatives beyond just optics or compliance. Moreover, advocates say DEI is essential for employee morale and productivity. Economic consulting firm Berkshire highlights that robust DEI programs lead to improved employee retention and collaboration and make workplaces more innovative and responsive to customer needs.

    While the political landscape might challenge DEI’s visibility, its persistence in the workplace in the face of stiff political opposition suggests many organizations aren’t willing to let it go.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • This Illinois homeowner got back $1,200, slashed heating bill by 50% with 1 popular tax credit — but ‘there is a risk’ it will go away soon. Are you using it now?

    This Illinois homeowner got back $1,200, slashed heating bill by 50% with 1 popular tax credit — but ‘there is a risk’ it will go away soon. Are you using it now?

    As homeowners, we’ve all likely been hit with a crazy high utility bill during peak winter and summer. In fact, U.S. households recently faced average natural gas bills of $602 per month during the past winter.

    You can cut those costs by retrofitting your home with efficient upgrades, like adding insulation, sealing gaps and heat pump water boilers. Fortunately, a federal tax credit might help offset those expenses.

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    That’s exactly what worked for Megan Moritz, a Chicago homeowner who recently received a tax break after upgrading her home for better energy efficiency. After purchasing her 1930s dream home, she soon learned it came with all the 1930s-era insulation problems.

    Moritz spent around $5,700 on retrofits and saw a big payoff: a much warmer house and a heating bill slashed in half. “The biggest perk to me, honestly, was not freezing my butt off,” Moritz told CNBC. “Then it was the monthly bill going down as much as it did.”

    Even better, she was able to claim those expenses on her taxes, which gave her a $1,200 credit. That financial relief made the investment even more worthwhile.

    This tax break — called the Energy Efficient Home Improvement Credit — is used by millions of homeowners to insulate drafty homes or upgrade to energy-efficient appliances. It’s a part of a broader push to cut greenhouse gas emissions and prevent another 1970s-style energy crisis. While upfront costs can be a barrier, the credit helps by covering up to 30% of the cost of eligible projects.

    Is the rebate here to stay?

    The extremely popular tax credit, which American homeowners claimed $8.4 billion of in 2023, has been extended through 2032 by the Biden administration’s Inflation Reduction Act. But for those planning future upgrades, its lifespan may be threatened by the Trump administration, which has pledged to cut IRA spending.

    As Republicans search for ways to fund a $4 trillion tax cut package, the home improvement credit could be at risk. Freezing IRA funds was one of Trump’s first executive orders for this presidency.

    “There is a risk in the current budget bill that these credits would be changed or go away completely,” said Haas Energy Institute economist Lucas Davis, who has written on the history and use of the energy credit.

    A group of congressional Republicans is siding with Democrats to keep the credit alive. With slim margins of Democrats to Republicans in both the House and Senate, it may still have a fighting chance.

    If the federal tax credit does get slashed, check whether your state or local government offers energy rebates. The Department of Energy provides a rebate search tool, and the NC Clean Energy Technology Center maintains an online database of state energy incentives.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Retrofitting your home

    Whether or not you’re able to get the energy tax credit, making energy-efficient upgrades to your home is good for the environment and your wallet.

    If you’re like Moritz and live in a house that’s nearly 100 years old, there are several ways to improve energy efficiency without compromising its historic charm.

    Insulation: Attic insulation is often a high-priority, yet cost-efficient upgrade for older homes. It can lower heating and cooling costs by 15%, and it’s generally easier and more affordable to install than wall or floor insulation.

    Upgrade your furnace or boiler: In older homes, the heating system may also be outdated. Replacing it with a 95% efficiency model could save you up to $525 per year. You might also save $300-800 annually on parts, repair and boiler maintenance by upgrading to a newer system.

    Start small: If big-ticket improvements aren’t in your budget right now, start with low-cost changes — like switching to LED lighting, gradually upgrading to ENERGY STAR appliances and using power strips to reduce phantom energy use when electronics are idle.

    Energy audits: Many utility companies and local governments offer free or discounted energy audits. These professional evaluations help identify areas of energy waste and provide a plan for increasing efficiency.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘Republicans now hate us in California more than ever’: Is California’s dreaming of secession legit or is the state just fed up with federal government?

    ‘Republicans now hate us in California more than ever’: Is California’s dreaming of secession legit or is the state just fed up with federal government?

    Are you an American planning to stay at the Hotel California? Well, bring your alibis — and maybe your passport too.

    For the third time, supporters of what’s known as “CalExit” are attempting to get a measure on the ballot that asks California voters a once unthinkable question: Should the state secede from the United States and become its own nation?

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    The question has failed twice before, but movement leader Marcus Ruiz Evans has managed to shepherd the initiative to the signature-collection phase. And he says he believes the third time might be the charm.

    His reasoning? The current presidential administration and American Republicans “hate” California.

    “Republicans now hate us in California more than ever. The hate was palpable in 2016. But now it’s palpable and focused,” Evans told the San Francisco Standard. Between the state’s severe political divide with the current administration and President Trump’s response to the devastating wildfires in January, Evans says Californians are fed up.

    So, as Billy Joel rues in his eponymous song, is it really time for America to “say goodbye to Hollywood”?

    How could CalExit happen?

    Secession appears highly unlikely. The legal and political hurdles would be immense. But does that mean CalExit has no shot at all?

    Secession attempts have happened before — the most famous being the Confederate States during the Civil War and Texas’s bid to break away, both in the 1800s. Both were declared illegal.

    Still, while the idea sounds extreme, 61% of Californians say the state would actually be “better off” if it seceded peacefully, according to the January 2025 Independent California Poll from YouGov. At the same time, 62% of respondents said they didn’t think a peaceful and legal break-up would be possible.

    The California Constitution says the state “is an inseparable part of the United States of America” and affirms that the U.S. Constitution is the supreme law of the land. Notably, the U.S. Constitution neither grants nor explicitly prohibits states from seceding — an omission that has fueled debates since the 19th century over whether secession is an inherent state right.

    Evans faces an uphill battle to get the question on the 2028 ballot. He needs at least 545,000 valid signatures by July. Even if he gets them, bigger hurdles await: If 55% of voters approve the initiative, a commission would be formed to analyze whether California could function as an independent nation.

    Key questions for the commission:

    • Could it govern itself?
    • Could it sustain its own economy?

    Even if the commission said yes, the debate wouldn’t end there. The federal government isn’t obligated to honor the results or recommendations. A legitimate path to secession would likely require a constitutional amendment — meaning approval by Congress and 38 states.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Could CalExit work?

    Let’s say the Golden State clears all the voting hurdles, survives a constitutional change and legally declares itself independent. Could it sustain itself?

    Consider California’s economic might: its $3.9 trillion GDP in 2023 places it among the top five economies in the world. The state is home to global tech giants like Apple and Google, vast agricultural operations and it’s chock full of more Fortune 500 companies than any other US state.

    On top of all that, California controls the entire Pacific coastline, giving it access to vital trading ports. And, of course, there’s the entertainment behemoth that is Hollywood.

    Still, the state would face major adjustments. It would need to establish new trade agreements and tariffs to keep global imports and exports flowing. Businesses might experience supply chain disruptions and the loss of federal subsidies. (Would President Trump slap tariffs on a newly seceded California?)

    The state would have to establish its own military, build new diplomatic ties and govern a population of 39 million people speaking hundreds of languages and practicing religions and cultural traditions.

    A new California Republic is unlikely — but the idea is clearly on many people’s minds. Is it more than just California Dreaming? Time will tell.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • A staggering 70% of US households can’t afford a $400K home. What this ‘critical challenge’ means for the housing market — and how you can give yourself a head start

    Buying a home has traditionally been one of the clearest markers of financial stability, but for a staggering 94 million households, even that basic milestone is slipping out of reach.

    New data reveals that an astonishing number of American households simply cannot afford the median home price, which now hovers around $400,000 in 2025 — highlighting an affordability crisis that’s gripping the nation.

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    So what does this stark statistic really say about the state of our economy, and how can potential homebuyers realistically enter an increasingly inaccessible market?

    America’s grim housing reality

    The National Association of Home Builders’ (NAHB) recent affordability pyramid analysis found 94 million households in the U.S. — roughly 70% of all households — can’t afford to purchase a home priced at $400,000. This means the majority of the population finds itself priced out of even a "typical" home.

    “As home prices increase, fewer and fewer households can afford the next price level, with the highest-priced homes — those over $2 million — having the smallest number of potential buyers,” said Na Zhao, a principal economist at NAHB. “Housing affordability remains a critical challenge for households with income at the lower end of the spectrum.”

    But let’s dive deeper: to comfortably afford a $400,000 home, a household typically needs an annual income of about $110,000, assuming a standard mortgage interest rate around 6% and a down payment of 10%.

    Even homes priced significantly lower, around the $200,000 mark, require a household income of roughly $61,000. Yet about 53 million households in America still don’t meet this modest income requirement.

    For those who want their own home, the American dream is morphing into a nightmare of perpetual renting and financial instability for tens of millions of citizens.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    What does it say about housing affordability?

    Homeownership, traditionally the primary wealth-building vehicle for American families, is becoming an exclusive club, accessible only to higher-income households.

    Skyrocketing home prices driven by severe inventory shortages and sustained high demand have left average families scrambling to find housing they can afford. Moreover, higher mortgage rates compound the affordability challenge, adding hundreds of dollars to monthly payments.

    This situation perpetuates cycles of economic inequality: the wealthy gain equity and stability, while others struggle with escalating rent and financial insecurity.

    With millions unable to achieve homeownership, long-term financial stability becomes a distant dream, undermining retirement savings, wealth accumulation and generational financial security.

    Three practical steps to breaking into the housing market

    Despite these grim statistics, buying a home isn’t impossible — it just requires discipline, strategy and realistic expectations. Here are three steps potential homebuyers can take today.

    Master your budget

    Step one to homeownership begins with a disciplined budget. Know exactly where every dollar goes each month. Reducing unnecessary spending frees up money you can redirect toward savings. Track spending, cut subscriptions you rarely use and eliminate impulse buys. Even small savings can significantly impact your financial readiness over time.

    Calculate your down payment wisely

    A common misconception is that buyers need a hefty 20% down payment. While this amount helps avoid private mortgage insurance (PMI), it isn’t a necessity. Federal Housing Administration (FHA) loans allow for down payments as low as 3.5%, and conventional mortgages can be secured with as little as 5%.

    Determine how much home you can afford, calculate your down payment and start setting aside those funds diligently. Remember, lower down payments will increase your monthly costs slightly due to PMI, but getting into the market sooner might outweigh the extra expense.

    Understand local market costs

    National averages don’t always tell the whole story, as prices vary widely by location. Research and understand your local housing market dynamics. Online platforms and local realtors can help gauge the realistic cost of homes in your desired area. Knowing local prices helps set achievable targets for saving and borrowing.

    Moreover, consider locations slightly outside major metropolitan areas. Suburbs and smaller towns often provide more affordable options, allowing you to gain equity and financial footing, even if it means a longer commute or lifestyle adjustments.

    The housing affordability crisis won’t vanish overnight. Addressing this issue demands collective effort — from policy changes that boost affordable housing development to individual financial literacy improvements. By taking practical and informed steps, would-be buyers can reclaim a piece of the American dream, despite the odds.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Donald Trump’s new housing chief launches major shakeup at Fannie Mae and Freddie Mac — here’s what it could mean for your mortgage

    Donald Trump’s new housing chief launches major shakeup at Fannie Mae and Freddie Mac — here’s what it could mean for your mortgage

    President Donald Trump‘s newly appointed housing chief has made waves by launching a dramatic shakeup at mortgage giants Fannie Mae and Freddie Mac, potentially reshaping America’s mortgage market.

    William Pulte, a private equity executive whose family founded one of the country’s largest homebuilding companies, took charge of the Federal Housing Finance Agency (FHFA) on March 13. The regulator is responsible for overseeing both Fannie Mae and Freddie Mac. Pulte wasted no time in executing a dramatic purge of leadership at both mortgage giants.

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    According to multiple reports, a number of board members across Fannie Mae and Freddie Mac were swiftly replaced, with Pulte installing himself as chairman of both entities. Freddie Mac’s CEO Diana Reid, a long-serving executive, was also removed — sending a clear message about the scope and seriousness of this transformation.

    So, what do these abrupt changes signal for the housing market and the mortgages of millions of American homeowners?

    Privatization speculation

    Pulte’s bold moves have ignited speculation the Trump administration is pushing to privatize Fannie Mae and Freddie Mac. Both are government-sponsored entities (GSEs) and have been under federal conservatorship since the 2008 financial crisis in which they were bailed out. Together, the companies back 70% of the mortgage market, according to The New York Times. Skeptics believe privatization would make buying a home more expensive in the midst of a housing affordability crisis.

    “It would mean that mortgage rates would increase — definitely,” Laurie Goodman, founder of the Housing Finance Policy Center at the Urban Institute, a think tank in Washington, D.C., said to the news publication.

    Meanwhile, privatization could be a boon for both investors and the federal government. Depending on the structure of the deal, privatizing could generate billions of dollars in revenue for an administration that’s focused on cutting down wasteful spending across the board. Placing these companies in private hands would also free the government from potential future bailout obligations.

    For his part, Pulte has struck a measured tone publicly. He told CNN that “it’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Impact on the housing market

    Why do critics think privatizing these entities would increase borrowing rates? Fannie Mae and Freddie Mac don’t directly issue mortgages — rather they buy mortgages from lenders and package them for investors as securities. This maintains cash flow within the mortgage industry, allowing lenders to offer stable, affordable rates, experts say.

    But if the federal government no longer backs these entities, their safety net goes with it.

    “When the government is backing an entity’s products and services, it helps to reduce risk, especially in the generating of loans,” Alex Beene, financial literacy instructor for the University of Tennessee at Martin, told Newsweek. “Removing it opens the door to higher interest rates for those looking to buy or refinance. It could also lead to more restrictive policies in even getting a loan, as lenders react more cautiously to some buyers.”

    Increased rates could affect affordability, particularly for first-time buyers or those with modest incomes already stretched thin by soaring home prices.

    As for homeowners with existing mortgages may also be affected if they ever want to refinance their loan. It may be less likely you can reduce your monthly payments if you’re struggling to get by.

    The long-term impact of this housing shakeup remain uncertain, however, homebuyers and homeowners could serve themselves well by staying informed so they can navigate potential changes effectively.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘What we’re doing is very big’: Trump has said he won’t rule out a recession — here are 3 simple strategies to help keep your finances safe in a downturn

    ‘What we’re doing is very big’: Trump has said he won’t rule out a recession — here are 3 simple strategies to help keep your finances safe in a downturn

    Sometimes what leaders don’t say speaks the loudest. So, when U.S. President Donald Trump refused to rule out a recession amid a wave of price-increasing tariffs and stubborn inflation, it sent a clear message: economic pain might be part of the plan whether America wants it or not.

    When Trump sat for an interview with Fox News in March and refused to rule out a recession, his answer — coupled with his Cabinet’s insistence that short-term pain could be worth it in the long run — it sparked fresh anxiety among consumers and economists already bracing for impact.

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    “I hate to predict things like that,” Trump said when asked by Fox host Maria Bartiromo about a recession in a March interview. “There is a period of transition because what we’re doing is very big. We’re bringing wealth back to America. That’s a big thing … it takes a little time, but I think it should be great for us."

    Cabinet members have echoed their boss, arguing that short-term economic pain caused by tariffs on international imports and slashing federal spending would create long-term gains.

    That framing has hit a nerve. After all, recessions are more than abstract economic concepts: They mean job losses, tightened budgets and financial stress for millions. Here’s how to protect yourself.

    Below the surface of Trump’s words

    The backdrop to these remarks is crucial. Persistent inflation has consumers facing price hikes at grocery stores and retail shops, and housing affordability remains a challenge. Trump and his team argue that aggressive fiscal changes — including cutting federal programs and taking a hard line on trade via tariffs — are necessary corrections.

    Suggestions of short-term collateral damage have unnerved many economists, who worry that Trump’s tariffs will elevate inflation, stunt growth and increase recession risks. Goldman Sachs raised its recession probability to 45% in April, citing tariffs as a significant factor.

    Deep cuts to government spending is already reducing economic activity and has cost tens of thousands of federal workers their jobs. Broad tariffs are expected to significantly increase the prices of imported goods on everything from electronics to cars, hitting consumers and businesses alike.

    Still, regardless of whether Trump’s policies result in a recession, proactively recession-proofing your finances is prudent. Here are three straightforward strategies to fortify your financial health against an extended downturn.

    Diversify your investments — smartly

    If recession fears become reality, diversified investments can shield your savings from significant losses. Rather than placing all your financial eggs into one basket, consider spreading your assets across multiple investment types:

    Dividend-paying stocks: Companies that reliably pay dividends — especially in stable sectors like health care, consumer staples and utilities — typically perform better during economic downturns.

    Bonds: Treasury and investment-grade corporate bonds offer steady returns and reduced volatility compared to stocks, providing crucial financial stability during turbulent times.

    Real estate: Historically, real estate investments — especially rental properties — often weather recessions well, providing both appreciation potential and steady rental income.

    The key here is not just diversification, but intentional diversification toward assets known for resilience in uncertain economic climates. You may want to consult with a financial advisor to calibrate your portfolio to your risk tolerance and financial goals.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Trim non-essential spending and build savings

    In booming economies, it’s easy to overlook how quickly unnecessary expenses add up. When recession risks loom, now is the time to ruthlessly assess your spending habits:

    Audit your budget: Go line by line and identify subscriptions, services or discretionary purchases you can either downgrade or eliminate entirely.

    Boost emergency savings: Aim to build a safety net of three to six months’ living expenses. Cash reserves offer a vital buffer, keeping you afloat if your income is reduced or interrupted during a recession.

    By proactively cutting non-essential spending, you create flexibility in your monthly budget, positioning yourself to weather economic shocks with greater confidence.

    Prioritize paying down high-interest debt

    High-interest debt can become crushing when economic conditions tighten. As borrowing rates spike during a recession, carrying significant debt can rapidly spiral out of control. Therefore, prioritizing debt repayment now is a critical protective step:

    Target credit card balances first: These typically carry the highest interest rates, draining significant portions of your income. Implement strategies like the “avalanche method,” paying down debts starting with the highest interest rates.

    Refinance wisely: If possible, consider refinancing high-interest loans into lower-interest options, reducing your monthly payments and overall debt burden. But act quickly — refinancing becomes harder and less favorable as recessions take hold.

    Proactively attacking debt not only saves significant money in interest payments but also boosts your financial resilience, giving you greater flexibility if economic hardship strikes.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Adidas warns US customers will soon pay more for its shoes as company runs up against Trump’s ‘tariff wall’ — joins 76 footwear brands pleading with the president to walk back tariffs

    Adidas warns US customers will soon pay more for its shoes as company runs up against Trump’s ‘tariff wall’ — joins 76 footwear brands pleading with the president to walk back tariffs

    A fresh pair of Adidas kicks might leave you light on your feet. Your wallet may feel the same.

    The German footwear giant, which makes the popular Samba, Stan Smiths and carbon-plated racing shoes setting running records across the globe, is warning customers that U.S. tariffs on imports from China and other Asian countries will drive the cost of its shoes higher.

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    Even as the company announced better-than-expected first quarter earnings, CEO Bjørn Gulden said Adidas will cost more in the U.S.

    “Although we had already reduced the China exports to the US to a minimum, we are somewhat exposed to those currently very high tariffs,” Gulden said. “What is even worse for us is the general increase in US tariffs from all other countries of origin.”

    He added that Adidas cannot currently make its shoes in the U.S.

    Adidas isn’t alone: Tariffs hit big brands everywhere

    Tariff headaches aren’t exclusive to Adidas, which co-signed a letter with bitter rival Nike and other shoe brands asking President Trump for a tariff exemption.

    “Many companies making affordable footwear for hardworking lower and middle-income families cannot absorb tariff rates this high, nor can they pass along these costs,” the letter stated.

    “Without immediate relief from the reciprocal tariffs they will simply shutter.”

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Like Adidas, other industry leaders are making public-facing announcements that they are raising their retail prices due to the Trump administration’s tariffs.

    Fashion-focused platforms Shein and Temu, which rely heavily on inexpensive Chinese imports, each posted statements on their websites about price hikes, directly citing increased operating costs from tariffs.

    President Trump introduced tariffs to push back against perceived unfair trade practices from China and other nations — and to encourage multinationals to set up factories in the U.S.

    “Bring your factory here,” Treasury Secretary Scott Bessent said in a recent interview with Tucker Carlson.

    “That’s the best solution for getting away from a tariff wall. So move your factory from China, from Mexico, from Vietnam – bring it here.”

    But critics say it will be nearly impossible for companies to produce goods in the U.S. as cheaply as overseas — so for now, businesses and consumers will continue to pay more for imports.

    Smart moves for savvy shoppers

    With the looming reality of higher prices across multiple product categories, consumers should consider getting proactive about budgeting. Here are some ways to do that.

    1. Cut unnecessary expenses. Review subscriptions (streaming services, gym memberships, unused apps) and cancel anything non-essential. Small trims add up quickly, providing breathing room for unavoidable price hikes.

    2. Shop smarter. Like most footwear brands, Adidas or Nike discount older models to clear inventory. Some brands, like New Balance, have a dedicated used shoe store online where buyers can get gently used models at much lower prices.

    3. Buy local. You can bypass tariff trouble with locally sourced products and as a bonus, support your local economy. Visit farmers markets, boutique shops and local artisans frequently offer competitive pricing without import tariffs eating into the final cost.

    4. Keep an eye on tariff-impacted goods. Follow news about tariffs and if possible, delay big-ticket purchases until prices stabilize. For essentials, look into alternative or generic brands that deliver similar quality at a lower cost.

    5. Leverage technology to stay ahead. Use price-tracking apps and browser extensions to spot deals and compare prices across online retailers. Alerts for price drops can help you pounce on savings, providing additional cushioning in your monthly budget.

    Adidas’ warning is just one example of how economic policy decisions ripple through your daily spending. Staying informed, shopping smarter and adjusting your habits can help mitigate some of the pain — and maybe even uncover new ways to stretch your dollars further.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • I invest in my 401(k) every month without fail — but I’m starting to get really worried about a recession. Would it be a mistake to start hoarding my cash instead?

    I invest in my 401(k) every month without fail — but I’m starting to get really worried about a recession. Would it be a mistake to start hoarding my cash instead?

    The economy is top of mind for just about everyone right now — and if you’re bracing for a possible recession, you’re far from alone. Economists are raising their forecasts, saying there’s a nearly 50% chance of the U.S. entering a recession in 2025.

    Don’t miss

    If you or your spouse lose your jobs, you’ll could be in for a financial shock.

    It sounds like you’re thinking about beefing up your emergency fund fast and hitting pause on your 401(k) contributions. So, what’s the smart move?

    Emergency savings and 401(k)

    Both an emergency fund and a 401(k) are essential parts of a strong financial plan. One secures your future, the other protects your present.

    Your first priority should be building a big enough emergency fund. It’s your financial parachute when life throws you a curveball: a job loss, a medical bill or a major home repair. Without it, you might be forced to lean on credit cards or payday loans to stay afloat.

    Most experts recommend saving at least 3-6 months’ worth of essential expenses in a liquid, high-yield savings account. That way, the money’s there when you need it, without penalties or delays.

    Once you have this cushion and you’ve paid off any expensive debt, you can turn your focus to investing. Your 401(k) is a powerful tool for long-term wealth, especially when you factor in tax advantages and employer matching. Experts recommend putting at least 15% of your pretax income, including employer contributions, toward retirement every year.

    Stopping contributions at any age can be costly but especially if you have a long investment horizon. Say you start contributing $6,000 a year at age 30 and retire at 67. With a 7% annual return, you’re looking at nearly $1.1 million before any employer contributions. Add those in, and you would be looking at a very healthy retirement nest egg.

    Contributing during downturns as well lets you buy low and potentially reap bigger rewards when the market rebounds. And if you stop entirely, you also lose out on any employer match — which is essentially free money left on the table.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    How to find a balance and supersize your emergency fund

    You may decide that your income during a recession will be irregular, and a 3-6 months emergency fund won’t cut it. Maybe you’re in a stable industry like health care, but your spouse works in real estate — a sector that can wobble when the economy dips.

    Personal finance guru Ramit Sethi recently recommended people build a 12-month emergency fund he calls a “war chest.” But he didn’t say you should stop investing to do it.

    “That means cutting discretionary spending now, before the world forces you to,” he said in an Instagram video. Before you cut into retirement contributions, look for easier budget wins: Cancel unused streaming services, rein in food delivery, or hit pause on nonessential subscriptions.

    Speak to a financial advisor about the best approach for you, but here’s a simple strategy you can consider adopting: Once you build a 3-6 months emergency fund, keep contributing enough to your 401(k) to capture your employer’s full match. That’s your bare minimum. Anything beyond that? Consider redirecting it toward emergency savings, at least until you hit your goal.

    Once your emergency fund is big enough to help you sleep better at night, ramp those 401(k) contributions back up. Because the best financial plans don’t sacrifice long-term security for short-term panic — they find a way to support both.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • 401(k) investors are fleeing US stocks, target-date funds and putting their money in these 3 places. Should you follow the crowd?

    401(k) investors are fleeing US stocks, target-date funds and putting their money in these 3 places. Should you follow the crowd?

    The U.S. stock market has always been a rollercoaster, but on some days lately, the ride has felt more like a freefall — and many retirement investors are panicking.

    Don’t miss

    March 2025 marked the busiest month for 401(k) trading activity since the early COVID-19 market crash in October 2020, according to Alight Solutions. Nearly half the days saw above-normal trading. The trigger? Possibly a perfect storm of market volatility, high interest rates, and political uncertainty tied to President Trump’s latest economic policies.

    Faced with flashing red numbers on their screens, many 401(k) participants are yanking their money out of stocks and rushing toward what they hope are safer havens. But while the urge to protect your nest egg is understandable, following these jittery retirement savers might just set you up for even bigger losses later on.

    Where 401(k) investors are moving their money

    According to the latest Alight 401(k) Index, the flows were unmistakable. Outflows were primarily from U.S. large-cap stock funds and target-date retirement funds, typically the backbone of long-term portfolios. Meanwhile, inflows mainly surged into stable value funds, bond funds, and money market funds.

    Stable value funds were the biggest winners, pulling in about 40% of the month’s trading inflows. Offered only in retirement plans, these funds contain high-quality short- to intermediate-term bonds and are designed with insurance wrap contracts to protect both principal and accumulated interest. This means upon withdrawal participants are guaranteed both even if the bonds in the fund declined in value.

    It’s essentially the financial equivalent of crawling under the covers during a thunderstorm. “It can be a good risk mitigator if you have already built your nest egg and you’re trying to maintain it,” said Jania Stout, president of Prime Capital Retirement & Wellness, to CNBC about these assets.

    Younger investors are new to giant market swings and might panic, causing higher trading activity, Alight analyst Rob Austin told the National Association of Plan Advisors. “It’s the first time they see their 401(k)s decline. They pull it out to put it into something safe. Unfortunately, though, they did it now when stocks have already gone down, which is what we typically see. People don’t get back into equities until after they’ve rebounded. So, it’s buying high and selling low. That’s really what’s happening.”

    It’s easy to see why. After years of steady gains, recent market shakiness can be alarming. Retirement accounts that once seemed untouchable are suddenly shrinking, and the idea of “waiting it out” feels a lot harder when it’s your future on the line.

    But in the rush for safety, many investors risk making a classic mistake: reacting emotionally and moving money to low-risk fixed income assets instead of thinking strategically.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    The hidden risks of abandoning stocks

    When markets get rocky, the gut reaction is simple: Get out before things get worse. But history is pretty clear about the risks of trying to time the market.

    Investors who flee stocks during downturns don’t just miss the worst days. They also often miss the best recovery days, those sudden rebounds that recoup losses and build long-term wealth. And missing even a few of those key days can kneecap your returns for years, if not decades.

    Consider this: If you missed the 10 best days in the market over the 20 years from Jan. 3, 2005 to Dec. 31, 2024, your returns would have been almost cut in half compared to a fully invested portfolio, according to J.P. Morgan Asset Management data cited by CNBC.

    Timing the market requires being right twice: once when you sell and once when you buy back in. And very few investors, professional or amateur, manage to pull it off consistently.

    Stable value funds have their place, especially for investors who are near retirement and can’t afford major losses. But for anyone with more than five years until retirement, pulling too much out of stocks can actually increase the risk that you’ll run out of money later on.

    “Don’t be fooled by investment risk and not consider inflation risk,” Austin said to CNBC. “You might not see your account value go down, but inflation continues to be high: Will you outpace that enough to keep your portfolio growing?”

    Stocks, despite their volatility, have historically been the best way to outpace inflation and grow wealth over long periods. Giving up that growth potential too soon could mean smaller retirement income, fewer lifestyle choices, and a much harder road ahead.

    A popular rule of thumb says you should subtract your age from 110 to know how much of your portfolio should be in equities. Speak to your financial advisor about the right asset allocation for your age and financial goals.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.