Record Prosperity in 2025: U.S. Median Household Income Hits $86,000

A recent analysis shows that median household income in the United States reached an all-time high of over $86,000 annually during 2025.

This economic milestone follows a year marked by significant improvements across multiple indicators, including a rise in median family income after inflation by $1,250 and increases in incomes for the bottom 25% of households. The wealth of the average family in their 401(k) plans has grown by an average of $21,000, reversing a more than $20,000 real decline from the previous administration.

The federal budget deficit decreased by 2.5% in 2025 and has already fallen by $170 billion in the first two months of fiscal year 2026, despite implementing tax cuts. Over 400 intrusive regulations have been eliminated, including the repeal of racial quotas in hiring and the reversal of rules mandating electric vehicle purchases.

Crime rates in major cities declined significantly during the year, with gun assaults down by 21%, aggravated assaults down by 10%, sexual assaults down by 10%, and carjackings down by 24% compared to previous administrations. Illegal immigration has fallen by 92% from peak entry levels observed under the prior administration.

Gas prices have dropped to $2.89 per gallon, down from nearly $5 a gallon, while U.S. oil and gas production reached historic levels.

Stephen Moore, a former Trump senior economic adviser and co-founder of Unleash Prosperity, which advocates for education freedom for all children, has noted these achievements as evidence of the positive impact of policies implemented during President Trump’s first year.