American families are paying the price of the Trump administration’s war in Iran
Photo: Getty Images
As the Trump administration’s war in Iran escalates, the economic consequences are mounting—not just in federal spending, but in the everyday costs facing American families. In a matter of weeks, the price tag has surged into the tens of billions, while ripple effects across global markets are already driving up borrowing costs at home.
By the end of this week, the war in Iran will likely have cost $25 billion, with the administration reportedly planning to request $200 billion to fund the conflict. That level of spending reflects a rapidly escalating financial commitment with huge trade-offs for the American people. That $25 billion could fund major investments in health care, education, and other public services. For example, the $25 billion cost of the war so far could pay for a year of free school lunch for nearly 30 million children. As costs continue to climb, policymakers face increasing pressure to weigh these expenditures against unmet needs at home.
The war is also driving up costs for American families by pushing mortgage rates higher. Since the end of February, average 30-year fixed mortgage rates have risen from 5.98 percent to 6.22 percent, reversing what had been a brief dip below 6 percent. This increase translates into paying an extra $63 per month, $756 per year, or $22,680 over the life of a typical loan for a first-time homebuyer. Rising inflation expectations tied to increased oil prices are putting upward pressure on interest rates for the 10-year Treasury note, which mortgage rates are benchmarked to. Without the war, mortgage rates were expected to remain below 6 percent, underscoring how the conflict is directly affecting housing affordability. As a result, higher borrowing costs are making it harder for working families to achieve homeownership.
WATCH NOW: Sen. Lisa Murkowski (R-AK) explains how the SAVE Act is bad for rural Americans
This week, the Senate continues debate on the SAVE America Act, a bill that would make it more difficult for millions of Americans to vote.
While President Donald Trump is urging Republicans to push this legislation through, Sen. Murkowski took to the Senate floor to show how the SAVE America Act would require Alaska citizens to travel hours—even take a plane or ferry—in order to exercise their constitutional right to vote:
When we raise our voices together in nonviolent protest, change is possible. History shows that when just 3.5 percent of a population—about 12 million Americans—engage in peaceful protest, their demands become nearly impossible to ignore.
Join a No Kings protest near you this Saturday, March 28.
RSVP: “The Flip Side of Affordability: Raising Wages Across the Country”
The federal minimum wage has been stuck at an unbelievably low $7.25 per hour since 2009. In the face of inaction by the federal government and a cost of living crisis, communities across the country are working to raise wages. They have taken different approaches, including ballot initiatives, state and city laws, and policies that apply to specific sectors and occupations.
Please join the Center for American Progress on Thursday, March 26, at 2 p.m. EDT for an online event featuring a keynote from Arin Dube, provost professor of economics at the University of Massachusetts Amherst and author of the forthcoming book, The Wage Standard: What’s Wrong in the Labor Market and How to Fix It, followed by an expert panel that will share strategies from across the country.
