President Trump Delivers 2026 State of the Union

President Donald Trump delivered the first State of the Union (SOTU) address of his second term on Feb. 24. It marked the first SOTU delivered during a partial government shutdown, as funding for the Department of Homeland Security (DHS) lapsed on Feb. 14. At an hour and 47 minutes, it was the longest joint address in modern times.

President Trump declared that the United States is entering a “Golden Age” as it celebrates its 250th anniversary. He contrasted his administration’s first year with what he described as a period of weak economic performance, high inflation and rising costs under former President Joe Biden. He highlighted actions taken to secure the border, conduct mass deportations, phase out DEI programs, reduce reliance on food assistance and boost U.S. energy production; collectively, the president said these contributed to record‑breaking market performance over the past year.

He repeatedly emphasized law and order, calling for the arrest of violent repeat offenders, praising his deployment of the National Guard and noting falling crime rates in major cities. Trump highlighted major tax provisions in the One Big Beautiful Bill Act (OBBBA)—including eliminating taxes on tips, overtime and Social Security income—and touted foreign‑policy achievements, such as ending eight wars, advancing a ceasefire in the Russia-Ukraine war and increasing investments in the military.

Trump pledged to replace the Affordable Care Act, reduce prescription drug prices, strengthen protections for homeowners, ban gender‑affirming care, renew the country’s religious foundations, reduce energy costs and pass the SAVE America Act (S.1383). He also announced the administration’s “War on Fraud,” which will be led by Vice President JD Vance. The SOTU followed the Supreme Court’s recent decision invalidating the use of the International Emergency Economic Powers Act to impose tariffs; Trump criticized the court’s decision and reiterated that he will impose tariffs under alternative legal authorities. He credited tariffs with driving economic growth and strengthening national security.

Special guests featured heavily throughout the speech, beginning with the gold medal-winning U.S. Men’s Hockey Team. Trump also spotlighted crime victims and their families, veterans, recipients of various programs created or changed during the past year, Erika Kirk, and political refugees from Venezuela, among many others. He also directed the presentation of several civilian and military honors, including the Presidential Medal of Freedom, two Congressional Medals of Honor and several Purple Hearts. Trump repeatedly criticized Democrats, blaming them for the DHS shutdown and for policies he said weakened the economy. Rep. Al Green (D‑TX) was removed from the chamber before the president began after displaying a protest sign, and Reps. Rashida Tlaib (D‑MI) and Ilhan Omar (D‑MN) briefly spoke out during the immigration section of the remarks. Many Democrats chose not to attend the event, while others wore pins calling for the full release of the Epstein files.

Newly elected Virginia Gov. Abigail Spanberger, a former member of Congress, delivered the Democratic response to Trump’s address. In her 13‑minute speech, she drew a sharp contrast with Trump’s portrayal of the economy, focusing heavily on affordability challenges facing American families. She questioned whether Americans are truly better off under President Trump, arguing that his policies primarily serve to benefit himself, his family and his close allies. Sen. Alex Padilla (D-CA) provided an additional Democratic response in Spanish that echoed similar themes.

As is typical with presidential addresses to Congress, the policies outlined in the president’s speech combined a mix of completed, achievable and aspirational goals. The key takeaways from the speech are detailed below. Please contact a member of the Brownstein policy team for additional information on any specific topic(s).

ECONOMY, INVESTMENTS AND HOUSING

• State of the Economy: Trump said the economy is performing strongly, arguing his administration inherited a severe downturn and record inflation from former President Biden. He noted more Americans are working than ever before, emphasizing that all recent job growth has come from the private sector and includes 70,000 new construction jobs. He said conditions have improved since he took office, citing inflation of 1.7% in the final three months of 2025, lower energy and consumer prices, low gas prices, stock market performance and rising retirement savings. He also pointed to more than $18 trillion in foreign investment commitments as further evidence of economic improvement.
• Housing: Trump highlighted his executive order (EO) restricting large institutional investors from purchasing single-family homes and called on Congress to codify the EO into law. He said mortgage rates are at a four-year low, and as mortgage rates continue to decrease, new home buyers will be able to afford homes and existing homeowners will not see their home values decrease.
• Savings, Retirement and Financial Policy Proposals: Trump announced that later this year his administration will advance a proposal for a federal match of up to $1,000 annually for retirement contributions. He also urged Congress to pass the Stop Insider Trading Act (H.R. 7008), which would restrict stock trading by members of Congress.
• OBBBA Tax and Retirement Highlights: Trump highlighted tax provisions from OBBBA, including the elimination of taxes on tips and overtime pay, a new deduction for auto loans and the expanded senior deduction.

HEALTH CARE

• Prescription Drug Costs: Trump said he is ending the “wildly inflated” cost of prescription drugs through his newly enacted Most Favored Nation (MFN) agreements; he called on Congress to codify the MFN drug pricing initiative into law. He said prescription drug prices for Americans, which have been historically high, will decrease to the lowest prices. He highlighted TrumpRx.gov, where he said price differences range from 300% to 600% and are available and consumers can compare options.
• Health Insurance: Trump criticized the Affordable Care Act (ACA), referring to it as the “unaffordable” care act, and argued insurance companies have profited since its passage. He highlighted his proposed “Great Health Care Plan,” which would end payments to large insurance companies and send those funds directly to individuals. He said the plan requires maximum price transparency and noted he implemented transparency policies during his first term that were later terminated. Trump reaffirmed his commitment to protect Medicare and Medicaid.

INTERNATIONAL AFFAIRS

• Conflict Resolution and Global Diplomacy: Trump said he has ended eight wars in the past year, including conflicts between Cambodia-Thailand, Pakistan-India, Kosovo-Serbia, Israel-Iran, Egypt-Ethiopia, Armenia-Azerbaijan, the Democratic Republic of the Congo-Rwanda and the Israel-Hamas war. Regarding the latter conflict, he said every hostage, both living and deceased, had been returned home. He noted that several of his peace efforts were made possible through leverage created by tariff authority. He added that the administration is working to end a ninth conflict, the Russia-Ukraine war, where he said approximately 25,000 soldiers are dying each month.
• Iranian Regime: Trump reaffirmed the success of the June 2025 U.S. strikes on Iran under Operation Midnight Hammer, stating that they degraded Iran’s nuclear weapons program. He said the Iranian regime has killed at least 32,000 protesters domestically and claimed that additional killings were prevented through administration engagement with the regime. He added that Iran has developed missiles capable of threatening Europe and U.S. bases overseas and may soon possess missiles capable of reaching the U.S. mainland. He claimed Iran is attempting to restart its nuclear weapons program and stated that, while negotiations are ongoing, the regime has not committed to never acquiring a nuclear weapon. He reiterated that his preference is a diplomatic resolution but said he would not allow Iran to obtain a nuclear weapon.
• Defense Spending and Military Readiness: Trump said the administration will continue rebuilding the military and noted that he recently signed a $1 trillion defense budget. He said he pressured NATO allies to commit to increasing defense spending to 5% of GDP, up from 2%. He added that each branch of the military is setting recruitment records and that service members recently received a $1,776 dividend.
• Western Hemisphere Security: Trump said the administration is restoring security and asserting U.S. dominance in the Western Hemisphere, including by designating Mexican drug cartels as Foreign Terrorist Organizations (FTOs). He mentioned that the United States had taken down a major Mexican cartel leader and that U.S. special operations conducted a January 2026 mission in Venezuela to remove Venezuelan leader Nicolás Maduro from power. Trump said the United States has received more than 80 billion barrels of oil from Venezuela, which he described as a friend and partner. He added that the administration is working with Delcy Rodríguez to promote economic prosperity in Venezuela and secure the release of political prisoners.

IMMIGRATION

• Illegal Immigration: Trump said the United States currently has the strongest border in its history, noting that over the past nine months, zero illegal aliens have been admitted into the country. He blamed the Biden administration for record levels of illegal immigration. He emphasized the need to eliminate sanctuary cities and impose meaningful penalties on public officials who obstruct the removal of individuals unlawfully present in the country. He also urged Congress to immediately prioritize and pass the SAVE America Act (S.1383), which would require all voters to present identification and proof of citizenship in order to cast a ballot, among other changes.
• Drug Trafficking and Crime Reduction: Trump said in the last year, fentanyl flows declined by a record 56% and the murder rate reached its lowest level in recorded U.S. history. He said illegal immigration permits the entry of individuals from countries where corruption is prevalent and leads to higher levels of crime and fraud in the United States. He called on Congress to pass the “Dalilah Law,” which would prohibit states from issuing commercial driver’s licenses to individuals who are in the country illegally.
• DHS Shutdown: Trump blamed congressional Democrats for blocking funding for the Department of Homeland Security, saying that the agency is responsible for protecting Americans from criminals and calling for the immediate restoration of funding for U.S. border and homeland security operations.
• Legal Immigration Pathways: Trump stated that the administration will continue to allow individuals who are willing to work and contribute to the country to enter legally.

TRADE

• Tariff Policies: Trump criticized the Supreme Court’s ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. He emphasized that tariffs will now be leveraged under alternative executive authorities that have been legally tested.
• Tariff Revenue: Trump said tariffs have generated billions of dollars in revenue for the United States, which will continue to increase. He emphasized foreign nations bear the cost of U.S. tariffs and suggested tariff revenue could eventually replace the income tax system, reducing Americans’ financial burden.
• Trade Agreements: Trump said his tariff policies allowed the United States to secure trade deals that enhance economic and national security. He said trading partners will honor these agreements despite the Supreme Court’s decision or otherwise face less favorable renegotiated terms.

EDUCATION

• OBBBA Provisions: Trump highlighted the expansion of the Child Tax Credit and the creation of new “Trump Accounts” for children, a tax-free investment account funded through a combination of federal and private contributions.
• Fraud Allegations: Trump raised concern about the $19 million in fraud uncovered in Minnesota and claimed that even larger instances of fraud exist in California, Massachusetts and Maine. He announced the launch of a new War on Fraud, led by Vice President Vance.
• Transgender Students: Trump called for a nationwide ban on gender-affirming care and specifically condemned school officials facilitating a student’s gender transition without parental consent, saying this is occurring in many states.
• Artificial Intelligence: Trump credited First Lady Melania Trump for championing artificial intelligence (AI)-related legislation and launching the Melania Trump Foster Youth to Independence Initiative. He noted students and teachers are participating in the First Lady’s Presidential AI Challenge to help prepare the next generation for an AI‑driven future.

ENERGY AND CLIMATE

• Data Centers and Energy Costs: Trump referenced concerns over rising electricity prices due to AI data centers. He announced that his administration recently negotiated a “rate payer protection pledge” with unspecified private companies, allowing them to generate power for projects by building their own power plants. He stated that this policy is intended to prevent increases in electricity prices for residential consumers.
• Domestic Oil Production: Trump said U.S. oil production has increased by more than 600,000 barrels a day since he returned to the White House, and the United States has received 80 million barrels of oil from Venezuela.
• Domestic Natural Gas Production: Trump said U.S. natural gas production is at an all-time high since the administration continues to “drill, baby, drill.”

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THIS DOCUMENT IS INTENDED TO PROVIDE YOU WITH GENERAL INFORMATION REGARDING THE CONTENT OF THE STATE OF THE UNION ADDRESS. THE CONTENTS OF THIS DOCUMENT ARE NOT INTENDED TO PROVIDE SPECIFIC LEGAL ADVICE. IF YOU HAVE ANY QUESTIONS ABOUT THE CONTENTS OF THIS DOCUMENT OR IF YOU NEED LEGAL ADVICE AS TO AN ISSUE, PLEASE CONTACT THE ATTORNEYS LISTED OR YOUR REGULAR BROWNSTEIN HYATT FARBER SCHRECK, LLP ATTORNEY. THIS COMMUNICATION MAY BE CONSIDERED ADVERTISING IN SOME JURISDICTIONS.