Several just-released studies have found that the current economic decline, fueled by increasing prices, poses a significant threat to household necessities, including housing, utilities, and groceries - and could lead to business contraction and job losses. This growing risk is underlined by new data from United Way Worldwide, which provides support to 211, a critical and free service connecting people to local programs and resources.
The 2023-2024 Annual Report from United Way highlights that financial instability is overwhelming the most fragile people in our communities. United Way Worldwide’s president and chief executive, Angela F. Williams, said that the 211 network is an essential part of America’s infrastructure because it’s a lifeline between people in need and the resources available to support them. Last year, the 211 network responded to 16.8 million requests for help. The United Way report emphasizes this amounts to 32 calls, texts, or chats per minute. People were asking for assistance with basic needs, which mostly fell into three categories: housing assistance, utility bills, and food.
In the case of housing support, the volume of referrals nearly doubled, from 2019's 2.9 million to 5.6 million in 2024. Local 211s “are dealing with calls from people because their landlords are literally increasing rents by 20%, 30%, 50%,” Williams said. “People who are on fixed income or seniors can’t meet those increased rents and then have to leave or are evicted.”
The cost of housing for both renters and homeowners went up slightly in March, by 0.2%, compared with February, according to the Bureau of Labor Statistics. Meanwhile, a Gallup poll conducted after the president’s “Liberation Day” tariffs found a record-high 53% of Americans said their financial situation is worsening.
During the same time, the current administration has been dismantling government agencies whose mission has been to serve struggling families. Federal funds to nonprofits are being choked off or canceled. Programs to serve the poor are under attack. Last month, for example, the entire staff administering the Low Income Home Energy Assistance Program - which provides financial assistance to help people pay their heating and cooling bills - was fired as part of the federal workforce culling. The current administration wants to eliminate funding for the $4.1 billion program, which assists over 6 million through block grants to states. The program provides funds to states, which then use the money to help people pay to heat and cool their homes and prevent utilities from shutting off the air or heat.
The bleak outlook can also be seen in reports like the New York Federal Reserve’s Survey of Consumer Expectations, which it released recently. Consumer sentiment regarding current personal finances has fallen sharply since the tariff wars began. The New York Federal Reserve has highlighted a troubling trend: More households now expect slower income growth, anticipate greater difficulty finding new employment if they lose their current jobs, and an increased risk of missing minimum payments on debts such as credit cards, mortgages, and student loans.
Williams argues that the core problem lies not in discretionary spending but in systemic issues leading families into significant financial distress, the effects of which could persist for generations. She said she sees a “perfect storm” if significant inflation because of tariffs coincides with government benefit reductions or eliminations - combined with defunded community groups and nonprofits supporting the most financially vulnerable.
Read the May 9, 2025 Washington Post article.
(Image by storyset on Freepik.com.)
