A recent analysis reveals that the combined wealth of the 15 richest billionaires in the United States surged by nearly $1 trillion during the first year of President Donald Trump‘s second term. This increase, which coincided with significant cuts to welfare programs, underscores a troubling trend of escalating wealth inequality in the country.
According to a report from the Institute for Policy Studies (IPS), the wealth of U.S. billionaires rose by an astonishing 21 percent in 2025, bringing their total assets to $8.1 trillion. In stark contrast, this amount is nearly double the wealth held by the bottom 50 percent of Americans, comprising over 170 million individuals. Among those billionaires, approximately a dozen hold positions within the Trump administration.
The wealthiest individuals experienced the most significant gains. The top 15 billionaires in the U.S. saw their fortunes grow from $2.4 trillion to $3.2 trillion, a staggering increase of $800 billion. Notably, Elon Musk, the world’s richest person, played a major role in this wealth accumulation. His net worth skyrocketed from $421 billion to $726 billion in 2025, marking a remarkable gain of $305 billion. This increase alone could enable Musk to cover the costs of the recently enacted cuts to Medicare, estimated at $536 billion over the next decade.
The IPS report highlights that Musk’s wealth has surged by 2,800 percent since 2020, when he was valued at just below $25 billion. Other billionaires, including Google co-founder Larry Page and Oracle co-founder Larry Ellison, along with the Walton family, also saw their fortunes increase by tens of billions last year.
As the wealth of billionaires skyrockets, ordinary Americans face an affordability crisis. Surveys conducted by Politico and GQR for The Century Foundation indicate that roughly 30 percent of Americans reported skipping necessary medical care due to costs at the end of 2025. This crisis is expected to worsen as cuts to Medicaid and Affordable Care Act subsidies are enacted.
On January 1, 2026, Affordable Care Act subsidies for millions of Americans expired, resulting in an average doubling of premiums. The Congressional Budget Office estimates that approximately 16 million people will lose their health care benefits entirely due to these cuts. Such measures were implemented to finance substantial tax reductions for billionaires and the wealthiest Americans. The CBO projects that the richest individuals will benefit by an average of $12,000 annually, while the poorest 10 percent will see their wealth decline by approximately $1,600 each year.
Researcher Omar Ocampo from IPS emphasized that the current situation not only reflects record-breaking wealth increases among U.S. billionaires but also highlights a significant disparity in tax contributions. “Average taxpayers pay income tax at triple the rate of the wealthiest Americans,” he stated.
The findings of this analysis raise critical questions about the growing divide between the ultra-wealthy and the average citizen in the United States. As the country moves into 2026, the implications of these trends will undoubtedly continue to resonate across various socio-economic sectors.