James Chemplavil, Founder/CEO, Salus
The end of 2025 went by in a blur of headlines. It’s hard to remember what people were focused on in any given week.
Whether we remember it or not, we ended the year with real uncertainty about the cost of living in 2026. And the fall government shutdown also created uncertainty as to what services people would have access to. Credit unions need to remember that while the headlines may move on, the real impacts for people have not.
Here’s a look at three cost-of-living subjects from the end of 2025, and where they stand in 2026.
Inflation
After several years of inflation higher than the long-term 2% target, it was a persistent hit to household balance sheets and spending power.
Let’s look at what’s happening to someone making the median weekly earnings of $1,215 in the third quarter of 2025 (monthly earnings of $4,860). Based on inflation data, what cost $4,860 in December 2023 would cost $5,000 in December 2024. That means those earners took a hit of $141 a month due to rising costs as they went from 2024 to 2025.
So, where did inflation end 2025? Based on the federal data, inflation didn’t go down – it didn’t even really slow down. What cost $4,860 in December 2024 would cost $4,990 in December 2025. That means those earners are taking a hit of $130 a month from rising costs as they go into 2026.
Over the last two years, those earners have taken a cumulative hit to their spending power of $274 per month.
SNAP Benefits
SNAP benefits serve 22 million households (42 million people), providing an average monthly benefit of $353 per household per month ($188 per person per month).
In the recent legislation, eligibility requirements for the program changed. The exceptions from work requirements have been narrowed (changing the “able-bodied adults without dependents” definition to include ages 18-64 instead of 18-54, removing exceptions for veterans, homeless individuals, and parents with children 14-17 years old). The estimated impact of these changes is that roughly 1 million people in these groups will lose access over the next few years.
ACA Healthcare Plans
In 2026, there are roughly 20 million people who had active ACA coverage in 2025. Given changes to the federal budget, subsidies for coverage are lower in 2026 than in 2025.
For a typical family of four making roughly the median U.S. household income of $83,000, the reduction in subsidies means that their monthly cost for a $2,000 plan changes from $268 to $565. This represents a $297 (or 111%) increase in monthly healthcare costs, assuming no change in the underlying plan cost. Anecdotally, some households could see much higher increases than that as overall plan costs rise even without the subsidy effect.
Pressures Rising in 2026
As we start the year, it’s important to remember that for millions of working households, the pressures of making ends meet have not abated in 2026; they’re getting tougher.
- Inflation continues to impact households by roughly $130 a mont
- SNAP could cut benefits eligibility for households getting $353 per month
- ACA health premiums could go up by $297 a month for a median household of four
All this is happening in a context where 27% of adults were already just getting by or struggling to do so, and 37% of adults already struggle to cover an unexpected $400 expense.
Be Proactive, Not Reactive, And Help Members Thrive
Against this backdrop, the people in our communities are vulnerable to a financial challenge, which means living the credit union mission is more important today than it was even a year or two ago. Regardless of the headlines, credit unions should keep their focus where it belongs: helping members by meeting them where they are.
Salus positions your credit union to help members navigate issues like these, with fully automated digital microloans and more. Learn more about how we can partner with you.