The number of Americans living paycheck to paycheck has dropped sharply to a five-year low, according to Debt.com's 9th annual Budgeting Survey. Forty-eight percent of respondents report living paycheck to paycheck in 2026, a massive decline from the record high of 69% in 2025. The survey polled more than 1,000 Americans about their financial habits and situations.

Despite the improvement, the data reveals that Americans are not letting their guard down. Nearly half of the population remains financially stretched, and an overwhelming 95% say that ongoing economic uncertainty and rising costs make budgeting more important than ever.

"A 21-point drop in Americans living paycheck to paycheck is a massive victory on paper, but context is everything," says Howard Dvorkin, CPA and Chairman of Debt.com. "We cannot look at 48% and think the battle is won. Nearly half of our country is still one missed paycheck away from a financial crisis."

Key Findings from the 2026 Survey

The survey highlights several trends in consumer financial behavior. While economic data might look better, everyday consumers remain worried about inflation and rising interest rates.

Budgeting effectiveness remains a key theme. Eighty-five percent of Americans maintain a budget, and 88% of them say it has actively helped them get out or stay out of debt. Additionally, 44% of respondents report that their entire household works together to stay on budget.

Shifts in Financial Priorities

Retirement has climbed to 20% as a primary budgeting motivator, the highest in the survey's history. Conversely, inflation as a trigger for budgeting dropped from 31% to 23%.

"Budgeting isn't a luxury hobby, it's a financial seatbelt," Dvorkin concludes. "The data shows that 88% of budgeters successfully manage or avoid debt. Whether you stick to traditional pen and paper or adopt a mobile app, leaning into consistency is what protects you from the next economic shift."

Sen. Bernie Sanders highlighted a poll on Monday indicating that 69% of Americans support his legislative proposal to grant the public a 50% ownership stake in the country's largest AI companies. The independent Senator from Vermont argued that the economic gains generated by artificial intelligence should benefit the broader public rather than remain concentrated among a small group of tech companies and investors. The proposal aims to establish an American AI Sovereign Wealth Fund to hold these ownership stakes.

The poll, conducted by research firm Verasight in June, surveyed 1,690 U.S. adults. It found that nearly seven in 10 respondents support requiring AI companies such as OpenAI and Anthropic to transfer half of their stock into a public sovereign wealth fund. Sanders shared the results on social media, stating that the American people understand AI must work for everyone, not just enrich a handful of Big Tech billionaires.

American AI Sovereign Wealth Fund Act

Sanders introduced the American AI Sovereign Wealth Fund Act in June. The legislation proposes creating a public fund that holds a 50% ownership stake in the nation's largest AI companies. This structure is designed to allow Americans to share in the industry's long-term financial gains. The bill is a response to concerns that the wealth generated by rapid advancements in AI technology is accruing disproportionately to corporate entities and high-net-worth investors.

Employment and Economic Impact

The proposal emerges amid growing concerns regarding AI's impact on employment. Goldman Sachs Senior Global Economist Joseph Briggs has estimated that roughly 15 million U.S. workers, or about 9% of the labor force, could lose jobs during a decade-long AI transition. While Briggs expects AI to create new jobs over time, the potential for significant displacement has fueled the debate over how to manage the economic transition.

Research firm Windfall Trust suggested that sovereign wealth funds could help governments invest in AI infrastructure and capture economic gains for citizens. However, the firm also cautioned that such funds may face difficult trade-offs between maximizing investment returns and advancing national AI priorities.

Political Reactions

The plan has drawn criticism from some technology and political figures. David Sacks, former White House AI and Crypto Czar, criticized the proposal. Ripple Chief Technology Officer David Schwartz argued that the plan amounts to an attack on free speech.

Conversely, in June, Vice President JD Vance stated that President Donald Trump supports government ownership stakes in major AI companies through a sovereign wealth fund-style model. Elon Musk has suggested that direct cash payments to Americans would be a better approach than acquiring equity stakes.