Gov. Gavin Newsom (D-CA) and Senator Chris Murphy (D-Conn.) criticized President Donald Trump for accepting a Qatar-donated Boeing Co. 747 aircraft and spending $400 million to retrofit it into a "flying palace" while Americans face rising costs. The criticism highlights growing scrutiny over the use of taxpayer funds for luxury upgrades amid inflation pressures and the Iran war. The U.S. Air Force confirmed the modified VC-25B Bridge aircraft has joined the Presidential Airlift Group.

Trump’s Flying Palace

In a post on X on Saturday, Newsom’s Press Office quoted Trump stating he had asked the Emir of Qatar for the "brand-new 747" because the regular Air Force One aircraft were "pretty old." Newsom countered that Trump was "laser focused on affordability" while spending $400 million on the retrofit. Trump noted that his recent trip to the G7 summit was the final planned journey on the older aircraft that have transported presidents since the 1990s. He defended the gift, arguing that refusing it would have been inappropriate and that the country must be "represented properly."

Murphy Accuses Trump of Corruption

Senator Murphy accused the President of using taxpayer-funded resources to support luxury projects. Murphy stated that taxpayers funded a plane with "a level of luxury that nobody has never seen before" and characterized the expenditures on the plane and a White House ballroom as corruption. He argued that Trump treats taxpayer money as his own for a life of luxury and reportedly intends to take the aircraft with him after leaving office.

Economic Context and Spending Priorities

The criticism comes as the Iran war has caused Americans to incur billions in excess gas costs, with air fares expected to remain high despite a ceasefire agreement. Meanwhile, the Iran Memorandum of Understanding could provide access to $300 billion in reconstruction funds. Trump’s fiscal 2027 budget proposed a 44% increase in defense spending to about $1.5 trillion while cutting non-defense programs by 10%, a move the administration stated would strengthen national security. Senator Elizabeth Warren (D-Mass.) and Senator Elissa Slotkin (D-Mich.) also questioned funding priorities for a pool renovation and a White House ballroom amid rising costs for essentials.

Milliman, Inc., a premier consulting and actuarial firm, has released its 2026 Retiree Health Cost Index (RHCI), projecting how much a healthy 65-year-old can expect to spend on healthcare throughout retirement. The index accounts for variables such as geographic location, retirement timing, and coverage selection, all of which can significantly influence total premiums and out-of-pocket expenses. This year's edition marks the largest single-year increase in the index's history, underscoring the growing financial burden of healthcare planning for retirees.

2026 Savings Projections by Coverage Type

According to the 2026 RHCI, a healthy 65-year-old couple retiring this year faces substantially different savings requirements depending on the coverage pathway chosen. The following table summarizes the key projections:

The Medigap pathway requires significantly higher upfront savings, while the MAPD pathway recorded a steeper percentage increase year-over-year at 15.3% compared to 7.7% for Medigap.

Factors Driving the 2026 Increases

Several distinct factors are contributing to the increases observed across both coverage pathways in 2026.

Medigap pathway drivers include:

• Higher Medigap premiums
• Higher Medicare Part B premiums
• An uptick in projected long-term healthcare inflation
• Partially offset by lower Part D premiums

MAPD pathway drivers include:

• Premium increases across most states in 2026, reflecting rising medical costs
• Plan adjustments following changes to Part D
• Reduced supplemental benefits
• Higher cost-sharing requirements driving up expected out-of-pocket costs

Longer-Term Trend Remains Moderate

Despite the sharp single-year jump, the longer-term trajectory of healthcare cost growth in retirement remains comparatively measured. Between 2022 and 2026, the Medigap pathway has recorded roughly 3% average annual growth, while the MAPD pathway has seen approximately 2% average annual growth over the same period.

"Healthcare costs in retirement don't move in a straight line, and 2026 is a good reminder of that," said Robert Schmidt, co-author of the RHCI. "Out of pocket costs are an important part of retirement planning, and how much a person spends will depend on a variety of health and other factors."

The complete 2026 Retiree Health Cost Index is available at milliman.com/retireehealthcosts.