Donald Trump’s actions prompt democracy downgrade and financial scrutiny in US

The V‑Dem Institute’s 2026 Democracy Report reclassified the United States from a “liberal democracy” to a “electoral democracy,” the first downgrade of this kind in more than five decades. The downgrade cites a sharp decline in civil liberties, media freedom and the independence of institutions such as the courts and academia.

Critics argue that President Donald Trump has accelerated democratic erosion by pressuring the judiciary, restricting press protections, and challenging academic autonomy, exemplified by a lawsuit in which Harvard University successfully sued the administration over funding cuts. At the same time, U.S. authorities are examining Trump’s extensive financial activities. Recent disclosures show large stock trades in companies like Amazon, Apple and Nvidia, a $200 symbolic fine for delayed reporting, and the monetisation of his Truth Social platform through the Trump Media & Technology Group, which charges high‑fee “Truth API” subscriptions. Investigators are also probing possible insider‑trading violations linked to his public statements on trade and foreign policy.