By Salma El-Sakka
Democrats secured control of Congress campaigning on affordability, yet translating that mandate into lower costs for Americans faces steep obstacles, including a presidential veto and entrenched trade policies.
Voters focused on cost of living
Despite healthy economic indicators, only 21% of Americans express satisfaction with the country's direction. Voters cited grocery bills, electricity costs, and petrol prices as primary concerns, a sentiment that flipped at least seven Republican-held Senate seats. In Texas, outgoing Republican Agriculture Commissioner Sid Miller said ranchers feel betrayed by falling cattle prices and record fertilizer costs.
Democratic affordability agenda
Under the banner "Fighting for an Affordable America," Democrats prioritize restoring Affordable Care Act subsidies and reversing Medicaid cuts. They also propose scrapping presidential import tariffs, which they say add thousands of dollars annually to groceries and building materials, and ending the Iran war linked to a near 40% rise in petrol prices. Housing plans include building four million new homes over a decade, while tax proposals target higher billionaire payments and expanded child tax credits.
Legislative hurdles
Investor Ken Fisher warns that Congress cannot override a presidential veto without a two-thirds majority in both chambers, predicting two years of legislative quiet. Oxford Economics expects average tariff rates to remain around 10% for the rest of Trump's term, noting tariffs now contribute over 5% of federal revenue, making them difficult to dismantle.
Potential compromises
President Trump has signaled willingness to work with Democrats on healthcare. Economist Bernard Yaros sees a possible trade-off: Democrats extending Republican tax cuts in exchange for restored health insurance subsidies, though any deal may not arrive until late 2027 with economic benefits in 2028.
Pressure on businesses
Democrats plan to scrutinize companies that passed tariff costs to consumers. Following a February Supreme Court ruling, consultants expect hearings on whether firms lowered prices after receiving tariff rebates. Senate Finance Committee chair Ron Wyden pledged "affordability for us, accountability for them," targeting insurers, drugmakers, and banks.
State and local factors
Governors and regulators influence electricity prices, while local authorities control housing development. Democrats won governorships in Texas, Ohio, and Georgia, where rising data-center electricity costs are a growing concern.
External risks
Fuel and fertilizer prices depend heavily on the Iran war, with Oxford Economics warning escalation appears more likely post-election. A government funding deadline on 11 December raises shutdown risks, testing Democrats' ability to deliver on affordability promises.
