From BBC News · · 3m
Democrats won on affordability. Can they deliver?
Democrats campaigned on lowering costs and won big. But Trump's veto power means their plans face a steep climb.
In brief
Democrats campaigned on lowering costs and won big. But Trump's veto power means their plans face a steep climb. Democrats won the 2024 election on affordability but face a presidential veto and divided Congress, limiting what they can actually achieve on healthcare, tariffs and energy costs. Originally reported by…
The affordability message won
Democrats campaigned on lowering costs and won big, with at least seven Republican-held Senate seats changing hands. Voters focused on grocery bills, electricity and petrol prices, not economic statistics.
Rural America felt the squeeze
In Texas, ranchers got three hundred to five hundred dollars less per head of cattle while facing record fertiliser costs. Sid Miller, the outgoing Republican agriculture commissioner, said they felt betrayed.
“They felt betrayed”
Democrats' affordability plan
Under the banner Fighting for an Affordable America, Democrats prioritise healthcare, tariffs, energy, housing, and tax changes. They want to restore health insurance subsidies, scrap import taxes, and build four million new homes.
Trump can still block them
President Trump retains veto power over legislation. Getting around a presidential veto requires a two-thirds majority in both the House and Senate, which Democrats do not have.
The tariff problem
Trump is unlikely to abandon tariffs, which are central to his agenda. Import taxes now account for more than five percent of federal revenue, up from just over one percent in two thousand twenty-four.
Where deals might happen
Healthcare could be a bargaining chip. Democrats might agree to extend Republican tax cuts in return for restoring health insurance subsidies, but Bernard Yaros of Oxford Economics does not expect a deal until late two…
Democrats can pressure businesses
Henrietta Treyz of Veda Partners says Democrats will question companies that passed tariff costs to customers. Ron Wyden, set to chair the Finance Committee, summed up his approach as affordability for us, accountability for them.
“affordability for us, accountability for them”
State and local power matters
State governors and local authorities control electricity prices and housing decisions. Democrats won governorships in Texas, Ohio and Georgia, where rising electricity costs for data centres are already a concern.
The Iran war wildcard
Petrol, diesel and fertiliser prices depend heavily on the war with Iran. Oxford Economics warns that with the election over, further escalation appears more likely because petrol prices are no longer a political concern.
The credit and blame problem
If petrol prices fall, Democrats may struggle to claim credit. If they rise, Democrats may share the blame. Either way, they cannot control global energy markets or geopolitical events.
An immediate test looms
Government funding runs out after December eleventh. The chances of another shutdown look uncomfortably high. Democrats won the argument on affordability but must now show they can make life cheaper.
The bottom line
Democrats won the 2024 election on affordability but face a presidential veto and divided Congress, limiting what they can actually achieve on healthcare, tariffs and energy costs.
