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Why Trump’s affordability push is stalling ahead of midterm elections

May 7, 2026

By Katy O’Donnell and Courtney Subramanian | Bloomberg

The Trump administration’s fitful campaign to address US voters’ affordability concerns ahead of the midterm elections is faltering, with some key efforts stalled, cast aside or limited in scope.

The biggest piece of housing legislation in a generation has languished on Capitol Hill because of lawmakers’ objections to a provision negotiated by the White House. President Donald Trump has stopped touting a proposed 10% cap on credit-card interest rates, after backlash from banks and skepticism from economists.

And two executive orders, one aimed at easing access to mortgage credit and another that seeks to streamline regulations for builders, are not yet fully implemented and experts say they would only help marginally.

Also see: What’s next for California home prices? Watch the job market

At the same time, the war in Iran has driven up gas prices and sent a chill through the spring housing market. It has also drowned out the administration’s set-piece events meant to highlight larger tax refunds and measures to lower drug prices.

Some Republicans are also frustrated with the administration’s scattershot messaging, particularly around last year’s signature tax law, according to a GOP operative who spoke on condition of anonymity to discuss sensitive matters. That measure contained a provision to boost affordable housing alongside a series of tax cuts.

Voters have taken notice: Consumer sentiment fell last month to its lowest level on record dating back to 1978. And with less than six months until Election Day, Trump’s approval rating has touched new lows.

Also see: Two California home insurers to raise rates, expand coverage by late 2026

If the White House doesn’t reverse that trend, it will put Republicans at greater risk of losing control of Congress — an outcome that would stymie the president’s agenda during the final two years of his term.

“The politics are really, really tough for Republicans on the affordability issue now,” said Ryan Bourne, an economic scholar at the libertarian Cato Institute.

Just 23% of US adults approve of how Trump is handling the cost of living, compared with 76% who disapprove, according to an AP-NORC survey conducted in mid-April.

Still, the White House insists its economic agenda is on track.

“While the President has been clear about short-term disruptions as a result of Operation Epic Fury, the Administration is focused on the proven Trump agenda of tax cuts, deregulation, and energy abundance to keep America on a solid economic trajectory,” said White House spokesman Kush Desai.

Housing, credit pushback

The Senate passed a housing package in March that includes an idea the president trumpeted in January: a restriction on institutional investors buying single-family homes.

But a detail of that Trump-backed proposal has tripped up the bill in the House. It requires investors to sell build-to-rent homes after seven years, which critics say would stunt construction of new rental units.

Politico reported this week that Trump has soured on that rule. A White House official pointed to the administration’s statement of support for the housing bill when asked about the report.

Also see: Affordability rises for California homebuyers but gaps remain for Blacks, Hispanics

“The President will not stop fighting until the American Dream of homeownership is within reach for every American, which is why he continues to sign bold new executive orders and calls on Congress to pass further legislation,” said White House spokesman Davis Ingle.

That’s hardly the only measure that’s gotten a cold reception outside the White House. The credit-card interest rate cap was panned by the finance industry, with JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon arguing it would spell “economic disaster.”

Such a cap would require an act of Congress, and plenty of Republicans are leery of supporting it. House Speaker Mike Johnson dismissed it as an “out-of-the-box” idea that could result in “negative secondary effects.” Trump ally Stephen Moore warned in a report published last week that the measure would restrict consumer credit and could even risk a recession.

Senator Elizabeth Warren of Massachusetts, the top Democrat on the Senate Banking Committee, last week pressed financial regulators on having “done nothing” to lower credit-card interest rates, which currently hover around 21% on average, according to the Federal Reserve.

Even as it has gone quiet on the credit-card proposal, the White House is looking for other ways to address consumer costs. In addition to the housing executive orders, it continues to negotiate with drugmakers for lower prices, according to another White House official who spoke on condition of anonymity to discuss future announcements. There are plans in the works aimed at bringing down costs of some grocery items, the official said.

In what was billed as a “major housing announcement,” administration officials last month updated reporters on an effort to incorporate new credit-score models into the housing finance system.

Those changes won’t translate to significant savings for consumers, according to Douglas Holtz-Eakin, president of the right-leaning American Action Forum.

“The cost of credit scores as a part of the purchase price of the house is nothing,” he said.

One attempt to make housing more affordable had a brief impact, only for the war in Iran to reverse any relief.

The announcement that government-controlled Fannie Mae and Freddie Mac would buy $200 billion in mortgage bonds briefly spurred mortgage interest rates to fall below 6% for the first time since 2022. Then the conflict began, causing rates to rise to 6.46% in a matter of weeks. The interest rate on a 30-year fixed mortgage loan is currently 6.3%, according to Freddie Mac data.

Long-simmering challenges

One challenge for Trump, Bourne said, is that it’s difficult for any president to quickly move the needle on pocketbook issues, because the factors that shape them are so complex. Some steps Trump could take would require congressional action or removing the tariffs that are the foundation of his economic agenda, Bourne added.

“That’s why he’s left scrambling around, putting out executive orders and rule changes, because he wants to show that he recognizes the degree of dissatisfaction with the issue,” Bourne said. “But the truth is, there’s not actually a ton he can directly do about it.”

Trump himself has shown hints of exasperation that voters aren’t giving his party more credit on cost-of-living initiatives — including at an April event at the White House highlighting a drug-pricing deal with Regeneron Pharmaceuticals Inc.

“It’s the biggest price reduction in drugs in history,” Trump said. “By itself, we should win the midterms, but it doesn’t work that way, unfortunately.”

Gregory Korte at Bloomberg contributed to this report.

Orange County Register

News Details

Why Trump’s affordability push is stalling ahead of midterm elections

Housing, credit pushback

Long-simmering challenges

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