In a striking political shift, Democrats have won control of Congress on a platform of affordability, but the path to delivering on their promises is fraught with obstacles. The victory, which saw at least seven Republican-held Senate seats flip, was driven by voters' deep dissatisfaction with the cost of living, despite a seemingly healthy economy.
A Vote About Prices, Not Politics
Just 21% of Americans are satisfied with the country's direction, and voters were focused on grocery bills, electricity costs, and petrol prices rather than economic statistics. In Texas, business owner Kim Hanks said rising costs are forcing her to raise wages for her 300 staff. "It's been such a moving target for us on affordability," she told the BBC World Service. In Indiana, Danny Reynolds, who runs a clothing store, simply hopes for consistency from Washington. "We ran on affordability, we won on affordability, and now it's our job to govern on affordability," said House Democratic leader Hakeem Jeffries.
The Republican Backyard
Even Republican strongholds felt the pinch. Sid Miller, the outgoing Republican agriculture commissioner for Texas, said ranchers are getting $300 to $500 less per head of cattle while facing record fertiliser costs. "They feel betrayed," he said. This was more than a blue wave; it was a referendum on the cost of living.
What Democrats Plan to Do
Under the banner "Fighting for an Affordable America," Democrats have outlined a ambitious agenda:
- Healthcare: Restore extra financial help for Affordable Care Act insurance and reverse Medicaid cuts signed by President Trump in 2025.
- Tariffs and Energy: Scrap import taxes that they say add thousands to yearly costs, and end the war in Iran, which they link to petrol prices averaging $4.18 a gallon, up nearly 40%.
- Housing: Build four million new homes over the next decade.
- Tax: Make billionaires pay more and increase tax credits for families with children.
But how much can they actually deliver? Investor Ken Fisher is blunt: "Congress can't get anything past a presidential veto. President Trump can't get anything he wants." The result, he says, is likely two years of relative quiet on the legislative front.
The Veto Wall
Winning Congress does not give Democrats a free hand. President Trump can still block legislation, and overriding a veto requires a two-thirds majority in both chambers. For voters hoping for lower bills, that may be disappointing. They didn't vote for deadlock.
Take tariffs. Trump is unlikely to abandon a trade policy central to his agenda. Bernard Yaros, deputy chief US economist at Oxford Economics, expects the average tariff rate to stay around 10% for the rest of Trump's term. Tariffs now account for more than 5% of federal revenue, up from just over 1% in 2024, making them tough to dismantle.
Yaros sees a possible trade-off: Democrats agree to extend Republican tax cuts in return for restoring health insurance subsidies. But he doesn't expect a deal until late 2027, with benefits arriving in 2028. That's a long wait for those struggling today.
Pressure on Business
Democrats could also turn up the heat on companies. Henrietta Treyz of Veda Partners says Democrats will question firms that passed on tariff costs to customers. "Did you turn around, take that tariff rebate, and then lower prices for consumers?" she asks. Companies will also be asked what they got in exchange. In the Senate, Ron Wyden, the Oregon Democrat set to chair the Finance Committee, summed up his approach: "Affordability for us, accountability for them." He plans to use the committee to reassert congressional authority over trade policy, and insurers, drugmakers, and banks should expect scrutiny.
Local Levers
Some of the biggest changes may happen closer to home. State governors and regulators influence electricity prices, while local authorities decide where new homes can be built. Democrats have won governorships in Texas, Ohio, and Georgia, where rising electricity costs for data centres are already a concern.
The Hardest Test
The hardest test may be something Democrats cannot fix with a new law. Petrol, diesel, and fertiliser prices depend heavily on the war with Iran. Oxford Economics warns that further escalation is more likely now that the election is over, as petrol prices will no longer be as much of a political concern for the president. And here's the awkward part: if prices come down, Democrats may struggle to claim credit; if they go up, they may share the blame.
There is also an immediate test: government funding runs out after 11 December, and the chances of another shutdown look uncomfortably high. Democrats won the argument. Now they have to show they can make life cheaper.
