Fifty-year mortgages and $2,000 cheques: What's behind Trump's affordability drive?

November 12, 2025

President Donald Trump is scrambling to address growing public dissatisfaction with his economic performance following Republican losses in recent state elections. His main proposal involves providing $2,000 payments to Americans funded by tariff revenue, though economists say tariff collections fall far short of covering such a program and warn the payments could actually worsen inflation. Trump has also floated controversial ideas including 50-year mortgages and converting health insurance subsidies into direct cash payments, many of which lack support even within his own party.

Who is affected

US President Donald Trump and his administration
The Republican Party (particularly after election losses)
American consumers concerned about cost of living
Democrat candidates who won recent elections (Zohran Mamdani, Abigail Spanberger, Mikie Sherrill)
Treasury Secretary Scott Bessent
Republican Congresswoman Marjorie Taylor Greene
Americans who would potentially receive the $2,000 payments
Households with incomes under $100,000 annually
Banks, mortgage lenders, and home builders
Uninsured buyers of obesity drugs
Recipients of government health insurance subsidies and food aid

What action is being taken

Trump is proposing a $2,000 rebate plan funded by tariff revenue
The administration is ordering a federal investigation into beef prices
Trump has reached an agreement with pharmaceutical manufacturers to lower obesity drug prices for uninsured buyers
The White House is discussing whether Trump should travel the country to give speeches on the economy
Trump's administration is fighting in court to end food aid during the government shutdown
The president is overseeing multi-billion-dollar renovations to the White House

Why it matters

This situation matters because it demonstrates how quickly political fortunes can shift based on economic perceptions, regardless of actual data. Trump's struggle to address consumer concerns threatens Republican electoral prospects, as voters consistently rank the economy as their top issue. The situation also reveals the limitations of tariff-based revenue strategies and highlights potential policy contradictions—such as proposing consumer relief while simultaneously cutting food assistance programs. Most significantly, it shows Trump facing the same disconnect between economic indicators and public sentiment that plagued Biden's presidency and which Trump himself exploited during his 2024 campaign.

What's next

The White House is discussing whether Trump should travel the country to give speeches on the economy. Government health insurance subsidies will expire at the end of the year. All major proposals (the $2,000 payments, 50-year mortgages, and converting health subsidies to cash payments) would require congressional implementation with narrow Republican majorities in both chambers.

Read full article from source: BBC