Democrats Promised to Fix the Economy. Can They?

Host Luke Vargas says Democrats retook control of Congress after voters expressed anger over gas, groceries, housing, wages and tariffs. Ohio voters told reporters Jeanne Whalen and Gavin Bade that prices had risen faster than their incomes and that President Trump had not delivered the promised improvements. Incoming North Carolina Senator-elect Roy Cooper’s victory speech reflected that mandate: he promised action on health care, housing, groceries, the Iran war, Medicaid expansion and corruption. The reporters then test which promises Congress can realistically fulfill before 2028.

Jeanne Whalen says Democrats could try to lower gasoline pressure indirectly by pushing the Iran war toward an end, including withholding some Defense Department funding. They would need four or five Republican senators, since a Democratic majority cannot act alone. Gavin Bade adds that a vacancy at the Defense Department—if President Trump removes Secretary Pete Hegseth, whom Trump also calls the secretary of war—could give Senate Democrats leverage: they might condition hearings and a confirmation vote for his replacement on commitments to wind down the war.

Bade expects the incoming Senate Finance Committee chairman, Oregon Democrat Ron Wyden, to begin with legislation canceling Trump’s tariffs and import prohibitions on Canada. Democrats believe their caucus is nearly or entirely united against those measures, and some Republicans have previously joined efforts to oppose them. Broader tariff fights will be harder: lawmakers from Pennsylvania and other steel- and aluminum-producing states may resist repealing those tariffs. Bade says Democrats will start with narrow, politically manageable challenges, while lasting limits on presidential trade authority probably must wait for a future administration.

On health care, the immediate Democratic target may be reversing cuts to Affordable Care Act subsidies included in Trump’s “one big, beautiful bill.” Bade says Democrats view that as broadly popular and possibly negotiable with Trump, but expanding the social safety net substantially will probably require a Democratic presidential administration. Michigan Senator-elect Abdul El-Sayed supports Medicare for all but has also proposed incremental steps, beginning with expanded vision and dental coverage and extending those benefits to children rather than attempting one sweeping change.

Matt Grossman says Democrats face a basic limit: Congress cannot directly control every price or give everyone a raise, even though voters feel daily expenses are outpacing wages. Jeanne Whalen identifies opposition to data centers as a particularly strong bipartisan concern; at one Ohio polling place, Democrats, Republicans, independents and undecided voters all supported curbing construction. Congress might limit data centers’ size, location or overall growth, and perhaps add worker protections or other AI restrictions, though Whalen is not confident lawmakers will act.

Bade says Democrats want higher taxes on billionaires to fund an expanded safety net while addressing high interest rates and record national debt, and he sees possible bipartisan populist support. But he warns that billionaire taxes alone cannot fund Medicare for all, existing programs and the country’s military commitments; Democrats may also have to confront defense spending and social-insurance choices. With control of the House Oversight Committee, Democrats could investigate mergers and concentrated corporate power, but Grossman says voters’ demand for real affordability progress may pressure them to use subpoenas meaningfully rather than theatrically.