Trump's Affordability Push: Analyzing Long-term Mortgages and Cash Subsidies

Wed Nov 12 2025 23:24:21 GMT+0200 (Eastern European Standard Time)

In response to growing economic concerns, President Donald Trump has proposed 50-year mortgages and $2,000 rebate checks for Americans, raising eyebrows among economists and party members alike.

Amid rising public dissatisfaction with the economy, President Trump has launched a series of proposals aimed at enhancing affordability for American families. These include the introduction of 50-year mortgages and a $2,000 subsidy funded by tariff revenues. However, economists warn that these measures may not be sustainable, with concerns over potential inflation and inadequate tariff revenue to support such initiatives. As public sentiment shifts, Trump's ability to connect with voters on economic issues remains under scrutiny.

Facing growing public pessimism about his handling of the economy, US President Donald Trump has fired off a flurry of proposals to address consumer concerns.

Trump previously downplayed concerns about the cost of living, insisting the outlook had improved during his nine months in office. He said affordability was a new word, and a con job by Democrats.

However, he has focused on the issue with urgency since his party's poor performance in last week's off-year elections. He is again proposing an idea to give most Americans a $2,000 (£1,500) subsidy.

In reality, the payments would operate more like a rebate for federal revenue generated by tariffs on foreign imports, with the remainder of the revenue going to reduce the federal budget deficit.

According to economists, however, the tariff revenue isn't nearly enough to cover the $2,000 rebate plan, even with generous assumptions. The minimum cost for a rebate program could be about $300 billion, which would require deficit financing.

Another of Trump's ideas involves promoting 50-year mortgages as a way to make home ownership easier. Many view it, however, as a boon for lenders who will collect bigger fees and more interest.

Trump has suggested transforming government health insurance subsidies that will expire at year-end into direct cash payments to consumers, theoretically allowing them to negotiate their own insurance.

These proposals face significant challenges in Congress, especially with narrow Republican majorities. Recent elections showed that the economy is a top concern for voters, suggesting Trump's proposals may be a response to this sentiment.

While Trump continues to assert that prices are decreasing, conflicting data regarding rising costs plague his narrative. His administration's approach to tackling economic issues may need to adapt as public opinions shift.