WASHINGTON — As the economy becomes a likely defining issue in next year's midterm elections, President Trump has battled the rising cost of living for Americans. declaring himself the “President of Accessibility” then soon dismissed the issue as something that “means nothing to anyone.”
At two White House events this week, the president accused Democrats of pushing a “fake narrative” about affordability to deceive voters ahead of the election, calling them “great frauds” who won't reveal details about how they intend to lower prices.
“It's a scam. I think affordability is the biggest scam,” Trump said Wednesday.
Meanwhile, Democrats on Capitol Hill have begun to shape an agenda focused on housing affordability ahead of the midterm elections, including a proposal to address rising housing costs.
Sen. Adam Schiff (D-Calif.) will introduce legislation Thursday aimed at increasing the supply of affordable housing for low- and moderate-income families, expanding rental assistance and increasing funding for long-term housing and homeless shelters, according to a draft of the bill reviewed by The Times.
“Of all the affordability issues Americans face, housing is the most pressing. That's certainly true in California, but it's true across much of the country,” Schiff said in an interview. “I want the Democratic Party to be the party for America's next housing boom.”
The 48-page bill, titled the Housing Boom Act (Housing Opportunities for Millions Act), proposes expanding federal tax credits to help finance the construction and rehabilitation of affordable housing.
It would create a $10 billion annual loan fund and a $5 million annual grant program to expand affordable housing for middle-income families, as well as a federal grant program to convert hotels and unused residential properties into transitional housing or homeless shelters. The proposal would also create a new office within the Department of Housing and Urban Development to protect people from eviction.
Schiff's proposal has great prospects in Congress, where Republicans control the House and Senate, and where any proposal supported by Schiff Trump's longtime enemyis unlikely to receive presidential approval. However, Schiff says inaction on his proposal could be used against Republicans, arguing that the lack of affordable housing is a “real problem” for Americans.
A recent report from the National Assn. Realtors have shown that Americans are taking longer to become first-time home buyers, with the average age expected to reach a record high of 40 in 2025. Part of the reason is that young Americans are struggling to accumulate wealth as prices rise and rents continue to rise.
Compounding the dilemma is the nation's persistent shortage of affordable housing, especially for millions of low-income renters, experts say. National Low Income Housing Coalition report.
“If Republicans don’t join in, this will become as much of a liability for them as health care,” Schiff said.
The proposal is an example of how Democrats are shaping their midterm strategy with a focus on curbing rising prices, a message that helped the Democratic Party win elections in key states last month and make significant gains in deep red Tennessee on Tuesday night.
The results of the off-year elections largely influenced the new Democratic Party strategy and prompted Democratic leaders in the Senate and House of Representatives to adopt it as a political program.
At a news conference Wednesday, Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries, both of New York, described Trump and Republicans as out of touch with the working class.
“They're in a bubble. They don't understand it,” Schumer told reporters. “Well, Democrats know that our job is to fight for the American people and keep their costs down.”
Schumer and Jeffries said Democrats' first priority is to try to negotiate a deal to extend the Affordable Care Act tax breaks, which, if allowed to expire at the end of the year, would cause insurance premiums for millions of Americans to skyrocket on New Year's Day.
Two weeks ago, a health problem prompted The White House will take part in the negotiations with lawmakers, a move that was seen as a political Hail Mary.an increasingly divided party It's an election year. James Blair, the White House deputy chief of staff, said at the time that “the president would probably like to do more than Hill wants.” Since then, negotiations have stalled.
The White House did not provide an update on the president's plan to address rising health care costs when asked Wednesday. Instead, a White House spokesman said in a statement that Trump has made “addressing Joe Biden's inflation and affordability crisis” a priority since his second term began in January.
“The fraud here is that Democrats are now harping on the very affordability crisis they spent four years creating—a problem for which they also have no real solutions,” the statement said.
Vice President J.D. Vance said at a Cabinet meeting on Tuesday that it was “absurd” to see Democrats talking about affordability, saying the Trump administration was focused on addressing the economic situation Biden left behind.
“I think Democrats in Congress in particular, if they want to talk about affordability, they should look in the mirror,” Vance said. “We're fixing what they broke. We're proud to do that. That's the job we chose to do. But I think 2026 will be the year that this economy really takes off.”
Meanwhile, Democrats are beginning to unveil policy plans they say will help them counter that message.
Rep. Latifah Simon (D-Oakland) plans to introduce companion legislation to Schiff's housing bill in the House.
“When families can't afford to stay in their communities, when veterans sleep on our streets, when working people are one step away from raising their rents to losing everything, it's a failure of police and political will,” Simon said in a statement. “The Housing Boom Act is a comprehensive response to this failure.”
Schiff said his push to expand the supply of affordable housing is a critical step in addressing what he says is an affordability crisis worsened by Trump policies, whether a crackdown on immigration or tariffs.
“If he continues to not deliver more housing, and actually raises the cost of housing through tariffs on building materials, deporting construction workers, then he will only create more problems for himself and the Republican Party,” Schiff said.
