Trump administration officials and allies say they still have big plans for the second year and are already off to a fast start in 2026.
President Trump emphasizes affordability in second-year agenda
President Donald Trump’s second-year agenda has shifted focus from his MAGA wish list to tackling the cost of living.
Donald Trump returned to office with flying colors in a shock-and-awe first year, ticking off the MAGA wish list, but it sparked a surge of resistance and tested his iron grip on the Republican Party.
Administration officials and allies say they still have big plans for the second year, which began in 2026 with high-profile moves after U.S. forces seized Venezuela’s president and Trump issued populist decrees on housing and credit card interest rates.
“His desire to drive the news cycle knows no bounds,” said Marc Short, who was Trump’s legislative director during his first term and later served as chief of staff to Vice President Mike Pence.
But even Republicans say Trump’s prospects for making even bigger changes this year are uncertain, with impending midterm elections narrowing what is politically possible for the 79-year-old president, Congress looking increasingly gridlocked, public opposition to his aggressive moves growing at home and abroad, and concerns about the cost of living, a core issue for many Americans, without easy solutions.
Since taking office on January 20 of last year, Mr. Trump has pushed the limits of executive power, bulldozing Congress with a blitzkrieg of mass deportations, shaking up the American political system with dramatic reorganization of federal agencies, deploying the National Guard on the streets of major cities and military operations overseas.
The president’s first-year moves pleased the MAGA base but were often controversial. Trump’s aggressive use of the military and federal law enforcement, as well as other actions such as prosecuting perceived political opponents, have led many Democrats to express strong opposition, calling him an authoritarian.
Some allies predict the Trump administration will pursue policies with broad appeal in its second year in office, as Republicans face tough reelection battles. They are already campaigning around the argument that the Democratic majority in Washington will usher in aggressive surveillance and possible impeachment of Trump.
Rep. Greg Steube (R-Fla.) said he expects the White House to pursue an agenda that helps Republicans in “tough battleground states.” President Trump’s proposals to cap credit card interest rates and ban institutional investors from buying homes could also appeal to Democrats and independent voters. White House officials cited the president’s recent discussion with progressive Massachusetts Sen. Elizabeth Warren about credit card interest rates as an example of Trump’s unconventional approach.
Reducing the cost of living is at the top of the list of priorities for 2026, according to two White House officials, with the administration eyeing everything from lowering drug prices to tackling housing and other health care costs.
Beyond affordability, one official pointed out that crypto and crime-related legislation could be passed this year.. There’s even talk of a new giant bill with tax-cut priorities like the one President Trump signed last year. And while President Trump launched an investigation into fraud in federal programs in Minnesota and promised a nationwide anti-fraud campaign, he threatened to cut federal funding to “sanctuary” cities and states that resist federal immigration enforcement efforts.
But the president has struggled to stay on message. In his Jan. 13 speech, he promised progress on affordability but dismissed it as “democratic rhetoric.” And his administration often distracts from kitchen issues with provocative moves, such as military action in Venezuela earlier this year, doubling down on immigration efforts after an immigration officer killed a woman in Minneapolis, and launching a criminal investigation into Federal Reserve Chairman Jerome Powell.
A CBS News/YouGov poll released on January 7th found that 59% of Americans began the year disapproving of President Trump’s job performance. More independent voters are now leaning toward Democrats, according to a Gallup poll. Republicans maintained an advantage over independents in 2024, but lost that advantage to Democrats in 2025.
Meanwhile, the already slim Republican majority in the House has shrunk with the resignation of one lawmaker and the death of another, leaving Republicans with a 218-213 advantage, making it extremely difficult to pass any non-partisan legislation.
election year
President Trump praised his first year in office in a speech at the Detroit Economic Club on January 13, saying, “I’ve kept all my promises and everything.” He painted a rosy picture of the economy, pushing for passage of a sweeping tariff program and signature tax cuts. White House officials said Trump will make more trips before the midterm elections to promote his economic message and set out new policies.
But many of Trump’s big actions in his first year have been met with backlash, with polls showing most voters oppose his tariffs and disapprove of his immigration enforcement actions. And there is smoldering dissatisfaction with President Trump’s economy, especially regarding consumer prices.
President Trump has acknowledged that midterm elections could be difficult, pointing out in a speech to Republican lawmakers in early January that the party that controls the presidency typically loses seats in Congress. Four of the past five presidents, including President Trump in 2018, lost their House majority in their second year in office.
“I want you to explain what’s going on in the minds of the people, because…we have the right policies,” President Trump said on January 6.
Democrats highlighted affordability concerns amid a series of strong election results across the country last year, including gains in Republican-leaning seats in red states such as Iowa, Florida and Tennessee. President Trump has been desperate to cut costs, but the issue overshadowed other priorities last year, made worse by the president’s efforts in recent weeks to postpone or lift some tariffs on certain consumer products.
Florida Republican Sen. Rick Scott, a close Trump ally, said he expected there to be a big push toward affordability because people are concerned about “the cost of everything.” “I think a lot of things will happen outside the White House because very little can pass through the White House,” he said.
President Trump’s exclusive strategy
The president kicked off 2026 with two high-profile social media posts, vowing to ban institutional investors from buying single-family homes and pushing to cap credit card interest rates at 10% for one year.
“Affordable!” President Trump declared when announcing the credit card, even as some Republicans argued that it was impossible.
This word has been repeated over and over again this year. Whether President Trump can make progress on this issue will be a major factor in the midterm elections. Some of Mr. Trump’s allies are holding back. Stephen Moore, an economic adviser to Trump’s 2016 campaign, said capping credit card interest rates goes against free market economics and could make it harder for poor people to get credit.
“As a free market economist, one of the first principles of economics is that government regulation of wages and prices is almost always a bad idea,” Moore said, adding that the best way to address affordability is to grow the economy. When praising President Trump’s economic policies, Moore cited GDP growth and Trump’s tax cuts.
Republican House Speaker Mike Johnson also questioned the credit card proposal, saying it could have “negative fallout.”
“I don’t get too excited about out-of-the-box ideas,” the Louisiana Republican said on Jan. 13.
Short described Trump’s proposal as “pure socialist economics” in line with progressives such as Vermont independent Sen. Bernie Sanders and Massachusetts Democrat Warren.
President Trump and progressives working together to pass populist policies that appeal to both the left and the right would be a notable development for the former reality TV star, who voted as a Democrat for many years before winning the White House as a Republican in 2016.
But Short said he doubted there would be a bipartisan agreement and said Democrats would not want to give Trump a legislative victory.
Trump’s efforts to publicly pressure industries and individuals, from “threaten Powell to lower rates” to calling on credit card companies to pressuring oil companies to invest in Venezuela, show that the president will continue to use every power possible, Short said. Much of President Trump’s 2025 agenda is set out by executive order, and 2026 may be similar.
Bills that must be passed
As a Jan. 30 deadline approaches to pass essential legislation to fund federal agencies, Mr. Trump and lawmakers face the possibility of another government shutdown. Making that happen will again require some bipartisan support from the president and the Republican Party, especially in the Senate.
What is possible beyond that is uncertain. Lawmakers are also debating health care legislation as premiums rise after Affordable Care Act subsidies expire. President Trump recently announced a health care plan, and White House officials said the president will soon unveil a housing plan without slowing his frenetic pace.
Another administration official who spoke with USA TODAY rejected the idea that the administration has significant unfinished business. President Trump and Republican leaders included many of their priorities in a bill the president signed on July 4 that included tax cuts and spending cuts, including health care. Republicans believe that once Americans begin to feel the impact of the tax measures this year, affordability concerns will ease some.
President Trump is finding it increasingly difficult to win over Republicans who are starting to look ahead to his re-election bid. Two bills opposed by President Trump, extending the ACA tax credits and blocking further military action in Venezuela, have garnered notable Republican support this year, with Republicans strongly criticizing Fed Chairman Jerome Powell’s criminal investigation.
So is the Trump administration, as lawmakers ponder what will happen in the midterm elections. White House officials said immigration legislation is unlikely to pass because the issue is highly political.
President Trump has recently shown interest in issues with bipartisan appeal, but his aggressive instincts could soon overshadow his administration’s message.
US involvement in Venezuela remains a major issue for the foreseeable future. President Trump has threatened further military action in Iran amid anti-regime protests. He has also increasingly talked about gaining control of Greenland, which is opposed by longtime U.S. allies and many Republicans. One Republican congressman said he could even vote to impeach President Trump if he persists in his second year.
Contributor: Francesca Chambers
