Trump's Latest Affordability Push: Fifty-Year Mortgages and Cash Payments

Wed Nov 12 2025 22:13:50 GMT+0200 (Eastern European Standard Time)

In a bid to address growing economic concerns and public dissatisfaction, President Trump proposes drastic measures including fifty-year mortgages and $2,000 cash payments sourced from tariff revenues, yet economists warn of potential fiscal pitfalls.

Amidst rising public discontent over economic management, President Trump has unveiled proposals aimed at enhancing affordability for American households, including fifty-year mortgages and $2,000 payments based on tariff revenues. Critics, even within his party, express skepticism regarding the economic viability of these plans, raising concerns about their impact on inflation and the feasibility of funding such initiatives.

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 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 some urgency since his Republican Party's poor performance in last week's off-year elections across a handful of states.

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 his tariffs on foreign imports. The rest of the tariff revenue, he has said, would go to reducing the federal budget deficit.

According to economists, however, the tariff revenue isn't nearly enough to cover the $2,000 rebate plan, even with the most generous assumptions and a narrow definition of those with incomes to qualify. Erica York, vice-president of tax policy at the non-partisan Tax Foundation, stated that If we take something like a cut-off of $100,000 a year in income, the minimum cost would be about $300bn, which would absorb all of the tariff revenue that's been taken in so far and would require some deficit financing.

Moreover, the tariff refunds might end up being counterproductive by driving up prices as more money is pushed into the American economy. It would give large sums of money to households who are more likely to consume that than save it, she noted.

Another of Trump's ideas involves promoting 50-year mortgages – an alternative to the standard 30-year mortgages for American home purchases, which he touts as a way to make home ownership easier for Americans.

Many in his own party view this as beneficial primarily for lenders who will collect bigger fees and more interest. Marjorie Taylor Greene, a Republican congresswoman, said she opposes the move, suggesting it rewards banks while consumers end up paying more in interest over time.

Trump appears to have floated this idea without consulting senior White House advisers, reflecting his willingness to move quickly on new ideas.

He is also proposing to transform government health insurance subsidies, which will expire at the end of the year, into direct cash payments allowing at consumers to negotiate their own insurance.

Although Trump’s suggestions may require congressional approval, his administration has also hinted at initiating investigations into beef prices and collaborating with pharmaceutical companies to reduce drug costs.

While Trump's initiatives are indicative of his instinctive political strategies to address vulnerabilities, translating these proposals into effective economic policies remains a significant challenge amidst prevailing public skepticism.