The Quest for Stimulus
Author: Greg Valliere
November 12, 2025
Most Democrats in this town are still stunned after losing the shutdown battle; the underwhelming deal produced this consensus within the party: why did we subject the country to this?
The initial reaction among the Democrats was to fire Senate Minority Leader Chuck Schumer, but that goal has faded for now.
So the Democrats will play defense this winter, fighting to save Obamacare and keep food benefits alive.
Returning House members are likely to pass the shutdown bill later today, although that’s not absolutely certain. But Speaker Mike Johnson is already planning ahead.
Johnson faces a surprisingly ambitious agenda, beginning with a bill next week to ban stock trading by members.
Johnson and his GOP colleagues will have to grapple with Donald Trump, who could complicate the final month of this session. Trump wants stimulus, now.
Sources tell us that Trump feels he was blindsided by the “affordability” issue, which could be a major albatross for the party as the 2026 elections approach.
Trump has floated two major issues — allowing 40 year (or longer) mortgages, and sending $2,000 checks to middle and lower-class individuals, paid for with tariff revenues.
Neither proposal has much of a chance but the tax proposal is a tip-off that Trump will consider tax cuts in an effort to boost the economy. What he really wants is an accommodative Federal Reserve, and he’ll get it.
The Democrats, meanwhile, still don’t have much of an agenda — and the party’s base, furious, will be looking for someone to fire.
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