Moderate Democrats, whose party aims to regain a majority in the U.S. House of Representatives in November, are offering an alternative to the message of economic populism promoted by more liberal Democrats.
A new blueprint from the center-left New Democratic Party coalition, shared exclusively with CNBC, lays out a roadmap for tackling affordability, an issue voters care about without making flashy populist promises.
“Buzzy sounds good on the surface, but it often leads to unintended consequences and unworkable solutions,” Rep. Brad Schneider of Illinois, chairman of the New Democratic Coalition, said in an interview. “We are hearing from people who are frustrated not only by the big talk but also by the empty promises and want the government to come up with thoughtful solutions.”
On the morning of Friday, January 3, 2025, incoming Congresswoman Sarah McBride (D-Delaware) and Chief of Staff Roddy Flynn (right) walked to the Capitol Rotunda where McBride donned his membership pin before taking the oath of office later that day in the 119th Congress.
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The new plan highlights a tug-of-war within the Democratic Party over its economic message ahead of a crucial November election that could see Democrats return to power after President Donald Trump and his Republican Party win a landslide victory in the 2024 election. And as President Trump’s polls on the economy plummet, choosing a winning strategy could be the difference between making him a lame duck or spending another two years in the political wilderness.
New Democrats argue that Americans want a more moderate approach that bridges the gap between big business and average voters.
“I reject the idea that it’s bad business,” said Rep. Chrissy Houlahan, D-Pennsylvania, one of the planners. “This is a set of solutions, concrete, practical, actionable solutions that answer the question, ‘What are you going to do when you’re in charge?'”
Among the roadmap’s proposals: easing the federal approval process for energy projects to reduce utility costs, loosening housing regulations to build affordable housing faster, and creating a national strategy for data centers that spreads out the “benefits and costs” of facilities and avoids “overburdening” certain areas.
The proposal does not include significant new taxes on the wealthy, caps on credit card interest rates or the creation of a single-payer health care system, which are popular with prominent progressives such as Sen. Elizabeth Warren (D-Mass.) and Sen. Bernie Sanders (I-Vermont).
They, along with state and local officials such as New York City’s new mayor Zoran Mamdani, are pushing for ambitious populist policies that abandon the wealthy. The movement is gaining momentum as the wealthy consolidate at the top and make inroads into President Trump’s own populist base.
“If you have a good idea to reduce costs for families, sign me,” Warren said Tuesday in a brief interview on Capitol Hill when asked about New Democrats’ restraining approach. “But don’t get me wrong. We need big changes. That’s lowering housing costs and universal child care. That’s what makes a big difference in people’s lives.”
During his campaign, Mamdani called for universal child care, especially in New York City. The New Democrats are instead calling for a “federal pilot program that explores cost-sharing partnerships between families, employers, and the government to reduce monthly child care costs.”
Ranking Member Sen. Elizabeth Warren (D-Mass.) speaks with the media before Treasury Secretary Scott Bessent testifies during a Senate Banking, Housing, and Urban Affairs Committee hearing titled “Financial Stability Oversight Council Annual Report to Congress” on Thursday, February 5, 2026, in the Dirk Sen Building.
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But the New Democratic Party, which counts 115 U.S. lawmakers, insists its roadmap is consistent with progressive lawmakers.
“I think this is an issue that can and should unite our caucuses across both chambers and across ideological lines,” said Rep. Sarah McBride (D-Delaware), a member of both the New Democratic Coalition and the House Progressive Caucus. “Americans don’t care whether they’re progressive or moderate; they’re looking for solutions that work for them.”
There are several areas where the New Democratic Party’s roadmap intersects with progressive goals. The New Democratic Party supports the creation of a universal paid family and medical leave program. They also want universal pre-K, a longtime progressive darling priority. And most Democrats agree that reversing President Trump’s tariffs is a top priority.
The report also calls for eliminating “unfair tax breaks for private equity and large investors” in the real estate market, similar to recent progressive calls echoed by President Trump to ban large financial companies from buying up homes.
A majority of voters appear to be dissatisfied with President Trump and Republicans in Congress’ handling of the economy, giving Democrats an advantage heading into this year’s election. A Marist College poll released on February 5 found that only 36% of Americans approve of what President Trump is doing on the economy, compared to a whopping 59% who disapprove.
The root of voter dissatisfaction is that 54% of Americans think lowering prices should be a top priority for the Trump administration, according to a Marist poll.
“For us to get to 218 seats, we’re going to need a lot of progressives elected in districts, and we’re going to need New Democrats elected in the toughest districts,” said Rep. Greg Stanton (D-Ariz.), who runs the New Dem Action Fund, the caucus’ campaign arm, referring to the number of House seats a party would need to win a majority. “This will be the agenda we run with.”
“We can only win this election if independents and moderate Republicans want change. … And that’s where New Democrats come in. We can best appeal to independents and moderate Republicans,” Stanton said.
It remains to be seen whether this strategy will work, and the 2025 off-year election will send mixed messages to Democrats. Abigail Spanberger and Mikie Sherrill, both members of the New Democratic Coalition during their time in the House, sought to win on more moderate policies in Virginia and New Jersey. Progressive Analilia Mejia on Tuesday declared victory over more moderate former Rep. Tom Malinowski in the Democratic primary for Sherrill’s old House seat.
Virginia Democratic gubernatorial candidate Abigail Spanberger joins former President Barack Obama during a campaign event in Norfolk, Virginia, on November 1, 2025.
Steve Herber | AP Photo
What all four had in common was a campaign message focused on affordability.
Democrats also have the unique challenge of trying to win in different districts — Rep. Alexandria Ocasio-Cortez’s New York City district is vastly different from the red district in northern Maine that Rep. Jared Golden has held for the Democratic Party since 2018 — meaning that voters in Congressional races may be influenced more by individual candidates than by a comprehensive national plan.
According to the RealClearPolitics polling average, Democrats have a wide 5.2 point lead in the popular vote, which bodes well for Democrats as the election approaches.
Pollsters note that the debate between progressives and moderates has been a mainstay of the Democratic election cycle. And as long as Democrats offer an affordable alternative to President Trump’s Republicans, it remains to be seen whether individual details of the plan will ultimately matter to voters going to the polls.
“I think it’s going to be helpful for Democrats to see how much of a plan they put out, some kind of message on affordability,” said Matt Taglia, senior director of the Emerson College Polling Center.
“It doesn’t necessarily have to be progressive or moderate, but I think it needs to incorporate some elements of both pragmatic policies with a populist message,” Taglia said.
