WASHINGTON — President Trump's approval rating fell to 38 percent in a national survey released Monday, marking a new low for his second term. This represents a three-point drop since April and positions him as the least popular second-term president at this point in their tenure since George W. Bush in 2006. The decline immediately weakens his leverage on Capitol Hill as Congress deals with a budget process and key legislative deadlines.
The dip threatens his administration's push for a second round of corporate tax cuts, a top priority for big business. The initial 2017 tax cuts reduced the corporate rate from 35 percent to 21 percent. A new proposal seeks to lower it further to 18 percent. Major industry groups, including the U.S. Chamber of Commerce and the Business Roundtable, have spent over $20 million combined in the first quarter lobbying for these reductions, according to OpenSecrets data. Their influence now faces a steeper climb against a less politically secure White House.
Lobbyists for sectors heavily reliant on deregulation, particularly energy and finance, will find their access and effectiveness diminished. Groups representing the oil and gas industry, such as the American Petroleum Institute, advocated for expanded drilling leases and reduced environmental oversight. These efforts now carry higher political risk, making legislative victories harder to secure. Conversely, environmental advocacy groups and consumer protection organizations gain a stronger position to push back against industry demands.
The political uncertainty adds to market caution, particularly for sectors sensitive to policy shifts. The Nasdaq dropped 0.3 percent Monday, closing at 26,136, while the S&P 500 remained flat at 7,405. Investors monitor shifting political winds for potential impacts on future corporate earnings and regulatory stability. Companies that benefit from specific federal contracts or permits could face increased scrutiny if the administration's legislative agenda falters.
A weakened White House shifts power dynamics toward congressional leaders, particularly within the Republican Party. House Speaker Mike Johnson and Senate Minority Leader Mitch McConnell may exert more independent influence on legislative priorities, especially on appropriations bills and judicial appointments. This scenario opens the door for potential bipartisan deals that could bypass the administration's stated preferences, creating an unpredictable legislative environment for corporate interests.
