logo
The Political Realignment Has Arrived. Republicans Are in Danger of Blowing It.

The Political Realignment Has Arrived. Republicans Are in Danger of Blowing It.

Politico2 days ago

On the hilly streets of Hazleton, Pennsylvania, tucked into the anthracite coal region that once powered America's industrial revolution, an expanding group of newcomers go about their daily lives in Dominican-inflected Spanish: running small enterprises, working in the region's booming logistics and warehousing industries, and sending WhatsApp messages to friends and relatives back in the Bronx and on the island. They're chasing their version of the American dream in this small, now-majority Hispanic city, as did the Italian, Irish and Slovak immigrants who came before them.
They are the voters who powered Republican victories up and down the ballot in the country's largest swing state in November. And our party is on the verge of losing them.
Since beginning my career as a Republican strategist in my home city of Philadelphia in 2016, I have been nearly alone among state Republicans in consistently advocating for outreach to this growing group of voters. My firm, which has worked on both local and national campaigns, has produced the only statewide outreach to Hispanic voters for three cycles in a row, putting boots on the ground and messages over the airwaves.
It's been a striking failure of vision. As a party, we have tended to think that reaching these voters directly would be nice, though not necessary for most campaigns. Now, in light of the 2024 results, it's clear that this outreach is essential.
Pennsylvania's 600,000 Latino voters helped send Donald Trump to the White House for a second term, played a key role in electing a GOP majority in the Senate, and kept the House in Republican hands by flipping two districts, including the ancestrally Democratic U.S. House seat that includes Hazleton.
But these voters, after turning sharply right in 2024, are strongly disapproving of the president's performance several months into office, if recent polls are to be believed. April surveys showed cratering approval ratings among Hispanic voters who had shifted so dramatically, with just 27 percent approving of Trump's job performance, according to the Pew Research Center. The New York Times/Siena College poll echoed these findings several weeks later, with just 26 percent of Hispanic voters approving of Trump's tenure.
It is tempting for Republicans to scoff at polls, but even if the topline voter approval is wrong, the significant drop in approval rating still matters. And both the polls and my conversations with would-be Hispanic Republicans in Pennsylvania show a clear drop-off. It should be a blaring alarm bell for the GOP as the 2026 midterms appear on the horizon.
The slide in support makes sense — it's because these voters aren't hearing any semblance of a positive message from the GOP. On immigration and the economy, two core issues for these mostly working-class voters, it's doom and gloom on English and Spanish media, even as Republicans notch successes in securing the border and lowering energy costs.
Immediately after the election, the GOP ceded the debate on the main messaging channels for Hispanic voters — radio, television, and digital — to the left. It's an enormous, unforced error. The deportation of Kilmar Abrego Garcia, for example, has dominated the media over larger efforts to target criminal gangs and secure the border — initiatives that are broadly popular among Hispanic voters.
Republicans must show up in the places and on the platforms where our next voters are getting their information to push back on leftwing narratives and gain an advantage on the issues, from securing the border to lowering costs. A Spanish-language campaign on humane border enforcement, for example — particularly one elevating Hispanic voices who are benefitting from newfound border security — would do wonders for the GOP brand. But we've abandoned the playing field, failing to make these voters a central focus by sharing our message on Spanish-language media, booking even limited advertising in Hispanic communities, or developing our farm team of Latino elected officials and spokespeople.
A great number of Pennsylvania's Hispanic voters are moderate or conservative, came to America the right way, and do not share such far-left fantasies as dissolving our borders, defunding our police, or teaching elementary school children that gender is a construct — something I heard over and over again in my conversations with voters last year. They will be with us going forward if we reach them with openness and respect.
The political realignment has arrived, and with it a Republican Party that is more diverse and working-class than anybody alive has ever witnessed. In Pennsylvania, the Republican path to victory has meant increasing margins from a shrinking group of rural white voters, holding down Democrats' margins in the state's booming suburban communities, and making quiet inroads in diverse, urban areas like Allentown, Reading and North Philadelphia, where Latino voters turned out more Republican than the city as a whole last November. It's a combination that, if done right, can turn Pennsylvania red for years to come.
But if the new GOP majority was forged in Hazleton's modest streets, and in communities like it across Pennsylvania's ' Latino Belt,' there has been little recognition of it among the Republican political class. Since Trump's shock victory in 2016, and the 'Blue Wave' midterm that followed two years later, the operative phrase among GOP political operatives has been 'win back the suburbs.'
While Republicans clawed back some ground in the suburbs last year, the long-term trends in Pennsylvania's expanding, increasingly transient suburban communities are dire for the GOP: witness, for example, the recent Democratic flip of a wealthy, suburban state Senate district that Trump won handily in November. That means the Republican Party's future is instead a 'MAGA Plus' coalition that will be made — or broken — by Latino voters.
That was the formula for success in Pennsylvania, the only state where two Democratic House seats flipped to Republican in 2024 without the benefit of mid-cycle redistricting; both districts host significant, growing Hispanic voter populations, whose shifts accounted for all or most of the margin of victory for the GOP victors.
That down-ballot shift among Pennsylvania Hispanic voters also played a key role in the narrowest Republican Senate flip in the country — and the only one that happened in a swing state. Newly-elected GOP Sen. Dave McCormick gained his razor-tight margin of victory from those new voters, winning by just under 16,000 votes out of nearly seven million cast.
Democrats recognize all this. As the Philadelphia Inquirer has noted, Pennsylvania has the largest number of competitive races of any state on the Democratic Congressional Campaign Committee target list next year. The road to the House majority, in other words, runs through the Keystone State.
Republicans must understand that the fragile coalition that delivered us narrow congressional control is still nascent. Millions of first-time Republican voters, who are disproportionately from minority communities, are not base voters yet. They must be reached if Republicans wish to hold on to their gains, or even make further advances, in the 2026 congressional midterms.
Republicans in Pennsylvania and elsewhere will be tempted to wait until 2026, but damage is being done right now as potential voters sour on our agenda. We still have time to right the ship, but engagement on community outreach, Spanish-language surrogates, translated communications, and candidate recruitment must begin right now, because every day we don't show up we are losing ground. In the absence of robust, always-on effort, Democrats will fill the void, leading to spiraling discontent.
The first tests of where Hispanic voters stand will occur in November across the Delaware River in New Jersey, where Republicans hope to consolidate historic gains made last year in the off-year governor and Assembly races; in Virginia's statewide elections; and in local races like Pennsylvania's Lehigh County executive race.
Then comes the main event. In Pennsylvania, which will remain the must-win swing state for the indefinite future, the GOP's ability to reelect its two new Republican congressmen in 2026 will be pivotal in determining whether it can keep control of the House. This is also the year that our state's charismatic and ambitious Democratic governor, Josh Shapiro, faces reelection before an all-but guaranteed presidential run.
Shapiro and national Democrats expect turbo-charged turnout from the state's booming, affluent suburban communities to power gains that will fuel them through 2028.
For now, the suburbs are not coming back to the GOP. Republican majorities in the cycles to come will be won and lost on the streets of Hazleton, North Philadelphia, Reading and Allentown, not in the leafy precincts of suburban Philadelphia. Whether Republican insiders understand this math and act on it is the open question that will determine who wins Congress in 2026 — and the durability of our burgeoning multiracial, multiethnic coalition.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The tax break that even fiscal hawks don't want to end
The tax break that even fiscal hawks don't want to end

Politico

time29 minutes ago

  • Politico

The tax break that even fiscal hawks don't want to end

Presented by Editor's note: Morning Money is a free version of POLITICO Pro Financial Services morning newsletter, which is delivered to our subscribers each morning at 5:15 a.m. The POLITICO Pro platform combines the news you need with tools you can use to take action on the day's biggest stories. Act on the news with POLITICO Pro. Quick Fix As Senate fiscal hawks prepare to blow up the House GOP's 'big beautiful bill' for fueling the deficit, there's one item they won't touch: a politically popular business tax deduction that has been widely criticized for lacking broad economic benefit. The deduction for qualified 'pass-through' business income, which is not subject to corporate taxes but instead individual income tax, was included in the 2017 Tax Cuts and Jobs Act. The vast majority of businesses in the U.S. are pass-through entities — sole proprietorships, partnerships, and LLCs among others — and it's estimated that 43 percent of the workforce was employed by them, as of 2021. The House megabill would slightly increase the so-called Section 199a deduction, which is set to expire at the end of the year, and make it permanent. But doing so would amount to a fairly significant government revenue hit –– almost $820 billion over 10 years, according to the congressional Joint Committee on Taxation. The resistance to ending the deduction illustrates how difficult it will be to scale back the megabill while negotiations take place over the 1,000-page reconciliation package, even for an item that critics say offers few economic gains. Tax policy experts and economists argue that the program primarily rewards the wealthiest business owners. But even for the most fiscally minded Republicans, the political stakes are too high to consider a world without the deduction. Sen. Ron Johnson (R-Wis.), one of the Senate's most vocal critics of the House GOP megabill, said he's not concerned about the federal revenue decrease the deduction is estimated to cause. 'I've said repeatedly I would just extend current tax law, because had we been smart enough back in 2017 to use current policy, none of this would have expired already, and we need to return that kind of certainty,' said Johnson, who pushed for the deduction in the original TCJA. Sen. Rand Paul of Kentucky, another Republican who has been critical of the megabill, said he still supports the small business deduction. And Sen. Mike Rounds (R-S.D.) said the deduction 'is a very important part of the bill' that he believes will be included when it's passed and would be part of 'a major win.' The House bill would allow individuals, trusts and estates to deduct up to 23 percent of qualified business income from taxable income, up from the current 20 percent threshold. Tax policy experts said they expect Congress to make the measure permanent but were surprised at the increase in the deduction. The White House is also backing it. And the small business lobby is confident the deduction will be enshrined in a final reconciliation bill. Even with overwhelming political support, critics across the small business and economic policy universe say the provision is costly, susceptible to tax avoidance, and won't stimulate the economy. 'Frankly, to me, it sort of just seems like an extra tax break for certain types of taxpayers that doesn't seem particularly warranted from a policy perspective,' said Miles Johnson, a senior attorney adviser at the Tax Law Center at NYU Law. Samantha Jacoby, the deputy director of federal tax policy at the nonpartisan Center on Budget and Policy Priorities, said there aren't any advantages to increasing and making permanent the pass-through deduction. The policy has 'created a big wedge' between business owners and employees who are now paying a higher tax rate than their employers. 'Despite being almost universally panned by economists and other tax policy experts,' the influence of politically powerful businesses located in every district is part of the reason the provision is popular and pervasive among Republicans, Jacoby said. Economic growth is one of the main arguments for proponents of the deduction, but policy experts disagree. Economists say there's a lack of evidence from the original deduction that there was any boost to real economic activity or employment that came from the pass-through business rate cut. 'I would categorize 199A as a business tax cut that is not pro-growth,' said Kyle Pomerleau, a federal tax policy senior fellow at the American Enterprise Institute. 'It is a policy that I think generally loses a lot of revenue for no good reason.' IT'S THURSDAY — Any small business, insurance or financial services tips please send to your MM host at khapgood@ And, as always, send your tips, suggestions and personnel moves to Sam at ssutton@ Driving the day The SEC's Investment Management Division hosts a conference on 'Emerging Trends in Asset Management' with speakers including Commissioner Hester Peirce beginning at 9 a.m. … The SEC meets at 10 a.m. … House Small Business holds a hearing on 'How Private Equity Empowers Main Street' at 10 a.m. … House Financial Services holds a hearing on data privacy at 10 a.m. … Fed Governor Adriana Kugler speaks at the Economic Club of New York at noon.. The Urban Institute holds a virtual discussion on 'rent reporting as a pathway to credit building' at 12:30 p.m. … The Peterson Institute for International Economics holds a virtual discussion on industrial policy for Asia and the Pacific at 5 p.m. … In The Economy First in MM: New research from the Committee on Capital Markets Regulation, which has members in the finance, business, law, accounting and academic worlds, found no effect on consumer prices across sectors from having competing firms with common investors. The study looked at 52 industries, representing the majority of GDP, over a 24-year period (2000-2023), per our Victoria Guida. The finding comes as some Republican state attorneys general are alleging in a lawsuit that Vanguard, BlackRock and State Street have violated antitrust laws by colluding to reduce coal production. The market's mixed — Bonds rallied and stocks finished mixed after weak economic data boosted investors' confidence that the Federal Reserve will cut interest rates in the coming months. Services activity unexpectedly contracted in May, according to the Institute for Supply Management purchasing managers index, while ADP data showed 37,000 jobs were created, the slowest pace of private-sector hiring in more than two years, the Wall Street Journal reports. Department of Labor staffing shortage raises CPI concerns — Some economists are beginning to question the accuracy of recent U.S. inflation data after the federal government said staffing shortages hampered its ability to conduct a massive monthly survey, the Journal reports. What small businesses are saying — As the Senate mulls changes to the 'big, beautiful bill,' small businesses are raising red flags about the uncertainty pertaining to both taxes and trade. More than 90 percent said that certainty and predictability in the federal tax code are important to their financial planning, according to the latest Goldman Sachs 10,000 Small Businesses Voices survey. More than 35 percent said they were feeling negative effects from tariffs and another 38 percent said they expect to feel the effects of those policies in the future. Fifty-one percent said they would be unable to take out a loan at current interest rates. TRADE CORNER More Carney-Trump negotiations on steel and aluminum — Ontario Premier Doug Ford is urging Canada's prime minister to retaliate against the United States after it doubled tariffs on steel and aluminum imports. But Prime Minister Mark Carney is holding off, arguing that he's close to striking a new trade deal with President Donald Trump, Mickey Djuric reports. On The Hill Senate Banking's planned megabill cuts — Senate Banking Committee Republicans are preparing to propose provisions that would change Federal Reserve employees' pay scale and zero out the Consumer Financial Protection Bureau's funding as part of the Senate version of the GOP megabill, according to a committee staff memo obtained by POLITICO, Jasper Goodman reports. The big, beautiful national debt — Trump is pursuing an agenda that would add trillions of dollars to the soaring national debt, ignoring warnings from Wall Street, Republican deficit hawks and his outgoing cost-cutting champion, The Post reports. CRYPTO CORNER JP Morgan to take crypto as collateral — JPMorgan Chase & Co. plans to let trading and wealth management clients use some cryptocurrency-linked assets as collateral for loans, a major step by the largest U.S. bank to make inroads into an industry that Trump has pledged to support, Bloomberg reports. Pro-crypto dems look to delay market structure markup — House Financial Services Democrats who are open to backing GOP-led cryptocurrency legislation are pressing committee Chair French Hill (R-Ark.) to delay a vote on his sweeping market structure bill, saying they need more time to negotiate changes, Jasper reports. At the regulators SEC opens the door — The SEC is weighing an overhaul to decades-old rules outlining what types of foreign companies trading in the U.S. should be subject to a lighter-touch reporting regime, our Declan Harty reports. Fed's top bank cop gets confirmed — The Senate on Wednesday confirmed Trump's pick to serve as the Fed's top official overseeing banks, installing a key regulator who is poised to advance the administration's financial deregulatory agenda, per Michael Stratford. Senators voted 48-46, along party lines, to confirm Fed Gov. Michelle Bowman as the central bank's vice chair for supervision. Atkins eyes long-time trading executive for SEC — Chair Paul Atkins is eyeing Jamie Selway, a former Wall Street executive who has advised cryptocurrency firms, to lead his trading and markets division, according to two people familiar with the matter who were granted anonymity to discuss the still-private deliberations, Declan reports. The AIC's private credit pitch — The American Investment Council released a new report by EY that estimates private credit investments have supported companies with more than 811,000 employees — more than 200,000 of whom are in the manufacturing sector. Jobs report Rustin Finkler joined Early Warning Services as a director for public affairs communications this week. Prior to joining EWS, Rustin was a managing director at Vision360 Partners, a public relations firm, where he worked on public affairs and communication plans for clients like the Consumer Bankers Association. He is also a Penta Group alum. Kari Heerman will join the Brookings Institution's economic studies program as a senior fellow and director of trade and economic statecraft on Aug. 11. Heerman, who was previously acting chief economist at the State Department, will lead a new effort to expand and coordinate cross-program work already being done at Brookings.

How Hard Will Musk Fight Republicans' Budget Bill?
How Hard Will Musk Fight Republicans' Budget Bill?

New York Times

time30 minutes ago

  • New York Times

How Hard Will Musk Fight Republicans' Budget Bill?

Can Musk kill the budget bill? Elon Musk hasn't stopped criticizing the budget bill that he has called a 'disgusting abomination.' In fact, he appears to be just getting started. The debate in Washington now is how far Musk will go to try to defeat a bill that — by the assessment of Musk, several Republicans and now nonpartisan watchdogs — will vastly add to the federal debt. 'KILL THE BILL,' Musk posted on X on Wednesday, a message he urged followers to press with members of Congress. He has turned a majority of his feed into a stream of reposts of content criticizing the legislation and denouncing its effect on the nation's $36 trillion debt load. A string of assessments suggest that the bill will add to the debt. The most consequential, the nonpartisan Congressional Budget Office, estimated that the House version of the plan would add $2.4 trillion over the next decade, given both the roughly $3.8 trillion tax cut at its core and additional spending. (Other estimates are even higher, including the Penn Wharton Budget Model's: $2.8 trillion.) A Republican counter: Attack the messenger. The Trump administration advanced hard-to-believe claims about C.B.O. staff members' partisanship, and arguments that its analysis ignores projected economic growth. That said, a previous nonpartisan analysis of the House bill found that the tax cuts would generate nearly no additional economic growth, and even conservatives found the budget office's analysis credible. 'When all the models are in unison,' Erica York, the vice president for federal tax policy at the Tax Foundation, told The Times, 'it really doesn't make sense to triple down on the strategy to blame the scorekeeper.' Want all of The Times? Subscribe.

The parade of presidential pardons is a perversion of justice
The parade of presidential pardons is a perversion of justice

The Hill

time31 minutes ago

  • The Hill

The parade of presidential pardons is a perversion of justice

There are all sorts of checks and balances baked into the Constitution. But one power sits above the law, untouched by Congress, immune to the courts and utterly unaccountable: the presidential pardon. It is the kind of absolute authority you'd expect in a monarchy, not a democracy. The Founding Fathers thought they were building a system of justice with a human touch — where a president, guided by conscience and compassion, could offer mercy to someone wrongfully convicted or genuinely reformed. The pardon was supposed to heal wounds, not reward political allies or well-heeled donors. Nice idea. Too bad it hasn't always worked out that way. Gerald Ford pardoned Richard Nixon after Watergate to help the country move on. It was controversial, sure, but Ford was acting on principle, not personal gain. Contrast that with Bill Clinton, who — on his way out the door — pardoned Marc Rich, a fugitive tax cheat whose ex-wife just happened to be a generous Clinton donor. That wasn't mercy. That was transactional politics. Joe Biden used his final hours in office to pardon his son, Hunter, and other family members — along with a few preemptive pardons aimed at blunting potential charges from a future Trump administration. That's not justice. That's insurance. And then there's Donald Trump. Where to begin? Trump opened his second term — on the first day, no less — by pardoning about 1,500 people involved in the Jan. 6 Capitol riot. Among them were thugs who assaulted police officers. Then came the pardon parade: Reality television fraudsters Todd and Julie Chrisley. Former Rep. Michael Grimm (R-N.Y.), who lied on his taxes. A corrupt sheriff in Virginia. A Nevada politician who pocketed money meant for fallen police officers — and used it to pay for plastic surgery. A nursing home operator who stiffed the IRS out of $10 million. Trump even tossed a pardon to former Illinois Gov. Rod Blagojevich (D) — the same Blagojevich who tried to sell off Barack Obama's Senate seat like it was a used car on Craigslist. Blago, by the way, was also a contestant on Trump's 'Celebrity Apprentice' show. Imagine that. Trump's pardon lawyer — yes, he has one of those now — summed it up with a slogan that belongs on a bumper sticker: 'No MAGA left behind.' That's not a legal doctrine. That's a loyalty program. When presidents start handing out pardons like party favors to friends, donors or political cronies, it's not only the opposite of what the Founding Fathers had it mind, but it also sends a very loud and dangerous message — that the law doesn't apply equally. That who you know matters more than what you did. That justice is just another game for the powerful to rig. And when Biden pardons his own son and Trump pardons his loyal foot soldiers, what are we left with? A pardoning arms race, a perversion of justice that turns the most sacred executive power into a blunt instrument of politics and payback. So why should we care? Because once the ideals put forth in the Constitution become tainted by raw politics — once they're bent, twisted and ignored by the very people sworn to uphold those ideals — the entire democratic experiment begins to buckle. The presidential pardon was meant to show mercy, not mock the law. But in the hands of men more interested in self-preservation and political payback than in public service, it becomes just another tool for corruption. And telling ourselves that 'both sides do it' doesn't make it any less sleazy. Bernard Goldberg is an Emmy and an Alfred I. duPont-Columbia University award-winning writer and journalist. He is the author of five books and publishes exclusive weekly columns, audio commentaries and Q&As on his Substack page. Follow him @BernardGoldberg.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store