As early as Monday, according to Politico, President Donald Trump is expected to issue an executive order that will look like smart politics on its face, but itâs really a sign of the presidentâs political weakness.
Trump âplans to revive an effort to dramatically slash drug costs by tying the amount the government pays for some medicines to lower prices abroad, three people familiar with the matter told POLITICO. Early next week, Trump is expected to sign an executive order directing aides to pursue the initiative, called âmost favored nation,â for a selection of drugs within the Medicare program.â
Lowering prices is smarter than raising prices, which Trump has spent more time doing with his tariff orders.
But deeper into the story, we learn why Trump is trying to lower prescription drug prices by executive order: He canât get Republicans in Congress to do it. Politico reported:
White House officials initially pressed congressional Republicans to draft in their megabill a âmost favored nationâ provision tying the cost of medicines in Medicaid to the lower prices developed countries pay abroad.
But that bid ran into opposition across the GOP conference and is unlikely to be included in the legislation, said one of the people familiar with the matter.
The White House is instead now expected to try to advance the drug price proposal on its own, using existing authorities to impose its âmost favored nationâ model.
Only four months into his term, when a presidentâs political capital should be at its most plentiful, and with Republican majorities in both chambers of Congress working on a filibuster-proof budget reconciliation bill, Trump is incapable of winning support for a cherished policy proposal.
Government intervention in the drug market does not come readily to most congressional Republicans. But most have been willing to run interference for Trumpâs decidedly unconservative tariff regime, refusing to strip his tariff-setting powers. The previous Republican president, George W. Bush, successfully pressured most Republicans to add a prescription drug benefit to Medicare.
Sure, winning that vote required Bush and then-GOP congressional leadership to employ ethically questionable arm-twisting on the House floor, but such tactics seem quaint in the Trump Era. If thatâs all it took to pass a bill, Trump would do it. That the 47th president isnât even trying to do it exposes his waning influence on Capitol Hill.
With the legislative path closed, Trump is resorting to the executive order, which is legally perilous. Trump knows this because he tried to enact âmost favored nationâ unilaterally at the end of his first term, and two federal courts blocked the order on procedural grounds. (The Biden administration abandoned the Most Favored Nation policy, but in the Democratsâ second budget reconciliation billâthe Inflation Reduction Actâmuscled through several other provisions that lower drug costs, including empowering Medicare to negotiate prices. Some argue the most favored nation plan wonât work because the drug companies can game the process.) The pharmaceutical companies will fight Trumpâs order to the hilt and may well succeed in stymying it again.
In effect, Trump blew his political capital on the tariffs, sinking his job approval numbers, and giving congressional Republicans reason to question how tightly they want to tie their futures to his. Trump technically began his term as a lame duck, and now the lameness has started to have consequences.
The big unknown is whether this duck has become so lame that he canât get budget reconciliation passed. A growing threat was spotlighted yesterday by Punchbowl News: the SALT caucus.
SALT refers to the state and local tax deduction, which used to be unlimited, but Trumpâs first-term tax package capped the deduction at $10,000. The cap is a revenue raiser. As it tends to affect high-tax blue states, red state Republicans tend to like it. As it tends to affect upper-income households, some progressive Democrats like it too. But six blue state Republican House members in the bipartisan SALT Caucus really hate it. Five of themâenough to sink the billâsaid this week that they are prepared to vote against any budget reconciliation bill that doesnât significantly raise the cap, though they havenât drawn a red line at a particular number. (Yesterday four House Republicans from New York issued a statement rejecting an offer to raise the cap to $30,000 as an âinsultingâ proposal that ârisks derailing President Trumpâs One Big Beautiful Bill.â)
Why havenât they offered a number? Because the $10,000 cap is due to expire.
According to SALT caucus member Representative Mike Lawler of New York, âIf nothing passes, SALT comes back unlimited, so it is on leadership to offer a number and negotiate from there. We are not negotiating against ourselves.â
Of course, weâve seen many House Republicans talk a big game about bucking leadership and then fold. That may still happen again. But Punchbowl News observed yesterday:
This entire reconciliation package is a snake pit for moderate House Republicans. Some have privately argued to us that theyâd be better off voting against it because of the cuts to Medicaid, SNAP and social programs. But SALT is also an acute and immediate problem that Republicans are nowhere close to solving.
What Lawler said is importantâand is getting lost a bit in the debate over the state-and-local tax deduction limit. The SALT cap will disappear completely at the beginning of 2026 if Congress does nothingâand thatâs precisely what the SALT Republicans want. So these members donât have any incentive to cut a deal.
For a president who was going to be on the ballot again, a House Republican would have more incentive, because such a commander-in-chief could impress upon any member that defeating a major initiative would end their presidency and take down the party, too. For example, in 1993, months into President Bill Clintonâs first term, Senator Bob Kerrey famously held out on a deficit reduction package until the last minute, finally coughing up the deciding vote because âI could not and should not cast the vote that brings down your Presidency.â
Trump canât play that card. Again, that doesnât mean the SALT caucus or any other Republican faction will kill the reconciliation bill. But Trumpâs inability to add his drug price plan to the measure should worry him and remind us that this duck is already lame.

Bill Scher is the politics editor of the Washington Monthly. He is the host of the history podcast When America Worked and the cohost of the bipartisan online show and podcast The DMZ. Follow Bill on X @BillScher.