Among Recent Bills, Financial Reform a Lone Plus for Congress

Most Americans oppose four other prominent legislative acts

PRINCETON, NJ — The financial reform bill President Obama signed into law in July is the most popular of five major pieces of legislation Congress has passed in the past two years — in fact, it is the only one tested in a recent USA Today/Gallup poll that a majority of Americans support.

Six in 10 Americans approve of the legislation to strengthen government regulation of the financial industry. By contrast, a majority disapprove of the 2009 economic stimulus package, the auto industry bailout, healthcare reform, and — most of all — the 2008 banking industry bailout.

Financial reform does best due to a relatively high level of support from Republicans — 42% approve of it — as well as majority support from independents. Independents join Republicans in mostly opposing the other four legislative initiatives tested. Democrats, on the other hand, approve of all five, although to varying degrees.

Of the five legislative acts, healthcare reform and the economic stimulus package are the most politically divisive. By contrast, financial regulatory reform, as well as aid to automakers and banks, sparks more similar reactions from Republicans and Democrats.

Bottom Line

Congress’ approval rating has been stalled at or below 20% for most of this year, down from 39% in March 2009 — and recent Gallup polling finds Americans no happier with the Republicans than with the Democrats in Congress. While some of this may be due to unavoidable fallout from the prolonged economic downturn, it may also represent an accumulation of public discontent with the more prominent spending and policy programs Congress has made law. Wall Street regulatory reform stands alone as a major legislative accomplishment that congressional incumbents would be wise to tout as they campaign for re-election this fall.