President Riley’s coattails convinced enough Democrats of, if not the validity of the New Covenant, its electoral popularity. Subsequent planks, such as those eliminating the marriage penalty and raising the threshold for the estate tax, were passed without a whole lot of debate. Military funding, especially with regards to R&D similarly sailed through. The president’s desired balanced budget amendment, however, proved to be too much for Senate Democrats to swallow and Riley was forced to finally admit that it would not pass in the face of a Democratic filibuster.
The post-election foreign policy scene provided massive headaches for the administration. The heavy-handed reaction by Israel to the Palestinian Intifada had resulted in an international coalition pushing for a UN force to negotiate a cease-fire and take over administration of the disputed territories. Riley, bucking the trend begun with President Bush, used the United States' Security Council veto and killed the prospect of a UN mission to the region, shoring up support of pro-Israeli Americans and reviving American popularity somewhat in Israel but alienating American allies and members of the Third World who believed that the veto was pure favoritism by Washington and which subsequently began to lobby other permanent Security Council members such as China for support.
The Intifada had effects on other Middle Eastern nations as well. The unwillingness of most Arab governments to antagonize Washington with outright support of the Palestinians proved to be wildly unpopular with the population in many countries, particularly those in Egypt, Algeria and Tunisia, whose authoritarian leaders ruled highly corrupt, economically inefficient regimes with mass youth civilian unemployment. Peaceful protests in Cairo, Algiers and Tunis were ruthlessly crushed, only to be replaced by violent attacks by mobs of angry youths and protesters on the police. Tunisia's government was eventually toppled, but Algeria and Egypt, with military and political backing from Washington, eventually crushed the protests with a combination of mild reforms and mass arrests and "disappearances" of dissidents.
The situation in Mexico had laid bare disagreements between the president and his Mexican counterpart, Marcelo Ebrard. Ebrard's move away from his predecessor Santiago Creel's policy of using the military against the drug cartels and Ebrard's foray into asking for changes in American domestic law aggravated the administration. Riley's administration, in response, doubled down on both its opposition to federal gun control statutes and efforts to decriminalize or legalize marijuana.
The former made its way to the Supreme Court, as part of a challenge by right-wing gun rights activists who sought to challenge California's stringent gun control laws. Banking on the court's liberal wing rejecting the challenge, the administration planned to roll out a bill that could sneak through the cracks the court's moderates (notably Chief Justice Merritt and Justice Dellinger) would, they believed, leave in their ruling allowing for a bill that would rally the troops before the midterm elections and distract from the rumblings of Senate Democrats, who had begun poking even further into lobbyist groups that they felt had gained undue influence on the administration.
The Court's ruling left the administration flat-footed. A sweeping 7-2 rejection of the challenge (with only Riley appointees voting in favor) that firmly rejected the possibility that the party could push a firearms bill acceptable to the Court through caused the administration without a plan for the midterm campaigns and the investigations into lobbyist influence within the administration took center stage. The president's eldest son, Rob Riley Jr., was soon implicated in the scandal, and the president bowed to political pressure and agreed to the creation of a joint congressional and Department of Justice investigation into the administration's ties with corporate lobbyists.
The midterms were a near-disaster for the GOP as the party had to suddenly reverse course and run away from a president whose approval ratings had plummeted overnight. The Democrats gained six seats in the Senate, with the GOP only winning tight races in Montana and West Virginia (owing to the retirement of popular Democratic incumbents and poor candidate selection by the Democrats) and Tennessee, where former presidential candidate Al Gore’s seat had been retaken by Republicans in 2008 only for his replacement Bob Corker to die in a tragic car accident and be replaced by Democratic appointee Mike McWherter- who promptly became very unpopular within both his party and the state.
In the House, the GOP kept control by the barest possible margin- the party won 218 seats to the Democrats’ 217 and kept control, with Speaker Kasich being forced to allow the Democrats unprecedented power for a minority party in exchange for an informal agreement that would keep him speaker throughout the Congress- even if vacancies and special election victories gave the Democrats a plurality or majority...
With his congressional support now gone and his plans for further economic reform scuttled, Riley returned to the traditional presidential domain of foreign relations and pushed strongly for Middle Eastern peace. But between the splintering of the Palestinian leadership and the hard-right tilt of Israeli Prime Minister Ya'alon's government meant that compromise was almost impossible and the president was forced to content himself with limiting the damage of the fighting by pressuring Ya'alon and the leaders of the Palestinian factions to small changes that he hoped could be built on by his successors.
The president's lame duck term saw a small bit of his reputation restored as his son and all but a few members of his administration were exonerated by the joint investigation. Those who were implicated the president promptly fired, giving him enough good will to pass the final part of the New Covenant that would go into law- an increase in the child tax credit and further tax credits to businesses and labor unions that had or instituted policies designed to strengthen their local community...