Democrats made sweeping gains in state governments in the midterm elections, taking control of several legislatures and shifting the balance of power across battleground and historically Republican-leaning states. The party took full control in Minnesota and Wisconsin and could pick up more states to earn additional trifectas. That means control of both statehouse chambers and of the governor's office. The wins put pressure on the party to answer to an electorate angry over the price of gas, inflation, affordable housing and the rising cost of living. State governments shape a wide array of policies affecting everyday lives. That included tax rates and abortion rights, school choice and education funding, and data center development.

One week before midterm elections, President Donald Trump is struggling to deliver on his promise to bring down costs. Trump wants voters to overlook inflation, but it's hard to ignore. Filling a basic Ford F-150 with gas now costs about $100, up $30 from a year ago. Mortgage rates have jumped, crushing home sales. Consumer prices have risen faster than paychecks, making families poorer. Voters blame Trump, pointing to the Republican president's tariff policies and the war he started with Iran. Democrats are using this discontent to challenge Republicans in key races, highlighting economic frustrations and rising prices. Republicans have tried to cast Democrats as extreme.

A stagnant housing market hampered by surging mortgage rates, years of soaring home prices and an economy undercut by rising inflation has many sellers stuck in limbo as homes go months without an offer. Many have put their life on hold, unable to relocate for a new job, buy their next home or follow through with other major plans. Sellers are lowering their asking price and offering other incentives to entice buyers. But data showing there are many more sellers than buyers in the market suggests many aspiring homebuyers may not be able to afford to buy with mortgage rates climbing — or that sellers may need to cut prices further to win over buyers.

President Donald Trump is trying to convince voters before the Nov. 3 midterm elections that the U.S. economy is rocketing upward. But voters say inflation remains a challenge as the Iran war has pushed up gasoline prices. Grocery bills remain expensive, and high interest rates make it harder to afford a home or a new car. Trump had promised to quash inflation. While inflation hasn't returned to peaks seen during President Joe Biden's term, it has climbed since April 2025. Interest on the 10-year U.S. Treasury note is above 5%. Meanwhile, the gap has widened between gains for the top 0.1% of households and the bottom half of households.

High fuel prices are making it more expensive to drive, fly and buy some goods more than seven months into the U.S.-Iran war. That's prolonging the strain on American households as the midterm elections approach., The chief economist at Moody’s Analytics estimates the war has cost the average U.S. household the equivalent of almost $2,000, including $1,100 related to energy. Motorists and airline passengers so far have borne the clearest consequences from disrupted Middle East oil shipments. The elevated cost of making and moving goods hasn't translated into across-the-board retail price increases. Shoppers may not be spared indefinitely, though.

The Social Security Administration projects a 3.6% cost-of-living adjustment for older adults and people with disabilities starting in 2027. Some recipients say it won't offset rising prices. This adjustment means $75 extra per month for 73 million Social Security beneficiaries and nearly 7.5 million Supplemental Security Income recipients. Inflation continues to pressure household budgets and savings, and some older Americans feel the increase isn't enough. The Social Security Administration faces a looming bankruptcy date if a funding shortfall isn't addressed by Congress. Lawmakers have proposed measures to replenish the trust funds, including lifting the payroll tax cap to generate substantial revenue.