Inflation and Trump Backlash Hand Democrats Control of US Congress
Democrats took control of both houses of the US Congress in the November 3, 2026 midterm elections following widespread voter backlash over persistent inflation and executive priorities. Financial institutions, political strategists, and federal legislative bodies are preparing for a divided government after election results shifted majorities in the House of Representatives and the Senate.
Rising living costs and weak candidates drove voter defection across key states
Voters experiencing severe economic hardship from elevated grocery, fuel, vehicle repair, and utility bills turned heavily toward Democratic candidates, according to AP Voter Poll data gathered across all 50 states. In Texas, roughly three-quarters of voters reporting severe financial hardship backed Democrat James Talarico in the Senate race, while about six in 10 voters experiencing moderate hardship also supported him. Nationally, approximately seven in 10 respondents stated that Congress was not doing enough to provide checks and balances on the president, with Donald Trump acknowledging on election night that the Republican base disliked several candidates he had endorsed.
The shifting legislative balance follows years of elevated consumer prices that previously reshaped national campaign strategy during the 2024 presidential election cycle.
