Democrats retook both houses of Congress and won several governorships in the 2026 midterms, as voters focused on the economy, especially high living costs, persistent inflation and a slowing jobs market.

Nearly a week after the election, Trump questioned whether the results were honest, citing polling errors and what he called large early-vote “dumps,” and claiming voting machines mattered more than voters.

That was a sharp turn from election night, when Trump told The New York Times he was “totally willing to accept” the results; he offered no evidence of fraud or wrongdoing to support his later allegations.

Republicans have pointed to different causes for the defeat: Vice President JD Vance cited the Iran war, while others blamed tariffs, and voter polling also found corruption was a major concern.

The economy showed mixed signals, with third-quarter GDP growing at a 3.4% annualized rate and consumer spending rising 3.8%, while unemployment stood at 4.2% and September inflation reached 3.7%; inflation-adjusted wages fell 0.7% year over year.

Mark Zandi of Moody’s Analytics described the economy as fragile, citing inflation, a weak labor market and geopolitical risks, as well as growth heavily dependent on AI investment and stock-market valuations.

Housing remains a major cost burden, with mortgage rates above 7% around the election and home prices still high; Murphy argued that easing the crunch requires more housing supply and greater density near jobs.

Faiz Shakir said Democrats should treat the results as an economic mandate, pursuing measures such as lifting the cap on Social Security taxable income, raising the minimum wage, setting guardrails for artificial intelligence and defunding the Iran war.

House Democratic leadership plans to use the new Congress’s first 100 hours to pursue restoration of expired ACA subsidies, reverse Medicaid cuts and challenge Trump-era tariffs, though rolling back tariffs faces significant obstacles.

Even with Democrats in control, major legislation could run into gridlock: Trump has threatened vetoes, Senate Republicans can filibuster, and Democrats lack the votes to override vetoes, making hearings and investigations more likely than sweeping legislative change.

Congressional control will not halt policymaking, since the president can still use executive orders, regulatory discretion, diplomacy and existing trade authorities, subject to oversight, court review and market responses.

Democratic control could bolster support for Ukraine and make Congress less likely to approve a deal that leaves the country short, although Trump may prioritize other foreign-policy issues.