Economic factors including energy, housing, and transportation costs have emerged as central issues for voters ahead of the upcoming U.S. midterm congressional elections. According to a Reuters/Ipsos poll from August 2026, 47% of registered voters identified the cost of living as the primary factor influencing their choice of candidate. The focus on affordability comes as consumer price growth reached 3.4% in August, driven by conflict in Iran and subsequent oil market disruptions.
The Federal Reserve implemented its first interest rate hike since 2023 in September 2026 to address inflation, which remains above the 2% target. In response to rising costs, the Cook Political Report has categorized Senate races in Alaska, Iowa, Maine, Michigan, New Hampshire, Ohio, and Texas as toss-ups. Candidates in these states are proposing varied strategies to address price increases in fuel, utilities, and real estate that have occurred since early 2025.
Data from GasBuddy indicates national gasoline prices rose approximately 46% between January 2025 and late September 2026, with some swing states seeing increases of 50%. In Michigan, Democratic Senate candidate Abdul El-Sayed reported residents are paying $5 per gallon for gas and $6.79 for diesel, while his opponent, Republican Mike Rogers, called for suspending gas taxes and a temporary embargo on diesel exports. In Alaska, Republican Sen. Dan Sullivan proposed a diesel export ban, while Democratic challenger Mary Peltola criticized Sullivan for voting for the war in Iran.
Utility and housing costs have also outpaced national averages in several key states. In Maine, electricity rates rose 24% between January 2025 and July 2026, compared to a 15% national increase. In Texas, Republican candidate Ken Paxton and Democrat James Talarico have offered differing plans for managing the impact of data centers on the power grid. Regarding housing, Michigan’s median home sales price rose 23% through August 2026. Proposed solutions in that state range from Rogers’ plan for down payment assistance and new construction incentives to El-Sayed’s proposal to ban algorithmic rental pricing.
These price changes affect the disposable income of renters, homeowners, and commuters who must navigate higher interest rates and utility bills. A Consumer Reports survey found that three-quarters of Americans are concerned that the expansion of data centers will lead to further increases in their energy bills. Additionally, tariffs on goods like lumber, potatoes, and fertilizer are impacting the operating costs for small-business owners, farmers, and ranchers, including in states like Maine and Texas.
The effects of these costs extend to state and federal policy, as candidates debate gas tax suspensions, export bans, and regulatory changes for rental markets. These decisions will determine how infrastructure is funded and how international trade relations, including tariffs on Canada, are managed. Voters will cast their ballots in approximately one month, with the Federal Reserve potentially considering additional interest rate hikes before the end of 2026 depending on inflation trends.