WASHINGTON (TNND) — Americans are dealing with more stresses to their finances with prices for day-to-day necessities continuing to climb, stretching budgets to the brink and forcing more of them to rely on credit cards to get by, creating risks for the economy and shifting dynamics for the November midterms.
Voter frustrations over the cost of living have continued to simmer as more households see their purchasing power diminish and concerns about being able to land a new job if they were to get laid off mount. Consumer sentiment surveys compiled by economists are at or near record lows in a downshift also being captured in political polling, signaling potential trouble for Republicans once Americans start casting ballots this fall.
Adding to the issues for Republicans is the recent turmoil in Minneapolis after two people were shot and killed by immigration agents, prompting bipartisan backlash that adds to the obstacles facing GOP lawmakers and candidates hoping to prevent Democrats from returning to the majority.
The economy is routinely the top issue for voters when they head to the ballot box and was one of the primary reasons Trump was elected to a second term along with slim GOP majorities. Voters have soured on Trump’s handling of the economy since he retook office last year even with progress on the rate of inflation and continued growth and are instead expecting things to take a turn for the worse.
“The combination of people being dissatisfied with Trump and the Republicans in governing plus economy does not look good for the party,” said Ray La Raja, a political science professor and co-director of the UMass Amherst poll.
The White House has been trying to shift the narrative around affordability with President Donald Trump rolling out all sorts of proposals to get more cash into Americans’ pockets or lower prices through deals with companies. He has been traveling the country making speeches centered around his administration’s economic policies, including a stop on Tuesday in Iowa where he touted tax cuts that take effect this year, progress on inflation and new investments that are all at risk if Democrats retake majorities in the midterms.
Even with lower prices for some groceries and at the pump, inflation since COVID has still pushed prices 25% higher over the last five years. For middle- and low-income households who don’t have investment accounts and appreciating real estate, that has meant stalled financial progress and tough choices on how to manage their finances.
“We got to win the midterms, I mean, I’m here because I love Iowa, but I’m here because we’re starting the campaign to win the midterms, we got to win the midterms,” Trump said. “If we lose the midterms, you’ll lose so many of the things that we’re talking about.”
Trump has also been trying to address the skyrocketing cost of housing in the U.S. through policies aimed at lowering mortgage rates or cracking down on institutional investors from owning single-family homes but is facing a longstanding rut in construction that economists expect to limit progress in improvement even if he can get buy-in from a deeply divided Congress.
Trump has struggled so far to break through to Americans who say they are struggling to keep up even though statistics say the economy is holding up. He has also dismissed the term “affordability” at times as a Democratic-led “hoax” to damage him politically, a sentiment that hasn’t gone over well with some voters.
“Trump is facing the same problem (former President Joe) Biden faced: ‘Do you believe me, or do you believe your eyes?’” La Raja said.
Even though the economy was able to withstand the uncertainties brought by his aggressive use of tariffs, there are still bubbling signs of concern. Businesses have cut down on job creation and hiring, wages are outpacing inflation by a slimmer margin and credit card debt and delinquencies are mounting.
Nearly 20% of Americans in a LendingTree survey said their finances got worse after 2025, with another 60% who say it mostly stayed the same. Wide margins said they are struggling to manage their spending, struggling to contain the costs of necessities like groceries, paying down debt and utility bills that have climbed even with lower oil prices.
“Most Americans didn’t see real financial progress in 2025, and for many, it felt like a step backward. Just paying for groceries, utilities, and other essentials continued to be a real challenge, pushing people to lean on credit cards just to get by. That puts many Americans in a pretty precarious position heading into 2026,” LendingTree chief consumer analyst Matt Schulz said in a release.
Other research has found Americans are being forced to turn to credit cards to keep up with their finances. Almost half of those with a credit card carry a balance, 22% of whom say they don’t think will ever get paid off, according to a recent survey from Bankrate. More than 6-in-10 Americans who have credit card debt have been in debt for at least a year, compared to 53% at the end of 2024.
Part of Trump’s argument has been that his policies will take some time to take effect and what he sees as the disastrous policies of the Biden administration have put the U.S. in a bad position.
“We’ve inherited a mess,” Trump said last week. “And we’ve made it a beautiful, beautiful picture.”
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