I Asked Financial Experts Which Midterm Issues Matter Most for Your Money
Midterm elections may seem far removed from your monthly budget, but decisions made by the officials elected in November could eventually show up in all your key spending areas.
And it’s not only Congress that matters. In 2026, 6,139 state legislative seats or 83% of all state legislative seats nationwide, are up for regularly scheduled election, according to the National Conference of State Legislatures. State lawmakers also make important decisions about taxes, insurance regulation, utility policy and how states implement some federal programs.
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Here are five financial issues worth following through the midterms and into 2027.
1. Taxes and IRS Policy
Tax policy is one of most direct ways election outcomes can affect household finances, but generally only when new legislation changes existing tax rules.
Katherine Johnson, a certified public accountant (CPA) and certified tax resolution specialist with Next Level Tax Resolution, said that the 2026 midterms could influence IRS funding levels. She said that more funding could mean “more auditors and more aggressive compliance campaigns.”
She’s seen this affect clients “who got swept into audit waves after IRS staffing expanded.” Less funding or budget cuts, could swing things the opposite way, slowing timelines and creating backlogs.
2. Health Insurance and Medicaid
Healthcare could also face changes in 2027 due to midterm election results. Enhanced Affordable Care Act (ACA) premium tax credits expired at the end of 2025, and ACA Marketplace enrollment also fell by around 3 million, according to Caroline Welles, executive director of The First Ask. As a result, insurers are proposing another round of sizable premium increases for 2027.
Additionally, new federal Medicaid work requirements are scheduled to take effect Jan. 1, 2027, with states having to implement them.
3. Housing Costs, Property Taxes and Insurance
Housing policies are split among federal, state and local governments, so readers should pay attention to state races as well as Congress.
Anthony Guerriero, a CPA and managing partner at Manhattan Miami Real Estate, said that many housing costs are determined closer to home.
“A midterm result moves Albany and Tallahassee more than it moves Washington,” he said.
He cautioned against assuming an election will lead to immediate changes, however. Americans should watch their own state legislature, governor and local ballot measures, rather than assuming every housing issue will be determined in Washington.
4. Energy and Everyday Household Costs
Electricity costs have become another state-level wallet issue, particularly as data-center growth adds demand to the electric grid. State utility commissions and legislatures can influence who bears these costs and how utility rates are structured, making these races potentially relevant to monthly household bills.
Welles said electricity, and its effects on energy and food, are “the sleeper issue." She said that states take different approaches to utility costs, data-center demand and gasoline taxes, so even sweeping federal policies can translate to different state applications.
5. Estate Taxes and Wealth-Transfer Rules
“For higher-net-worth individuals and business owners, tax and wealth-transfer policy should be high on the radar,” said Blaire Solace, an asset protection and international structuring expert with Asset Protection LLC,
Changes in these areas can alter long-term planning and how beneficiaries get inheritances.
She also said business owners and high-net-worth individuals should review how their assets are titled, where they are held, and how their business and personal assets are structured, “so they can adapt if tax or legal rules change.”
Don’t Overlook Your Statehouse
Midterms aren't only congressional elections. State lawmakers can influence property taxes, health insurance programs, utility regulation and implementation of federally funded programs. And88 of the nation’s 99 state legislative chambers have elections in 2026.
“Congress decided the size of the bill," Welles said. "Your statehouse decides who pays it.
“Don't just watch the Senate map," she added. "Look up who's running for your state house seat.”
Voters pay should attention to what’s already set to change as well as what candidates are proposing. And don’t just watch what happens in Washington; state legislation matters just as much.
Editor’s note on political coverage: MoneyLion is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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