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Politics
21 October 2025

Cost Of Living Crisis Threatens GOP In 2026 Midterms

With Americans facing soaring bills and record debt, party divisions over economic strategy could reshape the upcoming election.

In the sharp glare of economic anxiety, the cost of living has muscled its way to the center of American politics, threatening to upend party strategies and shake up the 2026 midterm elections. Nowhere is this tension more visible than within the Republican ranks, where Georgia Representative Marjorie Taylor Greene has sounded a public alarm, warning her party that voters’ financial stress could cost them dearly at the polls.

"I can’t see into the future, but I see Republicans losing the House if Americans are continuing to go paycheck-to-paycheck," Greene told Semafor in a recent interview, as the U.S. government’s budget impasse stretched into its third week, leaving federal workers unpaid and the public’s patience wearing thin. Her words echoed a growing sense of unease, not just among her MAGA supporters, but across the political spectrum. With U.S. credit card debt reaching an all-time high in October 2025, Greene’s warning felt less like partisan posturing and more like a weather report for a gathering storm.

Greene’s critique of her own party has become increasingly pointed. She’s lambasted the GOP leadership for refusing to negotiate bipartisan healthcare reforms—especially as Democrats make insurance premium concessions a sticking point—and slammed repeated votes on short-term spending bills as “a complete failure.” In her words: “That is something I’m really disgusted with. It’s an America Last strategy, and I don’t know whose strategy that is, but I don’t think it’s a good one.”

Her willingness to break with party orthodoxy has surprised even seasoned political observers. Once a stalwart in the Trump camp, Greene has lately diverged on issues ranging from the release of the Jeffrey Epstein files to U.S. foreign policy in Ukraine and Gaza. Yet, she insists her loyalty to Donald Trump remains intact, framing her stance as a call for the GOP to return to “America First” priorities and directly address the economic pain felt by everyday citizens.

“Everyone keeps saying I’ve changed, and I’m saying, ‘No, I haven’t changed,’ I’m staying focused on America First, and I’m urging my party to get back to America First,” she told Semafor. Greene’s independent streak—unusual for a figure who once sported a “Trump Was Right About Everything” cap—has prompted speculation about her motives. Some, like Jeff Timmer of the Lincoln Project, see her rebellion as payback for being blocked from a Senate run. “They didn’t want her to run; she’s getting a pound of flesh. ‘You wanted to put your thumb on me and thought I’d just play the loyal soldier? Well, I’m going to defy you on some key things like the Epstein files or healthcare and Medicaid,’” Timmer told The Guardian.

Whatever the motivation, Greene’s rhetoric is tapping into a wellspring of public frustration. According to an Associated Press-NORC Center for Public Affairs Research poll cited by The Cross Section, Americans are increasingly worried about their ability to find good jobs under President Donald Trump’s administration. The economic “boom” promised by Republicans has instead given way to hiring freezes and persistent inflation, with 36% of respondents naming electricity prices as a “major source” of stress and 54% citing the price of groceries. The New York Times recently reported that more Americans are struggling to keep up with monthly car-loan payments, a sign that lower-income families are under growing financial pressure.

The situation is compounded by policy decisions that have rippled through the economy. The Department of Labor, for instance, is considering lowering wages for agricultural guest workers, a move prompted by the disruption caused by immigration crackdowns. As noted in a document uncovered by the American Prospect, these disruptions are “threatening the stability of domestic food production and prices for U.S. consumers.”

Meanwhile, residential electricity rates have soared—up more than 30% on average since 2020 and nearly double the rate of inflation in the past year, according to Wired. Health insurance rates are set to spike in 2026, affecting not only those on Obamacare exchanges but also Americans with employer-sponsored plans. The everyday costs that shape household budgets—energy, food, transportation, healthcare—are all on the rise, and voters are feeling the pinch.

President Trump, for his part, has not shied away from making bold promises. At a 2024 press conference, he declared, “I will immediately bring prices down, starting on Day 1. We’re gonna bring prices way down and we get it done, get it done fast.” Yet, as The Cross Section points out, the reality has been more sobering: prices for staples like coffee have risen 26% since Trump took office. Inflation, which peaked at over 9% in the summer of 2022, has eased, but prices remain stubbornly high compared to pre-pandemic levels. Many Americans still find themselves in the grocery aisle, muttering, “Geez, I remember when that cost $2.99, and now it’s $4.50!”

With the midterms looming, the cost of living is poised to become the defining issue of the campaign. Republicans, as Greene warns, risk being caught flat-footed if they cannot offer concrete solutions. Their current message—“Just you wait, Trump’s policies are going to work. Any day now.”—rings hollow for families watching their bills climb. Democrats, meanwhile, have seized the opportunity to tout proposals such as increasing energy production and eliminating tariffs, or simply hammering home the point that Trump’s economic pledges have yet to materialize in lower prices.

But this isn’t just about political point-scoring. The tension between economic anxiety and broader concerns—like threats to democracy—means that voters are juggling multiple priorities. As The Cross Section notes, “People can be mad about Trump destroying democracy and also mad about the cost of living; the two can reinforce each other.” For now, though, it’s clear that kitchen table issues are rising to the top of the agenda, and politicians who fail to address them do so at their peril.

Some see in Greene’s outspokenness a kind of maverick leadership. As The Atlanta-Journal Constitution columnist Patricia Murphy wrote, “Even if you don’t agree with Greene on everything – or even most things – you have to admire her willingness in this moment to say what is true, even when other Republicans refuse to. Maybe it’s career suicide, or maybe it’s leadership.”

As the country heads toward another pivotal election season, the message from voters is unmistakable: the cost of living isn’t just an economic issue, it’s a political one—and it’s not going away. For Republicans and Democrats alike, the challenge is clear: ignore the pocketbook pain at your own risk.