3 takeaways from 2026 election dominated by economic anxiety

WASHINGTON — It was economic angst that propelled President Donald Trump’s reelection two years ago, and it was backlash to his economic policies that led to a blue wave Tuesday, as Democrats won control of the U.S. Senate and appeared poised to win the U.S House majority.

For the past month, Trump campaigned in mostly Republican-led states, looking to shore up voter turnout among his base, but the strategy fell short with an electorate reeling from high fuel prices and rising costs.

Trump campaigned aggressively for Nassau County Executive Bruce Blakeman’s gubernatorial bid, holding three major events in New York, including in Uniondale, but the president’s low approval ratings did not give Blakeman the boost needed to unseat Democratic Gov. Kathy Hochul in a blue state.

Meanwhile, New York Democrats, riding the national "blue wave," are expected to have supermajorities in the State Senate and Assembly after picking up at least a dozen seats — including at least five seats on Long Island. In addition, Democrat Joe Scianablo saw a surprise victory in his race to unseat Republican Hempstead Supervisor John Ferretti.

Long Island voters interviewed by Newsday on Election Day repeatedly said the state of the economy motivated their votes — as the price of gas averaged $4.21 per gallon on Election Day, compared to $2.97 just a year ago, and the inflation rate reached 3.7% this month, 1 point higher than when Trump was reelected.

"I think it was the gas prices," Trump told Fox News in an election night phone interview when asked about the trail of Republican losses.

Here are three takeaways from Tuesday’s election:

It’s the economy ...

Trump’s 2024 campaign message centered largely on his vow to reduce costs for Americans on "Day One" of his return to office — but it was a promise voters said he had largely not delivered midway through his term in office.

The president in recent weeks asked voters to "pretend like I’m on the ballot" — and they did, turning the midterm election into a referendum on his policies.

In exit polls nationwide, voters expressed anxiety over the state of the economy, blaming the president’s sweeping tariffs on imported goods with raising the price of everyday staples, and voicing opposition to his monthslong war with Iran, which economists have said has raised fuel prices in the U.S.

An NBC exit poll of voters nationwide found 75% of voters reported dissatisfaction with the state of the economy, and 65% said Trump’s policies worsened the U.S. economy.

An AP voter poll found 8 in 10 voters surveyed said inflation had caused a "severe" or "moderate" financial hardship.

Despite the economic angst, Trump’s campaign trail messaging in the final leg of campaigning did little to ease voters’ worries. At a campaign rally in Nebraska last month he said the Iran war, and resulting gas price increases, were a "small price to pay" to keep the country safe from the prospect of a nuclear threat.

"Rent, gas, eggs; it’s all getting out of hand," Malik Archer, 30, a registered Democrat, told Newsday after casting his ballot at Berner Middle School in Massapequa on Tuesday.

Olga Belleau, of Setauket, said she came out to vote, in part, because of affordability issues.

"The economy — that’s one of the main issues," Belleau, 85, said outside Arrowhead Elementary School in East Setauket on Tuesday. "You can’t live on Social Security anymore. And the money you have saved is dwindling like never before."

Gridlock ahead, as Trump vows to clash with Democrats

Trump, facing the prospect of Democratic-led congressional investigations into his administration, signaled that he was ready to battle the new majority.

Hours before the election, Trump promised to use his veto powers to block any Democratic bills passed by Congress.

In a phone interview with CBS News on Tuesday evening, the president said he would be "Mr. Veto."

"I have the ultimate power — it's called 'veto,’" Trump told CBS News from the White House where he spent election night huddled with his top aides and cabinet members.

Trump will likely be tussling with fellow New Yorkers Chuck Schumer, who will likely return to his role as Senate majority leader, and Rep. Hakeem Jeffries (D-Brooklyn), who is in line to be the next House speaker.

The president told CBS News that even with the loss of the Republican congressional majority, he believes he still has "tremendous" executive powers to continue shaping federal agencies, boards and commissions that fall under the executive branch.

"We won the Slaughter case, and the Slaughter case gives the president tremendous powers that it never had before," Trump said, referring to the Supreme Court decision Trump v. Slaughter, issued by the court’s conservative majority, that allowed him to fire Rebecca Slaughter, a member of the Federal Trade Commission.

A White House official, granted anonymity to discuss election matters freely, said in an email to Newsday: "President Trump’s resolve to stop the radical left is only going to become stronger. Buckle up."

Wave propels Hochul, Albany Democrats

If anything, the public polls were a little cautious about how the New York governor’s race was shaping up.

Democratic Gov. Kathy Hochul was headed for big victory over Republican Bruce Blakeman, leading 60% to 40%, with nearly 90% of election districts tallied. That’s better than the 14-point lead the latest surveys from Siena University and Quinnipiac University said in October.

Notably, she would be a tad shy of the 62% Democrat Andrew Cuomo received in 2018 — the last time New Yorkers voted for governor while Trump was in office. Still, it was a big showing for Hochul, winning her second full term.

"No one is sending her back to Erie County now," said Hank Sheinkopf, a veteran Democratic strategist, referring to the governor’s modest political beginnings as a county clerk in Buffalo.

But she could be headed for new challenges when it comes to governing in Albany.

The reason? The blue wave also propelled Democrats to historic heights in the Senate and Assembly.

In the 63-seat Senate, they could go from 41 seats to at least 47, pending some very close contests. In the 150-seat Assembly, they should hit at least 109, officials said.

But there is no doubt Democrats will have better than a 2-1 advantage — a veto-proof, or "supermajority" — in each house. They didn’t have that in the Senate during the last two years, when rank-and-file Democrats pushed but failed to get the moderate Democratic governor to move on issues of clean energy goals, nuclear energy, income taxes and more.

Legislators let Hochul have her way on all those topics in 2026. Now, they will have more leverage if they disagree with her — the power to overturn vetoes. Like Hochul, they will feel they have their own mandate, Sheinkopf said.

"She now has an emboldened State Legislature that she, frankly, can either work with or not," he said. "The challenge here will be if she can get the Legislature to stay with her. That’s the great challenge she faces in 2027."

Newsday's Deborah Morris and Sam Kmack contributed to this story.