US Midterm Elections 2026: Americans will vote in the 2026 US midterm elections on November 3. The election will decide control of Congress and could affect the laws and financial policies followed during the next two years.
For families, the effect may not come right away. Changes to taxes, Social Security, retirement plans and health savings accounts could depend on what Congress does after the election. Fidelity Investments says a closely divided Congress could make it harder to pass major laws. In that case, executive actions and federal agency rules may get more attention.
Taxes: Temporary Changes Could Matter After 2026
The One Big Beautiful Bill Act passed in July 2025 made most of the existing individual tax rates permanent. It also raised the standard deduction and changed several other tax rules.
Still, some new tax breaks are temporary. The $6,000 extra deduction for people aged 65 and older is available from 2025 through 2028. The new deduction for qualified tips also runs through 2028. The higher SALT deduction limit is currently set at $40,000 for 2025 and is scheduled to apply through 2029 before the temporary increase ends.
CA Ruchika Bhagat, MD, Neeraj Bhagat & Co., said taxpayers should think beyond the election date.
“On taxation, the last major reform already locked in current tax brackets and deduction levels for the near term. The date that deserves genuine attention isn’t this election — it’s 2028–2029,” Bhagat said.
“That’s the real planning horizon, and it’s worth building client timelines around it now.”
Social Security: 2032 Remains a Major Date
Social Security funding is another issue that lawmakers may have to deal with. The 2026 Trustees report says the Old-Age and Survivors Insurance trust fund is projected to have enough reserves to pay full scheduled benefits until the fourth quarter of 2032. After that, continuing income would cover about 78% of scheduled OASI benefits under current law.
Possible changes discussed in Congress in recent years have included raising the benefit age, increasing the amount of earnings subject to FICA taxes or reducing benefits. Fidelity says major reform could still be difficult after the election.
“Social Security reform remains politically difficult,” she said, adding that “Despite the trust fund’s projected shortfall in the early 2030s, I don’t expect lawmakers to act decisively in the immediate aftermath of this election.”
Retirement and HSAs Could See Changes
Retirement policy could leave room for bipartisan work. Fidelity highlights proposals to expand access to workplace retirement plans. One proposal would lower the age for joining an employer retirement plan from 21 to 18.
Health savings accounts could also get attention. Fidelity says lawmakers may consider expanding access to HSAs and allowing them to cover more health-related expenses.
For investors and retirees, Bhagat advised against changing financial plans based only on election expectations.
“Don’t restructure your finances around political speculation. Build your plan on sound fundamentals, and adjust only when actual legislation and not forecasts take effect,” she said.
Her broader message “Elections change the headlines. They rarely change the fundamentals. A sound financial plan is built on discipline, not on predictions.”
