Americans handed Democrats a thumping midterm victory on Tuesday, and with it, a mandate to fix their money problems. In survey after survey, voters voiced their anger over the state of the US economy, especially the cost of essentials like food, gas and housing.

Many voters now expect their newly elected leaders to do something to lower the cost of living and help them save. But it's rarely that simple. Congress can't control markets and GDP growth, much less gas prices and groceries. And while candidates have pledged to push back on tariffs and the Iran war, much still lies in President Donald Trump's control. Nevertheless, elections matter, and the results could have long-term consequences in areas like taxes, retirement, AI regulation and more. Here is what the reversal of power in Congress could mean for your personal balance sheet.

Trump’s signature economic accomplishment was last year’s passage of the One Big Beautiful Bill Act. Democrats won’t be able to unwind the bill’s major provisions, like tax cuts for high earners, since Trump has veto power over legislation. They could act to extend some of the OBBBA’s temporary provisions that they favor, according to Alvina Lo, head of advice, planning and fiduciary services at BNY Wealth.

Those temporary provisions include deductions for a portion of overtime pay and tip income, as well as an additional deduction for taxpayers aged 65 and older. Also on the table is the status of the state and local tax, or SALT, deduction, which is set to revert from its current $40,000 cap to its prior level of $10,000 at the end of 2029. Some Democrats from high-tax states like New York and New Jersey have called for eliminating the SALT cap entirely.

Some state and local results may also have national implications. In California, voters appeared on track to defeat a tax on billionaire wealth and approved a measure making a higher marginal tax rate permanent. That suggests a broad wealth tax like the one floated by Massachusetts Senator Elizabeth Warren and others is unlikely, Lo said, though there’s an appetite at the state level to raise marginal tax rates. Those moves could give wealthy Americans continued reason to leave high-tax states. Those who can’t move will likely keep setting up trusts in states considered tax-friendly, such as Delaware and Nevada, to reduce their state income tax, said Lo.

The financial future of Social Security looms over Washington. The election doesn’t provide a solution, but it strengthens Democrats’ hand in shaping one. Many Democrats want to build a firmer foundation for the program by raising more revenue from (i.e. taxing) high earners, rather than cutting benefits.

A Democrat-led Congress is likely to pursue efforts to expand the universe of people covered by retirement plans. Representative Richard Neal, a Massachusetts Democrat and a chief sponsor of 2022’s Secure 2.0 Act, the last major retirement bill Congress passed, is set to retake the reins at the House Ways and Means Committee, one of the powerful panels with jurisdiction over retirement plans.

Potentially on the docket: expanding automatic enrollment in retirement plans, increasing plan eligibility among part-time and gig workers, and possibly creating a federal retirement account for people who don't have access to a workplace plan.

Democratic control of Congress will also mean a bigger hand in oversight of the Department of Labor, which houses the agency that regulates workplace retirement plans, health insurance and other employee benefits. That could mean an increased focus on strengthening participant protections and less emphasis on easing the way for alternative investments into plans such as 401(k)s.

Regardless of the election outcome, financial planners advise against letting emotion drive portfolio changes. “When someone’s party or candidate loses, the future can feel riskier than it is, and fear drives big decisions: moving to cash, claiming Social Security early or abandoning a plan,” said Eileen Olson, founder of Emerald Wealth. “But big changes take time, require legislation or are often phased in or grandfathered, so there is usually time to adjust.”

Markets tend to like divided government, with the S&P 500 up 1.6% Wednesday, as investors embraced the prospect of a split between Congress and the White House. History suggests that optimism is warranted. Going back to 1950, the S&P 500 has delivered positive returns in the 12 months following every midterm election, regardless of which party won.

Where investors may notice a bigger difference is in individual sectors, specifically in AI. Data-center buildouts may be in for greater oversight as Democrats take control in states and in Washington.

Tougher oversight doesn’t make all AI stocks losers, said Omar Qureshi, managing director at Hightower Signature Wealth. Companies whose fortunes depend heavily on building more data centers — including semiconductor manufacturers, power-equipment suppliers and neocloud providers, which rent out AI computing capacity— could face more pressure. Existing data centers with secured power capacity may become more valuable as new projects get harder to build. Qureshi also sees a potential shift toward established technology companies such as Microsoft Corp., Alphabet Inc. and Amazon.com Inc. that can make money from AI without relying solely on an ever-faster infrastructure buildout.

In health care, Democratic efforts to protect Medicaid and restore Affordable Care Act subsidies could benefit hospital operators by increasing the number of insured patients, while renewed pressure to lower drug prices and tighten Medicare Advantage rules could weigh on drugmakers and insurers, said Lale Akoner, global market strategist at eToro.

Gas prices jumped above $4 a gallon after the US entered the war with Iran and have largely stayed there, helping push overall inflation higher. The election brought some immediate relief in oil markets, with Brent crude tumbling nearly 9% on Wednesday as investors bet the Democratic sweep would increase pressure on Washington to wind down the conflict. Vice President JD Vance himself blamed the war for Republicans’ losses, saying voters wanted it to end.

Democrats can’t end the war on their own, but they can push back on the White House’s $1.5 trillion budget request for the Pentagon and propose an oversight panel to handle investigations into the war with Iran.

Gas prices began edging lower before the midterms. The national average gas price fell 12 cents to $4.12 a gallon from last week, according to GasBuddy, a fuel savings app. Patrick De Haan, head of petroleum analysis at GasBuddy, said in a social media post that it could fall below $4 within a week.

Other household costs remain high too. Consumer prices rose 3.7% in September from a year earlier, up from 3.4% in August. Democrats could challenge Trump’s trade policies, since tariffs are another big driver of inflation. Undoing tariffs with legislation could be tough since Trump has veto power.

Matt Lloyd, chief investment strategist at Advisors Asset Management, expects prices to remain elevated and said food prices could also be volatile due to El Niño’s effect on weather and crop conditions.

Democrats turned housing into a powerful rallying cry on their way to the midterm elections. Their new majorities in both houses of Congress will give them more power to reshape federal housing policy. But they can’t control mortgage rates, now above 7% and the biggest obstacle to easing affordability anytime soon.

Some of the biggest levers to ease the housing crisis rest with Trump. His administration could seek to end the war, which is fueling inflation fears that are keeping rates high, and roll back tariffs imposed through executive action. The administration’s aggressive immigration policies are also putting pressure on builders who rely heavily on foreign-born construction workers, said Mark Zandi, chief economist of Moody’s Analytics.

“The single most direct way to ease the housing affordability crisis is to end the war,” Zandi said. “There is no smoking gun, slam-dunk policy that is going to solve the problem.”The Congress passed its sweeping 21st Century Road to Housing Act designed to increase housing supply but it will take years to bear fruit. Down payment assistance proposals that some Democrats have floated would increase demand, which could in turn drive up costs in markets where supplies are limited. But what the country needs is more newly built homes that are more affordable, and that will take time and smart policy, said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School.

“We need collective action at all levels of government for a solution,” she said. “We need mortgage rates to go down and more affordable starter homes.”In Florida, voters approved sweeping property tax cuts that will begin taking effect Jan. 1. By 2028, the first $250,000 of a home's assessed value will be exempted from most property taxes. The state already has no income tax.