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Cost of Living

Why does everything cost so much more — and what, if anything, can government do about it without making things worse?

Each issue breaks into the specific questions Congress actually fights over. Read each position, then head to the interactive version of this issue to mark which reflects your view and build a message to your representatives.

Component 1 of 6
Housing affordability

Public Investment

The housing crisis is a supply failure made worse by federal neglect. Congress should fund a large-scale affordable housing construction program — modeled on the postwar public housing boom — and mandate that communities receiving federal transportation funds allow multifamily housing near transit. Tenant protections, including national rent stabilization, are necessary to prevent the supply surge from benefiting only developers and landlords.

Targeted Relief

The 4-million-unit housing deficit requires both more supply and demand-side relief. Federal grants should incentivize states and localities to legalize density — accessory dwelling units, missing middle housing, transit-oriented zoning — while moderate rent assistance fills the gap for households squeezed now. Housing supply reform is one of the few economic issues where left and right agree on the core diagnosis: we built too little for too long.

Free Market Growth

The housing shortage was created by government, not the market. Zoning laws, permitting delays averaging 18-36 months, environmental review mandates, and union-scale wage requirements have made homebuilding ruinously expensive. The solution is deregulation: pre-approved building plans, by-right permitting, state preemption of exclusionary local zoning, and elimination of regulations that add tens of thousands of dollars to the cost of a new home.

Documented compromise zone
The bipartisan Accelerating Home Building Act (introduced 2025, Sens. Blunt Rochester and Moreno) funds "pattern zoning" — pre-reviewed building designs that streamline permitting. The Yes In My Backyard (YIMBY) movement has achieved real wins in California, Montana, and Florida under both parties: ADU legalization, minimum parking elimination, and transit corridor upzoning have produced measurable new supply.
Accelerating Home Building Act (2025, bipartisan); Realtor.com 2026 Housing Supply Gap Report (4.03M unit deficit); Harvard Joint Center State of the Nation's Housing 2025
Component 2 of 6
Tariffs and consumer prices

Public Investment

The 2025 tariff regime — the broadest since the 1930s — imposed a de facto tax on American consumers averaging $1,000-$2,400 per household in 2025, with the burden falling hardest on lower-income families who spend more of their income on goods. Congress should reclaim its constitutional authority over trade policy and repeal tariffs on consumer goods that have raised prices on clothing, appliances, electronics, and food without producing the promised domestic manufacturing renaissance.

Targeted Relief

Targeted tariffs on strategic industries — steel, semiconductors, pharmaceuticals — can serve legitimate national security and supply chain resilience purposes. Blanket tariffs on consumer goods, however, are price increases paid by American families, not foreign governments. A trade policy that distinguishes strategic sectors from everyday consumer goods would reduce the inflationary impact while preserving the tools for legitimate economic security goals.

Free Market Growth

Free trade has hollowed out American manufacturing, made supply chains dangerously dependent on adversary nations, and suppressed wages for working Americans who compete with foreign labor paid a fraction of U.S. rates. Tariffs are a necessary instrument of rebalancing — painful in the short term but essential to rebuilding domestic productive capacity. Critics of tariffs have been predicting catastrophe for two years; the economy has proved more resilient than advertised.

Documented compromise zone
Both parties have exempted certain consumer goods from tariffs when political pressure became acute — baby formula and children's car seats were exempted from China tariffs after price spikes. A statutory "consumer goods carve-out" process requiring formal review before tariffs are imposed on household essentials would separate strategic trade policy from grocery and utility bill politics.
Yale Budget Lab tariff analysis (Aug 2025); Tax Foundation tariff tracker (2025-2026); Federal Reserve FEDS Note on tariff pass-through (May 2025); Bipartisan Trade Act (various sessions)
Component 3 of 6
Food prices

Public Investment

Corporate consolidation in the food industry — a handful of companies controlling meat processing, grocery chains, and farm supply — has enabled systematic price gouging. The FTC should investigate and break up food sector monopolies. Congress should restore SNAP benefits cut in the 2025 reconciliation bill; food security is the most direct cost-of-living intervention available. A national school meals program removes the highest-anxiety line item for struggling families.

Targeted Relief

Food inflation is driven by multiple factors — energy costs, weather events, supply chain disruption, and corporate consolidation all play measurable roles. The FTC has authority to investigate price-fixing and should use it; simultaneously, reducing energy costs and improving domestic agricultural productivity address the underlying supply constraints. Universal school lunch is a high-return investment with demonstrated outcomes.

Free Market Growth

Food prices rise when energy costs rise — it is that simple. American agriculture runs on diesel fuel and natural gas for fertilizer. The fastest way to reduce food costs is to produce more domestic energy. Corporate consolidation in food processing deserves scrutiny, but price controls and antitrust overreach will disrupt supply chains and reduce the investment that drives agricultural productivity.

Documented compromise zone
The SNAP program — despite partisan battles over eligibility — has documented, bipartisan-supported effects on food security and local economic activity. The 2014 and 2018 Farm Bills both passed with bipartisan majorities and included both commodity support and nutrition programs, demonstrating that the farm coalition can hold across parties when both sides get something they need.
USDA ERS Food Price Outlook 2025-2026; BLS beef prices up 15%, coffee up 19% (Nov 2025); FTC Grocery Competition Report (2024); Farm Bill history
Component 4 of 6
Energy and utility costs

Public Investment

Utility bills are up 12% in 2025, with 124 million Americans facing rate increases — disproportionately in low-income households that spend the highest share of income on heat and electricity. The solution is accelerated deployment of cheap renewables, aggressive weatherization of homes to reduce demand, and low-income utility assistance (LIHEAP) that Congress has systematically underfunded. Electricity demand is rising faster than supply because of data centers — regulators should require them to pay for the grid capacity they consume.

Targeted Relief

Energy affordability requires both supply expansion and grid modernization. Natural gas has been the primary driver of electricity price stability in recent years; premature closure of gas generation before replacement capacity exists raises rates and risks reliability. The Inflation Reduction Act's clean energy tax credits are already driving record renewable deployment — maintaining them avoids stranding billions in private investment while building toward lower long-run costs.

Free Market Growth

The energy price spike is a direct consequence of Biden-era energy restrictions — paused LNG exports, cancelled pipelines, drilling moratoriums, and regulatory barriers that suppressed domestic supply. The U.S. sits on the world's largest recoverable oil and gas reserves. Unleashing domestic production would lower energy costs for consumers and reduce OPEC's leverage over the American economy. Subsidizing expensive renewables raises electricity rates; abundant natural gas lowers them.

Documented compromise zone
Permitting reform — reducing the years-long regulatory gauntlet for new energy infrastructure of all types — has genuine bipartisan support. Sen. Manchin's Energy Independence and Security Act and the subsequent FAST-41 improvements demonstrated that targeted process reform can attract votes across party lines. Faster permitting for solar, wind, gas, transmission lines, and LNG terminals all advance different parties' priorities while solving the same underlying supply bottleneck.
Century Foundation/Protect Borrowers utility cost report (2025, +12%); PowerLines 124M Americans facing rate increases; LIHEAP funding history; Bipartisan permitting reform efforts (2022-2025)
Component 5 of 6
Wages and income

Public Investment

The core of the affordability crisis is that wages have not kept pace with costs for the bottom half of American workers. Congress should raise the federal minimum wage — last increased in 2009 — to at least $17 an hour, indexed to inflation so it never falls behind again. Strengthening workers' right to organize gives them market power to bargain wages toward the actual cost of living. The problem is not that prices rose; it is that wages were too low before prices rose.

Targeted Relief

Real wages have actually recovered for most workers since the 2021-2022 inflation peak — but the gains were uneven, and workers in housing-intensive metro areas face a structural mismatch between local wages and local costs. Targeted measures — childcare subsidies, earned income tax credit expansion, and student debt relief — address the cost squeeze more directly than broad wage mandates that price out entry-level workers in lower-cost markets.

Free Market Growth

The minimum wage debate misunderstands what sets wages: competition for workers, not legislation. The tightest labor market in fifty years produced the fastest real wage growth for lower-income workers in decades — without a federal mandate. Mandating $17 federally prices out workers in rural Alabama the same as urban Seattle, where market wages already exceed $20. State and local variation reflects actual local cost differences; federal mandates erase that signal.

Documented compromise zone
The Raise the Wage Act's regional phase-in proposal — different minimum wages for different regional cost areas — addresses the one-size-fits-all objection. The Earned Income Tax Credit, expanded in the ARP (2021) and partially extended, has consistent bipartisan support as the most direct income supplement for working households without the employment effects of a high minimum wage.
BLS real wage data (2021-2026); Raise the Wage Act (regional variant); EITC expansion under ARP (2021); EPI minimum wage research; CBO employment effects of minimum wage increases
Component 6 of 6
Healthcare and insurance costs

Public Investment

Healthcare is the fastest-rising major cost for American families and is uniquely American in its dysfunction — we spend twice what peer nations spend and cover far fewer people. The ACA enhanced subsidies, now threatened, have cut premiums for marketplace enrollees. The 2025 reconciliation bill's Medicaid cuts will shift millions of uninsured emergency visits onto a system already pricing that uncompensated care into premiums for everyone else. Single-payer is the only structural solution to a system built on cost-shifting.

Targeted Relief

Healthcare cost control requires action on the drivers: hospital consolidation that eliminated competitive pricing, drug pricing that charges Americans 2-3× what other nations pay, and administrative overhead that consumes 30 cents of every healthcare dollar. Extending ACA subsidies prevents an immediate premium spike for 22 million enrollees. The IRA's drug negotiation authority is a start — expand the number of drugs eligible for Medicare negotiation and allow private insurers to use the negotiated prices.

Free Market Growth

Healthcare costs are high because markets are not allowed to work. Certificate-of-need laws protect hospital monopolies from competition; state insurance mandates require expensive coverage even where consumers want bare-bones plans; FDA drug approval timelines keep cheaper generics off the market for years. Deregulation — direct primary care, association health plans, health savings accounts, and interstate competition — creates the competitive pressure that actually lowers prices.

Documented compromise zone
Prescription drug price transparency has consistent bipartisan support — patients and employers both want to know why prices vary so dramatically. The DRUG Act and similar bills requiring hospitals to publish real prices have attracted votes from both parties. The IRA's drug negotiation provision, initially controversial, has maintained support across party lines as negotiated prices came in significantly below market rates.
KFF ACA premium data (2026 spike projections); IRA drug negotiation results (CMS 2025); ACA enhanced subsidy enrollment (21M+ in 2024); OECD health spending comparison data; ACA premium increases from reconciliation bill Medicaid cuts
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