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Cost of Living and Affordability

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, and it needs large-scale federal investment, not just deregulation. A large-scale affordable housing construction program, modeled on the postwar public housing boom, would add supply faster than waiting on local zoning fights to resolve on their own. Communities receiving federal transportation funds should be required to allow multifamily housing near transit, paired with tenant protections like national rent stabilization so new supply doesn't just benefit developers and landlords.

Targeted Relief

The roughly 4-million-unit housing deficit needs both more supply and demand-side relief, and this is one of the few economic issues where left and right actually agree on the diagnosis. Federal grants that incentivize states and localities to legalize density — ADUs, missing-middle housing, transit-oriented zoning — address the supply side directly. Moderate rent assistance fills the gap for households squeezed right now while that supply comes online, since new construction takes years to affect prices.

Free Market Growth

Government, not the market, created the housing shortage, and deregulation is the fix. Zoning laws, permitting delays averaging 18-36 months, environmental review mandates, and union-scale wage requirements have made homebuilding ruinously expensive. Pre-approved building plans, by-right permitting, and state preemption of exclusionary local zoning would cut tens of thousands of dollars off the cost of a new home without new federal spending.

Documented compromise zone
The bipartisan Accelerating Home Building Act funds "pattern zoning" — pre-reviewed building designs that streamline permitting — and the YIMBY movement has produced real, measurable wins under both parties in California, Montana, and Florida: ADU legalization, minimum parking elimination, and transit-corridor upzoning have all added supply without a partisan fight, showing supply-side reform is the area of genuine cross-party agreement even as spending-side questions remain contested.
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, functions as a de facto tax on American consumers that falls hardest on lower-income families. Households absorbed an estimated $1,000-$2,400 in added costs in 2025, with the burden falling hardest on families who spend more of their income on goods. That cost came without the promised domestic manufacturing renaissance materializing at anywhere near the scale claimed.

Targeted Relief

Targeted tariffs on strategic industries serve legitimate national-security purposes, but blanket tariffs on consumer goods are just price increases paid by American families. Steel, semiconductors, and pharmaceuticals are reasonable candidates for strategic tariffs tied to supply-chain resilience. Blanket tariffs on everyday goods, by contrast, are effectively paid by American consumers, not foreign governments, whatever the stated intent.

Free Market Growth

Free trade hollowed out American manufacturing and made supply chains dangerously dependent on adversary nations; tariffs are a necessary, if painful, rebalancing tool. Free trade also suppressed wages for working Americans who compete directly with foreign labor paid a fraction of U.S. rates. Critics have predicted economic catastrophe from tariffs for two years running, and the economy has proven more resilient than that predicted.

Documented compromise zone
Both parties have exempted specific consumer goods from tariffs once political pressure became acute — baby formula and children's car seats were carved out of China tariffs after price spikes — showing a formal "consumer goods carve-out" review process, applied before tariffs hit household essentials, is a workable way to 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 food processing and grocery has enabled systematic price gouging, and Congress should restore the SNAP cuts from the 2025 reconciliation bill. A handful of companies now control most meat processing, grocery chains, and farm supply, giving them real pricing power over consumers with few alternatives. Food security is the most direct cost-of-living intervention available, and a national school meals program would remove the highest-anxiety line item for struggling families.

Targeted Relief

Food inflation has multiple real drivers — energy costs, weather, supply-chain disruption, and consolidation — and the fix has to address more than one of them. The FTC already has authority to investigate price-fixing in the food sector and should use it more aggressively. At the same time, reducing energy costs and improving domestic agricultural productivity address the underlying supply constraints that consolidation alone doesn't explain.

Free Market Growth

Food prices rise when energy costs rise, since American agriculture runs on diesel and natural gas for fertilizer — that's the fastest lever to pull. Producing more domestic energy is the most direct way to bring food costs down, faster than any antitrust action would. Corporate consolidation in food processing deserves scrutiny, but price controls and antitrust overreach risk disrupting supply chains and the investment that drives agricultural productivity.

Documented compromise zone
SNAP has documented, bipartisan-supported effects on food security and local economic activity even amid partisan fights over eligibility, and the 2014 and 2018 Farm Bills both passed with bipartisan majorities pairing commodity support with nutrition programs — real evidence the farm coalition holds across parties when both sides get something they need, which is the same dynamic likely to determine whether the 2025 SNAP cuts get restored.
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 sharply, hitting low-income households hardest, and the fix is renewables, weatherization, and real LIHEAP funding. 124 million Americans are facing rate increases, disproportionately in low-income households that spend the highest share of income on heat and electricity. Electricity demand is rising faster than supply partly because of data centers, and regulators should require them to pay for the grid capacity they actually consume.

Targeted Relief

Energy affordability needs both supply expansion and grid modernization — natural gas and renewables aren't actually in competition here. Natural gas has been the primary driver of electricity price stability in recent years; closing 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, and maintaining them avoids stranding billions in private investment already committed.

Free Market Growth

The energy price spike is a direct consequence of prior-era restrictions on LNG exports, pipelines, and drilling that suppressed domestic supply. The U.S. sits on the world's largest recoverable oil and gas reserves, and unleashing domestic production would lower energy costs 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 — cutting the years-long regulatory gauntlet for new energy infrastructure of every type — has genuine bipartisan support, and prior efforts like the Energy Independence and Security Act and the FAST-41 process improvements showed targeted permitting fixes can attract votes across party lines because faster permitting for solar, wind, gas, transmission, and LNG terminals all serve different parties' priorities while solving the same underlying 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 haven't 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 real market power to bargain wages toward the actual cost of living, rather than waiting on legislation alone.

Targeted Relief

Real wages have actually recovered for most workers since the 2021-2022 inflation peak, but the gains were uneven across regions. Workers in housing-intensive metro areas face a structural mismatch between local wages and local costs that a national number doesn't capture well. Targeted measures — childcare subsidies, EITC expansion, student debt relief — address the cost squeeze more directly than a broad wage mandate that can price out entry-level workers in lower-cost markets.

Free Market Growth

Wages are set by competition for workers, not legislation, and the tightest labor market in fifty years already produced the fastest real wage growth for lower-income workers in decades without a federal mandate. Mandating $17 nationally prices out workers in rural Alabama the same as urban Seattle, where market wages already exceed $20. State and local wage variation reflects real local cost differences that a federal mandate would erase.

Documented compromise zone
The Raise the Wage Act's regional phase-in proposal — different minimum wages for different regional cost areas — directly addresses the one-size-fits-all objection, and the Earned Income Tax Credit, expanded under the 2021 American Rescue Plan and partially extended since, has consistent bipartisan support as the most direct income supplement for working households, since it doesn't carry the same employment-effect risk a high uniform minimum wage does.
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 2026's expired ACA subsidies made that dramatically worse for marketplace enrollees. Average premiums for subsidized ACA marketplace enrollees roughly doubled in 2026, to about $1,904 a month from $888, once the enhanced premium tax credits expired at the end of 2025. CBO estimates about 2.2 million more people will be uninsured in 2026 as a direct result, on top of the 2025 reconciliation bill's Medicaid cuts shifting more uncompensated care onto premiums for everyone else.

Targeted Relief

Healthcare cost control requires action on the actual drivers — hospital consolidation, drug pricing, and administrative overhead — and restoring the expired ACA subsidies is the fastest lever available right now. Administrative overhead alone consumes roughly 30 cents of every healthcare dollar in the U.S., far more than peer countries. Restoring the enhanced premium tax credits that expired at the end of 2025 would reverse the roughly 114% average premium increase subsidized enrollees are now facing, while the IRA's drug-negotiation authority is a start worth expanding further.

Free Market Growth

Healthcare costs are high because markets aren't allowed to work — certificate-of-need laws, state coverage mandates, and slow FDA generic approvals all suppress competition. Direct primary care, association health plans, and health savings accounts give people more choices and more control over what they actually pay for. Interstate insurance competition and faster generic drug approval would apply real competitive pressure that price controls and subsidy extensions don't.

Documented compromise zone
Prescription drug price transparency has consistent bipartisan support, and the IRA's Medicare drug-negotiation provision, initially controversial, has held up across party lines as negotiated prices came in well below prior market rates — but the 2026 ACA premium spike, with subsidized premiums roughly doubling and an estimated 2.2 million more people uninsured after the enhanced tax credits expired, shows drug pricing and coverage affordability are now two separate, both-urgent fronts in the same underlying cost problem.
KFF ACA premium data and 2026 subsidy-expiration analysis; CBO uninsured projection following subsidy expiration; IRA drug negotiation results (CMS 2025); OECD health spending comparison data; 2025 reconciliation bill Medicaid provisions
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