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August 4, 2026
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Democrats dominate as economic woes take a toll on Trump’s GOP. Takeaways from Election Day 2025

WASHINGTON — Democrats dominated the first major Election Day since President Donald Trump returned to the White House.

And while a debate about the future of the Democratic Party may have only just begun, there are signs that the economy — specifically, Trump’s inability to deliver the economic turnaround he promised last fall — may be a real problem for Trump’s GOP heading into next year’s higher-stakes midterm elections.

Democrats on Tuesday won governor’s races in Virginia and New Jersey, the only states electing new chief executives this year. They also swept a trio of state Supreme Court contests in swing-state Pennsylvania and ballots measures from Colorado to Maine.

Trump was largely absent from the campaign trail, but GOP candidates closely aligned themselves with the president, betting that his big win last year could provide a path to victory this time. They were wrong.

Democrats are hoping the off-year romp offers a new winning playbook, but some caution may be warranted. Tuesday’s elections were limited to a handful of states, most of which lean blue, and the party that holds the White House typically struggles in off-year elections.

Meanwhile, Republicans in Washington may be more excited than Democrats that a self-described democratic socialist will become New York City’s next mayor.

Here’s some top takeaways:

A new Democratic playbook emerges

Democrat Abigail Spanberger won the Virginia governor’s race Tuesday, defeating Republican Lt. Gov. Winsome Earle-Sears to give Democrats a victory heading into the 2026 midterm elections and make history as the first woman ever to lead the commonwealth.

Former Rep. Abigail Spanberger will become Virginia’s next governor — and its first female chief executive — while Rep. Mikie Sherrill won the New Jersey governor’s office by running campaigns focused largely on the economy, public safety and health care.

Early results showed Democrats outperforming their margins from four years ago in fast-growing suburbs, rural areas and even places with high concentrations of military voters.

The Democrats won by actively distancing themselves from some of the Democratic Party’s far-left policies and emphasized what Spanberger described in her victory speech as “pragmatism over partisanship.”

A growing collection of Democratic leaders believe the moderate approach holds the key to the party’s revival after the GOP won the White House and both congressional chambers last year.

Above all, the Democrats in both states focused on rising costs such as groceries, energy and health care, which Trump has struggled to control.

In addition to tacking to the middle on economic issues, Spanberger and Sherrill downplayed their support for progressive priorities, including LGBTQ rights and resistance against Trump’s attack on American institutions. Spanberger rarely even mentioned Trump’s name on the campaign trail.

Both also have resumes that appealed to the middle.

Spanberger is a former CIA case officer who spent years abroad working undercover, while Sherrill spent a decade as an active-duty helicopter pilot for the Navy before entering Congress. Both played up their public safety backgrounds as a direct response to the GOP’s attack that Democrats are soft on crime.

It’s (still) the economy, stupid

Trump and his Republican allies have been especially focused on immigration, crime and conservative cultural issues.

But voters who decided Tuesday’s top elections were more concerned about the economy, jobs and costs of living. That’s according to the AP Voter Poll, an expansive survey of more than 17,000 voters in New Jersey, Virginia, California and New York City suggesting that many voters felt they can’t get ahead financially in today’s economy.

Ironically, the same economic anxieties helped propel Trump to the White House just one year ago. Now, the economic concerns appear to be undermining his party’s political goals in 2025 — and could be more problematic for the GOP in next year’s midterm elections, which will decide the balance of power for Trump’s final two years in office.

That’s even as Trump regularly brags about stock prices booming and boasted about leading a new renaissance of American manufacturing.

About half of Virginia voters said the economy was the most important issue facing their state while most New Jersey voters said either taxes or the economy were the top issue in their state. Just over half of New York City voters said cost of living was their top concern.

It was unclear whether kitchen table concerns weighing so heavily on voters might help break the impasse that has prompted the government shutdown, which has spanned more than a month.

A referendum on Trump

This was the first election since Trump’s return to the presidency and voters rejected candidates and causes aligned with his Republican Party from Virginia and Pennsylvania to Maine and New Jersey. It was, in fact, difficult to point to any significant victory for Trump’s party.

They also expressed strong feelings about the direction of the country under his leadership.

About 6 in 10 voters in Virginia and New Jersey said they are “angry” or “dissatisfied” with the way things are going in the country today, according to the AP Voter Poll. Just one-third said they are “enthusiastic” or “satisfied.”

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