With only a few days left in 2025, Americans should treasure their time with family and friends during the too-busy and too-short holiday season and be excited for what’s in store for next year.

Although my predictions for 2026 come with an asterisk because it is impossible to forecast the future accurately, and black swan events can throw a wrench into everything, here are a few predictions for the year ahead.

Regarding the affordability crisis, the political buzz term of 2025, my inner crystal ball tells me that things should improve for hard-working Americans. For starters, in 2026, lower- and middle-class Americans, those most affected by the chronic cost-of-living increase over the past few years, will receive welcome news when they file their federal taxes and receive a substantial refund.

The Trump administration’s focus on bringing manufacturing jobs back to America should begin to bear fruit as companies break ground on new factories, and the administration’s pro-domestic energy production posture, also known as “drill, baby, drill,” creates high-paying jobs and substantially reduces energy costs.

Overall, the administration’s efforts to refute climate alarmism; end the green energy scam; eliminate unnecessary and onerous regulations; reduce fraud, waste and corruption; and return sovereignty to the states and the people will create a more dynamic, robust and innovation-friendly environment in 2026. As such, I think U.S. GDP growth could exceed 4% next year.

Speaking of the laboratories of democracy, I think 2026 will be a banner year for states with no income tax — such as Florida, Tennessee and Texas — and will continue to thrive and remain a magnet for disaffected people in high-tax states such as New York and California.

I think the great migration from unaffordable blue states to red states will accelerate the following year.

Globally, I think 2026 will be a year of peace, not war. With American military might back in place, I believe bad actors will refrain from engaging in conflicts they know they cannot win.

On the political front, I am going out on a limb. In the 2026 midterm elections, I forecast that the GOP will gain a few seats in the House and Senate. I say this because I foresee the Democratic Party lurching too far to the left during the primary season and nominating a bunch of democratic socialists who will alienate independents and moderates. Democratic socialism might be seductive in Seattle and New York City, but I doubt it will resonate in so-called flyover states.

In the world of education, I think 2026 will be a big year for school choice. In 2025, parental demand for the right to choose what type of school their children attend reached a fever pitch. This year, several states passed pro-parent school choice laws; I predict this trend will continue next year.

Again, these are just predictions, albeit rosy ones in many cases. However, even if only a few of these forecasts come true, 2026 will be great.

Chris Talgo is the editorial director at The Heartland Institute/InsideSources