U.S. adults surveyed in 1999 correctly predicted major shifts for the half-century ahead: the election of a Black U.S. president, civilian travel to space and a warming planet.
The big picture: The turn of the millennium marked a cultural, technological and political inflection point, with Americans anticipating some of the changes that have come to define the 21st century so far.
The Heritage Foundation's Project 2025 was a campaign trail boogeyman for President Trump, but much of it became reality during his first year back in office.
Why it matters: From reshaping the federal government to his push to recognize only two genders, Trump spent much of2025 ticking off items from the conservative wishlist.However, the plan has dozens more action items awaiting his attention in 2026.
The Supreme Court has many pivotal cases lined up for the coming year, many revolving around President Trump's policies.
The big picture: Trump has relied heavily on the court's emergency docket during his second term, using it to block lower court rulings while cases play out.
There are 271,000 fewer federal employees than there were at the start of 2025 — about a 9% drop, per the latest tally from the Bureau of Labor Statistics.
Why it matters: The sharp decline is a result of President Trump's efforts — initially spearheaded by Elon Musk's DOGE — to drastically reduce the size of the federal government.
New tax brackets, higher standard deductions and expanded credits are now in effect — changes that could boost paychecks and lower income taxes for many Americans in 2026 and beyond.
Why it matters: The IRS updates reflect annual inflation adjustments and sweeping tax changes signed into law last summer in the One Big, Beautiful Bill Act (OBBBA), making several provisions from the 2017 tax overhaul permanent.
Many of the key changes of President Trump's flagship first-year legislation go into effect in 2026, along with state-level policy expanding tech and labor protections.
Why it matters: New and amended laws intended to advance or restrict this administration's policies and platforms will affect Americans' wallets, work and entertainment in 2026.
The stock market has achieved a third consecutive year of double-digit gains, with the benchmark S&P 500 index rising 16.4% for 2025. That has happened only five times since the 1940s.
Why it matters: You wouldn't know that based on the vibes on Wall Street, where the three-year-old bull market is being questioned constantly and on a day when stocks ended the final trading session of the year solidly in the red (down 0.74% on Wednesday).
Despite the downbeat mood, strategists see stocks continuing to gain in 2026 thanks to their biggest bet and fear: AI.
The big picture: Broadly, changes from the law pose new obstacles for the poorest of households, but there are potential opportunities for working-class and middle-class Americans — such as extended tax cuts — that are worth keeping an eye out for.
