Cost-of-living issues are expected to dominate the 2026 midterms, as a six-figure income no longer guarantees financial comfort in many parts of the United States. According to new research from fintech company MoneyLion, earning around $100,000 annually qualifies as lower-middle class in 12 states.
States Where $100,000 Is Lower-Middle Class
In the top seven highest-earning states—Massachusetts, New Jersey, Maryland, Hawaii, California, New Hampshire, and Washington—even a six-figure salary remains lower-middle class. Massachusetts tops the list, where residents earning $116,476 are still considered lower-middle class. Colorado, Utah, Connecticut, Alaska, and Virginia also make the cut, with Virginia being the lowest-income state in the analysis, where people can earn about $102,000 and still fall into this category.
Economic Anxiety and Inflation
The findings come amid widespread unease over the economy. Only 21% of Americans approve of President Trump’s handling of inflation, according to a recent Reuters/Ipsos poll. Overall approval stands at 34%, with 64% disapproving—the lowest ratings of his second term. A Gallup poll published Tuesday found that 55% of adults believe their financial situation is worsening, driven by rising costs of energy, housing, healthcare, education, transportation, and childcare. More Americans are now worried about their finances than during the 2008 Great Recession.
Impact of the Iran War on Gas Prices
The U.S. war with Iran has further strained household budgets, pushing gas prices to their highest level since the conflict began. On Wednesday, the average price of a gallon reached nearly $4.23, according to AAA. The White House has downplayed the spikes, with assistant press secretary Olivia Wales stating, “The President brought oil and gas prices down to multi-year lows at record speed, and as traffic in the Strait of Hormuz normalizes, these energy prices will plummet once again.” She added that President Trump’s actions have made Americans safer by preventing Iran from obtaining a nuclear weapon.
