Navigating 2026: Public Affairs, Policy and the New Business Imperative

As 2026 unfolds, the public affairs environment is defined by complexity, volatility and opportunity. The midterm elections and a significant slate of gubernatorial contests are set against a backdrop of global uncertainty, with implications that will ripple across sectors and regions. In this environment, the ability to anticipate, adapt and act is a business imperative. 

The Midterm Moment: More Than a Political Contest

The upcoming U.S. midterm elections promise to be a pivotal moment, with control of Congress and numerous governorships in contention. The shifting political landscape will influence the pace and direction of policy initiatives, regulatory priorities, as well as congressional and state legislative agendas.  

But the impact of this election season extends beyond who wins or loses. The very process of campaigns, transitions and the recalibration of power will impact policy momentum, potentially stall regulatory initiatives, and create windows of both risk and opportunity. In short: who occupies these seats, and how they wield their influence, will shape the environment for years to come.

States at the Forefront: Innovation and Divergence

While federal gridlock often dominates headlines, the real action in 2026 may be happening in state capitals. With 36 gubernatorial races on the horizon, including in key battlegrounds like Arizona, Georgia, Pennsylvania, Michigan and Wisconsin, states are poised to set the pace on several key issues: 

State-Level Focus Areas & Emerging Trends

• Data Centers & Digital Infrastructure: Competition for investment, evolving incentives and energy policy innovation. 

• Foreign Direct Investment (FDI): Targeted programs to attract global capital and foster job creation. 

• Health Care Policy: Expansion of Medicaid, telehealth and cost containment measures. 

• AI Regulation: Early adoption of AI frameworks, with states like California and Texas leading. 

• Online Safety: New approaches to privacy, child protection and digital governance. 

As federal action is deferred or delayed, states are stepping into the void, creating a patchwork of regulations and incentives. This dynamic environment requires a nuanced understanding of local developments and their broader implications. 

Global Geopolitics: Interconnected Risks and Realignments

Beyond domestic borders, the international landscape is characterized by ongoing geopolitical conflict and economic realignment. Events in Europe and South America, among other regions, are influencing supply chains, market access and investment flows. Production policies at the state level in the United States are increasingly intertwined with these global shifts, particularly for sectors such as manufacturing and agribusiness. 

• Europe: Energy constraints, regulatory changes and trade barriers are prompting a reassessment of supply chain strategies and operational resilience. 

• South America: Evolving trade agreements and market dynamics are shaping export opportunities and regulatory considerations, especially for agriculture and related industries. 

The interplay between global disruptions and local policy responses is creating a landscape where adaptability and foresight are at a premium. 

Embracing Uncertainty & Turning Complexity into Clarity 

If there is one constant in 2026, it is uncertainty. The convergence of electoral volatility, state policy innovation and global disruption means that we will face more questions than answers. Yet, within this uncertainty lies opportunity for those with timely insights and a readiness to act decisively. 

My experience has taught me that the most complex challenges are often the most rewarding to solve. By interpreting shifting signals, building relationships across jurisdictions and responding with agility, it becomes possible to move confidently through times of change. Those able to read between the lines and connect local developments with global trends will be best positioned to turn challenges into actionable strategies.  

This year is poised to significant transitions and transformations. As the public affairs landscape continues to evolve, the ability to anticipate, adapt and engage will be essential. At APCO, we remaincommitted to providing the insights and support needed to navigate this dynamic environment—and to help turn today’s challenges into tomorrow’s opportunities.