More than 8.3 million workers in 19 states received a raise on Jan. 1 due to increased minimum wage policies. According to the Economic Policy Institute, 2026 will mark the first time in the nation’s history that there are more workers in states with a $15 or greater minimum wage than in states with the federal minimum of $7.25. The Wall Street Journal’s Jared Mitovich reports:
The hikes come as voters grow more concerned about stubbornly high prices and the increased cost of living, and as affordability emerges as a political issue likely to play a central role in the 2026 midterm elections. More than two-thirds of people polled by Reuters/Ipsos in October supported minimum-wage increases, including nine in 10 Democrats and nearly half of Republicans.
Workers in Louisiana, who will still receive the federal minimum of $7.25 per hour in 2026, are being left behind.
Expiration of ACA subsidies force tough choices
Federal subsidies that kept health insurance affordable for people who buy coverage through the federal Marketplace expired on Jan. 1. The U.S. House is expected to vote later this month on a measure to extend enhanced premium tax credits, but success is not guaranteed. And the bill faces grim prospects in the Senate. The New York Times’ Reed Abelson explains how many millions of Americans are now struggling to afford crucial coverage:
(W)ithout the enhanced subsidies, many people are seeing the cost of coverage more than double, increasing by hundreds or even thousands of dollars a month, because the tax credits are now in line with what they were before. In some cases, people may no longer be eligible for subsidies because they make more than four times the federal poverty level — about $63,000 annually for an individual. In other cases, they will have to pay much more of the total premium, even if they get tax credits.
Congress’ failure to extend the ACA tax credits is leaving people with tough choices:
Some are deciding to go without health insurance; others are choosing a less generous plan that has lower premiums but requires them to pay thousands of dollars more in out-of-pocket expenses. Still others say they plan to limit what they will make this year so that they can continue to qualify for the remaining subsidies. And like Dr. [Renee Rubin] Ross, some are likely to dip into savings to pay the higher premiums.
Plans to drastically reduce FEMA staff
The Department of Homeland Security is planning to reduce the staff of the Federal Emergency Management Agency by half in 2026. That’s according to documents obtained by the Washington Post. The Post’s Brianna Sacks breaks down the consequences – and legality – of the planned staffing cuts:
Internal agency emails and documents, as well as people familiar with the plans, suggest (Homeland Security Secretary Kristi) Noem is spearheading the drastic reductions, which may impede FEMA’s ability to fulfill its legal obligation to help the nation respond to disasters, according to three FEMA officials. … Under the Post-Katrina Emergency Management Reform Act, the homeland security secretary is prohibited from taking actions that “substantially or significantly reduce the authorities, responsibilities, or functions” of FEMA. “It’s not just unprecedented — it directly contradicts the law,” said a veteran FEMA official who has also worked within DHS.
The staffing reductions will hit the Cadre of On-Call Response and Recovery (CORE), which plays a crucial role in immediate and long-term disaster recovery:
CORE teams partner directly with state and local officials to support ongoing response and recovery after a hurricane strikes or a fire tears through a town. They may move resources from warehouses to hard-hit communities; they process grants and conduct trainings. For example, in a region that includes Texas, Louisiana and more than 60 tribal nations, about 80 percent of the FEMA staffers supporting the area are CORE employees, a former senior official said.
Data center rebellion
Communities across the country are pushing back on the rapid expansion of data centers. The Washington Post’s Evan Halper reports on the drawbacks of these massive projects and how their construction could become a potent – and uniting – political issue:
From Archibald, Pennsylvania, to Page, Arizona, tech firms are seeking to plunk down data centers in locations that sometimes are not zoned for such heavy industrial uses, within communities that had not planned for them. These supersized data centers can usurp more energy than entire cities and drain local water supplies. Anger over the perceived trampling of communities by Silicon Valley has entered the national political conversation and could affect voters of all political persuasions in this year’s midterm elections.
Number of the Day
8 – Number of deaths – per 100,000 residents – in Louisiana from 2021 to 2023 due to malnutrition, which tied for the ninth-highest rate in the nation. (Source: Centers for Disease Control and Prevention via the Washington Post)