The Nov. 8 elections produced some distinct surprises, while also continuing numerous trends seen in recent years across the states. Early pronouncements from incoming and re-elected office-holders suggest that policy decisions will be not only top-down from the federal government, but also bottom-up from localities and spread horizontally from one state to others.
Actions by Congress on issues like health care, such as altering the Affordable Care Act, will directly affect state finances—and impact the work of nonprofits beyond just those providing healthcare. State and local ballot measures on minimum wage and other policies will put pressure on Congress and other states to adjust employment laws—and will affect the work of nonprofits as employers. The spread of trifecta government at the state level—as in one party controlling the governorship and majorities in both the state House and Senate—may escalate a trend among states to adopt austerity budgets and tax plans that undermine their long-term fiscal stability.