Looking to the 2026 midterms and beyond, U.S. Sen. Bill Hagerty says he is optimistic that Republicans will hold their ground — if they stay on message.
“I think what we need to do as Republicans is convey the fact that we understand the affordability issues that Americans are facing, that we’re doing a lot to address that right now,” Hagerty told The Tennessean.
The former economic development commissioner and U.S. Ambassador to Japan, who is seeking reelection this year, said he is confident that Republicans’ efforts to reduce inflation will soon start paying off.
“We’re working responsibly to try to bring affordability under control, and I’m optimistic that we’re going to find ourselves in 2027, past this election, in an economic position that’s
going to be very, very strong,” Hagerty said.
Hagerty spoke with reporters in Waverly, Tennessee, on Aug. 12 after meeting with Humphreys County officials about the area’s ongoing recovery from deadly 2021 flooding. His roundtable, which was closed to media, focused on infrastructure improvements, workforce development and economic growth.
One element of the recovery there, he said, is making affordable housing more affordable. It's a pressing need in Waverly after flooding damaged housing stock.
Last month, the bipartisan 21st Century ROAD to Housing Act became law with Hagerty's support. It seeks to reduce regulatory barriers to new home construction, ends the requirement for mobile homes to be placed on permenent chassis and largely bars large investors from purchasing new single-family homes.
Hagerty is also sponsoring a bill to further streamline permitting processes for housing construction that increase housing costs. His "Freedom to Build Act" would cut what he calls “the bureaucrat tax” by creating state and local incentives to streamline permitting and compliance costs. Trump administration economic advisers determined this year that permitting and compliance costs account for as much as $100,000 in the price of a new single family home.
“That’s a significant price increase,” Hagerty said. “There are certainly things that could be done at the federal level to streamline that … to make it work better for local communities so we can get the cost of housing down.”
Hagerty said he anticipates the Federal Reserve will lower interest rates, something President Donald Trumphas repeatedly called for the Fed to do, but finance analysts do not expect another rate cut until late 2027.
“One of the most critical aspects of affordability here in America is the Federal Reserve rate,” Hagerty said. “The price to purchase a car, whether a new or used car, that payment will come down with lower Fed rates. So I’m optimistic that in 2027, we’re going to see a pretty significant impact having to do with the Federal Reserve’s actions that I think will be in a downward direction.”
As Democrats seek to win back a majority in Congress, Hagerty said colleagues on the other side of the aisle have been unable to get things done as Republicans have held a trifecta, controlling both houses of Congress and the White House.
Republicans were able to prevent another shutdown by extending a temporary funding plan that expires in December, preventing what Hagerty described as Democrats’ strategy to “create utter chaos.”
“The only thing the Democrats have been able to accomplish in the roughly two years that Republicans have had control of the Senate is to shut the government down twice for the two longest periods of time that we’ve seen in recent history,” he said. “So if that’s their accomplishment, I don’t think they’re going to want to stand by that.”
Vivian Jones covers state government and politics for The Tennessean. Reach her at vjones@tennessean.com.
This article originally appeared on Nashville Tennessean: Hagerty optimistic about GOP in midterms, if focus is affordability
