Some respite before the storm? An H1 '26 recap and ’27 preview in policymaking

It may be halftime for the calendar year, but for most state legislatures, active policymaking has largely concluded.

Across states, legislative activity slowed over the last 18 months as budget deadlines competed with policymakers’ attention for broader policy initiatives. Lengthy debates on data privacy and artificial intelligence (AI) consumed significant legislative attention. In 45 states, roughly 1,500 AI-related bills were introduced, but only a fraction became law while several high-profile data privacy proposals stalled before enactment.

Federally, policymaking has likewise been subdued. Election-year dynamics, competing fiscal priorities, international events and broader economic uncertainty have combined to slow proactive legislative activity.

Economically, fundamentals remain sound. Core inflation has stabilized, U.S. manufacturing shows signs of expansion and labor market strength persists. However, policymakers are still concerned about AI’s impact on reshaping the workforce and future employment patterns.

Fiscally, long-term solvency of Social Security is once again at the forefront. A recent Council for a Responsible Federal Budget (CRFB) study* on the 2025 Social Security Trustees’ Report projects the program has prompted renewed discussion around potential reforms, revenue options and workforce participation policies.

Supplemental benefits products are also receiving increased attention from regulators and policymakers as well as demand from employers. Product design, consumer value, wellness-related benefits, and the role coverage can play in helping individuals address affordability gaps and financial protection is expected to receive heightened scrutiny as broader healthcare and workforce-related policy objectives are evaluated.

Looking ahead, the current lull in policymaking is temporary. Once the midterm election cycle is over, focus will return to workforce and employee benefits issues, including healthcare affordability, mental health, Social Security solvency, paid family and medical leave and the evolving role of supplemental benefits in supporting financial security — sure to make for a busy lead up to 2027.

*Analysis of the 2026 Social Security Trustees’ Report, 2026