The American Financial Services Association (AFSA) announced it released a white paper showing that several 2026 gubernatorial, attorney general, and legislative races could change party control in multiple states, potentially influencing state-level financial regulations and access to consumer credit.
According to the AFSA white paper, key battleground states in the upcoming elections include Arizona, Michigan, Nevada, Pennsylvania, and Wisconsin. In Arizona, Democrats have the opportunity to gain control of a legislative chamber for the first time in decades, while Republicans are focused on reclaiming the governor's office. Michigan presents open gubernatorial and legislative seats that could allow either party to achieve trifecta control. Similar high-stakes contests are anticipated in Nevada, Pennsylvania, and Wisconsin due to narrow legislative margins and term-limited governors.
Ballotpedia reports competitive races in Michigan, Wisconsin, Arizona, and Pennsylvania. Some Democratic-held governorships are located in states that have voted Republican in recent presidential elections. This situation creates potential for party changes that could influence regulatory policies and affect the business climate for financial services.
The National Governors Association notes that 36 gubernatorial seats, 30 attorney general offices, and nearly 5,800 state legislative seats will be contested in 2026. Changes in control may reshape state policymaking with implications for credit access, lender oversight, and the regulatory environment for financial services.
Founded in 1916, the American Financial Services Association serves as a national trade association for the consumer credit industry. It represents companies involved in installment loans, vehicle financing, mortgages, and payment cards while advocating for policies promoting credit access and consumer choice. AFSA provides legislative tracking and policy advice to support a robust financial sector.
