WASHINGTON, D.C. — Americans’ confidence in the federal government’s ability to improve their lives dropped sharply in 2026. Forty-three percent of U.S. adults say the federal government is effective at making a positive impact on people’s lives, down eight percentage points from 51% in 2025.
Among the four institutions measured in the Bentley University-Gallup Business in Society survey, this was the largest decline in perceived effectiveness at improving lives.
At the same time, trust in businesses and government institutions to act in society’s best interest declined, while trust in charitable and advocacy organizations was unchanged. Twenty-six percent of Americans say they trust the federal government some or a lot to act in society’s best interest, down five points from 2025 and the lowest of the institutions measured. Americans express higher levels of trust in state and local government (47%), despite a three-point decline, and in businesses (41%), down two points. Trust in charitable and advocacy organizations is substantially higher, at 80%.
The declines in trust and effectiveness between 2025 and 2026 were not evenly distributed across political groups. Among Democrats, trust in the federal government fell from 33% to 21%, and effectiveness ratings dropped from 54% to 41%. Among Republicans, trust increased from 36% to 41%, while their effectiveness ratings held steady. A similar partisan pattern emerged in views of business.
These findings, from the 2026 Bentley-Gallup Business in Society Survey report, are based on a web survey with 3,270 U.S. adults, conducted May 4-11, 2026, using the probability-based Gallup Panel.
Americans View Government as Powerful
The decline in perceived effectiveness has not shaken Americans’ belief in what the government could accomplish. Ninety-two percent of U.S. adults say the federal government has some or a great deal of power to make a positive impact on people’s lives, essentially unchanged from prior years and on par with state and local government (93%) and businesses (88%).
The result is a 49-point gap between the share of Americans who believe the federal government has the power to make a difference and the share who say it is effective at doing so (the widest gap of any institution measured). State and local government shows a 35-point gap, and businesses a 32-point gap. Charitable and advocacy organizations are the only institution whose effectiveness rating (77%) matches or exceeds its perceived power (74%).
Business Holds Steadier but Still Falls Short of Expectations
Perceptions of businesses’ effectiveness declined more modestly, falling four points to 56%, leaving businesses considerably better rated than the federal government, as they have been since the study began in 2022. But Americans continue to see a mismatch between what they expect from businesses and what they believe businesses deliver.
The mismatch is starkest on executive compensation. While 84% of Americans say it is somewhat or extremely important for businesses to avoid a major pay gap between CEOs and average employees, just 15% believe businesses are doing a good or excellent job in this area.
Ethical business practices show a similar shortfall. Nearly all Americans (97%) say it is important for businesses to make money in ways that are ethical, but only 32% say businesses are doing a good or excellent job of it (a 65-point gap).
Bottom Line
Americans have not concluded that their institutions are powerless, but rather that those institutions are underperforming. Strong majorities still believe the federal government and businesses alike have the power to improve people’s lives, even as ratings of how effectively they do so declined in 2026, most sharply for the federal government.
The 49-point chasm between the federal government’s perceived power and performance represents both a warning and an opportunity: Americans believe better outcomes are possible. Businesses remain more trusted and better rated than Washington, yet the public’s expectations (on ethical conduct, sustainability and executive pay, above all) continue to outpace what Americans believe companies deliver. Institutions that close the gap between their perceived power and their performance stand to reclaim the public’s confidence.
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