Inside the Third Way Retreat: How Moderates Aim to Rebuild the Democratic Party

In early February a group of Democratic strategists, elected officials, and political operatives gathered at a retreat organized by the centrist group Third Way. The goal was clear: figure out how to win back working-class voters and chart a path forward for a party still grappling with its identity and message.

The conclusions they reached were candid — and, at times, scathing. The report produced after the retreat laid bare what many moderates in the party have been saying for years: Democrats have lost touch with key segments of the electorate, particularly working-class voters, and much of that disconnect stems from an overemphasis on identity politics, weak economic messaging, and a failure to push back against the most vocal progressive voices.

According to the report, many working-class voters see Democrats as more focused on cultural battles than on the economic struggles of everyday people. The party's messaging often leans too intellectual or politically correct, creating an impression that Democrats are speaking past voters rather than to them. There was particular criticism of the party's attachment to elite institutions like academia and the media — institutions that working-class Americans often view with suspicion.

A striking takeaway was the sense that Democrats have allowed the far left to dictate the party’s image, making it seem more extreme than it actually is. "One of the key ways to win back the trust of the working class," the report stated, "was to reduce far-left influence and infrastructure on the party." That means creating a moderate talent pipeline, pushing back against progressive staffers and advocacy groups that exert outsize influence, and refusing to engage in "ideological purity tests" that alienate mainstream voters.

The friction within the party is not new, but it has become more pronounced in the wake of recent elections. The retreat underscored a growing divide between the Democratic consultant class and the loudest, most progressive voices — a gap that has only widened as working-class support continues to slip away. "In the wake of this election, where it became so evident that the things that the left was doing and saying deeply hurt [Kamala] Harris and down-ballot Democrats," said Third Way’s Matt Bennett, "a lot of people are looking to us, not just Third Way, but the moderates in the party, and saying, ‘We got to do it your way, because the other way ain’t working.’"

Beyond the cultural disconnect, the report highlighted how Democrats have struggled to build economic trust. Many voters, especially in the working class, view the party as hostile to wealth and overly focused on redistribution rather than economic growth. The GOP, on the other hand, has successfully positioned itself as the "aspirational party," appealing to voters’ desire for upward mobility — a narrative Democrats have failed to counter. The report was blunt: voters often feel Democrats care more about the very poor than the struggling middle class.

The solution, according to the retreat's participants, is a shift in both tone and substance. Democrats need to move away from messaging that centers on handouts and instead talk about opportunity, work, and economic empowerment. Policies should be framed in ways that highlight better wages and job creation rather than leaning into phrases that conjure images of government dependency. The party must embrace pro-business, pro-growth language while still holding corporations accountable for abuses — a balance that many strategists feel has been missing.

But the report went beyond just policy prescriptions. It emphasized the need for a broader cultural reset within the party — one that reconnects with American traditions and working-class values. Suggestions ranged from showing up at tailgates and gun shows to embracing patriotic imagery and acknowledging the importance of faith and community. "The party should embrace patriotism, community, and traditional American imagery," the report stated, signaling a deliberate move to reclaim symbols that have too often been ceded to the right.

Another key recommendation was for Democrats to own their failures — particularly in large cities where the party dominates. There was a call for more accountability and a focus on improving local governance rather than reflexively defending the status quo. "The party needs to own the failures of Democratic governance in large cities and commit to improving local government," the report urged. This is a notable shift from the instinct to blame systemic issues without acknowledging the party's role in addressing them.

It’s important to clarify, however, that this retreat was not organized by the Democratic National Committee or the Association of State Democratic Committees. As one noted on social media, "The retreat was hosted by Third Way, a 501c4 group, not a Democratic group. All ideas welcome to rebuild the party, but wanted to make that clear." This distinction highlights an ongoing tension within the party — the struggle between moderates seeking a course correction and the institutional party apparatus that must balance competing factions.

The big question now is whether these recommendations will translate into real change. With former President Trump’s return to the national stage, moderates see an opening to recast the Democratic brand as the reasonable alternative. The selection of Michigan Senator Elissa Slotkin — a moderate who outperformed Harris in most of her state’s counties —to deliver the party's response to Trump's State of the Union tomorrow was seen as a signal that the party is leaning into this strategy.

Ultimately, the Third Way report offers a clear warning. Without a course correction, Democrats risk further alienating the voters they need most. The challenge ahead is finding a way to bridge the gap — not just between the party’s left and center, but between its leaders and the working-class Americans they hope to win back.