Parties realign around economic issues after the Republicans accept same-sex marriage and abortion rights in the 2020s. The GOP of 2032 is ideologically where the DLC Democrats were in the 1990s, and the Democrats are to their left, standing about where the pre-Carter Democratic Party was in the late 1960s.
The South becomes more receptive to the Democrats in large part thanks to Democratic economic policy and an emphasis on integrating black, white, and brown working class voters under a single umbrella. The Republicans gradually pick off wealthier minority voters and white professionals, while the Democrats gain with a reinvigorated union movement in the South and Latino voters.