Key challenges faced by third parties in politics include limited funding, lack of media coverage, and the institutional barriers created by the two-party system. These parties often struggle to gain recognition and support, as many voters fear "wasting" their votes on candidates with little chance of winning. Additionally, third parties may face challenges in ballot access and campaign financing. Despite these obstacles, third parties can influence the political landscape by raising important issues, shifting public discourse, and occasionally affecting outcomes in competitive elections, demonstrating the potential for alternative voices in democracy.