By 2395 the Federation is nearly completely dominate of the Alpha Quadrant, Klingons and Cardassia are so close to the Federation that they are more or less consider members by the Romulans and Breens and other Alpha and Beta Squadrons powers. The Federation have several hundred vessels exploring the galaxy using Slipstream drive at any one time.
They have formal alliances with species in the delta, gamma and beta and Alpha Quadrant.
Why the Borg still exists, strategic strikes by the Federation and other species have now kept them contain largely within Borg space. Still a threat but one that is largely consider containable. A long term effort to form a anti borg alliance is being worked on by species across the galaxy, with the Federation hoping to eventually be able to deploy large force of vessels made up of multiple species to push back against the borg anytime they try to expand.
Not everything is so cosy, the Federation hasn't accepted a new member for 20 years. Corruption is said to be growing within the Federation. People resent the vast resources expended to help rebuild Cardassia and to a lesser extent Klingon, whilst major federation members world and colonies still remain battle scarred.
There have been several clashes between the dominion and federation over the years mostly contain to the gamma quadrant. Odo whereabouts are unknown and it presume his attempts to change the changelings and the dominion from the inside has largely failed. The dominion seem to have completely rebuilt it military strength and even grown it since the war. New ship designs are also being reported throughout the gamma quadrant, through it seems the size of their empire has remain largely static. An several planets once known to be affected by Dominion biological weapons has since receive a cure, whether this was from the dominion or another power is unknown. To avoid antagonising the Dominion entry into their space if forbidden, even for intelligence gathering operations.
The romulans have gone quiet again, after the reman crisis and the heavy losses they took during the dominion war, they have retreated mostly back to their borders. They have also withdrew most of their diplomatic staff from surrounding space and expelled most other races diplomats, Spock has also been expelled, along with a large numbers of his followers and supporters. Rumours of a civil war between spock allies and the senate and tal shiar remains unconfirmed. Spock have refuse to comment in public.
The Breen and seemingly unlimited supplies of ships, personnel continue to launch raids into Klingon and Federation space. Why they are contain for the most part, an their raids are quickly pushed back.
Most people think it only a matter of time before the Federation an the Klingons will be in full scale war with the Breens. The only thing stopping a large conflict at the minute is that the Breen energy dampening weapons have since been modified and improve to the point where Federation and Klingon ships are vulnerable to them again.
Rumour of them having adopted Dominion cloning and memory technology to create clones of their soldiers are being circulated.
The Klingons under Martok leadership have made substantial changes to the empire, the warrior class has been trim down, more resources have been thrown into the worker and engineers classes, leading to substantial improvements in both.
A campaign by the chancellor to promote science and medicines careers as being as equally honourable career choices for the young as being a warrior, is also paying off with improvements in all areas of Klingon life.
Martok is considered one of the best and most popular chancellors since Khaless by many.
Wolf is largely consider second to the chancellor only throughout the Klingon space but refuses to take up a formal title. It considered by many in the Klingon government that Wolf orders are to be considered as orders coming straight from the chancellor himself. .
All major players are involved in slipstream research in attempt to replicate starfleet technology. Efforts by Starfleet intelligence has so far prevented other races from successfully developing and adopting this technology. Through the Klingons are known to have a prototype slipstream vessel, it still only capable of short periods in slipstream, similar to the first attempts to use slipstream drive by Voyager, it suffers hull damage each time it is use. Starfleet considers it largely a good thing for the Klingons to have slipstream technology given their strong alliance. Rumours of starfleet helping the Klingons to develop this technology has been deny.