Anticipating the potential impact of the midterm elections on congressional investigations

A change in control of the House of Representatives or Senate following the midterm elections could have significant consequences for companies across a variety of sectors—including banking, healthcare, media and technology, energy, cryptocurrency, artificial intelligence (AI), and prediction markets. 

If Democrats prevail in taking control of either chamber, their margin is likely to be narrow, and with a divided government, there are unlikely to be many opportunities for significant legislative action.  A new Democratic majority, with the subpoena power that comes with committee control, is expected to focus intensely on oversight.  Democrats have signaled that they will devote the bulk of those efforts to investigating President Trump and other senior officials, but that focus may also extend to companies and individuals that have negotiated settlements with the White House or that are perceived as having benefited from executive actions that may come under congressional scrutiny.  Those that have communicated with the White House or Executive Branch agencies also may find themselves on the receiving end of committee requests, especially to the extent the Executive Branch refuses to comply with Democratic committee requests for documents and those committees see recourse to the private sector as a more productive investigative route. 

Beyond the Executive Branch, the likely chairs of future Democratic committees have indicated that they will be focused on investigations of issues involving affordability, technology, defense and cryptocurrencies—issues that may be central to their agenda as we progress toward the 2028 presidential election.

Congress’s investigative powers 

Congress has broad authority to conduct investigations.  In Trump v. Mazars USA, LLP, the Supreme Court confirmed that although Congress has “no enumerated constitutional power to conduct investigations or issue subpoenas,” each House has the power “to secure needed information in order to legislate,” including by issuing subpoenas.[1]  This power to obtain information from both the Executive Branch and nongovernmental parties is “broad” and “indispensable.”[2] 

House and Senate committees and subcommittees may conduct investigations using voluntary requests or compulsory subpoenas, with private parties commonly acceding to voluntary requests in an effort to avoid the issuance of a document subpoena or the threat of a subpoena for testimony.  Congressional subpoenas can carry significant weight for their recipients, including because of the increased publicity that may attend them and the desire of many recipients to maintain positive relationships with particular committees, subcommittees, or members.  Public testimony can also raise acute public relations concerns.

Threats of a subpoena from a committee or subcommittee majority have teeth.  As the Court in Mazars explained, a congressional subpoena is generally valid if it is “related to, and in furtherance of, a legitimate task of the Congress.”[3] The subpoena must serve a “valid legislative purpose, and must “concern a subject on which legislation could be had.”[4] Most House and Senate committees’ rules delegate the power to issue subpoenas to the committee’s or subcommittee’s chair, in addition to allowing a majority vote of the committee or subcommittee to authorize the issuance of a subpoena. This places enormous power in the chairs and is one reason decisions regarding committee and subcommittee assignments can be consequential.  Committees can compel various actions via subpoena, including the production of documents, participation in nonpublic videotaped depositions, and appearance for public testimony.

While congressional subpoenas are compulsory, enforcement at times may prove complicated.  Given the pressure on most private parties to cooperate with a congressional investigation, and in particular to comply with a committee or subcommittee subpoena, the need to resort to such enforcement is rare.

Likely focus in the House 

Republicans currently possess a narrow majority in the House, holding 218 seats compared to Democrats’ 212.  As 218 constitutes a simple majority, Republicans will need to continue to hold 218 seats to retain control of the chamber.  Democrats, for their part, will need a net gain of at least six seats to take control of the House.  Historically, the president’s party loses an average of 28 House seats in first-term midterm elections, with the president’s party having lost some number of House seats in 18 of 20 midterm elections since 1964. 

Speaker of the House

If Democrats are successful in November, it is likely that Hakeem Jeffries (D-NY) will serve as Speaker of the House.  Jeffries currently serves as the House Minority Leader, and he has held the position with unanimous caucus support.  He has no current challenger. 

Jeffries has signaled his party’s intended use of its investigative powers should the Democrats succeed in retaking the House, noting in a recent profile that “in the context of accountability, we’ve got to move fast and aggressively.”  Jeffries’s primary focus is likely to be the Trump administration and alleged corruption involving the administration—including, for example, media companies or executives who are alleged to have succumbed to pressure by the administration to influence coverage.  Jeffries has also stated more broadly that he plans to focus on affordability as a centerpiece of his party’s policy agenda.  This may translate into investigations in a number of areas, including:

• Healthcare and, in particular, the rising costs of care and prescription drugs;
• Energy and the rising costs of utility bills; and 
• Housing and the cost of living.

Education and Workforce 

If Democrats gain control of the House, Robert C. “Bobby” Scott (D-VA) may be elected chair of the House Committee on Education and the Workforce.  Scott is the current Ranking Member of the committee and has held a position of leadership on the House Committee on Education and the Workforce since 2019. 

Under Scott’s leadership, committee priorities are predicted to center around the following areas:

• Educational institutions that entered into settlement agreements with the Trump administration, including where those agreements impacted institutions’ efforts to foster diversity; 
• Pharmaceutical companies that entered into agreements with the administration to regulate drug prices in select markets, including due to concerns of self-dealing; and 
• Companies that employ wage or hourly workers, including a focus on wage and hour protections to protect workers’ rights, and oversight of companies suspected of labor law breaches or union busting.

Energy and Commerce 

The House Committee on Energy and Commerce will likely be chaired by Frank Pallone (D-NJ) if the Democrats gain control of the House.  Pallone currently serves as the Ranking Member of the committee and has served in a leadership position on the committee since 2015. 

Pallone has signaled the following priorities should he assume the chairmanship of the committee: 

• Pharmaceutical companies, including companies that entered into pricing agreements with the White House, companies that produce infant formula, and companies involved in food labeling;
• Companies involved or perceived to be involved in surveillance pricing, including algorithmic pricing;
• Social media companies, particularly products and services used by children; 
• Offshore drilling and oil companies, including those pursuing development in the Atlantic Ocean; 
• Data centers, on which Pallone has previously called for a national moratorium;
• Media companies, including companies suspected of suppressing views that are contrary to the administration; and 
• Other companies perceived to have involvement in corruption with the administration.

Financial Services

Maxine Waters (D-CA) will likely again chair the House Committee on Financial Services if Democrats win a majority in the House.  Waters has served as the Ranking Member and has held a position of leadership on the committee since 2019.  When previously chair of the committee, Waters held numerous high-profile hearings with leadership from top financial institutions.   

Under Waters, possible committee priorities include:

• Cryptocurrency companies and ventures, including a focus on tokenization, as well as a focus on crypto companies perceived as having enriched the president or his family;
• AI and its potential impacts on the privacy and financial security of consumers and small businesses; and
• Oversight of financial institutions generally, including with respect to purported predatory lending and apparent restrictions on certain charitable donations. 

Judiciary Committee 

Assuming Democratic leadership in the House, Jamie Raskin (D-MD) likely will be elected chair of the House Judiciary Committee.  Raskin is the current Ranking Member on the Judiciary Committee and was unanimously elected to that role. 

Under Raskin’s leadership, anticipated committee priorities could include oversight relating to the following areas and industries:

• Media and technology companies, including companies suspected of suppressing views that are contrary to the administration, companies that may have shared data with Immigration and Customs Enforcement (“ICE”), and media companies contemplating large-scale mergers that might concentrate media power;
• Prediction markets, especially where they permit betting on elections, government and military activity, and sports;
• Corporate mergers, including a focus on large-scale mergers that might pose antitrust concerns or mergers in which the administration appeared to inappropriately involve itself;
• Companies that may have settled with the Trump administration or had investigations closed by the administration; 
• Individuals that received pardons from the president; and
• Companies or individuals perceived as having been engaged in “pay-to-play” schemes or that otherwise appear close to the administration or the president’s family and their businesses.

Oversight and Reform 

If the Democrats prevail, the House Committee on Oversight and Reform is likely to be led by Robert Garcia (D-CA), the current committee’s Ranking Member.  Based on current signaling, the Oversight Committee is expected to focus its investigations on a variety of sectors and issues, including:

• Recipients of contracts through the Department of War that are purportedly going to entities with alleged ties to the administration;
• Financial institutions that may have facilitated or otherwise been involved in financial investments by members of the administration, including in the defense industry; 
• Companies that may have been involved in transactions with the administration or with Trump-owned or Trump-associated companies, including for suspicion of self-dealing;
• Companies and institutions whose executives may have donated money to the administration or otherwise provided funds to members of the administration, including for suspicions of corruption;
• Institutions and individuals allegedly linked to Jeffrey Epstein; and
• Companies associated with or that have otherwise transacted with ICE.

Ways and Means

The House Committee on Ways and Means is likely to be chaired by Richard Neal (D-MA).  Neal presently serves as Ranking Member and previously served as chair.  Under Neal’s leadership, the Ways and Means Committee is likely to focus on the following areas:

• Companies or individuals who appear to have benefited from tax breaks or settlements under the administration; 
• Pharmaceutical and healthcare companies, including those that entered into agreements with the administration to regulate drug prices in select markets, and a focus on the rising cost of healthcare; 
• Compliance with tax laws generally, in particular by large corporations and ultra-wealthy individuals; and
• Digital assets and their status under federal tax laws.

Strategic Competition between the United States and the Chinese Communist Party 

The Strategic Competition between the United States and the Chinese Communist Party (Select) Committee is likely to be chaired by Ro Khanna (D-CA), who currently serves as the Ranking Member.  The Select Committee on China is likely to focus on the following areas and industries: 

• Companies that are moving production and manufacturing out of the United States and to China;
• Companies perceived to be overly reliant on China or Chinese goods and materials; 
• Financial institutions that have conducted business with Chinese companies, including by underwriting initial public offerings by Chinese companies;
• Chinese or Chinese-affiliated companies that operate in the United States; and 
• AI companies, including those involved in the selling of AI chips to China.

Likely focus in the Senate 

Republicans currently hold a 53-47 majority in the Senate. There are 35 seats up for election in 2026, 23 of which are currently held by Republicans.  Democrats therefore will need to flip four seats to take control of the chamber.  Historically, the president’s party has fared better in the Senate during midterm elections, but there remains a slight penalty on average. 

Majority Leader

If the Democratic Party gains control of the Senate in November, Chuck Schumer (D-NY) is the presumptive candidate to return as Senate Majority Leader, although there has been speculation about electing a new leader.  Schumer has led the Senate Democratic Caucus since 2017, served as Majority Leader from 2021 to 2025, and was reelected leader without opposition after the 2024 elections. 

Schumer has suggested that a Senate Democratic majority would focus heavily on legislation addressing affordability issues—a focus that may portend an investigatory emphasis on private industry.  In particular, Schumer’s housing agenda expressly focuses on “predatory corporations” and institutional landlords, and his energy agenda accuses the Trump administration of “pay-to-play deals” with oil companies.  These are themes that may translate into investigatory requests aimed at landlords, energy producers, and companies perceived as profiting from alleged presidential favoritism. 

Schumer is also likely to pursue an aggressive oversight agenda.  Schumer issued a “Dear Colleague” letter early in this Congress directing the caucus toward aggressive coordinated oversight despite lacking the majority’s tools, and he has joined letters demanding preservation of election-related records and calling for investigations into Department of Justice conduct.  This suggests that, as leader, Schumer may give committee chairs wide latitude to pursue alleged corruption and “weaponization” investigations. 

More generally, Senate Democrats’ stated priorities for a majority track closely with those of their House counterparts.  Like their counterparts, this may translate into additional oversight in several areas, including: 

• The cost of living, with a focus on housing, energy, healthcare, and groceries;
• Healthcare access following Republican reconciliation cuts; 
• Immigration enforcement and ICE; and 
• Alleged corruption and self-dealing within the administration. 

Banking, Housing, and Urban Affairs Committee

Elizabeth Warren (D-MA) will likely chair the Banking, Housing, and Urban Affairs Committee upon a Democratic victory.  Warren presently serves as the Ranking Member.  Under Warren’s leadership, the committee is expected to prioritize investigations into several matters, including:

• The impact of private equity investments in certain companies or industries;
• Bank chartering and supervision decisions perceived as politically motivated; 
• Cryptocurrency ventures connected to the administration; 
• Financial institutions with relationships to regulators in the administration, particularly those that are alleged to have received favorable supervisory treatment; 
• Financial institutions suspected of facilitating Jeffrey Epstein’s transactions; and
• China-linked entities in U.S. markets. 

Commerce, Science, and Transportation Committee

The Commerce, Science, and Transportation Committee is likely to be chaired by Maria Cantwell (D-WA) if Democrats regain control of the Senate.  Cantwell currently serves as the Ranking Member on the committee and previously served as the committee’s chair during the 117th and 118th Congresses.   

Under Cantwell’s leadership, anticipated committee priorities might include oversight relating to the following areas and industries:

• Rising costs to consumers, with a particular interest in the cost of groceries, TV streaming services, cellphones, broadband, and fuel.  Companies that are suspected of engaging in “surveillance pricing” may also be subjected to increased oversight; 
• Prediction markets, particularly as they relate to gambling in professional sports; and 
• Airlines, likely as part of a broader investigation into the Federal Aviation Administration’s safety oversight.

Energy and Natural Resources Committee

If Democrats control the Senate, Martin Heinrich (D-NM) is expected to chair the Energy and Natural Resources Committee.  Heinrich has served on the committee since 2013 and is the current Ranking Member. 

Under Heinrich, possible committee priorities include: 

• Companies and parties involved in President Trump’s recent renovation projects; 
• Increasing energy costs, with a focus on utility companies, data centers, and coal power plants; and
• High gas prices. 

Finance Committee

If Democrats gain control of the Senate, Ranking Member Ron Wyden (D-OR) will likely chair the Finance Committee, a position he held from 2021 to 2025.

Under Wyden’s leadership, the committee is expected to investigate:

• Companies with alleged financial ties to the Trump family, including companies whose regulatory, enforcement or sanctions posture appears to have improved after engagement with the administration;
• Tax settlements and enforcement decisions perceived as politically motivated; and 
• Alleged financing of Jeffrey Epstein’s sex-trafficking operation, particularly with respect to financial institutions and advisors. 

Health, Education, Labor and Pensions (HELP) Committee

If Democrats take control of the Senate, Bernie Sanders (I-VT) is expected to chair the Health, Education, Labor and Pensions Committee. Sanders served as chair of the committee from 2023 to 2025 and currently serves as its Ranking Member. 

Sanders has signaled the following priorities should he chair the committee: 

• AI, particularly with respect to companies that are perceived as utilizing AI to replace workers;
• High healthcare costs, with a focus on health insurance and pharmaceutical companies; 
• Large corporations with significant pay packages for their chief executive officers, especially those which may have benefited from tax breaks in President Trump’s “Big Beautiful Bill”; and
• Companies’ responses to workers’ right to organize.

Judiciary Committee 

With current Ranking Member Dick Durbin (D-IL) retiring at the end of this Congress, Sheldon Whitehouse (D-RI) is the committee’s next most senior Democrat, and he has confirmed he will seek the top spot.  Whitehouse is expected to chair the Judiciary Committee in a Democratic Senate.

Under Whitehouse’s leadership, anticipated committee priorities might include oversight related to the following:

• Department of Justice settlements and enforcement decisions benefiting private parties; and
• Antitrust settlements, particularly within the media and entertainment industry, that may be viewed as politically influenced.

Key takeaways

Given the ever-shifting political landscape, including the potential for unanticipated domestic or international events to have significant electoral impact, it remains to be seen whether the 2026 midterm elections will follow the traditional course and result in a change in legislative control of either chamber. 

If Republicans are able to maintain control, their congressional priorities during the new term are likely to be similar to those of the current Congress, and include areas such as tax reduction, border and immigration enforcement, energy expansion, defense, deregulation, and conservative social-policy issues. 

Regardless of the uncertainty, there are things companies and institutions operating in key areas may consider keeping in mind as we approach the midterms:

• Congressional Democrats have warned that companies engaging directly with the Trump administration, companies or institutions that have entered into settlement agreements with the administration, companies or institutions perceived as close to the administration, or companies otherwise involved in hot-button policy areas should prepare for congressional investigative scrutiny, including the possibility of subpoenas for both documents and testimony.
• Companies should review applicable policies and procedures, such as document retention and anti-corruption policies.
• To the extent a company has received, or does receive, a letter request from the Ranking Member of a committee, consider whether it is valuable to begin laying the groundwork now in the event there is a change in party control and the now-minority request becomes a committee request or the subject of a subpoena.  

Companies and institutions should also keep in mind that responding to congressional requests can be unlike civil litigation or responding to an investigation by an Executive Branch agency, and that there may be unique considerations associated with managing associated risks.  Companies should consider how a congressional response fits into a holistic strategy related to government interactions and public relations—particularly when different branches of government, or even houses of Congress, may take different or even opposing views on a particular issue.  Keep in mind that congressional investigations can also have collateral consequences as to civil litigation, criminal investigations, and other regulatory matters.