Democratic control of Congress opens a new phase in the battle over economic policies that drove Tuesday’s broad voter rebuke of President Donald Trump and the Republican party. Once seated in January, Democrats are expected to use their power to investigate Trump’s administration and demand concessions on major legislation. What happens next for Democrats in Congress will test that power.
Congress controls the country’s fiscal purse and ability to borrow. Those are powerful levers Democrats can use to bring Trump to the bargaining table.
Affordability at the center
The campaign focused on affordability. Tariffs, energy costs and other bread-and-butter issues may be the centerpiece of Democratic efforts. Showdowns over those issues raise the risks of a clash over spending and a government shutdown.
Democrats now have the public megaphone of hearings and investigations to probe those issues. They also have power over tax and spending that goes directly to Trump’s ability to govern.
In a statement on Wednesday, Ron Wyden of Oregon gave a taste of the discussion to come. The incoming Senate Finance Committee chair said his committee would pursue a tax agenda. Democrats could now craft budget legislation for agencies to reshape or limit what they can do.
Veto limits, the debt ceiling and what happens next for Democrats in Congress
Trump does have veto power, and Democratic majorities will not be large enough to override his decisions. But without agreement on budget bills, spending and government operations have to stop. Those interludes can be when negotiators strike deals.
The debt ceiling is a natural point of pressure. With solid margins in the House and Senate, Democrats can credibly threaten a government shutdown and to not raise the debt ceiling unless they receive concessions, according to Christopher Hodge, chief US economist for Natixis.
What is confirmed: Democrats control both chambers, and the new Congress will be seated in January. Trump accepted the outcome and said he would work with Democrats on issues such as immigration, though he threatened to veto any “wild” bills. Trade and foreign policy powers still rest largely with the executive branch, so Trump remains in charge in those areas.
