Trump's tariffs, healthcare cuts face fresh scrutiny after Democrats' election sweep

Democrats have regained power in Washington after winning key races in the 2026 US midterm elections. The party has secured majorities in both the Senate and the House of Representatives, ending two years of Republican control of Congress.

Democrats take control of the US Congress after winning key House and Senate races in the 2026 midterm elections.Democrats secured control of the 100-member Senate after winning several important races in traditionally Republican states, including Texas, South Carolina and Kansas.

The party is set to hold at least 54 seats in the chamber, according to Yahoo Finance. The party's victory in the House became official early Wednesday morning after Democrats won important races in states including Pennsylvania, New Jersey and Colorado.

The change in control gives Democrats a stronger position to investigate President Donald Trump's economic policies, administration officials and business allies. They can also introduce and pass bills in the House to challenge the Republican agenda, even if those proposals do not become law.

Democrats are preparing an aggressive legislative push on issues such as healthcare subsidies and Trump's tariffs. The New York Times reported that the party is planning a "shock-and-awe legislative sprint" to bring these issues to the forefront.

Democrats may pass several bills through the House, but getting them approved in the Senate could be difficult. Most major legislation needs 60 votes to overcome a Senate filibuster. This means Republicans can still block many proposals even though Democrats control the chamber.

Democrats are expected to examine Musk's role in the Department of Government Efficiency (DOGE), as well as government contracts awarded to his space company, SpaceX. These investigations could bring greater attention to his business dealings with the federal government.

Democrats are also expected to turn their attention to Trump's economic team, particularly Treasury Secretary Scott Bessent. His department's decisions and policies could face greater questioning under the new Congress. Politico reported that Democrats are preparing investigations into the Treasury Department and the Internal Revenue Service (IRS).

They also want to examine Trump's efforts to reduce the powers of financial regulatory agencies. Warren is expected to play an important role in the Senate Banking Committee. Her position could give Democrats a stronger platform to question Bessent and examine the administration's financial policies.

Any effort to restore healthcare subsidies and funding could affect health insurers, hospitals and other healthcare providers. Changes to federal healthcare support could also influence the number of Americans who can afford health insurance.

With control of congressional committees, Democrats will be able to use subpoena powers to demand documents and call officials and business leaders to testify. This could increase pressure on people connected to Trump's economic policies.

Democrats may try to protect clean energy tax credits and stop Trump from making further cuts to these benefits. This could offer some relief to businesses working in renewable energy and other clean energy sectors. Stifel Chief Washington Policy Strategist Brian Gardner identified clean energy as one of the sectors that could benefit from the election results.

He said investors could see hope that clean energy tax credits may be restored or extended. Democratic Representative Brendan Boyle said he would fight to reverse Trump's tariffs, which he described as costly. Boyle is expected to become the next chairman of the House Budget Committee.

Boyle said Democrats would work to reverse what he called Trump's damaging healthcare cuts. The party's efforts to restore healthcare support and subsidies could become an important part of its legislative agenda. Any Democratic attempt to roll back Trump's tariffs is likely to face a presidential veto.

This means that even if Democrats pass such proposals in Congress, turning them into law could remain difficult. Democrats could also use congressional hearings to question administration officials about the economic impact of Trump's tariffs.

However, challenging the policies through legislation could be difficult if Trump refuses to sign a bill seeking to reverse them.