Blue wave. Tsunami. Sweeping victory. However you describe the results from election night, it was a historic one for the Democratic Party and the shift in control of Congress will begin a new era in Washington, DC. Democrats are projected to take control of both the House and Senate, ending unified Republican control in Washington. The final margins of the 2026 midterm elections are still taking shape, but the direction is clear: President Trump will face a Democratic Congress for the final two years of his term, one with substantial majorities in both chambers.

For businesses in the Southeast and across the country, the immediate change is who sets the congressional agenda, leads investigations, and negotiates spending bills. Oversight will likely outpace legislation and control of the Senate provides Democrats more leverage over executive and judicial nominations. We expect affordability and healthcare to drive Democratic priorities, alongside closer scrutiny of the administration. Major changes in law will still require agreement with the president or enough bipartisan support to override a veto.

House of Representatives

As of early Wednesday morning, Democrats controlled 228 called seats, Republicans controlled 139, and 68 races remain uncalled in the national snapshot. Democrats have cleared the 218-seat threshold, with 25 called Republican-to-Democratic pickups. That is a substantial expansion beyond the small numbers they needed to regain control; additional leads could widen the majority. At the end of the counting, Democrats may have as many as 260 seats and an 80-plus-seat majority cushion.

The gains span familiar battlegrounds and more surprising territory. Democrats won three Iowa seats and four Republican-held Pennsylvania seats. Defeated incumbents include Brian Fitzpatrick, Scott Perry, Mariannette Miller-Meeks, Zach Nunn, Ann Wagner, Victoria Spartz, Mike Lawler, and Bryan Steil.

North Carolina could produce several additional Democratic pickups, including Richard Hudson’s and Tim Moore’s seats. Republican opportunities remain in the open, redrawn Tennessee 9th and Texas 32nd congressional districts. Those races appear in the leading portion of the House table rather than being counted as called flips. Maine’s open 2nd Congressional District also remains unsettled. Louisiana’s 5th Congressional District is headed to a December 12 runoff; a first-round lead there is not a projected win.

Senate

The Democratic caucus has secured 54 seats to Republicans' 44, with Alaska and Mississippi unresolved. The Democratic figure includes two independents who caucus with the party. These totals include 65 seats that were not on the ballot; they are the emerging chamber balance, not the number of election victories.

Democrats have flipped seven Republican seats: Iowa, Kansas, Maine, North Carolina, Ohio, South Carolina, and Texas. Troy Jackson defeated Susan Collins, Adam Hamilton defeated Roger Marshall, and Sherrod Brown defeated Jon Husted. Roy Cooper and Josh Turek won open Republican seats in North Carolina and Iowa. No Democratic-held Senate seat has flipped Republican.

Later returns show Mary Peltola narrowly ahead in Alaska and Scott Colom narrowly ahead in Mississippi. Both races remain too close to call. Alaska may require ranked-choice tabulation. If both Democratic leads hold, the caucus would reach 56 seats; the confirmed majority does not depend on either result.

Governors

Democrats have secured 28 governorships versus 20 for Republicans, including offices not up for election this year. Alaska and Kansas remain unresolved. The five called Democratic pickups are Texas, Georgia, Iowa, Ohio, and Nevada, giving Democrats a majority of governorships.

Gina Hinojosa defeated Greg Abbott in Texas, and Aaron Ford defeated Joe Lombardo in Nevada. Democrats also won three open Republican offices: Keisha Lance Bottoms defeated Rick Jackson in Georgia, Rob Sand defeated Zach Lahn in Iowa, and Amy Acton defeated Vivek Ramaswamy in Ohio.

California elected Xavier Becerra to succeed Gavin Newsom, while Massachusetts reelected Maura Healey, who defeated Republican Mike Minogue. Both are Democratic holds. More Democratic governors could strengthen state-level advocacy on health coverage, affordability, and federal funding, although each state’s policy options will depend on its own budget and governing arrangements.

Potential impact for 2027

Our early read is that Democrats will organize their agenda around lowering household costs and restoring congressional checks on the administration. The following is an outlook, not a settled legislative program.

• Affordability first. Democrats are likely to push to restore Affordable Care Act premium assistance, revisit Medicaid financing and eligibility restrictions, and scrutinize prescription drug and other healthcare costs. Housing, child care, and consumer prices should also feature prominently. Focus on tariff policy intervention and wage and worker-protection proposals could receive renewed attention.
   
• Oversight will move faster than legislation. Committee chairs will be able to schedule hearings, seek documents, and investigate administration decisions, federal spending, and private-sector conduct. Trade and tariff policy, immigration enforcement, the Iran conflict, and executive branch ethics are likely areas of focus. Senate control also gives Democrats greater leverage over executive and judicial nominations.
   
• Divided government sets the limits. President Trump retains his veto, and most Senate legislation still faces a 60-vote threshold to end debate. Even a larger Democratic majority would fall short of that threshold. Budget reconciliation could ease passage of qualifying fiscal measures, but it would not bypass the president. Broad reversals of Trump-era policies will therefore face significant obstacles.
   
• Bipartisan openings remain. Appropriations and expiring federal programs will create opportunities for negotiation. Targeted healthcare measures, workforce training, infrastructure, permitting, and program integrity could attract support across party lines. Businesses should consider specific, practical requests that connect to affordability and service delivery, while maintaining relationships with both congressional parties and the administration.

House seats changing party

The below called races are Associated Press projections reflected in the reporting snapshot. The second portion titled "Currently leading in potential flips" lists races still uncalled in that snapshot where the opposing party leads, including some with concessions or calls by other outlets. A current lead is not a projection: neither a winner nor a loser is assigned to those races.

Party changes compare numbered congressional districts with the party that won the prior election. Redistricting means some seats have substantially different boundaries; a flip does not necessarily mean an incumbent was defeated. D = Democrat; R = Republican.

The leading list includes two possible Democratic-to-Republican open-seat changes, TN-9 and TX-32. Louisiana’s LA-5 runoff is excluded because its first-round leader still faces a new election.

Senate seats changing party

All seven called flips are Republican to Democratic. Alaska and Mississippi are potential additional pickups. Alaska’s entry reflects the reported first-choice lead; remaining ballots and any ranked-choice count could change the outcome.

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