Midterm Election Analysis: Federal Policy Implications for RDOs 

Key Takeaways 

• Democrats win control of congress: Democrats will take control of the House and the Senate in January for the 120th Congress. The party has flipped seven Senate seats: Iowa, Kansas, Ohio, Maine, North Carolina, South Carolina and Texas thus far, with Mississippi and Alaska remaining uncalled. Democrats will likely have 56 Senate seats, a much larger majority than Republicans had in the 119th Congress. Democrats have won at least 254 House seats. In the 119th Congress, Republicans had 218 seats, a much narrow majority then Democrats now have. Democrats flipped over 40 House seats.  

• The next two years in Washington will see divided power, with Democrats in charge on Capitol Hill while President Trump remains in the White House. 

Leadership Changes 

Party leadership elections and committee leadership assignments in both chambers will take place over the next two months, with leadership elections in mid-November and committee chairs selected in mid-December. 

On November 10, the House voted to elect Representative Jim Jordan (R-OH-4) as Minority Leader in a vote of 106-73. He beat out the party’s current Majority Leader Rep. Steve Scalise (R-LA-01) for the position. Jordan was a founding member of the conservative House Freedom Caucus. The race for Majority Leader in the Senate is between Senator Chuck Schumer (D-NY), who has led the Senate Democratic Caucus for roughly 10 years, and Senator Chris Van Hollen (D-MD). 

Impact on Lame Duck Policy 

There are two months until the 120th Congress begins in January. During this period known as the lame duck, lawmakers will work to make progress on must-pass legislation, including government funding and the National Defense Authorization Act (NDAA). Lawmakers are scheduled to be in session for fewer than 25 days before January.  

Congress is currently facing a December 11 deadline for government funding, when the current Fiscal Year 2027 Continuing Resolution (CR) is set to expire. The CR extended government funding, as well as authorizations for surface transportation and farm bill programs. Additionally, the CR provided for an implementation delay of the proposed Uniform Guidance rule from the Office of Management and Budget (OMB). 

Beyond government funding, permitting reform may be one of the few non-essential items that pass in the lame duck. A bipartisan proposal introduced in the Senate on September 30 from Senators Shelley Moore Capito, Mike Lee, Sheldon Whitehouse, and Martin Heinrich would overhaul environmental permitting laws. The Senate voted to advance the proposal on November 9.  

Next Steps 

NADO will continue to engage on priorities impacting Regional Development Organizations (RDOs) during the lame duck. In the 120th Congress, NADO will work with new congressional leadership and key committees of jurisdiction to advance policies that strengthen regional development and support communities across the country.  

NADO is hosting a members-only webinar on November 19 to discuss the impacts of this election on regions. Register HERE.