Five Things Every Company Should Know After the Democrats Take Control of the U.S. Congress

The midterm elections have decided who will formally hold the congressional subpoena power when the new Congress convenes in January. Given the Democrats’ decisive win, corporate exposure is rising. Congressional scrutiny will continue to focus on bipartisan issues such as data centers and energy infrastructure, health care fraud, China, and national security, but will now likely expand in areas such as any type of government contracts, especially those with any ties to the Trump family and inner circle, cabinet members (especially with the Department of War, Justice and Homeland Security), cryptocurrency, algorithmic pricing, AI oversight, Big Tech and social media access and protection.
 
Congressional committees do not focus only on government agencies. They regularly examine public companies, private businesses, and individual executives, with growing attention to government interactions, corporate governance, compliance programs, pricing practices, and internal decision-making. Given the midterm results, there will be more congressional hearings, more subpoenas, and more preservation and investigative letters.

Here is what you need to know, and why bringing in experienced counsel early matters.

1. It may not look like an investigation at first. Congressional inquiries often begin without much fanfare, with informal staff outreach, a preservation letter, or an inquiry from a single representative or senator. That first response can shape everything that follows. Counsel should be involved and consulted before anyone replies, however routine the request seems.
2. Congressional inquiries are different from regulatory or law enforcement inquiries. Every committee and subcommittee works differently. Lawyers who know how these investigations work and how a particular committee operates, and who have working relationships with its members and staff, can engage effectively on your behalf and help manage the scope of what is being asked.
3. The stakes are legal and reputational at the same time. Congressional investigations can create legal and reputational risk at once. Your lawyers should lead a coordinated response that brings in compliance, government affairs, and communications, so that what you say in public and what you give to Congress stay aligned.
4. Your documents and your people will be in the spotlight. Committees can send document requests, issue subpoenas, call executives to testify at public hearings, hold individuals and companies in contempt, and refer concerns to the Department of Justice (DOJ) for investigation. Experienced counsel can help manage your responses to requests and subpoenas and prepare witnesses for testimony, protecting both the company and the individuals involved.
5. It rarely stays in Congress. Congressional investigations can often lead to other investigations. Anything you give to a committee can end up in front of the DOJ, the SEC, or other regulators, especially if Democrats win the White House in 2028. Your strategy needs to account for that from the start, ideally with counsel who also handle those agency proceedings. Follow-on civil lawsuits brought by competitors, consumers, and others are also a possibility.

 Don’t wait for the hold letter or subpoena

The best time to bring in counsel is before the first request arrives. Companies should run a privileged risk assessment directed by counsel, prepare a response plan, engage key stakeholders, and keep a close eye on committee activity, especially if it involves competitors or those in the same industry or sector. Statements by committee leaders, hearing agendas, and public correspondence often give the earliest warning of what is coming.

How we can help

Reed Smith’s congressional investigations team includes a former member of Congress and former federal and state prosecutors and enforcement lawyers. We have handled matters before numerous House and Senate committees, including, for example, the House and Senate Intelligence Committees, the House Oversight and Government Reform Committee, and the House Select Subcommittee on the Coronavirus Crisis, among others. We help clients understand how committees operate, respond to requests and subpoenas, and prepare witnesses to testify so they can fully protect their company and mitigate the impact of the investigation.

If your organization is facing congressional scrutiny or wants to be prepared for it, please reach out to any of our team members. 

Client Alert 2026-206