2026 midterm elections analysis
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Our attorneys and consultants teamed up to provide key takeaways from the midterm elections for clients across our footprint. Below you will find analysis on federal and state impact.
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Impact at the federal level
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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.
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Ken Preede
Principal
Parker Poe Federal Strategies
Washington, DC
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Georgia skipped purple and went straight to bright blue with a record 2.8 million early votes cast and another 1.3 million Election Day votes. Statewide results produced a surprising and decisive Democratic sweep. Keisha Lance Bottoms is the governor-elect, meaning she will become Georgia’s first Black governor and the first Black woman elected governor in the United States. Jon Ossoff won reelection to the U.S. Senate, and Democrats won every other statewide contest called on the ballot.
Preliminary legislative results now point to divided control of the state legislature: Democrats appear poised to take the Georgia House, while Republicans appear to retain the Senate by a two-seat edge. Several House races remain unresolved, including one that appears likely to go to a runoff. Democrat Josh McLaurin, the lieutenant governor-elect, will preside over the Senate.
Assuming the projected Democratic House majority holds and members choose state Rep. Carolyn Hugley as speaker, she would become the first Black woman to lead the Georgia House. After a Republican-led session focused on tax cuts and education reform, Democrats may bring redistricting, Medicaid expansion, public school funding, and a statewide data center framework onto the agenda. For businesses, the key question will be which proposals can advance through a narrowly Republican Senate and a Democratic governor. Hugley’s sponsorship history shows experience across health coverage, insurance, school governance, local courts, and 911 infrastructure, though it does not establish the caucus’s final priorities.
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The Democratic blue wave came ashore in North Carolina and packed much more of a punch than anyone expected. The national mood coupled with strong statewide candidates led to Democrats winning elections at all levels, even in deeply red congressional and legislative districts.
The key takeaway is that businesses will need to work with both Democrats and Republicans to accomplish their goals. Prior to yesterday, Republican margins in both chambers meant that North Carolina was essentially controlled by one party. That changed dramatically with the 2026 midterm elections.
The biggest winner was someone who didn’t even appear on the ballot: Democratic Gov. Josh Stein. He will exercise a great deal of power in a divided legislature. His office will set the early tone on issues impacting the corporate community. The hope is that bills next year will focus on moderation in order to pass both chambers and be signed by the governor.
With the passage of a constitutional amendment limiting tax rates, the legislature will have to keep taxes in check. Some Democrats will want to come out of the gate with bold legislation, but their leadership will want to focus on bills that can make their way into law.
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South Carolina voters elected Alan Wilson, a Republican, as the state’s next governor, while Republicans retained control of both chambers of the general assembly. Democrats made gains in the South Carolina House, ending the Republican supermajority, but Republicans remain firmly in control of the chamber.
For companies in South Carolina, the broader message coming out of the 2026 midterm elections is continuity at the South Carolina State House and a potentially more consequential transition within the executive branch. Businesses should pay particularly close attention to potential cabinet and agency leadership appointments during Wilson’s first 90 days and the governor-elect’s policy and budget priorities.
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