If the upcoming midterm elections result in a Democratic majority in the House next year, companies, organizations, and individuals can expect a new wave of congressional investigations, hearings, and oversight, with a familiar focus on the Trump administration and an emphasis on a variety of private sector targets. The Democratic messaging heading into the elections, which is heavily focused on affordability and economic fairness, is a leading indicator of the issues that could feature heavily in future congressional oversight. Recent comments by Democratic leaders and letters sent by Democratic Ranking Members of various committees provide additional insights on the likely direction of oversight in a potential new Democratic majority.
In an interview late last week, for instance, Rep. Robert Garcia (D-Cal.), the Ranking Member of the House Oversight Committee, emphasized that “larger corporations” would be a central focus of oversight, which will include companies that “us[e] data to manipulate pricing,” “foreign interests that are driving up the cost of housing,” and government benefits and opportunities “going to friends and family” of President Trump. Below, we outline specific priorities and industries that will likely feature in a future Democratic oversight agenda.
Democratic leaders have made clear that they intend to investigate any private sector interaction with the Trump administration that could suggest favoritism, corruption, self-dealing, or other forms of cronyism. Rep. Garcia plainly stated that this is “the most corrupt administration to ever exist in the history of our country,” and that corruption will be “at the center” of the Committee’s work. Investigations are likely to address not only the Trump administration and government officials, but also companies and individuals with business before the government. Furthermore, where congressional investigators are unsatisfied with the executive branch’s response to oversight, they may seek documents directly from private parties—such as banks and internet service providers—even absent any allegations of wrongdoing by those parties. This pattern emerged during divided government in the first Trump administration—resulting in President Trump’s lawsuit to prevent his personal accounting firm from producing records to Congress—and continued when Republicans controlled the House during the latter two years of the Biden administration. Other targets of congressional investigations may include:
- Government Contractors: Government contractors—especially those with significant business in the defense, intelligence, energy, and healthcare spaces—are a frequent focus of congressional investigations that are sure to be among Democrats’ oversight priorities.
- Government Donors: Democratic members in both the House and Senate have sent document and information requests to major corporations that have reportedly contributed to, or are otherwise involved in, the White House State Ballroom Project. This type of oversight could extend to other administration projects and initiatives, such as the upcoming “America 250” celebration of the signing of the Declaration of Independence.
- Cryptocurrency and Financial Innovation: Investigators may continue to examine crypto‑related businesses and financial platforms that benefited from regulatory forbearance, enforcement decisions, or access to federal programs.
- Energy: Democratic members have already begun seeking communications between the Trump administration and major oil and gas and refinery companies in connection with recent developments in Venezuela.
- Department of Government Efficiency (DOGE): House Democrats have launched inquiries into DOGE and its interactions with private companies, raising concerns about conflicts of interest, access to sensitive data, and the role of DOGE personnel embedded in federal agencies.
- Trade Exemptions and Tariff Relief: Congressional oversight may continue to probe whether tariff exclusions, licensing decisions, or other trade‑related exemptions were granted in a manner that favored particular companies or industries.
- OFAC Licenses and Sanctions Relief: Democrats have signaled interest in reforming the issuance of sanctions licenses and other forms of OFAC relief, including where companies operating in high‑risk jurisdictions received approvals that competitors did not.
- Pharmaceutical “Most Favored Nation” Initiatives: A future Democratic majority may pursue oversight of the administration’s “most favored nation” activities, including drug pricing commitments by pharmaceutical manufacturers and the newly launched TrumpRx website.
Democratic leaders have repeatedly emphasized cost of living and affordability issues heading into the 2026 midterms. House Minority Leader Hakeem Jeffries (D-N.Y.), for example, declared: “Costs haven’t gone down, costs have gone up across the board. Housing costs, out of control. Grocery costs, out of control. Utility bills, out of control. Child care costs, out of control. And healthcare costs, out of control.” Democratic members have already begun laying the groundwork for an oversight agenda focused on affordability, making this a second key focus of future investigations. They have even issued a variety of requests in letters that could blossom into significant investigations or even subpoenas next year, particularly where correspondence has gone unanswered this year.
- Housing: Democrats have signaled that housing affordability—particularly the role of institutional investors, foreign investors, and private equity—is a priority.
- Algorithmic Pricing – Groceries, Food Delivery, Rideshare, and Airlines: Several Democratic members have expressed concerns regarding “algorithmic pricing,” which may lead to oversight requests to industries that have reportedly adopted new pricing strategies, including major grocery chains, online retailers, food delivery apps, rideshare services, and airlines, as well as service providers or consultants that advise on pricing.
- Utilities: Rising utility bills have emerged as a central focus heading into the midterms. In January, House Democratic members launched the Congressional Lowering Utility Bills Caucus, and have characterized utilities as a “rigged” system.
- Healthcare: A Democratic majority is also certain to initiate broad investigations into health care affordability—a frequent oversight priority—likely to span a wide range of stakeholders, including health insurance companies’ practices in Medicare Advantage and the pricing practices of providers and pharmaceutical manufacturers.
New and expanding technologies commonly attract congressional oversight. Both established companies and newer startups at the forefront of these technologies, such as AI, should anticipate potential investigations that inquire into their safety and compliance frameworks.
- AI Usage: House Democratic members have broadly discussed the risks of generative AI across a variety of fronts. They have increasingly framed algorithm-driven social media platforms and AI tools as potential risks to children’s mental health, and they have expressed concerns that AI deployment and data handling practices could affect consumer privacy and national security.
- AI Infrastructure and Data Centers: Related to their affordability concerns, Democratic members have linked the rapid expansion of AI infrastructure and data centers to rising electricity costs and power grid strain. Democratic leaders on the House Energy and Commerce Committee have warned that power-intensive data centers and AI tools should not drive up energy costs for local communities.
- Cryptocurrency and Prediction Markets: Democratic members have also highlighted consumer protection risks related to cryptocurrency platforms and emerging prediction market products, asserting that they often lack adequate safeguards for retail users with respect to transparency, market manipulation, and responsible gaming.
The breadth of likely oversight priorities—spanning affordability, consumer protection, emerging technologies, and business before the government—underscores the importance of preparing now for potential inquiries. Given the cross-cutting nature of key issues (e.g., algorithmic pricing, AI infrastructure), entities could face questions from multiple committees with differing jurisdictional interests, often on accelerated timelines, once the new Congress convenes.
Covington is continuing to monitor oversight developments closely, in advance of the midterm elections, and will provide periodic updates on important developments. If you have any questions concerning the material discussed in this client alert, or would like to begin preparing for congressional investigations, please contact the following members of our congressional investigations practice.
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