After the Midterms: More Investigations Are Coming From Congress and the States

Democrats are projected to control both chambers of Congress when the new Congress begins in January 2027. ^[1] Reported results also show Democratic gains in at least four state attorney general offices, with Kansas still uncalled by NBC News as of November 5. ^{[2, 3]} Companies should prepare now for potential investigations from Congress and the states.

What Changed on November 3

Democrats are projected to take control of the House and Senate when the new Congress begins on January 3, 2027. ^[1] The change in majority is expected to shift committee leadership and investigative agendas, but individual leadership selections and committee rules remain to be finalized. ^{[4, 5]}

Post-election analysis reports that Democrats flipped attorney general offices in Texas, Georgia, Ohio, and Iowa. ^[2] Kansas could become a fifth flip, but NBC News still lists that race as too early to call as of November 5. It should not yet be counted as a confirmed flip. ^[3]

Congressional Investigations: Expect Letters Early

Pre-election analysis by former congressional officials at Jenner & Block anticipated a rapid, coordinated oversight effort directed in part at private companies. This remains an outlook, not an announced schedule of information requests. ^[4] Congressional committees can seek company records and testimony by subpoena, subject to committee authorization, jurisdiction, a valid legislative purpose, and applicable legal limits. ^[6]

Published oversight analysis identifies federal contractors, technology companies, financial services and cryptocurrency businesses, pharmaceutical companies, and energy and mining businesses as potential subjects of inquiry. These are potential areas of scrutiny, not a confirmed recipient list. ^[4] Reported themes and related existing inquiries include:

• Corporate donations to the administration, including questions about whether those donations influenced access ^[4]
• Cost of living, pricing, and healthcare costs ^[4]
• Artificial intelligence, data privacy, and cybersecurity as related areas of congressional scrutiny ^[7]
• Tariffs and trade ^[4]

Companies should plan for the possibility of parallel House and Senate inquiries. Covington’s oversight analysis identifies overlapping, bicameral investigations as a risk when both chambers change control. ^[8]

Committees Changing to Democratic Leadership

The table identifies potential chairs based on current Democratic leadership and published oversight analysis; it does not report confirmed appointments. The focus column summarizes reported priorities or relevant committee jurisdiction, not an adopted 2027 investigative agenda. Final leadership selections and committee rules remain subject to the new Congress’s organization. ^{[4, 5, 8, 9, 10, 11]}

Senate Judiciary and Senate Homeland Security and Governmental Affairs will also need new Democratic leaders because their current senior Democrats, Sens. Dick Durbin and Gary Peters, are retiring. ^{[5, 12]} Published analysis identifies Sen. Sheldon Whitehouse as a prospective Judiciary chair, but that is not a confirmed appointment. ^[5]

State Attorneys General: A Second Front

State attorney general coalitions may change as new officeholders set priorities. Post-election analysis highlights the Texas and Georgia transitions as particularly consequential for multistate participation and inherited enforcement matters. ^[2] President Trump has also signaled that he may use vetoes against Democratic legislation. ^[1] Against that backdrop, our assessment is:

• Continued consumer protection enforcement. State enforcement remains a potential source of scrutiny even if federal legislation stalls. Post-election analysis identifies technology and artificial intelligence, privacy, healthcare, consumer finance, and gambling and prediction markets as areas to watch. This is an enforcement outlook, not a commitment by every office to pursue every sector. ^[2]
• Changes in multistate participation. Incoming attorneys general may join, leave, or lead coalitions. Companies should monitor actual participation and resource decisions rather than assume that every new officeholder will take the same approach. ^[2]
• Potential shifts in direction in TX. The state’s attorney general’s office has already pursued substantial privacy matters: a $1.4 billion Meta settlement concerning biometric data, announced in July 2024, and a $1.375 billion Google settlement concerning data-privacy claims, finalized in October 2025. ^{[14, 15]} Our assessment is that the transition warrants monitoring for changes in priorities and targets, rather than an assumption of increased case volume.
• Plan for overlapping congressional and state scrutiny. Our assessment is that public hearings, released records, and state findings can create exposure across forums. Companies should therefore coordinate their responses rather than treat each inquiry in isolation.

What Companies Should Do Now

Companies can take the following steps to prepare:

• Map your exposure. Identify which business lines, executives, government contracts, and public statements touch the themes above.
• Know where your data is. Locate relevant email, chat messages, and financial records so they can be collected and reviewed quickly. Assess request deadlines promptly with counsel. Congressional committees have asserted discretion to reject attorney-client and work-product privilege claims; treatment of a claim and any production or waiver implications require matter-specific legal advice. ^[13]
• Test the numbers before someone else does. Before producing documents, consider an independent forensic review of pricing, margins, government contract billing, and grant spending based on your exposure to the inquiry. The review can help identify issues and reduce the risk of surprises.
• Coordinate the response. Align legal, communications, government affairs, and outside counsel so your record is consistent across congressional, state, and regulatory inquiries.
• Brief the board. Audit Committees and boards should understand the exposure and the response plan before the first request arrives.

Our industry experience includes healthcare and financial services, two sectors identified as areas of focus for incoming committee chairs and state attorneys general. Our experience also includes privacy and data protection, connecting our work to recurring congressional oversight themes and state consumer protection enforcement. ^{[2, 4]}

We have invested in artificial intelligence and automation as a core part of our Forensic Solutions strategy to improve quality, accelerate investigations, and deliver more cost-efficient compliance support. We develop bespoke solutions tailored to clients' investigation and compliance needs, extending our capabilities beyond individual matters to help clients strengthen how they investigate issues and manage compliance.

Material discussed is meant to provide general information and should not be acted on without professional advice tailored to your needs.

BDO USA, P.C., a Virginia professional corporation, is the U.S. member of BDO International Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms.