Democrats regain control of the House of Representatives; Trump family businesses warned they will face subpoenas first
Fortune
36m ago
Ai Focus
After NBC News and MS NOW predicted that the Democratic Party would gain control of the House of Representatives, Representative Robert Garcia stated that he would initiate an investigation using " Lawyer up " as a signal. The investigation will focus on Trump's family's cryptocurrency business, business dealings, as well as related companies and individuals.
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NBC News and MS NOW predict that the Democratic Party will win control of the House of Representatives on Tuesday evening. This victory gives them limited leverage to check President Donald Trump's agenda and also grants them broader powers to investigate the businesses run by his family.

The Democratic Party only needs to gain three additional seats to take control of the House of Representatives, and they achieved this goal by winning in suburban areas and swing districts controlled by the Republicans.

In New Jersey’s 7th Congressional District, Democrat and former Navy helicopter pilot Rebecca Bennett defeated Republican Representative Tom Keane II. CNN made a prediction regarding this outcome, and The Associated Press also announced the results of this district. In Virginia’s 2nd Congressional District, former Representative Elaine Luria managed to take back the seat from Representative Jen Kiggenes; Decision Desk HQ made a prediction about this as well. In Colorado’s 8th Congressional District, former state legislator Manny Rutinel won a closely contested seat with a campaign focusing on reducing costs and opposing the government’s immigration enforcement actions. In North Carolina’s newly redrawn 11th Congressional District, Democrat Jamie Agler defeated Republican Jennifer Balcom.

The Democratic Party also managed to retain three seats in Florida that had been redistricted by the Republican Party in an attempt to turn the tide. As some districts are still counting votes, it is estimated that the Democratic Party will ultimately win around 248 seats, forming a majority of 61; the election team for CNBC predicts at least 235 seats.

Trump previously urged his supporters to view the midterms as a referendum on his presidency. In response on Truth Social, he said: "I'm not even on the ballot at all, and if I were, the result would be an overwhelming victory!"

California Representative Robert Garcia will serve as the chairman of the House Oversight Committee in the new Congress. He celebrated his victory with two words in a statement and on X: “Lawyer up.” His office stated that he vows to take action against what he calls the “Trump criminal family,” as well as to address corporate corruption, abuses by the Department of Homeland Security and the Immigration and Customs Enforcement, and the cover-up of the Epstein documents.

What can the Democratic Party do?

The Democratic Party can now pass bills with a simple majority, but the passage of a bill in the House of Representatives does not mean it will become law. Trump once threatened that if the Democrats won control of Congress, he would "veto everything," and to override a presidential veto, a two-thirds majority is required in both the Senate and the House of Representatives, a threshold that the Democrats cannot achieve in either chamber.

This limits the four priorities proposed by House Speaker-in-Waiting Hakim Jeffries: reversing Trump's cuts to Medicaid, extending subsidies under the Affordable Care Act, restoring Congress's authority over tariffs, and ending the war with Iran, NBC reports. Each of these priorities requires Trump's signature or a majority large enough to override a veto. What the House can do is refuse to pass Trump's priorities, including appropriation bills. This means that Democrats hold leverage in every budget dispute over the next two years.

What can they do?

Summons do not require the president's signature. Holding control of the committee means that one can compel the executive branch, private companies, and individuals to submit documents and testify.

Garcia stated that his committee will focus on "the corruption of the Trump family," which includes the president's cryptocurrency business, which has generated over $1 billion in revenue for him. He told Punchbowl News that the committee will examine the family's crypto transactions, Donald Trump Jr.'s business dealings, as well as Trump family members like Jared Kushner who "sit on boards of directors and get contracts." He also promised to swiftly address the alleged quid pro quo arrangements involving former Department of Homeland Security Secretary Kristie Noem and Corey Lewandowski. Garcia indicated that government officials, including Acting Attorney General Todd Branche, could face subpoenas on "the very first day" that Democrats take power.

Enterprises that rank at the top

Trump family's crypto company World Liberty Financial is likely to be the first to attract attention. Democrats have been focusing on a member of the UAE royal family known as "Spy Sheikh," who purchased $500 million worth of shares in the company last year. The company is applying for a national banking license, which requires approval from an agency under the Treasury Department. Democratic members of the House of Representatives have previously requested that Treasury Secretary Scott Bessent investigate this transaction. So far, all they can do is make such requests.

The Democrats also stated that they will investigate Trump's decision to pardon one of the co-founders of Binance, who helped the Trump family launch a stablecoin. Garcia has requested that the Pentagon Ombudsman investigate whether companies that allowed Eric Trump or Donald Trump Jr. to enter their equity structures or payrolls have subsequently obtained defense contracts as a result. According to Democrats on the Oversight Committee, since Trump took office, these companies have received over $725 million in loans, grants, and awards.

The scope of the investigation may also extend beyond the Trump family. Enterprises that have donated to the Trump White House banquet hall, as well as companies that have conducted transactions with members of the Trump family, are expected to be among the first targets of the investigation, with inquiries possibly beginning as early as February. The Democratic Party anticipates resistance from the White House and therefore plans to directly summon private entities associated with Trump in order to bypass such obstruction. During Trump's first term, the White House delayed requests for documents and claimed executive privilege; this strategy may be repeated again.

The White House is not impressed with these plans. White House spokesperson Lauren Beeth told Newsweek on the eve of the election that the Democrats' "only agenda is to continue a ten-year witch hunt against President Trump."

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