U.S. Midterm Election Update and Analysis

The 2022 midterm elections produced modest changes to Congress. Democrats retained control of the US Senate for another two years following back-to-back wins in Arizona and Nevada.  Republicans flipped control of the House of Representatives ending two years of one-party rule in Washington, DC. However, Republicans will only have a slim majority underscoring how well Democrats outperformed historic midterm trends. This razor thin majority will likely make it difficult for GOP leaders to govern effectively and implement a conservative policy agenda.

Lame Duck Session

Before the new Congress begins on January 3, 2023, lawmakers have some work to do during the Lame Duck session. Issues that need to be addressed before the end of the year include:

• Approving a massive funding bill that must get passed by December 16. Failure to do so would result in a government shutdown
• Completing work that has already begun on the 2023 National Defense Authorization Act (NDAA)
• Considering and then approving a host of federal judicial appointments
• There is also interest in debating bills relative to consumer privacy protections, reforms to the electoral college, permitting reform and restrictions on the technology sector.

Due to a constricted time frame, it is entirely possible some of the above bills (other than the first two which must get done) will get pushed over to the new Congress in 2023.

What Should We Expect in the 188^th Congress?

With different parties controlling each Chamber, look for the following legislative priorities to be addressed in the next Congress:

House of Representatives

• A move towards an “all of the above” energy policy
• Government oversight will be a key focus for Republicans
• Continued efforts to strengthen the supply chain
• Expect legislative challenges to various regulatory agencies scope of powers
• Tax extenders

Senate

• With Senator Joe Manchin (D-WV) still chairing the Energy and Natural Resources Committee, expect to see a balanced approach towards energy resources
• Prescription drug pricing reform
• Onshoring critical semiconductor manufacturing
• Telehealth legislation

The narrow majorities in both chambers suggest the United States remains divided, and compromise will be needed to overcome policy gridlock. Hopefully, Members of Congress on both sides of the aisle will work collectively to address the aforementioned policy issues and move the country forward. The VMA will continue to monitor and report on governmental actions that affect our industry.

 If you have questions on the midterm elections or any VMA government relations activity, contact Marc Pasternak at mpasternak@vma.org.