INSIGHTS
BY GRAYLING
2026 U.S. Midterms. What a divided U.S. government means for global companies
This report examines the implications of the 2026 U.S. midterm elections for international businesses, assessing how the shift to a divided government will reshape the American political, regulatory and commercial landscape over the next two years. With Democrats taking control of Congress, legislative gridlock is expected to intensify, prompting the Trump administration to rely more heavily on executive authority. Meanwhile, expanded congressional oversight, heightened political scrutiny and increasingly divergent state-level regulations will create a more complex operating environment for companies with U.S. exposure. The report outlines the principal risks and emerging challenges across key industries, including technology and AI, financial services, energy, manufacturing, healthcare, food and beverage, and retail. Affordability, trade policy, corporate accountability and regulatory scrutiny are expected to dominate the political agenda, with congressional investigations and reputational pressures potentially proving more consequential than new legislation. For businesses, the priorities will be to reassess regulatory and political exposure, anticipate heightened oversight, align corporate commitments with business practices and strengthen bipartisan stakeholder engagement at federal, state and local levels.