3 minPolitics
Divided Congress could pass bipartisan bills in 2027, companies warned
Divided government and a shifted political map after the 2026 midterms could make the next Congress more productive than expected, with bipartisan legislation on housing, data centers and tariffs in play.
The next Congress could produce more bipartisan legislation than many observers expect, and businesses should prepare for that possibility, according to a Fortune commentary written by a former Senate Majority Leader Harry Reid speechwriter who now comments on Capitol Hill. The argument rests on a divided federal government and a 2026 election that changed the incentives facing both parties.
Democrats hold both chambers of Congress, while President Donald Trump holds the veto. That split matters because the Senate filibuster requires 60 votes to advance most legislation, and overriding a veto requires 67 votes in the Senate and two-thirds of the House. Neither party can pass major measures alone, which pushes lawmakers toward compromise on issues where they can find common ground.
The 2026 results altered the political calculation for Republicans. Ashley Moody held Florida by less than three points, and Louisiana nearly elected a Democrat after Senator Bill Cassidy was ousted in a primary. In Texas, Senator John Cornyn lost his primary, and Ken Paxton lost the general election by about 12 points. Republicans also lost races in South Carolina and likely in Mississippi. The commentary notes that 18 Republican senators are up for re-election in 2028, seven of them in competitive or near-competitive states, which gives the party a reason to avoid positions that could cost it votes in a general election.
Cost of living and unmet economic promises were central to Democratic gains. An exit poll cited in the commentary found that nearly 90 percent of voters were worried about gasoline, groceries, utilities and health care. Some Republicans have begun to respond. Senator Ron Johnson criticized corporate ties to regulators after the election, signaling that economic concerns are reaching inside the GOP.
There are already signs of cross-party action. The Senate passed a housing bill 85 to 5, and it became law without Trump's signature. A bill to shift the cost of data centers away from ordinary ratepayers came close to passing this fall. The commentary also suggests that a measure restoring congressional authority over tariffs could draw Republican defections. Overriding a veto would require roughly 11 Republican senators or about 30 House Republicans, and about 40 House Republicans won their races by five points or less, a margin that could make them receptive to crossing party lines on popular economic measures.
For companies, the practical implication is that regulatory and trade policy could change faster than the current partisan rhetoric suggests. Businesses that depend on housing, energy infrastructure, tariffs or consumer prices should plan for the possibility of bipartisan legislation in 2027 rather than assuming gridlock will hold across the board.
Source: fortune.com
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