Funding bills could give Democrats leverage over the Iran war and tariffs
House and Senate Democrats are preparing a detailed congressional agenda that reaches from health care and taxes to artificial intelligence, Social Security and oversight of the Trump administration. According to The Wall Street Journal, the agenda includes trying to reverse much of last year’s tax-and-spending law, undoing Medicaid work requirements and reviving lapsed Obamacare subsidies. Democrats also may pursue legislation to stave off Social Security’s automatic benefit cuts and are likely to seek federal safeguards for new AI models and hearings into President Trump’s business dealings and Elon Musk’s government role. Must-pass funding and debt-limit legislation could give Democrats leverage over Trump’s Iran war and tariffs, though the president’s veto and national-security powers limit that route.
Democrats expect to use their new congressional majorities to conduct oversight, and House Democrats will have subpoena power once they take the majority. The frustrated letters they sent to the administration over the past two years are expected to become demands and hearings. Rep. Robert Garcia (D., Calif.), the likely chairman of the House Oversight Committee, said late Tuesday, “Lawyer up,” while Sen. Ron Wyden (D., Ore.), who would become chairman of the Finance Committee, tweeted a single word: “Subpoenas.”
Likely investigations include Trump’s cryptocurrency dealings, his family’s business ties, his construction projects in Washington, D.C., his acceptance of a Qatari jet, the tax-immunity deal he struck with his own administration and many other controversial subjects Republican lawmakers have not examined. Elon Musk, the Trump-allied billionaire who led a government-reduction effort early in the administration, also is likely to face scrutiny, particularly over his involvement in slower Starlink speeds that impaired Ukrainian war activity.
Lawmakers have taken mixed stances on impeaching Trump after neither of his first-term impeachments yielded a conviction and removal. Democrats are also expected to focus on impeaching other administration officials, including Defense Secretary Pete Hegseth.
Republicans used their slim majorities to push through a major tax-and-spending law last year. All Democrats voted no on the “one big, beautiful bill,” and they have vowed to try to reverse much of it. Democrats aim to undo changes to Medicaid that require recipients to work and are slated to take effect soon. They also aim to undo changes to nutrition-assistance policies that The Wall Street Journal said contributed to a 13% reduction in food-stamp rolls, and to revive the Obamacare health-insurance subsidies Democrats expanded during Joe Biden’s presidency that lapsed under Trump. Democrats also might attempt to undo some tax cuts Trump signed into law, particularly those that benefited high-income households and corporations.
With Senate control, Democrats can block President Trump’s judicial and executive-branch nominees, including any Supreme Court picks. Republicans are likely to push through as many confirmations as possible before they lose power on Jan. 3. But once vacancies emerge, the partisan divide will either mean acting officials in key administration positions or compromise nominees who can satisfy Democrats.
Social Security is heading toward insolvency in 2032, according to The Wall Street Journal, and Democrats may take a shot at legislation that would stave off the automatic benefit cuts. Many Democrats favor raising the earnings cap—now $184,500—where payroll taxes stop. Hakeem Jeffries has talked about expanding the low-income housing tax credit, the earned-income tax credit and the child tax credit.
AI is another likely oversight priority. Democrats could bring in top executives to testify about their close relationships with the White House and push for the first federal regulations setting guardrails for new models. AI regulation has become more of a priority for many lawmakers after a wave of hacks by recent models and warnings from industry researchers that the rapidly evolving technology could be capable of destroying humanity within the next decade. Progressives have also proposed bills targeting the data centers underpinning the AI boom, hoping to curtail the data centers’ power usage and address a recent backlash that swept across the country.
The Wall Street Journal said Trump’s two main unilateral initiatives—the Iran war and tariff expansion—helped push prices up and propel Democrats to victory. In a recent television interview, Jeffries said, “We do have to look at every available legislative mean in order to do what the American people want us to do, which is bring an end to this reckless, unnecessary war.” Ending the war or reversing the tariffs would be difficult because Trump has national-security powers, the veto and support among Republicans. Democrats could use Congress’s power of the purse to restrict funding for Trump initiatives they oppose, but they would risk government shutdowns or criticism that they are harming the troops.
House Minority Leader Jeffries is poised to become House speaker, while Chuck Schumer is set to be promoted back to Senate majority leader. The new configuration gives Democrats a chance to make some points and show voters what they would pursue if their party gained full government control in 2028. Democrats also must negotiate with Trump and Republicans over must-pass legislation to keep the government open and funded.
Jeffries said late Tuesday, “This is a change election, and we understand as House Democrats that we need to deliver dramatic change,” and “Things are broken. We need a Congress that puts the American people first.” Senate Majority Leader John Thune said, “Senate Republicans will not stand idly by as the far-left, socialist wing of the Democrat Party attempts to unwind everything we’ve done,” and “Thankfully, we still have President Trump in the White House, and we’ll work with him to stop the worst impulses of Democrat extremism.”
Democrats captured control of the House and Senate in Tuesday’s election, a result that ousted dozens of Republicans. The Wall Street Journal described Democrats as entering the new Congress “with extraordinary momentum and Republicans reeling after surprise losses.” Trump will retain the veto for the final two years of his term, limiting Democrats’ ability to enact laws that reverse his policies. The resulting clashes could be even more intense than those between Trump and Democrats when Democrats controlled the House in 2019 and 2020.
Potential areas of compromise include support for farmers, a tax credit for film production and an overhaul of permitting rules for major projects. Conflict is likely over must-pass legislation. Government funding is scheduled to lapse in mid-December, and Congress must raise the debt limit by some time in 2027. Those tasks remain under Republican majorities in the next two months of the lame-duck Congress; if they do not get done in that period, Trump and Democrats will have to figure out a path forward.
Beyond disputes over funding levels, Democrats have been frustrated by administration attempts to rescind or change spending levels approved by Congress. They may seek additional guardrails to prevent Trump and budget director Russell Vought from sidestepping Congress, either by refusing to use money Congress directed them to spend or by spending funds Congress did not approve. Must-pass bills could also become the fighting ground for Democrats’ demands on the Iran war, tariffs and other issues. During Trump’s first term, right after Democrats won the House in the 2018 election, Trump triggered a government shutdown by insisting that Congress include border-wall funding in a must-pass spending bill.
The Wall Street Journal’s accompanying contributor notes describe Richard Rubin as its U.S. tax policy reporter in Washington, focused on the intersection of taxes, legislation, politics and economics. Rubin was the lead author on the Journal’s coverage of major tax law changes in 2017 and 2025 and writes frequently about corporate taxation and the Internal Revenue Service. Before joining the Journal in 2015, Rubin covered tax policy for Bloomberg News and Congressional Quarterly; earlier, he wrote about local government and transportation policy for the Charlotte Observer. Rubin is a native of New Jersey and a graduate of Duke.
The Journal also identifies Lindsay Wise as a reporter covering Congress. Wise previously worked as a Washington correspondent for the Kansas City Star and as an investigative reporter for the Star and McClatchy newspapers. Before McClatchy, Wise reported for the Houston Chronicle’s metro desk on the night cops beat. She also covered Texas veterans and the military, traveling to Iraq for the Chronicle, and documented stories of Houston’s Arab and Muslim refugee communities. Wise has a bachelor’s degree from the University of Virginia and a master’s degree from Modern Middle Eastern Studies from St. Antony’s College, Oxford. Between 2003 and 2006, Wise worked as a freelance journalist in Egypt.