Democrats win Congress in US midterms, set to reshape economic policy
Democrats won both the Senate and the House in unofficial results from Tuesday's US midterm elections. They take control in January and say they will push to cut living costs and hold the Trump administration to account.
- Democrats won the Senate and the House in unofficial midterm results, Anadolu Agency reported.
- The new Congress is sworn in on Jan. 3, 2027; lawmakers must settle a budget before a temporary funding measure expires Dec. 11.
- Iran's leaders say the result will not change US policy toward Tehran, though some officials see it as a reaction to the war.
Democrats won control of both the US Senate and the House of Representatives in unofficial results from Tuesday's midterm elections, according to Anadolu Agency. France 24 described the result as a landslide and said Democrats will take control of both chambers in January.
The Republican majority stays in power until newly elected lawmakers are sworn in on Jan. 3, 2027. Anadolu said the Democratic sweep is expected to change the direction of US economic policy and could block President Donald Trump's agenda.
Democrats say they will use their win to bring down living costs and hold the administration to account. France 24 reported that delivering this agenda could require deals with Trump himself. Anadolu noted that Trump had earlier threatened to veto any legislation if Republicans lost, but struck a more conciliatory tone on election night.
Incoming House Speaker Hakeem Jeffries said: "Medicaid cuts must be reversed and tax credits under the Affordable Care Act restored."
The new Congress faces a heavy fiscal workload, Anadolu reported. The budget deficit stands at $2 trillion, and lawmakers must negotiate a budget for fiscal year 2027 before a temporary funding measure expires on Dec. 11. US national debt reached $40.5 trillion as of Monday, close to the statutory debt ceiling of $41.1 trillion.
Anadolu also pointed to the Iran war and fuel costs. The US and Israel launched attacks on Iran on Feb. 28. According to the American Automobile Association, gasoline averages above $4 a gallon and diesel above $6, up 35% and 69% on a year earlier. Anadolu said concern over tighter tech oversight has pressured AI and data centre stocks, and that at least 45 data centre projects worth $68 billion were delayed in the second quarter because of local opposition.
In Iran, Supreme Leader Mojtaba Khamenei said in a statement: "If there are still those who believe that America can be persuaded to abandon its hostility toward the Iranian nation through concessions or partisan changes in the US political system, they are gravely mistaken," according to DW. Parliament Speaker Mohammad Bagher Ghalibaf wrote on X: "The Americans said no to war". He also acknowledged that rising living costs contributed to the Republican loss.
Background
khabr.pk reported on 4 November that Democrats had won both houses of Congress, according to the Associated Press tally cited by Al Jazeera. On 5 November it reported that Trump acknowledged the Iran war and the fuel prices it caused affected the Republican defeat.
Why it matters
US policy on the Iran war and on trade affects Pakistan, and the new Congress will shape both. Fuel costs are a live issue for households: khabr.pk recorded petrol at Rs362 per litre and high-speed diesel at Rs387.81 per litre on 4 November. The US dollar closed at Rs276.67 in the interbank market on 5 November, so US budget and debt decisions are followed closely by Pakistani businesses and investors.
