Voters handed Republicans complete control of Congress on Election Day, putting the party in charge of the Senate for the first time since 2006 while adding to the GOP’s existing majority in the House of Representatives. The outcome promises to shift the political landscape for the final two years of President Obama’s second term when the 114th Congress begins in January.
After the party flipped 8 seats on election night, at least 53 Republican senators are poised to serve in the next Congress. That number will increase by one if Republican Bill Cassidy fulfills expectations and defeats Democratic incumbent Senator Mary Landrieu in a December 6 Louisiana runoff election.
In the House, as of November 19 the GOP had won a net gain of 12 seats, expanding the party’s majority to 29. While the exact number could still shift in the coming weeks as a handful of races remain too close to call or headed for runoffs, the 114th Congress is expected to begin with Republicans holding their largest House majority since the 1940s.
The GOP advantage in each chamber will fall short of the two-thirds majority necessary to override presidential vetoes, but early indications are that the party will make a target of EPA and other federal agencies they accuse of regulatory overreach. There is talk of moving legislation to undo controversial policies such as EPA’s “Waters of the U.S.” rule as well as the agency’s greenhouse gas regulations, though President Obama would almost certainly veto those measures. Republicans could, however, also target the regulations through riders attached to appropriations legislation – thereby essentially daring the president to veto an entire spending bill over the rules and risk shutting down parts of the government.
Republican lawmakers will also be likely to attack any future regulatory change that could impose new “inherently safer technology” review or implementation requirements on facilities that handle chemicals. The Obama Administration is currently weighing comments on whether to expand EPA’s authority under Section 112(r) of the Clean Air Act to include IST mandate authority over facilities (including water treatment plants) that store certain chemicals – a move that is backed by most Democrats but opposed by most Republicans on Capitol Hill.
Among policy areas where both parties could work together, there is some speculation that a comprehensive tax reform bill could attract bipartisan cooperation. Earlier tax reform proposals have included plans to raise revenue by imposing taxes on municipal bond interest – a policy that would have the side effect of increasing infrastructure borrowing costs for local communities. Municipal organizations that rely on tax-exempt debt will therefore have to monitor this issue closely, and must be prepared to communicate directly with lawmakers on the importance of preserving tax benefits associated with municipal bonds.