Democratic gains shift energy policy toward local action

Democrats captured both chambers of Congress in the US midterm elections, but Donald Trump’s continued control of the White House limits prospects for major climate and energy legislation. Neither chamber has the two-thirds Democratic majority needed to override a presidential veto. The divided government contrasts with the unified party control that enabled clean-energy support in the 2022 Inflation Reduction Act and cuts to those incentives through the 2025 One Big Beautiful Bill Act.

Permitting reform offers a potential opening for bipartisan agreement. The Senate is scheduled to vote on the White House-backed Bipartisan American Affordability and Jobs Act on November 9, before the new Congress takes office. Democrats could instead seek to renegotiate the proposal. Their congressional majorities also give them subpoena and investigative powers to scrutinize Trump administration agencies, including cuts to environmental staffing and investments.

State and local results could have more immediate consequences. Democrats swept local control in Pennsylvania and took the Georgia Public Service Commission for the first time in 30 years, gaining influence over electric utilities and grid development. Voters overwhelmingly favored restrictions across 41 local ballot questions concerning data centers, with nearly all appearing headed against development as of November 4. In Texas, Democrat Gina Hinojosa defeated Governor Greg Abbott after campaigning for a complete pause on data center development, potentially affecting the state’s grid and the broader industry.