2026 Midterm Elections: What the New Congress Means for Equipment Manufacturing

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11/9/2026

Election Day may be behind us, but the full picture of the 120th Congress is still coming into focus. Members of AEM’s federal advocacy team share their firsthand perspectives on what they’re watching, what the results tell us so far, and how AEM is already preparing for the new Congress. 

Katherine Grady, Director, Federal Affairs 

“A divided government, with Democrats holding the majority in Congress and a Republican in the White House, will make legislating harder. The question now is where Democrats and President Trump might find common ground. 

One of the broader shifts we saw this year was toward a more populist political outlook. Wins in rural areas for Democrats will bring more populist voices to Washington, D.C., and opportunities to partner with President Trump on issues that may not be palatable to mainstream Republicans. States like Iowa and Kansas have been considered reliably red, but their populist streaks have shown in elections of Democratic governors and even senators in Iowa in recent years.  

The Trump Administration has veered into issues like input prices in agriculture and anti-competitive behavior in the food supply chain. The December 2025 executive order gave way to the Federal Trade Commission’s investigation into fertilizer prices, and now a public inquiry with USDA regarding agricultural equipment manufacturing and distribution. 

Democrats in Congress could bring new fire to this issue and put pressure on industry through oversight hearings and anti-competitive legislation based on the FTC’s findings.  

After a disappointing two years from the Trump Administration, many advocates in the Make America Health Again (MAHA) movement have found willing partners in Rep. Chellie Pingree (D-Maine) and Rep. Alexandria Ocasio-Cortez (D-N.Y.). Their work on pesticide labels and state failure-to-warn claims could be elevated with a Democratic majority but also allow the White House to throw a bone at MAHA advocates.  

President Trump himself gave a similar prediction for the next two years: 

‘After a couple of months of vetoes, they'll call and say how do we get this stuff done? And we'll work together,’ Trump said. ‘I have a lot of friends who are Democrats, believe it or not.’ 

It remains to be seen if he is true to his word, but populist issues uniting Democrats and President Trump could be the path forward for bipartisanship in the next Congress.” 

Christopher Garcia, Government Relations Manager, Federal Affairs 

“After the midterm elections, Washington woke up to a very different political landscape. Democrats have wrestled control of Congress away from Republicans, leaving President Trump in unfamiliar territory. He has governed with divided government before, but never with both chambers controlled by the opposition party. 

So now the question is pretty simple: does Trump veto, or does Trump deal? 

The answer will probably be a little bit of both. But big-ticket items have a funny way of forcing people into the same room. 

Surface transportation reauthorization, infrastructure, permitting reform, workforce policy, agriculture, trade, and manufacturing competitiveness all affect constituencies represented by both parties. There are real opportunities there for equipment manufacturers. A bipartisan deal could spur investment and provide greater certainty. A bad deal on trade, taxes, labor, or regulation could just as easily create increased costs.   

Our job is to understand where there is room for agreement and make sure equipment manufacturers are part of those conversations. That matters because the industry doesn't fit neatly into either political camp. Equipment manufacturers employ people and serve customers in red states and blue states alike. 

If the Trump era has taught Washington anything, the only certainty is uncertainty. This time, even President Trump is heading into territory he has not navigated before. Whether the next two years are defined by vetoes, deals, or a little bit of both, the industry’s strategy is simple: be in the room either way.” 

Kate Fox Wood, Vice President, Federal Affairs  

“Every election brings a freshman class to Washington and a window to make an impression. Take the incoming Democratic class. They are absolutely not one ideological bloc. They have a range of priorities, from Medicare for All and labor rights to members running on domestic manufacturing, targeted trade policy, permitting reform, strengthening small business, and boosting agricultural competitiveness. 

They also bring tremendous real-world experience: farmers, small business owners, engineers, physicians, veterans, union leaders, educators, mayors, and state legislators. Many of those backgrounds already intersect with our industry, which gives the industry a lot to work with. 

But we also cannot assume they know our issues. Dozens of incoming lawmakers, and an even larger number of congressional staffers, will arrive in Washington having never worked through a surface transportation reauthorization or a farm bill. That makes the first year especially important. Before the legislative debates get complicated, we have a chance to explain who this industry is, what it makes, who it employs, and what decisions made in Washington actually mean for manufacturers and their customers. 

And much of that education starts with congressional staff. Relationships with legislative directors, chiefs of staff, and policy aides can matter just as much as the relationship with the member. 

The goal isn’t just an introduction. It’s to become a resource and a trusted partner. When a new member or staffer has a question about manufacturing, agriculture, construction, or the equipment economy, we want their first thought to be: I should call AEM.” 

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