Democrats won control of the House and the Senate in the November 3 midterm elections and will hold both chambers when the 120th Congress convenes in January 2027, ending unified Republican control of Washington for the final two years of President Donald Trump's term in office.

The outcome shifts the balance of power on Capitol Hill but not the balance of power over the executive branch. For federal managers, the practical effect will be felt in three places: the budget process, congressional oversight, and the debate over the administration's workforce policies. Most existing personnel rules remain in force unless courts or new laws change them.

Democrats will chair the committees that write spending bills, oversee agencies, and confirm nominees. Rep. Robert Garcia (D-CA), the top Democrat on the House Oversight Committee, is widely expected to become its chair.

The president retains veto power, and the projected Senate majority falls short of the 60 votes needed to overcome a filibuster. Federal News Network reported that Democrats are therefore likely to lean on investigations and on must-pass legislation rather than stand-alone bills.

The most immediate issue is the current continuing resolution, which expires December 11. The lame-duck session, in which Republicans still hold both chambers, will decide whether agencies receive full-year fiscal 2027 appropriations, another short-term extension into the new Congress, or face a lapse in funding.

We explore Fiscal Year 2027 appropriations and federal employee pay in greater depth elsewhere in this issue, and will analyze how the 120^th Congress could impact policies such as Schedule Policy/Career, performance management, collective bargaining, and more in the next issue of The Federal Manager magazine.