Democrats won decisive control of Congress in the 2026 midterm elections, flipping Senate seats in Texas, Ohio, Iowa, and North Carolina. The party also won races in South Carolina, Georgia, and New Hampshire.
The results delivered a setback to tech billionaires and corporate groups that backed Republican candidates. Elon Musk, described as the world's richest man and the cycle's largest individual political donor, spent record sums backing Republicans who lost, including in Texas. Musk's spending on behalf of Ken Paxton's Senate campaign exceeded $200 million.
Data center policy emerged as a central election issue, particularly in Texas. Gina Hinojosa defeated Gov. Greg Abbott after campaigning for a pause on new AI data center projects until Texas adopts tougher rules. In a CNBC Voter Poll, 56% of voters said data centers were a crucial or major factor in their decision, with Democrats ranking the issue higher than Republicans.
James Talarico defeated Paxton for Senate, becoming the first Democrat elected to the U.S. Senate from Texas in nearly four decades. During his campaign, Talarico repeatedly attacked Musk, accusing him of trying to buy "his very own personal United States Senator."
Democratic control of the House positions the party to launch investigations into tech companies. Rep. Greg Casar, chair of the Congressional Progressive Caucus, called for "AI company CEOs should be called to testify under oath." Rep. Robert Garcia, presumptive chair of the oversight committee, issued a statement saying "Lawyer up."
Voters cited rising prices, government corruption, and billionaire influence as frustrations, according to exit polls. Stock futures fell as the scale of Democratic gains became clear, with Dow futures and S&P 500 futures slipping Tuesday evening.