Warning Signs: Congressional Investigations in 2026 and Beyond

As it becomes increasingly difficult to pass legislation in a polarized political environment, with narrow margins in either chamber of the U.S. Congress, congressional investigations have become a more frequent – and potentially dangerous – risk for potential targets.

With less time spent on legislative hearings and markups, lawmakers have more time, resources and incentives to conduct investigations of the private sector, tax-exempt entities and individuals. These incentives and risks increase both during and following a midterm election in which the Democrats may win majorities in one or both chambers.

This Holland & Knight alert outlines those risks, what to expect in the remaining months of 2026, potential targets by a Democratic Congress and bipartisan matters that will remain subject to congressional scrutiny, regardless of the upcoming elections.

Congressional Investigations Generally

Most congressional committees have a formidable arsenal to conduct investigations, including the power to issue subpoenas for records and testimony, conduct depositions or transcribed interviews, hold public hearings, publicly release documents and the investigative findings of various committees, hold parties in civil or criminal contempt, and refer matters to the executive branch for additional action.

The strategies for those under investigation are different from those facing litigation or executive branch investigation, and the only threshold for Congress is that the subject matter be relevant to potential legislative action (i.e., nearly everything). With congressional investigations becoming markedly more political in recent decades, the risks and uncertainty around them has increased substantially.

For even the most experienced and well-resourced entities, congressional investigations can be harrowing experiences. They often take place publicly and begin without warning, potentially causing harm to reputations, as well as legal, regulatory, policy and financial interests.

Unlike civil litigation or executive branch investigations, congressional investigations have no judge or neutral third-party arbiter to resolve disputes or minimal thresholds for launching an investigation. In most cases, the only recourse for disputes over the scope of an inquiry, requests to respect privileges or confidentiality, or efforts to extend response deadlines is through negotiations with the committee staff conducting the investigation. Decisions on these matters are largely at the chair's discretion. Understanding the risks and planning ahead is often key to mitigating the potential damage of congressional investigations.

Congressional Investigations by Republicans in 2026

With the upcoming congressional midterm elections and potential Democratic majorities, Republicans in Congress face different pressures than they did even a year ago. These include limited time to complete ongoing investigations before the campaign season is in full swing, increased incentives to conduct investigations on topics that appeal to primary voters and to act with increased aggressiveness.

Many congressional Republicans are now more populist than in previous decades, meaning that they may not view corporate America or large institutions the same as they or their predecessors did in the past. As a result, willingness to launch investigations into the private sector, whether the focus is Big Tech, the healthcare industry or manufacturers, has increased substantially.

As Congress moves toward the midterms, Republican members of congress are expected to continue launching investigations with the new intensity mentioned above. Likely continued topics of investigation include:

• Tax-Exempt Entities. So far in the 119th Congress, a range of tax-exempt issues have been a significant focus of congressional Republicans. Issues under examination have been activities by tax-exempt entities related to immigration, protests, political activity (including tax-exempt entities making grants to tax-exempt entities engaged in this work) and relationships with China (and related Foreign Agent Registration Act issues). These have included a large number of hearings and congressional letters, as well as threats of future legislative action. This attention will be heightened for organizations that focus on politically sensitive issues, such as immigration, racial- or ethnicity-based programs, the environment and matters pertaining to the Middle East.
• Big Tech. Congressional Republicans are likely to continue oversight of social media platforms and internet companies on issues such as alleged discriminatory practices against conservative outlets, content moderation, data privacy and foreign influence.
• Higher Education. Few sectors experienced more congressional scrutiny in the 118th and 119th Congresses than higher education following campus events in the wake of the October 7, 2023, attacks in Israel and the Israeli response. This expanded to other diversity-related issues, including issues related to transgender athletes in collegiate sports, relationships with China and espionage of university research. With the issue remaining top of mind for many Republican voters, this attention is expected to continue as midterm elections approach.
• Diversity, Equity and Inclusion (DEI) and Economic and Social Governance. Practices related to DEI and environmental, social and governance, whether by corporations, higher education or other tax-exempt entities, are expected to be of continued interest to congressional Republicans in the remainder of the 119th Congress. Although many companies have reduced their focus on these efforts since last year, the perception that corporate leaders are prioritizing left-leaning policies over shareholder value continues and will be likely examined by a range of committees.
• Artificial Intelligence (AI). Congressional Republicans have shown significant interest in AI, particularly on maintaining U.S. AI dominance over China and preventing AI tools from falling into the hands of adversaries. There is also widespread interest in investigating safety concerns with AI and chatbots, particularly as it relates to child safety.
• Healthcare. Healthcare-related congressional investigations will continue regardless of midterm elections, and there has been notable growing interest by Republicans in the 119th Congress. Multiple U.S. Senate and House of Representatives committees have launched investigations of healthcare-related companies, including document requests and public hearings. These issues under scrutiny include healthcare prices, pharmacy benefit management, Affordable Care Act premium subsidies and the use of AI. In light of popular public concern over healthcare pricing, similar inquiries are expected to continue.
• China-Related Matters. The House Select Committee on Strategic Competition Between the U.S. and Chinese Communist Party continues to reflect a largely bipartisan effort to investigate the threat posed by the Chinese Community Party (CCP) and develop a legislative plan to respond to the threat. In addition, congressional Republicans have launched inquiries into a range of issues related to the CCP specifically in the 119th Congress. These include an oversight hearing by the House Ways and Means Committee on Chinese influence over tax-exempt entities by skirting federal law, efforts to spur executive branch investigations related to the CCP skirting Federal Agents Registration Act (FARA) and Lobbying Disclosure Act (LDA) to influence U.S. policy, Chinese-owned entities or U.S. companies with supply chains originating in China, and Chinese use of AI.

With Republicans in control of both houses of Congress and the executive branch, it is common for similar investigation to come from both branches. Thus far in the 119th Congress, both branches have launched investigations of bias in news sources and other websites, women's sports and large tax-exempt organizations, including private foundations and immigration-related tax-exempt organizations. This relationship is likely to continue and, if it appears likely that Democrats will control one or both houses in the 120th Congress, it is foreseeable that federal agencies may launch investigations similar to current congressional investigations.

Congressional Investigations and Potential Democratic Control

Democratic members and staff in both chambers have already begun crafting oversight plans should they win majorities in November. Some have gone as far as issuing document retention letters and, though those letters may have no legal effect now, failure to comply may lead to future legal jeopardy should a future congressional investigations client not comply. With prior experience of letters to the executive branch being rebuffed or ignored, staff are looking specifically at private sector organizations that have more risk and vulnerabilities in a congressional investigation.

The lists under discussion are extensive, specific and crafted with the benefit of months of sharpening ahead. The investigations under consideration follow some core themes:

Trump Administration

• communications and activities between the Trump Administration and private companies, including financial contributions to the construction of President Trump's White House ballroom, settlement funds earmarked for the Trump Presidential Library and awarding of federal contracts to companies with ties to the administration
• allegedly improper use of government information, including activities by the U.S. Department of Government Efficiency (DOGE)
• business investments and activities related to the Trump family, including companies in the drone and defense industries, crypto currency, real estate and media; congressional attention will likely also focus on business dealings by the families of cabinet members
• U.S. Department of Homeland Security contracts involving deportation and immigration enforcement, border wall and infrastructure, detention center and prison, surveillance and public relations contracts
• entities contracting with the U.S. Department of War, focusing those with ties to the administration and contracts related to the Golden Dome missile defense system
• public relations contracts awarded by federal departments, which are a perennial point of interest of Congress in a divided government, with a particular focus on those where a secretary or agency head played a role or the awardee is connected to the administration in any way
• presidential pardons, for which congressional Democrats are likely to seek transcribed interviews of individuals pardoned by the president and related parties where there are allegations of related donations or inappropriate influence
• Venezuela oil, for which there are two separate issues that are likely to arise: administration communications with industry before and after the capture of former leader Nicolás Maduro and matters related to oil revenue since the capture

Consumer and Economy

• Data Farms and Energy Usage: With the rise of AI, crypto mining and cloud computing, energy use by data farms has increased substantially in recent years. Congressional inquiries are likely to target a wide variety of sectors on this issue, focusing on grid reliability, climate impact and effects on energy pricing.
• Algorithmic Pricing: With a focus on consumer issues ahead of the 2028 presidential election, algorithmic pricing across industries presents an opportunity to highlight both affordability concerns and unease with advancing technology. On issues such as apartment rentals and online air travel and hotel bookings, committees may focus on matters such as anti-competitiveness, discrimination against consumers in certain locations or with certain online characteristics, and transparency.
• Governmental AI Use: The federal government's use of AI across activities such as law enforcement, decisions related to government benefits, surveillance and privacy and data security are all potential topics potential investigations of AI providers and related contractors.
• Environmental Rollbacks: The nexus between industry-affiliated administration appointees, lobbying efforts and changes to policies related to oil and gas, chemicals, pesticides, drinking water and climate regulations.

Perennial issues related to China, healthcare prices, the environment, lobbying activities, and tax practices by multinationals and large businesses will also continue to be a major part of any Democratic oversight agenda.

Key Takeaway

Regardless of the outcome of the 2026 midterm elections, congressional investigations will remain a central focus. In the event that Democrats hold one chamber and Republicans hold the other in 2027, it is likely a recipe for the widest array of congressional investigations (and counter-programming investigations) as any target of either party could be subject to information requests, hearings and other activity.

No Safe Harbor: Bipartisan Targets

Several sectors and issues are likely to fall under congressional investigations regardless of which party controls Congress. Although the parties may take different approaches, the risks posed by these investigations will likely be significant. These include AI, healthcare prices, consumer prices generally, data privacy, FARA and LDA compliance, and all things potentially related to CCP activities in the U.S.

Considerations for Potential Targets of a Congressional Investigation

Congressional oversight is not a challenge to be viewed in a silo but should be understood in context with a range of interests, including parallel litigation, legislative and regulatory efforts, risk and reputation management communication strategy, and related media relations. Although the specific entities of congressional oversight in the 119th Congress remain unknown, there are steps potential subjects of inquiry can take to minimize the risk of congressional scrutiny.

Before congressional inquiries begin, it is critical to establish communication hygiene and take stock of potential risks, as well as develop a response plan and team that will coordinate response. These matters should not be considered routine lobbying issues or white-collar litigation – the risks they pose and the strategies necessary to counter them are entirely different.

Organizations across sectors should review their current and past operations and consider where they may overlap with the investigative priorities of either party. This assessment should be done under attorney-client privilege to better protect the organization and identify possible lines of attack moving ahead.

Holland & Knight Can Help

Holland & Knight has one of the country's premier Congressional Investigations practices. Our attorneys routinely defend companies under congressional inquiry or criminal investigation, particularly with respect to the receipt and use of federal funds. These inquiries are not approached as isolated matters to be managed in a silo but as serious challenges affecting a broad range of legal, policy, regulatory and public relations concerns.

Holland & Knight also offers a fixed-fee product for clients looking to understand their risks, and implement risk-mitigation efforts, prior to a congressional investigation. The calm before the storm – while threats of government scrutiny are on the horizon but not yet an active issue – is the time to create plans of action, understand the spectrum of risks, map vulnerabilities in terms of public relations, government approvals and contracts, and the plaintiff’s bar, and also identify key relationships that will help your organization weather the storm should scrutiny come. Holland & Knight has led the charge in developing this distinct product for our clients at a fixed fee.

Holland & Knight attorneys, public policy professionals and crisis management advisors also have deep insight into congressional investigations strategy, a thorough understanding of the legal and policy issues facing potential investigative targets, and skill in high-stakes communications and witness preparation.

For more information or questions, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.