Legislative Update: Republican Trifecta Opens Opportunities to Make Significant Legislative Changes

Republican Trifecta Opens Opportunities to Make Significant Legislative Changes

Republicans had an exceptional election night, with former President Donald Trump achieving a historic political comeback and Republicans extending their “red wave” beyond the presidential race after flipping the Senate and holding their narrow majority in the House of Representatives.  The GOP gained four seats in the Senate with a 53-47 majority but had to wait a week for enough races to be called to clench a 218-207 majority margin in the House with nine seats still uncalled.  The GOP victory delivers the highly sought-after political trifecta, granting Republicans control of the executive branch and both chambers of Congress.

A trifecta will position President Trump and Republican lawmakers with sizeable opportunities to advance top priorities such as tax reform, deregulation, immigration, and energy policy. Additionally, a Republican trifecta will allow Senate Republicans to take advantage of that chamber’s budget reconciliation process, enabling them to pass fiscal measures like tax cuts, entitlement reforms, and spending bills with a simple majority rather than the usually needed 60 votes under the filibuster.

With a unified government, Republicans are also expected to use the Congressional Review Act (CRA) to overturn recent Biden-era regulations falling within the CRA’s “lookback” period, particularly those finalized after August 1, 2024. Members must introduce a joint resolution of disapproval, and Congress must act on it within certain periods to take advantage of the fast-track procedures. After being passed in both chambers, it is sent to the President, who can sign or veto the joint resolution. Congress can override that veto with a two-thirds vote.

If Republicans can maintain party unity, they have a rare opportunity to enact sweeping, high-stakes legislative packages that could significantly impact businesses and stakeholders across multiple sectors.  However, the results of the 2024 election underscore America’s deep divisions, with nearly half of the country voting against the prevailing party.  While Republicans achieved a sweeping victory, the underlying discontent that drove voters toward change remains potent. If Republicans fail to deliver tangible improvements, the electorate’s restlessness suggests they could face another shift in two years.

Members Return to Serve on Key Committees

Leaders on key environment and energy committees will return for the 119th Congress with some changes expected during the elections that will be held in December.  Sen. Shelley Moore Capito (R-WV) is expected to chair the Senate Environment and Public Works Committee, with Rep. Sen. Sheldon Whitehouse (D-RI) becoming the ranking member.  Moore Capito was also elected as the GOP’s new Policy Committee Chair.

Sen. Mike Lee (R-UT) is expected to become the new chair of the Senate Energy and Natural Resources Committee. Notably, the outgoing ranking member of the Senate committee, John Barrasso (R-WY), will now serve as assistant majority leader to the newly elected Senate Majority Leader, John Thune (R-SD).

House Speaker Mike Johnson (R-LA) the GOP nomination to return for another term as the House Speaker.  He will have to be formally voted in on Jan. 3.  The chairman’s seat on House Energy and Commerce Committee there is likely to be a three-way contest for chair between Reps. Bob Latta (R-OH), Brett Guthrie (R-KY) and Richard Hudson (R-NC).

Trump’s Transition 2.0 Moving Full Steam Ahead, Big Changes at EPA

In a string of nominee announcements, President-elect Donald Trump announced that he had selected former Rep. Lee Zeldin (R-NY) as the next EPA Administrator. Zeldin was a member of the Climate Solutions Caucus and the Conservative Climate Caucus when he was in Congress..  In a statement, Trump said that Zeldin “will ensure fair and swift deregulatory decisions that will be enacted in a way to unleash the power of American businesses while at the same time maintaining the highest environmental standards, including the cleanest air and water on the planet.”

Zeldin’s legislative record on environmental issues includes backing legislation to address PFAS contamination and advocating reversing New York’s ban on fracking when he ran for Governor. He also criticized the cancellation of the Keystone pipeline. However, his overall environmental record, reflected by a 14% lifetime score from the League of Conservation Voters (LCV), shows opposition to many environmentalist priorities.

Trump’s transition 2.0 is shaping up starkly contrasting his previous term. Trump is now seasoned in knowing how the White House and the Hill work and strategically choosing those around him. The people on his transition team have been working for a great deal of time on how best to execute and deliver the wave of executive orders that will be issued in January.  Their choices in staff and announced nominees show that picking from within Trump’s trusted Republican circles.

Unlike last time, this transition is moving at warp speed so the Trump administration can hit the ground running when Trump is inaugurated to deliver his ambitious “Day One” agenda with maximum impact.

President-elect Trump has promised to implement a broad deregulatory agenda across all government agencies, including the EPA and clean energy policies. His plans include rolling back Biden-era standards on environmental justice and auto emissions and repealing significant air, water, and toxic substance regulations. Expect to see huge structural changes to the EPA, including restructuring the agency’s workforce and reductions in its budget. This could reduce the capacity to enforce regulations and conduct scientific research, such as TSCA assessments.

The Trump administration will remain aligned closely with oil and fossil fuel companies and decrease emphasis on renewable energy.  Trump will roll back restrictions on drilling on federal lands and streamline the permitting to allow for economic growth while at the same time protecting the environment. President-elect Trump intends to dismantle Biden’s climate and environmental initiatives, especially targeting the Inflation Reduction Act (IRA) and EPA regulations on power plants and emissions.  He also plans to withdraw from the Paris Climate Accord for the second time.

President-Elect Trump is expected to conduct a thorough review of the Infrastructure Investment and Jobs Act IIJA, aiming to scale back and repeal sections he considers excessive. His administration will likely revive executive orders limiting environmental and wildlife law protections to expedite federal infrastructure project approvals.