What the Republicans’ huge loss means for Donald Trump

The Democrats just put President Donald Trump in a bind.

The party is expected to win majorities in the House and Senate after beating Republicans in key races across the country. The blue tsunami will topple Washington and crush the Republican bulwark of Congress that both supported and protected Trump during his first two years in office.

The midterm result dashed any chance Trump had of passing partisan legislation during the second half of his presidency. And many of the interests he was able to pursue without congressional input—including tariffs, the war in Iran, and a slew of Washington-area construction projects—are sure to face sudden pushback from newly strengthened Democratic majorities.

However, the paradigm shift does not leave Trump powerless. As president in an era of expanding executive power, Trump wields singular authorities that could thwart Democrats’ efforts to pursue their own agendas.

But with his grip on the Capitol shrinking and his approval ratings hitting record highs in many polls, it’s unclear how much support he will be able to muster to fight the political battles ahead.

Even before Election Day, analysts and pundits had envisioned a Democratic rout so decisive that it would hold the Republican Party accountable, and could even pose an existential threat to Trump’s “Make America Great Again” movement.

Marc Short, president of Advancing American Freedom and former chief of staff to former Vice President Mike Pence, told CNBC Tuesday afternoon that the GOP has moved away from its conservative foundations.

“We need a refresh right now,” Short said in an interview. “We have lost our way.”

Trump has remained vague about what he hopes to achieve during the remainder of his term. But he has shared his vision for how he could coexist with a Democratic majority, and that involves extensive use of the veto.

“It’s one of the most powerful powers a president has,” Trump said in an interview with Fox News overnight. “They will send crazy things and I will veto them.”

“And after a few months of vetoing, they’ll call and say, ‘How can we do this thing?’ And we will work together,” he said, adding, “I have a lot of Democratic friends.”

Trump has already declared his willingness to veto tons of legislation Democrats send him. In a New York Post podcast interview published Monday, Trump said that if Republicans don’t win, “I’ll veto everything.”

Pressed to detail his plans for the next two years, Trump touted his record and said: “The most important thing is to keep going. It’s going to get better and better, unless people who hate our country come in.”

If that happens, “I guess I’ll become Mr. Veto,” Trump said.

He may soon get his chance: House Democrats, about to be led by current Minority Leader Hakeem Jeffries of New York, plan to pass a series of bills as soon as they take the reins next January, CNBC has learned.

The legislative push, first reported by The New York Times, aims to show a united Democratic caucus acting quickly on the issues they were elected to address, particularly sky-high costs on everything from gasoline to groceries.

In the first 100 hours after being sworn in, House Democrats plan to introduce bills restoring enhanced health insurance subsidies that expired under the Republican-led Congress, and reversing cuts to Medicaid that Trump signed into law earlier this year.

Democrats also plan to introduce a bill that would reverse Trump’s drastic tariffs and reaffirm Congress’ role in setting import taxes. And they will again pass legislation to end the war with Iran, or seek authorization from Congress to continue it.

But without Trump’s approval, these bills could amount to little more than symbolic gestures, as Democrats won’t have the two-thirds majority in both chambers needed to override a presidential veto without help from the Republican Party.

And there’s no guarantee the bills will even make it out of Congress: Despite their landslide victories, Senate Democrats will still fall short of the 60 votes needed to circumvent the chamber’s filibuster rules for most legislation, giving Republicans key leverage in the minority.

Democrats could also benefit in the long term from Trump’s vetoes. Forcing the president to reject many popular bills could give them a tough time in the 2028 elections.

It is far from clear that Trump thinks he can compromise with Democrats on any of their initial legislative priorities.

But any potential for a working relationship with the opposition could be poisoned early on, as Democrats in both chambers aggressively signal their intent to launch politically charged investigations against Trump, his political and business allies and even members of his family.

Winning control of House committees gives Democrats the ability to issue subpoenas under current rules.

Rep. Robert Garcia, Democrat of California, who will likely chair the House Oversight Committee in the next Congress, said his panel would target the Trump family’s business dealings, corporate corruption and alleged abuses by federal immigration agencies. He also plans to refocus on the Trump administration’s handling of cases related to notorious sex offender Jeffrey Epstein.

As the results came in Tuesday evening, Garcia summed up his plans in a two-word statement: “Attorney up.”

It’s not just Garcia. Other Democrats have already demanded accountability from the Trump administration on a range of issues. Rep. Jamie Raskin, Democrat of Maryland, for example, last week accused Trump of using tariff exemptions to cut “sweet deals” with industries whose executives gave the president gifts.

Senate Democrats have sent similar signals.

“They’re going to have to plant new forests for all the subpoenas we’re going to print,” Sen. Ed Markey, D-Mass., said in an X article Tuesday evening in response to a post, appearing to refer to tech executives.

These investigations are widely expected to take up much of the remainder of Trump’s term.

Trump has extensive experience being the target of Democrats, who impeached him twice in the House during his first presidential term.

But as his base of support appears to be eroding inside and outside Washington, Trump may have to confront his political enemies with a smaller arsenal than he is accustomed to.

“I don’t expect Republicans to revolt” against Trump after midterm defeats, AAF’s Short told CNBC. “But I expect some of them will quietly distance themselves.”