Democrats won control of Congress. Their economic agenda is set to target healthcare, tariffs, and Trump's allies.

Democrats retook power in Washington on Tuesday, flipping key House and Senate seats to command majorities in both chambers of Congress.

The power shift creates a new platform for Democrats to launch investigations of President Trump's economic allies — Elon Musk, to name one — and pass bills that may be unlikely to become law but will mark a sharp change in the political climate for business leaders and economic issues after two years of unified Republican control.

The change also appears set to elevate figures like Democratic Sen. Elizabeth Warren and others to prominent positions with oversight over economic policy.

Democrats are planning "a shock-and-awe legislative sprint," the New York Times reported , on issues like healthcare subsidies and Trump's tariffs, which could prompt a wave of bills to pass the House but stall against the 60-vote threshold in the Senate. Even in the minority, Senate rules mean Republicans retain the power to stop legislation.

Democrats are also likely to seek areas of bipartisan agreement on pharmaceuticals, the housing market, and AI data centers, all sectors that both Republicans and Democrats have spotlighted on the campaign trail.

Divided government, of course, may also set the stage for political clashes that could destabilize markets and the broader economy.

"While conventional wisdom suggests equities tend to rally following midterm elections, particularly when the outcome produces divided government, we caution that the post-election environment may look considerably different this cycle," Raymond James Washington Policy Analyst Ed Mills warned in a pre-election note.

He added that much of the recent volatility has been driven by unexpected moves from the White House. "We believe Trump will increasingly test the limits of executive authority during the remainder of his term," Mills wrote.

'Lawyer up': An expected focus on Elon Musk and Trump's economic team

The House is set to be led by Rep. Hakeem Jeffries of New York, who has been notably tight-lipped about his plans .

He met with Democratic volunteers as Election Day wound down and told reporters , "We're relentlessly focused on driving down the high cost of living and fighting for an affordable America."

Jeffries avoided the question of whether he would reach out to Trump, while the president told the New York Times he will accept the election results .

Going by early signals, Democrats intend to aim their new powers at an array of high-profile targets, with Musk chief among them, as part of a far-reaching effort to impose new checks on the Trump administration.