Businesses Risk Wave of Democratic Probes on Costs, Corruption

(Bloomberg) -- Private businesses risk an onslaught of congressional investigations if Democrats prevail in midterm elections as the opposition party prepares to concentrate sweeping oversight powers on allegations of Trump administration corruption and public anger over the cost of living.

Companies including Amazon.com Inc. and Nvidia Corp. have already been hit with investigative inquiries from Democrats who could compel testimony if the party secures a congressional majority.

"There's a cost to the American people of the out-of-control corruption that has been visited upon them by Donald Trump and MAGA extremists," House Democratic Leader Hakeem Jeffries declared last month, as lawmakers left Washington for full-time campaigning. "We're going to hold the crooks accountable beginning on Day One."

Trump retains a veto over legislation for two more years, regardless of the election results. Not so over a new majority's oversight authority, which it can wield as a potent political weapon through attention-grabbing public hearings and damaging investigative revelations.

On consumer issues, key Democrats likely to gain subpoena power are showing continued interest in scrutinizing the party's perennial corporate punching bags in healthcare, tech, housing and financial services, as well as new targets related to surveillance pricing, data centers and artificial intelligence.

Companies and corporate executives also would be in the crosshairs of Democratic probes of Trump administration ethics controversies. Businesses perceived to have profited from ties to the White House would be targets — and with fewer legal privileges than the executive branch offer the quickest route to revelations that could ignite public outcry.

Amazon.com Inc., Apple Inc., Comcast Corp., Meta Platforms Inc., Microsoft Corp. and Nvidia Corp. have already been hit with letters from Democratic lawmakers demanding information on donations to Trump's ballroom. Such letters typically telegraph investigative objectives.

Plenty of companies aren't waiting for the election to get ready.

"Many corporate clients, in particular, are acutely aware that there is a dark cloud looming on the horizon just past the beginning of November, and that there is going to be a broad wave of congressional investigations directed against Corporate America," said Robert Kelner, who leads Covington & Burling's congressional investigations practice.