Businesses are scrambling to assess the impact of Democrats winning control of the Senate, a development that took some by surprise and is expected to accelerate Biden administration policy changes and increased regulatory scrutiny of industries such as finance and oil.
Companies and trade groups are bracing for further government oversight after Democrats won both seats in Tuesday’s Georgia runoff election. While narrow control of the Senate makes it difficult for Democrats to pursue ambitious legislation, it puts the party in control of key committees and clears the way for President-elect Joe Biden’s cabinet nominees to head agencies that regulate a wide array of industries.
The victories by Democrats Raphael Warnock and Jon Ossoff mean that each party will have 50 Senate seats at the start of Mr. Biden’s presidency, allowing Vice President-elect Kamala Harris to break any tie. That will give Democrats control of both the Senate and the House, and elevate Sen. Chuck Schumer (D., N.Y.) to Senate majority leader.
Mr. Biden said in a statement that he intends to work with both parties, and that his nominees for key cabinet positions, such as the secretaries of state, defense, Treasury and homeland security, would have bipartisan support.
While Senate rules currently require 60 votes to pass most bills, Democratic control increases the prospect of policy changes, such as an increase in the corporate business tax rate and health-care overhauls, said Dave Sekera, U.S. chief market strategist at investment-research firm Morningstar Inc.
