Republicans Back in Washington After Midterm Defeat With Little Time Left
Republicans return to Congress after midterm losses, facing a possible impeachment push against Hegseth, a December 11 funding deadline and a permitting bill.
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what happened
Per The Wall Street Journal, Republicans returned to Washington on Monday with 55 days left in their majorities, after losing ground to Democrats in the midterm elections. The House may move to impeach Defense Secretary Pete Hegseth over the Iran war and other charges. A Senate trial would follow, and removing him would take two-thirds of the chamber.
Federal funding runs out on December 11, which would trigger a shutdown without new legislation. A short extension into early 2027 is one option, and Senate Democrats may seek conditions such as a legal mechanism to end the Iran war.
Lawmakers are also weighing a permitting bill that would speed up environmental reviews and energy infrastructure construction. Republicans want to confirm as many judicial nominees as possible before Democrats take control.
why it matters
For markets, the main risk is a possible shutdown after December 11, which could extend uncertainty over fiscal policy. The permitting bill matters for energy projects but remains under negotiation.
market impact
US stocks and Treasuries: risk of a December 11 shutdown adds uncertainty
tags
instruments
sources
- Defeated GOP-Led Congress Returns With 55 Days and a Long Wish List — WSJ, 8 November 2026 at 20:04 UTC
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