This report does not constitute a rating action. The results of the U.S. midterm elections are unlikely to have a major effect on credit conditions for U.S. borrowers, regardless of the outcome. The Trump administration has used the process of reconciliation to advance key legislative initiatives, including the tax bill known as the One Big Beautiful Bill Act of 2025, and relied heavily on executive orders and regulatory actions to further its agenda. We expect primary reliance on executive actions and regulation in the final two years of the president’s term, especially if Democrats regain one or both chambers of Congress. Still, the election results could influence the policy backdrop for a range of sectors. Although the administration retains considerable
