Democrats Win House and Senate, Handing Trump a Sweeping Midterm Rebuke

Trump says he can work with Democrats, with limits

Speaking Wednesday at the White House ballroom construction site, his first public appearance since the results, Trump said he expects to get along with Democrats unless they turn destructive, and he pointed to his veto power. He said Democratic leaders had already called to discuss working together.

The president also called it "largely true" that the Iran war was a major reason Republicans lost, saying it pushed up gas prices. He dismissed questions about replacing Defense Secretary Pete Hegseth, saying Hegseth has done a very good job. CBS News reported earlier that Trump had asked advisers whether Hegseth should go.

Voters point to prices and the Iran war

CBS News exit polls put Trump's job approval at 38 percent among midterm voters, which the network described as the lowest for a president in a midterm election. About 89 percent of voters called the cost of living a major or crucial factor, and roughly six in 10 said Trump was a factor in their House vote.

Vice President JD Vance said on social media Wednesday that "the reason we lost is the war," and he argued that many 2024 Trump voters backed Democrats this year. The conflict began in late February and is now in its eighth month. According to Defense Department figures cited by CBS News, 23 U.S. service members have been killed and 865 wounded.

Two Senate races remain unsettled

In Mississippi, Democrat Scott Colom led Republican Sen. Cindy Hyde-Smith by only a few dozen votes on Wednesday morning, and his campaign estimates about 15,000 affidavit ballots remain to be counted. No Democrat has won a Senate race in the state since 1982.

In Alaska, Republican Sen. Dan Sullivan and Democrat Mary Peltola are locked in a tight contest, and officials expect the count to take weeks. A federal judge dismissed a Trump administration lawsuit over the race's certification on Sunday.

Leadership changes begin on both sides

House Speaker Mike Johnson told staff he will not run for minority leader, according to a source familiar with the call. Reps. Jim Jordan and Steve Scalise have both said they want the job. Jeffries announced a bid for speaker, which would make him the first Black person to hold the post, and the House vote is expected in early January.

Jeffries listed his first priorities as reversing Medicaid and food assistance cuts, extending expired Affordable Care Act subsidies, ending the Iran war and rolling back tariffs. Senate Democratic leader Chuck Schumer vowed to entangle Trump in "legislative razor wire" if he defies voters or the law. Senate Majority Leader John Thune is expected to keep his leadership post.

Investigations are coming to the House

Rep. Robert Garcia of California, expected to chair the House Oversight Committee, named four focus areas: the Trump family's business dealings, corporate corruption, immigration enforcement by the Department of Homeland Security, and the Jeffrey Epstein case. Jeffries said no member of his caucus has raised impeachment with him. A White House spokeswoman said Democrats who pursue "sham investigations" would be working against Americans.

Stocks jump, data center shares fall

Wall Street rallied on Wednesday as investors welcomed an end to election uncertainty and bet that divided government would limit big tax and spending bills. The Dow Jones Industrial Average rose nearly 1,600 points, or 3 percent, its biggest one-day gain this year. The S&P 500 gained 1.6 percent to close at 7,689, and the Nasdaq Composite rose 1.4 percent. Oil fell about 8 percent.

Data center operators were among the biggest losers, with Hut 8 down 23 percent, as investors weighed the risk of tighter rules on AI infrastructure after Democratic wins in Texas and Georgia. Defense stocks also slipped because Trump's $1.5 trillion defense budget request could face a harder path in Congress.