Corporate America Faces Complex Washington Landscape Post-Midterms

Corporate America faces a complex and potentially divided Washington following the midterm elections, necessitating a unified strategy that integrates government affairs and corporate communications. Past presidential administrations have demonstrated that even with a Congress controlled by the opposing party, the executive branch retains significant power to implement policy through executive orders and regulatory actions.

Historically, presidents have continued to advance their agendas even after losing congressional majorities. For example, President George W. Bush ordered the troop surge in Iraq and lifted an executive ban on offshore drilling after Republicans lost control of Congress in 2006. President Barack Obama pursued an immigration order, the Iran nuclear deal, and Title IX guidance on gender identity after Republicans took the House in 2014. More recently, President Joe Biden's administration has continued to pursue regulatory actions through agencies like the Federal Trade Commission.

Former President Donald Trump's tenure offers a stark precedent. After Republicans lost the House in 2018, he did not moderate his approach, instead overseeing a 35-day government shutdown and declaring a national emergency to fund the border wall. This suggests that any strategy assuming a former president would become a "lame duck" after losing Congress may be flawed.

Industry Challenges Emerge

The challenges of aligning internal strategies are highlighted by the experiences of the data center industry. Government affairs teams worked for years to secure permits and support from state and federal agencies, as well as elected officials. However, corporate communications were seemingly less involved until local communities, often overlooked by larger industry players, became a significant factor in slowing down numerous data center projects.

Similarly, issues surrounding Diversity, Equity, and Inclusion (DEI) have become politically charged. Companies that had previously scaled back controversial aspects of their DEI programs faced renewed scrutiny. Potential executive orders in early 2025 could reignite these debates, particularly for government contractors who may find terms like "equity" removed from their websites to secure contracts, potentially impacting employee relations. Congressional investigations into these practices could necessitate a coordinated response that involves both government affairs and corporate communications to manage stakeholder trust.

Immigration policy also presents a complex challenge, as seen with hotel chains facing pressure regarding the lodging of Immigration and Customs Enforcement (ICE) agents. When a franchise refused rooms to agents, it led to the hotel being removed from federal lodging programs. Conversely, protests have occurred over the opposite complaint. While companies may have managed local controversies with statements, congressional involvement would require a more robust strategy combining government affairs' relationships with committees and agencies, and corporate communications' understanding of customers, employees, and franchise owners.

A Unified Playbook Needed

To navigate these multifaceted challenges, companies need a single, integrated playbook developed jointly by government affairs and corporate communications teams. This strategy should map corporate vulnerabilities and leverage points, identifying potential allies who could become critics. Government affairs professionals are crucial for their knowledge of regulators, agency staff, and appointees, regardless of election outcomes. Corporate communications experts are essential for understanding the perspectives of customers, employees, and communities.

The effectiveness of these integrated strategies is paramount, as messages intended for one group will inevitably be seen by others. A consistent narrative is vital to maintaining credibility. The assumption that voters will fundamentally change their party affiliations based solely on midterm results is also a miscalculation. Voters often prioritize economic concerns, and companies that fail to acknowledge this reality risk communicating with a disconnected public.