House Financial Services Committee
National Security, Illicit finance, and International Financial Institutions Subcommittee Reviews CFIUS Operations
<p>Today, members examined how the Committee on Foreign Investment in the United States (CFIUS) is using its authority under the Foreign Investment Risk Review Modernization Act (FIRRMA), to review certain foreign investments to make sure they don’t threaten U.S. national security, especially in sensitive tech, infrastructure, and data. </p>
<p><strong>On CFIUS’s Role In National Security:</strong></p>
<p>"Ensuring that our processes are efficient and effective means investment screening must be transparent and clear for our friends and fellow citizens to comply with, and difficult for our adversaries to exploit,”<strong> <a href="https://x.com/FinancialCmte/status/2011457328302723088?s=20" rel="noopener noreferrer" target="_blank">said</a> National Security, Illicit Finance, and International Financial Institutions Subcommittee Chairman Davidson (OH-08).</strong> <br />
</p>
<p>“CFIUS continues to evolve to address national security threats from abroad. At the same time, CFIUS’s narrow mission supports the confidence investors have in the openness and integrity of the U.S. economy. As with any national security program, ongoing oversight and evaluation of CFIUS’s effectiveness are essential duties for the members of congress and particularly this committee,”<strong> <a href="https://x.com/FinancialCmte/status/2011460369236058389?s=20" rel="noopener noreferrer" target="_blank">said</a> Chairman French Hill (AR-02).</strong></p>
<p><strong>On Economic Growth Throughout Investments:</strong> <br />
</p>
<p><strong>Subcommittee on Financial Institutions Chairman Andy Barr (KY-06) <a href="https://x.com/FinancialCmte/status/2011470905851940901?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> “As of early 2026, President Trump had announced up to $9 trillion in total foreign direct investment commitments that he negotiated. Just as an example, UAE $1.4 trillion investment framework. Qatar, $1.2 trillion. Japan $550 billion in key industries including energy and AI infrastructure investments. Saudi Arabia $600 billion investments in trade over four years, later expanded to almost a trillion. South Korea pledged $350 billion in investment, with an additional commitment to purchase $100 billion in U.S. energy products. The President has been remarkably successful in just 12 months’ time to negotiate massive amounts of foreign direct investment in the United States.”</p>
<p><strong>Small Business Committee Chairman Roger Williams (TX-25) <a href="https://x.com/FinancialCmte/status/2011477570936811990?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> “The United States has long benefited from being the world's top destination for foreign investment. And that openness has helped drive jobs, innovation, and economic growth. And at the same time, we face increasingly sophisticated threats from adversarial nations that seek to exploit our openness to gain a strategic advantage.”</p>
<p><strong>On Foreign Investment and Ownership Concerns:</strong></p>
<p><strong>Task Force on Monetary Policy, Treasury Market Resilience, and Economic Prosperity Chairman Frank Lucas (OK-03) <a href="https://x.com/FinancialCmte/status/2011467281709011065?s=20" rel="noopener noreferrer" target="_blank">said</a>, </strong>“The topics you deal with are some that I've been concerned about for the better part of a decade. Specifically, the issue of ownership of key agricultural equities like land and infrastructure by foreign adversaries, has continued to raise alarm bells across the country. That's why I introduced the bipartisan Agricultural Risk Review Act to add the Secretary of Agriculture as a permanent member of CFIUS for any transaction relating to the AG industry, and require CFIUS to initiate reviews of threats notified by USDA.”</p>
<p><strong>Assistant Secretary Pilkerton Echoed the Work of the Committee:</strong></p>
<p><strong>Assistant Secretary of the Treasury for Investment Security the Honorable Chris Pilkerton <a href="http://docs.house.gov/meetings/BA/BA10/20260114/118818/HHRG-119-BA10-Wstate-PilkertonC-20260114.pdf" rel="noopener noreferrer" target="_blank">said</a>,</strong> “First and foremost, CFIUS’s core priority remains assessing and addressing any national security risks that arise from transactions that fall within its jurisdiction. By evaluating these potential threats from adversarial actors, the Committee’s many interagency participants—including subject matter experts, law enforcement, and the intelligence community—serve as important gatekeepers to protect our homeland. The commitment to this guiding principle must always lead the Committee’s work.”</p>
3 weeks, 1 day ago
House Financial Services Committee
Chairman Hill, Rep. Salazar Provisions Pass House as Part of the Financial Services and General Government Appropriations Bill
<p>Today, the House passed the Financial Services and General Government and National Security, Department of State, and Related Programs Appropriations Act that included key provisions led by House Financial Services Committee Chairman French Hill (AR-02) and Rep. Maria Salazar (FL-27).</p>
<p>Chairman Hill’s H.R. 1474, the International Nuclear Energy Financing Act, expands access to multilateral financing tools for civil nuclear energy projects abroad, helping U.S. companies compete globally while promoting safe and reliable energy as an alternative to energy sources backed by opposing nations. </p>
<p> </p>
<p>Rep. Salazar’s H.R. 6892 authorizes the Treasury Secretary to subscribe to additional shares of the capital stock of the Inter-American Investment Corporation. This will strengthen U.S. engagement in the Western Hemisphere by supporting development of the region’s private sector and expanding opportunities for growth and stability.</p>
<p><strong>Chairman Hill said</strong>, “For years, I’ve pushed for nuclear energy to be included as an essential part of an ‘all of the above’ energy strategy. My legislation ensures the United States can support civil nuclear projects abroad with real financing tools, so developing countries have access to safe, reliable energy without being driven into the arms of coercive financing from Russia or China. If we want to meet global energy demand and remain competitive, our nation must embrace the full range of proven nuclear technologies and act with urgency. My bill is a critical step toward making this a reality.”</p>
3 weeks, 1 day ago
House Financial Services Committee
Digital Assets, Financial Technology, and Artificial Intelligence Subcommittee Reviews FinTech Innovations and Regulations
<p>Yesterday, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Chair Bryan Steil (WI-01), examined the current financial technology landscape and how these products fit within the U.S. financial system and regulatory framework.</p>
<p><strong>On the Importance of FinTech Innovation:</strong></p>
<p><strong>Chair Steil <a href="https://x.com/FinancialCmte/status/2011094410516156664?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> "FinTech products that meet consumer demand and improve Americans’ financial lives should have clear, practical legal pathways for operation and strong consumer protections. By supporting thoughtful and balanced regulations, we can encourage innovation while ensuring customer protection and promoting financial well-being for American households and businesses alike.”</p>
<p><strong>Chairman French Hill (AR-02) <a href="https://x.com/FinancialCmte/status/2011100043705471067?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> “This Committee has long championed innovation and responsible partnership between traditional financial institutions and technology companies. That commitment is now more important than ever. We should encourage regulators to foster those partnerships, unlock innovation and reduce unnecessary regulatory burdens.”</p>
<p><strong>Rep. Tim Moore (NC-14) <a href="https://x.com/FinancialCmte/status/2011121164291031065?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> “Financial technology is transforming how Americans earn, spend, and save their money. From peer-to-peer payment apps and digital wallets to earned wage access and installation products, FinTech innovations are responding to real consumer needs for speed and affordability. These products exist because they fill gaps in the traditional financial system, especially for consumers who have historically faced limited options or high costs.”</p>
<p><strong>Rep. Troy Downing (MO-02) <a href="https://x.com/FinancialCmte/status/2011113519916200007?s=20" rel="noopener noreferrer" target="_blank">said</a>,</strong> “I think it's incredibly important that we continue to have innovation here in the United States of America and don't have that ambiguity that we have in the past that have made people decide to run their businesses elsewhere without a reasonable framework. Another thing that was really difficult for me as a regulator is the ambiguity we got from the SEC at the time on how to treat these, and a lot of the, you know, enforcement by action rather than having a framework, which is why I think it's really important that we need clarity for digital assets and for artificial intelligence.”</p>
<p><strong>On Outdated Rules Restricting Businesses:</strong></p>
<p><strong>Full Committee Vice Chairman Bill Huizenga (MI-04) <a href="https://x.com/FinancialCmte/status/2011110419511890199?s=20" rel="noopener noreferrer" target="_blank">questions</a> the witnesses on the challenges startups encounter when devolving new payment systems, to which Ms. Kelley answered,</strong> “You know, you have a small startup trying to get into business in 49 different jurisdictions with 49 different licensing requirements. We know that's expensive. We know it costs literally millions of dollars, and we know it takes a long time, as much as two years. And that's a death knell for a small business trying to get up and running. And then, of course, if they do manage to get up and running, there's 49 different compliance regimes they have to apply with.”</p>
<p><strong>Rep. William Timmons (SC-04) <a href="https://x.com/FinancialCmte/status/2011116903805366281?s=20" rel="noopener noreferrer" target="_blank">said</a><a href="https://x.com/FinancialCmte/status/2011116903805366281?s=20" rel="noopener noreferrer" target="_blank">,</a></strong> “I've met with countless innovators who are building products that meet real consumer demand and help families better manage their financial lives, particularly those who have been underserved by the traditional banking system. This progress, however, depends on getting the policy environment right. Outdated rules and inconsistent regulatory interpretations can slow the adoption of beneficial technologies, limit competition, and drive innovation offshore. True leadership and financial innovation mean providing clear, predictable guardrails that promote responsible innovation here in the United States, rather than pushing it overseas.”</p>
<p><strong>Witnesses Echoed the Work of the Committee:</strong></p>
<p><strong>Ms. Jodie Kelley, Chief Executive Officer, Electronic Transactions Association <a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/HHRG-119-BA21-Wstate-KelleyJ-20260113.pdf" rel="noopener noreferrer" target="_blank">said</a>,</strong> “...ETA supports the establishment of a uniform national framework for artificial intelligence that applies consistently across jurisdictions and provides clarity for consumers, merchants, and payments providers. Payment systems operate on a national scale, and effective oversight depends on consistent rules rather than a state-by-state approach. A federal framework should be risk-based, technology-neutral, and focused on real-world outcomes. It should build on existing federal consumer protection, safety and soundness, and financial integrity regimes, rather than layering new, duplicative compliance requirements on top of them. By establishing a clear national standard, Congress can protect consumers, preserve competition, and enable the responsible deployment of AI in payments.”</p>
<p><strong>Mr. Kevin Lefton, Global General Counsel, Stream <a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/HHRG-119-BA21-Wstate-LeftonK-20260113.pdf" rel="noopener noreferrer" target="_blank">said</a>, </strong>“The arguments that are often presented against Earned Wage Access are fundamentally flawed because they conflate a non-recourse financial wellness tool with high-cost lending products. Labeling EWA as "credit" ignores the basic reality that workers are simply accessing capital they have already earned..”</p>
<p><strong>Mr. Ram Palaniappan, Founder and Chief Executive Officer, EarnIn <a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/HHRG-119-BA21-Wstate-PalaniappanR-20260113.pdf" rel="noopener noreferrer" target="_blank">said</a>,</strong> “The stakes for consumers are real. That is why clear, thoughtful regulation matters. A federal framework that recognizes the distinctive features of the different models of earned wage access, insists on strong consumer protections, and places it on a level playing field with overdrafts and other short‑term products can help ensure that this innovation fulfills its promise rather than creating new problems.”</p>
<p><strong>Mr. Todd Zywicki, George Mason University Foundation Professor of Law, Antonin Scalia Law School, George Mason University <a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/HHRG-119-BA21-Wstate-ZywickiT-20260113.pdf" rel="noopener noreferrer" target="_blank">said</a>, </strong>“We live in an exciting era of developments in financial technology. Recent innovations in alternative underwriting and FinTech generally, and products such as EWA and BNPL specifically, are increasing consumer welfare, choice, and competition. But history teaches that continued innovation requires a thoughtful regulatory framework that will facilitate further developments and protect consumers from the efforts of incumbents to block entry and wrongheaded regulation. There is much that this body and regulators can do to facilitate further innovation and competition.”</p>
3 weeks, 1 day ago
House Financial Services Committee
Davidson: CFIUS Must Rigorously Scrutinize Foreign Investments From Any Source That Could Undermine Our Technology, Agriculture, Energy Sectors, And More
<p style="text-align: left;">Today, the the House Financial Services Committee is holding a National Security, Illicit Finance, and International Financial Institutions Subcommittee hearing, led by Subcommittee Chair Warren Davidson (OH-08), to have the Department of Treasury's annual appearance before the Financial Services Committee for testimony on CFIUS.</p>
<p style="text-align: left;"><strong>Read Subcommittee Chair Davidson’s opening remarks as prepared for delivery:</strong></p>
<p style="text-align: left;">"Today is the Committee’s annual oversight hearing on CFIUS and will provide Members an opportunity to review the Trump Administration’s implementation of the CFIUS process and the Outbound Investment Security Program both of which are administered by the Office of Investment Security.</p>
<p style="text-align: left;">"The United States is the world’s top destination for foreign direct investment (FDI), with over $5.7 trillion dollars in total investment so far and trillions of dollars of new commitments during President Trump’s current term. Our open investment environment makes this possible which is why successive Presidents have reaffirmed its importance. </p>
<p style="text-align: left;">"In fact, FDI accounts for 10.1 percent or more of jobs while foreign firms employ around 25 percent of all manufacturing workers making investment critical to the wellbeing of Americans across the country.</p>
<p style="text-align: left;">"Established in 1975 under the Department of Treasury, CFIUS seeks to preserve this open investment environment while ensuring that the very openness does not become a weapon our adversaries can use against us. </p>
<p style="text-align: left;">"The 2018 Foreign Investment Risk Review Modernization Act, otherwise known as FIRRMA, expanded its jurisdiction to include non-controlling investments in critical technologies, infrastructure, and sensitive personal data. </p>
<p style="text-align: left;">"CFIUS must rigorously scrutinize foreign investments from any source that could undermine our technology, agriculture, energy sectors, and more, while enabling beneficial investment inflows that strengthen our economy. </p>
<p style="text-align: left;">"At the same time, CFIUS must not become so bureaucratic that the process prioritizes answering every conceivable question over neutralizing threats. </p>
<p style="text-align: left;">"With this in mind, I want to commend President Trump both for his America First Investment Policy which reiterates his commitment to welcoming foreign investment as well as his tireless efforts to secure trillions in new investments in our country. </p>
<p style="text-align: left;">"I especially want to highlight CFIUS’s Known Investor Portal pilot program which promises to streamline investment for repeat, friendly investors, allowing resources to be directed where they matter most for screening new risks.</p>
<p style="text-align: left;">"However, reviewing inbound investments alone cannot fully protect our national security. This is why Congress enacted Representative Barr’s COINS Act last month as part of the NDAA, which tasks the Office of Investment Security (OIS) to build on the Outbound Investment Security Program. </p>
<p style="text-align: left;">"Now that this legislation has become law, it falls on this Committee to ensure that it is implemented in a targeted and thoughtful manner while ensuring that American capital does not support the military industrial bases of our adversaries, particularly the People’s Republic of China. </p>
<p style="text-align: left;">"As Treasury writes an updated outbound investment rule, it is imperative that it’s a clear, streamlined framework to ensure that American investors can comply without overly burdensome bureaucratic obstacles that halts our financial sector.</p>
<p style="text-align: left;">"As the world becomes more complex and interconnected, OIS must ensure that U.S. national security is protected both on the inbound and outbound investment fronts. </p>
<p style="text-align: left;">" Ensuring that our processes are efficient and effective means investment screening must be transparent and clear for our friends and fellow citizens to comply with, and difficult for our adversaries to exploit. This is our task today. I yield back, and I now recognize the ranking member for her remarks."</p>
<p style="text-align: left;"> </p>
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3 weeks, 1 day ago
House Financial Services Committee
Lucas: Our Focus Today Is On The Fed’s Balance Sheet
<p>Today, the House Financial Services Committee is holding a Monetary Policy, Treasury Market Resilience, and Economic Prosperity Task Force hearing, led by Task Force Chair Frank D. Lucas (OK-03), to examine the role the Federal Reserve's balance sheet plays in monetary policy implementation and the Treasury markets.</p>
<p><strong>Read Task Force Chair Lucas’ opening remarks as prepared for delivery:</strong></p>
<p> <em>"Welcome to the first Task Force hearing of 2026.</em></p>
<p><em>"Our focus today is on the Fed’s balance sheet – a record of its assets and liabilities that demonstrate its operations.</em></p>
<p><em>"The Fed’s balance sheet has undergone dramatic changes in the past 15 years – growing from less than $1 trillion in 2008, or 6% of GDP, to almost $9 trillion in 2022, or 35% of GDP.</em></p>
<p><em>"In 2008, the Fed moved from a corridor system to a floor system necessarily demanding an increase in the quantity of reserves on its balance sheet.</em></p>
<p><em>"Despite that change, the Fed has continued to express the view that reserves should be at “the smallest levels” consistent with the effective implementation of monetary policy. </em></p>
<p><em>"We haven’t always seen the Fed stick to that view, instead using its balance sheet to provide economic stimulus – not merely as a means to control rates.</em></p>
<p><em>"Since 2008, the Fed has engaged in four rounds of large-scale asset purchases, or QE, with its balance sheet standing at six and a half trillion today.</em></p>
<p><em>"Yet, the academic literature shows mixed results on the effectiveness of QE at economic support. While the jury is out on the benefits of QE, we do know that it raises risks of inflation and market distortion.</em></p>
<p><em>"The Fed should rely on conventional monetary policy tools under its ample reserves regime and avoid market operations that may have unintended and lasting consequences.</em></p>
<p><em>"Additionally, the Fed should clearly articulate under what conditions it uses its balance sheet for economic stimulus, economic contraction, and policy implementation in the future. This is particularly important now as the Fed engages in reserve management purchases. </em></p>
<p><em>"Finally, it may be tempting to allow the news of the day to distract us from the purpose of today’s hearing. I will continue to emphasize that the independence of the Fed is critical in ensuring it makes sound interest rate decisions that are essential to favorable economic outcomes.</em></p>
<p><em>"We’d do well to remember that decisions made now have lasting implications for not just the next Fed chair, but the next ten Fed chairs.</em></p>
<p><em>"That said, let’s focus our discussion today on the proper use of the balance sheet and its impact on monetary policy implementation and Treasury market functioning.</em></p>
<p><em>"I yield back." </em></p>
3 weeks, 1 day ago
House Financial Services Committee
Hearing Entitled: Delivering for American Consumers: A Review of FinTech Innovations and Regulations
Click <a href="https://www.youtube.com/live/ApatWVIJ3J0?si=Fc7eqraCD9mHqx1K">here</a> to view the livestream of this hearing.<br />
<br />
Click <a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/HHRG-119-BA21-20260113-SD002.pdf">here </a>to view the livestream of the hearing.<br />
<br />
<p><b>Witnesses</b></p>
<ul>
<li><strong><strong><strong>Ms. Jodie Kelley</strong>, </strong><small></small></strong><small><span style="font-size: 16px;">Chief Executive Officer, Electronic Transactions Association</span></small></li>
<li><small><span style="font-size: 16px;"><strong>Mr. Kevin Lefton, </strong>Global General Counsel, Stream</span></small></li>
<li><small><span style="font-size: 16px;"><strong>Mr. Ram Palaniappan,</strong> Founder and Chief Executive Officer, EarnIn</span></small></li>
<li><small><span style="font-size: 16px;"><strong>Mr. Todd Zywicki,</strong> Law Professor, George Mason University Antonin Scalia Law School </span></small></li>
</ul>
<p><strong>Legislation:</strong></p>
<div>
<ul>
<li><a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/BILLS-119pih-clearfederalframeworkforEarnedWageAccess.pdf">H.R. ____</a>, the Earned Wage Access Consumer Protection Act</li>
<li><a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/BILLS-119pih-prudentialregulatorstoindividuallyassesstheirinternalsupervisorytechnologies.pdf">H.R. ___</a>, the Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision (FUTURES) Act</li>
<li><a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/BILLS-119pih-createFinancialServicesInnovationOffices.pdf">H.R. ____</a>, the Financial Services Innovation Act of 2026</li>
<li><a href="http://docs.house.gov/meetings/BA/BA21/20260113/118806/BILLS-119pih-clarifyhowexistingmodelriskmanagement.pdf">H.R. ____</a>, the Model Risk Management Modernization Act</li>
</ul>
</div>
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3 weeks, 1 day ago
House Financial Services Committee
Steil: As We Explore The Benefits Of FinTech Innovation, We Must Make Sure That Our Regulatory Framework Is Fit For Purpose
<p>Today, the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence led by Digital Assets Subcommittee Chairman Bryan Steil (WI-01) is holding a hearing to examine the current financial technology landscape and how these products fit within the U.S. financial system and regulatory framework.</p>
<p><strong>Read Subcommittee Chairman Steil’s opening remarks as prepared for delivery:</strong></p>
<p> <em>"Technology continues to revolutionize our financial system, from payments to newer applications like earned wage access.</em></p>
<p><em>"Digitization, cryptography, and artificial intelligence give consumers faster, cheaper payments, flexible access to earned income, and new ways to manage everyday purchases.</em></p>
<p><em>"These innovations have the potential to improve Americans’ financial well-being by making their day-to-day finances more practical, predictable, and affordable.</em></p>
<p><em>"Historically, workers were paid when they earned wages, yet today many workers in our economy go home with their earnings.</em></p>
<p><em>"Holding an employee’s pay until the end of a payroll cycle is a relatively modern practice.</em></p>
<p><em>"Earned Wage Access helps restore this link between work and pay by allowing workers the flexibility to access their wages as they earn them.</em></p>
<p><em>"This flexibility can help families deal with unexpected expenses –from medical bills to car repairs—or simply pay recurring bills timelier.</em></p>
<p><em>"By providing timely access to earned income, EWA can help Americans achieve their financial goals and help businesses improve worker satisfaction, retention, and overall productivity.</em></p>
<p><em>"Importantly, innovations like EWA and Buy Now Pay Later options often coexist and intertwine with traditional financial institutions.</em></p>
<p><em>"Banks and other lenders are vital partners with FinTechs, providing liquidity and credit as well as access to infrastructure like payment rails.</em></p>
<p><em>"These partnerships provide more efficiency and options for consumers and create new products to enhance competition.</em></p>
<p><em>"Our financial institutions also can benefit from partnering with FinTech companies by enhancing their offerings and allowing small and community institutions to deploy cutting-edge tools.</em></p>
<p><em>"As we explore the benefits of FinTech innovation, we must make sure that our regulatory framework is fit for purpose.</em></p>
<p><em>"A well-functioning framework for FinTech should focus on the risks posed by specific activities, not the identity or business model of the provider.</em></p>
<p><em>"FinTech products that meet consumer demand and improve Americans’ financial lives should have clear, practical legal pathways for operation and strong consumer protections.</em></p>
<p><em>"By supporting thoughtful and balanced regulations, we can encourage innovation while ensuring customer protection and promoting financial well-being for American households and businesses alike.</em></p>
<p><em>"Today’s hearing will inform these efforts, and I thank our witnesses for their testimony." </em> </p>
3 weeks, 2 days ago
Axios
Where every state stands on redistricting after critical blow to Trump agenda
<div>Data: Axios research; Map: Erin Davis/Axios Visuals</div><p>Indiana lawmakers' <a href="https://www.axios.com/local/indianapolis/2025/12/11/indiana-senate-rejects-trump-redistricting" target="_self">rejection</a> of a plan to create two more Republican congressional seats Thursday delivered a blow to the White House's scramble to redistrict ahead of <a href="https://www.axios.com/2025/08/21/trump-redistricting-republican-100-seats-mail-voting" target="_blank">midterm elections</a>, but the state isn't the only egg in President <a href="https://www.axios.com/politics-policy/donald-trump" target="_blank">Trump</a>'s basket. </p><p><strong>The big picture: </strong>Six states have already implemented new congressional maps, and more could follow. </p><hr /><ul><li>Republicans hold only a narrow lead in the House of Representatives, 220 seats to Democrats' 213, and the sitting president's party <a href="https://www.brookings.edu/articles/what-history-tells-us-about-the-2026-midterm-elections/" target="_blank">tends to lose seats</a> in midterm elections.</li><li>That means that control of the House could come down to just a few races.</li><li>Projections for the six states that have essentially locked in their efforts — Texas, California, Ohio, Missouri, North Carolina and Utah — show Republicans set to gain a net one to four seats in November and any gains from Democrats likely cancelled out by Republican wins.</li></ul><p><strong>Between the lines: </strong>Of the six,<strong> </strong>California and Utah were the only states where Republicans weren't favored in redistricting efforts. </p><ul><li>Democrat-led states are enacting their own redistricting in contrast to what the GOP is doing — and California did it successfully — but several Democratic leaders find their hands tied by <a href="https://thehill.com/homenews/campaign/5433018-texas-florida-california-new-york-colorado-redistricting-fight/" target="_blank">independent redistricting commissions</a> they had once championed. </li></ul><p><em>Here's where redistricting efforts stand in each state: </em></p><h2>Indiana</h2><p><strong>Indiana became the first</strong> state to formally reject a redistricting bid, with the state Senate voting 31-19 against it.</p><ul><li>21 Republicans voted against the proposal in a rare pushback against Trump from within his party.</li></ul><p><strong>What they're saying: </strong>Indiana's decision might actually stop or "at least mitigate" redistricting in other states, Erik Nisbet, a professor of policy analysis and communication at Northwestern University, told Axios.</p><ul><li>"Trump's popularity is becoming a drag on Republicans, especially as Democrats hammer in on affordability," he said.</li><li>"State legislatures are asking, 'is it worth it?' If we go through the midterms, this entire process, and potentially reorganize our state politics simply to gain one or two seats — what's the point?" he added. </li><li>"Making Trump happy when our own political power is starting to be diminished?"</li></ul><p><strong>Republicans were</strong> favored to win two seats if lawmakers had moved forward with redistricting.</p><h2>Texas</h2><p><strong>The U.S. Supreme Court</strong> this month <a href="https://www.axios.com/local/san-antonio/2025/12/04/supreme-court-rules-texas-gop-redistricting-map" target="_blank">permitted</a> Texas to use its <a href="https://www.axios.com/local/austin/2025/08/20/texas-democrats-redistricting-gerrymandering-trump" target="_self">new congressional map</a> favoring Republicans for now. </p><p><strong>Context:</strong> Texas state lawmakers approved the <a href="https://www.axios.com/local/san-antonio/2025/07/30/texas-redistricting-republicans-map-trump" target="_blank">redistricting process</a> over the summer, which was later challenged by voting rights groups who alleged that the state racially gerrymandered to weaken the voting power of Black and Latino voters in the state.</p><ul><li>Federal judges in Texas blocked the map, which was <a href="https://www.axios.com/local/san-antonio/2025/11/22/supreme-court-texas-congressional-map-redistricting" target="_blank">temporarily reinstated</a> in November by Supreme Court Justice Samuel A. Alito. </li><li>The Supreme Court only temporarily paused the lower court's ruling to give justices time to consider Texas' request. </li></ul><p><strong>Republicans are</strong> favored to win 4-5 seats. </p><h2>North Carolina</h2><p><strong>North Carolina</strong> Republicans enacted its new map in October, which received the <a href="https://www.axios.com/2025/11/27/north-carolina-congressional-map-2026-midterm-elections-court" target="_blank">green light</a> from a panel of federal judges a month later. </p><ul><li>Republicans are favored to gain 1 seat. </li></ul><h2>Ohio</h2><p><strong>A bipartisan </strong>redistricting commission in Ohio <a href="https://www.axios.com/local/cleveland/2025/10/31/ohio-congressional-map-2026-commission" target="_blank">enacted</a> a new map in October. </p><p><strong>The intrigue: </strong>The bipartisan support marked a rare moment of compromise in <a href="https://www.axios.com/local/columbus/2025/09/29/ohio-redistricting-explained-2025" target="_self">a process</a> that's been affected by controversy and court challenges for years. </p><ul><li>Republicans are favored to gain 2-3 seats.</li></ul><h2>California</h2><p><strong>California enacted</strong> a new map through a statewide ballot measure in November. </p><p><strong>Flashback: </strong>Following Texas Republicans' own <a href="https://www.axios.com/local/houston/2025/08/18/texas-democrats-return-abbott-republicans-redistricting" target="_self">redistricting attempt</a>, California Gov. Gavin Newsom threatened to move forward with the legislation, leading Democrats' charge in the state redistricting proxy wars. </p><ul><li>California essentially "neutralized" the Texas map, Nisbet said. </li><li>Democrats are favored to gain five seats, effectively cancelling out the projected wins for Republicans in Texas. </li></ul><h2>Utah</h2><p><strong>A Utah district court</strong> judge <a href="https://www.axios.com/local/salt-lake-city/2025/10/07/utah-legislature-redistricting-map-approved" target="_self">ordered</a> the state legislature to redraw congressional lines, saying the current map violated aspects of an anti-gerrymandering measure, giving Democrats the ability to gain one seat.</p><ul><li>The change favors Democrats. </li><li>Democrats are favored to gain 1-2 seats.</li></ul><h2>Missouri</h2><p><strong>Missouri lawmakers </strong><a href="https://www.axios.com/local/kansas-city/2025/09/12/missouri-redistricting-map-kansas-city-cleaver-lawsuit-2025" target="_blank">enacted</a> a new map in September. </p><ul><li>The Republican-controlled Senate aimed to <a href="https://www.axios.com/local/kansas-city/2025/09/12/missouri-redistricting-map-kansas-city-cleaver-lawsuit-2025" target="_self">unseat</a> Rep. Emanuel Cleaver (D-Mo.) by splitting the state's fifth congressional district, which Cleaver is currently representing for his tenth term. </li><li>Cleaver <a href="https://apnews.com/article/redistricting-gerrymander-missouri-trump-e5b75246cbee8eb674dfdb27381cc8ac" target="_blank">said</a> in September that he plans to challenge the revised map in court and seek reelection. </li><li>Republicans are favored to gain 1 seat. </li></ul><h2>Maryland</h2><p><strong>A legislative</strong> proposal has been introduced in Maryland. </p><p><strong>Maryland Senate President</strong> Bill Ferguson <a href="https://marylandmatters.org/wp-content/uploads/2025/10/fergusonredistrictingltr.pdf" target="_blank">urged</a> Senate Democrats in October against mid-cycle redistricting, calling it "too risky" for the party, who could end up losing a seat by attempting to gain one. </p><ul><li>Democrats are favored to gain 1 seat. </li></ul><h2>Virginia</h2><p><strong>Virginia's state </strong>legislature has begun the process to redraw its map and put it up for statewide referendum, following a judge's <a href="https://www.axios.com/local/richmond/2025/10/29/virginia-redistricting-judge-whats-going-on" target="_blank">approval</a> in October.</p><ul><li>If both chambers of the state legislature pass a proposed amendment and it gets a majority approval from Virginia voters, new seats are in play for midterm elections. </li><li>A referendum can only happen <a href="https://law.lis.virginia.gov/constitution/article12/section1/" target="_blank">90 days</a> after an amendment passes in the state, which means voting as early as next April. </li><li>Lawmakers would then have to redraw maps before early voting begins. </li><li>Democrats are favored to gain 2-3 seats.</li></ul><h2>Florida</h2><p><strong>Florida's state legislature</strong> <a href="https://floridaphoenix.com/2025/08/07/florida-house-creating-a-committee-on-congressional-redistricting/" target="_blank">established</a> a redistricting committee in August. </p><ul><li>Earlier this month, Florida Gov. Ron DeSantis (R) <a href="https://floridianpress.com/2025/12/desantis-will-call-for-special-legislative-session-on-congressional-redistricting/" target="_blank">broached</a> the possibility of calling lawmakers back in a special session if they do not finish redistricting in their regular session, which is scheduled for Jan. 13 to March 13. </li><li>Republicans are favored to gain 2-4 seats. </li></ul><h2>Kansas</h2><p><strong>Kansas' top</strong> Republicans were aligned with Trump's redistricting agenda, but efforts in the state to redraw the map are stalled due to some <a href="https://www.nytimes.com/2025/11/11/us/kansas-redistricting-sharice-davids-congress.html" target="_blank">GOP opposition</a>. </p><ul><li>Republicans are favored to gain 1 seat. </li></ul><h2>Wisconsin </h2><p><strong>The Wisconsin Supreme Court</strong> last month ordered a pair of three-judge panels to oversee two lawsuits alleging that the state's current map is unconstitutional and seeking a redraw it. </p><ul><li>One panel expedited one of the cases on Friday. </li><li>If the panel issues a ruling by <a href="https://pbswisconsin.org/news-item/wisconsin-congressional-redistricting-lawsuits-may-not-resolve-by-2026-midterms" target="_blank">around March 1</a>, the deadline given by the state elections commission in order to have new maps in place, Democrats could stand to gain seats in the midterm elections. </li><li>2 seats are considered competitive in the state. </li></ul><h2>Other states in play</h2><p><strong>State of play: </strong>Leaders in Alabama, Illinois, Louisiana, New York, Nebraska, and North Dakota, have all indicated that they might pursue redistricting. </p><ul><li>Alabama and Louisiana are both awaiting a U.S. Supreme Court verdict on a Louisiana case that targets the <a href="https://www.axios.com/2025/10/15/supreme-court-voting-rights-act-trump-louisiana" target="_self">Voting Rights Act</a>, a crucial tool for challenging racially discriminatory maps. </li><li>North Dakota is awaiting a decision on a <a href="https://apnews.com/article/supreme-court-north-dakota-redistricting-289e84539fcb2b309c8d00fb6a077097" target="_blank">separate U.S. Supreme Court case</a>. </li><li><a href="https://nebraskaexaminer.com/2025/10/06/nebraska-gov-jim-pillen-open-to-mid-decade-redistricting/" target="_blank">Nebraska</a>, <a href="https://www.axios.com/local/chicago/2025/08/05/texas-illinois-pritzker-redistricting-abbott-democrats-republicans-trump" target="_blank">Illinois</a>, and <a href="https://www.politico.com/news/2025/07/24/new-york-redistricting-hochul-00475043" target="_blank">New York</a>'s governors have also indicated interest in or pushed for redistricting in their respective states.</li></ul><p><strong>State leaders </strong>in <a href="https://www.politico.com/newsletters/illinois-playbook/2025/12/12/illinois-pauses-as-indiana-rejects-map-00688582" target="_blank">Illinois</a> and <a href="https://www.nytimes.com/2025/07/28/nyregion/new-york-redistricting-texas.html" target="_blank">New York</a> have both said they would pursue redistricting if Republicans do first.</p>
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