Sen. Elizabeth Warren may get her clearest shot yet to take on corporate America next year — thanks to the once unthinkable help of Republicans.
The Massachusetts Democrat is poised to chair Senate Banking if the party takes back the chamber. And while the progressive has long been a boogeyman to corporate America, lobbyists worry she’ll have powerful backup thanks to the surge of populist Republicans eager to take big swings at Wall Street and Big Tech.
One longtime financial industry lobbyist, granted anonymity to speak candidly, said Warren “has a streak that is not just wanting to be a progressive gadfly, but to actually reach across the aisle to push for policy ideas.” There is “absolutely” reason for concern, the person said.
Atop the panel, Warren would also have a strong position to shape the 2028 presidential debates on both sides.
“There’s very little doubt that the agenda of the Senate Banking Committee is going to overlap substantially with the core issues that the candidates in the 2028 election cycle are going to be grappling with,” said Dennis Kelleher, the outgoing leader of the progressive group Better Markets.
As Banking chair, Warren is expected to try to recruit Republicans in a crackdown on artificial intelligence — specifically restrictions on chip giant Nvidia’s exports to China, which already has some GOP support — and a follow-up of this year’s bipartisan housing law that sought to rein in private equity’s role in the market, according to people close to the senator.
Some of President Donald Trump’s own populist ideas, like credit card interest rate caps and limits on stock buybacks for defense contractors, would provide fertile ground for Warren.
But Trump would also likely be Warren’s biggest obstacle, as he’s been resistant to embrace policy overlaps with her. He’s also been resistant to any AI restrictions.
Warren’s approach also threatens to expose rifts between GOP populists who have been ascendent under Trump and more mainstream conservatives.
Asked about the possibility of a Chair Warren, Sen. Mike Rounds, a more moderate South Dakota Republican, said he doesn’t “think anything would get done except lots of investigations and lots of accusations.”
What else we’re watching:
— LAWMAKERS CLAMOR FOR GAO v. TRUMP — Lawmakers are desperate for a government watchdog to step up and help them in their fight against the Trump administration over control of federal cash. The independent Government Accountability Office concluded earlier this week that the White House illegally withheld more than $1 billion for education and health care research programs — the latest in more than a half-dozen such findings GAO has published since the start of Trump’s second term. But the agency has yet to use its unique power to take the president to court to challenge those “impoundments,” and lawmakers who are tired of the administration running roughshod over their funding prerogatives want GAO to act.
— MURPHY’S DEFENSE FUNDING ULTIMATUM — Democrats should not approve Pentagon funding or the annual defense policy bill if they control Congress next year unless those bills would hasten the end of the Iran war, Sen. Chris Murphy told reporters Thursday. “We should make the end of the war a priority,” said the Foreign Relations Democrat who was returning from a trip to Saudi Arabia and Qatar. Murphy also accused Defense Secretary Pete Hegseth and officials of attempting a “cover-up” of the war’s damage and obscuring its true cost after he was denied entry on a base in Qatar. Given the damage to bases in the region, Murphy also told reporters that the U.S. should “reconsider its footprint” in the Middle East.
Jasper Goodman, Jennifer Scholtes and Connor O’Brien contributed to this report.
