Republicans Keep the House. It's a Red Sweep. -- Barrons.com

Dow Jones11-14

By Matt Peterson

Republicans will retain a majority in the House of Representatives, the Associated Press projected Wednesday evening. That will give the GOP unified control of the government, along with Donald Trump's presidential win and a Senate flipped from Democratic control.

Republicans hit the 218 threshold needed for a majority in the House, giving them a slim edge in the 435-seat body. That margin may expand with nine House races yet to be called by the AP. Rep. Mike Johnson (R., La.) will continue as House speaker. He took over in October 2023 after House Republicans ousted the previous speaker, Kevin McCarthy (R., Calif.)

Unified government will give President-elect Trump the ability to control the legislative agenda heading into an important year for tax-and-spending policy. Tax cuts passed under Trump's first presidency expire in large part at the end of 2025. Trump campaigned on extending them in full and adding additional cuts.

Much if not all of that fiscal legislation is expected to pass the Senate through its filibuster-proof reconciliation process. Control of the House means that Republicans can decide among themselves how far to go with tax cuts. Many Democrats oppose extending cuts to individual tax rates for the highest earners, but will have little say in the matter.

The Committee for a Responsible Federal Budget estimates that if everything Trump campaigned on were passed, it would add nearly $8 trillion to the national debt over 10 years. The debt currently stands at about $35 trillion, with an annual budget deficit of 7% of gross domestic product.

Unless efforts are taken soon to rein in spending, budget analysts warn that the cost of government borrowing may rise. That would also raise the cost of consumer borrowing, such as mortgages, which closely follow the 10-year Treasury yield.

Write to Matt Peterson at matt.peterson@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

November 14, 2024 03:34 ET (08:34 GMT)

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Republicans Keep the House. It's a Red Sweep. -- Barrons.com

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