New Delhi: American companies have long tried to maintain relationships with both major political parties to protect their interests. Under President Donald Trump, however, many loyalties shifted toward the Republicans, hoping to secure favourable policies and fewer regulatory hurdles. But, with the midterm elections on 3 November, The Economist reports that some are now trying to rebuild their connections with the Democrats.
This shift reflects a growing concern that businesses which aligned themselves too closely with Trump could lose influence if Democrats gain control of Congress. However, winning back the Party’s trust may prove difficult. Corporations are trying to quickly engage in a process that has come to be colloquially known as “De-MAGAfication,” a play on Trump’s famous slogan, “Make America Great Again” (MAGA).
‘Running around Washington’
Government decisions can directly impact businesses, from the rules governing industries to whether major mergers and acquisitions receive approval. Companies, therefore, invest time and money in building relationships with politicians who can influence these decisions. A process Facebook cofounder Chris Hughes described as “running around Washington.”
Traditionally, businesses have tried to maintain connections with both Republicans and Democrats, allowing them to retain some influence when power changes hands. However, many businesses abandoned this approach after Trump’s return to the White House in January 2025. They saw an opportunity to advance long-standing interests by working closely with his administration.
With the midterm elections next week, companies are increasingly concerned about a possible shift in political power. The elections will determine the composition of Congress, halfway through a president’s four-year term, including all seats in the House of Representatives and roughly one-third of the Senate contested. The results can change which party controls the legislative agenda.
A venture capitalist speaking anonymously to The Economist predicted “a reckoning” after the midterms for those who grew close to President Trump: “History is not going to look back particularly favourably on those who leaned in.”
Among the many signals of De-MAGAfication is the hiring of pro-Democratic persons. Meta, for instance, appointed longtime Republican political adviser Joel Kaplan as its chief emissary in January 2025. Then earlier this year, on 20 October, the tech giant announced Kaplan’s exit. Paramount Skydance, meanwhile, has hired a former Biden administration staffer to help strengthen its relationships with Democrats.
Other companies, including data-analysis firm Palantir and prediction-market platforms Polymarket and Kalshi, have also brought in former Democratic officials.
Also Read: US voters confident in midterms, but divided over election security, access – Pew survey
Where the money flows
Political donations offer another indication of the changing landscape of leadership as well.
US federal law generally prohibits corporations from making direct contributions to federal candidates from their own funds. However, companies can establish political action committees (PACs), which collect voluntary contributions, often from executives and other eligible individuals, to support candidates. Business leaders can also donate in their personal capacities.
The Economist examined federal filings covering donations from business leaders and their families through these channels. It found that 33 per cent of their contributions went to Democrats in the second quarter of 2026, compared with 31 per cent across 2025. When the ten largest donors were excluded, the Democratic share rose to 51 per cent, up from 36 per cent last year.
The figures suggest that the broader group of business donors is shifting towards Democrats, even as some of the wealthiest contributors continue to favour Republicans. However, this does not mean corporate America is embracing the Democratic Party’s progressive wing. Of the $287 million executives donated to Democrats during the first half of 2026, only $9 million went to progressives, including candidates endorsed by the Democratic Socialists of America.
Why Democrats may not welcome them back
But rebuilding political relationships is not as simple as hiring former Democratic staffers or redirecting donations. Many Democrats have become more critical of corporate power, with opposition to data centres, large agricultural businesses and commercial fishing becoming prominent issues.
The tensions are particularly visible in the technology and cryptocurrency industries. In Ohio, cryptocurrency-backed political action committee network Fairshake is spending $55 million to oppose Democratic Senate candidate Sherrod Brown, a prominent critic of the industry. Some cryptocurrency executives have resisted the campaign, fearing it could damage the industry’s relationships with Democrats if Brown returns to power. Chris Larsen, co-founder of blockchain company Ripple, has donated to Brown through other channels.
These divisions highlight a dilemma for companies: supporting one candidate to protect immediate business interests could damage relationships with others who may hold power in the future.
But the stakes extend beyond campaign donations.
If Democrats win control of the House, their committee chairs could use congressional oversight powers to investigate companies, request documents and summon executives to testify. Such hearings could expose embarrassing internal communications or raise questions about corporate conduct. Congressional committees have established powers to subpoena documents and witnesses, subject to applicable rules.
Some companies have already hired lawyers to review employees’ communications for material that could become public and prepare executives for potential hearings. Others are trying to please lawmakers before investigations begin.
Yet companies cannot simply abandon Trump. His administration will remain in office until January 2029, meaning businesses must continue dealing with him and officials who could influence future policy.
The result is a delicate balancing act. Companies are trying to protect themselves against a possible Democratic resurgence without sacrificing their existing relationships with Republicans. Their challenge is not simply to win back favour with one party, but to maintain influence in a divided political landscape where neither side can be simply ignored.
(Edited by Insha Jalil Waziri)