Key House Democrat signals heightened regulatory scrutiny at DOL following big election victories

Hours after Democrats won control of Congress on Nov. 3, 2026, Rep. Bobby Scott, D-Va., began laying the groundwork for investigations and heightened regulatory scrutiny. According to Pensions & Investments, Scott sent letters on Nov. 4 to the heads of 10 federal departments and agencies under the Education and Workforce Committee's jurisdiction, reminding them of their obligation under the Federal Records Act of 1950 to preserve all records that may be in the public interest. In a statement, Scott said, "As the top Democrat on the Committee, I intend to hold this Administration accountable by calling them to answer for their actions." He added that he would "use Congress' oversight tools and leave no stone unturned."

In his letter to Labor Secretary Keith Sonderling, Scott requested "an assurance, in writing," by Nov. 18 that records have not been and will not be concealed, modified, removed, transferred, destroyed, or otherwise rendered inaccessible. The DOL did not immediately respond to a request for comment. Final vote counts were still pending in some races, but Democrats are expected to hold comfortable majorities in both chambers for the next two years.

Prior to the election, industry sources told P&I that Democrat-led committees overseeing the DOL and the Securities and Exchange Commission were likely to scrutinize rulemakings and procedures through hearings and document requests. Kevin Walsh, principal and fiduciary practice leader at Groom Law Group, said that when one party controls both chambers of Congress and another holds the White House, "oversight and investigations tends to be a high priority."

The political shift does not immediately alter the regulatory agenda. Trump remains in the White House, and Republican leaders at the DOL and SEC will continue executing their agendas. Walsh said he does not expect the result to materially change the agenda at the DOL's Employee Benefits Security Administration, including its March investment selection proposal to broaden access to private markets in 401(k) plans. Newly empowered Democrats could nonetheless scrutinize that proposal, which sources expect to be finalized before the new Congress convenes in January.

Opposition to the proposal has been organized. In June, Scott, Sen. Bernie Sanders, I-Vt., and Sen. Elizabeth Warren, D-Mass., submitted a joint comment letter arguing the proposal would "strip long-held investor protections from retirement savers and encourage the use of more risky, complex, and expensive investments." Sanders is in line to lead the Senate Health, Education, Labor, and Pensions Committee, and Warren is in line to chair the Senate Banking Committee. In September, Scott, Sanders and Rep. Jamie Raskin, D-Md., who is likely to chair the House Judiciary Committee, called for an investigation into roughly 12,000 comments the DOL received on the proposal that were allegedly manufactured in support of it.