How Trump lost control of Congress and Musk’s Texas businesses brace for blue wave: Morning Rundown
President Donald Trump arrives for a campaign rally at the Ocean Center Arena in Daytona Beach, Florida, last Friday. Andrew Harnik / GettyShareAdd NBC News to GoogleNov. 5, 2026, 7:01 AM ESTBy Elizabeth Robinson, Josh Feldman and Josephine MurphyThe Republican missteps that led to the party losing control of Congress. Musk faces scrutiny from Democrats in Texas. And Trump is considering Defense Secretary Pete Hegseth’s position, sources say.
A day after Democrats won back control of Congress, President Donald Trump largely skirted talk about the Republican Party’s election night performance. He instead boasted about the White House ballroom construction — though when asked, said he didn’t regret starting a war in Iran.
Still, the GOP is reeling. The president’s party almost always loses ground in midterms, but Trump’s policies in the past two years — from tariffs, cuts to Medicaid and food stamps, as well as Iran — offered few promising angles for reversing that curse.
NBC News spoke to more than 50 people close to the Trump campaign who detailed the plans and missteps that set the stage for a shocking upheaval.
Despite bleak poll findings in late August that showed voters were most concerned about the economy, Trump took to the campaign trail with a familiar and fateful message: “Pretend I’m on the ballot.” There was no course correction on policy, no bow to the frustrations voters felt.
Democrats take House and Senate in historic midterm win02:58And in primary contests nationwide, Trump threw his support behind candidates who would end up losing. He urged South Carolina Sen. Darline Graham to run for a full term despite questions about her qualifications. And he endorsed Texas Attorney General Ken Paxton for Senate, setting off a “total, major freakout,” one Republican said.
As Republicans pointed fingers at one another, Democrats coalesced around their nominees.
Democrats look to chart path forward with historic ‘mandate’ after landslide victory18:47After more than 80% of midterm voters said they were worried about the price of necessities, a “blue tsunami” came through for Democrats who pledged to make life more affordable. Now comes the daunting task of turning this promise into a reality.
Congressional Democrats will have several policies they can pursue to push down consumer costs — assuming they make it past Trump, who has the power to veto any legislation Congress passes. Incoming leaders, including Michigan’s Abdul El-Sayed and Texas’ James Talarico, and party mainstays, like Rep. Hakeem Jeffries, have pushed ideas such as Medicare for All, free preschool and reversing Republican cuts to healthcare.
But Trump’s own policies — and Republicans’ lackluster midterm results — serve as a cautionary tale for Democrats as they attempt to address affordability.
What Dems are saying about affordability.
Tech moguls suffer defeat as midterm results show young men swinging away from Trump02:53In recent years, Elon Musk has moved his home and businesses, SpaceX and Tesla, from California to Texas in a bid to avoid Democratic regulators and left-wing policies. Now, he’s surrounded again, despite $168 million worth of campaign donations to Republicans.
Already, incoming Texas Attorney General Nathan Johnson, a Democrat, has pledged to investigate the world’s richest man. “He’s demonstrated his interest in pay-to-play,” Johnson said in an interview with NBC News. “He’s demonstrated interest in exerting control over public power through his own wealth and his own commercial interests.”
Democrats Gina Hinojosa, the projected winner in the governor’s race, and James Talarico, who won a Senate seat, also called out Musk on the campaign trail. The attitude in Texas may prove to be a dress rehearsal of what awaits him in Washington next year.
More on Musk’s relationships with Trump-aligned Republicans.
Defense Secretary Pete HegsethBonnie Cash / UPI via GettyTrump has told some allies that he’s considering replacing Defense Secretary Pete Hegseth, according to two people familiar with the discussions. Some of Hegseth’s upcoming travel was put on hold, sources said, and he was one of the few members of Trump’s Cabinet who were not in the White House East Room to watch the election results this week.
Two sources said the change could be over a potential resumption of major military action in Iran, or it could be related to post-midterm politics. But Trump said yesterday that he is not planning to replace Hegseth.
Why members of Congress are frustrated with Hegseth.
It’s never too early to start decorating for the holidays, and these retailers seem to agree. Several prelit Christmas trees are up to 50% off right now. Plus, if you’re getting a head start on your holiday shopping, we rounded up the best cooking gifts, best gifts for coffee lovers and best service gifts that’ll make anyone’s life easier.
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Josh FeldmanJosh Feldman is a platforms editor for NBC News.
Josephine Murphy is an NBC News platforms intern based in Los Angeles.
