Phase 2 Consulting urges companies to prepare for new congressional oversight

Phase 2 Consulting is telling corporate leaders to build relationships with incoming congressional leaders before Democrats take control of the House and Senate on Jan. 3, 2027. The firm says companies face new oversight, stronger agency and state action, and closer scrutiny of their community relationships.

Why it matters: - Companies may face new committee chairs, staff, and coalitions they do not know when Democrats take control of the House and Senate on Jan. 3, 2027. - The shift could bring more hearings, letters, and document requests aimed at individual companies or entire industries. - Corporate relationships with lawmakers, regulators, and community leaders may shape how quickly companies can respond when scrutiny arrives.

What happened: - Phase 2 Consulting issued guidance for executives and boards on what to address before the new Congress convenes. - The Washington strategic advisory firm is led by Lamell J. McMorris. - Hakeem Jeffries is in line to become the first Black Speaker of the House. - Representative Maxine Waters is positioned to chair the House Financial Services Committee. - The administration will still control federal agencies, creating two years of divided government.

The details: - Phase 2 Consulting identified three exposures companies should address now. - Oversight is the first exposure, with new chairs expected to set new priorities. - More hearings, letters, and document requests are likely, and those requests may target one company or one industry. - Agency and state action is the second exposure, with regulators and state attorneys general expected to drive change because Congress is divided. - Community trust is the third exposure, because lawmakers and regulators often hear from civil rights, faith, and local leaders who know a company’s record. - Companies without those relationships may find themselves explaining their actions to people who do not know them. - McMorris said trust is built before a hearing is scheduled, not after. - Phase 2 Consulting works with leaders in both parties and does not advocate for either. - The firm said Republican members and the administration remain essential to any company’s strategy. - The firm’s goal is to help clients understand who is in the room, what those leaders care about, and how to engage credibly and early. - Phase 2 Consulting is offering complimentary post-election briefings for executive teams and boards through January. - Companies can schedule a briefing by contacting Rosemary Staltare at Rosemary@Phase2-consulting.com or 786-683-0045. - Phase 2 Consulting was founded in 2002 and is based in Washington, DC. - The firm focuses on financial services, energy, and telecommunications. - Its services include government and community relations, stakeholder engagement, coalition-building, issues management, and business resilience. - McMorris is also author of The Power to Persist: 8 Simple Habits to Build Lifelong Resilience. - McMorris previously served as Principal and Head of Regulatory and Government Affairs at Edward Jones. - McMorris is Senior Vice Chair of the National Urban League Board of Trustees and hosts The Power to Persist Podcast. - McMorris’ LinkedIn profile is available here.

Between the lines: - The guidance reflects a Washington environment where relationships can matter as much as formal policy fights. - The focus on community trust suggests companies should prepare for scrutiny that extends beyond Capitol Hill and into local and civil rights networks. - Phase 2 Consulting is signaling that political preparation is now a broader reputation-management exercise, not just a legislative one.

What's next: - Companies that expect to be affected by congressional oversight may want to start meeting new leaders before hearings begin. - Boards and executive teams can use the firm’s post-election briefings to map likely points of pressure and identify key decision-makers. - The next major test will come when the new Congress opens and committees begin setting agendas.