The 2012 Presidential and Congressional elections, the most costly in U.S. history, have concluded for all but a few races still not tallied and the results look vaguely similar to the 112th Congress. However, given the press of budget and tax issues described as a “fiscal cliff” that could churn markets and depress the U.S. economy further, and the fact that exit polling showed that 60 percent of Americans believe the economy is the most important issue, we expect that there will be a more sustained level of activity than we have seen since the 2010 midterm elections. Attempts to conquer the enormous federal budget deficit in the near term and in the long term will consist of efforts to reform entitlement programs, continue the squeeze of discretionary appropriations, and the overhaul of the Internal Revenue Code. We expect that every sector, from manufacturing to nonprofits, will have substantial interest in the proposals that the President and Congressional factions will offer. Although facially the election results look like an endorsement of the status quo, it does not mean that there will be a lack of effort to legislate a resolution to the pressing fiscal issues and get the country on the right track.

The Government Relations Practice Group of Arent Fox has prepared the following initial analysis and commentary on yesterday’s election results and what they might mean for policymaking in the remainder of the current session of Congress and in the first two years of the President’s new term of office.

To read the complete overview, click here.