The results of the U.S. midterm elections are in, with the Democrats successfully taking control of both the Senate and the House, meaning Trump will face greater resistance when pushing policies in the future. However, one thing that people may not have noticed is: although the Republicans have lost control of Congress, the new Congress will not officially take office until January 3, 2027. *
 
In other words, over the next two months or so, the current Congress can still pass legislation and even decide on the future spending arrangements of the U.S. government.
What is a “lame-duck session”?
In U.S. politics, there is a term known as a “lame-duck session,” which refers to the period after an election but before the next Congress officially takes office, during which the outgoing Congress continues to meet. Even if some members have lost their seats, as long as their terms have not yet ended, they still have the right to vote and can participate in legislation and the approval of government spending. This period is not merely a waiting period for the transition; important policies have also been passed during it in the past.
For example, after the 2020 presidential election, the Congress at the time passed a roughly $900 billion COVID-19 relief package in December, which was signed by the outgoing President Trump.
*This shows that even after the election results have been announced, the outgoing Congress still has the ability to make major decisions that affect the economy. *

What is worth watching this time?
The most direct example is the issue of U.S. government funding. Some government departments are currently relying on a continuing resolution to keep operating, and this arrangement is set to expire on December 11.
Congress needs to decide before the deadline whether to pass a new fiscal year’s appropriations bill or extend the continuing resolution again. If the two parties fail to reach an agreement, funding for some federal departments could be cut off, leading to a government shutdown.
Although the Democrats have already won the election, the current Republican-led Congress still needs to make this important decision before the Democrats formally take control of Congress.
Why should financial markets pay attention?
Because government funding affects not only whether departments can operate, but also future government spending and borrowing arrangements.
So the election result does not mean that policies will change immediately. In addition to watching what policies the Democrats will push once they take office next year, it is also worth paying attention to the December 11 funding deadline and whether any other important decisions will be made before the transition between the old and new Congress.
Although a lame duck may be limping, it can still take an important step in the final stretch.