What the U.S. midterm elections could mean for business and professional services

With the 2026 U.S. midterm elections approaching, RSM is looking at the economic stakes and the key issues for various industries. This article is one part of that series.

The 2026 U.S. midterm elections will help shape the policy landscape facing U.S. businesses through the remainder of the decade. Changes in congressional control, oversight priorities and state-level policymaking could influence everything from taxes and funding programs to regulation, workforce issues and investment decisions.

Here’s a look at the implications for business and professional services.

The top issue for business and professional services

For business and professional services firms, the key question is not which policies are enacted, but how businesses respond to the environment that emerges following the elections.

Changes in tax policy, infrastructure spending, workforce rules and broader economic priorities can influence whether businesses invest, hire, pursue acquisitions or launch strategic initiatives. Those decisions, in turn, drive demand across the industry, but particularly within the professional services and workforce solutions sectors. 

The impact may be more direct for the facility and environmental services sector. Federal and state decisions affecting environmental compliance, permitting, energy policy, public facilities projects and workforce availability can influence project pipelines, capital spending and service demand. 

The common thread across the industry is whether the post-election environment encourages investment and growth or contributes to continued uncertainty around spending decisions.

Implications for future legislation

Control of Congress matters because many industry-relevant issues move through appropriations, oversight, agency funding and must-pass legislation rather than standalone bills. For business and professional services firms, the primary impact is often tied to client behavior. Greater certainty around tax policy, capital investment incentives and regulatory priorities can support spending on advisory, technology, transaction and consulting services, while uncertainty may delay those decisions.

State outcomes may also matter where federal action remains unsettled. Business leaders should focus not only on potential policy changes, but also on how those changes may influence customer spending and project activity across the industries they serve.

Other top issues for business and professional services

Artificial intelligence regulation. AI remains an area of uncertainty. No federal statute currently preempts state AI laws, and state-level frameworks continue to evolve. Professional services firms using AI in client delivery, operations or workforce management may need to monitor federal litigation and state compliance requirements as governance expectations develop.

Federal funding and procurement activity. Congress has faced increasing difficulty enacting annual appropriations bills on time, while federal obligations for professional and management support services have declined in recent years. Firms with federal consulting, infrastructure, technology, compliance or advisory exposure may need to manage slower awards, shifting agency priorities and changes resulting from the Federal Acquisition Regulation rewrite currently in rulemaking. These developments could affect pipeline timing, revenue visibility and contract administration requirements.

Workforce policy. Worker classification remains active at the federal level, with the Department of Labor proposing to rescind the 2024 independent contractor regulation and return to a test focused on control over work and opportunity for profit or loss. Immigration policy and enforcement also remain relevant for firms that rely on specialized talent, including H-1B workers, and Form I-9 compliance processes. Labor availability remains a key issue across professional services firms and labor-intensive facility services businesses.

State taxation of services. Taxation frameworks for business and technology services remain uneven, potentially affecting pricing, sourcing and compliance planning for firms operating across jurisdictions. As states look for revenue sources and address emerging technologies, businesses may face increasing complexity in managing multistate service delivery models.

By the numbers

Twenty million workers.

According to the U.S. Bureau of Labor Statistics, the business and professional services sector employs more than 20 million workers, making it one of the nation's largest employment sectors. Because demand for these services is closely tied to client investment, hiring and growth plans, changes in business sentiment can have ripple effects throughout the sector.

What middle market businesses should consider now

Middle market businesses should evaluate how different policy outcomes could affect customer spending, hiring plans, capital investment and project activity. For business and professional services firms, understanding client exposure to changing tax, regulatory and economic policies may be just as important as evaluating direct impacts on their own operations.

Facility and environmental services companies should monitor developments related to infrastructure funding, environmental regulation, permitting requirements and workforce availability that could influence project pipelines and operating costs.

Across all sectors, leaders should assess workforce strategies, document governance around AI use, and monitor state-level developments related to taxation, labor and technology regulation. Taking a scenario-based approach can help organizations prepare for policy variation without relying on a specific election outcome.