The midterm elections are expected to usher in a new wave of congressional oversight, and the House Armed Services Committee seems poised to open significantly more investigations in the 120th Congress than it has in recent years. In a November 4, 2026, statement, Ranking Member Adam Smith (D-Wash.), who is seeking the Committee gavel in January, said he would prioritize “vigorous oversight of the Department of Defense and the Trump Administration.” Notably, he called for reviving the Committee’s oversight and investigations subcommittee, which has been defunct since 2019.
Rep. Smith’s statement also previews likely oversight priorities, and government contractors feature prominently. In addition to scrutinizing Pentagon leadership and domestic troop deployments, Rep. Smith called for reviewing “contracts and other financial support awarded to private companies” to identify “waste, fraud, and abuse.” He similarly identified “sweetheart deals and favoritism to certain entities and individuals” as priorities.
This focus is consistent with the broader Democratic oversight agenda taking shape for the 120th Congress. As we noted this summer, Democratic leaders have signaled their interest in reviewing private companies’ dealings with the federal government for potential conflicts of interest, favoritism, or favor-trading. Government contractors face particular risk because congressional investigators have several avenues for obtaining information concerning their dealings with federal agencies. A dedicated Armed Services Committee subcommittee on oversight and investigations would allow Democratic Members to devote more substantial resources to such inquiries, including dedicated oversight staff and a subcommittee to hold oversight hearings. Moreover, although House Armed Services subcommittee chairs currently lack unilateral subpoena authority, there is a possibility that the incoming Democratic leadership of the Committee may seek such authority, which is common among other House committees, in its rules for the 120th Congress.
The leadership, structure, and jurisdiction of any new subcommittee will become clearer in the coming months. Companies with significant government business, particularly those with relationships likely to attract political attention, should begin preparing for potential congressional oversight. Government contractors, as we previously explored, face unique risks amid growing congressional scrutiny. Please contact any member of Covington’s Congressional Investigations and Government Contracts practices, both ranked Band 1 by Chambers USA, if you have any questions.
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