*By Carlo Versano*
The Democratic Party successfully flipped the House of Representatives in a bitterly contested midterm election, guaranteeing a substantive check on President Trump’s power and presenting a new challenge for the two-year-old administration.
Addressing supporters, Rep. Nancy Pelosi, presumably the House Speaker-elect, said: "Tomorrow will be a new day in America."
But Republicans prevented the "blue wave" they had feared, holding the Senate and several high-profile statehouses, including Florida, where Andrew Gillum conceded the race to Ron DeSantis, who had doubled down on his allegiance to Trump in the campaign.
In Texas, Sen. Ted Cruz managed to fight off an insurgent campaign from Beto O'Rourke that had energized Democrats around the country. Republicans also flipped three blue Senate seats in red states, picking off Claire McCaskill in Missouri, Heidi Heitkamp in North Dakota, and Joe Donnelly in Indiana.
As of early Wednesday morning, the closely-watched governor's race in Georgia was still too close to call. Two other key gubernatorial races went to Democrats. Kris Kobach, a top Trump ally in red Kansas, lost his campaign. Republican Scott Walker also lost his bid for a third term as governor in Wisconsin.
In the House, Democrats sent incumbent Republicans packing on the strength of turnout in suburban districts, from Richmond to Kansas City to Miami, with more gains expected in the west.
On social media, voters reported long lines and packed gymnasiums throughout the day, signaling a higher-than-usual turnout for a midterm election that has been all but cast in stone as a referendum on the Trump presidency.
There were numerous reports of technical problems around the U.S. as voters headed to the polls Tuesday. In [one Georgia county](https://www.ajc.com/news/state--regional-govt--politics/live-updates-georgians-head-the-polls/DtYWWHcxngbl4SdVaDAyDL/), voters waited for hours while election workers tried to locate power cord for the voting machines. Even Brian Kemp, the Republican candidate for Georgia governor who oversees the state's elections, had [trouble](https://twitter.com/wsbtv/status/1059946786515759107) casting his ballot.
Exit polls gave a sense of how this election was being framed in the minds of the electorate. In NBC News' [exit poll](https://www.nbcnews.com/card/nbc-news-exit-poll-3-4-voters-say-americans-are-n932501), 78 percent of voters nationwide said it was important that more women be elected to office. Seventy-one percent expressed the same sentiment about minorities.
That exit poll found three out of four voters worry that the country is becoming more divided ー and two-thirds said Trump was a factor in their vote. CNN's exit poll also found deep pessimism about the direction of the country, an unusual trend line in a strong economy.
President Trump seemed unfazed on Twitter: "Tremendous success tonight. Thank you to all!"
Many U.S. consumers say they’ve noticed higher than usual prices for holiday gifts in recent months, according to a a December poll from The Associated Press-NORC Center for Public Affairs Research. A contributing factor is the unusually high import taxes the Trump administration put on foreign goods. While the worst-case consumer impact that many economists foresaw from the administration’s trade policies hasn’t materialized, some popular gift items have been affected more than others. Most toys and electronics sold in the U.S. come from China. So do most holiday decorations. Jewelry prices have risen due to the cost of gold.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
President Donald Trump has signed an executive order to block states from regulating artificial intelligence. He argues that heavy regulations could stifle the industry, especially given competition from China. Trump says the U.S. needs a unified approach to AI regulation to avoid complications from state-by-state rules. The order directs the administration to draw up a list of problematic regulations for the Attorney General to challenge. States with laws could lose access to broadband funding, according to the text of the order. Some states have already passed AI laws focusing on transparency and limiting data collection.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
House Republicans in key battleground districts are working to contain the political fallout expected when thousands of their constituents face higher bills for health insurance coverage obtained through the Affordable Care Act. For a critical sliver of the GOP majority, the impending expiration of the enhanced premium tax credits after Dec. 31 could be a major political liability as they potentially face midterm headwinds in a 2026 election critical to President Donald Trump’s agenda. For Democrats, the party’s strategy for capturing the House majority revolves around pinning higher bills for groceries, health insurance and utilities on Republicans.
