Politics Moves Fast, Your Strategy Should Move Faster

Invariant’s Joel Richard sat down with CEO Heather Podesta for a Q&A session. They discussed the latest in Washington and what those political dynamics mean outside the Beltway. Below are some excerpts from that conversation.

Joel: You mentioned that 2025 has been a bit of a whirlwind. Donald Trump was sworn in to his second term on January 20, nine months later we’ve seen DOGE shake up federal agencies, a flurry of executive orders, a concentration of power and influence within the White House, Liberation Day tariffs and subsequent trade negotiations, a reconciliation package that extended key corporate tax cuts, and litigation surrounding all of those actions that I just mentioned, often proceeding all the way to the Supreme Court.

While all of this was happening in Washington, we’ve seen political upheaval across the country, including interior immigration enforcement by ICE, the deployment of National Guard troops in Chicago and Oregon, and horrific acts of political violence and a highly charged discourse that present real risks.

Could you walk us through your top takeaways from the start of Trump’s second term?

Heather: I’d sum it up this way: this Trump Administration looks very different from the first one. It’s more professional, more organized, and frankly, more effective at moving its agenda.

That comes with a lot of disruption. The Administration is systematically trying to unwind or reshape large parts of the regulatory state. You see it in environmental policy, labor rules, financial regulation, trade — all moving with real speed.

For companies, that means both risk and opportunity.

The risk is obvious: volatility, shifting rules, policy reversals. But there’s also opportunity if you engage constructively. We’ve had success engaging the Administration where its goals align with broader economic growth and efficiency — for example, efforts to streamline permitting, modernize infrastructure approvals, and cut duplicative compliance burdens.

The Administration is looking for businesses to step up and demonstrate how the private sector is working to make America more competitive internationally.

And it’s become much lower risk to work with the Administration when it aligns with your business priorities. That doesn’t mean businesses aren’t facing blowback for collaborating with the Administration. That’s why every company should have a thoughtful strategic plan that develops allies and champions on both sides of the aisle.

Joel: You mentioned opportunity — and at the same time, some serious challenges. One issue that has kept companies on their toes is tariffs. How have you seen this issue play out?

Heather: Tariffs are probably the clearest example of how this Administration’s philosophy plays out in practice. The underlying thesis is: grow the U.S. economy to the benefit of American workers. That’s not a slogan — it’s the organizing principle behind most of their trade and industrial policies.

So, if you engage Washington by simply saying, ‘Tariffs are bad, don’t do them,’ you’re unlikely to get very far.

You have to start from where they are — acknowledge the objective of strengthening domestic production and jobs — and then make the case that your global supply chain, your investments, your operations support that mission. That’s how you open the door to a productive conversation, rather than a confrontational one.

It’s a delicate balance. The Administration is serious about using trade policy as leverage — but it’s also open to working with companies that can demonstrate how their growth aligns with national economic goals. That’s the kind of strategic engagement that pays dividends over time.

Joel: Turning to politics: 2026 could break Republicans’ unified control of the political branches. What’s your read on the landscape now — where are the key battlegrounds, and what might a midterm result mean for the remainder of the Trump term?

Heather: The midterms are rarely kind to the president’s party. Historically, the president’s party loses in midterms, especially in a second term, which is being seen as a point of optimism by some Democrats. Still, it’s early. And as I said, preparation is super important; being ready for anything is what will keep you on track. There could be a new fissure in the economy – inflation, growth, consumer sentiment – or a national security or foreign policy crisis. And domestically, politically, there are redistricting efforts with associated legislation happening in key states like California, New York, Texas, Missouri, and Florida.

But looking at the landscape, specifically, to your question, the Senate map is challenging for Democrats. They have to defend Jon Ossoff in Georgia; they have to keep an eye on competitive open seats where there are retirements: Michigan, New Hampshire, Minnesota. And at the same time, Republicans are defending seats in Ohio and Maine and have one of the most competitive races in the country – replacing outgoing Senator Thom Tillis. In Texas, there’s also John Cornyn, the senior Republican, facing a primary with Attorney General Ken Paxton.

The House will have its own tight races – swing districts in suburban and exurban areas will be battlegrounds. I think there are competitive seats in New York, California, Texas, Pennsylvania, and Nevada. Bigger picture, if Republicans lose one chamber it will constrain the remaining agenda of the President Trump, especially appropriations, oversight, investigations, confirmations, and legislation. And ... that’s a lot.

But if they retain control, they may consolidate leverage over executive-branch reforms, oversight, and regulatory rollbacks. Republicans in Congress are pushing to move a second budget reconciliation package that would alleviate the need for 60-votes in the Senate, but that’s a non-starter if House Democrats can win the majority.

I think it’s also important for us to understand these possible scenarios for businesses. Midterm outcomes can shift the balance of power in committees (e.g., oversight, energy, agriculture, regulatory review), which can change access, leverage, and the tone of oversight, which can always impact agendas and private sector bottom lines. Democrats are currently operating through their bully pulpit. Without gavels in Congress, oversight efforts are limited by negotiation and cooperation with either Republicans in Congress or with the private sector parties subject to oversight requests.

Not to overstate this, but this is why it’s important to have lobbying support for any congressional requests for information or other oversight issues.

Joel: In your experience, when a company is thinking ahead to that political volatility, what are some practical steps legal teams and public affairs partners should be taking now rather than waiting until election results are clearer?

Heather: Don’t wait: start now. Assess exposure in swing states and key districts. Identify which jurisdictions might become politically sensitive or subject to oversight attention. I would also say build relationships early, not just with people in your party, but across the aisle. Think of staffers, agency contacts, oversight committees, everyone becomes crucial.

Keep your eyes open to reading other possible ways to get ready: monitor fundraising, track early candidate announcements, follow polling, and read the local media takes in these districts. Begin scenario modeling for “if control flips, here’s our playbook.”

You shouldn’t overlook the impact and importance of “soft power.” Truly try to invest in it – reputational capital, personal and professional credibility, issue positioning – it’s worth it to have more leeway when cycles intensify. And they will.

The fundamental rule of Washington today is that this is now the center of the universe. It is where the conversations are happening and where next steps are calculated. And no matter who is in the White House, who controls the power on the Hill, or who is winning popularity contests – the pendulum swings. There are quick wins here, sure, but the people who last and the people who matter are preparing for the long game.