The 3 November midterms changed who controls Congress and who runs some of America's biggest public pension funds. With a large slice of Australian super invested in the US, those results reach your retirement savings too.
Few Australians voted in the US midterms on 3 November, yet almost every Australian with super has a stake in the outcome. Our super system now holds A$4.77 trillion (APRA, 2026), and a meaningful share of it sits in American companies, bonds and infrastructure. When the rules for those investments change, your balance feels it, whether you follow US politics closely or reach for the remote the moment it comes on the news.
What changed on 3 November
Democrats won control of both the House and the Senate, with a handful of races still being counted at the time of writing (NPR, 2026). President Trump keeps his veto, so Washington enters a period of divided government in which sweeping new laws become less likely and negotiated deals become the main currency.
State treasurers, comptrollers and attorneys general shape how public pension money is managed and which laws apply to it. In Texas, Democrats won the comptroller's office for the first time since 1999, along with the attorney general's office (Fox 4, 2026). Those two offices enforce the state's 2021 laws restricting financial firms deemed to be boycotting fossil fuels, which currently name 15 firms and bind the state's major public pension funds (Bond Buyer, 2026). Arizona elected its first Democratic treasurer since 1967 (KOLD, 2026), and in Connecticut the Democratic incumbent held a treasurer race fought largely over ESG investing.
The Texas laws remain in force while a court challenge continues, and changing them will still take legislation. The debate also has two genuine sides. Supporters of anti-ESG laws argue public pension managers should focus solely on financial returns and keep politics out of investment decisions, while their critics argue that ignoring climate and other long-term risks is itself a financial risk to members. What the midterms changed is who gets to make that call in some of America's largest public funds.
How much of your super is invested in the US?
A typical Australian super fund now holds over 32% of its portfolio in international shares, up from 17% in 2013 (Investor Daily, 2025), and US companies make up about 65% of the global sharemarket index most funds measure themselves against (MSCI, 2026). Put together, that means roughly a fifth of a typical balanced option is in US shares, before counting US bonds, property and infrastructure. The largest funds go further. AustralianSuper runs a New York office and holds more than US$80 billion in US assets (Investor Daily, 2025), while UniSuper said last year it had reached peak US exposure and would reduce it over time (Super Review, 2025).
So do US elections affect your super? They do, through three channels:
The first is markets. The day after the result the S&P 500 rose 1.8%, US bond yields eased and oil fell sharply as investors priced in divided government and hopes of de-escalation in the Middle East (AP, 2026). Clean energy shares rallied, while oil majors and defence stocks fell.
The second is currency. Most funds leave at least part of their international shares unhedged, so when the Australian dollar strengthens against the US dollar, as it did that week, the value of US assets in your balance dips a little.
The third channel, and the one that lasts longest, is the rules governing how companies report, how shareholders vote and how pension money can be invested.
What it means for climate and how your fund votes
For ethical and impact investors, the rules matter as much as the returns. Over the past two years Washington has moved to rescind the SEC's climate disclosure rule, proposed limits on how US pension trustees can weigh ESG factors (Ballotpedia, 2026), and issued an executive order targeting proxy advisers ISS and Glass Lewis (Harvard Law School Forum on Corporate Governance, 2026), whose voting research many investors use, including Australian super funds. Divided government doesn't automatically reverse any of this, because executive orders and agency rules sit with the White House and any new law still needs the President's signature. What shifts is the balance, with a Congress more inclined to scrutinise those moves and state officials in places like Texas and Arizona who may handle pension money differently from their predecessors.
This matters here because Australian super funds own shares in many of the same US companies. When your fund votes on a climate resolution at an American energy giant or tech company, it votes under US rules. Clear climate disclosure and an open market for voting advice make it easier for your fund to understand the risks it holds and use its vote well, and tighter restrictions make that harder.
There is an opportunity too. The market's reaction suggests investors now see less policy risk ahead for US renewable energy, with Morningstar describing the result as a clear positive for renewable developers (Net Zero Investor, 2026). Given how much Australian capital already sits in the US, where it flows within that market is a real lever for the energy transition.
What you can do with your super
Start by checking how your super is invested. Your fund's website shows the asset allocation for your option, including how much sits in international shares and whether that exposure is currency hedged. If having a large share of your retirement riding on one country makes you uneasy, that is a diversification question worth raising with your fund or an adviser. Next, look up your fund's proxy voting record. Most large funds publish how they voted on climate and governance resolutions, including at US companies, and it is one of the clearest signs of whether their stewardship matches their marketing. If your fund has joined or quietly left a global climate alliance, it's fair to ask why.
If you'd like help understanding how your super is invested and whether it reflects your values, book a free call with our team. We'd love to help you make your money make a difference.
Sources and further reading
APRA | Quarterly superannuation performance statistics highlights, June 2026 | 2026 | Total super assets of A$4.77 trillion
AP via Fox19 | US stocks rally after Democrats take control of Congress | 2026 | Market reaction the day after the midterms
Ballotpedia News | Labor Department submits revised ESG rule to White House | 2026 | Proposed limits on ESG in US pension investing
Bond Buyer | Texas election puts Democrats in charge of anti-ESG laws | 2026 | Texas fossil fuel boycott laws and the offices that enforce them
Harvard Law School Forum on Corporate Governance | Executive Order Targeting ISS and Glass Lewis | 2026 | Federal pressure on proxy advisers
Investor Daily | Are Australia's super funds at peak US? | 2025 | Growth in international share allocations and US exposure
KOLD | Democrat Nick Mansour wins Arizona treasurer race | 2026 | Arizona's first Democratic treasurer since 1967
NPR via OPB | Democrats win full control of Congress | 2026 | Midterm results and divided government
Responsible Investor | US midterms have shifted balance of pension power | 2026 | The pension governance angle (subscription required)
