By Nandita Bose
WASHINGTON, Aug 8 (Reuters) - U.S. House Democrats preparing for a possible return to power are developing a broad investigative strategy targeting companies and financial firms surrounding President Donald Trump, instead of trying to impeach him immediately, according to four people familiar with the discussions.
Senior Democrats in the U.S. House of Representatives and committee aides have discussed using hearings, subpoenas and document requests to obtain records from entities tied
to Trump's political and business orbit, the sources said. It is a bet that investigating private companies and outside financial players will prove more fruitful than directly confronting a White House they expect to resist oversight, they said.
The approach reflects both Democratic caution and a lesson many in the party say they learned during Trump's first term: that impeachment proceedings can consume Congress while allowing Trump to cast himself as the victim of a partisan campaign.
Instead, Democrats involved in the planning envision using House investigative powers after November's midterm elections to scrutinize the administration's decision-making and examine whether Trump used his power to benefit himself, allies or donors.
"We're not going into this to impeach," said a senior Democratic aide, describing the thinking among party leaders and committee staff. "No one wants a failed vote on day one. The focus is on building a body of evidence through investigations that can hold Trump accountable."
Republicans hold a narrow House majority, and polls favor Democrats regaining the majority in November. Winning control would give Democrats the power to issue subpoenas, compel testimony and documents, hold public hearings and pursue contempt proceedings.
Democrats expect the White House to fight or ignore requests aimed at the executive branch, making companies, contractors and financial firms working with the administration an important route for obtaining information, the sources said.
The White House said in a statement that Trump has worked to thwart the "radical left's agenda" and remains committed to preserving Republican majorities in Congress. A White House official said the administration is "prepared to respond to oversight requests, no matter who is in the House or Senate."
Three sources said Apple, Alphabet, Palantir, Blackstone, BlackRock and companies owned by Elon Musk, such as Tesla, have surfaced in discussions because of their contracts, regulatory exposure or administration dealings. The sources said no final target list has been established and no formal investigations have begun.
The sources provided no further details about the investigations. Reuters could not determine if they face any accusations of wrongdoing.
Alphabet, Palantir, Blackstone and BlackRock declined comment. Apple and Tesla did not respond to a request for comment.
Democrats are expected to examine Department of Homeland Security contracts, financing for Trump's planned White House ballroom, corporate donors and alleged pay-to-play arrangements, two sources said. They also plan a probe of Trump-linked financial vehicles including 1789 Capital - a venture capital firm where his son Donald Trump Jr. is a partner - and foreign sovereign wealth funds whose investments in Trump family-linked entities could raise questions about administration influence, the sources said.
1789 Capital did not respond to a request for comment.
Because foreign funds may be harder for congressional committees to reach, Democrats are discussing seeking records from U.S.-based firms and funds tied to Trump's family and other intermediaries, the two sources said.
LAYING THE GROUNDWORK
Democrats have already begun laying the groundwork for investigations, two of the sources said.
Party leaders are sending letters to companies, contractors and other organizations connected to potential investigations, they said. The requests seek records and pave the way for subpoenas if Democrats win the House, the two sources said.
Representatives Robert Garcia from California and Jamie Raskin from Maryland, the top Democrats on the House Oversight and Judiciary Committees, respectively, said existing investigations would expand if Democrats win the House.
"From sketchy Pentagon contracts lining the pockets of the president's sons, Trump's crypto billions, and the shady backroom deals for Trump donors, we will ensure we combat corruption when Democrats take back the House in November,” Garcia said in a statement.
The letters include requests for information from media company Paramount Skydance over its dealings with the Trump administration and the proposed Warner Bros. Discovery deal as well as video platform YouTube and parent company Alphabet over the company's $24.5 million settlement with Trump in September. Letters have also been sent to private prison operator GEO Group and security firm Salus Worldwide Solutions for their contracts with the DHS as well as commodity traders Vitol and Trafigura over the administration's sale of Venezuelan oil, the two sources said.
Alphabet and Trafigura declined comment. The others did not respond to requests for comment.
The companies can ignore the requests while Democrats are in the minority. But the letters put potential targets on notice and signal records Democrats could subpoena, the two sources said.
IMPEACHMENT NOT FIRST MOVE
House Democratic Leader Hakeem Jeffries said in June on NBC's "Meet the Press" that Democrats haven't ruled out impeaching Trump if they win back the House but that the party's focus would be on pocketbook issues.
Democrats involved in the planning say impeachment remains an option if investigations uncover evidence of an impeachable offense, but not as a first move.
The calculation reflects the party's experience during Trump's first term, when he became the first U.S. president to be impeached twice by the House before being acquitted by the Senate each time.
"If investigations uncover evidence that we believe meets the threshold, we will not hesitate to move forward," said the senior Democratic aide.
(Reporting by Nandita Bose in Washington; Additional reporting by Patricia Zengerle, Editing by Colleen Jenkins and Deepa Babington)
