Push to ban congressional stock trading heats up
Despite advancing in an 8-7 vote, the bill’s future remains uncertain
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WASHINGTON _ The long-standing debate over whether elected officials should be allowed to trade stocks while in office has reached a new crescendo, with efforts to pass legislation intensifying.
The U.S. Senate Committee on Homeland Security & Governmental Affairs recently passed Senator Josh Hawley’s (R-Mo.) bill, dubbed the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act. Hawley was the only Republican on the panel to support the legislation, which garnered enough support to pass out of committee.
Despite making it out of committee in an 8–7 vote, the bill’s future remains uncertain. Sources suggest that Senate Majority Leader John Thune (R-S.D.) is unlikely to bring the legislation to the floor for a full vote.
Republican senators voiced frustration about voting on a bill with eleventh-hour changes. Sen. Bernie Moreno (R-Ohio), who sits on the panel, argued that they “have literally no idea what we’re voting for.” Hawley later told reporters that the modifications adjusted the implementation timeline, moving from a blanket 2027 start date to the beginning of each officeholder’s next term.
“What it does is it changes it from 2027 to the beginning of the next term of any officeholder,” Hawley said Wednesday. “So if you’re in the House, it would start January 2027, for a third of senators.” Notably, the amended version would not take effect for the current president and vice president during their present term, addressing some of the White House’s initial constitutional concerns about including administration officials.
While Hawley told reporters that Trump endorsed his bill, the president railed against him on Truth Social for voting with Democrats in committee.
“Why would one ‘Republican,’ Senator Josh Hawley from the great state of Missouri, join with all of the Democrats to block a review, sponsored by Senator Rick Scott, and with the support of almost all other Republicans, of Nancy Pelosi's stock trading over the last 25 years? The information was inappropriately released just minutes before the vote — very much like SABOTAGE! The Democrats, because of our tremendous ACHIEVEMENTS and SUCCESS, have been trying to ‘target’ me for a long period of time, and they're using Josh Hawley, who I got elected TWICE, as a pawn to help them. I wonder why Hawley would pass a bill that Nancy Pelosi is in absolute love with — he is playing right into the dirty hands of the Democrats. It's a great bill for her, and her ‘husband,’ but so bad for our country! I don't think real Republicans want to see their President, who has had unprecedented success, TARGETED because of the whims of a second-tier senator named Josh Hawley!” Trump said.
However, President Trump did not rule out signing a stock trading ban should it pass, though he stopped short of a full endorsement.
“Well, I like it conceptually. I don’t know about it, but I like it conceptually,” Trump said Wednesday, adding that he would need to study the details carefully.
The president went on to criticize former House Speaker Nancy Pelosi’s investment performance, suggesting she should be investigated for potential insider trading. “Nancy Pelosi became rich by having inside information. She made a fortune with her husband, and I think that’s disgraceful,” he said.
A White House source noted that Hawley had voted down an amendment that would have facilitated such an investigation, adding that “the president’s comments speak for themselves,” and referencing Trump's own remark: “I have to look at the details.”
Pelosi issued a statement supporting a bipartisan House bill that seeks to bar individual stock trading, the HONEST Act, calling for greater transparency. “We must have strong transparency, robust accountability, and tough enforcement for financial conduct in office because the American people deserve confidence that their elected leaders are serving the public interest — not their personal portfolios,” she said.
Pelosi also responded to Republicans targeting her with the acronym of Hawley’s bill, adding: “While I appreciate the creativity of my Republican colleagues in drafting legislative acronyms, I welcome any serious effort to raise ethical standards in public service.” She added that she believes the restriction should be extended to the president and vice president, in addition to members of Congress.
Meanwhile, in the House, conservative Rep. Anna Paulina Luna (R-Fla.) is working to force a vote on similar legislation via a discharge petition. Some lawmakers worry that trading bans could deter qualified candidates from running for office, particularly those concerned about adequately investing for retirement while following existing ethics rules. These concerns reflect a broader anxiety that overly restrictive investment rules could create barriers to public service, especially for individuals who rely on investment income for financial security.
The fundamental tension underlying this debate centers on preventing potential insider trading by lawmakers who have access to non-public information that could affect markets. Proponents of the trading restrictions argue that such measures are necessary to maintain public trust and prevent conflicts of interest. They contend that elected officials should not be able to profit from information they receive in their official capacity, as this creates an inherent conflict between personal financial gain and public service.
Critics, however, argue that existing ethics rules and disclosure requirements provide sufficient oversight without creating undue hardship for public servants, with some raising concerns that bans could discourage qualified individuals from running for Congress.
“We make it very unattractive for people to run for office,” Sen. Ron Johnson (R-Wis.) said during the hearing.
Hawley took a swing at his Senate colleagues who have spoken out against the legislation, arguing, “They want to trade stocks, they like stock trading. This is how it was last time, too.”
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