Senator Josh Hawley from Missouri has reintroduced a bill aimed at stopping members of Congress and their families from trading stocks. This legislation, named the Preventing Elected Leaders from Owning Securities and Investments Act, or PELOSI Act, was brought back during the current 119th U.S. Congress.
The PELOSI Act seeks to change federal law to prevent lawmakers from engaging in stock transactions. It specifically bans them and their spouses from buying, selling, or holding individual stocks for the duration of their time in office. If the bill passes, lawmakers will have 180 days to comply with these new rules.
Hawley first introduced this legislation in January 2023, following concerns about insider trading among politicians. The name of the bill references former House Speaker Nancy Pelosi, whose husband made a significant stock purchase in a semiconductor company just as Congress was considering legislation to support the semiconductor industry. This incident raised questions about the ethics of stock trading by lawmakers.
If lawmakers refuse to follow the new rules, they would have to give up any profits made from stock trading to the U.S. Treasury and could face fines. Hawley emphasized the need for Congress members to focus on serving the public rather than profiting from stock trades. He stated, “Americans have seen politician after politician turn a profit using information not available to the general public. It’s time we ban all members of Congress from trading and holding stocks and restore Americans’ trust in our nation’s legislative body.”
Former President Donald Trump has also expressed support for banning congressional stock trading, stating he would sign such legislation if it reached his desk. He pointed out that he has observed politicians like Nancy Pelosi benefiting from insider information and believes it should be stopped.
The reintroduction of the PELOSI Act highlights ongoing concerns about transparency and ethics in Congress, as more Americans call for stricter rules on how lawmakers can manage their financial interests while in office.