Sen. Josh Hawley, R-M.O., just delivered some very bad news to Rep. Nancy Pelosi and other ultra-wealthy lawmakers late Monday.
Hawley has reintroduced a popular bill that would prevent members of Congress from trading stocks while in office, legislation that has gained rare bipartisan backing and a pledge of support from President Donald Trump.
The Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act would force lawmakers and their spouses to either sell their individual stocks or place them in blind trusts within six months of taking office.
“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” Hawley told Fox News. “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.”
The bill specifically targets Pelosi, the former House speaker whose husband, Paul has made a fortune through stock trades since she took power, including purchases of semiconductor stocks shortly before Congress approved industry subsidies. The Pelosis have denied any wrongdoing despite decades of outrage.
“For too long, politicians in Washington have taken advantage of the economic system they write the rules for, turning profits for themselves at the expense of the American people. As members of Congress, both Senators and Representatives are tasked with providing oversight of the same companies they invest in, yet they continually buy and sell stocks, outperforming the market time and again,” Hawley said in a statement.
Lawmakers would still be allowed to invest in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds under the proposal. Those found violating the rules would face stiff penalties including forfeiture of profits to the Treasury, fines amounting to 10% of wrongful transactions, and loss of tax deductions for investment losses.
The legislation has gained momentum after Trump signaled he would “absolutely” sign such a ban if it reached his desk.
“I watched Nancy Pelosi get rich through insider information, and I would be okay with it. If they send that to me, I would do it,” Trump told Time Magazine this week.
House Minority Leader Hakeem Jeffries has also endorsed the proposal, giving it crucial Democratic support. Former President Joe Biden had previously said he supported restricting congressional stock trading but took no action during his term.
Multiple bipartisan bills targeting congressional stock trading have been introduced since 2020 but have repeatedly stalled despite public opinion polls showing overwhelming support for such restrictions.
Hawley’s new bill includes provisions for government oversight, requiring the Government Accountability Office to conduct an audit of members’ compliance with the Act after two years of implementation.
“While Wall Street and Big Tech work hand-in-hand with elected officials to enrich each other, hardworking Americans pay the price,” Hawley said. “The solution is clear: we must immediately and permanently ban all members of Congress from trading stocks.”
The Senator originally introduced similar legislation last Congress under the title “Banning Insider Trading in Congress Act,” but it failed to advance under the Biden administration.