Senator Josh Hawley reintroduces bill to bar lawmakers and spouses from stock trading
Senator Josh Hawley of Missouri has reintroduced legislation aimed at banning members of Congress and their spouses from trading individual stocks during their time in office. The bill, titled the PELOSI Act, seeks to address growing public concerns over conflicts of interest and the use of non-public information for personal financial gain.
Officially known as the Preventing Elected Leaders from Owning Securities and Investments Act, the legislation is designed to improve accountability and public trust in Congress. If enacted, it would prohibit elected officials and their spouses from buying, selling, or holding individual stocks throughout their term.
“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” Hawley said in a statement on Monday.
A rare moment of bipartisan alignment?
Despite its politically charged name, the PELOSI Act may represent a rare area of bipartisan agreement. The proposal touches on a long-standing issue that has frustrated constituents across party lines: the perception that lawmakers use privileged information to benefit financially.
“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,” Hawley added.
Why is the bill named after Nancy Pelosi?
The name of the bill is a pointed reference to former House Speaker Nancy Pelosi. Hawley and other conservatives have frequently accused Pelosi and her husband, Paul Pelosi, of benefitting from insider knowledge during her tenure—allegations Pelosi has consistently denied. No official evidence of wrongdoing has been found.
Still, Hawley’s use of her name appears to be a calculated political move, underscoring the broader critique of congressional stock activity.
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Compliance, penalties, and investment alternatives
Under the proposed legislation, lawmakers and their spouses would have 180 days from either the bill’s enactment or their swearing-in date to divest from individual stock holdings. While direct trading of stocks would be prohibited, officeholders would still be permitted to invest in diversified mutual funds, exchange-traded funds (ETFs), and U.S. Treasury bonds.
In cases of non-compliance, lawmakers would be required to forfeit any profits derived from prohibited trades to the U.S. Treasury. Additionally, the House or Senate ethics committees would be authorized to impose financial penalties of up to 10% per transaction.
Trump voices support for the bill
President Donald Trump has endorsed the PELOSI Act, saying he would sign it into law if it reaches 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 said in a recent interview with Time magazine. When asked directly whether he would sign the bill, he responded, “Absolutely.”