A House Republican from Missouri takes the lead in a bipartisan push to restrict stock market activities among members of Congress and their spouses.
According to Fox News, Rep. Mark Alford plans to introduce legislation mirroring Sen. Josh Hawley's "PELOSI Act" that would prohibit lawmakers and their spouses from trading individual stocks while serving in Congress.
The proposed legislation allows a 180-day grace period for current and newly elected lawmakers to comply with the restrictions. While individual stock trading would be banned, the bill permits investments in diversified mutual funds, exchange-traded funds, and U.S. Treasury bonds.
House Speaker Mike Johnson has endorsed the trading ban initiative, emphasizing the need to restore public trust in Congress. The Republican leader acknowledged that "a few bad actors" have damaged Americans' confidence in their elected officials regarding stock trading activities.
President Donald Trump has also thrown his support behind the proposed legislation. During a recent interview with Time magazine, Trump expressed his willingness to sign such a ban if it reaches his desk, specifically referencing Nancy Pelosi's trading activities.
Democratic leadership has joined the chorus of supporters, with House Minority Leader Hakeem Jeffries backing the proposal last week. This cross-party consensus signals growing momentum for reform in congressional trading practices.
Under Alford's bill, lawmakers who violate the trading restrictions would face significant penalties. Any profits from prohibited transactions must be surrendered to the U.S. Treasury Department.
The House and Senate ethics committees would have the authority to impose additional fines on violators. These penalties could amount to 10% of each wrongful transaction's value.
Rep. Alford explained the rationale behind the strict measures in a statement:
As public servants, we should hold ourselves to a higher standard and avoid the mere appearance of corruption. Unfortunately, too many members of Congress are engaging in suspicious stock trades based on non-public information to enrich themselves. These gross violations of the public trust make clear: we must finally take action to ban members and their spouses from owning or selling individual stocks.
The legislation maintains several investment avenues for lawmakers to manage their portfolios while serving in Congress. These options are designed to minimize potential conflicts of interest.
Representatives can still invest in diversified financial instruments that reduce the risk of insider trading. The allowed investments include mutual funds, exchange-traded funds, and government securities.
This approach aims to balance the need for ethical governance with lawmakers' ability to participate in financial markets through broader, less controversial investment vehicles.
Rep. Mark Alford's House bill represents a significant step toward implementing comprehensive stock trading restrictions for members of Congress. The Missouri Republican's legislation builds upon Senator Hawley's Senate version while garnering support from major political parties. The proposed reforms would fundamentally change how elected officials manage their investments during their tenure in Congress. With backing from House leadership, the president, and opposition party figures, the bill stands as a notable attempt to address public concerns about potential conflicts of interest in congressional stock trading.
