Sen. Hawley Reintroduces ‘PELOSI Act’ To Ban Congress From Stock Trades
Missouri GOP Sen. Josh Hawley on Monday reintroduced legislation that would ban members of Congress and their spouses from trading stocks while serving in office, reports noted.
Hawley first introduced the “PELOSI Act” in 2023, but it stalled under President Joe Biden’s administration. Since then, the proposal has gained bipartisan support, and President Donald Trump recently stated he would “absolutely” sign such a ban if it reaches his desk, Fox News reported.
“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” stated Hawley (R-Mo.). “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 PELOSI Act would prohibit lawmakers and their spouses from holding, purchasing, or selling individual stocks while serving in office. However, they would still be allowed to invest in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds.
If enacted, current members of Congress would have 180 days to comply with the new rules, and newly elected lawmakers would be required to comply within 180 days of taking office.
Those who fail to comply with the PELOSI Act would be required to forfeit any stock profits to the U.S. Department of the Treasury and could face monetary penalties imposed by the House and Senate ethics committees.
“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 Digital in a statement. “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.”
Trump endorsed the ban during a Time magazine interview on Friday and specifically mentioned Rep. Nancy Pelosi (D-Calif.), the former two-time House Speaker, who has been criticized for years by Republicans for her and her husband Paul Pelosi’s spot-on stock trading that has seen their wealth soar past $240 million — on a salary of about $180,000 annually.
“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,” he said of a trading ban.
“You’ll sign it?” the reporter pressed.
“Absolutely,” Trump responded.
Democrats in the House have also come out in support of a ban, with House Minority Leader Hakeem Jeffries tossing his weight behind the legislation last week.
“Former House Speaker and Democratic Rep. Nancy Pelosi of California made a 65% profit on her stock trading portfolio in 2023, according to an analysis of House of Representatives financial disclosure records by the group Unusual Whales,” the Daily Caller reported in January.
“Pelosi and her husband Paul, a venture capitalist in San Francisco, have long been known for their jointly held stock portfolio, which has made significant profits in recent years. In 2023, the Pelosi portfolio’s profits were driven by trading options contracts — which allow the holder to purchase a stock at a lower price than its market value — and outperformed the Standard and Poor’s 500 Index of the U.S. stock market’s largest companies by a margin of 40%,” the DC added, citing Unusual Whales.
Jeff Hauser, the director of the Revolving Door Project, told the New York Post regarding the excessive profits: “It’s a sign of quasi-insider trading that’s corrupt and should be banned – it’s either an addiction to risk or a sign of corruption.”
“There are teams of people at sophisticated hedge funds that exist to find minor arbitrage opportunities to make a profit. It’s preposterous to think they are finding profit where Bridgewater or Renaissance Capital is missing it,” Hauser continued.
