Hawley Revives PELOSI Act to Ban Congressional Stock Trading -Trump Backs the Move

What Happened

Senator Josh Hawley (R-MO) has reintroduced the PELOSI Act, a bill aimed at banning members of Congress and their spouses from trading individual stocks. Officially titled the Preventing Elected Leaders from Owning Securities and Investments Act, it would force lawmakers to divest from individual holdings or face fines. Hawley's move comes as public frustration over congressional insider trading accusations continues to grow.

The bill would still allow elected officials to invest in diversified assets such as mutual funds, exchange-traded funds (ETFs), and U.S. Treasury bonds. However, it would strictly bar them from picking and choosing individual stocks while they hold office.

All elected officials who currently hold stocks would have six months to sell off their investments. Failure to comply would result in financial penalties equal to the value of the prohibited investments in question.

President Trump has publicly voiced his support for the bill, stating that he would 'absolutely' sign it into law. Hawley’s efforts follow a series of reports showing that lawmakers from both parties have made profitable stock trades while in office. These revelations have raised concerns about conflicts of interest.

Why It Matters

The PELOSI Act represents a longstanding issue of trust between voters and their elected officials. Surveys consistently show that the public overwhelmingly disapproves of members of Congress trading stocks while shaping laws that could impact companies' fortunes. For example, a 2022 Trafalgar Group poll found that 76% of voters believed Congress shouldn’t be allowed to trade stocks while in office.

The Act's nickname references former House Speaker Nancy Pelosi. Her husband, Paul Pelosi, is quite a prolific trader. As a matter of fact, the Pelosi's outperformed nearly every hedge fund in 2024 while posting a 54% gain for the year.

The Act's nickname emphasizes how widespread the perception of the conflict has become. Although Pelosi herself has defended the legality of congressional trading under current disclosure rules, critics argue that disclosing trades after the fact doesn’t prevent corruption.

Previous attempts to pass similar legislation, including bipartisan proposals, have stalled. Hawley's new push, coupled with Trump's endorsement, signals that momentum may be shifting. This is especially as distrust of Washington continues to rise among voters across the political spectrum.

How It Affects Readers

Should the PELOSI Act become law, it would directly change how members of Congress can invest their money. Ideally, it would reduce the possibility that public policy is influenced by private financial gain.

For everyday Americans, it means a potential step toward rebuilding trust in government. Fewer financial conflicts could lead to lawmakers making decisions based more on the public good as opposed to personal profit. It could also deter lawmakers from quietly using insider knowledge to gain an edge in the markets.

However, passage is far from guaranteed. While public support is strong, members of Congress would be voting against their own financial interests. That has historically made similar reforms difficult to achieve.

Whether the bill passes or not, the conversation around it will likely influence a broader range of debates regarding ethics, transparency, and accountability in Washington.