A bipartisan group of senators has introduced new legislation aimed at banning stock trading by members of Congress and their families. The proposed bill seeks to eliminate conflicts of interest and restore public trust in federal elected officials.
Key Takeaways
- The bill was introduced by Sens. Jon Ossoff (D-Ga.), Gary Peters (D-Mich.), Jeff Merkley (D-Ore.), and Josh Hawley (R-Mo.).
- It would bar members of Congress, their spouses, and dependent children from buying and selling stocks and certain other investments by 2027.
- Violators would face fines equivalent to their monthly salary or 10% of the value of each improper investment.
- The Homeland Security and Governmental Affairs Committee will vote on advancing the legislation on July 24.
- The bill allows investments in mutual funds and exchange-traded funds (ETFs).
Background and Motivation
The legislation aims to address growing concerns about conflicts of interest among federal elected officials. Currently, lawmakers are prohibited from using confidential information for investments and must publicly disclose their stock transactions. However, the penalties for violations are minimal, often amounting to just $200.
Previous Attempts and Challenges
Previous efforts to ban or restrict stock trading by Congress members have failed. In 2022, then-House Speaker Nancy Pelosi declined to bring similar legislation to a vote, citing insufficient support. Pelosi herself opposed the measure, arguing that members of Congress should be able to participate in the free market.
Enforcement and Penalties
Under the new bill, members of Congress would face significant penalties for violations. The fines would be either their monthly salary or 10% of the value of the improper investment, whichever is higher. This is a substantial increase from the current $200 penalty.
Support and Opposition
The bill has garnered bipartisan support, but it may face hurdles in the Senate, where it needs 60 votes to overcome a potential filibuster. Sen. Josh Hawley expressed confidence that many Republicans would support the measure, as it was a campaign promise for several of them.
Next Steps
The Homeland Security and Governmental Affairs Committee will vote on July 24 to advance the legislation to the Senate floor. Senate Majority Leader Charles E. Schumer is expected to bring the measure for a vote in the coming months. The Republican-controlled House has also shown potential interest in the bill.
Conclusion
The proposed legislation represents a significant step toward eliminating conflicts of interest and restoring public trust in federal elected officials. While it faces challenges, the bipartisan support it has received is a promising sign for its future.