Republican Senator Josh Hawley of Missouri has put forward legislation aimed at curtailing stock trading by members of Congress and their immediate family members. The proposed bill, known as the “Preventing Elected Leaders from Owning Securities and Investments” (PELOSI) Act, represents Hawley’s second attempt to pass such restrictions after an unsuccessful effort in 2023.
The legislation’s namesake refers to former House Speaker Nancy Pelosi, whose personal wealth has experienced substantial growth during her congressional tenure. Records indicate Pelosi’s net worth has increased from approximately $160,000 when she first entered Congress in 1987 to over $140 million by 2024. Her husband Paul Pelosi, who survived a violent home invasion in 2022, has garnered attention for his successful stock market investments, which have faced scrutiny over potential access to privileged information.
The proposed legislation has gained bipartisan support in Congress, and former President Donald Trump, now back in office, has expressed his willingness to sign such a measure if it reaches his desk. According to Fox News reports, Trump stated he would “absolutely” support the trading ban.
Under the PELOSI Act’s provisions, congressional representatives and their spouses would be barred from engaging in stock trading activities while serving in office. The legislation does maintain allowances for investments in certain financial instruments, including U.S. Treasury Bonds and diversified investment vehicles such as mutual funds and exchange-traded funds.
Implementation of the act would require current Congress members to achieve compliance within a 180-day timeframe. The same grace period would apply to newly elected officials following their assumption of office. Violations of these regulations would result in mandatory forfeiture of trading profits to the U.S. Treasury Department, with additional penalties of up to 10% of the transaction value.
Senator Hawley has consistently voiced concerns about legislators prioritizing financial trading over their congressional duties. “Americans have seen politician after politician turn a profit using information not available to the general public,” Hawley stated while introducing the legislation. “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 push for this legislation comes amid growing public concern over potential conflicts of interest in Congress, where lawmakers often have access to sensitive information that could influence market movements. The bill aims to address these concerns by establishing clear boundaries between public service and personal financial activities.
The legislation represents a significant step toward addressing perceived conflicts of interest in Congress and responds to
longstanding criticisms about elected officials potentially benefiting from their positions through stock market activities. The bipartisan support for the measure suggests growing recognition across political lines that stricter controls on congressional trading activities may be necessary to maintain public trust in the legislative process.
Should the bill become law, it would mark a substantial change in how members of Congress manage their personal investments while serving in office, potentially affecting the financial practices of numerous current and future legislators. The proposed penalties and compliance requirements demonstrate an effort to create meaningful enforcement mechanisms for these new restrictions.