Senator Josh Hawley, R-Mo., has reintroduced his "PELOSI Act" on April 28, 2025, aiming to ban members of Congress and their spouses from trading stocks while in office. The legislation, which initially failed to gain traction during President Joe Biden's administration, has garnered renewed interest and bipartisan support, particularly following an endorsement from former President Donald Trump.
The PELOSI Act, officially known as the Preventing Elected Leaders from Owning Securities and Investments Act, seeks to eliminate potential conflicts of interest among lawmakers by prohibiting them from holding, purchasing, or selling individual stocks during their time in office. Instead, the bill allows investments in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds.
"Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents," Hawley stated in an interview with Fox News Digital. He emphasized that the American public has witnessed numerous politicians profiting from insider information not available to the general populace. "It’s time we ban all members of Congress from trading and holding stocks and restore Americans’ trust in our nation’s legislative body," he added.
If passed, current lawmakers would have 180 days to comply with the new regulations, while newly elected members would also need to adhere to the rules within the same timeframe. Lawmakers who violate the provisions of the PELOSI Act would be required to forfeit any profits from wrongful transactions to the U.S. Treasury Department. Additionally, the House or Senate ethics committees could impose fines amounting to 10% of each wrongful transaction.
The act is named after former House Speaker Nancy Pelosi, whose husband, Paul Pelosi, faced scrutiny over significant stock trades, particularly involving semiconductor stocks shortly before congressional action on industry subsidies. Despite the controversy, the Pelosis have denied any wrongdoing, but the incident has intensified calls for stricter regulations on financial activities by lawmakers.
Hawley's proposal is not the first of its kind; calls for reform have been building for years. Multiple bipartisan bills have been introduced since 2020 to either restrict or outright ban congressional stock trading. Polls consistently show that a large majority of Americans support such a ban, yet disagreements over the specifics of the rules and enforcement mechanisms have stalled progress.
Last week, House Minority Leader Hakeem Jeffries expressed his support for the stock trading ban, adding to the growing momentum behind Hawley’s legislation. Trump, in an interview with Time magazine, stated, "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," when asked about the proposed ban. His endorsement could provide a significant political boost to the bill, especially among Republicans who have been hesitant to take a firm stance on the issue.
While the PELOSI Act is among the strictest proposals, some alternative measures have been suggested, which would allow lawmakers to retain their existing stock holdings under blind trusts rather than forcing them to divest completely upon assuming office. However, Hawley’s approach directly targets both trading and ownership of individual stocks, aiming to close loopholes and eliminate any appearance of impropriety.
Former President Biden also expressed support for a ban on congressional stock trading, stating in a podcast interview that no one in Congress should profit from the stock market while serving in office. He remarked, "I don’t know how you look your constituents in the eye and know because of the job they gave you, you have an inside track to make more money. I think we should be changing the law."
As the PELOSI Act gains attention, it reflects a broader desire for accountability and transparency within the legislative branch. With bipartisan backing and public support, lawmakers may finally be on the brink of addressing a long-standing issue that many believe undermines the integrity of elected officials.
Hawley’s renewed push for the PELOSI Act comes at a time when the American public is increasingly skeptical of politicians profiting from their positions. The legislation aims not only to restrict stock trading among lawmakers but also to restore faith in the democratic process and ensure that elected officials prioritize their constituents over personal financial gain. As discussions continue, the future of the PELOSI Act will be closely watched by both supporters and opponents alike.
