Missouri Senator Josh Hawley reintroduced an unpopular piece of legislation which seeks to limit members’ trading of stocks during their active terms. He presented a new version of his bill on Monday, which prohibits lawmakers and their married partners from handling or possessing single stocks throughout their congressional service period.
The bill has a striking name: the PELOSI Act. Officially known as the ‘Preventing Elected Leaders from Owning Securities and Investments’ Act, the acronym directly references former House Speaker Nancy Pelosi.
“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” Senator Hawley stated in an official statement.
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“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.”
Why did Hawley name the bill after Nancy Pelosi?
Hawley’s decision to name the bill after Pelosi stems from long-running criticism from conservatives who have accused her and her husband, Paul Pelosi, of profiting off insider information during her time in office. While Pelosi has denied any wrongdoing and no evidence has proven insider trading, the name of the bill is meant to send a political message.
Under the PELOSI Act, members of Congress and their spouses must abstain from buying, selling, or holding individual stock throughout their legislative term. The PELOSI Act permits officeholders and their spouses to invest their money in mutual funds that contain various stocks, ETFs, and U.S. Treasury bonds.
Current members would have 180 days to comply, while newly elected officials would be expected to meet the same deadline after assuming office.
Notably, any profits made through wrongful transactions would have to be handed over to the U.S. Treasury. Plus, the House or Senate ethics committees could impose fines of 10% per transaction.
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President Donald Trump recently gave the proposal his full backing in an interview with Time magazine, stating, “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 to confirm if he’d sign the bill, Trump responded, “Absolutely.”
