Senator Hawley Reintroduces ‘PELOSI Act’ to Prohibit Stock Trades by Lawmakers

On Monday, Republican Senator Josh Hawley of Missouri brought back legislation aimed at banning members of Congress and their spouses from trading individual stocks during their time in office, according to multiple reports.

Hawley originally put forward the “PELOSI Act” in 2023, but the measure failed to advance during the Biden administration. Since then, momentum has grown across party lines, with former President Donald Trump recently pledging his support. “Absolutely,” Trump said when asked by Time magazine if he would sign the bill should it reach his desk, Fox News reported.

“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” said Hawley (R-Mo.). “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.”

Under the proposed legislation, congressional members and their spouses would be barred from buying, selling, or owning individual stocks while in office. However, they would still be allowed to invest in broadly diversified assets like mutual funds, ETFs, or U.S. Treasury bonds.

Should the bill pass, current lawmakers would have 180 days to adhere to the new rules, while newly elected officials would have the same amount of time to comply after taking office.

Noncompliance would result in lawmakers surrendering any earnings from stock trades to the U.S. Treasury, and they could also be subject to financial penalties by their respective ethics committees in the House or Senate.

“Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents,” Hawley reiterated to Fox News Digital. “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.”

During his interview with Time, Trump specifically called out Rep. Nancy Pelosi (D-Calif.), the former Speaker of the House, who has faced Republican scrutiny over her and her husband Paul Pelosi’s stock trading activity. The couple’s financial success — reportedly exceeding $240 million — has raised eyebrows, particularly given her congressional salary of roughly $180,000.

“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,” Trump said regarding a trading ban.

“You’ll sign it?” the interviewer asked.

“Absolutely,” Trump replied.

Support for the proposal has also emerged from the Democratic side. House Minority Leader Hakeem Jeffries voiced his backing for such a ban last week.

An analysis conducted by Unusual Whales and cited by the Daily Caller in January noted that Pelosi achieved a 65% return on her stock trades in 2023, based on financial disclosures filed with the House.

According to the report, Paul and Nancy Pelosi have long maintained a highly lucrative stock portfolio. In 2023, much of their profit reportedly came from trading options contracts, which grant the right to purchase stocks below market value. Their performance surpassed the S&P 500 Index by about 40%, according to Unusual Whales.

Jeff Hauser, who heads the Revolving Door Project, criticized the apparent financial advantages in a statement to the New York Post. “It’s a sign of quasi-insider trading that’s corrupt and should be banned – it’s either an addiction to risk or a sign of corruption,” he said.

“There are teams of people at sophisticated hedge funds that exist to find minor arbitrage opportunities to make a profit. It’s preposterous to think they are finding profit where Bridgewater or Renaissance Capital is missing it,” Hauser added.