A bipartisan group of senators, including Jon Ossoff (D-Ga.), Gary Peters (D-Mich.), Jeff Merkley (D-Ore.), and Josh Hawley (R-Mo.), have introduced new legislation that would impose strict penalties on members of Congress and their families for trading stocks. The bill would prohibit lawmakers from buying and selling stocks and certain other investments, as well as require divestment from certain investments by 2027.
Under the proposed legislation, lawmakers who violate the rules would face fines equivalent to their monthly salary or 10 percent of the value of each improper investment. The bill is set to be voted on by the Homeland Security and Governmental Affairs Committee on July 24, with hopes of advancing to the Senate floor.
The push for stricter regulations on congressional stock trading comes after previous attempts to ban or restrict such activities failed. Lawmakers are currently prohibited from using confidential information for investments, but the penalties for violations are minimal compared to their salaries.
Despite past opposition to similar measures, there is growing bipartisan support for the new legislation. Senate Majority Leader Charles E. Schumer (D-N.Y.) and Republican leadership in the House have shown interest in a stock-trading ban. However, the bill may face challenges in the Senate, where it would need 60 votes to overcome a potential filibuster.
Lawmakers who have been scrutinized for their stock trades in recent years have largely escaped significant consequences. The proposed legislation aims to hold members of Congress more accountable for their financial decisions and ensure that they are acting in the best interest of the American public.
