Hawley's PELOSI Act Targets Congressional Stock Trading

A Bold Move to Restore Trust

Senator Josh Hawley has taken a firm stand against what many see as a troubling practice in Washington: members of Congress trading stocks while in office. On April 29, he reintroduced the Preventing Elected Leaders from Owning Securities and Investments Act, known as the PELOSI Act, aiming to prohibit lawmakers and their spouses from holding or trading individual stocks during their time in office. The legislation, named with a nod to Rep Nancy Pelosi, reflects growing public frustration with politicians profiting from information not available to everyday Americans.

Details of the Legislation

The PELOSI Act is straightforward in its approach. It would ban members of Congress and their spouses from purchasing, selling, or holding individual stocks, though investments in mutual funds, exchange-traded funds, and Treasury bonds would still be allowed. Lawmakers would have 180 days after the bill’s passage to comply, either by divesting their holdings or placing them in a blind trust. Those who fail to follow the rules would face steep penalties, including forfeiting any profits to the U.S. Treasury and potential fines from congressional ethics committees.

Hawley emphasized the need for accountability, saying, 'Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents.' The bill also mandates an audit by the Government Accountability Office two years after enactment to ensure compliance, with results reported to Congress.

Why Now?

The timing of Hawley’s push is no coincidence. President Trump recently voiced strong support for such a ban, stating he would 'absolutely' sign the legislation if it reached his desk. This endorsement has given new momentum to the effort, which Hawley first introduced in 2023 without success under the previous administration. Public sentiment is also firmly behind the measure, with polls showing over 80% of Americans favor banning congressional stock trading.

The issue has long been a sore point, particularly after high-profile cases like that of Nancy Pelosi’s husband, Paul Pelosi, who made millions in stock trades that raised questions about insider knowledge. Hawley’s bill directly addresses these concerns, aiming to close loopholes that allow lawmakers to benefit from their positions.

Bipartisan Support and Challenges

While the PELOSI Act has garnered attention, it’s not the only effort to curb congressional stock trading. Bipartisan proposals, like the ETHICS Act introduced by Senators Jeff Merkley, Gary Peters, Jon Ossoff, and Hawley himself in 2024, have also pushed for similar reforms. That bill passed a Senate committee last year, signaling growing cross-party support. However, getting legislation through both chambers of Congress has proven difficult in the past, with previous attempts stalling despite public pressure.

Hawley remains undeterred, arguing, 'Americans have seen politician after politician turn a profit using information not available to the general public.' He believes the PELOSI Act’s clear rules and tough penalties will resonate with voters tired of Washington’s perceived self-dealing.

Looking Ahead

The reintroduction of the PELOSI Act comes at a pivotal moment, with President Trump’s backing and a public increasingly vocal about government accountability. If passed, the legislation could reshape how lawmakers handle their finances, forcing them to prioritize public service over personal gain. For now, Hawley’s bill is a call to action, challenging Congress to rebuild trust with the American people by ending a practice many view as corrupt.