Senator Hawley reintroduced the PELOSI Act to prohibit members of Congress from buying and selling stocks

Senator Josh Hawley pushed a bill that would prohibit members of Congress from trading stocks. The Missouri Republican dubbed the legislation the Preventing the Ownership of Securities and Investments by Elected Leaders Act (PELOSI). President Donald Trump has already advanced that he would enact it should it reach his desk.

Hawley, who was re-elected in November 2024, chose this acronym in homage to Congresswoman Nancy Pelosi, a regular stock buyer. In turn, her husband, Paul Pelosi, also has come under scrutiny for his stock trading.

"Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents," the senator said in a statement released by his office.

"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," he added.

The bill was previously introduced under Democratic leadership and, despite broad public support, failed to advance to a vote on the floor of either chamber. Indeed, according to a poll by the University of Maryland School of Public Policy's Public Consultation Program (PPC), 86% of Americans support this bill.

How would the Pelosi Act work?

If passed, the PELOSI Act would prohibit lawmakers and their spouses from owning, buying, or selling individual stocks during their term of office. In turn, current lawmakers would have 180 days to comply, while new members of Congress would be able to do so within 180 days of taking office.

"Members who refuse to comply with the PELOSI Act must forfeit any stock profits to the U.S. Department of the Treasury and face monetary penalties imposed by the House and Senate ethics committees," explained Hawley's office.

Hawley's bill would allow investment in broader financial instruments, such as mutual funds, ETFs, and Treasury bonds.

According to research by The New York Times in 2022, at least 97 members of Congress reported stock trades with some connection to their respective committee work.

"U.S. lawmakers are not banned from investing in any company, including those that could be affected by their decisions. But the trading patterns uncovered by the Times analysis underscore longstanding concerns about the potential for conflicts of interest or use of inside information by members of Congress, government ethics experts say," the Times noted.

"When contacted, many of the lawmakers said the trades they reported had been carried out independently by a spouse or a broker with no input from them. Some have since sold all their stocks or moved them into blind trusts. Two said the trades were accidental," they added.