A new bipartisan initiative, the Restore Trust in Congress Act, aims to impose strict limits on stock trading by members of the United States Congress and their families. Introduced in the House of Representatives, the bill responds to concerns about lawmakers profiting from insider information while crafting legislation.
Co-sponsor Rep. Seth Magaziner, a Democrat from Rhode Island, emphasized the ethical implications of the current system. “When members of Congress are voting on bills, we should be voting based on what we think is the best for the American people, not on what is best for an investment account,” he stated.
A diverse coalition supports the measure, uniting members from both ends of the political spectrum, including Rep. Alexandria Ocasio-Cortez of New York and Rep. Chip Roy of Texas. Roy remarked, “It’s far past time to ban Members of Congress from day trading stocks, and for the first time, a bipartisan coalition is standing together behind a united proposal to do just that.”
The proposed legislation would prohibit members of Congress, as well as their spouses, dependent children, and trustees, from owning or trading individual stocks, securities, commodities, and futures. Current stockholders within Congress would have 180 days to divest from their individual holdings, while new members would face a 90-day deadline upon taking office.
Peter Schweizer, president of the Government Accountability Institute and author of Throw Them All Out, expressed optimism about the bill. He explained, “What I’m excited about with this new piece of legislation is it creates a very clear line: you cannot trade inside information, you cannot trade individual stocks. You cannot trade stock options. You can only own large mutual funds.”
This initiative follows past efforts to regulate congressional trading, such as the Stop Trading on Congressional Knowledge Act (STOCK Act) enacted in 2012. Though this law aimed to prevent insider trading, its effectiveness was undermined by subsequent bipartisan amendments that weakened its provisions. Schweizer pointed out that while President Barack Obama initially championed the STOCK Act, its integrity was compromised soon after its passage.
Despite the growing support for the Restore Trust in Congress Act, there is no current indication that the bill will be brought to a vote. Nevertheless, Speaker of the House Mike Johnson has previously expressed support for banning insider trading by lawmakers. Additionally, former President Donald Trump has indicated his backing for similar reforms.
Public sentiment also appears to be on the side of reform. A 2023 survey conducted by the University of Maryland’s School of Public Policy revealed that 86% of Americans support banning stock trading for Congress members and their families. This includes 86% of Republicans, 87% of Democrats, and 81% of independents.
Ocasio-Cortez noted the growing momentum for the bill, stating, “The information we have access to as members of Congress should only be used to serve our constituents, not ourselves.”
As discussions around the bill continue, the push for greater accountability in Congress remains a focal point in American politics, highlighting the ongoing debate over ethics and transparency in governance.
