Senate Committee Moves Forward with Stock Trading Ban

On Wednesday, the Senate Homeland Security and Government Affairs Committee advanced a significant piece of legislation aimed at prohibiting stock trading by members of Congress and their spouses. The bill, known as the Honest Act, was sponsored by Sen. Josh Hawley, R-Mo., and received support from committee Democrats. This legislative move marks a critical step toward addressing concerns about potential conflicts of interest among lawmakers.

Key Differences Between the Honest Act and Previous Proposals

The Honest Act builds upon earlier proposals, such as the “PELOSI Act,” by extending the stock trading ban to include the president and vice president. However, this provision will only take effect after President Donald Trump and Vice President JD Vance leave office. This expansion aims to close loopholes that previously allowed top executive officials to engage in stock trading while in office.

White House Reaction and Hawley’s Response

Media reports suggested that the White House opposed the inclusion of the president and vice president in the ban. However, Sen. Hawley refuted these claims in an interview with Fox News Digital, stating he had not received any pushback from the administration or President Trump. Despite being the sole Republican on the committee to support the bill, Hawley faced criticism from his party colleagues for negotiating with Democrats without their knowledge.

Trump’s Stance on the Legislation

During a press conference on Wednesday, President Trump expressed conceptual support for a congressional stock trading ban but stopped short of endorsing the Honest Act outright. He criticized former Speaker Nancy Pelosi for allegedly profiting from insider information, highlighting his broader concerns about financial ethics in Congress.

Republican Division and Legislative Challenges

The markup process revealed divisions within the Republican Party regarding the stock trading ban. Sen. Bernie Moreno, R-Ohio, expressed confusion over the bill’s details, while Sen. Rick Scott, R-Fla., questioned why making money had become controversial. Hawley defended his position, arguing that banning stock trading is essential to maintaining public trust.

Implications for Lawmakers and Future Compliance

If enacted, current lawmakers would have 180 days to comply with the new regulations, while newly elected officials must adhere within 180 days of taking office. The legislation permits investments in diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds but restricts direct stock trades. The executive office provisions will not apply until after Trump’s term concludes.