- Sen. Josh Hawley, R-Mo., reintroduced the PELOSI Act, which would ban lawmakers and their spouses from trading individual stocks while in office, though they could still invest in mutual funds, ETFs and Treasury bonds.
- The bill is named after Rep. Nancy Pelosi, whose stock portfolio reportedly gained 54% in 2024, with scrutiny focused on her husband Paul Pelosi’s “particularly timely investments before key legislative actions.”
- President Trump stated he would “absolutely” sign legislation banning congressional stock trading if it reached his desk.
The days of U.S. congressmen side-hustling as day traders may be numbered.
Sen. Josh Hawley, R-Mo., reintroduced the Preventing Elected Leaders from Owning Securities and Investments (or PELOSI) Act Monday.
The act bans lawmakers and their spouses from holding, purchasing or selling individual stocks while serving in their elected roles. They may still invest in diversified mutual funds, exchange-traded funds or U.S. Treasury bonds at any time.
If passed, the law would allow current and future lawmakers 180 days to comply. If a lawmaker fails to comply with the legislation, the bill text requires them to forfeit any stock profits to the Treasury Department and “face monetary penalties imposed by the House and Senate ethics committees.”
Sen. Hawley: Americans ‘can’t believe that it’s legal already’
Upon reintroducing the bill, Hawley described conversations he’d had with Missouri residents about the bill.
“Here’s the thing that absolutely stuns them: they can’t believe that it’s legal already,” he said. “They can’t believe we can currently do it. Most members of the public think it’s already banned, and when I say, ‘Actually, it’s 100% legal,’ they say, ‘Why?’ And there’s no good answer to that question.”
He continued, “We should be here to focus on the public’s business, not private gain. We shouldn’t be here day trading, we shouldn’t be here focusing on our stock portfolios, we should be here doing what the American people sent us to do, and that is what this bill is about.”
Rep. Nancy Pelosi, D-Calif., opposes the bill, which is named after herself. CNN reported the longtime California representative said, “This is a free market, and people — we’re a free market economy — they should be able to participate in that.”
Why is the bill named after Nancy Pelosi?
In 2024, Pelosi’s stock tracker showed a “jaw-dropping 54% gain,” beating out most hedge funds and the Inverse Cramer Tracker, per the financial news site Benzinga.
Pelosi’s husband, Paul Pelosi, has worked as a venture capitalist and investor throughout his career. He founded the San Francisco-based real estate investing firm Financial Leasing Services Inc., in 1971, and Quiver Quantitative estimated in 2024 that the couple’s net worth is $230 million.
The New York Post reported in January that Paul Pelosi‘s stock trades, including “particularly timely investments before key legislative actions,” are what is drawing much of the scrutiny which has led to Hawley’s bill.
Trump says he would ‘absolutely’ sign the bill
During a Time magazine interview with President Donald Trump after his 100th day in office, a reporter asked if he would support a ban on congressional stock trading.
“Well, I watched Nancy Pelosi get rich through insider information, and I would be OK with it. If they send that to me, I would do it,” Trump said.
The reporter followed up, asking, “You’ll sign it?” and the president responded, “Absolutely.”
