The U.S. House passed a bill 232-198 to restrict stock trading by members of Congress, their spouses, and children. The GOP-led legislation bars new stock purchases but allows lawmakers to keep existing holdings. Democrats largely oppose the bill as too weak and criticize an attached voter ID provision as a "poison pill." The bill, the first of its kind to pass either chamber, now faces an uncertain path in the Senate.
House stock trading bill
- ▪The U.S. House of Representatives passed the "Stop Insider Trading Act" in a 232-198 vote
- ▪The bill increases penalties for disclosure violations to $2,000 or 10% of the transaction's value, whichever is greater
- ▪Congresswoman Mariannette Miller-Meeks, a leader on the bill, stated she owns zero individual stocks
- ▪The bill's passage is the first time a measure to restrict congressional stock trading has cleared either the House or the Senate
- ▪The legislation allows lawmakers to keep their existing stock holdings but not add to them
- ▪The bill bars members of Congress, their spouses, and dependent children from purchasing new individual stocks
- ▪Members can sell existing stocks provided they give public notice between 7 and 14 days in advance
Voter ID provision
- ▪The voter ID requirement is a key issue for President Donald Trump and is related to his proposed SAVE America Act
- ▪House Republicans attached an unrelated provision to the bill that would require voters in federal elections to show photo ID
Democratic opposition
- ▪Rep. Joseph D. Morelle called the voter ID provision a "poison pill" added by Republicans
- ▪Democrats largely opposed the bill, with only 13 voting in favor
- ▪Democratic critics, such as Rep. Seth Magaziner, called the bill "weak" and "a stock trading ban that still allows stock trading."
Senate prospects
- ▪The bill now goes to the Senate, where its prospects are considered uncertain, partly due to the voter ID provision
- ▪A stricter bill to block stock ownership passed a Senate committee last year but has since stalled
Congressional stock trading history
- ▪A 2012 law known as the STOCK Act already makes insider trading by Congress illegal but is considered weak and rarely enforced
- ▪There is broad public support for a ban on members of Congress trading stocks while in office due to insider trading concerns
Midterm election messaging
- ▪The vote is seen as a messaging win for House Republicans ahead of the midterm elections
- ▪Speaker Mike Johnson said the bill shows Republicans are delivering solutions to restore public faith in institutions
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