In a significant move towards increasing transparency and reducing conflicts of interest in Congress, a bipartisan group of senators has reached an agreement to advance legislation that would ban lawmakers from trading stocks. Spearheaded by Senators Gary Peters (D-MI), Jeff Merkley (D-OR), Josh Hawley (R-MO), and Jon Ossoff (D-GA), this historic bill seeks to restore public trust in government by ensuring that members of Congress prioritize their constituents over personal financial gain.
The legislation, known as the ETHICS Act, aims to prohibit members of Congress, their spouses, and dependent children from holding, buying, or selling individual stocks and other covered investments. The bill also mandates that elected officials, including the President and Vice President, divest from such assets by 2027. Violations of the act would incur substantial penalties, potentially equating to the value of the violator's monthly salary or 10% of the asset's value, whichever is greater.
BIG NEWS: In a historic step, Sen. Ossoff’s bipartisan bill to ban stock trading by Members of Congress just passed a key U.S. Senate committee — the first-time a Senate Committee has advanced a Congressional Stock Trading Ban. pic.twitter.com/Ao2rrzRl6G
— Ossoff's Office (@SenOssoff) July 24, 2024
This effort follows mounting public and bipartisan support for tighter regulations on congressional stock trading. In recent years, numerous instances of lawmakers profiting from non-public information have eroded trust in the government. The ETHICS Act intends to address these ethical concerns by expanding the STOCK Act's requirements and increasing penalties for non-compliance from $200 to $500.
Senator Peters, who chairs the Homeland Security and Governmental Affairs Committee, expressed his commitment to advancing the bill through his committee. He emphasized that the legislation is crucial for rebuilding trust in government and ensuring that public officials serve the people rather than their portfolios . Senator Merkley, the lead sponsor of the ETHICS Act, reinforced the need for this legislation, stating, "Members of Congress are elected to serve the public—not their stock portfolios".
Members of Congress should be focusing on the American people's business—not trading stocks for their private gain
The Homeland Security Committee got it right today by passing my bill to BAN Congress from stock trading
Now send it to the Senate Floor! pic.twitter.com/o7lwzMkn1b
— Josh Hawley (@HawleyMO) July 24, 2024
The proposal has garnered widespread support from various organizations, including Public Citizen, the Project on Government Oversight, and Citizens for Responsibility and Ethics in Washington. These groups argue that banning stock trading among lawmakers is a necessary step to curb potential abuses of power and restore public confidence in democratic institutions.
Senator Hawley, who previously introduced the PELOSI Act with similar objectives, highlighted the need to prevent members of Congress from exploiting their positions for financial gain. He noted that the bipartisan agreement on the ETHICS Act represents a significant step forward in achieving this goal.
While the bill has made substantial progress, it still faces challenges in securing a vote on the Senate floor. Nevertheless, the bipartisan support and public backing for this legislation signal a strong possibility for its eventual passage.
The introduction of the ETHICS Act marks a pivotal moment in congressional efforts to enhance transparency and accountability. As lawmakers continue to negotiate the finer details, the bill's advancement reflects a shared commitment across party lines to prioritize the public interest over personal profit.
