Members of Congress and their families could soon face strict penalties for trading stocks, as a bipartisan group of senators introduced new legislation on Wednesday. The bill, spearheaded by Sens. Jon Ossoff, Gary Peters, Jeff Merkley, and Josh Hawley, aims to prohibit lawmakers from buying and selling stocks and certain other investments by 2027. Additionally, members of Congress, the president, and vice president would be required to divest from certain investments by the same deadline.
Under the proposed legislation, lawmakers who violate the new rules would face fines equivalent to their monthly salary or 10 percent of the value of each improper investment. The Homeland Security and Governmental Affairs Committee is set to vote on advancing the bill to the Senate floor on July 24, according to committee chair Peters.
The motivation behind the bill is to ensure that federal elected officials prioritize the best interests of the American public over personal financial gains. Currently, lawmakers are prohibited from using confidential information for investments, but the penalties for violations are minimal compared to their salaries.
Despite previous failed attempts to restrict congressional stock trading, the sponsors of the new legislation are optimistic about its prospects. Senate Majority Leader Charles Schumer and House leadership have shown interest in the bill, but it may face challenges in the Senate, where it would require 60 votes to overcome a potential filibuster.
Overall, the proposed legislation seeks to address conflicts of interest and restore public trust in elected officials’ decision-making processes. With support from both Democrats and Republicans, the bill could mark a significant step towards greater accountability and transparency in Congress.
