House Republican Introduces Bill to Prohibit Stock Trading by Members of Congress
A new bill is being introduced by a prominent House Republican to prohibit members of Congress, as well as their spouses and dependent children, from engaging in stock trading. The proposed legislation aims to address ethical concerns surrounding lawmakers' investment activities. According to a draft copy of the bill reviewed by FOX Business, it would impose restrictions on the purchase of stocks or similar securities by lawmakers and their family members during their tenure in Congress. Additionally, the bill would mandate public disclosure of any stock sales covered by the law, with specific details such as the number of shares and the anticipated sale date.
House Administration Committee Chairman Bryan Steil, R-Wisconsin, is spearheading the introduction of this legislation. Violations of the stock trading restrictions outlined in the bill, whether committed directly by lawmakers or indirectly through their spouses or dependents, would result in penalties. Offenders would be required to pay a fee, equivalent to $2,000 or 10% of the transaction value, whichever is greater, along with any net gains realized. The bill also prohibits lawmakers from using their office's budget or campaign contributions to cover these fees.
If a member of Congress fails to pay the imposed fee following a violation of the stock trading ban, the House or Senate ethics office could refer the individual to the Department of Justice, especially if the lawmaker retires before settling the fine. The bill stipulates that the restrictions on stock trading by lawmakers would come into effect 180 days after the bill is enacted. The House Administration Committee is scheduled to conduct a markup hearing for Steil's bill on Wednesday, as per a source familiar with the situation.
In recent years, several proposals to prohibit stock trading by members of Congress have been introduced, but none have been enacted into law. The introduction of this new bill underscores ongoing efforts to enhance transparency and ethical standards within the legislative branch.