House Republicans have introduced legislation, modeled on Senator Josh Hawley’s “Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act,” that would bar Members of Congress—and their spouses—from trading individual stocks. Championed by Rep. Mark Alford (R-MO), the proposal would prohibit stock ownership or trading in any single publicly traded company, while preserving investments in diversified vehicles like mutual funds, ETFs, and U.S. Treasuries. The bipartisan effort—supported even by Speaker Mike Johnson and Minority Leader Hakeem Jeffries—aims to eliminate real or perceived conflicts of interest, impose civil and ethics-committee penalties for violations, and restore public confidence in Congress. A similar bill in the Senate, led by Sen. Hawley (R-MO) and co-sponsored by Democrats including Sen. Ed Markey (D-MA), awaits floor action. Former Speaker Nancy Pelosi, whose family’s substantial stock portfolio sparked the push, finds her name attached to what may become her most controversial legacy.
1. Nancy Pelosi’s Tenure and Controversial Legacy
1.1 Historic Speakership
Nancy Pelosi made history as the first female Speaker of the U.S. House of Representatives, serving two nonconsecutive terms (2007–2011 and 2019–2023). Under her leadership, Congress passed landmark measures such as the Affordable Care Act and major infrastructure bills. Her skill at party discipline enabled narrow Democratic majorities to hold together on pivotal votes, cementing her reputation as one of the most consequential Speakers in modern history.
1.2 Stock Holdings Under Scrutiny
Despite her legislative accomplishments, Pelosi has faced scrutiny over stock trades made by her husband, Paul Pelosi, through which the Pelosis’ family wealth grew substantially over decades. Critics argue these transactions created an appearance—if not the reality—of profiting from nonpublic information. In response, lawmakers from both parties moved to ban all individual-stock trading by elected officials.
2. Origins of the “PELOSI Act”
2.1 Senator Hawley’s Senate Version
In April 2024, Sen. Josh Hawley (R-MO) introduced S. 2809, the “Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act,” in the Senate. It would bar Senators and their spouses from holding, purchasing, or selling individual equities while in office, though they may continue investing in broad-based mutual funds, exchange-traded funds (ETFs), and U.S. Treasury securities. Hawley argued the measure was necessary to “restore Americans’ trust” after repeated headlines about lawmakers making lucrative trades on insider knowledge.
2.2 Bipartisan Senate Support
Despite its name, the PELOSI Act garnered bipartisan support. Among original co-sponsors were Sen. Ed Markey (D-MA) and Sen. Mike Braun (R-IN). Democrats and Republicans alike recognized that public faith in Congress had eroded amid revelations that members had profited during critical events—most notably, stock sales by lawmakers shortly before the COVID-19 market crash in early 2020.
3. Rep. Mark Alford’s House Version
3.1 Introduction of the Bill
On Wednesday, Rep. Mark Alford (R-MO) unveiled H.R. 8123, the House companion to the Senate’s PELOSI Act. In a press release, Alford stated, “As public servants, we should hold ourselves to a higher standard and avoid the mere appearance of corruption”. He noted that “too many members of Congress are engaging in suspicious stock trades to enrich themselves,” and urged swift action to bar Members and their spouses from owning or trading individual company shares.
3.2 Key Provisions
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Ban on Individual Stocks: Prohibits Members of Congress—and their spouses—from purchasing, holding, or selling individual stocks during their terms.
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Permitted Investments: Allows continued investment in broad-based mutual funds, ETFs, and U.S. Treasury bonds.
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Compliance Timeline: Current Members receive 180 days to divest prohibited holdings; newly elected Members have 180 days from swearing-in to comply.
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Penalties: Violators must forfeit illicit gains to the U.S. Treasury and face monetary penalties levied by House and Senate ethics committees.
4. High-Level Endorsements and Reactions
4.1 House Leadership Support
House Speaker Mike Johnson (R-LA) publicly backed the measure, emphasizing the need to avoid “any appearance of impropriety.” He noted that while most lawmakers act honorably, a few “bad actors” have tarnished the institution’s reputation.
4.2 Presidential Statement
In a recent interview with Time magazine, former President Donald Trump—who is not in office but whose signature would be required if Democratic leadership advances a final bill—expressed willingness to sign the legislation. “I watched Nancy Pelosi get rich through insider information, and I would be okay with it. If they send that to me, I would do it,” he stated. When asked if he would sign such a bill, Trump replied simply, “Absolutely”.
4.3 Democratic Co-sponsors and Supporters
Several prominent Democrats have also endorsed stock-trading restrictions:
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House Minority Leader Hakeem Jeffries (D-NY) publicly supported barring Members and spouses from trading individual stocks, though he stopped short of explicitly using the “PELOSI Act” label.
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Rep. Ro Khanna (D-CA) has long advocated for stricter ethics rules in Congress, lamenting that Senators profited from pandemic-related market moves while ordinary Americans suffered.
5. Rationale and Public Confidence
5.1 Avoiding Conflicts of Interest
Prohibiting individual-stock trading removes any incentive—real or perceived—for legislators to use nonpublic information to benefit personal portfolios. As Sen. Hawley asserted, “Members of Congress should be fighting for the people they were elected to serve—not day trading at the expense of their constituents”.
5.2 Restoring Trust in Government
Polling data indicates that a significant majority of Americans believe Members of Congress routinely exploit insider knowledge for financial gain. A recent survey found that nearly 70% of respondents support a complete ban on stock trading by elected officials and their immediate families. Enacting the PELOSI Act may thus represent a rare bipartisan reform capable of boosting public faith.
6. Enforcement Mechanisms
6.1 Ethics Committee Oversight
Both House and Senate ethics committees would oversee implementation. They would have authority to investigate reported violations, assess penalties, and refer criminal matters to the Department of Justice if willful misconduct is uncovered.
6.2 Treasury Forfeiture and Fines
Any profits realized from prohibited trades must be forfeited to the U.S. Treasury within 30 days of the ethics committee’s final determination. Additionally, Members face civil fines up to $50,000 per violation—adjusted annually for inflation.
6.3 Transparency and Disclosure
To facilitate enforcement, the bills require rapid public disclosure of all pre-existing stock holdings, divestitures, and conversions into permitted investments. These filings would be posted online within two business days, ensuring real-time public scrutiny.
7. Criticisms and Legal Challenges
7.1 Free-Speech and Property Rights Concerns
Some constitutional scholars warn the PELOSI Act could trigger First Amendment challenges, arguing that trading in lawful securities constitutes protected “property and liberty” interests. Opponents may contend a blanket ban is overly broad and infringes on Members’ rights to earn a living and manage personal finances.
7.2 Potential Loopholes
Critics note that permitting indirect investments in ETFs and mutual funds could still allow legislators to profit from sector-specific market movements. For instance, a Senator interested in energy policy could shift holdings into energy-focused ETFs, thereby sidestepping the individual-stock ban.
8. Legislative Outlook
8.1 Committee Consideration
H.R. 8123 has been referred to the House Committee on Ethics and the Committee on Financial Services. Mark Alford anticipates markup hearings in late summer, aiming for a floor vote before the August recess.
8.2 Senate Prospects
Sen. Hawley’s S. 2809 awaits scheduling in the Senate Rules Committee. With bipartisan support secured, backers hope to attach it as an amendment to broader ethics or government-reform packages in the fall.
8.3 Potential for Enactment
Given widespread public backing, high-profile sponsors on both sides of the aisle, and endorsements from leadership, the PELOSI Act stands a plausible chance of becoming law—marking a landmark overhaul of congressional ethics rules in decades.
9. Conclusion
The proposed ban on individual-stock trading by Members of Congress and their spouses—embodied in the House’s companion H.R. 8123 and the Senate’s PELOSI Act—represents a bold effort to sever any link between legislative power and personal profit. By eliminating even the appearance of insider advantage, the measure seeks to restore public trust in the U.S. legislature. With strong bipartisan backing, leadership endorsements, and a clear enforcement framework, the legislation could become a defining reform of Nancy Pelosi’s otherwise illustrious legacy—ensuring that Members of Congress serve solely in the public interest, free from competing financial incentives.
Adrian Hawthorne is a celebrated author and dedicated archivist who finds inspiration in the hidden stories of the past. Educated at Oxford, he now works at the National Archives, where preserving history fuels his evocative writing. Balancing archival precision with creative storytelling, Adrian founded the Hawthorne Institute of Literary Arts to mentor emerging writers and honor the timeless art of narrative.