The PELOSI Act, reintroduced by Senator Josh Hawley, aims to restore integrity to Congress by banning stock trading among lawmakers and their spouses. Officially called the Preventing Elected Leaders from Owning Securities and Investments Act, the bill seeks to stop legislators from using insider information for financial gain.
Although named after former Speaker Nancy Pelosi, the bill focuses on ensuring that Congress prioritizes public service over personal profit.
Why the Bill is Named After Nancy Pelosi?
The PELOSI Act directly targets Nancy Pelosi, a figure at the center of this debate. Conservatives have long accused Pelosi and her husband, Paul Pelosi, of profiting from stock trades while she served in office. Despite no proof of insider trading, the bill’s name sends a strong political message.
Critics argue that Pelosi’s ability to profit from stock transactions raises serious questions about the integrity of lawmakers’ financial activities.
Major Provisions of the PELOSI Act
The PELOSI Act prohibits members of Congress and their spouses from buying, selling, or holding individual stocks while in office. They can still invest in mutual funds, ETFs, and US. Treasury bonds, allowing for diversified investments without direct stock trading.
The bill also mandates that any gains from illegal transactions be forfeited to the US Treasury. Lawmakers caught violating the act will face fines of 10% per transaction, imposed by the House or Senate ethics committees. Existing members will have 180 days to comply, while newly elected officials will face the same timeline upon taking office.
Trump’s Support and Political Impact
US President Donald Trump has publicly backed the PELOSI Act. In a recent interview, he criticized Pelosi for allegedly profiting from insider information. He said, “I watched Nancy Pelosi get rich with inside information, and I would be fine with it.”
His support adds weight to the bill, though opponents claim the proposal is more of a partisan attack than a real solution to insider trading.
Advantages and Disadvantages of the PELOSI Act
The PELOSI Act could restore public trust in Congress by removing the potential for lawmakers to profit from confidential information. It would address corruption and conflict-of-interest concerns. However, critics argue that the bill is too extreme. Some believe it could limit lawmakers’ financial independence and deter qualified individuals from running for office.
While the PELOSI Act may be politically charged, it brings important issues of ethics and accountability into focus. It holds the potential to restore transparency and rebuild public faith in the legislative process.
