Republican Senator Josh Hawley proposed a bill to ban members of Congress, as well as their spouses and family members, from holding and trading stocks.
The Preventing Elected Leaders from Owning Securities and Investments Act, or PELOSI Act, is a play on words to reference former House Speaker Nancy Pelosi who was in the spotlight last year after her husband, Paul Pelosi, bought nearly $5 million stocks in a semiconductor company just before the Senate passed legislation to subsidize the semiconductor industry. That move made him hundreds of millions of dollars in stock trades.
He wasn’t the only one though. Numerous members of Congress, both Democrat and Republican alike, made a mountain of money in stock trades in 2021.
Hawley tweeted on Tuesday, “Members of Congress and their spouses shouldn’t be using their position to get rich on the stock market – today l’m introducing legislation to BAN stock trading & ownership by members of Congress. I call it the PELOSI Act.”
Members of Congress and their spouses shouldn’t be using their position to get rich on the stock market – today l’m introducing legislation to BAN stock trading & ownership by members of Congress. I call it the PELOSI Act pic.twitter.com/aIXNwSnTvW
— Josh Hawley (@HawleyMO) January 24, 2023
“For too long, politicians in Washington have taken advantage of the economic system they write the rules for, turning profits for themselves at the expense of the American people,” Hawley declared. “As members of Congress, both Senators and Representatives are tasked with providing oversight of the same companies they invest in, yet they continually buy and sell stocks, outperforming the market time and again.”
If passed, the PELOSI Act will ban Congress members and their spouses from buying, selling, or holding stocks while in office. Members and their spouses will be given a six month grace period after taking office to either divest their stocks or put them into a blind trust. After that point, if they are found to be in violation of the Act, they will be forced to forfeit any profits to the United States Treasury, and will be prohibited from claiming those loses on income taxes.
“While Wall Street and Big Tech work hand-in-hand with elected officials to enrich each other, hardworking Americans pay the price,” Hawley added. “The solution is clear: we must immediately and permanently ban all members of Congress from trading stocks.”