House passes bill to restrict lawmaker stock trading, but larger fight to fully ban it looms
House Passes Bill to Restrict Lawmaker Stock Trading
Healfromzero.com – The House passes bill to restrict lawmakers from trading stocks, advancing a partisan measure that falls short of a complete prohibition. Lawmakers, their spouses, and dependent children would be barred from purchasing new publicly traded company stocks while serving in Congress. The legislation passed 232 to 198 on Wednesday, with only 13 Democrats crossing party lines to support the Republican-led proposal. Senate consideration remains uncertain.
Key Provisions and Penalties
Under the new rules, lawmakers may continue buying private stocks, retaining holdings acquired before entering Congress, and maintaining certain investment funds. Any stock sales would require advance notice between seven and fourteen days. Violations carry a penalty of either $2,000 or 10% of the transaction value, whichever exceeds the other, plus forfeiture of any profit earned from the trade.
A voter ID provision targeting mail-in voting was attached to the legislation during final negotiations, complicating passage. Bryan Steil, the Republican chairman of the House Administration Committee, championed the measure. Most Democrats opposed the bill, arguing it failed to go far enough while criticizing the GOP strategy of linking stock trading restrictions to voting changes.
“House Republicans are pushing a voter suppression bill that will upend mail-in-voting and throw the elections into chaos, and are trying to trick members into supporting it by linking it to a partial stock trading ban that falls short of the full Congressional stock trading ban that the American people want,” Democratic Rep. Seth Magaziner told CNN.
Steil emphasized the importance of the legislation on Monday, stating it is critical to restoring public trust in Congress. He argued that stopping new stock purchases removes the appearance of impropriety entirely. Americans deserve confidence that their representatives serve the public rather than their personal investment portfolios, he said.
GOP Representative Chip Roy, a longtime advocate for banning lawmaker stock trading, praised Wednesday’s vote as a significant step toward accountability. He noted that Americans have watched politicians enrich themselves while asking for public trust for too long. Roy explained that he has fought since his first congressional term to end the practice, emphasizing that serving in Congress should never become a path to personal profit.
The debate over congressional stock trading has persisted for years within Capitol Hill. Last year offered hope for comprehensive reform when bipartisan support emerged for a complete ban. A bipartisan bill was introduced in September 2025, and Republican Representative Anna Paulina Luna attempted in December 2025 to bypass House GOP leadership to bring a full ban to the floor.
Initial backing from President Donald Trump, House Speaker Mike Johnson, and House Minority Leader Hakeem Jeffries generated additional momentum. Missouri Republican Senator Josh Hawley even joined Democrats in July 2025 to advance a stock trading ban, drawing criticism from Trump regarding whether the executive branch should be included.
Proposals eventually diverged, causing negotiations to stall. Some Democrats sought to extend restrictions to the president, vice president, and their spouses, but lost Republican support in the process. The STOCK Act of 2012 remains the last major reform, requiring lawmakers to disclose trades but doing little to limit the practice. Polls consistently show public support for a congressional stock trading ban, while ethics experts worry about potential conflicts of interest.
CNN has documented cases where senator purchases or sales involved companies within their committee jurisdictions. Lawmaker trading activity also increased notably around President Trump’s trade war announcements. Current regulations allow lawmakers, spouses, and children to trade stocks while requiring reports of any activity conducted on their behalf within 45 days.