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S439FEDERALin_committee
High Impact

The PELOSI Act: Proposed Ban on Congressional Stock Trading

Original title: Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act

February 6, 2025

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Where This Stands

Introduced
Committee
Floor Vote
Passed
Signed

Currently in_committee. The next step in the legislative lifecycle is Floor Vote.

Last action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.Feb 15, 2023
Lead sponsor

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

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The Frame

What this does

If passed, this bill would force members of Congress and their spouses to divest from individual financial investments, fundamentally changing how they manage personal wealth while serving in office.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

Members of Congress

They would be prohibited from holding or trading individual financial instruments and would be required to divest or use blind trusts.

Spouses of Members of Congress

They would be subject to the same investment restrictions as the members themselves.

Government Accountability Office

They are mandated to conduct an audit of congressional compliance two years after the bill's enactment.

What changed

Current stage: in_committee.

What's next

Floor Vote.

Summary

This bill proposes to prohibit members of Congress and their spouses from holding, buying, or selling individual stocks, bonds, commodities, and other financial derivatives while in office. It requires members to divest these assets or place them into a within 180 days of taking office or the bill's enactment. The bill also mandates annual compliance certifications and authorizes ethics committees to impose fines for violations.

Key Facts

  • Prohibits members of Congress and their spouses from holding, buying, or selling 'covered financial instruments' during their term of service.
  • Defines 'covered financial instruments' as individual securities, security futures, commodities, and synthetic derivatives.
  • Excludes diversified mutual funds, diversified exchange-traded funds (ETFs), U.S. Treasury securities, and compensation from a spouse's primary occupation from the ban.
  • Allows members 180 days to divest or move assets into a qualified blind trust after taking office or the bill's enactment.
  • Requires members to submit annual written certifications of compliance to their respective ethics committees.
  • Mandates that ethics committees publish all compliance certifications on a public website.
  • Requires members to disgorge any profits made from prohibited transactions to the U.S. Treasury.
  • Authorizes ethics committees to assess civil fines for violations, with a right to appeal to the full House or Senate floor.
  • Requires the Government Accountability Office (GAO) to audit congressional compliance two years after the bill becomes law.
  • Requires ethics committees to publish details of any fines assessed, including reasons and outcomes of hearings.

Frequently Asked Questions

Can members of Congress still own mutual funds or ETFs?
Yes, the bill specifically excludes diversified mutual funds and diversified exchange-traded funds from the definition of prohibited financial instruments.
What happens if a member of Congress violates these rules?
They must pay back any profits from the prohibited transaction to the U.S. Treasury and may be subject to civil fines assessed by their respective ethics committee.
Does this apply to the spouse of a member of Congress?
Yes, the prohibition on holding, buying, or selling s applies to both the member of Congress and their spouse.

Why It Matters

If passed, this bill would force members of Congress and their spouses to divest from individual financial investments, fundamentally changing how they manage personal wealth while serving in office.

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Expansion of Ethics Oversight

The bill shifts the role of ethics committees from purely advisory/investigative to active enforcement of specific asset-holding prohibitions.

Connected Entities

organizationCommittee on Homeland Security and Governmental AffairsThe Senate committee to which the bill was referred.Map →
personJosh HawleyUnited States Senator who introduced the bill.Map →
organizationGovernment Accountability OfficeTasked with auditing compliance two years after enactment.Map →

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy75
    Intensity of disagreement among stakeholders
  • Entertainment40
    Compellingness for a non-policy-wonk reader
  • Buzz60
    Current news / social attention level

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