Senate Panel Approves Bill to Ban Congressional Stock Trading

A key Senate committee has approved a bill prohibiting federal officials from trading individual stocks, though the legislation currently excludes Donald Trump and Senator J.D. Vance. The Senate Homeland Security and Governmental Affairs Committee passed the bill 8–7 after Democrats accepted an amendment to exempt Trump and Vance, ensuring the measure's advancement despite strong Republican opposition [1]. The bill now moves to the full Senate for a vote and, if enacted, would bar future presidents, vice presidents, and members of Congress from trading individual stocks while in office, though they may retain index funds and retirement accounts [2].

The measure, initially introduced as the PELOSI Act by Republican Senator Josh Hawley, has drawn criticism from both parties. Some Democrats argue that the exemption for Trump and Vance undermines the bill’s integrity and sets a problematic precedent for future administrations [3]. Meanwhile, Republican lawmakers have raised concerns about the bill’s potential to discourage public service and politicize financial enforcement. Critics also point to the lack of clarity regarding enforcement mechanisms and the role of ethics committees in overseeing compliance [2].

Despite the controversy, proponents of the bill emphasize the growing public demand for transparency in political financial dealings. Recent scrutiny of lawmakers’ stock transactions, including an investigation into Rep. Mike Kelly’s trades, has fueled calls for stricter ethical standards. The legislation reflects broader efforts to address perceived conflicts of interest and the appearance of impropriety in congressional conduct [1].

The move has also sparked internal tensions within the GOP, particularly with the Trump-aligned faction, which questions the bill’s necessity. The White House has expressed concerns that the restrictions could complicate administrative functions and be weaponized in future political conflicts [3]. With the bill now advancing, its prospects in the full Senate remain uncertain, as it faces likely continued resistance from Republicans who view it as a partisan initiative [1].

Source: [1] Congressional stock trading ban gets Senate panel's OK (https://www.politico.com/news/2025/07/30/senate-stock-trading-ban-pelosi-act-00484256)

[2] GOP Sen Teams Up With Dems To Advance Stock Trading Ban (https://www.tampafp.com/gop-sen-teams-up-with-dems-to-advance-stock-trading-ban/)

[3] Hawley's stock trading ban sparks drama with White House (https://www.reddit.com/r/moderatepolitics/comments/1mcqkql/hawleys_stock_trading_ban_sparks_drama_with_white/)