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Congress·Reported·3 months ago

Senate Committee Advances PELOSI Act to Bar Members of Congress and Spouses From Trading Stocks

Also known as: Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act

Legislative Progress

✓ Filed
Review
Senate
House
President

Impacts

Negative Impacts(1)
Cryptocurrency Investor
Hurts
Mixed Impacts(1)
Federal Employee
Neutral

Key Points

  • Would bar Members of Congress and their spouses from owning, buying, or selling most individual stocks and similar investments while the member is in office.
  • Allows broad, hands-off investments like diversified mutual funds, diversified exchange-traded funds, and U.S. Treasury bonds, plus a spouse or child’s regular job pay.
  • Gives current and new Members of Congress 180 days to sell covered investments and come into compliance.
  • If a member breaks the rule, profits would have to be paid back to the U.S. Treasury, and Congress ethics committees could issue fines.
  • Requires yearly written compliance statements that would be posted online, and calls for a Government Accountability Office audit within 2 years.
EconomyConsumer ProtectionCivil Rights

Milestones

5 milestones6 actions
Dec 10, 2025Senate

Placed on Senate Legislative Calendar under General Orders. Calendar No. 294.

Dec 10, 2025Senate

Committee on Homeland Security and Governmental Affairs. Reported by Senator Paul with an amendment in the nature of a substitute. Without written report.

Dec 10, 2025

Committee on Homeland Security and Governmental Affairs. Reported by Senator Paul with an amendment in the nature of a substitute. Without written report.

Jul 30, 2025Senate

Committee on Homeland Security and Governmental Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.

Apr 28, 2025Senate

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

What Happens Next

Projected impacts based on AI analysis

Starting on the law’s enactment date; deadline is 180 days later

Members and spouses get a 180-day window to sell covered investments after the law takes effect

If they hold individual stocks/other covered instruments, they must move into allowed options (like diversified mutual funds/ETFs or U.S. Treasuries) by the deadline to avoid penalties

Within the first 180 days after a new Member’s term begins

Newly elected or newly seated Members face a 180-day divestment deadline after their term starts

Incoming Members can’t keep covered investments beyond the first 180 days of their service, even if they owned them before taking office

Soon after enactment as committees implement the new system

House and Senate ethics committees issue rules/guidance and begin enforcement

Members will get clearer instructions on what counts as covered, how to prove they sold, and what happens if they don’t comply

Within the first year after enactment, then at least yearly

Annual compliance certifications begin and are posted online

The public can see each Member’s written certification that they complied, which increases transparency even without digging through trading disclosures

30 days after the ethics committee gives written notice, and at least every 30 days after that while noncompliance continues

Fines begin for continued noncompliance after notice and hearing opportunity

A Member who still holds covered investments after being warned can be fined on a repeating schedule, making it expensive to delay divesting

No later than 2 years after enactment

GAO completes a compliance audit and reports results to ethics committees

There will be an independent check on whether Members followed the rules and whether enforcement is working

Related News

2 articles
Moneywise·7 months ago

The 'Pelosi Act' Is a Step Closer to Law — but Opposition Is Heating Up

Originally named as a dig against Nancy Pelosi, the PELOSI Act would ban trading for lawmakers and spouses. The bill was altered to the HONEST Act in committee to expand its reach to the White House, though President Trump and VP JD Vance would be exempt.

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The Hill·10 months ago

Hawley reintroduces PELOSI Act banning lawmakers from trading stocks

Senator Josh Hawley reintroduced the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act, which would prohibit members of Congress and their spouses from holding or trading individual stocks. Violators would be required to return profits to taxpayers.

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Source Information

Document Type

Congressional Bill

Official Title

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

Bill NumberS 1498
Congress119th Congress
ChamberSenate
Latest ActionPlaced on Senate Legislative Calendar under General Orders. Calendar No. 294.

Sponsor

Cosponsors

(4)
D: 3R: 1

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.