House Passes Bill to Restrict Congressional Stock Trading, Senate Fate Uncertain

The U.S. House of Representatives narrowly passed legislation Wednesday that would tighten restrictions on stock trading by members of Congress, though the proposal falls short of a complete ban that many lawmakers and ethics advocates have pushed for.

The bill passed 232-198, with support coming primarily from Republicans and a small number of Democrats. Its future remains uncertain as it heads to the Senate.

If enacted, the legislation would prohibit lawmakers, their spouses, and dependent children from purchasing new shares of publicly traded companies while serving in Congress. However, they could keep stocks they already owned before taking office, invest in private companies, and continue holding certain investment funds.

The measure also requires advance notice before selling stock and establishes financial penalties for violations, including fines and forfeiture of profits from prohibited trades.

Supporters say the bill is intended to strengthen public trust by reducing potential conflicts of interest.

House Administration Committee Chairman Bryan Steil, who led the legislation, said ending new stock purchases by lawmakers would eliminate the appearance of impropriety and help restore confidence in Congress.

Critics, however, argued the proposal does not go far enough. Many Democrats opposed the bill, saying they favor a complete ban on congressional stock trading and objected to the inclusion of election-related provisions tied to the legislation.

The debate over congressional stock trading has intensified in recent years, with bipartisan proposals calling for broader restrictions. Current law, established under the STOCK Act of 2012, requires lawmakers to disclose stock trades but does not prohibit them from buying or selling individual stocks.

Public polling has consistently shown broad support for stricter limits or an outright ban on members of Congress trading individual stocks while in office.