The House has narrowly approved legislation that introduces new limitations on stock trading by lawmakers, following a partisan debate that resulted in a more limited proposal rather than a complete ban.
On Wednesday, the bill was passed with a vote of 232 to 198, with just 13 Democrats supporting it alongside Republicans. It remains uncertain when, or if, the Senate will consider the measure.
This legislation prohibits lawmakers, their spouses, and dependent children from acquiring new shares of publicly traded companies while they are in Congress, introducing a new restriction on a widely debated practice.
According to the bill, lawmakers are still allowed to purchase private stocks, retain existing stocks they owned before their congressional tenure, and manage certain investment funds. They must provide a notice of seven to fourteen days prior to selling any stock. If they breach these new regulations, they would incur a penalty of $2,000 or 10% of the transaction’s value, whichever amount is higher, and would have to forfeit any profits from the trade.
In the days leading up to the vote, a separate measure related to voter ID that would impose additional constraints on mail-in voting was integrated into the bill, complicating its passage.
Although the bill, spearheaded by Bryan Steil, the GOP chair of the House Administration Committee, tightens the rules on lawmakers’ stock trading compared to current regulations, it faced opposition from most Democrats, who argued that it did not adequately address the problem and criticized the decision to link it to voting measure changes.
“House Republicans are advancing (a) voter suppression bill that will disrupt mail-in voting and create chaos during elections, attempting to mislead members into endorsing this by associating it with a partial stock trading prohibition that falls short of the complete ban that the American public desires,” stated Democratic Rep. Seth Magaziner, who co-sponsored a bipartisan bill aimed at banning stock trading that has yet to progress, in comments to USdaily.
Steil remarked on Monday that this legislation “is essential for restoring public confidence in our institution.”
“I believe it is time to prohibit members from purchasing new stocks entirely. This would eliminate any perception of impropriety. The American people should be assured that their lawmakers prioritize their interests over their stock investments.”
GOP Rep. Chip Roy, who has long advocated for a ban on congressional stock trading, referred to Wednesday’s vote as “a significant advancement towards holding members accountable and regaining trust in government.”
“For far too long, the public has observed politicians profiting while asking for their trust. This must change. Since my first term in Congress, I have fought to prohibit stock trading among lawmakers, as serving in Congress should never be a means to personal gain,” Roy expressed.
The debate over whether lawmakers should engage in stock trading has been contentious within Congress for many years.
At one point last year, there was optimism that a complete ban on lawmaker stock trading would gain traction and become law with strong bipartisan backing.
In September 2025, a bipartisan proposal was introduced, and in December 2025, GOP Rep. Anna Paulina Luna sought to bypass House GOP leadership to present a bill aimed at banning stock trading by lawmakers to the floor.
The initial support for restricting congressional stock trading from President Donald Trump, House Speaker Mike Johnson, and House Minority Leader Hakeem Jeffries provided new impetus. Additionally, Missouri Republican Sen. Josh Hawley voted with Democrats in July 2025 to move forward with a bill to prohibit lawmakers from stock trading, despite facing opposition from other Republicans and drawing criticism from Trump regarding whether the ban should extend to the executive branch.
However, as discussions progressed, proposals began to diverge and negotiations stalled. Some Democrats advocated for an expansion of the ban to include the president, vice president, and their spouses, which led to a loss of Republican backing.
Reforms concerning lawmaker stock trading have not been implemented since the passage of the STOCK Act in 2012. This legislation established requirements for lawmakers to disclose their stock transactions but has done little to limit the practice itself.
Surveys have consistently indicated strong public support for prohibiting Congress members from engaging in stock trading. The topic has garnered national attention and raised concerns among nonpartisan ethics experts regarding lawmakers potentially exploiting their positions for personal gain.
USdaily has reported instances where stock transactions by senators involved companies within sectors overseen by their committees, as well as spikes in stock trading by lawmakers around the announcements related to President Donald Trump’s trade war.
Currently, lawmakers, as well as their spouses and children, are allowed to execute trades, but they are obligated to report any activity conducted on their behalf within a 45-day window. They are only required to disclose a general monetary range for their trades.
Prior to the vote, GOP Rep. Thomas Massie expressed his intention to support the bill but issued a cautionary note.
“I don’t believe this will resolve issues around here, but I will vote in favor of it,” Massie stated on Tuesday.
USdaily’s Ellis Kim, Alison Main and Trinity Kinslow contributed
