New GOP bill to restrict congressional stock trades by members and relatives
WASHINGTON, DC: A senior House Republican is introducing legislation that would prohibit members of Congress, along with their spouses and dependent children, from trading stocks while in office.
The proposal, reviewed by FOX Business on Monday, January 12, is the latest effort to address long-standing ethics concerns surrounding lawmakers’ financial activities.
If enacted, the bill would impose financial penalties for violations and require advance public disclosures of certain stock sales. The measure is expected to receive committee consideration this week.
Bryan Steil's bill to restrict trading and impose financial penalties
The legislation is being introduced by House Administration Committee Chairman Bryan Steil, a Republican from Wisconsin.
According to a draft of the bill, members of Congress, their spouses, and dependent children would be barred from purchasing stocks or comparable securities during a lawmaker’s time in office.
The proposal also establishes new disclosure requirements for stock sales. Covered individuals would be required to publicly disclose an intended sale no fewer than seven days and no more than 14 days before the transaction takes place.
The disclosure would include the number of shares involved and the projected date of sale. If the sale does not proceed, the member of Congress linked to the transaction would be required to withdraw the disclosure.
Lawmakers who violate the restrictions, either directly or through a spouse or dependent child, would face mandatory penalties.
The bill states that violators would be required to divest the prohibited investment and pay a fee equal to the greater of $2,000 or 10% of the value of the transaction, in addition to any net gain realized.
The supervising ethics office would determine the final amount.
Under the proposal, lawmakers would be prohibited from using official office budgets or campaign funds to pay assessed fines.
If a member retires before settling the penalty, the House or Senate ethics office would have the authority to refer the case to the Department of Justice.
The stock trading restrictions would take effect 180 days after enactment. A markup hearing on the bill is expected on Wednesday, according to a source familiar with the matter.
Similar proposals have been introduced in recent years, but none have advanced into law.
Renewed bipartisan momentum after September 2025 discussions
The legislation follows months of bipartisan discussions among House lawmakers, including conversations in September 2025 about consolidating various proposals into a single measure.
Lawmakers from both parties have argued that access to nonpublic information creates the potential for conflicts of interest when members trade individual stocks.
“If you want to day trade, leave Congress. It’s that simple. If you come up here with the trust of the American people, do your job,” said Republican Rep Chip Roy (R-TX), who has been involved in the broader push.
House Speaker Mike Johnson has expressed general support for the concept but has said lawmakers must build consensus on the details.
“There’s a couple of different ideas on the table and we have to build consensus on that,” Johnson told reporters. Some lawmakers have warned they may attempt to force a floor vote if leadership does not act.
Democratic Rep Seth Magaziner of Rhode Island said a ban is necessary because “the opportunity for corruption is just so great.” Support for a stock trading ban has also emerged in the Senate.
