tl;dr
The HONEST Act, sponsored by Senator Josh Hawley, passed the Senate Homeland Security and Government Affairs Committee along party lines (8-7), with Hawley as the only Republican supporter. The bill aims to strengthen regulations on congressional stock trading by banning members of Congress and thei...
The HONEST Act has reignited debate on Capitol Hill regarding congressional stock trading, advancing this week after Senator Josh Hawley (R-MO) sponsored the bill and it passed the Senate Homeland Security and Government Affairs Committee by an 8-7 vote along party lines. Notably, Hawley was the only Republican to support the measure, while other GOP members opposed it for reasons including concerns over rushed legislation, potential discouragement of public service, concessions to the executive branch, and perceptions of partisan targeting.
Members of Congress possess privileged and classified information that can influence stock prices, as evidenced during the COVID-19 pandemic, alongside financial incentives from lobbying companies. To address potential conflicts of interest, the STOCK Act was enacted in 2012, mandating lawmakers disclose stock trades within 45 days. However, critics argue this legislation falls short of preventing insider trading effectively. The HONEST Act, similar to Hawley’s earlier PELOSI Act from 2023 which failed to progress, aims to strengthen these regulations.
The bill proposes banning members of Congress and their spouses from trading stocks while in office, requiring a gradual divestment of shares. It extends this restriction to the president and vice president, though only for their subsequent terms, thereby excluding current officeholders like President Trump and JD Vance. Additional provisions include closing existing loopholes, instituting written certification requirements, and enforcing compliance audits to enhance transparency and accountability.
Despite initial interest from former President Trump, his stance shifted following the partisan committee vote and Hawley’s opposition to an amendment investigating Nancy Pelosi’s stock trades. Senate Majority Leader John Thune now faces the decision of whether to bring the HONEST Act to a floor vote, though prospects for its advancement remain uncertain amid the prevailing political divide.