H. Rpt. 119-479 accompanies the "Stop Insider Trading Act" — legislation that falls within the Committee on House Administration's jurisdiction. Committee reports serve as the official legislative history of a bill, documenting what the legislation would do and why the committee recommends passage. Reports of this kind include the committee's section-by-section analysis, any amendments adopted during markup, the Congressional Budget Office cost estimate, dissenting views from minority members, and the legal basis for the legislation. Courts and agencies consult committee reports when interpreting enacted laws, making these documents important beyond the immediate legislative moment.
Official report text. Use Ctrl+F / Cmd+F to search within the document.
House Report 119-479 - STOP INSIDER TRADING ACT
[House Report 119-479]
[From the U.S. Government Publishing Office]
119th Congress } { Report
HOUSE OF REPRESENTATIVES
2nd Session } { 119-479
======================================================================
STOP INSIDER TRADING ACT
_______
February 3, 2026.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Steil, from the Committee on House Administration, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 7008]
The Committee on House Administration, to whom was referred
the bill (H.R. 7008) to amend chapter 131 of title 5 to require
certain restrictions on stocks for Members of Congress and
their spouses and dependents, and for other purposes, having
considered the same, reports favorably thereon with an
amendment and recommends that the bill as amended do pass.
CONTENTS
Page
Purpose and Summary.............................................. 3
Background and Need for Legislation.............................. 4
Related Hearing.................................................. 5
Committee Consideration.......................................... 5
Committee Votes.................................................. 5
Committee Oversight Findings..................................... 19
Performance Goals and Objectives................................. 19
Congressional Budget Office Estimates............................ 19
New Budget Authority, Entitlement Authority, and Tax Expenditures 19
Federal Mandates Statement....................................... 19
Advisory Committee Statement..................................... 19
Applicability to Legislative Branch.............................. 19
Earmark Identification........................................... 20
Duplication of Federal Programs.................................. 20
Section-by-Section Analysis of the Legislation................... 20
Changes in Existing Law Made by the Bill, as Reported............ 20
Minority Views................................................... 24
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Insider Trading Act''.
SEC. 2. RESTRICTIONS ON COVERED INVESTMENTS.
(a) Table of Contents.--The table of contents for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--restrictions on covered investments
``13151. Definitions.
``13152. Restrictions on covered investments.
``13153. Enforcement.''.
(b) Restrictions.--Chapter 131 of title 5, United States Code, is
amended by adding at the end a new subchapter:
``SUBCHAPTER IV--RESTRICTIONS ON COVERED INVESTMENTS
``Sec. 13151. Definitions
``In this subchapter:
``(1) Covered individual.--The term `covered individual'
means any of the following:
``(A) A Member of Congress, as defined in section
13101.
``(B) A dependent child (as defined in section 13101)
or a spouse of a Member of Congress.
``(2) Covered investment.--
``(A) In general.--The term `covered investment'
means a security issued by a publicly traded company or
any comparable economic interest acquired through
synthetic means, such as the use of a derivative,
including an option, warrant, or other similar means.
``(B) Exclusion.--The term `covered investment' does
not include--
``(i) an excepted investment fund (as
described in section 13104(f)(8));
``(ii) any other fund that would be an
excepted investment fund but for the fact that
the fund does not meet the diversification
requirement solely because the fund is
concentrated in--
``(I) the United States; or
``(II) the State, territory, or
District of residence of the covered
individual who owns the fund;
``(iii) an interest in a small business
concern as defined under section 3 of the Small
Business Act (15 U.S.C. 632); or
``(iv) investments held in a trust if no
covered individual has any authority over a
trustee of the trust, including the authority
to appoint, replace, or direct the actions of
such a trustee, and the trustee is not the
spouse, child, parent, or sibling of a Member
of Congress.
``(3) Publicly traded company.--The term `publicly traded
company' means an issuer that has a class of securities
registered under section 12 of the Securities Exchange Act of
1934 (15 U.S.C. 78l).
``(4) Security.--The term `security' has the meaning given
the term in section 3(a) of the Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
``(5) Supervising ethics office.--The term `supervising
ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Restrictions on covered investments
``(a) Conduct During Federal Service.--Except as described in
subsection (c), no covered individual may purchase a covered
investment.
``(b) Advanced Notice Requirement.--
``(1) In general.--No covered individual shall sell a covered
investment, unless a notice of intent to sell the covered
investment is made by the Member of Congress and publicly
disclosed at least 7 calendar days, and no more than 14
calendar days, prior to the sale in accordance with the
requirements of this subsection.
``(2) Contents of notice.--The notice under paragraph (1)
shall include the following:
``(A) The projected date of sale of a covered
investment.
``(B) A description of such sale.
``(C) The number of shares in such sale.
``(3) Withdrawal.--The notice under paragraph (1) shall be
withdrawn by the Member of Congress who filed it, prior to the
close of the expiration of the notice, if the covered
individual determines not to sell the covered asset.
``(4) Filing.--A Member of Congress shall file the notice
under paragraph (1) for each intended sale by the Member, or
the spouse or dependent child of the Member, with--
``(A) the Clerk of the House of Representatives, in
the case of a Representative in Congress, a Delegate to
Congress, or the Resident Commissioner from Puerto
Rico; or
``(B) the Secretary of the Senate, in the case of a
Senator.
``(5) Publication.--The notice under paragraph (1) and the
withdrawal under paragraph (3) shall, upon receipt, be made
publicly available on a website controlled by the by the Clerk
of the House of Representatives or the Secretary of the Senate,
as applicable.
``(c) Exceptions.--
``(1) Occupation.--The requirements of subsections (a) and
(b) shall not apply to a spouse or dependent child of a Member
of Congress with respect to a transaction in a covered
investment which is--
``(A) on behalf, or for the benefit, of any person
other than a covered individual; or
``(B) made as a part of compensation from an employer
of such individual or in furtherance of any fiduciary
or occupational obligations of such individual.
``(2) Other.--The requirements of subsection (a) shall not
apply to a covered individual with respect to a transaction in
a covered investment made for the purpose of reinvesting
dividends received from such covered investment.
``Sec. 13153. Enforcement
``(a) In General.--Any covered individual who violates the
restrictions in section 13152 with respect to a covered investment,
shall, at the direction of the supervising ethics office--
``(1) incur a fee, as calculated in subsection (b), to be
paid by the Member of Congress who--
``(A) caused the violation; or
``(B) is the spouse or parent of a covered individual
who caused the violation; and
``(2) in the case of a purchase of a covered investment, be
required to sell a covered investment purchased in violation of
section 13152(a).
``(b) Calculation of Fees.--The fee required under subsection (a)
shall be equal to the sum of--
``(1) $2,000 or ten percent of the value of the transaction
in the covered investment which violates section 13152,
whichever is greater; and
``(2) the net gain realized, if any, from the covered
investment during the period beginning on the most recent date
on which the individual became a covered individual and ending
on the date of disposition of the covered investment, as
determined by the supervising ethics office.
``(c) Payment Restrictions.--A Member of Congress may not pay any of
the fees under this section by using amounts from the following
sources:
``(1) The Members' Representational Allowance.
``(2) The Senators' Official Personnel and Office Expense
Account.
``(3) Any contribution (as defined in section 301(8) of the
Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8)))
accepted as a candidate, and any other donation received as
support for activities of the individual as a holder of Federal
office.
``(d) Miscellaneous Receipts.--Any amounts collected in fees
authorized by this section shall be deposited in the general fund of
the Treasury as miscellaneous receipts in accordance with section
3302(b) of title 31.
``(e) Referral.--Upon the assessment of a fee under this section, the
supervising ethics office has the authority to refer a Member of
Congress to the Department of Justice in the same manner and to the
same extent as a violation under section 13106 if such Member of
Congress resigns or retires before paying such assessed fee.
``(f) Interpretative Guidance.--Each supervising ethics office may
issue interpretative guidance on this subchapter and in issuing such
guidance, may consider mitigating or aggravating circumstances.''.
(c) Effective Date.--The amendments made by this Act shall take
effect on the date that is 180 days after the date of enactment of this
Act.
Purpose and Summary
Introduced on January 12, 2026, by Representative Bryan
Steil, H.R. 7008, the Stop Insider Trading Act, would amend the
Ethics in Government Act to prohibit Members of Congress, their
spouses, and their dependent children from purchasing
individual stocks from publicly traded companies and require a
7-day public advance notice of covered investments. If a
violation occurs, the Member of Congress would pay a fee of
$2,000 or 10% of the value of the transaction, whichever is
greater, and the net gain realized, if any, from the
transaction of the covered investment.
Background and Need for Legislation
Members of Congress are elected to serve their constituents
and the American people. As part of their duty, they regularly
receive public and non-public information about current events.
They meet to exchange information with stakeholders,
constituents, and others as they serve their districts.
Access to that specialized information has become a point
of concern for many Americans, who fear that Members of
Congress are using sensitive information to benefit their stock
portfolio. Though already subject to the 1978 Ethics in
Government Act (EIGA), there were no rules that specifically
regulated Members of Congress and their investment activity for
many years.
Congress first addressed that concern with the 2012 Stop
Trading on Congressional Knowledge Act (STOCK Act). The STOCK
Act responded to concerns that Members and their staff might
have been exempt from laws prohibiting someone from trading
based on insider information.\1\ The STOCK Act focused on
closing perceived gaps in insider trading laws that did not
clearly address Members of Congress in their unique capacity as
public servants, rather than corporate insiders.\2\ The STOCK
Act also extended insider trading prohibitions to commodity
trading for Members of Congress and their staff.\3\ Finally, it
shortened the reporting window for covered transactions from
one year to thirty days.\4\
---------------------------------------------------------------------------
\1\S. Rep. No. 112-244, pt. 1, at 1 (2012).
\2\Id.
\3\S. Rep. No. 112-244, pt. 2, at 6.
\4\Id.
---------------------------------------------------------------------------
While the STOCK Act was a step in the right direction, it
largely declined to go further than extending existing insider
trading laws to Congress.\5\ The impact of the STOCK Act is
difficult to measure, though no Member of Congress has ever
been prosecuted under the Act.\6\ Thus, concerns remain that
Members of Congress may still be using their access to
information to benefit themselves, only disclosing their trades
a month after they have already made their profit.\7\
---------------------------------------------------------------------------
\5\S. Rep. No. 112-244, pt. 1, at 1.
\6\Taking Stock of the STOCK Act: Hearing Before the Comm. on House
Admin., 119th Cong. 11 (statement of James R. Copland, Legal Policy
Director, Manhattan Institute for Policy Research) (Nov. 19, 2025).
\7\See Taking Stock of the STOCK Act: Hearing Before the Comm. on
House Admin., 119th Cong. 26 (statement of Jacob R. Straus, Specialist
on the Congress, Congressional Research Service) (Nov. 19, 2025).
---------------------------------------------------------------------------
Currently, there are no laws or rules that prohibit Members
of the House or Senate from owning or trading stocks.\8\
However, an overwhelming majority of Americans support a stock
trading ban for Members of Congress.\9\ Indeed, experts on the
subject explain: ``there are sufficient reasons to worry that
the STOCK Act may not be working as intended to deter or
prevent various stock trades by Members of Congress that may
create at least an appearance of impropriety. . . .''\10\
---------------------------------------------------------------------------
\9\Ban on Stock trading for members of Congress Favored by
Overwhelming Bipartisan majority, Univ. of Md. Sch. of Pub. Pol'y,
(July 19, 2023), https://publicconsultation.org/united-states/stock-
trading-by-members-of-congress/.
\10\Statement of James R. Copland, supra note 6 at 13.
---------------------------------------------------------------------------
The Stop Insider Trading Act addresses those concerns by
implementing new restrictions on stock trading for Members of
Congress and their spouses and dependent children. It restores
public trust, while striking a careful balance that does not
deter individuals from all backgrounds from running for
Congress.
This Act prevents Members of Congress, their spouses, and
dependent children from profiting off of insider information by
banning them from purchasing individual stocks from publicly
traded companies and simply requires them to provide advance
notice if they intend to sell those investments. Significantly
prohibiting the purchase of individual securities prevents
Members and their families from using sensitive information to
trade for profit. The Stop Insider Trading Act takes decisive
action to restore public trust in Congress by making these
important changes to the EIGA.
Related Hearing
Pursuant to clause 3(c)(6) of rule XIII, the following
hearing was used to develop H.R. 7008: The Committee on House
Administration held a hearing on November 19, 2025, titled,
``Taking Stock of the STOCK Act.''
Committee Consideration
The Committee on House Administration met in open session
on January 14, 2026, and ordered H.R. 7008 to be reported
favorably to the House, as amended, by a recorded vote of 7
ayes to 4 nays, a quorum being present. Before the question was
called to order the bill favorably reported, the Committee
adopted an amendment in the nature of a substitute offered by
Mr. Steil by voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the order to report legislation and amendments thereto. H.R.
7008 was ordered reported favorably to the House, as amended,
by a recorded vote of 7 ayes to 4 nays, a quorum being present.
An amendment offered by Mr. Morelle, no. 1, was not agreed
to by a recorded vote of 3 ayes to 5 nays, a quorum being
present.
An amendment offered by Mr. Morelle, no. 2, was withdrawn.
An amendment offered by Ms. Torres, no. 3, was not agreed
to by a recorded vote of 4 ayes to 6 nays, a quorum being
present.
An amendment offered by Ms. Sewell, no. 4, was not agreed
to by a recorded vote of 4 ayes to 6 nays, a quorum being
present.
An amendment offered by Mr. Morelle, no. 5, was not agreed
to by a recorded vote of 4 ayes to 7 nays, a quorum being
present.
An amendment offered by Ms. Johnson, no. 6, was not agreed
to by a recorded vote of 4 ayes to 7 nays, a quorum being
present.
An amendment offered by Mr. Morelle, no. 7, was not agreed
to by a recorded vote of 4 ayes to 7 nays, a quorum being
present.
Committee Oversight Findings
Pursuant to clause 3(c) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee, based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the goal of H.R. 7008 is to prohibit
Members of Congress, their spouses, and their dependent
children from profiting off insider information by banning the
purchase of individual stocks from publicly traded companies
and requiring them to publicly provide 7-day advance notice of
any intent to sell covered investments.
Congressional Budget Office Estimates
The Committee has requested but not received a cost
estimate from the Director of the Congressional Budget Office.
However, pursuant to clause 3(d)(1) of House rule XIII, the
Committee will adopt as its own the cost estimate by the
Director of the Congressional Budget Office once it has been
prepared.
New Budget Authority, Entitlement Authority,
and Tax Expenditures
The Committee has requested but not received an estimate
from the Director of the Congressional Budget Office. However,
pursuant to clause 3(c)(2) of rule XIII of the Rules of the
House of Representatives, once an estimate has been prepared by
the Director of the Congressional Budget Office, as required by
section 402 of the Congressional Budget Act of 1973, the
Committee will adopt as its own the estimate of new budget
authority, entitlement authority, or tax expenditures or
revenues contained in the cost estimate.
Federal Mandates Statement
The Committee has requested but not received an estimate
from the Director of the Congressional Budget Office of the
Federal mandates pursuant to section 423 of the Unfunded
Mandates Reform Act. The Committee will adopt the estimate once
it has been prepared by the Director.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Applicability to Legislative Branch
Per section 102(b)(3) of the Congressional Accountability
Act, this Act would apply to the legislative branch. Once a
Member of Congress is sworn into office, this Act would apply
to them, their spouses, and their dependent children. Should
the Member of Congress violate the requirements of the Act,
they would be subject to fees issues by the Ethics Committee.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
Pursuant to clause 3(c)(5) of rule XIII of the Rules of the
House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes a program of
the Federal Government known to be duplicative of another
Federal program, including any program that was included in a
report to Congress pursuant to section 21 of the Public Law
111-139 or the most recent Catalog of Federal Domestic
Assistance.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section cites H.R. 7008 as the ``Stop Insider Trading
Act.''
Section 2. Restrictions on covered investments
This section amends the Ethics in Government Act to
prohibit Members of Congress, their spouses, and their
dependent children (covered individuals) from purchasing
covered investments from publicly traded companies. If covered
individuals would like to sell a covered investment, Members of
Congress must first publicly disclose at least 7 days in
advance, and no more than 14 days, their intent to sell. The
notice must include the projected date of sale of the covered
investment, a description of such sale, and the number of
shares. If Members decide not to sell the covered investment,
they must issue a public notice of withdrawal.
In the case of spouses and dependent children trading on
behalf of others as a function of their occupation, spouses and
dependent children receiving securities as a form of
compensation from their employer, and the reinvestment of
dividends back into the covered investment, the restrictions do
not apply.
If a covered individual violates the requirements of this
Act, the Ethics Committee shall issue a fee equal to the sum of
$2,000 or 10 percent of the value of the transaction of the
covered investment, whichever is greater, and the net gain
realized, if any, from the transaction of the covered
investment during the period beginning on the most recent date
on which the individual became a covered individual and ending
on the date of disposition of the covered investment.
This Act shall take effect 180 days after the enactment of
this Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be new matter is printed in italics and existing
law in which no change is proposed is shown in roman):
TITLE 5, UNITED STATES CODE
* * * * * * *
PART IV--ETHICS REQUIREMENTS
* * * * * * *
CHAPTER 131--ETHICS IN GOVERNMENT
SUBCHAPTER I--FINANCIAL DISCLOSURE REQUIREMENTS OF FEDERAL PERSONNEL
Sec.
13101. Definitions.
* * * * * * *
SUBCHAPTER IV_RESTRICTIONS ON COVERED INVESTMENTS
13151. Definitions.
13152. Restrictions on covered investments.
13153. Enforcement.
* * * * * * *
SUBCHAPTER IV--RESTRICTIONS ON COVERED INVESTMENTS
Sec. 13151. Definitions
In this subchapter:
(1) Covered individual.--The term ``covered
individual'' means any of the following:
(A) A Member of Congress, as defined in
section 13101.
(B) A dependent child (as defined in section
13101) or a spouse of a Member of Congress.
(2) Covered investment.--
(A) In general.--The term ``covered
investment'' means a security issued by a
publicly traded company or any comparable
economic interest acquired through synthetic
means, such as the use of a derivative,
including an option, warrant, or other similar
means.
(B) Exclusion.--The term ``covered
investment'' does not include--
(i) an excepted investment fund (as
described in section 13104(f)(8));
(ii) any other fund that would be an
excepted investment fund but for the
fact that the fund does not meet the
diversification requirement solely
because the fund is concentrated in--
(I) the United States; or
(II) the State, territory, or
District of residence of the
covered individual who owns the
fund;
(iii) an interest in a small business
concern as defined under section 3 of
the Small Business Act (15 U.S.C. 632);
or
(iv) investments held in a trust if
no covered individual has any authority
over a trustee of the trust, including
the authority to appoint, replace, or
direct the actions of such a trustee,
and the trustee is not the spouse,
child, parent, or sibling of a Member
of Congress.
(3) Publicly traded company.--The term ``publicly
traded company'' means an issuer that has a class of
securities registered under section 12 of the
Securities Exchange Act of 1934 (15 U.S.C. 78l).
(4) Security.--The term ``security'' has the meaning
given the term in section 3(a) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)).
(5) Supervising ethics office.--The term
``supervising ethics office'' has the meaning given the
term in section 13101.
Sec. 13152. Restrictions on covered investments
(a) Conduct During Federal Service.--Except as described in
subsection (c), no covered individual may purchase a covered
investment.
(b) Advanced Notice Requirement.--
(1) In general.--No covered individual shall sell a
covered investment, unless a notice of intent to sell
the covered investment is made by the Member of
Congress and publicly disclosed at least 7 calendar
days, and no more than 14 calendar days, prior to the
sale in accordance with the requirements of this
subsection.
(2) Contents of notice.--The notice under paragraph
(1) shall include the following:
(A) The projected date of sale of a covered
investment.
(B) A description of such sale.
(C) The number of shares in such sale.
(3) Withdrawal.--The notice under paragraph (1) shall
be withdrawn by the Member of Congress who filed it,
prior to the close of the expiration of the notice, if
the covered individual determines not to sell the
covered asset.
(4) Filing.--A Member of Congress shall file the
notice under paragraph (1) for each intended sale by
the Member, or the spouse or dependent child of the
Member, with--
(A) the Clerk of the House of
Representatives, in the case of a
Representative in Congress, a Delegate to
Congress, or the Resident Commissioner from
Puerto Rico; or
(B) the Secretary of the Senate, in the case
of a Senator.
(5) Publication.--The notice under paragraph (1) and
the withdrawal under paragraph (3) shall, upon receipt,
be made publicly available on a website controlled by
the by the Clerk of the House of Representatives or the
Secretary of the Senate, as applicable.
(c) Exceptions.--
(1) Occupation.--The requirements of subsections (a)
and (b) shall not apply to a spouse or dependent child
of a Member of Congress with respect to a transaction
in a covered investment which is--
(A) on behalf, or for the benefit, of any
person other than a covered individual; or
(B) made as a part of compensation from an
employer of such individual or in furtherance
of any fiduciary or occupational obligations of
such individual.
(2) Other.--The requirements of subsection (a) shall
not apply to a covered individual with respect to a
transaction in a covered investment made for the
purpose of reinvesting dividends received from such
covered investment.
Sec. 13153. Enforcement
(a) In General.--Any covered individual who violates the
restrictions in section 13152 with respect to a covered
investment, shall, at the direction of the supervising ethics
office--
(1) incur a fee, as calculated in subsection (b), to
be paid by the Member of Congress who--
(A) caused the violation; or
(B) is the spouse or parent of a covered
individual who caused the violation; and
(2) in the case of a purchase of a covered
investment, be required to sell a covered investment
purchased in violation of section 13152(a).
(b) Calculation of Fees.--The fee required under subsection
(a) shall be equal to the sum of--
(1) $2,000 or ten percent of the value of the
transaction in the covered investment which violates
section 13152, whichever is greater; and
(2) the net gain realized, if any, from the covered
investment during the period beginning on the most
recent date on which the individual became a covered
individual and ending on the date of disposition of the
covered investment, as determined by the supervising
ethics office.
(c) Payment Restrictions.--A Member of Congress may not pay
any of the fees under this section by using amounts from the
following sources:
(1) The Members' Representational Allowance.
(2) The Senators' Official Personnel and Office
Expense Account.
(3) Any contribution (as defined in section 301(8) of
the Federal Election Campaign Act of 1971 (52 U.S.C.
30101(8))) accepted as a candidate, and any other
donation received as support for activities of the
individual as a holder of Federal office.
(d) Miscellaneous Receipts.--Any amounts collected in fees
authorized by this section shall be deposited in the general
fund of the Treasury as miscellaneous receipts in accordance
with section 3302(b) of title 31.
(e) Referral.--Upon the assessment of a fee under this
section, the supervising ethics office has the authority to
refer a Member of Congress to the Department of Justice in the
same manner and to the same extent as a violation under section
13106 if such Member of Congress resigns or retires before
paying such assessed fee.
(f) Interpretative Guidance.--Each supervising ethics office
may issue interpretative guidance on this subchapter and in
issuing such guidance, may consider mitigating or aggravating
circumstances.
MINORITY VIEWS
H.R. 7008, which is not a ban of Members of Congress
trading stocks, is insufficient to meet the demands of the
public. Every day, the Trump Administration forces the American
people to bear the cost of this corruption. And that cost is
not only measured at the cash register, but in the erosion of
faith in government itself--the very foundation of our
legitimacy as representatives.
Rather than restore that faith, H.R. 7008 would exacerbate
this insidious problem. In addition to allowing Members to keep
every single share of stock they currently own, the bill allows
Members to freely buy and sell an assortment of financial
instruments and investment vehicles including but not limited
to commodities, privately traded stocks, and corporate bonds.
Further, the bill allows Members to buy new stocks using
dividends gained from their existing portfolios and codifies a
glaring loophole for the continued purchase of stocks by
spouses and dependent children on behalf of another person.
Simply put, H.R. 7008 is nothing more than an enhanced
disclosure regime at a time when the American people have been
loud and clear that disclosure is simply not enough.
Too often, Members of Congress have leveraged their
unrivaled access to market-moving information into personal
gain. This problem was particularly acute during the nascent
stages of the COVID-19 pandemic when, following a classified
briefing on the aggressiveness of the virus, United States
Senators--including a current member of President Trump's
Cabinet, sold considerable stock holdings shortly before the
resulting economic downturn.\1\ Notably, these and similar fire
sales would have been permitted even if H.R. 7008 were law at
the time.
---------------------------------------------------------------------------
\1\Kelly Loeffler and Richard Burr Were Briefed on Coronavirus.
Then They Sold Stocks. What Now?, The New York Times, https://
www.nytimes.com/2020/03/20/us/politics/kelly-loeffler-
richard-burr-insider-trading.html, March 20, 2020.
---------------------------------------------------------------------------
Closer to home, public reporting revealed that a Republican
House Member sold considerable sums of stock in Medicare
providers a week before voting to drastically cut the
program.\2\ More recently, the Chair of the House Republican
Conference disclosed a December 2025 purchase of between
$100,001.00 and $250,000.00 of private stock in xAI, an Elon
Musk backed enterprise, shortly before the Department of
Defense announced on January 12, 2026, that xAI products would
be used in the agency's systems.\3\ Both of these transactions
would be wholly permitted under H.R. 7008.
---------------------------------------------------------------------------
\2\Rep. Rob Bresnahan sold stock in several Medicaid providers
before voting for cuts, https://www.nbcnews.com/politics/congress/rep-
rob-bresnahan-sold-stock-medicaid-providers-vote-big-bill-rcna244859,
NBCNews.com, November 20, 2025.
\3\Michigan Rep. Lisa McClain denies insider trading on stock
purchased in Musk AI company, https://www.mlive.com/news/2026/01/
michigan-rep-lisa-mcclain-denies-insider-trading-on-stock-purchased-in-
musk-ai-company.html, mlive, January 17, 2026.
---------------------------------------------------------------------------
During the Committee's consideration of H.R. 7008,
Committee Democrats offered six amendments in a good faith
effort to improve the bill. These amendments would have
expanded the scope of covered people to include the President
and Vice President, prohibited the purchase of new stocks,
expanded the scope of covered investments, required divestiture
of currently owned stocks, and closed the loophole allowing
spouses and dependent children to buy stocks for others. Each
amendment was rejected on a party line vote.
H.R. 6731, The Restore Trust in Government Act, on the
other hand, takes a comprehensive approach and is a total ban
on stock trading and ownership by Members of Congress, the
President, and the Vice President. It would prohibit elected
politicians from using the power of their office to self-
enrich, including by buying or selling stocks, corporate bonds,
and commodities. The bill is a straight-forward approach to
addressing what is a simple but serious problem, free of
loopholes and sleight of hand. The policy solutions are out
there. What remains to be seen is whether there is the
political courage to vote for them.
Joseph D. Morelle,
Ranking Member.
[all]