A bipartisan group of unlikely allies in Congress have banded together to take on stock trading by their colleagues, a practice they say leads to conflicts of interest and potential corruption.
It’s not the first effort to do so, but the idea has gained significant traction among certain corners of Congress despite opposition by top lawmakers, including Rep. Nancy Pelos, D-Calif., during her tenure as Speaker of the House.
Rep. Brian Fitzpatrick, R-Pa., the co-chair of the centrist Bipartisan Problem Solvers Caucus, introduced the bill alongside the face of the progressive movement in the House, Rep. Alexandria Ocasio-Cortez, D-N.Y., far-right Republican Rep. Matt Gaetz, R-Fla., and relative moderate Rep. Raja Krishnamoorth, D-Ill.
“The fact that Members of the Progressive Caucus, the Freedom Caucus, and the Bipartisan Problem Solvers Caucus, reflecting the entirety of the political spectrum, can find common ground on key issues like this should send a powerful message to America,” Fitzpatrick said in a statement. “We must move forward on issues that unite us, including our firm belief that trust in government must be restored, and that Members of Congress, including their dependents, must be prohibited from trading in stocks while they are serving in Congress and have access to sensitive, inside information.”
The bill, dubbed the “Bipartisan Restoring Faith in Government Act” would ban members of Congress, their spouses, and dependents from investing in securities, such as stocks and bonds, or commodities, such as oil or gold or agricultural products. Alternatively, federal lawmakers could place their investments in a blind trust run by someone who does “not have a close personal or business relationship” with the Senator or House member whose portfolio they oversee.
Lawmakers and their spouses would have 90 days from the bill’s signing to divest or place their investments in a blind trust. The Senate and House’s ethics offices would be required to inform the Department of Justice of noncompliance and the Attorney General would then be tasked with pursuing civil cases with penalties as high as $50,000. Fines could not be paid with campaign or official funds if the bill passes.
Exceptions to the restrictions would include “a widely held investment fund,” like a mutual fund or pension plan, U.S. Treasury bonds and federal retirement plans.
“When Members have access to classified information, we should not be trading in the stock market on it. It’s really that simple,” Ocasio-Cortez said. Krishnamoorthi added his congressional colleagues “must be focused on their constituents, not their stock portfolios.”
Ocasio-Cortez and Gaetz backed similar legislation written by Krishnamoorthi last session, but the bill died in committee. Other bipartisan efforts in the House and Senate faced similar fates, including one backed by Fitzpatrick and Gaetz.
“AOC is wrong a lot, she would probably say the same thing about me, but she is not corrupt,” Gaetz said on Fox News Tuesday. “And I will work with anyone and everyone to ensure that Congress is not so compromised.”
According to their most recent financial disclosures, Ocasio-Cortez has not directly purchased stocks during her tenure in Congress, while Gaetz sold between $65,000 and $150,000 in stocks in 2019, but had not purchased any as of 2021. In 2020, Krishnamoorthi held “restricted shares” of Sphere Commerce, a healthcare payment software company, after they purchased another company he was invested in. Fitzpatrick appears to have never held stock while in Congress.
The trading of stocks by members of Congress has drawn increasing scrutiny in recent…
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