Representatives Chip Roy, R-Texas, and Seth Magaziner, D-Rhode Island, introduced bipartisan legislation Monday aimed at prohibiting members of Congress and their families from trading individual stocks and other financial assets.
The bill, H.R. 5106, known as the Restore Trust in Congress Act, consolidates several previously proposed measures addressing stock trading by elected officials.
It would bar members, their spouses, dependent children, and trustees from owning or trading individual stocks, commodities, futures, or comparable financial interests, with exceptions for widely held mutual funds, ETFs, government bonds, small business interests and certain other assets.
Under the legislation, current members of Congress would have 180 days to divest prohibited holdings, while incoming members would have 90 days.
Investments received through inheritance, marriage, or other circumstances must be divested within 90 days of acquisition.
Members could apply to the supervising ethics office for extensions if an asset cannot be divested due to low liquidity, vesting schedules, or contractual restrictions.
Capital gains taxes may be deferred through a Certificate of Divestiture process.
Violations would trigger penalties enforced by the supervising ethics office, including fines equal to 10% of the asset’s value and disgorgement of profits.
Members could not use office or campaign funds to pay these fines, which would instead be deposited into the U.S. Treasury.
The ethics office would publicly disclose all fines and disciplinary outcomes.
Roy said the legislation “ensures that members of Congress will no longer be able to put the stock market first in their official decisions,” emphasizing that the bill is “easy to comply with” while closing loopholes. Magaziner called it “our best chance at finally getting it done,” highlighting the need to prevent conflicts of interest.
Lawmakers from both parties, including Reps. Pramila Jayapal, D-Wash., Alexandria Ocasio-Cortez, D-N.Y., Brian Fitzpatrick, R-Pa., Anna Paulina Luna, R-Fla., and Tim Burchett, R-Tenn., voiced support for the legislation, stressing public trust, accountability and transparency as central concerns.
The Restore Trust in Congress Act is intended to prevent members from using insider information or government influence to benefit personal financial interests, aiming to restore confidence in Congress at a time when public trust in government is historically low.
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