On July 30, 2025, the Senate Homeland Security and Governmental Affairs Committee passed a landmark bipartisan bill, known as the Honest Act, with an 8-7 vote, aimed at banning members of Congress, the president, vice president, and their spouses from trading or owning individual stocks.
This legislation, spearheaded by Senator Josh Hawley (R-Mo.) alongside Senators Gary Peters (D-Mich.), Jon Ossoff (D-Ga.), Jeff Merkley (D-Ore.), and Jacky Rosen (D-Nev.), marks a significant step toward addressing public concerns about lawmakers profiting from privileged information.
The bill, previously referred to as the PELOSI Act, passed with unanimous Democratic support and Hawley as the sole Republican in favor, highlighting both bipartisan cooperation and intraparty tensions. This article explores the details of the bill, its implications, and the debates surrounding its passage.
The Honest Act prohibits members of Congress, their spouses, and, in some versions, dependent children from purchasing, selling, or holding individual stocks, cryptocurrencies, and other covered investments.
Lawmakers would have 90 days after the bill’s enactment to cease buying new stocks, with a requirement to divest existing holdings by March 31, 2027, allowing time for compliance, particularly for those with extensive portfolios.
The legislation also extends these restrictions to the president and vice president, though a key amendment ensures that current officeholders, including President Donald Trump and Vice President JD Vance, are exempt from divestment requirements until the end of their terms, meaning Trump would not need to sell his assets, such as Truth Social stock, during his presidency.
This carve-out was a point of contention, with critics like Senator Rand Paul (R-Ky.) arguing it creates an uneven standard.
The bill replaces earlier proposals, such as the PELOSI Act, which was named after former House Speaker Nancy Pelosi due to scrutiny over her husband’s stock trades, though no evidence of insider trading was found.
The Honest Act removes this controversial title and expands its scope to include executive branch officials, a change that secured broader Democratic support. Unlike previous reform efforts that allowed blind trusts, this measure bans them, with Hawley arguing that their rules are too loose and difficult to enforce.
Instead, lawmakers are permitted to invest in diversified mutual funds or government bonds, which are seen as less prone to conflicts of interest. Non-compliance could result in fines of up to $50,000 per violation or, in some proposals, a penalty equivalent to a member’s monthly congressional salary.
Public support for banning congressional stock trading is overwhelming, with polls indicating over 80% of Americans, across party lines, back the measure. Advocates, including Senators Ossoff and Merkley, argue that the bill addresses the perception that lawmakers use nonpublic information to enrich themselves, eroding public trust in government.
A 2022 New York Times investigation found that nearly a fifth of lawmakers traded stocks related to their committee work, fueling calls for reform. The Honest Act aims to restore confidence by ensuring elected officials prioritize public interest over personal financial gain. However, Republican opponents, such as Senators Ron Johnson (R-Wis.) and Mitt Romney (R-Utah), contend that the bill could discourage wealthy individuals from seeking office and that existing insider trading laws are sufficient.
The bill’s passage through committee is a historic first, as previous efforts, including a 2022 House proposal, stalled due to loopholes or lack of leadership support. Despite this progress, the Honest Act faces significant hurdles, as it requires a full Senate vote and House approval to become law.
Republican opposition, with figures like Senator Rick Scott (R-Fla.) criticizing the process and defending wealth accumulation, suggests a challenging path forward. Additionally, President Trump’s mixed signals—initially expressing conceptual support but later attacking Hawley on Truth Social for allegedly aiding Democrats—complicate the bill’s prospects. The debate reflects broader tensions over transparency, ethics, and the role of wealth in politics, making the Honest Act a critical test of Congress’s commitment to reform.
In conclusion, the Honest Act represents a bold attempt to curb potential conflicts of interest in Congress and the executive branch, responding to long-standing public demand for ethical governance. While its passage through the Senate committee is a milestone, the narrow vote and vocal opposition underscore the challenges ahead. As the bill moves to the full Senate, its fate will depend on navigating partisan divides and leadership priorities, with the potential to reshape public trust in America’s elected officials.