House Approves Limited Congressional Stock Purchase Ban Paired With Federal Voter ID Requirement
On Wednesday, July 22, 2026, the House passed the Stop Insider Trading Act, banning members of Congress from buying publicly traded stocks in a 232-198 vote.[1]
The bill bars members of Congress, their spouses, and dependent children from purchasing publicly traded stocks, but lets lawmakers keep and sell existing holdings with no divestiture requirement.[1] It requires lawmakers to disclose each intended stock sale at least seven days in advance to the House clerk or the Senate secretary.[1] Violations carry a civil penalty of $2,000 or 10% of the transaction value, whichever is greater, plus forfeiture of any realized gains.[1] Democrats including Rep. Joe Morelle and Rep. Pramila Jayapal called the measure a "fake stock trading ban" because it allows ownership and liquidation of current portfolios and does not cover the president or administration officials.[1] House Republicans hailed the vote, while Democrats said the package was actually a vehicle for a federal voter ID requirement.[2]
Speaker Mike Johnson moved the measure after he agreed to work with Rep. Bryan Steil following Rep. Anna Paulina Luna's discharge petition pressing GOP leaders for a stricter bipartisan ban.[1] Luna's Restore Trust in Congress Act remained far from the 218 signatures needed, while Rep. Morelle's Restore Trust in Government Act had gathered more support but still fell short.[1] A separate Senate bill led by Sen. Josh Hawley that would bar stock ownership by lawmakers and top executive officials advanced out of committee last year but has since stalled.[1]
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📌 Key Facts
- On Wednesday, July 22, 2026, the House passed the Stop Insider Trading Act on a 232-198 vote, with 13 Democrats joining all Republicans in support (Stop Insider Trading Act).
- The bill would prohibit members of Congress, their spouses, and dependent children from purchasing publicly traded stocks while allowing them to keep and sell all existing holdings with no divestiture requirement (members of Congress).
- The legislation requires lawmakers to publicly disclose each intended stock sale at least seven days in advance to the House clerk or Senate secretary (House clerk or Senate secretary).
- Penalties for violations are set at $2,000 or 10% of the transaction value, whichever is greater, plus forfeiture of any realized gains from the sale (Penalties for violations).
- Democratic critics, including Rep. Joe Morelle and Rep. Pramila Jayapal, called the measure a "fake stock trading ban" because it permits continued ownership and liquidation of current portfolios and does not cover the president or administration officials (Rep. Joe Morelle).
- The measure was the product of Speaker Mike Johnson's decision to work with Rep. Bryan Steil after Rep. Anna Paulina Luna's discharge petition for a stricter bipartisan ban pressured GOP leaders (Speaker Mike Johnson).
- The report provides context on competing discharge petitions: Luna's Restore Trust in Congress Act remained far from the 218 signatures needed, while Rep. Morelle's Restore Trust in Government Act had gathered more support but still fell short (Restore Trust in Congress Act).
- A prior Senate bill led by Sen. Josh Hawley to bar stock ownership by lawmakers and top executive officials advanced out of committee last year but has since stalled (Sen. Josh Hawley).
📰 Source Timeline (2)
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- On Wednesday, July 22, 2026, the House passed the Stop Insider Trading Act 232-198, with 13 Democrats joining all Republicans in support.
- The bill would prohibit members of Congress, their spouses, and dependent children from purchasing publicly traded stocks, but allows them to keep and sell all existing holdings with no divestiture requirement.
- The legislation requires lawmakers to publicly disclose each intended stock sale at least seven days in advance to the House clerk or Senate secretary.
- Penalties for violations are set at $2,000 or 10% of the transaction value, whichever is greater, plus forfeiture of any realized gains from the sale.
- Democratic critics including Rep. Joe Morelle and Rep. Pramila Jayapal argued the bill is a "fake stock trading ban" because it permits continued ownership and liquidation of current portfolios and does not cover the president or administration officials.
- The article details that the measure is the product of Speaker Mike Johnson's decision to work with Rep. Bryan Steil after Rep. Anna Paulina Luna's discharge petition on a stricter bipartisan ban pressured GOP leaders.
- Context is provided on competing discharge petitions: Luna's Restore Trust in Congress Act, far from the 218 signatures needed, and Rep. Morelle's Restore Trust in Government Act, closer but still short.
- The piece notes a prior Senate bill led by Sen. Josh Hawley to bar stock ownership by lawmakers and top executive officials advanced out of committee last year but has since stalled.