Overview
- The House Administration Committee approved the Stop Insider Trading Act on a 7-4 party-line vote, sending the bill to the full House with backing from Speaker Mike Johnson and Majority Leader Steve Scalise.
- The proposal would bar members of Congress, their spouses, and dependent children from buying new individual stocks while allowing existing holdings and trades in diversified funds, with public notice required 7 to 14 days before any sale.
- The bill preserves several carve-outs cited by critics, including allowing use of dividends to purchase additional shares and permitting certain investments such as commodities, while excluding the executive branch from coverage.
- Violations would trigger fines of $2,000 or 10% of a transaction’s value, whichever is greater, plus any net gains, with unpaid penalties eligible for referral to the Department of Justice by ethics offices.
- Committee Democrats’ amendments to extend the ban to the president, vice president, judges, and senior staff and to prohibit ownership outright were rejected, as they prepare a discharge petition and tout a bipartisan alternative that would require full divestment; Senate prospects remain uncertain despite earlier committee action there.