Senate Panel Approves Stock Trading Ban for Lawmakers and Executives — But Trump Exempted

A Senate committee narrowly advanced a bill Wednesday that would ban lawmakers, presidents, and vice presidents from trading or holding individual stocks — but with a carve-out that exempts President Donald Trump, thanks to a provision limiting the ban to future terms in office.

The legislation, led by Sen. Josh Hawley (R-MO), passed the Senate Homeland Security and Governmental Affairs Committee by a tight 8-7 margin. Democrats joined Hawley to push it through, while most Republicans on the panel opposed the bill over fairness concerns and the potential for unintended consequences.

“Americans have watched politicians earn a fortune using information not available to the general public while the average family struggles to get by. It’s just wrong,” Hawley said. “Members of Congress should be focused on delivering results for their constituents, not returns on investments.”

Nicknamed the “Pelosi Act” after former Speaker Nancy Pelosi’s market performance, Hawley’s bill originally focused on lawmakers and their spouses, allowing only diversified investment options like mutual funds, ETFs, or Treasury bonds. Trump previously indicated support for the bill.

But to gain Democrat backing, an amendment was added to include the president and vice president in the ban. However, after the White House raised constitutional concerns about restricting the sitting president under Article II, the committee adopted a version applying only to future terms. That technical change means the law would not impact Trump, who is already serving his second term.

The exemption drew fire from Senate Republicans who had opposed the bill in the first place.

“I don’t think anyone should be exempt,” said Sen. Rand Paul (R-KY), who chairs the committee. “If you’re going to pass something like this, apply it equally. Not just to certain parties or positions — and not just when it’s politically convenient.”

Sen. Ron Johnson (R-WI) echoed that sentiment, calling the bill “legislative demagoguery.” He noted that insider trading laws and financial disclosures already exist, and warned the ban could discourage private-sector professionals from seeking office.

Still, the measure now heads to the full Senate, where Republicans hold a 53-seat majority. Its fate may depend on whether enough GOP senators agree with Hawley and others who see stock trading bans as a trust-building reform.

Sen. Elissa Slotkin (D-MI), who supported the bill despite the Trump exemption, said the vote was a step toward regaining public confidence. “The American people think ALL politicians, Democrats and Republicans, use our position to enrich ourselves,” she posted. “It’s not perfect, but it’s a good first step.”

The issue is also gaining momentum in the House. Rep. Anna Paulina Luna (R-FL) has pledged to force a vote on a companion measure, making it clear that banning congressional stock trades is becoming a bipartisan rallying cry.

“Even if no laws are broken, the appearance of profiting from this access fuels distrust among Americans,” Luna said. “The American people do not trust the U.S. government — and banning stock trading is a step forward to building that trust.”

The legislation’s path forward is now in the hands of Senate GOP leadership, who must weigh growing public support for reform against concerns over selective enforcement and constitutional overreach. Whether the full Senate acts quickly — and whether the House follows suit — remains to be seen. But with Trump signaling support and Hawley pressing hard, the pressure is mounting to finally address one of the swamp’s most glaring loopholes.