Speaker Mike Johnson (R-La.) expressed help Wednesday for banning members of Congress from buying and selling particular person shares, whereas noting the counterarguments on monetary difficulties that members face.
The remarks are essentially the most substantial feedback he has made on the proposal thus far.
“I’m in favor of that, because I don’t think we should have any appearance of impropriety here,” Johnson mentioned in a press convention Wednesday when requested about congressional inventory buying and selling ban proposals.
The push to bar inventory buying and selling for members of Congress has gained steam lately amid stories of lawmakers benefiting from trades made earlier than market downturns or upswings, regardless of legal guidelines prohibiting lawmakers from buying and selling on insider data. Most lately, lawmakers got here underneath scrutiny for trades made earlier than President Trump introduced a pause on sweeping tariffs, leading to a market upswing.
However there may be resistance to the thought. The Speaker acknowledged that these against the thought be aware the wage for members of Congress has been frozen since 2009, amounting to round a 30 % pay lower when adjusting for inflation. Most members make a wage of $174,000, whereas the Speaker makes $223,500, and different high get together leaders make $193,400.
“If you stay on this trajectory, you’re going to have less qualified people who are willing to make the extreme sacrifice to run for Congress,” Johnson mentioned. “I mean, just people just make a reasonable decision as a family on whether or not they can come to Washington and have a residence here, residence at home, and do all the things that are required. So the counterargument is, and I have some sympathy, ‘Look, at least let them, like, engage in some stock trading, so that they can continue to, you know, take care of their family.’”
However “on balance,” Johnson mentioned, “we probably should” ban inventory buying and selling “because I think it’s been abused in the past, and I think sadly, a few bad actors discolor it for everyone.”
There may be bipartisan help for laws to ban members of Congress and their spouses from buying and selling shares, and it’s a uncommon difficulty that unites progressives and hard-line conservatives.
Members of the Home Freedom Caucus board who had withheld help for Johnson for Speaker again in January launched a letter on the time saying they anticipated Johnson to place ahead laws to finish inventory buying and selling by members of Congress.
Johnson, although, didn’t decide to bringing such laws for a vote.
“Look, we have no tolerance for anything even resembling insider trading or any of this kind of advantage that anybody could take. Zero tolerance for it, and we’ll stamp it out ourselves,” Johnson mentioned.
“We’ll see where it lands,” he mentioned of the talk.
Home Minority Chief Hakeem Jeffries (D-N.Y.) lately reiterated his help for a congressional inventory buying and selling ban.
“We do need to change the law so that sitting members of Congress cannot trade stock, period. Full stop,” Jeffries mentioned on MSNBC final month.
One main proposal to ban congressional inventory buying and selling is the Clear Illustration Upholding Service and Belief in Congress Act, which might require not solely sitting members themselves but additionally their spouses and dependents to place sure sorts of funding belongings right into a blind belief. Lawmakers, led by Reps. Chip Roy (R-Texas) and Seth Magaziner (D-R.I.) reintroduced that invoice in January.
And final yr, the Senate Homeland Safety and Authorities Affairs Committee superior the Ending Buying and selling and Holdings in Congressional Shares Act, which might ban members of Congress, their spouses and dependent youngsters from buying and selling shares. However it didn’t cross the complete Senate.
