Sen. Josh Hawley has sponsored a new bill, and its name is sparking conversation. The bill is the PELOSI Act, for short. The goal is to make the elected politicians more ethical, even if it is against their will.
S.58 – Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act
This bill prohibits Members of Congress (or their spouses) from holding or trading certain investments (e.g., individual stocks and related financial instruments other than diversified investment funds or U.S. Treasury securities).
The prohibition does not apply to assets held in a qualified blind trust or to sales by a Member to come into compliance with the bill’s requirements. Specifically, the bill allows for sales by current Members during the 180 days following the bill’s enactment and for sales by future Members during the 180 days following the commencement of their service.
Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the Member to a civil fine. Additionally, a loss stemming from a prohibited holding or transaction may not be used as an income tax deduction.
Each Member must submit an annual certification of compliance, and the Government Accountability Office must audit Members’ compliance with the bill’s provisions.
Too many Congresspeople leave their positions wealthy, seemingly from insider trading. That isn’t a proper incentive to get the right people. It’s bad enough that lying helps politicians get elected.
One of the politicians I helped went to Congress as a new congressman for training, thinking he would learn how to do the job better. All the panels focused on how to raise money. That is another problem. Two years as a congressman is too short a term. The richest politicians shouldn’t be able to buy their positions.
Some politicians make money in other ways, but this is one area where we can take action. Support the Pelosi Act. Pelosi is worth more than $240 million. Her husband is a venture capitalist.
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