Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act
Summary
HB3388, titled the Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act, would prohibit Members of Congress and their spouses from holding, buying, or selling most covered financial instruments during the member’s term of service. Covered financial instruments include individual securities, security futures, commodities, and comparable economic interests obtained through synthetic means such as options, warrants, or similar derivatives. The bill excludes diversified mutual funds, diversified exchange-traded funds, U.S. Treasury bills, notes, and bonds, and compensation earned by a spouse or dependent child from their primary occupation.
The bill creates a divestment period for existing holdings: members already serving on enactment would have 180 days to sell covered assets, and new members would have 180 days from the start of their first term. It also requires annual written certifications of compliance, public posting of those certifications, and authorizes the House and Senate ethics committees to issue guidance, grant limited extensions for good-faith divestment efforts, and assess civil fines for violations. Profits from prohibited transactions must be disgorged to the Treasury, and the Government Accountability Office would be required to audit compliance within two years of enactment.
Impact
If enacted, the bill would add a new subchapter to chapter 131 of title 5 of the U.S. Code and would materially expand federal ethics restrictions on financial holdings by sitting Members of Congress and, in some cases, their spouses. It would also require conforming changes to existing House and Senate financial disclosure-related provisions and shift enforcement responsibilities to the House Committee on Ethics and the Senate Select Committee on Ethics, with public reporting and GAO oversight built into the framework.
Sentiment
Based on the bill text and available context, the overall sentiment appears strongly reform-oriented and aimed at addressing public concerns about conflicts of interest, insider trading, and congressional stock ownership. The bill’s title and structure suggest a deliberate effort to frame the measure as an anti-corruption and transparency reform. No committee debate or recorded votes are available in the provided context, so there is no documented legislative opposition or support beyond the introduction and referral stage.
Contention
The main points of contention are likely to be the breadth of the ban, the inclusion of spouses’ holdings, and the practical enforceability of the restrictions. Potential critics may argue that the bill is overly restrictive, could discourage qualified public service, or creates compliance and valuation challenges for members with complex assets. Supporters are likely to emphasize that the exclusions for diversified funds and Treasury securities make the proposal narrower than a total asset ban and that the public certification and ethics-committee enforcement provisions are necessary to prevent conflicts of interest.
Inaction Has Consequences Act This bill withholds the salaries of Members of a chamber of Congress that has not passed each of the annual appropriations bills before the beginning of the fiscal year, beginning with FY2024. Salaries are released on the earlier of (1) the date on which the chamber of Congress passes the bills, or (2) the last day of the Congress.
Citizen Legislature Anti-Corruption Reform of Congress Act or the CLEAN Congress Act This bill (1) requires bills, orders, resolutions, or votes submitted by Congress to the President to include only one subject that is clearly and descriptively expressed in the measure's title; and (2) makes ineffective any provision of law that excludes its application to a Member of Congress or to an employee in a Member's office.
Citizen Legislature Anti-Corruption Reform of Congress Act or the CLEAN Congress Act This bill (1) requires bills, orders, resolutions, or votes submitted by Congress to the President to include only one subject that is clearly and descriptively expressed in the measure's title; and (2) makes ineffective any provision of law that excludes its application to a Member of Congress or to an employee in a Member's office.