Key Insights
- Trump recently pushed to ban stock trading among members of Congress. However, he opposes being included in it.
- The so-called bipartisan “Honest Act” is likely to face Republican resistance, especially over its coverage of the executive branch.
- Senator Josh Hawley, co-sponsor of the bill, says Trump was misinformed about its details.
The White House recently announced that U.S. President Donald Trump supports banning members of Congress from Stock trading. The ongoing debate has entered a new phase, and Trump is now in the middle.
Public demand for financial transparency is heating up, and this bipartisan bill, known as the “Honest Act,” is gaining traction. However, Trump’s mixed signals and GOP resistance are creating tension. This is making it unclear whether this effort will succeed.
Trump Supports The Ban in Words, Not in Action
Trump has long claimed to support the ban against stock trading for public officials. Earlier this week, he said he “conceptually” backs the idea.
The Honest Act advanced through a Senate committee with support from both parties. However, at that time, Trump lashed out at Senator Josh Hawley, one of the bill’s sponsors.
The president criticized Hawley for working with Democrats and not exempting him from the new rule. He even went as far as calling Hawley a “second-rate Senator.”
According to Hawley, this criticism came from misinformation about the president. Some GOP senators allegedly told Trump the bill would force him to sell his assets, including Mar-a-Lago. “That’s not true”, Hawley said to Business Insider.
The bill would not require Trump to sell any of his holdings during his current term. It would only prevent him from buying any new stocks.
What’s Really At Stake With the Honest Act?
The Honest Act was co-sponsored by Hawley (R-MO) and Gary Peters (D-MI). It is designed to restore public trust in government.
It would ban individual stock trades by members of Congress, the president, the vice president, and their spouses. If passed, these officials would need to divest from individual stocks by the start of their next term.
The bill was inspired by growing public anger over lawmakers making stock trades during critical times. One example is the early COVID-19 pandemic, when such actions raised ethical concerns. Critics say current disclosure rules aren’t enough to prevent conflicts of interest.
As a result, supporters of the bill argue that a complete ban is necessary. “Ethics should apply to the president and the Congress,” said Senator Peters.
GOP Resistance Grows as Trump Weighs In
Even though the bill passed out of committee, most Republicans oppose it. Many are worried that the new law was rushed or crafted to target Trump unfairly.
Others, like Senator Rick Scott, object to applying the same to the president. However, they support banning stock trading for Congress,
Scott said, “We don’t want people using inside information in Congress to make a profit on stocks like Nancy Pelosi. Why don’t we focus on that?”
Ironically, Hawley’s original version of the bill, the “PELOSI Act,” didn’t include the president or vice president. However, when many Republicans refused to back the proposal, Hawley turned to Democrats.
He agreed to broaden the bill’s scope to align with a similar bipartisan proposal from the prior year. In return, he secured support from lawmakers backing that earlier effort.
Where Things Stand: Support, Resistance, and Uncertainty
As of now, there are no indicators of whether the Honest Act will reach a full vote in the Senate. Senate Republican Leader John Thune has mentioned he might not bring it to the floor. This is especially when only one Republican votes to advance it from the committee.
Even within the inner circle of Trump, passing the bill could be tricky. Some aides continue to insist that he still supports a ban in theory. However, the former president hasn’t clarified whether he will back this version of the bill. This would restrict his ability to trade stocks.
