South Iowa News

Representatives Zach Nunn (IA-03), Chip Roy (TX-21), and Seth Magaziner (RI-02) have introduced the Restore Trust in Congress Act, a bipartisan bill that would prohibit Members of Congress and their immediate family members from owning or trading individual stocks while serving in office. The legislation seeks to address financial conflicts of interest by requiring lawmakers to divest from individual stocks and certain other investments, with only limited exceptions.

“This isn’t a red or blue issue. Banning stock trades in Congress is about accountability, and every American should demand it from their elected officials. After my combat service and election to Congress, I sold all my stock because Iowans deserve leaders who serve the public, not profit from insider information,” said Rep. Zach Nunn. “Last year alone, Members of Congress made over $200 million in market gains. Nancy Pelosi’s trades returned more than 40 percent. That’s what insider trading looks like, and it’s a betrayal of public trust. I’m proud to help lead this bipartisan effort to end self-enrichment in Washington, enforce real penalties, and restore trust in our institutions.”

Recent data shows that nearly 95% of Members of Congress held individual stocks in 2024 and reported returns surpassing those typically seen by average investors. While the S&P index gained about 25% last year, active congressional traders averaged returns of 31%, resulting in over $200 million in market gains for Members during 2024.

Members often preferred direct ownership of stocks instead of investing through mutual funds or exchange-traded funds (ETFs). The sectors with the largest congressional investments included Technology ($159 million), Financial Services ($72 million), and Energy ($44 million)—industries that are frequently subject to legislative action and lobbying efforts.

This situation has contributed to growing public distrust toward government officials when they outperform the market while holding assets related to industries under their oversight.

“It’s far past time to ban Members of Congress from day trading stocks, and for the first time, a bipartisan coalition is standing together behind a united proposal to do just that,” said Rep. Chip Roy. “The Restore Trust in Congress Act ensures that members of Congress will no longer be able to put the stock market first in their official decisions. This bill strikes a balance between being easy to comply with, but without tons of loopholes for Members to continue trading while on the job. We must vote on this bill and put this conflict of interest to bed for once and for all. I look forward to seeing the Restore Trust in Congress Act move through the legislative process.”

In addition to this measure, Rep. Nunn is also leading another bipartisan effort called the No Corruption in Government Act aimed at banning both Members of Congress and their spouses from holding or trading individual stocks, eliminating automatic annual pay raises for lawmakers, and extending lobbying bans after leaving office.

Full text of the proposed bill can be found here.