# Plain Language Summary: The PELOSI Act

This bill would ban members of Congress from owning individual stocks, bonds, and other securities while they're in office. Instead of holding these investments directly, lawmakers would have to put their money into broad investment funds like index funds or mutual funds that they don't actively manage. The goal is to prevent members of Congress from making investment decisions based on inside information they gain through their work in government, or from voting on laws that could personally benefit their stock portfolios.

The bill applies to all members of the House and Senate, as well as their spouses and dependent children. If a member of Congress receives stocks through inheritance or other means, they'd have a set period of time to sell them or move them into an approved investment fund. The law would include some exceptions for things like retirement accounts and certain family-owned businesses, but the core idea is straightforward: elected officials shouldn't be able to personally profit from stocks while they're making decisions that affect the entire economy.

The practical effect would be significant for wealthy lawmakers who currently hold stock portfolios. A member of Congress who owns shares in a pharmaceutical company, for example, would have to divest those holdings rather than potentially voting on healthcare legislation that could affect that company's profits. Supporters argue this removes a conflict of interest and prevents insider trading. Critics might worry about the burden on lawmakers' personal finances or question whether it would actually solve the problem of political corruption. Either way, if passed, this would fundamentally change how members of Congress can invest their personal wealth.

Preventing Elected Leaders from Owning Securities and Investments (PELOSI) Act

Hawley, Josh

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. Each Member must submit an annual certification of compliance, and the Government Accountability Office must audit Members' compliance with the bill's provisions.