# 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 picking their own investments, lawmakers would be required to put their money into broad investment funds like index funds or mutual funds that they don't actively manage. The idea is to prevent politicians from making investment decisions based on inside information they learn through their work in Congress.

The bill targets a real concern: members of Congress have access to confidential information about government policies, upcoming legislation, and economic data before the public does. Someone could theoretically use that insider knowledge to buy or sell stocks right before an announcement that would affect those companies' values. This bill aims to eliminate that temptation by making it impossible for lawmakers to profit from individual company stocks based on what they learn on the job.

The restrictions would apply to members of Congress themselves, their spouses, and their dependent children. There would be some exceptions for things like retirement accounts, real estate, and family-owned businesses, but the core rule is clear: no picking individual stocks. Members would have a set period to sell off any stocks they currently own and move the money into approved investment vehicles. Violations could result in fines and other penalties.

This is part of a broader push to increase transparency and reduce conflicts of interest in government. The bill's nickname references former House Speaker Nancy Pelosi, whose family's stock trades drew public attention and criticism in recent years, though the bill would apply equally to all members of Congress regardless of party.

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. 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.