❓WHAT HAPPENED: Republican Representative Bryan Steil’s “Stop Insider Trading Act” passed the House Administration Committee without any Democrat support and moves to the House floor.
👤WHO WAS INVOLVED: Rep. Bryan Steil (R-WI), Democrat committee members, and other lawmakers.
📍WHEN & WHERE: House Administration Committee markup session on January 14, 2026.
💬KEY QUOTE: “The focus of the bill is to prohibit insider trading, not to make elected officials poor.” – Rep. Bryan Steil
🎯IMPACT: The bill aims to restrict insider trading among members of Congress while allowing certain investments.
Representative Bryan Steil (R-WI) advanced his “Stop Insider Trading Act” out of the House Administration Committee without support from a single Democrat, clearing the way for consideration by the full House. The proposal would prohibit members of Congress from purchasing individual stocks and require lawmakers to give seven to 14 days’ notice before selling securities. Investments in index and mutual funds would still be allowed, as would the reinvestment of dividends from previously owned assets.
Democrats claim the bill fails to fully address conflicts of interest arising from lawmakers trading stocks. During a two-hour markup session, Rep. Joe Morelle (D-NY) proposed requiring “Congress and the President and the Vice President” to fully divest from individual securities. Rep. Julie Johnson (D-TX) introduced an amendment mandating complete divestment without exemptions for capital gains taxes.
Steil rejected those proposals, cautioning that mandatory divestment could discourage 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 financial burden could cause “some individuals… to not come to Congress—and not because they did anything wrong, but because they had a successful private sector career.”
Democrats 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 arguing that dividend income does not present 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,” he said. He added, “The focus of the bill is to prohibit insider trading, not to make elected officials poor.”
Despite the disagreement over Steil’s bill, 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, stating that insider trading occurs among Democrats as well as Republicans and contributes to widespread cynicism about Washington.
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