In a narrow 8-7 vote, the Senate Homeland Security and Governmental Affairs Committee has approved the Honest Act, previously known as the PELOSI Act, a bill aimed at banning members of Congress, their spouses, and top executive branch officials from trading or holding individual stocks. Spearheaded by Senator Josh Hawley, the legislation seeks to curb potential conflicts of interest by requiring lawmakers to divest their stock holdings within 180 days of taking office or face penalties, including forfeiture of profits to the U.S. Treasury.
The bill’s passage, supported by Hawley and Democrats, faced resistance from most Republicans, who argued it could deter wealthy individuals from public service. A compromise amendment exempts President Donald Trump and Vice President JD Vance from divestment until 2029, sparking debate over fairness. Committee Chair Rand Paul criticized the exemption, calling it a flawed concession, while Hawley defended the bill as a step toward restoring public trust.
Originally named to spotlight former House Speaker Nancy Pelosi’s substantial stock gains, the bill was renamed the Honest Act during negotiations. Pelosi, whose net worth has drawn scrutiny, recently voiced support for such reforms, though critics question her past opposition. The legislation also mandates annual compliance certifications and biennial audits by the Government Accountability Office.
While the bill’s fate in the Republican-controlled Senate remains uncertain, its advancement marks a significant push for transparency. Advocates argue it addresses public outrage over perceived insider trading, while opponents warn of unintended consequences for congressional diversity.
