Lawmakers' stock portfolios continued to outperform the broader market despite stalled congressional stock trading bans, a new report from Unusual Whales reveals. The report highlights potential conflicts of interest, as some lawmakers' holdings appear to benefit from their legislative work.
Democratic lawmakers saw gains of 31 percent, while Republicans saw a 26 percent increase, exceeding the S&P 500's 24.9 percent rise. The report also points to a number of instances where lawmakers' stock holdings seemingly align with the work of their committees and legislative responsibilities.
"The practice of lawmakers trading stocks while shaping policies is inherently problematic," stated Unusual Whales in their report. "This situation, whether or not based on insider knowledge, erodes public trust due to the appearance of potential abuse."
Speaker Emerita Nancy Pelosi's husband's portfolio surged nearly 71 percent in 2024, according to the report. This comes as Pelosi has previously defended congressional stock trading, citing principles of a "free market economy." This position has drawn significant criticism.
Rep. David Rouzer's (R-N.C.) portfolio experienced the most substantial gains, rising 149 percent, primarily due to Nvidia stock purchases from years prior. Rouzer's office asserts he is not an active trader and adheres to all financial reporting regulations.
Other lawmakers, however, are more actively involved in stock market transactions, with some engaging in "numerous unusual trades," according to the report. For example, Rep. Debbie Wasserman Schultz (D-Fla.) purchased shares in satellite operator Viasat, a company receiving substantial government contracts, while serving on the House Appropriations subcommittee on military construction. Rep. Dan Newhouse (R-Wash.), a member of the Homeland Security subcommittee, bought shares of RTX (formerly Raytheon), a major federal contractor.
These examples highlight the potential for conflicts of interest and questions about transparency and ethical conduct. While the 2012 STOCK Act mandates financial disclosures and prohibits trading on non-public information, enforcement remains lax, raising concerns about potential loopholes and lack of accountability. No member of Congress has ever been prosecuted for violating the act, even amidst reports of stock dumping related to the pandemic. Furthermore, no congressional stock trading ban legislation has been voted on in either a Democrat- or Republican-controlled House since 2020.
President Biden, breaking with past political positions, recently called for a ban on congressional stock trading. His stance reflects growing public dissatisfaction with the lack of oversight in this area.
