In a pointed call for legislative action during his State of the Union address, former President Donald Trump urged Congress to swiftly pass the Stop Insider Trading Act, emphasizing the need to curb what he described as corrupt practices among lawmakers. Speaking to a joint session of Congress on Tuesday evening in the U.S. Capitol, Trump declared, "Members of Congress cannot corruptly profit from using insider information." The remark, delivered amid broader discussions on ethics and governance, highlighted ongoing concerns about financial conflicts in Washington.
The Stop Insider Trading Act, formally known as H.R. 3799 in the House and S. 2078 in the Senate, aims to prohibit members of Congress, their spouses, and dependent children from buying or selling stocks or other securities while in office. Introduced in the 117th Congress by a bipartisan group of lawmakers including Rep. Chip Roy, R-Texas, and Sen. Jon Ossoff, D-Ga., the bill seeks to close loopholes that allow elected officials to trade based on non-public information gained through their positions. According to legislative records, similar measures have been debated for years, with renewed urgency following high-profile cases of congressional stock trading during the COVID-19 pandemic.
Trump's endorsement came as part of a larger address that touched on economic recovery, border security, and election integrity, but the insider trading push stood out for its direct challenge to the assembled lawmakers. "Pass the Stop Insider Trading Act without delay," Trump said, according to a transcript released by the White House press office. His words drew applause from Republican members of the audience, while some Democrats shifted uncomfortably, reflecting the partisan divide on ethics reforms.
Background on the issue traces back to revelations in recent years that dozens of members of Congress have engaged in stock trades that outperformed the market, raising questions about the use of privileged information. A 2022 New York Times analysis found that at least 97 members of Congress and their families traded stocks worth up to $1.2 billion in 2021 alone, with many bets aligning suspiciously with legislative actions. The Stop Insider Trading Act would impose penalties including fines up to 300% of the profit gained or loss avoided, and it has garnered support from over 70% of voters in national polls conducted by Quinnipiac University last fall.
Supporters of the bill, including ethics watchdogs, argue that it is essential for restoring public trust in government. "Congress has dragged its feet on this for too long," said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington (CREW), in a statement following the speech. "Trump's call is a reminder that even across the aisle, there's agreement that lawmakers shouldn't be playing the stock market with inside tips." CREW has tracked over 3,000 potentially problematic trades by members since 2019.
Critics, however, point to implementation challenges and potential overreach. House Speaker Nancy Pelosi, D-Calif., has previously downplayed the need for such restrictions, arguing in a 2021 interview that members' investment decisions are protected under the First Amendment. "We can't be in the business of telling people what they can do with their private investments," Pelosi said at the time, according to CNN reports. While the bill has bipartisan backing, it stalled in committee last session, with some Republicans expressing concerns about burdensome disclosure requirements.
Trump's intervention adds momentum at a critical juncture, as the 118th Congress reconvenes with a slim Republican majority in the House. Rep. Roy, a co-sponsor, welcomed the former president's support in a post-speech interview with Fox News. "This is exactly the kind of push we need to get it across the finish line," Roy said. "Insider trading erodes faith in our institutions, and it's time to act." The bill is slated for reintroduction in the coming weeks, with hearings potentially scheduled for March.
The State of the Union address itself unfolded against a backdrop of political tension, with Trump delivering his remarks just days after a contentious midterm election that saw Republicans regain control of the House. Attendees included Vice President Kamala Harris, seated behind Trump as per tradition, and Supreme Court justices, who listened stone-faced to portions on judicial reform. The Capitol was secured by over 2,000 National Guard troops, a measure heightened following the January 6, 2021, riot.
Beyond the insider trading call, Trump's speech wove in anecdotes from his administration, including economic gains pre-pandemic and criticisms of current policies. He referenced the STOCK Act of 2012, which requires disclosure of trades but has been criticized as insufficient, with enforcement by the Office of Congressional Ethics yielding few penalties. According to a Government Accountability Office report from 2023, only 15 investigations into potential violations have been completed since the law's passage, resulting in just two fines totaling $25,000.
Public reaction to Trump's urging was swift on social media, with #StopInsiderTrading trending nationwide by Wednesday morning. Advocacy groups like Issue One, which pushes for campaign finance reform, praised the moment as a rare bipartisan opportunity. "This could be a legacy issue that transcends party lines," said Noah Bookbinder, the group's president, in an email to reporters. Polling from Pew Research Center indicates that 85% of Americans support banning stock trading by members of Congress, cutting across demographic lines.
Yet, obstacles remain. Senate Majority Leader Chuck Schumer, D-N.Y., has signaled openness to the bill but tied it to broader ethics packages, including limits on dark money in elections. "We'll take a look, but it has to be part of a comprehensive approach," Schumer told reporters after the address. On the Republican side, some fiscal conservatives worry about the administrative costs, estimated at $5 million annually by the Congressional Budget Office.
The push also intersects with recent scandals, such as the 2020 trades by Sen. Richard Burr, R-N.C., who sold up to $1.7 million in stocks shortly before the market crashed due to COVID-19 news. Burr was cleared by the Justice Department, but the episode fueled calls for reform. Similarly, Rep. Nancy Mace, R-S.C., faced scrutiny for trades in tech stocks amid antitrust discussions, though she denied wrongdoing.
As Congress debates the measure, experts predict a tough road ahead. "Bipartisan bills on ethics often wither under lobbying pressure," noted Larry Noble, former general counsel to the Federal Election Commission, in a commentary for Politico. Still, Trump's high-profile endorsement could sway undecided lawmakers, particularly in competitive districts.
Looking forward, passage of the Stop Insider Trading Act could set a precedent for stricter financial regulations on public officials, potentially extending to the executive branch. With midterm elections looming in 2024, the issue may become a litmus test for voter priorities on corruption. For now, advocates on both sides await the next moves from Capitol Hill, where the speech's echoes still resonate.
In the broader context of Trump's post-presidency influence, this call underscores his continued sway over the GOP agenda. As the party eyes reclaiming the White House, ethics reforms like this could appeal to independents disillusioned by Washington insiders. Whether it translates to action remains to be seen, but the urgency Trump injected into the chamber Tuesday night has undeniably elevated the conversation.