US Capitol Building at sunset in Washington DC, USA, December 23, 2025.
Tyrone Siu | Reuters
Under the bill, which is scheduled for a first vote on Wednesday, lawmakers could face a ban on new stock purchases.
But hurdles remain, including opposition from most Democrats who say the bill does not go far enough to prevent insider trading among members.
The bill’s main sponsor, Rep. Brian Still (R-Wis.), chairs the House Administration Committee, which is scheduled to vote and adopt the bill on Wednesday.
“Congressmen shouldn’t day trade stocks,” Steil said in an interview with CNBC. “Do you want to day trade? There’s a place where you can do it, it’s called Wall Street.”
House Minority Leader Steve Scalise (R-Louisiana) told CNBC that he plans to bring the bill to the floor for a vote if it passes out of committee. It is unclear whether the bill will be able to pass the entire House. House Democratic leaders have not yet considered the bill, and lawmakers expect them to introduce amendments to strengthen the bill with Wednesday’s increases.
Mr. Steil’s bill would water down previous efforts to ban insider trading among members of Congress. This measure will allow lawmakers to continue holding the stocks they held at the time they were elected. Members could sell their shares by giving public notice seven days in advance. Lawmakers will be able to buy and sell commodities, futures and diversified funds, and use stock dividends to buy more of their holdings.
Steil’s bill would also increase fees for violations, with penalties increasing to $2,000 or 10% of the transaction amount, whichever is greater, or the net profit from the transaction.
Rep. Joe Morrell of New York, the top Democrat on the House Administration Committee, called the bill a “quarter bill.”
“This is a way to make people believe that the problem is resolved,” he told CNBC in an interview at the Capitol. “There are too many ways around this. Essentially, if you have a lot of wealth and you come to Congress, you can keep having a lot of wealth. And that’s not what we want.”
Mr. Steil dismissed concerns that the bill was not as advanced as others, saying killing bills deemed “not sufficiently sufficient” would hinder progress on the issue.
“I call this the Goldilocks argument. The porridge is too cold. The porridge is too hot,” he said. “This is an opportunity to say yes or no. Do you think members of Congress should trade stocks during their elected terms?”
Democrats have their own plans. Morrell said he intends to file an expulsion petition to force a vote on a bill he and Rep. Seth Magaziner (DR.I.) would ban, as well as members of Congress, from stock trading, as well as the president and vice president.
