Earlier in July, the Senate Homeland Security and Governmental Affairs Committee (HSGAC) passed a slightly-modified version of the Ending Trading and Holdings In Congressional Stocks (ETHICS) Act (S. 1171), which bans individual stock trading or holding by members of Congress and their immediate family members. The ban would also apply to the President, the Vice President, and their respective family members.
National Taxpayers Union has long supported various measures banning stock trading by members of Congress. Ensuring that public officials avoid the moral hazards associated with crafting policy and handling privileged information is crucial, especially in light of many famous examples of politicians enriching themselves greatly in the stock markets.
The Senate HSGAC should be applauded for advancing this legislation designed to protect the taxpayers’ trust. Moving forward, lawmakers have an opportunity to consider a reasonable amendment to enhance this reform. As originally introduced, the ETHICS Act included language allowing elected officials to place their assets in a qualified blind trust. The amended version of the bill strips out this crucial flexibility, which may prevent otherwise capable candidates from running for office. The House versions of the bill, H.R. 2678, introduced by Rep. Raja Krishnamoorthi (D-IL) and 11 bipartisan cosponsors, and H.R. 345, the TRUST in Congress Act by Rep. Abigail Spanberger (D-VA) and 75 bipartisan cosponsors, include the blind trust provision. Without the ability to place their assets in a qualified blind trust, officials will be forced to sell all individual securities once elected, starting in March 2027.
This could discourage business owners or other successful individuals in the private sector from running for public office, which would be detrimental since their perspectives can be valuable in service to taxpayers. A Congress and executive branch lacking private sector expertise can lead to misguided policies, as we’ve seen with the Biden administration’s vast policy overreaches. Collectively, President Biden and Vice President Harris have spent no time at all in a private sector job.
While the goal of the current version of the ETHICS Act is admirable, the reform bill would be strengthened by restoring the qualified blind trust provision to safeguard the taxpayers’ trust while not adding deterrents for skilled and successful private sector citizens from seeking public office.