Dems hone populist appeal with proposed stock trading ban

WASHINGTON >> When Rep. Abigail Spanberger first introduced a bill banning stock trading by members of Congress and their families, the Virginia Democrat managed to get only eight co-sponsors. So far this session, 62 — or about one out of every seven House members — have signed on.

It's a similar story in the Senate. Sen. Jeff Merkley, D-Ore., a once lonely voice on the issue, had just one co-sponsor for his proposed stock trading ban in the last two congressional sessions. Now, he has nine.

The uptick in support reflects a growing lawmaker appetite to tighten the rules around trading after several members faced heavy scrutiny for their stock transactions during the pandemic. While there's no guarantee any of the proposals will become law, many lawmakers facing the toughest reelection races have embraced the legislation, elevating the ethics issue as a talking point — and potential point of attack — for the midterm campaigns.

Even with voters focused on issues like inflation and the war in Ukraine, Spanberger said the trading ban comes up time and again when she meets with constituents.

“No matter where I am, somebody brings it up,” said Spanberger, who is among those lawmakers facing a difficult reelection bid.

But it's not clear sailing. Other lawmakers, particularly Republicans, are skeptical and raising concerns about the merits of such a ban and the logistics of enforcing it. And while congressional leaders say they are open to the proposals, there are doubts from some lawmakers about whether that will translate to action.

“The headwind is that some members of Congress don't want to abide by these rules, and some of those members are in leadership,” Spanberger said.

House Speaker Nancy Pelosi, D-Calif., initially said she did not support a stock trading ban back in December. “We are a free market economy. They should be able to participate in that,” she told reporters. But in February she announced she was open to one. “It's complicated, and members will figure it out. And then we'll go forward with what the consensus is,” she said.

Under current law, members of Congress and government employees must report the sale and purchases of stocks, bonds, commodity futures and other securities no more than 30 days after learning they were made and within 45 days of a transaction exceeding $1,000.

But lawmakers have been routinely late in filing such notices, and in some cases didn't file at all, leading to a flurry of complaints to the House Ethics Committee.

During a House hearing on the issue in April, Rep. Rodney Davis, R-Ill., said it's clear the current disclosure laws aren't working as intended. But he characterized the violations as mostly inadvertent.

Davis said he's heard little from constituents about the stock trading and worries that requiring lawmakers to put assets in a blind trust would prove inordinately expensive for many lawmakers. Still, he's open to finding a compromise “that doesn't encourage the ultra wealthy to be only ones to run for Congress.”