U.S. Representative Rob Bresnahan, Jr. (PA-08) has introduced a new legislative proposal aimed at banning stock trading by Members of Congress and their spouses. The proposed legislation, known as the Transparency in Representation through Uniform Stock Trading Ban (TRUST) Act, seeks to prevent lawmakers from buying or selling stocks once they take office.
Rep. Bresnahan stated, “The public should never have to question whether their elected officials are serving the public or their own portfolios.” He emphasized that the TRUST Act is designed to restore integrity and transparency in government operations.
If passed, the TRUST Act would become effective with the commencement of the 120th Congress in January 2027. In preparation for compliance with this legislation, Rep. Bresnahan is collaborating with the House Committee on Ethics to transfer his personal financial holdings into a blind trust.
“Members of Congress should not be allowed to profit off the information they are entrusted with – this is a belief I have held since before taking office,” Rep. Bresnahan added. He clarified that he has never engaged in personal stock trading but wants to ensure accountability to his constituents by establishing a blind trust.
Key provisions of the TRUST Act include:
– It applies to Members of Congress and their spouses.
– Upon assuming office, Members and their spouses would be prohibited from purchasing or selling certain financial instruments such as securities, futures, commodities, derivatives, options, and warrants.
– They would only be permitted to invest in diversified mutual funds, diversified ETFs, investments in the Thrift Savings Plan (TSP), and U.S. Treasuries.
– Violations involving purchasing or selling covered financial instruments while in office would result in fines and penalties.
The legislation does not require divestment of existing financial instruments owned prior to taking office; these are grandfathered under the act’s provisions. Additionally, it does not apply to assets held within a qualified blind trust.
