Speaker Johnson Backs Stock Trading Ban for Members of Congress 👉 Updatem News

The Louisiana congressman announced his support while offering a defense of opponents by citing frozen congressional salaries that limit members’ finances.

WASHINGTON—House Speaker Mike Johnson (R-La.) has announced that he supports legislation to ban members of Congress from trading stocks, which has previously elicited controversy.

“My honest opinion on it: I’m in favor of that. I don’t think we should have any appearance of impropriety here,” Johnson said at a press conference on May 14.

The comments come after a renewed bipartisan push on a ban on the practice. Members of Congress routinely have access to sensitive and even classified information that could influence markets, which some lawmakers say gives them the ability to unfairly profit from their government service.

Recent trades by Rep. Marjorie Taylor Greene (R-Ga.) during a stock market dip before President Donald Trump announced a tariff pause that caused the stocks to surge, have drawn scrutiny. Greene said a financial adviser made those trades on her behalf.

Johnson also articulated a defense of the measure’s opponents, suggesting that low congressional salaries may merit leeway to supplement one’s income.

“The other side of it, some people say, [is that] the salary of Congress has been frozen since 2009 and, when you adjust for inflation, a member of Congress is making 31 percent less than they made in that year, and it goes down every year. Over time, if you stay on this trajectory, you’re going to have less qualified people willing to make the extreme sacrifice to run for Congress,” Johnson said.

Senators and representatives currently receive a salary of $174,000 per year before taxation. Johnson, as House speaker, is one of the exceptions to that rule: He receives $223,500 per year and is the highest-paid member of Congress.

The President pro tempore of the U.S. Senate, as well as the majority and minority leaders of both houses, receive $193,400 per year. There is no extra income for other leadership positions in Congress, such as chairing a committee.

Additionally, members of Congress are bound by ethics limits on “outside earned income,” such as cash earnings that they can receive in addition to their salary. The limit is always 15 percent of the annual pay for Executive Schedule Level II federal bureaucrats, i.e., $33,285 for Fiscal Year 2025.

Furthermore, members of Congress are banned from accepting payments for speeches and appearances, which is often the most lucrative source of income for former high-ranking officials.

“People just make a reasonable decision, as a family, on whether or not they can move to Washington, have a residence here and a residence at home, and do all the things that are required,” Johnson said.

“The counter argument, and I have some sympathy, is: At least let them engage in some stock trading, so that they can continue to take care of their family.”

However, he said that “on balance” he would support a ban, because “it’s been abused in the past and, sadly, a few bad actors discolor it for everyone.”

Several legislative initiatives to ban stock trading in Congress have been attempted, though none have succeeded.

Several dozen representatives from both parties, led by Reps. Seth Magaziner (D-R.I.) and Rep. Chip Roy (R-Texas), have sponsored the “TRUST in Congress Act.” This would require members and their spouses to place certain assets in a blind trust. The bill was introduced in the 118th Congress as well, but was not passed by the House.

House Minority Leader Hakeem Jeffries (D-N.Y.) came out in support of a ban in April. Trump also said recently he would sign such a measure into law if it ever made it to his desk.

Original News Source Link – Epoch Times

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