Speaker Mike Johnson Defends Congressional Stock Trading, Says They Need to Support Their Families

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House Speaker Mike Johnson has drawn renewed attention to the issue of congressional stock trading, a practice that has faced increasing criticism in recent years. Speaking to the press this week, Johnson defended lawmakers who participate in the stock market, noting that congressional salaries have been frozen since 2009. When adjusted for inflation, members of Congress now earn 31% less than they did that year, he said. Johnson argued that without alternative income options like trading, some representatives might find public service unsustainable.

Even with that justification, Johnson said he supports a legislative ban. “We shouldn’t have any appearance of impropriety here,” he told reporters. His remarks followed the introduction of bipartisan legislation aiming to ban congressional stock trading entirely.

Why Lawmakers Have a Trading Advantage

Members of Congress are uniquely positioned to access policy information before it becomes public. This includes economic forecasts, legislative changes, and regulatory shifts. Although insider trading is illegal, the lines blur when lawmakers act on knowledge gained through briefings or closed-door committee sessions.

Critics argue that even with disclosure rules in place, the reporting timeline is too slow. Disclosures are filed annually, sometimes long after a trade occurs. That gap allows members to act without timely oversight. When markets react to policy news, those with early access stand to benefit the most. Capitol Trades, a platform that monitors financial activity in government, recently revealed that Rep. Rob Bresnahan made 490 stock trades totaling $5.6 million since taking office in November. Bresnahan has also introduced a bill to ban stock trading, which some see as an effort to get ahead of criticism.

Congressional Stock Trading Patterns Under Scrutiny

On April 9, trading volumes in NASDAQ calls spiked minutes before President Trump announced a pause on new tariffs. That timing has raised concerns among lawmakers including Sen. Adam Schiff and Rep. Alexandria Ocasio-Cortez. Both are calling for an investigation into possible insider activity tied to that announcement.

Supporters of a ban argue that congressional stock trading erodes trust in government. They believe public service should not come with the option to personally profit from non-public information. Lawmakers earn $174,000 annually, which is well above the national average. Critics say that income should be sufficient to deter supplemental investing, especially when public confidence is at stake.

Speaker Johnson’s claim that frozen salaries justify stock trading did not sit well with many constituents. For most Americans, the idea that representatives must trade stocks to “support their families” rings hollow. Public officials are expected to make financial sacrifices, and many believe the cost of service includes forgoing financial gains that ordinary citizens cannot access.

Legislation Against Congressional Stock Trading May Finally Advance

Lawmakers have introduced multiple bills over the years to ban or limit congressional trading, but none have cleared both chambers. Momentum is building again, with support from figures like House Minority Leader Hakeem Jeffries and President Trump.

The most recent proposal would require members and their families to either divest or place their holdings in blind trusts. Reps. Chip Roy, Tim Burchett, and Alexandria Ocasio-Cortez are among those working on a consensus version of the bill. They aim to establish enforcement mechanisms and penalties for violations, as well as rules for newly elected members entering Congress with existing investments.

While legislation remains uncertain, public pressure is rising. Lawmakers who oppose a trading ban argue it could deter qualified individuals from running for office. But to many voters, any financial incentive tied to privileged information is unacceptable.

The debate over congressional stock trading now centers not only on legality, but on legitimacy. As bipartisan support for a ban grows, voters will be watching to see whether Congress acts or stalls once again.

Should lawmakers be allowed to trade while in office where they have access to inside information? Tell us what you think.

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