President Trump Criticizes Republican Senator Josh Hawley Over Stock Trading Bill Amidst Growing GOP Fissures
WASHINGTON (AP) — President Donald Trump unleashed sharp criticism on Republican Sen. Josh Hawley on Wednesday, labeling him a “second-tier Senator” after a bipartisan bill championed by Hawley to prohibit stock trading by members of Congress, the president, and the vice president successfully advanced in a Senate committee. This public rebuke marks the second consecutive day Trump has publicly challenged a prominent Republican senator over legislative or procedural matters, highlighting growing fissures within the party.
The “Honest Act” Gains Traction
Hawley’s proposal, officially known as the “Honest Act,” gained significant traction when it moved out of the Senate Committee on Homeland Security and Governmental Affairs. The bill, which Hawley co-sponsored with the committee’s top Democrat, Sen. Gary Peters of Michigan, aims to restore public trust by preventing elected officials from profiting from information privy only to those in government. “We have an opportunity here today to do something that the public has wanted to do for decades,” Hawley stated during the committee hearing, emphasizing the bill’s importance in curbing potential insider trading.
The push for stricter rules on congressional stock trading has intensified, particularly after instances during the COVID-19 pandemic raised public concern about lawmakers potentially leveraging sensitive information for personal financial gain. While existing insider trading laws apply, they do not always cover the unique nature of information that members of Congress receive, creating a perceived loophole that the Honest Act seeks to close.
Committee Tensions and Defeated Amendments
During the committee’s deliberation, tensions rose as Republican senators attempted to introduce amendments that would alter the bill’s scope. Sen. Rick Scott of Florida proposed two key changes: one seeking to exempt the president, vice president, their spouses, and dependent children from the ban, and another demanding an investigation into the stock trades of former House Speaker Nancy Pelosi and her husband, Paul Pelosi. However, both amendments were defeated, notably with Sen. Hawley siding with Democrats to block them, drawing Trump’s ire.
Trump’s Social Media Outburst
Trump voiced his displeasure on social media, asserting, “I don’t think real Republicans want to see their President, who has had unprecedented success, TARGETED, because of the ‘whims’ of a second-tier Senator named Josh Hawley!” The president also criticized Hawley for joining Democrats to block the amendment targeting Pelosi, whose husband, Paul Pelosi, has been a much-watched figure in stock trading circles. Nancy Pelosi’s office, however, has consistently stated that she personally does not own stock.
Nancy Pelosi Supports the Bill
Despite the partisan friction, Speaker Emerita Nancy Pelosi publicly expressed her strong support for the Honest Act, stating, “The American people deserve confidence that their elected leaders are serving the public interest — not their personal portfolios.” She also acknowledged the earlier, more narrowly focused Republican proposal that sarcastically dubbed the legislation the “Preventing Elected Leaders from Owning Securities and Investments, or Pelosi Act.”
Not all Republicans supported the measure. Sen. Ron Johnson of Wisconsin dismissed the bill as “legislative demagoguery,” arguing that existing insider trading laws and financial disclosure requirements are sufficient. “Trust me, we have financial disclosure. So I don’t see the necessity of this,” Johnson remarked.
Implications of the Honest Act
If enacted, the Honest Act would immediately bar elected officials from buying stocks and prevent them from selling stocks for 90 days after becoming law. It would also mandate that these officials divest from all covered investments, though this requirement would only take effect at the commencement of their next term in office, effectively shielding President Trump from immediate divestment if the bill were to pass during his current or a potential future term.
Broader Pattern of Trump’s Public Pressure
This confrontation with Hawley follows closely on the heels of Trump’s public pressure on veteran GOP Sen. Chuck Grassley of Iowa. Just Tuesday, Trump urged Grassley to abandon the Senate’s long-standing “blue slip” custom, a practice that often necessitates bipartisan agreement from both home-state senators to advance presidential nominations for federal judges. Trump claimed he helped Grassley, first elected in 1980, win reelection and thus demanded, “Senator Grassley must step up.” Grassley, in turn, expressed that he was “offended” by the president’s comments, underscoring the broader pattern of Trump leveraging public statements to influence his party members.
