Bill Overview
Title: Banning Insider Trading in Congress Act
Description: This bill prohibits a member of Congress or spouse of a member of Congress from holding, purchasing, or selling certain investments. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the member of Congress to a civil fine. The bill also requires each member of Congress to submit an annual certification of compliance and requires the Government Accountability Office to conduct a compliance audit. The prohibition does not apply to assets held in a qualified blind trust or to a sale by a member of Congress or spouse within 180 days after the bill is enacted or within 180 days after the member commences service, for any member who commences service after the bill is enacted.
Sponsors: Sen. Hawley, Josh [R-MO]
Target Audience
Population: Members of Congress and their spouses
Estimated Size: 780
- The bill specifically targets members of Congress and their spouses, directly affecting their ability to engage in certain investment activities.
- Members of Congress are responsible for making federal legislative decisions and their finances can influence or appear to influence these decisions, hence the introduction of the bill to regulate their investment activities to prevent conflicts of interest.
- The bill also indirectly impacts the democratic integrity and trust in government by ensuring that elected officials do not exploit their positions for financial gain.
- While members themselves are directly affected, their financial well-being and decision-making processes may impact their families, constituents, and broader public perception.
Reasoning
- The policy is mainly aimed at members of Congress and their spouses, making it a small and specific target population.
- The estimated directly affected population is 780 individuals, mostly affluent and with significant financial knowledge.
- Interviews should include directly impacted individuals and those whose trust in governance might be influenced by the policy.
- This policy indirectly affects public perceptions of government transparency and integrity, which can impact general wellbeing.
- The budget constraints suggest a focus on compliance and audit processes, rather than direct monetary impacts on the general population.
- To account for indirect impacts, individuals who are politically active or have strong views on governmental ethics could provide insights.
Simulated Interviews
Senator (Washington D.C.)
Age: 55 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 1/20
Statement of Opinion:
- I believe this bill is a necessary step towards increasing transparency and trust in our legislative processes.
- As a senator, I recognize the responsibility to separate personal financial gain from legislative duties.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
House Representative (Texas)
Age: 62 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- This legislation makes sense but may be damaging to my family's financial planning.
- We must ensure that compliance processes are clear and manageable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 5 | 6 |
| Year 10 | 5 | 6 |
| Year 20 | 5 | 6 |
Tech Entrepreneur (California)
Age: 50 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This action by Congress is essential for restoring public trust and upholding democratic principles.
- It's important that elected officials prioritize national over personal interests.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Political Analyst (Illinois)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- This legislation could be a game changer in reducing corruption.
- It's about time Congress took such measures seriously.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Retired Congressman (Florida)
Age: 70 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- While I support the spirit of the policy, enforcement will be challenging.
- My main concern is how this affects the collaborative work culture in Congress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 6 |
Financial Journal Editor (New York)
Age: 27 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 12/20
Statement of Opinion:
- This policy is crucial for maintaining ethical standards in government.
- I'm eager to see its long-term impact on financial fairness.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
High School Civics Teacher (Oregon)
Age: 47 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 17/20
Statement of Opinion:
- This law could serve as a great example for my students on how to maintain integrity in governance.
- It's good to see steps being taken to limit economic corruption.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Environmental Lobbyist (Colorado)
Age: 40 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- I hope this policy leads to more impartial decision-making in Congress.
- Our democracy depends on such accountability measures.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retiree and Political Volunteer (Ohio)
Age: 65 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- Policies like these are needed to keep our democracy healthy.
- It's refreshing to see Congress taking steps toward reducing conflicts of interest.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Congressman's Spouse (North Carolina)
Age: 58 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Balancing compliance with personal finance management can be tricky.
- This policy should help restore faith in political processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 6 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $60000000 (Low: $50000000, High: $70000000)
Year 2: $50000000 (Low: $40000000, High: $60000000)
Year 3: $50000000 (Low: $40000000, High: $60000000)
Year 5: $40000000 (Low: $30000000, High: $50000000)
Year 10: $30000000 (Low: $20000000, High: $40000000)
Year 100: $10000000 (Low: $5000000, High: $15000000)
Key Considerations
- Excludes investments held in qualified blind trusts, providing a legal avenue for members to maintain investment interests responsibly.
- Requires an effective monitoring and reporting system to ensure compliance and integrity.
- Potentially lowers insider trading instances, leading to fairer financial markets.