These lawmakers made a fortune in the stock market last year

Federal government employees who own stock in a company are prohibited by law from being involved in any matter that may impact the financial interests of the company — whether or not the matter can plausibly impact the stock price. The restriction also applies to any stock owned by a spouse or minor child of the federal employee. Each violation of the law carries a maximum penalty of five years in jail and a fine of $50,000.

Members of Congress are constantly involved in matters that directly impact the financial performance of all publicly traded companies — casting votes that determine tax rates, regulations, funds available for government contracts, and a myriad of other issues. Yet, under the law, members of Congress are not considered employees of the federal government. They are free to actively trade any stock with few restrictions.

The only prohibition that applies to members of Congress is a ban on stock trading based on "insider information." It is very difficult, however, to prove why any person traded a stock. No member of Congress has ever been prosecuted for insider trading.

In 2024, more than 100 members of Congress actively traded individual stocks. Many of them cleaned up, with gains that far outpaced the broader market. According to a new report by Unusual Whales, a data platform for retail traders, 13 members of Congress who own at least five stocks — 8 Republicans and 5 Democrats — saw their portfolios gain 60% or more for the year.

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