In March, Rob Bresnahan, Jr., a prominent Republican businessman, openly called for an end to stock trading by Congress members while campaigning for a pivotal House seat in northeastern Pennsylvania. In a letter to the editor of the Wilkes-Barre Citizens’ Voice, he expressed that “The trust our political leaders and institutions have from Americans is at a historic low, and it’s understandable why. It is disturbing to hear how politicians amass wealth while serving in office. To rebuild trust in government, Congress must take the lead with these policies.”
He promised voters that, if elected, he would co-sponsor a bill to ban stock trading by his fellow lawmakers, stating that this practice “must end immediately.”
However, more than two months after his inauguration, having secured a victory over a Democratic incumbent in one of the nation’s costliest House races last November, Mr. Bresnahan has yet to introduce or co-sponsor such legislation. During this period, he has become one of the most prolific stock traders in the freshman cohort, according to Capitol Trades, a website that tracks lawmakers’ stock market activities.
Since taking office in January, Mr. Bresnahan has reported 264 stock trades, purchasing up to $1.7 million in stocks and selling approximately $3.03 million, as per his transaction disclosures.
Lawmakers across the aisle have long advocated for an end to individual stock trading among Congress members as a means of addressing increasing populist sentiments within their constituencies. They highlight the access lawmakers have to confidential intelligence, interactions with corporate leaders, and their influential roles in shaping economic policies, which can create the perception of conflicts of interest.
Support for this initiative has come from a broad spectrum of representatives, including far-right Texas Republican Chip Roy and progressive New York Democrat Alexandria Ocasio-Cortez. Yet, momentum has waned in recent months following the exit of a leading Democratic advocate for the cause and a lack of backing from other lawmakers.
Public opinion polls reveal that approximately 75 percent of voters endorse a ban on individual stock trading by Congress members. A 2022 investigation by The New York Times discovered that nearly 20 percent of congressional lawmakers, spanning both parties, engaged in stock trading that intersected with their official committee roles.
Mr. Bresnahan, a member of the transportation and infrastructure committee, has conducted trades in various stocks associated with that sector, including those of Caterpillar, a construction machinery manufacturer; CSX, a railroad company; and Boeing, a major aerospace firm.
Throughout his campaign, Mr. Bresnahan criticized his Democratic opponent, Matt Cartwright, for not actively co-sponsoring initiatives aimed at regulating stock trading practices.
“This is critical bipartisan legislation currently in the House that I would gladly co-sponsor,” he stated in his letter to the editor. “However, my opponent, Matt Cartwright, has not co-sponsored this bill.”
Yet, Mr. Bresnahan has not taken this step himself since arriving in Washington. He has neither signed the No Corruption in Government Act, a bipartisan initiative aimed at curbing insider trading by members of Congress and their families, nor has he endorsed the TRUST in Congress Act, which would require lawmakers, along with their spouses and children, to place specific assets into blind trusts while in office.
Recently, Mr. Bresnahan traded substantial amounts of stock in Alibaba, the e-commerce giant linked to the Chinese Communist Party.
Between February and March, he also sold his shares in Tesla, which he had held since the previous year, according to public records.
According to Hannah Pope, Mr. Bresnahan’s spokesperson, he has not co-sponsored relevant legislation because he plans to introduce his own bill, which is currently being developed.
Ms. Pope explained that Mr. Bresnahan engages a financial adviser to manage his stock trades, meaning he is unaware of upcoming trades or their timing and does not know which companies are involved.
“Like the vast majority of Americans, Rob does not personally manage his stock trading and he never has,” Ms. Pope noted. “His primary focus is on serving the people of northeastern Pennsylvania by ensuring border security, revitalizing the economy, and repairing the infrastructure.”
She added that the Alibaba trade formed part of a broader strategic investment, and measures were established to prevent him from trading in that stock in the future.
Donald K. Sherman, the executive director of Citizens for Responsibility and Ethics in Washington, a watchdog group aligned with the Democratic party, indicated that Mr. Bresnahan’s trading activities have raised concerns, especially given his campaign commitments.
“These concerns would not arise if he refrained from buying, selling, or owning individual stocks,” Mr. Sherman asserted. “By choosing to run for Congress, he has the option to abstain from stock market participation, which is still available to him.”
Sherman emphasized the necessity of a ban, as the public should not have to question whether lawmakers’ stock portfolios are influencing their legislative actions and committee duties. While there is no evidence suggesting that Mr. Bresnahan is breaking any laws, he added, “members who claim to uphold a higher standard should strive to meet that standard.”
The campaign to prohibit congressional stock trading gained traction in 2020 following revelations that senators from both parties engaged in trading health care stocks based on information received during closed-door briefings related to the coronavirus pandemic.
However, the effort appears to have stalled since the departure of one of its strongest proponents, Abigail Spanberger, a former Democratic representative from Virginia who is now campaigning for the gubernatorial position in her state.
“There’s a great opportunity for someone — perhaps a newcomer — to take the lead on this issue,” Mr. Sherman remarked. “It is always a timely moment to advocate for ethics reforms that have the backing of a substantial majority of voters.”
