Democracy
Democracy
Democracy
The Clean Congress Act
"The Clean Congress Act" is a transformative reform to restore trust in Congress by eliminating conflicts of interest and corporate influence. This comprehensive initiative bans stock trading by members of Congress, prohibits former members from lobbying, strengthens gift rules, and bans corporate Political Action Committee (PAC) contributions to federal candidates. Public support for such reforms is overwhelming, with 86% of Americans favoring a ban on congressional stock trading, highlighting the urgent need for change. These measures address the concerns of WI-06’s working families, who deserve a government that serves their interests, not those of wealthy corporations.
The integrity of our democratic institutions depends on the public's trust in their representatives. However, recent years have seen numerous instances where members of Congress have engaged in activities that raise ethical concerns, such as profiting from stock trades based on nonpublic information, transitioning to lucrative lobbying careers, and accepting gifts that could influence their decisions. These practices undermine the public's confidence in Congress and erodes the foundation of our democracy.
"The Clean Congress Act" is designed to address these issues head-on by introducing strict measures that eliminate opportunities for self-enrichment and undue influence. This policy paper outlines the rationale behind the act, the specific provisions it includes, and the expected outcomes for restoring ethical standards in Congress.
The core issues that "The Clean Congress Act" aims to resolve are:
Stock trading by members of Congress, which may involve using nonpublic information for personal gain, creating a perception of insider trading and conflict of interest.
Post-congressional lobbying, where the "revolving door" allows former members to influence legislation for private interests, compromising legislative integrity.
Gift rules, which may allow undue influence from special interests, as members can accept gifts that could sway their decisions.
Corporate Political Action Committees contribute millions to campaigns, often prioritizing corporate agendas over working-class needs.
Research suggests that some members of Congress have made significant profits from stock trading. For example, in 2024, Nancy Pelosi (D-CA) achieved a 70.9% return on her investments, while David Rouzer (R-NC) saw a 149.0% return, raising questions about potential conflicts of interest. The current law, the Stop Trading on Congressional Knowledge (STOCK) Act of 2012, requires disclosure but does not prohibit trading, leading to calls for a ban.
For lobbying, current rules prohibit House members from lobbying Congress for one year and Senators for two years after leaving office, but many still become lobbyists, using their connections for private gain. Bills like H.R.351 propose permanent bans, but such measures have not been enacted.
Gift rules allow members to accept certain gifts, such as food and travel, but there are concerns about loopholes allowing undue influence, especially from lobbyists, necessitating stronger regulations.
Since 2010, corporate PACs have contributed over $2.8 billion to federal candidates, with Grothman receiving over $130,000 from the insurance industry alone by 2018, per OpenSecrets.org. These funds often come with expectations of favorable policies, sidelining WI-06’s working families.
To implement "The Clean Congress Act," the following provisions are proposed:
Ban on Stock Trading:
Prohibit members, their spouses, and dependent children from owning or trading individual securities while that member is serving in Congress.
Require divestiture within 180 days.
Exceptions for investment funds and retirement plans.
Penalties for noncompliance including fines up to 10% of net worth or $100,000, whichever is greater, per violation.
Ban on Post-Congressional Lobbying:
Prohibit former members from compensated lobbying for five years after leaving office.
Penalties including fines and potential loss of pension benefits.
Strengthened Gift Rules:
Lower the threshold for reportable gifts to $25.
Prohibit gifts from interested sources.
Require quarterly public disclosure, with an independent ethics board for enforcement.
Ban on Corporate PAC Contributions:
Prohibit federal candidates, including members of Congress, from accepting contributions from corporate Political Action Committees.
Require candidates to certify compliance with the ban, with violations leading to fines up to $50,000 per instance and potential disqualification from office.
Promote public disclosure of all campaign contributions over $5,000 to enhance transparency.
Encourage public funding of elections to reduce reliance on private donations.
The act will include divestiture assistance, mandatory ethics training, public reporting systems, and empowered ethics bodies for enforcement to ensure compliance.
"The Clean Congress Act" is a necessary step towards ethical governance, rebuilding trust in Congress.