The invoice would ban members of Congress from buying and selling in weapons firms like Lockheed Martin and Raytheon, in addition to in Amazon, Pfizer and 1000’s extra Division of Protection contractors.
Rep. Rashida Tlaib (D-Mich.) earlier this month launched laws that may ban members of Congress, their spouses, and their dependent kids from holding or buying and selling inventory in firms which have contracted or in any other case transacted with the Division of Protection.
Below present regulation, members of Congress and their relations can spend money on securities, together with within the shares of firms they oversee, so long as they publicly disclose their holdings yearly and report transactions inside 45 days. The power for members of Congress to spend money on protection and weapons might pose particularly robust conflicts of curiosity as firms like Lockheed Martin and RTX (Raytheon) depend on authorities contracts funded by congressional appropriations for a big majority of their income.
“The American folks deserve representatives who vote in the very best curiosity of our nation and our households, not their inventory portfolios,” mentioned Tlaib in an announcement asserting the invoice. “It’s shameful that a few of my colleagues are profiting financially after they vote to help wars and weapons manufacturing.”
The invoice, titled the Cease Politicians Taking advantage of Battle Act, was filed on February 6 and has been referred to 4 Home committees. It has one co-sponsor–Rep. Cori Bush (D-Mo.). A number of non-governmental organizations have endorsed the invoice, together with Jewish Voice for Peace Motion, Public Citizen, and the Council on American-Islamic Relations.
In response to Capitol Trades, members of Congress made 96 transactions in protection shares final 12 months, together with eight purchases that had been made following the October 7 assault on Israel by Hamas. Extra protection inventory trades have been made because the starting of the 12 months. Reps. Kevin Hern (R-Okla.) and Kathy Manning (D-N.C.) have purchased Lockheed Martin inventory, and Rep. Blake Moore (R-Utah) has offered RTX inventory and purchased Boeing inventory.
Tlaib’s laws would apply to a far broader swath of shares than simply these of firms which can be recognized for promoting weapons and providers to the army. 1000’s of firms in a variety of industries contract or have contracted with the Division of Protection, together with a number of the mostly held shares. For instance, Amazon, Google, and Microsoft, every of which have just lately been among the many prime 5 mostly held shares by members of Congress, are at present executing a $9 billion contract with the Protection Division that was awarded to them in 2022. Pharmaceutical firm Pfizer, one other broadly owned inventory, was awarded a $3.2 billion contract with the Military in 2022 to supply COVID vaccines. Normal Electrical, one other well-liked inventory amongst lawmakers, sells the army providers associated to 5G expertise, in addition to plane engine {hardware} by way of its GE Aerospace division.
