Congressional stock trading talks at loggerheads over controversial Supreme Court provision

Congress is making one last push to curb lawmakers’ stock trades.

"We believe we have a product that we can bring to the floor this month,” House Speaker Nancy Pelosi confirmed Wednesday, noting that talks are making progress on the effort to stop lawmakers' trading activities on the grounds that they have access to non-public information.

But behind the scenes, negotiators have been unable to agree so far on a proposal that would fold a provision forcing Supreme Court justices to file more detailed financial disclosure reports into the larger bill. It's become a major sticking point, according to multiple sources familiar with negotiations.

This latest twist comes after eight months of negotiations where overwhelming public support for a ban has not translated into action. Lawmakers have put forth a bevy of proposals but have struggled to agree on a unified bill with the coming weeks representing the last chance for action before the midterms elections.

So why is a Supreme Court top of mind?

“It's the abortion decision and more,” Craig Holman of the group Public Citizen told Yahoo Finance, referring to the high court's June decision ending the federal right to abortion.

Holman supports requiring Supreme Court justices to be more transparent about their finances but he says that including the provision now might “just might sabotage the bill.”

WASHINGTON, UNITED STATES - SEPT 14: House Speaker Nancy Pelosi, D-Calif., delivers her weekly press conference on Capitol Hill in Washington, D.C., on Wednesday September 14, 2022. (Photo by Sarah Silbiger for The Washington Post via Getty Images)
House Speaker Nancy Pelosi during her weekly press conference on Capitol Hill on Wednesday September 14, 2022. (Sarah Silbiger for The Washington Post via Getty Images) · The Washington Post via Getty Images

This week's twist is being driven by Democratic fury at decisions from the Supreme Court's conservative majority. The court allowed individual states to ban abortion; loosened gun control laws; and curtailed environmental protections, to name just a few conservative wins. Revelations about potential conflicts created by Justice Clarence Thomas's wife, Ginni, have also stoked the push for transparency.

Conservative lawmakers would likely view new rules for the justices as political payback, frustrating efforts to pass any overall deal on Congressional stock trades.

Rep. Zoe Lofgren (D-CA) chairs the committee drafting the bill and is seen, alongside Speaker Pelosi, as pushing for the judicial provisions. Others believe there's only a chance for real action this year if the Supreme Court provision isn't included.

"While I support it in principle, I recognize that for some of our colleagues across the aisle, that may be a poison pill at this point in time,” Rep. Abigail Spanberger (D-VA) told Yahoo Finance Friday. “I hope that choice is not intentional to bring in a poison pill.”

Spanberger has authored a bipartisan plan with Rep. Chip Roy (R-TX) to require all members of Congress to put assets into a qualified blind trust while they're in office.