Halting Ownership and Non-Ethical Stock Transactions (HONEST) Act

The HONEST Act (officially titled the PELOSI Act) prohibits Members of Congress and their spouses from holding, buying, or selling most stocks, bonds, and financial derivatives (like options or futures) during their term in office to prevent conflicts of interest from insider trading. It excludes diversified mutual funds, ETFs, U.S. Treasury securities, and income from a spouse’s primary job, with a 180-day grace period for current and new members to divest existing holdings. Lawmakers must annually certify compliance to ethics committees, which can impose fines (up to 10% of non-compliant holdings’ value per 30 days) and publish violations publicly. The law also mandates a government audit within two years to assess compliance.