Follow us on social

Shutterstock_732504547-scaled-e1648755059685

Banning lawmakers from owning stocks would stymie war profiteering

Members of Congress making military policy are invested in the very weapons companies benefiting from it. That's wrong.

Analysis | North America


Yesterday, a bipartisan group of lawmakers sent a letter to the chairs of the Committee on House Administration urging them to advance legislation banning members of Congress from directly owning or trading stocks while in office.

The letter, sent by 19 lawmakers ranging from Mark Pocan (D-WI) to Matt Gaetz (R-FL) outlined three key provisions: preventing family members and children from owning stock, banning exceptions for stock owned prior to entering office, and backing up any legislation with effective enforcement. 

Congressional stock trading restrictions would disproportionately impact the national security space; A Sludge 2021 analysis of financial holdings found that “The maximum value of the investments held by federal lawmakers in the ‘Big Five’ contractors — Lockheed Martin, Raytheon, Boeing, Northrop Grumman, and General Dynamics — is over $2.6 million, making up nearly 39% of the total stock holdings identified.” 

Several members of Congress snapped up new shares of defense company stock just before the invasion of Ukraine. Marjorie Taylor Greene (R-GA) bought shares of Lockheed Martin the day before the invasion, while John Rutherford (R-FL) secured valuable Raytheon stock the day of the invasion itself. Between December 1, 2021, and April 13, 2022, the stock price of Lockheed Martin skyrocketed by 42.8 percent while Raytheon increased by over 24 percent, both well out-pacing the S&P 500 which actually decreased in the same time period.

Some of those lawmakers even have an outsized role in creating national security policy itself. A recent Business Insider analysis found that 15 members of the House and Senate Armed Services Committee Congress own stock in defense giants Raytheon and Lockheed Martin.

Another analysis found that four members of the House Foreign Affairs Committee, which oversees arms control, had at least four members invested in defense companies. One member of the Committee, Gerry Connolly (D-VA), alone owned $498,000 worth of stock of Leidos — a military contractor that merged with Lockheed Martin in 2016 — as of last year. Leidos’ stock jumped over 27 percent from mid-February to early March. 

The letter joins a chorus of mounting pressure to take action on Congressional stock trading. In an interview with Business Insider, Committee spokesperson Peter Whippy said that “at least 20 bills have been introduced that address some of these issues.” It concludes by writing:

“Americans across the political spectrum support banning members of Congress from trading stocks. If we seek to write off their concerns with a toothless gimmick, they will see through it and continue to mistrust their elected officials.” 

If lawmakers continue to profit off of war through their stocks in defense companies, Americans will continue to lose trust in Congress to look out for their interests. There is some dispute about whether Dwight Eisenhower originally intended to use the phrase “Military Industrial Congressional Complex” or not. There can’t be any dispute today, however, to Congress’ culpability in perpetuating the self-licking ice cream cone to their own benefit. With growing pressure from the public, it’s now their role to fix it and block one avenue of Congressional war profiteering.


Image: Artem Avetisyan via shutterstock.com
Analysis | North America
Trump oval office
Top photo credit: President Donald Trump signs two executive orders in the Oval Office of the White House in Washington, DC on Thursday, January 30, 2025. The first order formally commissioned Christopher Rocheleau as deputy administrator of the FAA. The second ordered an immediate assessment of aviation safety. Photo by Bonnie Cash/Pool/Sipa USA

Trump is squeezing himself with his own Russia deadline

Europe

It’s a time for choosing in the Russia-Ukraine war.

President Donald Trump’s decision to considerably shorten his 50-day deadline for Russia to agree to an unconditional ceasefire with Ukraine reflects his mounting frustration with what has proven to be a difficult peace process.

keep readingShow less
Not Blackwater or Wagner, Americans in Gaza are 100% mercenaries
Top photo credit: Times of India/You Tube/Screengrab: US contractors deployed in Gaza in February 2025.

Not Blackwater or Wagner, Americans in Gaza are 100% mercenaries

Military Industrial Complex

Americans working for a little known U.S.-based private military contractor have begun to come forward to media and members of Congress with charges that their work has involved using live ammunition for crowd control and other abusive measures against unarmed civilians seeking food at controversial food distribution sites run by the Global Humanitarian Fund (GHF) in Gaza.

UG Solutions was hired by the GHF to secure and deliver food into Gaza. The GHF, with the help of the PMCs claims to have provided nearly 100 million meals to Gaza. Israel put GHF in control of what used to be the UN-led aid mission.

keep readingShow less
Trump was right to block Taiwan president's transit through US
Top photo credit: Lai Ching-te (William Lai), the President of Taiwan pose with soldier during his inspection of the Navy's Taiwan-built Xu Jiang stealth missile corvettes in Keelung, Taiwan, in July 13, 2024. (JamesonWu1972/Shutterstock)

Trump was right to block Taiwan president's transit through US

Asia-Pacific

Earlier this week, the Financial Times reported that the Trump administration denied permission for Taiwanese President Lai Ching-te to transit the U.S. en route to his diplomatic trip to Latin America. The U.S. decision eventually led Lai to cancel his trip, according to the report.

The Trump administration’s blocking of Lai’s stopover has drawn criticism across Washington’s foreign policy establishment, including from think tank experts and former officials. Some critics stress the moral inadequacy of the decision, arguing that the U.S. should not be turning its back on Taiwan, a longtime democratic friend, particularly when the island is subject to increasing diplomatic and military pressure from China. Others point to the danger of eroding deterrence; that is, how Washington’s decision might signal weakness and embolden Beijing at a critical moment.

keep readingShow less

LATEST

QIOSK

Newsletter

Subscribe now to our weekly round-up and don't miss a beat with your favorite RS contributors and reporters, as well as staff analysis, opinion, and news promoting a positive, non-partisan vision of U.S. foreign policy.