As President Trump’s nominees work their way through the process of joining the administration, many are being required to divest from stocks and other assets that could pose conflicts of interests for them in their new jobs.
For example, Trump’s pick for deputy secretary of the Department of Labor, Keith Sonderling, was asked by the Office of Government Ethics to sell his shares in companies including Amazon, McDonald’s, Apple, and Lowe’s that could very likely have stakes in matters that come before the department. Troy Edgar, Trump’s nominee for deputy secretary of Homeland Security, has agreed to divest from companies that the department has contracts with, including Palantir, RTX, and Honeywell.
But over in the Capitol, it’s a totally different story. Dozens of freshman members of Congress were sworn in last month with no pressure to address the potential conflicts of interest posed by their stock portfolios, and several of them were placed on legislative committees that specialize in making laws affecting the very companies and industries in which they hold large investments.
While executive branch employees are covered by conflict-of-interest statutes that prohibit them from participating in matters that directly affect their financial interests, there is no such law that applies to Congress. The House Ethics Manual explains, “No statute or rule requires the divestiture of private assets or holdings by Members or employees of the House upon entering their official position.” The manual goes on to say that members may be required to vote on matters affecting their financial interests, but that does not require abstention because most legislation’s effects would not benefit just them but instead would benefit an entire class of shareholders.
Freshman Texas Republican Rep. Craig Goldman was placed on the Energy and Natural Resources Committee and its Subcommittee on Energy. The subcommittee handles “all laws, programs, and government activities affecting energy matters, covering fossil fuel exploration, pipelines, and the strategic petroleum reserve. According to his financial disclosure, Goldman holds shares in three corporate securities, two of which are fossil fuel interests. He owns up to $1 million in Exxon Mobil stock and up to $1 million in oil and natural gas company Diamondback Energy. Goldman reports earning between $50,000 and $100,000 in dividends income per year from each of his oil stock investments.
