Report reveals 50+ US lawmakers hold military stocks
"It is an obvious conflict of interest ...," says Craig Holman, government affairs lobbyist at the consumer advocacy group Public Citizen.
At least 50 U.S. lawmakers or members of their households are financially invested in companies that make military weapons and equipment—even as these firms “receive hundreds of billions of dollars annually from congressionally-crafted Pentagon appropriations legislation,” a report published Thursday revealed.
Sludge‘s David Moore analyzed 2023 financial disclosures and stock trades disclosed in other reports and found that “the total value of the federal lawmakers’ defense contractors stock holdings could be as much as $10.9 million.”
According to the report:
The spouse of Sen. Susan Collins (R-Maine), the ranking member of the Defense Appropriations subcommittee, holds between $15,000 and $50,000 worth of shares in each of Boeing and RTX, as well as holdings in two other defense manufacturers. Sen. Jerry Moran (R-Kansas), another Defense Appropriations subcommittee member, holds up to $50,000 in the stock of Boeing, which received nearly $33 billion in defense contracts last year. On the Democratic side of the aisle, Sen. John Hickenlooper (Colo.) holds up to a quarter of a million dollars’ worth of stock in RTX…
The most widely held defense contractor stock among senators and representatives is Honeywell, an American company that makes sensors and guiding devices that are being used by the Israeli military in its airstrikes in Gaza. The second most commonly held defense stock by Congress is RTX, formerly known as Raytheon, the company that makes missiles for Israel’s Iron Dome, among other weapons systems.
All 13 senators whose households disclosed military stock holdings voted for the most recent National Defense Authorization Act, which, as Common Dreamsreported, allocated a record $886.3 billion for the U.S. military while many lawmakers’ constituents struggled to meet their basic needs.
“It is an obvious conflict of interest when a member of Congress owns significant stock investments in a company and then votes to award the same company lucrative federal contracts,” Craig Holman, government affairs lobbyist at the consumer advocacy group Public Citizen, told Sludge.
“Whether or not the official action is taken for actual self-enrichment purposes is beside the point. There is at least an appearance of self-enrichment and that appearance is just as damaging to the integrity of Congress,” Holman added. “This type of conflict of interest is already banned for executive branch officials and so should be for Congress as well. The ETHICS Act would justly avoid that conflict of interest by prohibiting members of Congress and their spouses from owning stock investments altogether.”
Holman was referring to the Ending Trading and Holdings In Congressional Stocks (ETHICS) Act, introduced earlier this year by Sens. Jeff Merkley (D-Ore.), Jon Ossoff (D-Ga.), Gary Peters (D-Mich.), and Josh Hawley (R-Mo.).
In the House of Representatives—where the 2024 NDAA passed 310-118, with the approval of over two dozen members who own shares in military companies—House Foreign Affairs Committee Chair Michael McCaul’s (R-Texas) household owns up to $2.6 million in General Electric, Oshkosh Corporation, and Woodward shares. Rep. Dave Joyce (R-Ohio), who sits on the Defense Appropriations subcommittee, owns as much as $100,000 worth of Boeing and General Electric stock.
Other House lawmakers with potential conflicts of interest include Rep. Gerry Connolly (D-Va.), a member of the Foreign Affairs Committee, who owns Leidos shares worth as much as $248,000; Rep. Debbie Dingell (D-Mich.), who owns up to $100,000 worth of RTX stock; and Rep. Patrick Fallon (R-Texas), a member of the Armed Services Committee who holds Boeing stock worth between $100,000 and $250,000.
“Every American should take a long, hard look at these holdings to conceptualize the scope of Congress’ entanglement with defense contractors,” Public Citizen People Over Pentagon advocate Savannah Wooten told Sludge. “It’s abjectly terrifying that the personal benefit of any member of Congress is factored into decisions about how to wield and fund the largest military in the world.”
“Requiring elected officials to divest from the military-industrial complex before stepping into public service would create a safer and more secure world from the outset,” she added.
