Shocking Report: Over 50 US Lawmakers Caught Holding Military Stocks! Conflict of Interest?

A recent investigation has uncovered that more than 50 U.S. legislators or members of their families have financial stakes in businesses that manufacture military equipment and weapons. This is concerning as these companies are the recipients of hundreds of billions of dollars every year from Pentagon appropriations legislation that is crafted by Congress, as reported on Thursday.

David Moore from Sludge studied 2023 financial statements and stock trades revealed in various reports and discovered that the total value of the U.S. lawmakers’ investments in defense contracting companies could be upwards of $10.9 million.

The report revealed the following:

The husband of Sen. Susan Collins (R-Maine), who is the senior member of the Defense Appropriations subcommittee, owns stocks amounting between $15,000 and $50,000 each in Boeing and RTX, as well as investments in two other defense producers. Sen. Jerry Moran (R-Kansas), another member of the Defense Appropriations subcommittee, has invested as much as $50,000 in Boeing stocks. Boeing received nearly
$33 billion in defense contracts last year. On the Democratic side, Sen. John Hickenlooper (Colo.) holds stocks worth up to $250,000 in RTX…

The most popular defense contractor stock among senators and representatives is Honeywell, an American firm that manufactures sensors and guiding equipment used by the Israeli military in their attacks on Gaza. The second most popular defense stock held by Congress members is RTX, previously known as Raytheon, the company responsible for producing missiles for Israel’s Iron Dome, among other weaponry systems.

All of the 13 senators who disclosed owning stocks in defense industries voted for the most recent National Defense Authorization Act. This act allocated a record $886.3 billion for the U.S. military while many of the legislators’ constituents struggled to meet their basic needs, as reported by Common Dreams.

Craig Holman, a government affairs lobbyist at consumer advocacy group Public Citizen, told Sludge, “There is a clear conflict of interest when a Congress member owns a significant amount of stock in a company and then votes on federal contracts that could financially benefit the same company.”

“Regardless of whether the official action is taken for personal gain, the perception of self-enrichment is equally damaging to the credibility of Congress,” Holman continued. “This type of conflict of interest is already prohibited for executive branch officials and should be for Congress as well. The ETHICS Act would appropriately address this conflict of interest by barring members of Congress and their spouses from owning stock investments entirely.”

Holman was referring to the Ending Trading and Holdings In Congressional Stocks (ETHICS) Act, which was proposed 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 National Defense Authorization Act was approved by a margin of
310-118, more than two dozen members who own shares in military companies gave their approval. The household of Michael McCaul (R-Texas), the chair of the House Foreign Affairs Committee, owns up to $2.6 million in stocks of General Electric, Oshkosh Corporation, and Woodward. Rep. Dave Joyce (R-Ohio), a member of the Defense Appropriations subcommittee, owns Boeing and General Electric stocks worth as much as $100,000.

Additional House members who may have conflicts of interest include Rep. Gerry Connolly (D-Va.), a member of the Foreign Affairs Committee, who owns Leidos stocks worth up to $248,000; Rep. Debbie Dingell (D-Mich.), who has invested in RTX stocks worth up to $100,000; and Rep. Patrick Fallon (R-Texas), a member of the Armed Services Committee, who owns Boeing stocks valued between $100,000 and $250,000.

Savannah Wooten, a Public Citizen People Over Pentagon advocate, told Sludge, “Every American should closely examine these investments to understand the extent of Congress’s involvement with defense contractors. It’s extremely unsettling that the personal gain of any Congress member might be considered when deciding how to manage and fund the most powerful military in the world.”

“Requiring elected officials to divest from the military-industrial complex before entering public service would create a safer and more secure world right from the start,” she added.