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Pennsylvania Republican called out by Ethics panel for stock investments

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A House panel tasked with investigating potential corruption charges against fellow members of Congress on Friday called on a Pennsylvania Republican to divest his family’s holdings from a steel manufacturer, citing concerns around the appearance of wrongdoing.

The bipartisan Ethics Committee had been investigating a complaint that Rep. Mike Kelly’s wife bought stock in Cleveland-Cliffs, an Ohio-based company, based on non-public information gleaned from Kelly’s position as an elected official. Although Kelly’s wife was not fully cooperative with the probe, the panel “did not find evidence that [the lawmaker] knowingly or intentionally caused his spouse to trade based on insider information.”

“It is rare for the Committee to recommend divestment of stocks where there is a potential appearance of a conflict of interest,” committee members wrote in their report. “As Representative Kelly himself noted, however, he is an ‘insider’ when it comes to Cleveland-Cliffs, by virtue of his position as the representative for his district.”

The panel urged Kelly and his wife to divest their holdings before he takes any more official actions related to Cleveland-Cliffs.

Lawmakers are barred from insider trading under the STOCK Act, which Congress passed in 2012 in direct response to concerns about lawmakers and government officials using their proprietary information to advance their own personal gain. Under this law, officials also cannot give such information to others for the purposes of stock trading.

Still, the committee was concerned that Kelly’s wife bought more stock during the investigation, and Kelly did not disclose the purchase in a timely manner — nor did he answer questions about it.

In a statement, Kelly said, “My family and I look forward to putting this distraction behind us.”

He added: “This investigation has unnecessarily lasted for nearly five years. In the years since this investigation began, the Cleveland Cliffs Butler Works plant faced an uncertain future due to the Biden administration’s reckless energy policies. Throughout this process, I have fought for the 1,400 workers at the plant, I’ve spoken with these workers, and they appreciate the hard work we have done to fight for those jobs and for Butler.”

Kelly is a member of the powerful Ways and Means Committee, which oversees tax policy, and sits on the GOP Steering Committee, which makes recommendations to the full Conference on House leadership assignments.

The Ethics Committee published a second report Friday regarding Rep. Alexandria Ocasio-Cortez (D-N.Y.), whose attendance to the 2021 Met Gala caused much consternation. The panel found that despite her attempts to comply with House rules, Ocasio-Cortez’s conduct, including her partner’s attendance at the event at no cost, was not entirely appropriate. Once she repaid the expenses, the Ethics Committee said, it would consider the matter closed.

“The Congresswoman appreciates the Committee finding that she made efforts to ensure her compliance with House Rules and sought to act consistently with her ethical requirements as a Member of the House,” said Mike Casca, her chief of staff, in a statement. “She accepts the ruling and will remedy the remaining amounts, as she’s done at each step in this process.”

The Ethics Committee also announced it would continue its probe into Rep. Sheila Cherfilus-McCormick. The Florida Democrat has faced allegations that she requested funding from a for-profit entity, in a violation of House rules, along with other potential wrongdoings.

The panel will also continue to investigate allegations against Rep. Henry Cuellar, who was indicted for federal corruption in 2024. The Department of Justice alleged that he and his wife accepted bribes from an Azerbaijan state-controlled oil company and a Mexican bank.

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Congress

Capitol agenda: Trump faces GOP critics who want a reset

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President Donald Trump Wednesday will come face-to-face with Senate Republicans for the first time in months as the party struggles to set its priorities heading into the midterms.

After weeks of shadowboxing with each other, Trump is scheduled to visit Capitol Hill and press the conference to pass his signature election security bill that has languished for months. Senate Republicans — several of whom have openly agonized that Trump isn’t focused enough on helping their party keep its tenuous control of Congress — have their own agenda for talks.

Let’s be clear: Wednesday’s lunch isn’t going to change the fate of the GOP election bill. Majority Leader John Thune told reporters Tuesday that “people at some point have to come to grips” with the fact that there aren’t the votes to nix the filibuster or pass Trump’s No. 1 priority.

But Trump is showing no sign of being ready to accept that — and indicated he intends to make the case for doing whatever it takes during the lunch with Senate Republicans.

“We’re just going to talk about SAVE America. … We have to pass it so we’re going to have to talk about that and many other things,” Trump told reporters.

Asked about Thune saying the party lacks the votes for passage, he added: “That’s what being a leader is about. … John is a leader and hopefully he can get the votes.”

While Trump wants to focus on the SAVE America Act, GOP senators expect a wider-ranging conversation, including how both sides of Pennsylvania Avenue can turn their collective attention off of a string of recent intraparty fights and toward Democrats.

“My question is how do we get all on the same page and get unified rather than squabbling amongst ourselves,” Sen. John Cornyn said he’ll ask Trump. Cornyn told reporters it’ll be his first time speaking with the president since losing his primary against Trump-backed Ken Paxton.

That may mean Trump and senators Wednesday confront festering questions about the highly unpopular Iran war in the lead up to elections.

Senate Republicans openly criticized Trump’s agreement last week to end the Iran conflict, including a $300 billion reconstruction fund. And congressional Republicans are chafing at the idea Trump is asking for tens of billions of dollars in fresh military funding without briefing most of Congress on the plan.

As lawmakers prepare for a roughly $80 billion emergency Pentagon funding request to land as soon as this week, Defense Secretary Pete Hegseth is also set to meet with the Republican Study Committee Wednesday. While the briefing is meant to focus on the funding requests, Speaker Mike Johnson suggested it could be lawmakers’ only chance for the time being to get questions answered about the administration’s Iran endgame.

“I’m sure he’ll provide a lot of information,” Johnson said when asked about further briefings beyond Hegseth’s. “I mean, we’ll see what the secretary does, and then evaluate after that.”

Also on our radar Wednesday: Democratic lawmakers are teeing up a host of amendments on the war against Iran at a House Appropriations markup of the fiscal 2027 Defense bill, where more funding talks are guaranteed to take place.

Read also: Republicans push to add billions in farm aid to Iran war package

What else we’re watching: 

— DEMOCRATIC PRIMARY SPLIT SCREEN: A Zohran Mamdani-backed trio of progressives pulled off a string of upsets during New York’s primary elections Tuesday, dealing a blow to House Minority Leader Hakeem Jeffries and his leadership allies. 

—- HOUSE GOP HUDDLES ON RECON 3.0: Johnson and key House Republicans will meet Wednesday to discuss the next steps for a possible third reconciliation bill as the clock ticks to get a budget resolution moving before the July 4 recess. The speaker said he will know more about the timing for any budget resolution to kick off another party-line bill afterwards. Still, several Budget Committee Republicans are still skeptical the effort will actually gain momentum.

Madison Fernandez and Nick Reisman contributed to this report.

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Mamdani-backed socialist ousts Espaillat in NY-13

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NEW YORK — Darializa Avila Chevalier has ousted five-term House member Rep. Adriano Espaillat, the chair of the Congressional Hispanic Caucus, in a massive victory for the Democratic Socialists of America.

Her win marks another rebuke of the Democratic establishment in New York following Zohran Mamdani’s mayoral election last year, cementing the DSA as one of the city’s most potent political forces. The upset reflects a political climate in which voters have become increasingly willing to cast aside longtime incumbents in favor of outsiders promising change.

Avila Chevalier focused much of her campaign on attacking Espaillat for accepting donations from the American Israel Public Affairs Committee and real estate interests during his career.

“I really feel that this is a fight to make sure that we are representing working-class New Yorkers who have been left behind by a politics that only serves the interests of corporations, of corporate landlords, of special interest groups that are making life in New York deeply unaffordable for so many,” Avila Chevalier said last month, during an appearance with Mamdani on MS NOW where the mayor endorsed her campaign.

Espaillat, who is the first formerly undocumented person to serve in Congress, came up short despite having the support of House Minority Leader Hakeem Jeffries, Gov. Kathy Hochul, New York Attorney General Letitia James and New York City Council Speaker Julie Menin.

Avila Chevalier, 32, was a leading organizer in the pro-Palestinian encampment at Columbia University in 2024 and is a sociology Ph.D. student at the CUNY Graduate Center. She has served as an investigator for a public defender’s office and is originally from South Florida.

For most of the race, Espaillat was widely viewed as the favorite, but Mamdani’s late May endorsement of Avila Chevalier jolted a contest that began to show signs it was tightening. An April poll from Avila Chevalier’s campaign showed her down 14 points.

Her victory came despite intense outside spending in support of Espaillat, including from the Congressional Hispanic Caucus’ campaign arm.

Avila Chevalier’s election to New York’s 13th district also shows a changing of the guard in Upper Manhattan and parts of the Bronx. Espaillat has served at the helm of a political alliance, known as the “Squadriano,” that has ruled over those areas of the city, home to large Dominican American and African American populations.

At times during the race, Espaillat and his supporters sought to frame the primary battle as a contest between gentrifiers and long-term residents.

“Those that choose or want to parachute in, after the men and women of this city, the working men and women of the city, have built our neighborhood, we’re gonna send them back home packing wherever they came from,” the 71-year-old member of Congress said last month.

The story of his political ascendance and reign in Upper Manhattan has also been characterized by an intense rivalry with Manhattan Democratic Party Chair Keith Wright, an ally of the late Rep. Charles Rangel, whom Espaillat challenged for Congress in 2012 and 2014.

But this year’s primary seems to have calmed the bitter rivalry between Espaillat and Wright amid the encroachment of the Democratic Socialists of America on disputed turf. Earlier this month, Espaillat endorsed Wright’s son , state Assemblymember Jordan Wright, who was also facing a DSA-backed challenger.

The peace pact wasn’t enough to fend off the challenge from Avila Chevalier, who seized on a progressive swing in the district ever since Mamdani handily beat former Gov. Andrew Cuomo in the mayoral primary there.

“We have come a long way from where we used to be as a party,” Mamdani said in the interview where he announced his endorsement of Avila Chevalier. “It’s time we have a new generation that not only takes us back to that ambition, but takes us forward to the tomorrow that so many New Yorkers are waiting for.”

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Former Utah Rep. Ben McAdams is on track to return to Congress

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Former Rep. Ben McAdams won his primary Tuesday, paving the way for his return to Congress.

McAdams, a moderate, staved off a roster of progressive challengers in Utah’s newly redrawn 1st District, a rare deep-blue Salt Lake City district in a deep-red state that came as a result of a messy, decadelong redistricting saga.

McAdams will enter November as the heavy favorite in a district former Vice President Kamala Harris won by nearly 24 points in 2024.

McAdams won a GOP-leaning seat in the 2018 Democratic wave and governed as a centrist, Blue Dog Democrat who pushed for a balanced budget amendment — but he lost his reelection bid in 2020. He was one of the first Democrats to signal interest in running in the new 1st District and quickly garnered support from Utah elected officials and national centrist Democrats.

His progressive opponents attempted to paint him as too conservative, pointing to his previous mixed record on abortion. One opponent, state Sen. Nate Blouin, called on the other candidates to consolidate their support behind one person to avoid splitting the progressive vote. None agreed, and McAdams — who raised more money than the three other Democrats combined — prevailed.

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