Congress
Pennsylvania Republican called out by Ethics panel for stock investments
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.
Hours after Democratic socialist candidates swept to victory in New York primary races, Republicans celebrated those victories as a boon for their own party as it struggles against headwinds from the Iran war and cost of living issues ahead of the November midterms.
Inside a closed-door House GOP meeting Wednesday morning, the head of the Republican campaign arm said the victories of candidates backed by New York Mayor Zohran Mamdani offered an opportunity for GOP House candidates to draw a sharp contrast.
Rep. Richard Hudson of North Carolina said “Democrats have a Bolshevik revolution going on in their primaries,” according to three people in the room granted anonymity to discuss the private event.
Speaker Mike Johnson also delivered remarks to Republicans setting the stakes of the election after the “radical” left-wing wins and urging Republicans to dig in and raise money to defeat Democrats this fall. He received a standing ovation, the people in the room said.
Hudson said House Minority Leader Hakeem Jeffries will take the socialists’ wins as a sign he needs to navigate further to the left. There will be no cooperation with Republicans, he added.
Other Republicans publicly seized on the left-wing triumphs Wednesday, including Sen. Bernie Moreno of Ohio — who said “the lesson is clear: if Republicans don’t act now, we will lose this country as we know it.”
“We need to be clear about what we stand for,” he wrote on X. “Closed borders, secure elections, economic prosperity for all Americans, and, most of all, proudly protecting the American way of life against socialism.”
President Donald Trump abruptly canceled a bill signing for major bipartisan legislation on housing affordability on Wednesday, saying he wouldn’t back the law until Congress passes his elections bill.
“Today’s Housing News Conference and Signing is hereby cancelled until such time as we pass the desperately needed SAVE AMERICA ACT, which I consider to be a National Emergency,” Trump said in a post to Truth Social.
Trump was scheduled to sign the 21st Century ROAD to Housing bill on Wednesday afternoon, which passed both chambers with wide bipartisan support.
Trump announced the cancellation as Speaker Mike Johnson and top House leaders held a news conference touting the bill.
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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