Rep. Budzinski. U.S. House bill targets prediction market trading by federal officials

The proposed legislation, authored by U.S. Rep. Nikki Budzinski, aims to prevent insider trading by restricting prediction market activity among federal officials and their immediate families, according to the U.S. Congress.

H.R.8076 was introduced on March 25, 2026 during the 2026 regular session of the 119th Congress. The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill amends chapter 131 of title 5, United States Code, to prohibit certain individuals from trading on prediction markets, aiming to prevent insider trading related to political events. Covered individuals include Members of Congress, their spouses and dependent children, federal officers and employees, and political appointees. The bill outlines that no covered individual may engage in any agreement or transaction based on the outcome of specific political events during their federal service. Violations of this prohibition result in penalties, including a fee equal to 10% of the transaction’s value and the requirement to forfeit any profits gained. The bill mandates the supervising ethics office to issue interpretive guidance for compliance and requires public disclosure of any fines levied.

The bill was introduced by Rep. Nikki Budzinski (Democrat-IL-13th District) and co-sponsored by Rep. Seth Magaziner (Democrat-IL-2nd District) and Rep. Adrian Smith (Republican-IL-3rd District).

Since the beginning of the current session, Rep. Budzinski has introduced another 18 bills.

Congressional bills can originate in either the U.S. House of Representatives or the U.S. Senate, except for revenue-related measures, which must begin in the House. After introduction, bills are assigned to committees for review, hearings, amendments and debate before they can advance to a vote in each chamber. If both chambers approve identical versions, the legislation is sent to the president, who may sign it into law or veto it. Congress operates in two-year terms, with each term numbered sequentially and divided into two annual sessions. The legislative process and official bill records are maintained by the U.S. Congress and published through Congress.gov.

Nikki Budzinski is a Representative from Illinois, having been elected as a Democrat to the One Hundred Eighteenth and to the succeeding Congress, serving since January 3, 2023. She holds a B.A. from the University of Illinois, Urbana-Champaign, obtained in 1999, and has served in various roles, including senior advisor to the Governor of Illinois J.B. Pritzker from 2019 to 2020 and chief of staff in the Office of Management and Budget in 2021.