President Donald Trump’s investment portfolio bought as much as $2.55 million worth of stock in pharmaceutical companies that later benefited from changes to Medicare drug price negotiations, including purchases made just days before Trump signed the changes into law, according to a new report from congressional Democrats.
The report, which was released Friday by Democrats on Congress' Joint Economic Committee, found that Trump's pharmaceutical holdings increased from a maximum reported value of $1.7 million in 2024 to as much as $56.2 million by the end of 2025.
Up to $39.1 million was held in companies that benefited from a provision of Republicans' 2025 tax and spending law that expanded exemptions from Medicare's prescription drug price negotiation program.
His portfolio purchased as much as $2.55 million in shares of benefiting pharmaceutical companies on three dates before Trump signed the legislation in July 2025.
That included as much as $950,000 on July 1, 2025, the same day the Senate passed the bill.
Newsweek reached out to the White House for comment via email.
The White House has denied that the investments present an ethics problem. It has accused Democrats of "attempts to fabricate conflicts of interest," while the administration says Trump's investment portfolio is independently managed by third-party financial institutions without input from the president or his family.
Why It Matters
The Inflation Reduction Act, which was enacted under former President Joe Biden in 2022, gave Medicare authority to directly negotiate prices for certain high-cost prescription medications for the first time.
Republicans' 2025 legislation subsequently expanded an exemption involving drugs used to treat rare diseases, which potentially kept some high-cost medicines outside the negotiation process for longer.
Democrats are arguing the change is financially advantageous for pharmaceutical manufacturers while it also increases costs to Medicare and some patients.
A Congressional Budget Office estimate previously projected that the expanded exemptions would increase Medicare costs by about $8.8 billion over 10 years.
The timing of Trump's investments alone does not establish that Trump directed the purchases because of the legislation or traded on nonpublic information. The White House has said those investments are independently managed.
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What To Know
According to Democrats on the Joint Economic Committee, Trump's pharmaceutical stock portfolio underwent a dramatic expansion during his first year back in office.
The committee puts the maximum reported value at:
- 2024: $1.7 million in pharmaceutical stocks.
- End of 2025: $56.2 million.
The 2025 holdings in companies benefiting from the Medicare exemptions were up to $39.1 million, the report found.
There were also purchases of as much as $2.55 million in shares of benefiting drugmakers across three dates before he signed the Republican legislation in July of last year.
Most notably, up to $950,000 was purchased on July 1, the same day the Senate approved the legislation.
After the measure became law, Trump's portfolio bought up to $1 million of AbbVie stock in August 2025 as well.
Those findings are based on the ranges in Trump's financial disclosures. Politicians’ public financial disclosures are often a source of contention in both the Republican and Democratic parties.
“Members of Congress have faced scrutiny over stock trading and potential insider information for years,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. “Trump has some cover, given that independent managers reportedly execute his trades, providing for plausible deniability.”
What Medicare Change Did the Drugmakers Benefit From?
Under the 2022 Inflation Reduction Act, a drug could receive an exemption from Medicare's negotiation process if it was approved for a single rare disease or condition. Republicans' 2025 law widened the exclusion to include drugs with multiple rare-disease designations and altered when some drugs become eligible for negotiations.
The policy was intended to protect incentives for developing treatments for rare diseases as drug developers argued that the previous rules could discourage companies from researching additional rare disease uses for existing medicines.
Democrats, however, have said the broader exemption can protect highly profitable medicines from Medicare negotiations.
“People within Trump’s orbit may have access to market-moving information before the public,” Thompson said. “His growing pharmaceutical investments raise questions about potential conflicts of interest.”
The Joint Economic Committee's minority report specifically points to drugs including Keytruda, Opdivo, Darzalex, Ultomiris and Adcetris.
The Democrats’ report also found that the change could mean $21,800 more in out-of-pocket costs for treatment of certain autoimmune conditions and $9,000 more for treatment of certain cancers.
“As Americans face sky-high health care costs, President Trump and Congressional Republicans passed into law last year a new giveaway to Big Pharma that enables many pharmaceutical companies to keep charging seniors exorbitant prices for cancer treatments and other medications, the report said.
“As President Trump and Congressional Republicans passed this corporate giveaway, Big Pharma raked in higher profits that directly benefitted Trump given how much pharmaceutical stocks he has purchased since returning to office.”
What the White House Says
The White House has rejected allegations of a conflict of interest surrounding Trump's investments.
It has repeatedly denied ethics concerns and characterized Democratic criticism as "attempts to fabricate conflicts of interest," according to The Associated Press.
The administration's position is that Trump's portfolio is independently managed by third-party financial institutions and that neither Trump nor members of his family have input into how the holdings are invested.
“While votes have been held on outright bans on members of Congress holding individual stocks, so far those efforts have failed,” Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek.
“The real question continues to be less about elected officials owning random stocks and more about are they using private information to make decisions on what to buy or sell. When lawmakers make stock purchases that go up immediately after, it's not a good look.”
What Happens Next
The Democratic report is likely to add fuel to the scrutiny over Trump's private financial interests and his administration's policies, especially as November's midterm elections approach.
“There may be few consequences, given the legal protections he’s afforded,” Thompson said. “He’s exempt from certain federal conflict of interest laws and has some legal protections while in office, so I don’t see much coming from it.”
Newsweek’s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here. Contact Newsweek editors on this story: Jason Lemon and Gray R. Thomas