 Taking leave from university teaching, Moody was elected to the Wisconsin State Assembly in 1976, then was elected to the State Senate in 1978, where among his contributions were bills that deregulated monopoly truck hauling in the state and ended the commitment to build a major freeway through Milwaukee's lakefront park.He was also the floor leader in passing no-fault divorce legislation and decriminalization of homosexual activities.In 1982, he was elected to the US Congress to represent Wisconsin's 5th congressional district, serving five terms through 1992.