Restore Trust in Government Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6731 Introduced in House (IH)]

<DOC>

119th CONGRESS
  1st Session
                                H. R. 6731

 To amend chapter 131 of title 5 to prohibit Members of Congress, the
President, Vice President, and their spouses and dependents from owning
               or trading stocks, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           December 16, 2025

Mr. Magaziner (for himself, Ms. Jayapal, Mr. Morelle, Mr. Jeffries, Ms.
Clark of Massachusetts, and Mr. Aguilar) introduced the following bill;
which was referred to the Committee on Oversight and Government Reform,
and in addition to the Committees on House Administration, and Ways and
 Means, for a period to be subsequently determined by the Speaker, in
   each case for consideration of such provisions as fall within the
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 To amend chapter 131 of title 5 to prohibit Members of Congress, the
President, Vice President, and their spouses and dependents from owning
               or trading stocks, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Restore Trust in Government Act''.

SEC. 2. RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED INVESTMENTS.

    (a) Table of Contents.--The table of contents for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:

     subchapter iv. restrictions on trade and ownership of covered
                              investments

13151. Definitions.
13152. Trade and ownership of covered investments.
13153. Penalties.
    (b) Restrictions.--Chapter 131 of title 5, United States Code, is
amended by adding at the end a new subchapter:

    ``SUBCHAPTER IV--RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED
                              INVESTMENTS

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Commodity.--The term `commodity'--
                    ``(A) has the meaning given the term in section 1a
                of the Commodity Exchange Act (7 U.S.C. 1a); and
                    ``(B) does not include a precious metal (as defined
                in section 1027.100 of title 31, Code of Federal
                Regulations).
            ``(2) Covered individual.--The term `covered individual'
        means any of the following:
                    ``(A) A Member of Congress, as defined in section
                13101.
                    ``(B) A dependent child (as defined in section
                13101) or a spouse of a Member of Congress.
                    ``(C) A trustee of a trust in which an individual
                described in subparagraph (A) or (B) has a beneficial
                interest in the principal or income of the trust as
                described in section 1403(b)(5) of the Internal Revenue
                Code of 1986.
                    ``(D) The President, or the spouse or a dependent
                child (as defined in section 13101) of the President.
                    ``(E) The Vice President, or the spouse or a
                dependent child (as defined in section 13101) of the
                Vice President.
            ``(3) Covered investment.--The term `covered investment'--
                    ``(A) means an investment in a security, a
                commodity, a future, or any comparable economic
                interest acquired through synthetic means, such as the
                use of a derivative, including an option, warrant, or
                other similar means; and
                    ``(B) does not include--
                            ``(i) a widely held investment fund
                        described in section 13104(f)(8) that is
                        diversified and publicly traded on a national
                        or regional stock exchange;
                            ``(ii) a United States Treasury bill, note,
                        or bond;
                            ``(iii) a State or municipal government
                        bill, note, or bond;
                            ``(iv) any compensation received by a
                        spouse or a dependent child described in
                        paragraph (2) from an employer of the spouse or
                        dependent child;
                            ``(v) an interest in a small business
                        concern and, in the case of an investment in a
                        family farm or ranch that qualifies as an
                        interest in a small business concern, a future
                        or commodity directly related to the farming
                        activities and products of the farm or ranch;
                            ``(vi) an interest in a limited liability
                        company created for the sole purpose of
                        purchasing or holding real estate that serves
                        as the personal residences of the Member of
                        Congress;
                            ``(vii) any share of Settlement Common
                        Stock issued under section 7(g)(1)(A) of the
                        Alaska Native Claims Settlement Act (43 U.S.C.
                        1606(g)(1)(A)); or
                            ``(viii) any share of Settlement Common
                        Stock, as defined in section 3 of the Alaska
                        Native Claims Settlement Act (43 U.S.C. 1602).
            ``(4) Diversified.--The term `diversified', with respect to
        an investment fund, means such fund does not have a stated
        policy of concentrating its investments in any industry,
        business, single country other than the United States, or bonds
        of a single State within the United States except for the State
        in which the Member of Congress resides.
            ``(5) Future.--The term `future' means a financial contract
        obligating the buyer to purchase an asset or the seller to sell
        an asset, such as a physical commodity or a financial
        investment, at a predetermined future date and price.
            ``(6) Security.--The term `security' has the meaning given
        the term in section 3(a) of the Securities Exchange Act of 1934
        (15 U.S.C. 78c(a)).
            ``(7) Small business concern.--The term `small business
        concern' has the meaning given that term under section 3 of the
        Small Business Act (15 U.S.C. 632).
            ``(8) Supervising ethics office.--The term `supervising
        ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Trade and ownership of covered investments
    ``(a) Conduct During Federal Service.--Except as described in
subsection (b)(1)(B) and subsections (e) through (g), no covered
individual may, directly or indirectly, own or trade a covered
investment.
    ``(b) Compliance.--
            ``(1) Requirement.--To comply with subsection (a)--
                    ``(A) a covered individual may not purchase a
                covered investment; and
                    ``(B) a covered individual shall divest of any
                covered investment by the effective date established in
                paragraph (2) at fair market value.
            ``(2) Effective date.--The effective date is established as
        follows:
                    ``(A) 180 days for an individual who is a covered
                individual on the date of enactment of the Restore
                Trust in Government Act.
                    ``(B) 90 days within the date on which an
                individual becomes a covered individual if such date
                occurs after the date of enactment of the Restore Trust
                in Government Act.
    ``(c) Certificates of Divestiture.--
            ``(1) Application of certificate of divestiture program.--
        For purposes of section 1043 of the Internal Revenue Code of
        1986--
                    ``(A) this section shall be treated as a Federal
                conflict of interest statute;
                    ``(B) any covered individual described in section
                13151(2)(A) shall be treated as an eligible person
                described in section 1043(b)(1)(A) of such Code; and
                    ``(C) any spouse or dependent child described in
                section 13151(2)(B) shall be treated as an eligible
                person described in section 1043(b)(1)(B) of such Code.
            ``(2) Issuance of certificate of divestiture.--
                    ``(A) In general.--Each supervising ethics office
                shall issue a certificate of divestiture to each
                covered individual required to divest under this
                subchapter upon submission of proof of compliance by
                such individual with the requirements to divest or any
                extensions granted by the supervising ethics office.
                    ``(B) Eligibility.--Such certificate shall include
                an identification of each specific property eligible
                for the application of the certificate of divestiture
                program as determined by the supervising ethics office.
    ``(d) Income Tax.--A loss from a transaction or holding involving a
covered financial instrument that is conducted in violation of this
section may not be deducted from the amount of income tax owed by the
covered individual.
    ``(e) Occupational Exception.--A spouse or dependent child of a
covered individual as described in section 13151(2)(B) may trade any
covered investment if such covered investment is not owned by a covered
individual and if such trade is performed as a function of the primary
occupation of the spouse or dependent child.
    ``(f) Trusts.--
            ``(1) Qualified blind trust.--Any covered investment held
        in a qualified blind trust as defined in section 13104(f)(3)
        shall be divested in accordance with subsection (b)(1)(B) by
        the effective date established in subsection (b)(2).
            ``(2) Family trust.--A supervising ethics office may grant
        an exemption for covered investments held in a family trust
        only if--
                    ``(A) no covered individual--
                            ``(i) is a grantor of the family trust;
                            ``(ii) contributed any covered investment
                        to the family trust; or
                            ``(iii) has any authority over a trustee of
                        the family trust, including the authority to
                        appoint, replace, or direct the actions of such
                        a trustee; and
                    ``(B) the grantor of the family trust is or was a
                family member of the covered individual.
            ``(3) Requests.--A covered individual seeking an exemption
        under paragraph (2) shall submit to the applicable supervising
        ethics office a request for the exemption, in writing,
        certifying that the conditions described in that paragraph are
        met.
    ``(g) Assets Acquired in Special Circumstances.--In the event that
a covered individual acquires a covered investment after the date of
enactment of the Restore Trust in Government Act other than by purchase
(such as by marriage, inheritance, divorce settlement, or other
circumstance), the covered individual shall have 90 days from the date
on which such investment was acquired to divest such covered investment
at fair market value.
    ``(h) Extension.--A supervising ethics office may grant a covered
individual an extension of time to comply with a divestment deadline
under this subchapter if a covered investment cannot be divested by
such deadline due to low liquidity, vesting schedules, or contractual
restrictions.
    ``(i) Interpretative Guidance.--The supervising ethics office shall
issue interpretive guidance on any relevant term not defined in this
subchapter.
``Sec. 13153. Penalties
    ``(a) In General.--
            ``(1) Penalties.--Any covered individual who violates the
        restrictions on trading or ownership of covered investments in
        section 13152 shall, at the direction of the supervising ethics
        office--
                    ``(A) pay a fee equal to ten percent of the value
                of the covered investment; and
                    ``(B) disgorge the profits of any transaction that
                violates the provisions of this subchapter.
            ``(2) Payment of penalty to treasury.--A penalty imposed
        under paragraph (1)(B) shall be payable into the Treasury of
        the United States.
    ``(b) Payment Restrictions.--A Member of Congress may not pay any
of the penalties under this section by using amounts from the following
sources:
            ``(1) The Members' Representational Allowance.
            ``(2) The Senators' Official Personnel and Office Expense
        Account.
            ``(3) Any contribution (as defined in section 301(8) of the
        Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8)))
        accepted as a candidate, and any other donation received as
        support for activities of the individual as a holder of Federal
        office.
    ``(c) Publication.--Each supervising ethics office shall publish on
a publicly available website a description of--
            ``(1) each fine assessed by the supervising ethics office
        pursuant to this section;
            ``(2) the reason why each such fine was assessed; and
            ``(3) the result of each assessment.''.
                                 <all>