[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4036 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 4036
To amend title 5, United States Code, to prohibit the short sale of
certain financial investments by Members of Congress and their spouses
and dependents, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 17, 2025
Mr. Kean (for himself and Ms. Craig) introduced the following bill;
which was referred to the Committee on House Administration
_______________________________________________________________________
A BILL
To amend title 5, United States Code, to prohibit the short sale of
certain financial investments by Members of Congress and their spouses
and dependents, 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 ``No Shorting America Act''.
SEC. 2. PROHIBITION OF CONGRESSIONAL SHORT SELLING OF FINANCIAL
INVESTMENTS.
Chapter 131 of title 5, United States Code, is amended by adding at
the end the following (and by conforming the table of contents for such
chapter accordingly):
``SUBCHAPTER IV--PROHIBITION ON CONGRESSIONAL SHORT SELLING
``Sec. 13151. Definitions
``In this subchapter:
``(1) Covered financial instrument.--The term `covered
financial instrument' means--
``(A) any investment in--
``(i) a security (as defined in section
3(a) of the Securities Exchange Act of 1934 (15
U.S.C. 78c(a)));
``(ii) a security future (as defined in
section 3(a) of the Securities Exchange Act of
1934 (15 U.S.C. 78c(a))); or
``(iii) a commodity (as defined in section
1a of the Commodity Exchange Act (7 U.S.C.
1a)); and
``(B) any economic interest comparable to an
interest described in subclause (I) that is acquired
through synthetic means, such as the use of a
derivative, including an option, warrant, or other
similar means.
``(2) Covered individual.--The term `covered individual'
means any of the following:
``(A) A Member of Congress.
``(B) The spouse of a Member of Congress.
``(C) The dependent of a Member of Congress.
``(3) Dependent.--The term `dependent' has the meaning
given that term in section 13101.
``(4) Member of congress.--The term `Member of Congress'
has the meaning given that term in section 13101.
``(5) Short sale.--The term `short sale' has the meaning
given that term in section 242.200 of title 17, Code of Federal
Regulations (or any successor regulation).
``(6) Supervising ethics office.--The term `supervising
ethics office' has the meaning given that term in section
13101.
``Sec. 13152. Limitation on short sale
``(a) In General.--No covered individual may engage in a short sale
of any covered financial instrument issued by any business entity that
is listed on a national stock exchange.
``(b) Income Tax.--A loss from a short sale 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.
``(c) Proof of Compliance.--
``(1) Submission.--A Member of Congress shall submit to the
supervising ethics office a pledge of compliance with the
requirements of this subchapter, and shall produce, upon
request of the supervising ethics office, material or
information determined by the supervising ethics committee to
be necessary to indicate compliance with the provisions of this
subchapter.
``(2) Certificate.--The supervising ethics office shall
provide each Member of Congress in compliance with the
provisions of this chapter with a certificate of compliance.
``(3) Publication.--The supervising ethics office shall
make available, on a publicly accessible website, all
certificates issued under this subsection.
``Sec. 13153. Enforcement
``(a) Referral.--The supervising ethics office shall refer to the
Attorney General the name of any covered individual who such office has
reasonable cause to believe has willfully failed to comply with the
requirements of section 13152.
``(b) Penalty.--
``(1) In general.--The Attorney General may bring a civil
action in any appropriate United States district court against
any covered individual who knowingly and willfully fails to
comply with section 13152. The court in which such action is
brought may assess against such individual a civil penalty in
any amount, not to exceed $50,000.
``(2) Limitation.--A covered individual may not pay any
penalty resulting from a civil action under paragraph (1)
using--
``(A) funds from a Members' Representational
Allowance or Senators' Official Personnel and Office
Expense Account (as the case may be); or
``(B) funds of any political committee under the
Federal Election Campaign Act of 1971 (52 U.S.C. 30101
et seq.).''.
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