[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5106 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5106
To amend chapter 131 of title 5 to prohibit Members of Congress and
their spouses and dependents from owning or trading stocks, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 3, 2025
Mr. Roy (for himself, Mr. Magaziner, Mr. Burchett, Ms. Jayapal, Mr.
Fitzpatrick, Ms. Ocasio-Cortez, Mrs. Luna, Mr. Krishnamoorthi, Mr.
Perry, Mr. Min, Mr. Nunn of Iowa, Mr. Neguse, Mr. Cloud, Mr. Levin, Mr.
Norman, Mr. Riley of New York, and Mrs. Cammack) introduced the
following bill; which was referred to the Committee on House
Administration
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5 to prohibit Members of Congress 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 Congress 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) An individual or entity described in section
13104(f)(3)(A) with respect to a covered investment
placed in a trust for any individual described in
subparagraphs (A) or (B).
``(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 the
spouse or dependent child of a covered official
from their employer;
``(v) an interest in a small business
concern;
``(vi) an interest in a limited liability
company created for the sole purpose of
purchasing or holding real estate that serves
as the personal residence 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 (d) through (f), 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 Congress 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 Congress 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) Occupational Exception.--A spouse or dependent child of a
Member of Congress 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.
``(e) 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.
``(f) 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 Congress 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.
``(g) 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.
``(h) 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 the House of
Representatives may not pay any of the penalties under this section by
using amounts from the following sources:
``(1) The Members' Representational Allowance.
``(2) 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.''.
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