[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1498 Reported in Senate (RS)]
<DOC>
Calendar No. 294
119th CONGRESS
1st Session
S. 1498
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain financial instruments by Members of
Congress.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 28, 2025
Mr. Hawley (for himself, Mr. Moreno, Mr. Ossoff, Mr. Peters, and Mr.
Merkley) introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
December 10, 2025
Reported by Mr. Paul, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain financial instruments by Members of
Congress.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Preventing Elected Leaders
from Owning Securities and Investments (PELOSI) Act''.</DELETED>
<DELETED>SEC. 2. BANNING INSIDER TRADING IN CONGRESS.</DELETED>
<DELETED> (a) In General.--Chapter 131 of title 5, United States
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Subchapter IV--Banning Insider Trading in Congress</DELETED>
<DELETED>``Sec. 13161. Definitions</DELETED>
<DELETED> ``In this subchapter:</DELETED>
<DELETED> ``(1) Covered financial instrument.--</DELETED>
<DELETED> ``(A) In general.--The term `covered
financial instrument' means--</DELETED>
<DELETED> ``(i) any investment in--
</DELETED>
<DELETED> ``(I) a security (as
defined in section 3(a) of Securities
Exchange Act of 1934 (15 U.S.C.
78c(a)));</DELETED>
<DELETED> ``(II) a security future
(as defined in that section);
or</DELETED>
<DELETED> ``(III) a commodity (as
defined in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a));
and</DELETED>
<DELETED> ``(ii) any economic interest
comparable to an interest described in clause
(i) that is acquired through synthetic means,
such as the use of a derivative, including an
option, a warrant, or other similar
means.</DELETED>
<DELETED> ``(B) Exclusions.--The term `covered
financial instrument' does not include--</DELETED>
<DELETED> ``(i) a diversified mutual
fund;</DELETED>
<DELETED> ``(ii) a diversified exchange-
traded fund;</DELETED>
<DELETED> ``(iii) a United States Treasury
bill, note, or bond; or</DELETED>
<DELETED> ``(iv) compensation from the
primary occupation of a spouse or dependent
child of a Member of Congress.</DELETED>
<DELETED> ``(2) Dependent child; member of congress.--The
terms `dependent child' and `Member of Congress' have the
meanings given those terms in section 13101.</DELETED>
<DELETED> ``(3) Supervising ethics committee.--The term
`supervising ethics committee' means, as applicable--</DELETED>
<DELETED> ``(A) the Select Committee on Ethics of
the Senate; and</DELETED>
<DELETED> ``(B) the Committee on Ethics of the House
of Representatives.</DELETED>
<DELETED>``Sec. 13162. Prohibition on certain transactions and holdings
involving covered financial instruments</DELETED>
<DELETED> ``(a) Prohibition.--Except as provided in subsection (b),
a Member of Congress, or any spouse of a Member of Congress, may not,
during the term of service of the Member of Congress, hold, purchase,
or sell any covered financial instrument.</DELETED>
<DELETED> ``(b) Exceptions.--The prohibition under subsection (a)
shall not apply to a sale by a Member of Congress, or a spouse of a
Member of Congress, that is completed by the date that is--</DELETED>
<DELETED> ``(1) for a Member of Congress serving on the date
of enactment of the Preventing Elected Leaders from Owning
Securities and Investments (PELOSI) Act, 180 days after that
date of enactment; and</DELETED>
<DELETED> ``(2) for any Member of Congress who commences
service as a Member of Congress after the date of enactment of
the Preventing Elected Leaders from Owning Securities and
Investments (PELOSI) Act, 180 days after the first date of the
initial term of service.</DELETED>
<DELETED> ``(c) Penalties.--</DELETED>
<DELETED> ``(1) Disgorgement.--A Member of Congress shall
disgorge to the Treasury of the United States any profit from a
transaction or holding involving a covered financial instrument
that is conducted in violation of this section.</DELETED>
<DELETED> ``(2) Fines.--A Member of Congress who holds or
conducts a transaction involving, or whose spouse holds or
conducts a transaction involving, a covered financial
instrument in violation of this section may be subject to a
civil fine assessed by the applicable supervising ethics
committee under section 13164.</DELETED>
<DELETED>``Sec. 13163. Certification of compliance</DELETED>
<DELETED> ``(a) In General.--Not less frequently than annually, each
Member of Congress shall submit to the applicable supervising ethics
committee a written certification that the Member of Congress has
achieved compliance with the requirements of this subchapter.</DELETED>
<DELETED> ``(b) Publication.--The supervising ethics committees
shall publish each certification submitted under subsection (a) on a
publicly available website.</DELETED>
<DELETED>``Sec. 13164. Authority of supervising ethics
committees</DELETED>
<DELETED> ``(a) In General.--The supervising ethics committees may
implement and enforce the requirements of this subchapter, including
by--</DELETED>
<DELETED> ``(1) issuing--</DELETED>
<DELETED> ``(A) for Members of Congress--</DELETED>
<DELETED> ``(i) rules governing that
implementation; and</DELETED>
<DELETED> ``(ii) 1 or more reasonable
extensions to achieve compliance with this
subchapter, if the applicable supervising
ethics committee determines that a Member of
Congress is making a good faith effort to
divest any covered financial instruments;
and</DELETED>
<DELETED> ``(B) guidance relating to covered
financial instruments;</DELETED>
<DELETED> ``(2) publishing on the internet certifications
submitted by Members of Congress under section 13163(a);
and</DELETED>
<DELETED> ``(3) assessing civil fines against any Member of
Congress who is in violation of this subchapter, subject to
subsection (b).</DELETED>
<DELETED> ``(b) Requirements for Civil Fines.--</DELETED>
<DELETED> ``(1) In general.--Before imposing a fine pursuant
to this section, the applicable supervising ethics committee
shall provide to the applicable Member of Congress--</DELETED>
<DELETED> ``(A) a written notice describing each
covered financial instrument transaction for which a
fine will be assessed; and</DELETED>
<DELETED> ``(B) an opportunity, with respect to each
such covered financial instrument transaction--
</DELETED>
<DELETED> ``(i) for a hearing; and</DELETED>
<DELETED> ``(ii) to achieve compliance with
the requirements of this subchapter.</DELETED>
<DELETED> ``(2) Enforcement.--</DELETED>
<DELETED> ``(A) In general.--In the event of
continuing noncompliance after issuance of the notice
described in paragraph (1), the applicable supervising
ethics committee shall impose a civil penalty, in the
amount described in subparagraph (B), on the Member of
Congress to whom a notice was provided--</DELETED>
<DELETED> ``(i) on the date that is 30 days
after the date of provision of the notice;
and</DELETED>
<DELETED> ``(ii) during the period in which
such noncompliance continues, not less
frequently than once every 30 days
thereafter.</DELETED>
<DELETED> ``(B) Amount.--The amount of each civil
penalty imposed on a Member of Congress pursuant to
subparagraph (A) shall be an amount equal to 10 percent
of the value of each covered financial instrument that
was not divested in violation of this subchapter during
the period covered by the penalty.</DELETED>
<DELETED> ``(3) Publication.--Each supervising ethics
committee shall publish on a publicly available website a
description of--</DELETED>
<DELETED> ``(A) each fine assessed by the
supervising ethics committee pursuant to this
section;</DELETED>
<DELETED> ``(B) the reasons why each such fine was
assessed; and</DELETED>
<DELETED> ``(C) the result of each assessment,
including any hearing under paragraph (1)(B)(i)
relating to the assessment.</DELETED>
<DELETED> ``(4) Appeal.--A Member of Congress may appeal the
assessment of a fine under this section to a vote on the floor
of the Senate or the House of Representatives, as applicable,
as a privileged motion.</DELETED>
<DELETED>``Sec. 13165. Audit by Government Accountability
Office</DELETED>
<DELETED> ``Not later than 2 years after the date of enactment of
the Preventing Elected Leaders from Owning Securities and Investments
(PELOSI) Act, the Comptroller General of the United States shall--
</DELETED>
<DELETED> ``(1) conduct an audit of the compliance by
Members of Congress with the requirements of this subchapter;
and</DELETED>
<DELETED> ``(2) submit to the supervising ethics committees
a report describing the results of the audit conducted under
paragraph (1).''.</DELETED>
<DELETED> (b) Conforming Amendments.--</DELETED>
<DELETED> (1) Table of sections.--The table of sections for
chapter 131 of title 5, United States Code, is amended by
adding at the end the following:</DELETED>
<DELETED> ``subchapter iv--banning insider trading in congress
<DELETED>``13161. Definitions.
<DELETED>``13162. Prohibition on certain transactions and holdings
involving covered financial instruments.
<DELETED>``13163. Certification of compliance.
<DELETED>``13164. Authority of supervising ethics committees.
<DELETED>``13165. Audit by Government Accountability Office.''.
<DELETED> (2) Persons required to file.--Section 13103(f) of
title 5, United States Code, is amended--</DELETED>
<DELETED> (A) in paragraph (9), by striking ``as
defined in section 13101 of this title'';</DELETED>
<DELETED> (B) in paragraph (10), by striking ``as
defined in section 13101 of this title'';</DELETED>
<DELETED> (C) in paragraph (11), by striking ``as
defined in section 13101 of this title''; and</DELETED>
<DELETED> (D) in paragraph (12), by striking ``as
defined in section 13101 of this title''.</DELETED>
<DELETED> (3) Lobbying disclosure act of 1995.--Section
3(4)(D) of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1602(4)(D)) is amended by striking ``legislative branch
employee serving in a position described under section
13101(13) of title 5, United States Code'' and inserting
``officer or employee of Congress (as defined in section 13101
of title 5, United States Code)''.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Halting Ownership and Non-Ethical
Stock Transactions (HONEST) Act''.
SEC. 2. DIVESTMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS, THE
PRESIDENT, THE VICE PRESIDENT, AND THEIR SPOUSES AND
DEPENDENT CHILDREN.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``Subchapter IV--Certain Assets of Members of Congress, the President,
the Vice President, and Their Spouses and Dependent Children
``Sec. 13161. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
``(2) Covered investment.--
``(A) In general.--The term `covered investment'
means--
``(i) an investment in--
``(I) a security;
``(II) a commodity;
``(III) a future; or
``(IV) a digital asset;
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means; or
``(iii) any interest described in clause
(i) or (ii) that is held directly, or in which
an individual has an indirect, beneficial, or
economic interest, through--
``(I) an investment fund or holding
company;
``(II) a trust;
``(III) an employee benefit plan;
or
``(IV) a deferred compensation
plan, including a carried interest or
other agreement tied to the performance
of an investment, other than a fixed
cash payment.
``(B) Exclusions.--The term `covered investment'
does not include--
``(i) a diversified mutual fund (including
any holdings of such a fund);
``(ii) a diversified exchange-traded fund
(including any holdings of such a fund);
``(iii) a United States Treasury bill,
note, or bond;
``(iv) compensation from the primary
occupation of the spouse of a covered person,
or any security that is issued or paid by an
operating business that is the primary employer
of such a spouse that is issued or paid to such
a spouse;
``(v) holding and acquiring any security
that is issued or paid as compensation from
corporate board service by the spouse of a
covered person, including the dividend
reinvestment in the same security received from
the corporate board service by the spouse of a
covered person;
``(vi) any covered investment that is
traded by the spouse of a covered person in the
course of performing the primary occupation of
such a spouse, provided the investment is not
owned by a covered person or the spouse or
dependent child of a covered person;
``(vii) any investment fund held in a
Federal, State, or local government employee
retirement plan;
``(viii) a tax-free State or municipal
bond;
``(ix) an interest in a small business
concern, if the supervising ethics office
determines that the small business concern does
not present a conflict of interest, 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;
``(x) holding investment-grade corporate
bonds, provided that the corporate bonds are
held by an individual who is a covered person,
or a spouse or dependent child of a covered
person, on the date of enactment of the Halting
Ownership and Non-Ethical Stock Transactions
(HONEST) Act;
``(xi) 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
``(xii) any share of Settlement Common
Stock, as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
``(C) Rule of construction.--Nothing in this
paragraph shall be construed to imply that particular
digital assets are not securities, commodities, or
other types of covered investments.
``(3) Covered person.--The term `covered person' means--
``(A) a Member of Congress;
``(B) the President of the United States; or
``(C) the Vice President of the United States.
``(4) Custody.--The term `custody' has the meaning given
the term in section 275.206(4)-2(d) of title 17, Code of
Federal Regulations, as in effect on the date of enactment of
the Halting Ownership and Non-Ethical Stock Transactions
(HONEST) Act (or any successor regulation).
``(5) Dependent child.--The term `dependent child' means,
with respect to any covered person, any individual who is--
``(A) under 19 years of age; and
``(B) a dependent of the covered person within the
meaning of section 152 of the Internal Revenue Code of
1986.
``(6) Digital asset.--The term `digital asset' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology.
``(7) Diversified.--The term `diversified', with respect to
a fund, trust, or plan, means that the fund, trust, or plan
does not have a stated policy of concentrating its investments
in any single industry, business, or single country other than
the United States.
``(8) Future.--The term `future' means--
``(A) a security future (as defined in section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))); and
``(B) any other contract for the sale of a
commodity for future delivery.
``(9) Illiquid investment.--The term `illiquid investment'
means an interest in a private fund, as defined in section
202(a) of the Investment Advisers Act of 1940 (15 U.S.C. 80b-
2(a)).
``(10) Interested party.--The term `interested party' has
the meaning given the term in section 13104(f)(3)(E).
``(11) Member of congress; supervising ethics office.--The
terms `Member of Congress' and `supervising ethics office' have
the meanings given those terms in section 13101.
``(12) Qualified blind trust.--The term `qualified blind
trust' has the meaning given the term in section 13104(f)(3).
``(13) 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)).
``(14) Small business concern.--The term `small business
concern' has the meaning given the term under section 3 of the
Small Business Act (15 U.S.C. 632).
``Sec. 13162. Trading covered investments
``(a) Ban on Trading.--Except as provided in subsection (b)--
``(1) effective on the date of enactment of the Halting
Ownership and Non-Ethical Stock Transactions (HONEST) Act, a
covered person shall not purchase any covered investment;
``(2) effective on the date that is 90 days after the date
of enactment of the Halting Ownership and Non-Ethical Stock
Transactions (HONEST) Act, a covered person shall not sell any
covered investment, except as provided in section 13163(a)(1);
and
``(3) on and after the applicable effective date described
in section 13163(j), an individual who is a spouse or dependent
child of a covered person shall not purchase any covered
investment or sell any covered investment, except as provided
in section 13163(a)(1).
``(b) Exception.--Notwithstanding subsection (a), a covered person
may divest a covered investment as directed by the relevant supervising
ethics office pursuant to this subchapter.
``(c) Joint Covered Investment.--Any covered investment reported to
the supervising ethics office as jointly owned by a covered person and
the spouse of the covered person shall be deemed to be a covered
investment of the covered person for purposes of this section.
``Sec. 13163. Addressing owned covered investments
``(a) Covered Persons.--
``(1) Divestiture.--
``(A) Requirements.--
``(i) Officials sworn in before the date of
enactment.--Subject to paragraph (2) and the
amendments made under subsection (b), a covered
person who is sworn into office on or before
the date of enactment of the Halting Ownership
and Non-Ethical Stock Transactions (HONEST)
Act, not later than the effective date
described in subsection (j)(1), subject to any
extension granted under subparagraph (C)(iii)
of this paragraph, shall divest each covered
investment owned or in the custody of--
``(I) the covered person; or
``(II) a spouse or dependent child
of the covered person.
``(ii) Officials sworn in after the date of
enactment.--Subject to paragraph (2) and the
amendments made under subsection (b), a covered
person who is sworn into office after the date
of enactment of the Halting Ownership and Non-
Ethical Stock Transactions (HONEST) Act, not
later than the effective date described in
subsection (j)(2), subject to any extension
granted under subparagraph (C)(iii) of this
paragraph, shall divest each covered investment
owned or in the custody of--
``(I) the covered person; or
``(II) a spouse or dependent child
of the covered person.
``(B) Illiquid investments.--
``(i) Officials sworn in before the date of
enactment.--In the case of a covered person who
is sworn into office on or before the date of
enactment of the Halting Ownership and Non-
Ethical Stock Transactions (HONEST) Act, if the
covered person commences a new term of service
as a Member of Congress, President, or Vice
President after such date of enactment and
holds an illiquid investment at that time, the
covered person shall divest the illiquid
investment not later than the date that is--
``(I) after the effective date
described in subsection (j)(1); and
``(II) 90 days after the date on
which the covered person is
contractually permitted to sell the
illiquid investment.
``(ii) Officials sworn in after the date of
enactment.--In the case of a covered person who
is sworn after the date of enactment of the
Halting Ownership and Non-Ethical Stock
Transactions (HONEST) Act, if the covered
person holds an illiquid investment on the date
on which the covered person commences such term
of service as a Member of Congress, President,
or Vice President, the covered person shall
divest the illiquid investment on the date that
is--
``(I) after the effective date
described in subsection (j)(2); and
``(II) not later than 90 days after
the date on which the covered person is
contractually permitted to sell the
illiquid investment.
``(C) Qualified blind trusts.--
``(i) Prohibition on future qualified blind
trusts.--Except as provided in clause (iii), on
and after the date that is 180 days after the
applicable effective date described in
subsection (j), neither a covered person nor
any spouse or dependent child of the covered
person may maintain a qualified blind trust.
``(ii) Mandatory sale of covered
investments in existing qualified blind
trusts.--
``(I) In general.--The trustee of a
qualified blind trust holding covered
investments shall, at a time elected by
the covered person, on behalf of a
covered person, and in accordance with
clause (iv)--
``(aa) divest all covered
investments held in the
qualified blind trust for the
purposes of complying with the
divestiture requirements under
this section, in accordance
with subparagraph (A); and
``(bb) dissolve the
qualified blind trust in
accordance with this chapter
and guidance from the
supervising ethics office.
``(II) Notice of compliance.--
``(aa) Notice of
divestiture.--
``(AA) In
general.--Upon the
completion of
divestiture of all
covered investments
pursuant to subclause
(I)(aa), the trustee
shall submit to the
supervising ethics
office and the
applicable covered
person a written notice
stating that the
trustee has completed
divestiture of all
covered investments
held in the qualified
blind trust pursuant to
subclause (I)(aa).
``(BB)
Publication.--The
supervising ethics
office shall publish
the notice required
under subitem (AA) on
the website of the
supervising ethics
office.
``(bb) Notice of
dissolution.--Upon the
dissolution of a qualified
blind trust pursuant to
subclause (I)(bb), the trustee
shall submit to the supervising
ethics office and the
applicable covered person a
written notice stating that the
trust has dissolved the
qualified blind trust pursuant
to subclause (I)(bb) and shall
include a list of the assets
held in the qualified blind
trust on the date of the
dissolution of such trust and
the category of value of each
such asset.
``(iii) Extension of mandatory sale of
covered investments.--
``(I) Request.--Each covered person
who maintains a qualified blind trust
established by the covered person, or a
spouse or dependent child of the
covered person, in any case in which
the trustee of the qualified blind
trust believes the size or complexity
of the covered investments in the
qualified blind trust warrant such
extension may apply to the supervising
ethics office for an extension of the
period described in subparagraph (A).
``(II) Duration.--An extension
granted under subclause (I) shall not
exceed 90 days.
``(iv) Communications.--A covered person
may communicate with and direct the trustee of
their qualified blind trust for the purposes
of--
``(I) determining when divestment
of covered investments in the qualified
blind trust should occur, pursuant to
subparagraph (A) of this paragraph,
clause (ii) of this subparagraph, or
section 13162(b), as applicable;
``(II) determining which permitted
property covered investments should be
divested into; and
``(III) whether the trustee
utilizes a certificate of divestiture
pursuant to section 1043(b) of the
Internal Revenue Code of 1986, as
amended by subsection (b) of this
section.
``(2) Exception for dependents.--An individual who is a
dependent child of a covered person may have a legal guardian
hold or trade on behalf of the dependent child 1 or more
covered investments provided that the value of the covered
investments in total does not exceed $10,000.
``(b) Tax Treatment of Divestitures.--
``(1) In general.--Section 1043(b) of the Internal Revenue
Code of 1986 is amended--
``(A) in paragraph (1)(A), by inserting `or a
covered person (as defined in section 13161 of title 5,
United States Code),' after `of the Federal
Government,';
``(B) in paragraph (2)(B)--
``(i) by striking `employees, or' and
inserting `employees,'; and
``(ii) by inserting `or the applicable
supervising ethics office (as defined in
section 13101 of title 5, United States Code),
in the case of a covered person' after
`judicial officers,'; and
``(C) in paragraph (3), by striking `or any
diversified investment fund approved by regulations
issued by the Office of Government Ethics' and
inserting `, any diversified investment fund approved
by regulations issued by the Office of Government
Ethics (in the case of any eligible person who is not a
covered person (as defined in section 13161 of title 5,
United States Code)), or any diversified mutual fund or
a diversified exchange-traded fund described in clause
(i) or (ii) of section 13161(2)(B) of title 5, United
States Code (in the case of any eligible person who is
a covered person (as so defined)).'.
``(2) Effective date.--The amendments made by this
subsection shall apply to sales after the date of enactment of
the Halting Ownership and Non-Ethical Stock Transactions
(HONEST) Act.
``(c) Acquisitions During Service.--
``(1) In general.--Subject to paragraph (2), and any
applicable rules issued pursuant to subsection (h)(3),
effective beginning on the date of enactment of the Halting
Ownership and Non-Ethical Stock Transactions (HONEST) Act, no
covered person, or spouse or dependent child of a covered
person, may acquire any covered investment.
``(2) Inheritances.--
``(A) In general.--Subject to subparagraph (B), a
covered person, or a spouse or dependent child of a
covered person, who inherits a covered investment shall
come into compliance as required under subsection (a)
by not later than 120 days after the date on which the
covered investment is inherited.
``(B) Extensions.--If a covered person, or a spouse
or dependent child of a covered person, is unable to
meet the requirements of subparagraph (A), the
applicable covered person may request, and the
supervising ethics office may grant, 1 or more
reasonable extensions, subject to the conditions that--
``(i) the total period of time covered by
all extensions granted for the covered
investment shall not exceed 150 days; and
``(ii) the period covered by a single
extension shall be not longer than 45 days.
``(d) Family Trusts.--
``(1) In general.--A supervising ethics office may grant an
exemption for a family trust only if--
``(A) no covered person, or spouse or dependent
child of a covered person--
``(i) is a grantor of the family trust;
``(ii) contributed any asset 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 person, or the spouse or
dependent child of the covered person.
``(2) Requests.--A covered person seeking an exemption
under paragraph (1) 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.
``(3) Publication.--A supervising ethics office shall
publish on the public website of the supervising ethics
office--
``(A) a copy of each request submitted under
paragraph (2); and
``(B) the written response of the supervising
ethics office to each request described in subparagraph
(A).
``(e) Separation From Service and Cooling-off Period Required for
Control.--During the period beginning on the date on which an
individual becomes a Member of Congress, President, or Vice President
and ending on the date that is 90 days after the date on which the
individual ceases to serve as a Member of Congress, President, or Vice
President, the covered person, and any spouse or dependent child of the
covered person, may not, except as provided in this section, otherwise
control a covered investment, including purchasing new covered
investments.
``(f) Reporting Requirements.--
``(1) Supervising ethics offices.--Each supervising ethics
office shall make available on the public website of the
supervising ethics office--
``(A) a copy of--
``(i) each notification submitted to the
supervising ethics office in accordance with
subsection (a)(1)(C)(ii)(II);
``(ii) each notice and other documentation
submitted to the supervising ethics office
under this section; and
``(iii) each written response and other
documentation issued or received by the
supervising ethics office under subsection (d);
``(B) not later than 30 days after a qualified
blind trust maintained by a covered person is
dissolved, a written notice of the dissolution of the
qualified blind trust; and
``(C) a description of each extension granted, and
each civil penalty imposed, pursuant to this section.
``(2) Federal benefits.--
``(A) Covered payment.--In this paragraph, the term
`covered payment'--
``(i) means a payment of money or any other
item of value made, or promised to be made, by
the Federal Government;
``(ii) includes--
``(I) a loan agreement, contract,
or grant made, or promised to be made,
by the Federal Government, including
such an agreement, contract, or grant
relating to agricultural activity; and
``(II) such other types of payment
of money or items of value as the
supervising ethics office may
establish, by guidance; and
``(iii) does not include--
``(I) any salary or compensation
for service performed as, or
reimbursement of personal outlay by, an
officer or employee of the Federal
Government; or
``(II) any tax refund (including a
refundable tax credit).
``(B) Reporting requirement.--Not later than 30
days after the date of receipt of a notice of any
application for, or receipt of, a covered payment by a
covered person, or a spouse or dependent child of a
covered person, including any business owned and
controlled by the covered person, spouse, or dependent
child, but in no case later than 45 days after the date
on which the covered payment is made or promised to be
made, the covered person shall submit to the applicable
supervising ethics office a report describing the
covered payment.
``(g) Enforcement.--
``(1) In general.--The applicable supervising ethics office
shall provide a written notice (including notice of the
potential for civil penalties under paragraph (2)) to any
covered person if the covered person, or the spouse or
dependent child of the covered person, as applicable--
``(A) fails to divest a covered investment owned
by, in the custody of, or held in a qualified blind
trust of, the covered person or spouse or dependent
child of a covered person, in accordance with
subsection (a)(1), subject to any extension under
subsection (a)(1)(C)(iii); or
``(B) acquires an interest in a covered investment
in violation of this section.
``(2) Civil penalties.--
``(A) In general.--In the event of continuing
noncompliance after issuance of the notice described in
paragraph (1), the supervising ethics office shall
impose a civil penalty, in the amount described in
subparagraph (B), on a covered person to whom a notice
is provided under subparagraph (A) or (B) of paragraph
(1)--
``(i) on the date that is 30 days after the
date of provision of the notice; and
``(ii) during the period in which such
noncompliance continues, not less frequently
than once every 30 days thereafter.
``(B) Amount.--The amount of each civil penalty
imposed on a covered person pursuant to subparagraph
(A) shall be equal to the greater of--
``(i) the monthly equivalent of the annual
rate of pay payable to the covered person; and
``(ii) an amount equal to 10 percent of the
value of each covered investment that was not
divested in violation of this section during
the period covered by the penalty.
``(h) Duties of Supervising Ethics Offices.--Each supervising
ethics office shall--
``(1) impose and collect civil penalties in accordance with
subsection (g);
``(2) establish such procedures and standard forms as the
supervising ethics office determines to be appropriate to
implement this section;
``(3) issue such rules and guidelines as the supervising
ethics office determines to be appropriate for the
implementation and application of this subchapter; and
``(4) publish on a website all documents and communications
described in this subsection.
``(i) Rule of Construction.--Nothing in this section shall be
construed to prevent a covered person, or a spouse or dependent child
of a covered person, from owning or trading--
``(1) a diversified mutual fund; or
``(2) a publicly traded, diversified exchange traded fund.
``(j) Effective Date.--The effective date described in this
subsection is the date on which--
``(1) in the case of a covered person who is sworn into
office on or before the date of enactment of the Halting
Ownership and Non-Ethical Stock Transactions (HONEST) Act, or
the spouse or dependent child of such a covered person, the
date on which the covered person commences a new term of
service as a Member of Congress, President, or Vice President
after such date of enactment; or
``(2) in the case of a covered person who is sworn into
office after the date of enactment of the Halting Ownership and
Non-Ethical Stock Transactions (HONEST) Act, or the spouse or
dependent child of such a covered person, the date on which the
covered person commences such term of service as a Member of
Congress, President, or Vice President.''.
(b) Clerical Amendment.--The table of sections for chapter 131 of
title 5, United States Code, is amended by adding at the end the
following:
``subchapter iv--certain assets of members of congress, the president,
the vice president, and their spouses and dependent children
``13161. Definitions.
``13162. Trading covered investments
``13163. Addressing owned covered investments''.
(c) Technical and Conforming Amendments.--
(1) Title 5.--Title 5, United States Code, is amended--
(A) in section 13103(f)--
(i) in paragraph (9), by striking ``as
defined in section 13101 of this title'';
(ii) in paragraph (10), by striking ``as
defined in section 13101 of this title'';
(iii) in paragraph (11), by striking ``as
defined in section 13101 of this title''; and
(iv) in paragraph (12), by striking ``as
defined in section 13101 of this title''; and
(B) in section 13122(f)(2)(B)--
(i) by striking ``Subject to clause (iv) of
this subparagraph, before'' each place it
appears and inserting ``Before''; and
(ii) by striking clause (iv).
(2) Lobbying disclosure act of 1995.--Section 3(4)(D) of
the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602(4)(D)) is
amended by striking ``legislative branch employee serving in a
position described under section 13101(13) of title 5, United
States Code'' and inserting ``officer or employee of Congress
(as defined in section 13101 of title 5, United States Code)''.
(3) Securities exchange act of 1934.--Section 21A of the
Securities Exchange Act of 1934 (15 U.S.C. 78u-1) is amended--
(A) in subsection (g)(2)(B)(ii), by striking
``section 13101(11)'' and inserting ``section 13101'';
and
(B) in subsection (h)(2)--
(i) in subparagraph (B), by striking ``in
section 13101(9)'' and inserting ``under
section 13101''; and
(ii) in subparagraph (C), by striking
``section 13101(10)'' and inserting ``section
13101''.
SEC. 3. PENALTY FOR STOCK ACT NONCOMPLIANCE.
(a) Fines for Failure to Report.--
(1) In general.--The STOCK Act (Public Law 112-105; 126
Stat. 291) is amended by adding at the end the following:
``SEC. 20. FINES FOR FAILURE TO REPORT.
``(a) In General.--Notwithstanding any other provision of law
(including regulations), a reporting individual shall be assessed a
fine, pursuant to regulations issued by the applicable supervising
ethics office (including the Administrative Office of the United States
Courts, as applicable), of $500 in each case in which the reporting
individual fails to file a transaction report required under this Act
or an amendment made by this Act.
``(b) Deposit in Treasury.--The fines paid under this section shall
be deposited in the miscellaneous receipts of the Treasury.''.
(2) Effective date.--The amendment made by paragraph (1)
shall apply on and after March 31, 2027.
(b) Rules, Regulations, Guidance, and Documents.--Not later than 1
year after the date of enactment of this Act, each supervising ethics
office (as defined in section 13101 of title 5, United States Code)
(including the Administrative Office of the United States Courts, as
applicable) shall amend the rules, regulations, guidance, documents,
papers, and other records of the supervising ethics office in
accordance with the amendment made by this section.
SEC. 4. ELECTRONIC FILING AND ONLINE PUBLIC AVAILABILITY OF FINANCIAL
DISCLOSURE FORMS.
(a) Members of Congress and Congressional Staff.--Section 8(b)(1)
of the STOCK Act (5 U.S.C. 13107 note) is amended--
(1) in the matter preceding subparagraph (A), by inserting
``, pursuant to subchapter I of chapter 131 of title 5, United
States Code, through databases maintained on the official
websites of the House of Representatives and the Senate'' after
``enable''; and
(2) by striking subparagraph (B) and the undesignated
matter following that subparagraph and inserting the following:
``(B) public access--
``(i) to each--
``(I) financial disclosure report
filed by a Member of Congress or a
candidate for Congress;
``(II) transaction disclosure
report filed by a Member of Congress or
a candidate for Congress pursuant to
section 13105(l); and
``(III) notice of extension,
amendment, or blind trust, with respect
to a report described in subclause (I)
or (II), pursuant to subchapter I of
chapter 131 of title 5, United States
Code; and
``(ii) in a manner that--
``(I) allows the public to search,
sort, and download data contained in
the reports described in subclause (I)
or (II) of clause (i) by criteria
required to be reported, including by
filer name, asset, transaction type,
ticker symbol, notification date,
amount of transaction, and date of
transaction;
``(II) allows access through an
application programming interface; and
``(III) is fully compliant with--
``(aa) section 508 of the
Rehabilitation Act of 1973 (29
U.S.C. 794d); and
``(bb) the most recent Web
Content Accessibility
Guidelines (or successor
guidelines).''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date that is 18 months after the date of enactment of
this Act.
SEC. 5. SEVERABILITY.
If any provision of this Act, an amendment made by this Act, or the
application of such provision or amendment to any person or
circumstance is held to be unconstitutional, the remainder of this Act
and of the amendments made by this Act, and the application of the
remaining provisions of this Act and amendments to any person or
circumstance, shall not be affected.
Calendar No. 294
119th CONGRESS
1st Session
S. 1498
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain financial instruments by Members of
Congress.
_______________________________________________________________________
December 10, 2025
Reported with an amendment