Restoring Trust in Public Servants Act
This bill, titled the Restoring Trust in Public Servants Act, imposes broad new ethics rules for federal officials. It would bar covered officials and their family members from owning or trading what the bill calls “covered investments” (which include securities, commodities, digital assets like cryptocurrency, and security futures, with certain indirect interests and through investment funds) and require divestment within a 90-day window in most cases. The bill also expands restrictions on outside income and board service for Members of Congress, creates a lifetime lobbying ban for former officials, tightens foreign-lobbying restrictions for former officials, and provides some tax treatment changes tied to divestitures. It includes a public disclosure requirement for violators and defines who counts as a “supervising ethics office.” Effective dates push the major provisions to apply to individuals leaving office after the first session of the 120th Congress or January 4, 2027, whichever is earlier. In short, the bill seeks to reduce conflicts of interest by prohibiting ownership of certain investments by top federal officials and their families, limiting outside income and board service for Members, and imposing a long-term (lifetime) lobbying ban after leaving office, with enforcement and transparency measures.
Key Points
- 1Covered investments and who is affected: A “covered investment” includes securities, commodities, digital assets, and security futures, plus similar interests gained through derivatives. Indirect holdings (via funds, trusts, or plans) are covered, with notable exclusions (e.g., diversified mutual funds/ETFs, U.S. Treasuries, compensation to a family member from the Member’s primary job, and investments in government employee retirement plans). The rule covers Members of Congress and many executive-branch officials, plus judicial officers and certain staff; family members are included in the prohibition.
- 2Divestment requirement and compliance period: For most covered officials and their families, any covered investments must be divested within a 90-day period after enactment or after becoming a covered official/family member, with a 90-day clock starting when a person first holds a covered investment if acquired after enactment.
- 3Penalties and enforcement: Violations trigger penalties set to reflect a standard fee per violation, with an alternative penalty equal to the monthly salary of the official or the Member’s salary for family members. A public list of violators will be posted on the supervising ethics office's website.
- 4Lifetime lobbying ban and foreign-lobbying restrictions: After leaving office, individuals would face a lifetime ban on lobbying covered executive branch officials or Members and staff of Congress, with detailed definitions of what constitutes lobbying and lobbying contacts. The bill also tightens restrictions on former Members engaging with foreign entities and principals.
- 5Outside earned income and board service for Members of Congress: The bill tightens rules on outside earned income, allowing limited income (up to 15 percent) in some cases, and restricts paid board service—though it carves out allowances for certain compensated activities (like medicine) and allows unpaid board service for nonprofits or other entities.
- 6Tax and compliance incentives: The bill would modify tax treatment for divestitures related to covered officials and their families and requires certificates of divestiture issued by designated authorities to qualify for favorable tax treatment.
- 7Effective dates: Provisions related to leaving office or employment apply to individuals who leave on or after the start of the first session of the 120th Congress sine die or January 4, 2027, whichever is earlier.