Providing for consideration of the bill (H.R. 1908) to prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes.
This measure combines a House Rules resolution (H. Res. 725) with a substantive amendment to H.R. 1908, titled the Restore Trust in Congress Act. If enacted, the bill would bar Members of Congress and their spouses and dependent children from owning or trading a broad set of investments (so-called “covered investments”) during federal service, with strict divestment deadlines, exemptions, and penalties. The Rules resolution speeds up floor consideration of H.R. 1908 and sets out how the amendment would be treated on passage, including waivers of typical points of order and a restricted debate window. The substantive provisions (in the proposed new subchapter added to Title 5) define who is covered, what counts as a covered investment, and how divestment, exemptions, and penalties would work. Key takeaways: (1) a broad ban on owning/trading covered investments for covered individuals during service, with (2) a phased divestiture deadline, (3) several exemptions (e.g., certain trusts, occupational trades by spouses/dependents, and broadly diversified funds), and (4) penalties for violations (financial penalties and disgorgement of profits) plus public disclosure of fines. The act also creates a framework for certificates of divestiture and guidance from supervising ethics offices.
Key Points
- 1Prohibition scope and who is covered
- 2- Covers any Member of Congress, their spouse, and dependent child, plus certain related individuals/entities tied to a covered investment.
- 3- Aims to restrict both direct ownership and direct trading of “covered investments” during federal service.
- 4Definition of “covered investments”
- 5- Includes securities, commodities, futures, and similar economic interests (including derivatives, options, warrants, etc.).
- 6- Excludes several categories: widely held diversified funds, U.S. Treasury securities, state/municipal bonds, compensation received by a spouse/dependent, small business interests, certain real estate holdings tied to a residence, and specific Alaska Native settlement shares.
- 7Divestment requirements and timelines
- 8- If currently a covered individual at enactment: must divest within 180 days.
- 9- If becoming a covered individual after enactment: must divest within 90 days of becoming covered.
- 10- Affected individuals may obtain extensions for liquidity issues or contractual constraints.
- 11Exemptions and exemptions process
- 12- Occupational exception: a spouse or dependent may trade a covered investment if the investment is not owned by the covered individual and the trade is part of the spouse/dependent’s primary occupation.
- 13- Trust exemptions:
- 14- Qualified blind trusts must divest per the general divestment rule.
- 15- Family trusts may receive exemptions if no covered individual has control, contributed, or has authority over the trustee, and the grantor is a family member.
- 16- Certification and exemption requests must go through the supervising ethics office.
- 17Certificates of divestiture
- 18- Supervising ethics offices issue certificates confirming compliance with divestment.
- 19- Certificates identify which investments are eligible for the divestiture program.
- 20Penalties for violations
- 21- If a violation occurs, the covered individual must pay a penalty equal to 10% of the value of the covered investment and disgorge any profits from the prohibited transaction.
- 22- Penalties are payable to the U.S. Treasury.
- 23Payment restrictions and transparency
- 24- Members may not use certain funds to pay penalties (e.g., Representational Allowance, campaign donations, and other presidential/offices-related funds).
- 25- Ethics offices must publicly disclose details of fines, including reasons and results, on a government website.
- 26Administrative guidance
- 27- Supervising ethics offices may issue interpretive guidance to define terms not explicitly defined in the statute.
- 28Parliamentary procedure (as part of H. Res. 725)
- 29- The resolution provides for immediate consideration of H.R. 1908, waives points of order, and sets a limited debate window with a motion to recommit available.
- 30- The amendment to H.R. 1908 would be considered as adopted under the resolution.