Original Securities and Exchange Atonement Act of 2025

This bill, titled the Original Securities and Exchange Atonement Act of 2025, would overhaul corporate reporting under the Securities Act of 1933 by requiring large issuers (as defined) to conduct an independent racial equity audit every two years and to publicly disclose the results and the steps they will take to address any ties to slavery. The initial audit would be due within six months of enactment, with subsequent audits every two years. Reports must cover civil rights, equity, diversity and inclusion policies, and whether the issuer or its predecessors or affiliates had direct or indirect ties to or profited from slavery. If ties are found, issuers must describe reconciliation steps, which could include targeted programs such as investments in low- to moderate-income communities, support for historically Black colleges and organizations, and other related actions. The bill also creates new enforcement mechanisms, including fines for noncompliance or false reporting, a private right of action for harmed investors, and whistleblower rewards. In addition to these audit and disclosure obligations, the bill establishes the Office of Minority Low to Moderate Income Programs within the Department of the Treasury. This office would oversee grants to support minority community wealth-building efforts and atonement-related programs, with an authorized appropriation of $3 billion. Some fines collected under the audit provisions would be split between the Treasury and the Department of Housing and Urban Development to fund housing counseling, downpayment and foreclosure assistance, affordable housing initiatives, and equity planning under fair housing law.