Foreign Adversary Investment Prohibition Act

The Foreign Adversary Investment Prohibition Act would bar Members of Congress from engaging in any covered financial transaction that directly or indirectly benefits a foreign adversary (or an entity owned or operated by one) during their term in office. The bill creates a civil enforcement mechanism through the Attorney General, allowing civil actions and imposing escalating monetary penalties for violations. It defines a broad scope of what counts as a covered financial transaction—including gifts, loans, deposits, and investments in securities, futures, commodities, or synthetic derivatives—along with a specific list of designated foreign adversaries (the People’s Republic of China including Hong Kong, Cuba, Iran, North Korea, Russia, and Venezuela under Maduro). In short, the act seeks to prevent U.S. lawmakers from profiting from or supporting activities tied to designated foreign adversaries, with penalties administered through civil litigation. Implementation would require lawmakers to avoid or divest from certain financial arrangements and could influence how members manage or disclose their financial holdings while in office.