No Corruption in Government Act
The No Corruption in Government Act is a multi-title bill that tightens financial and ethical rules for Members of Congress and their spouses, broadens the post-employment lobbying ban, and eliminates automatic pay increases for members. Title I creates a new regime prohibiting Members and their spouses from holding, purchasing, or selling certain financial instruments (with narrow exceptions and a requirement for ethics oversight and public certification). Title II lengthens the post-employment lobbying ban for former Senators and House Members (and certain House officers), with specific penalties for violations. Title III repeals automatic pay adjustments (COLA) for Members, effectively removing automatic pay increases until a future law provides otherwise. The bill advances into effect at different points (notably for insiders later, for post-employment bans after enactment, and for pay changes at the convening of the 120th Congress).
Key Points
- 1Prohibition on certain financial holdings and transactions by Members of Congress and their spouses
- 2- Defines “covered financial instrument” (securities, security futures, commodities, and certain derivatives) and excludes diversified mutual funds, diversified ETFs, the Thrift Savings Plan, and U.S. Treasuries.
- 3- Applies during the Member’s term; new Members begin seven days after their initial term starts; holds in a qualified blind trust are exempt.
- 4- Penalties include disgorgement of profits to the Treasury, non-deductibility of losses for tax purposes, and civil fines.
- 5- Requires certification of compliance by each Member and spouse within seven days after each session begins, with public publication of certifications; the Supervising Ethics Office must conduct audits at least every two years.
- 6Expanded post-employment lobbying ban for former members
- 7- Former Senators face a 6-year ban after leaving office.
- 8- Former House Members face a 3-year ban after leaving office for attempting to influence actions before Members or staff of Congress or other legislative offices on behalf of non-governmental clients.
- 9- Former elected House officers face a 1-year post-employment prohibition.
- 10- Violations carry penalties under existing statutes.
- 11Elimination of automatic pay increases for Members
- 12- Repeals the automatic (COLA) pay adjustment mechanism for Members of Congress.
- 13- Technical amendments align the payoff language to require pay changes to be handled by law rather than automatic adjustments.
- 14- Takes effect when the next Congress (the 120th) convenes.