H.R. 6731

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6731 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6731

To amend chapter 131 of title 5 to prohibit Members of Congress, the 
President, Vice President, and their spouses and dependents from owning 
or trading stocks, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 16, 2025

Mr. Magaziner (for himself, Ms. Jayapal, Mr. Morelle, Mr. Jeffries, Ms. 
Clark of Massachusetts, and Mr. Aguilar) introduced the following bill; 
which was referred to the Committee on Oversight and Government Reform, 
and in addition to the Committees on House Administration, and Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the 
jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend chapter 131 of title 5 to prohibit Members of Congress, the 
President, Vice President, and their spouses and dependents from owning 
or trading stocks, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Restore Trust in Government Act''.

SEC. 2. RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED INVESTMENTS.

(a) Table of Contents.--The table of contents for chapter 131 of 
title 5, United States Code, is amended by adding at the end the 
following:

subchapter iv. restrictions on trade and ownership of covered 
investments

13151. Definitions.
13152. Trade and ownership of covered investments.
13153. Penalties.
(b) Restrictions.--Chapter 131 of title 5, United States Code, is 
amended by adding at the end a new subchapter:

``SUBCHAPTER IV--RESTRICTIONS ON TRADE AND OWNERSHIP OF COVERED 
INVESTMENTS

``Sec. 13151. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity'--
``(A) has the meaning given the term in section 1a 
of the Commodity Exchange Act (7 U.S.C. 1a); and
``(B) does not include a precious metal (as defined 
in section 1027.100 of title 31, Code of Federal 
Regulations).
``(2) Covered individual.--The term `covered individual' 
means any of the following:
``(A) A Member of Congress, as defined in section 
13101.
``(B) A dependent child (as defined in section 
13101) or a spouse of a Member of Congress.
``(C) A trustee of a trust in which an individual 
described in subparagraph (A) or (B) has a beneficial 
interest in the principal or income of the trust as 
described in section 1403(b)(5) of the Internal Revenue 
Code of 1986.
``(D) The President, or the spouse or a dependent 
child (as defined in section 13101) of the President.
``(E) The Vice President, or the spouse or a 
dependent child (as defined in section 13101) of the 
Vice President.
``(3) Covered investment.--The term `covered investment'--
``(A) means an investment in a security, a 
commodity, a future, or any comparable economic 
interest acquired through synthetic means, such as the 
use of a derivative, including an option, warrant, or 
other similar means; and
``(B) does not include--
``(i) a widely held investment fund 
described in section 13104(f)(8) that is 
diversified and publicly traded on a national 
or regional stock exchange;
``(ii) a United States Treasury bill, note, 
or bond;
``(iii) a State or municipal government 
bill, note, or bond;
``(iv) any compensation received by a 
spouse or a dependent child described in 
paragraph (2) from an employer of the spouse or 
dependent child;
``(v) an interest in a small business 
concern and, in the case of an investment in a 
family farm or ranch that qualifies as an 
interest in a small business concern, a future 
or commodity directly related to the farming 
activities and products of the farm or ranch;
``(vi) an interest in a limited liability 
company created for the sole purpose of 
purchasing or holding real estate that serves 
as the personal residences of the Member of 
Congress;
``(vii) any share of Settlement Common 
Stock issued under section 7(g)(1)(A) of the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1606(g)(1)(A)); or
``(viii) any share of Settlement Common 
Stock, as defined in section 3 of the Alaska 
Native Claims Settlement Act (43 U.S.C. 1602).
``(4) Diversified.--The term `diversified', with respect to 
an investment fund, means such fund does not have a stated 
policy of concentrating its investments in any industry, 
business, single country other than the United States, or bonds 
of a single State within the United States except for the State 
in which the Member of Congress resides.
``(5) Future.--The term `future' means a financial contract 
obligating the buyer to purchase an asset or the seller to sell 
an asset, such as a physical commodity or a financial 
investment, at a predetermined future date and price.
``(6) Security.--The term `security' has the meaning given 
the term in section 3(a) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)).
``(7) Small business concern.--The term `small business 
concern' has the meaning given that term under section 3 of the 
Small Business Act (15 U.S.C. 632).
``(8) Supervising ethics office.--The term `supervising 
ethics office' has the meaning given the term in section 13101.
``Sec. 13152. Trade and ownership of covered investments
``(a) Conduct During Federal Service.--Except as described in 
subsection (b)(1)(B) and subsections (e) through (g), no covered 
individual may, directly or indirectly, own or trade a covered 
investment.
``(b) Compliance.--
``(1) Requirement.--To comply with subsection (a)--
``(A) a covered individual may not purchase a 
covered investment; and
``(B) a covered individual shall divest of any 
covered investment by the effective date established in 
paragraph (2) at fair market value.
``(2) Effective date.--The effective date is established as 
follows:
``(A) 180 days for an individual who is a covered 
individual on the date of enactment of the Restore 
Trust in Government Act.
``(B) 90 days within the date on which an 
individual becomes a covered individual if such date 
occurs after the date of enactment of the Restore Trust 
in Government Act.
``(c) Certificates of Divestiture.--
``(1) Application of certificate of divestiture program.--
For purposes of section 1043 of the Internal Revenue Code of 
1986--
``(A) this section shall be treated as a Federal 
conflict of interest statute;
``(B) any covered individual described in section 
13151(2)(A) shall be treated as an eligible person 
described in section 1043(b)(1)(A) of such Code; and
``(C) any spouse or dependent child described in 
section 13151(2)(B) shall be treated as an eligible 
person described in section 1043(b)(1)(B) of such Code.
``(2) Issuance of certificate of divestiture.--
``(A) In general.--Each supervising ethics office 
shall issue a certificate of divestiture to each 
covered individual required to divest under this 
subchapter upon submission of proof of compliance by 
such individual with the requirements to divest or any 
extensions granted by the supervising ethics office.
``(B) Eligibility.--Such certificate shall include 
an identification of each specific property eligible 
for the application of the certificate of divestiture 
program as determined by the supervising ethics office.
``(d) Income Tax.--A loss from a transaction or holding involving a 
covered financial instrument that is conducted in violation of this 
section may not be deducted from the amount of income tax owed by the 
covered individual.
``(e) Occupational Exception.--A spouse or dependent child of a 
covered individual as described in section 13151(2)(B) may trade any 
covered investment if such covered investment is not owned by a covered 
individual and if such trade is performed as a function of the primary 
occupation of the spouse or dependent child.
``(f) Trusts.--
``(1) Qualified blind trust.--Any covered investment held 
in a qualified blind trust as defined in section 13104(f)(3) 
shall be divested in accordance with subsection (b)(1)(B) by 
the effective date established in subsection (b)(2).
``(2) Family trust.--A supervising ethics office may grant 
an exemption for covered investments held in a family trust 
only if--
``(A) no covered individual--
``(i) is a grantor of the family trust;
``(ii) contributed any covered investment 
to the family trust; or
``(iii) has any authority over a trustee of 
the family trust, including the authority to 
appoint, replace, or direct the actions of such 
a trustee; and
``(B) the grantor of the family trust is or was a 
family member of the covered individual.
``(3) Requests.--A covered individual seeking an exemption 
under paragraph (2) shall submit to the applicable supervising 
ethics office a request for the exemption, in writing, 
certifying that the conditions described in that paragraph are 
met.
``(g) Assets Acquired in Special Circumstances.--In the event that 
a covered individual acquires a covered investment after the date of 
enactment of the Restore Trust in Government Act other than by purchase 
(such as by marriage, inheritance, divorce settlement, or other 
circumstance), the covered individual shall have 90 days from the date 
on which such investment was acquired to divest such covered investment 
at fair market value.
``(h) Extension.--A supervising ethics office may grant a covered 
individual an extension of time to comply with a divestment deadline 
under this subchapter if a covered investment cannot be divested by 
such deadline due to low liquidity, vesting schedules, or contractual 
restrictions.
``(i) Interpretative Guidance.--The supervising ethics office shall 
issue interpretive guidance on any relevant term not defined in this 
subchapter.
``Sec. 13153. Penalties
``(a) In General.--
``(1) Penalties.--Any covered individual who violates the 
restrictions on trading or ownership of covered investments in 
section 13152 shall, at the direction of the supervising ethics 
office--
``(A) pay a fee equal to ten percent of the value 
of the covered investment; and
``(B) disgorge the profits of any transaction that 
violates the provisions of this subchapter.
``(2) Payment of penalty to treasury.--A penalty imposed 
under paragraph (1)(B) shall be payable into the Treasury of 
the United States.
``(b) Payment Restrictions.--A Member of Congress may not pay any 
of the penalties under this section by using amounts from the following 
sources:
``(1) The Members' Representational Allowance.
``(2) The Senators' Official Personnel and Office Expense 
Account.
``(3) Any contribution (as defined in section 301(8) of the 
Federal Election Campaign Act of 1971 (52 U.S.C. 30101(8))) 
accepted as a candidate, and any other donation received as 
support for activities of the individual as a holder of Federal 
office.
``(c) Publication.--Each supervising ethics office shall publish on 
a publicly available website a description of--
``(1) each fine assessed by the supervising ethics office 
pursuant to this section;
``(2) the reason why each such fine was assessed; and
``(3) the result of each assessment.''.
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