119th Congress (2025-2026)

HR 253

Bipartisan Restoring Faith in Government Act

Introduced

Jurisdiction

US Congress

Session

119th Congress (2025-2026)

Official source

Chamber

House

Session

119th Congress (2025-2026)

Jurisdiction

US Congress

Bill overview

The Bipartisan Restoring Faith in Government Act restricts members of Congress, their spouses, and dependents from owning or trading certain financial investments. It requires these individuals to divest of prohibited investments within 90 days, either by selling them or placing them in a qualified blind trust. The bill also limits communication between trustees and beneficiaries of these trusts and mandates that Congress certify compliance with ethics rules, making these certificates publicly available. Violations can result in civil penalties, and losses from prohibited investments cannot be deducted from income taxes.

Key provisions

Prohibits members of Congress, their spouses, and dependents from owning or trading certain financial instruments.
Requires divestment of prohibited investments within 90 days through sale or placement in a qualified blind trust.
Limits communication between trustees and beneficiaries of blind trusts.
Mandates public disclosure of compliance certificates from the supervising ethics office.
Prohibits deducting losses from prohibited investments from income taxes.
Establishes a process for qualified blind trusts, requiring prior approval from the supervising ethics office.
Specifies rules for spouses receiving financial instruments as compensation.
Includes a provision to treat the congressional investment restrictions as a Federal conflict of interest statute.

Who is affected

Members of Congress
Spouses of Members of Congress
Dependents of Members of Congress

Positions across the country

No public positions recorded for this legislation.

Arguments in favor

Reasons to support this legislation.

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Arguments opposed

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Legislative history

2025-01-09House

Referred to the Committee on House Administration, and in addition to the Committee on 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.

2025-01-09House

2025-01-09

Introduced in House

2025-01-09

Introduced in House

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Jan 9, 2025XMLView source

119th CONGRESS — 1st Session

H. R. 253

IN THE HOUSE OF REPRESENTATIVES

A BILL

To amend title 5, United States Code, to restrict trading and ownership of certain financial instruments by Members of Congress and their spouses and dependents, and for other purposes.

1.Short title

This Act may be cited as the

Bipartisan Restoring Faith in Government Act

2.Prohibition of congressional ownership of financial investments

(a)In generalChapter 131 of title 5, United States Code, is amended by adding at the end the following:

IVProhibition on Congressional Ownership of Financial Investments

13151.Definitions

In this subchapter:

(1)Covered financial instrumentThe term covered financial instrument means—

(A)

any investment in—

(i)a security (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)));

(ii)a security future (as defined in section 3(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a))); or

(iii)a commodity (as defined in section 1a of the Commodity Exchange Act (7 U.S.C. 1a)); and

(B)any economic interest comparable to an interest described in subclause (I) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means.

(2)Covered individual

The term covered individual means any of the following:

(A)

A Member of Congress.

(B)

The spouse of a Member of Congress.

(C)

The dependent of a Member of Congress.

(3)DependentThe term dependent has the meaning given that term in section 13101.

(4)Member of CongressThe term Member of Congress has the meaning given that term in section 13101.

(5)Qualified blind trustThe term qualified blind trust has the meaning given that term in section 13104(f)(3).

(6)Supervising ethics office

The term supervising ethics office has the meaning given that term in section 13101.

13152.Limitation on owning or trading certain assets

(a)Requirement

(1)In general

Except as provided in this section, no covered individual may own or trade a covered financial instrument.

(2)Exceptions

Nothing in this subchapter shall be construed to prevent a covered individual from owning or trading—

(A)a widely held investment fund (as that term is described in section 13104(f)(8)) that is registered as a management company under the Investment Company Act, as amended (15 U.S.C. 80a–1 et seq.);

(B)a United States Treasury bill, note, or bond;

(C)

any bond issued by a State or local government; or

(D)any investment under the Thrift Savings Plan.

(b)Compliance

(1)In general

To comply with the requirement under subsection (a), a covered individual shall divest of a covered financial instrument through sale or placement in a qualified blind trust in accordance with subsection (c).

(2)Assets acquired through special circumstancesIn the event that a covered individual acquires a covered financial instrument after the date of enactment of the Bipartisan Restoring Faith in Government Act other than by purchase, the covered individual shall have 90 days from the date on which such individual received such instrument to divest of such instrument through any means provided under paragraph (1).

(c)Time period for compliance

(1)Covered individuals as of date of enactment

(A)In generalAn individual who is a covered individual as of the date of enactment of Bipartisan Restoring Faith in Government Act shall have 90 days following the date of enactment of such Act to divest of such instrument through any means provided under subsection (b)(1).

(B)Special rule for spousesA covered individual who is a spouse of a Member of Congress and who receives any financial instrument as compensation for their primary employment shall divest of such financial instrument not later than 90 days after the date that the spouse is contractually permitted to sell the covered investment.

(2)Covered individuals after date of enactmentAn individual who becomes a covered individual after the date of enactment of the Bipartisan Restoring Faith in Government Act shall have 90 days from the date on which such individual becomes a covered individual to divest of such instrument through any means provided under subsection (b)(1).

(3)Qualified blind trust requirementsNotwithstanding paragraphs (1) and (2), a qualified blind trust may not be established for purposes of complying with this subchapter without the prior approval of the supervising ethics office. With respect to any such trust so approved, the applicable trustee—

(A)

shall divest of any such instrument placed in the trust not later than 6 months after the trust is established;

(B)

shall certify to the applicable supervising ethics office on an annual basis that the trustee has not provided any information on the trust’s assets or transactions to the applicable covered individual; and

(C)

may not have a close personal or business relationship with the applicable covered individual.

(d)Income taxA 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)Assets upon separationIn the case of a spouse or dependent who ceases to be a covered individual, such spouse or dependent may regain control over any covered financial instrument that was placed into a qualified blind trust pursuant to subsection (a).

(f)Proof of compliance

(1)SubmissionA Member of Congress shall submit to the supervising ethics office a pledge of compliance with the requirements of this subchapter, and shall produce, upon request of the supervising ethics office, material or information determined by the supervising ethics committee to be necessary to indicate compliance with the provisions of this subchapter.

(2)Certificate

The supervising ethics office shall provide each Member of Congress in compliance with the provisions of this Act with a certificate of compliance.

(3)Publication

The supervising ethics office shall make available, on a publicly accessible website, all certificates issued under this subsection.

13153.Enforcement

(a)ReferralThe supervising ethics office shall refer to the Attorney General the name of any covered individual who such office has reasonable cause to believe has willfully failed to comply with the requirements of section 13152.

(b)Penalty

(1)In generalThe Attorney General may bring a civil action in any appropriate United States district court against any covered individual who knowingly and willfully fails to comply with section 13152. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $50,000.

(2)LimitationA covered individual may not pay any penalty resulting from a civil action under paragraph (1) using—

(A)

funds from a Members’ Representational Allowance or Senators’ Official Personnel and Office Expense Account (as the case may be); or

(B)funds of any political committee under the Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.).

(b)Application of tax rules for sales of property To comply with conflict-of-Interest requirements

Section 1043 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(d)Application to prohibition on Congressional ownership of certain assets

(1)Treatment as conflict of interest statuteFor purposes of subsection (b)(2)(A), subchapter IV of chapter 131 of title 5, United States Code, shall be treated as a Federal conflict of interest statute.

(2)Covered individuals treated as eligible persons

For purposes of this section—

(A)

the term eligible person shall include covered individuals (as defined in section 13151 of title 5, United States Code), and

(B)

such covered individuals shall be treated as referred to in subsection (b)(1)(A) for purposes of applying subsection (b)(5)(A).

(3)Certificates of divestiture issued by ethics committee

In the case of any covered individual referred to in paragraph (2)(A), a certificate of divestiture meets the requirement of subsection (b)(2)(B) if such certificate is issued by the applicable Congressional ethics committee.

(c)Clerical amendment

The table of sections for such chapter is amended by inserting after the item relating to section 13146 the following:

SUBCHAPTER IV—PROHIBITION ON CONGRESSIONAL OWNERSHIP OF FINANCIAL INVESTMENTS

13151. Definitions.

13152. Limitation on owning or trading certain assets.

13153. Enforcement.

HR 253

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