[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1498 Reported in Senate (RS)]
<DOC>
Calendar No. 294
119th CONGRESS
1st Session
S. 1498
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain financial instruments by Members of
Congress.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 28, 2025
Mr. Hawley (for himself, Mr. Moreno, Mr. Ossoff, Mr. Peters, and Mr.
Merkley) introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
December 10, 2025
Reported by Mr. Paul, with an amendment
[Strike out all after the enacting clause and insert the part printed
in italic]
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain financial instruments by Members of
Congress.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
<DELETED>SECTION 1. SHORT TITLE.</DELETED>
<DELETED> This Act may be cited as the ``Preventing Elected Leaders
from Owning Securities and Investments (PELOSI) Act''.</DELETED>
<DELETED>SEC. 2. BANNING INSIDER TRADING IN CONGRESS.</DELETED>
<DELETED> (a) In General.--Chapter 131 of title 5, United States
Code, is amended by adding at the end the following:</DELETED>
<DELETED>``Subchapter IV--Banning Insider Trading in Congress</DELETED>
<DELETED>``Sec. 13161. Definitions</DELETED>
<DELETED> ``In this subchapter:</DELETED>
<DELETED> ``(1) Covered financial instrument.--</DELETED>
<DELETED> ``(A) In general.--The term `covered
financial instrument' means--</DELETED>
<DELETED> ``(i) any investment in--
</DELETED>
<DELETED> ``(I) a security (as
defined in section 3(a) of Securities
Exchange Act of 1934 (15 U.S.C.
78c(a)));</DELETED>
<DELETED> ``(II) a security future
(as defined in that section);
or</DELETED>
<DELETED> ``(III) a commodity (as
defined in section 1a of the Commodity
Exchange Act (7 U.S.C. 1a));
and</DELETED>
<DELETED> ``(ii) any economic interest
comparable to an interest described in clause
(i) that is acquired through synthetic means,
such as the use of a derivative, including an
option, a warrant, or other similar
means.</DELETED>
<DELETED> ``(B) Exclusions.--The term `covered
financial instrument' does not include--</DELETED>
<DELETED> ``(i) a diversified mutual
fund;</DELETED>
<DELETED> ``(ii) a diversified exchange-
traded fund;</DELETED>
<DELETED> ``(iii) a United States Treasury
bill, note, or bond; or</DELETED>
<DELETED> ``(iv) compensation from the
primary occupation of a spouse or dependent
child of a Member of Congress.</DELETED>
<DELETED> ``(2) Dependent child; member of congress.--The
terms `dependent child' and `Member of Congress' have the
meanings given those terms in section 13101.</DELETED>
<DELETED> ``(3) Supervising ethics committee.--The term
`supervising ethics committee' means, as applicable--</DELETED>
<DELETED> ``(A) the Select Committee on Ethics of
the Senate; and</DELETED>
<DELETED> ``(B) the Committee on Ethics of the House
of Representatives.</DELETED>
<DELETED>``Sec. 13162. Prohibition on certain transactions and holdings
involving covered financial instruments</DELETED>
<DELETED> ``(a) Prohibition.--Except as provided in subsection (b),
a Member of Congress, or any spouse of a Member of Congress, may not,
during the term of service of the Member of Congress, hold, purchase,
or sell any covered financial instrument.</DELETED>
<DELETED> ``(b) Exceptions.--The prohibition under subsection (a)
shall not apply to a sale by a Member of Congress, or a spouse of a
Member of Congress, that is completed by the date that is--</DELETED>
<DELETED> ``(1) for a Member of Congress serving on the date
of enactment of the Preventing Elected Leaders from Owning
Securities and Investments (PELOSI) Act, 180 days after that
date of enactment; and</DELETED>
<DELETED> ``(2) for any Member of Congress who commences
service as a Member of Congress after the date of enactment of
the Preventing Elected Leaders from Owning Securities and
Investments (PELOSI) Act, 180 days after the first date of the
initial term of service.</DELETED>
<DELETED> ``(c) Penalties.--</DELETED>
<DELETED> ``(1) Disgorgement.--A Member of Congress shall
disgorge to the Treasury of the United States any profit from a
transaction or holding involving a covered financial instrument
that is conducted in violation of this section.</DELETED>
<DELETED> ``(2) Fines.--A Member of Congress who holds or
conducts a transaction involving, or whose spouse holds or
conducts a transaction involving, a covered financial
instrument in violation of this section may be subject to a
civil fine assessed by the applicable supervising ethics
committee under section 13164.</DELETED>
<DELETED>``Sec. 13163. Certification of compliance</DELETED>
<DELETED> ``(a) In General.--Not less frequently than annually, each
Member of Congress shall submit to the applicable supervising ethics
committee a written certification that the Member of Congress has
achieved compliance with the requirements of this subchapter.</DELETED>
<DELETED> ``(b) Publication.--The supervising ethics committees
shall publish each certification submitted under subsection (a) on a
publicly available website.</DELETED>
<DELETED>``Sec. 13164. Authority of supervising ethics
committees</DELETED>
<DELETED> ``(a) In General.--The supervising ethics committees may
implement and enforce the requirements of this subchapter, including
by--</DELETED>
<DELETED> ``(1) issuing--</DELETED>
<DELETED> ``(A) for Members of Congress--</DELETED>
<DELETED> ``(i) rules governing that
implementation; and</DELETED>
<DELETED> ``(ii) 1 or more reasonable
extensions to achieve compliance with this
subchapter, if the applicable supervising
ethics committee determines that a Member of
Congress is making a good faith effort to
divest any covered financial instruments;
and</DELETED>
<DELETED> ``(B) guidance relating to covered
financial instruments;</DELETED>
<DELETED> ``(2) publishing on the internet certifications
submitted by Members of Congress under section 13163(a);
and</DELETED>
<DELETED> ``(3) assessing civil fines against any Member of
Congress who is in violation of this subchapter, subject to
subsection (b).</DELETED>
<DELETED> ``(b) Requirements for Civil Fines.--</DELETED>
<DELETED> ``(1) In general.--Before imposing a fine pursuant
to this section, the applicable supervising ethics committee
shall provide to the applicable Member of Congress--</DELETED>
<DELETED> ``(A) a written notice describing each
covered financial instrument transaction for which a
fine will be assessed; and</DELETED>
<DELETED> ``(B) an opportunity, with respect to each
such covered financial instrument transaction--
</DELETED>
<DELETED> ``(i) for a hearing; and</DELETED>
<DELETED> ``(ii) to achieve compliance with
the requirements of this subchapter.</DELETED>
<DELETED> ``(2) Enforcement.--</DELETED>
<DELETED> ``(A) In general.--In the event of
continuing noncompliance after issuance of the notice
described in paragraph (1), the applicable supervising
ethics committee shall impose a civil penalty, in the
amount described in subparagraph (B), on the Member of
Congress to whom a notice was provided--</DELETED>
<DELETED> ``(i) on the date that is 30 days
after the date of provision of the notice;
and</DELETED>
<DELETED> ``(ii) during the period in which
such noncompliance continues, not less
frequently than once every 30 days
thereafter.</DELETED>
<DELETED> ``(B) Amount.--The amount of each civil
penalty imposed on a Member of Congress pursuant to
subparagraph (A) shall be an amount equal to 10 percent
of the value of each covered financial instrument that
was not divested in violation of this subchapter during
the period covered by the penalty.</DELETED>
<DELETED> ``(3) Publication.--Each supervising ethics
committee shall publish on a publicly available website a
description of--</DELETED>
<DELETED> ``(A) each fine assessed by the
supervising ethics committee pursuant to this
section;</DELETED>
<DELETED> ``(B) the reasons why each such fine was
assessed; and</DELETED>
<DELETED> ``(C) the result of each assessment,
including any hearing under paragraph (1)(B)(i)
relating to the assessment.</DELETED>
<DELETED> ``(4) Appeal.--A Member of Congress may appeal the
assessment of a fine under this section to a vote on the floor
of the Senate or the House of Representatives, as applicable,
as a privileged motion.</DELETED>
<DELETED>``Sec. 13165. Audit by Government Accountability
Office</DELETED>
<DELETED> ``Not later than 2 years after the date of enactment of
the Preventing Elected Leaders from Owning Securities and Investments
(PELOSI) Act, the Comptroller General of the United States shall--
</DELETED>
<DELETED> ``(1) conduct an audit of the compliance by
Members of Congress with the requirements of this subchapter;
and</DELETED>
<DELETED> ``(2) submit to the supervising ethics committees
a report describing the results of the audit conducted under
paragraph (1).''.</DELETED>
<DELETED> (b) Conforming Amendments.--</DELETED>
<DELETED> (1) Table of sections.--The table of sections for
chapter 131 of title 5, United States Code, is amended by
adding at the end the following:</DELETED>
<DELETED> ``subchapter iv--banning insider trading in congress
<DELETED>``13161. Definitions.
<DELETED>``13162. Prohibition on certain transactions and holdings
involving covered financial instruments.
<DELETED>``13163. Certification of compliance.
<DELETED>``13164. Authority of supervising ethics committees.
<DELETED>``13165. Audit by Government Accountability Office.''.
<DELETED> (2) Persons required to file.--Section 13103(f) of
title 5, United States Code, is amended--</DELETED>
<DELETED> (A) in paragraph (9), by striking ``as
defined in section 13101 of this title'';</DELETED>
<DELETED> (B) in paragraph (10), by striking ``as
defined in section 13101 of this title'';</DELETED>
<DELETED> (C) in paragraph (11), by striking ``as
defined in section 13101 of this title''; and</DELETED>
<DELETED> (D) in paragraph (12), by striking ``as
defined in section 13101 of this title''.</DELETED>
<DELETED> (3) Lobbying disclosure act of 1995.--Section
3(4)(D) of the Lobbying Disclosure Act of 1995 (2 U.S.C.
1602(4)(D)) is amended by striking ``legislative branch
employee serving in a position described under section
13101(13) of title 5, United States Code'' and inserting
``officer or employee of Congress (as defined in section 13101
of title 5, United States Code)''.</DELETED>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Halting Ownership and Non-Ethical
Stock Transactions (HONEST) Act''.
SEC. 2. DIVESTMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS, THE
PRESIDENT, THE VICE PRESIDENT, AND THEIR SPOUSES AND
DEPENDENT CHILDREN.
(a) In General.--Chapter 131 of title 5, United States Code, is
amended by adding at the end the following:
``Subchapter IV--Certain Assets of Members of Congress, the President,
the Vice President, and Their Spouses and Dependent Children
``Sec. 13161. Definitions
``In this subchapter:
``(1) Commodity.--The term `commodity' has the meaning
given the term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
``(2) Covered investment.--
``(A) In general.--The term `covered investment'
means--
``(i) an investment in--
``(I) a security;
``(II) a commodity;
``(III) a future; or
``(IV) a digital asset;
``(ii) any economic interest comparable to
an interest described in clause (i) that is
acquired through synthetic means, such as the
use of a derivative, including an option,
warrant, or other similar means; or
``(iii) any interest described in clause
(i) or (ii) that is held directly, or in which
an individual has an indirect, beneficial, or
economic interest, through--
``(I) an investment fund or holding
company;
``(II) a trust;
``(III) an employee benefit plan;
or
``(IV) a deferred compensation
plan, including a carried interest or
other agreement tied to the performance
of an investment, other than a fixed
cash payment.
``(B) Exclusions.--The term `covered investment'
does not include--
``(i) a diversified mutual fund (including
any holdings of such a fund);
``(ii) a diversified exchange-traded fund
(including any holdings of such a fund);
``(iii) a United States Treasury bill,
note, or bond;
``(iv) compensation from the primary
occupation of the spouse of a covered person,
or any security that is issued or paid by an
operating business that is the primary employer
of such a spouse that is issued or paid to such
a spouse;
``(v) holding and acquiring any security
that is issued or paid as compensation from
corporate board service by the spouse of a
covered person, including the dividend
reinvestment in the same security received from
the corporate board service by the spouse of a
covered person;
``(vi) any covered investment that is
traded by the spouse of a covered person in the
course of performing the primary occupation of
such a spouse, provided the investment is not
owned by a covered person or the spouse or
dependent child of a covered person;
``(vii) any investment fund held in a
Federal, State, or local government employee
retirement plan;
``(viii) a tax-free State or municipal
bond;
``(ix) an interest in a small business
concern, if the supervising ethics office
determines that the small business concern does
not present a conflict of interest, 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;
``(x) holding investment-grade corporate
bonds, provided that the corporate bonds are
held by an individual who is a cove