[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4890 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 4890
To amend chapter 131 of title 5, United States Code, to prevent Members
of Congress and their spouses and dependent children from trading
stocks and owning stocks, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 5, 2025
Mr. Krishnamoorthi (for himself, Mr. Cloud, Ms. Ocasio-Cortez, Mr.
Neguse, Mr. Riley of New York, and Mrs. Kiggans of Virginia) introduced
the following bill; which was referred to the Committee on House
Administration, and in addition to the Committees on Oversight and
Government Reform, and the Judiciary, 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, United States Code, to prevent Members
of Congress and their spouses and dependent children from trading
stocks and owning 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 ``Ending Trading and Holdings in
Congressional Stocks (ETHICS) Act''.
SEC. 2. PLACEMENT OF CERTAIN ASSETS OF MEMBERS OF CONGRESS AND THEIR
SPOUSES AND DEPENDENT CHILDREN IN QUALIFIED BLIND TRUSTS.
(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 and Their
Spouses and Dependent Children
``Sec. 13161. Definitions
``In this title:
``(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; or
``(III) a future;
``(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 (other than a
qualified blind 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 Member of
Congress, 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
Member of Congress, including the dividend
reinvestment in the same security received from
the corporate board service by the spouse of a
Member of Congress;
``(vi) any covered investment that is
traded by the spouse of a Member of Congress in
the course of performing the primary occupation
of such a spouse, provided the investment is
not owned by 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 covered person
on the date of enactment of the Ending Trading
and Holdings in Congressional Stocks (ETHICS)
Act;
``(xi) 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
``(xii) any share of Settlement Common
Stock, as defined in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
``(3) Covered person.--The term `covered person' means--
``(A) a Member of Congress; and
``(B) a spouse or dependent child of a Member of
Congress.
``(4) Custody.--The term `custody' has the meaning given
the term in section 275.206(4)-2(d) of title 17, Code of
Federal Regulations (as in effect on the date of enactment of
the Ending Trading and Holdings in Congressional Stocks
(ETHICS) Act or a successor regulation).
``(5) Dependent child.--The term `dependent child' means,
with respect to any Member of Congress any individual who is--
``(A) under the age of 19; and
``(B) a dependent of the Member of Congress within
the meaning of section 152 of the Internal Revenue Code
of 1986.
``(6) Diversified.--The term `diversified', with respect to
a fund, trust, or plan, means that the fund, trust, or plan
does not have a stated policy of concentrating its investments
in any industry, business, or single country other than the
United States.
``(7) Future.--The term `future' means--
``(A) a security future (as defined in section 3(a)
of the Securities Exchange Act of 1934 (15 U.S.C.
78c(a))); and
``(B) any other contract for the sale of a
commodity for future delivery.
``(8) Illiquid investment.--The term `illiquid investment'
means an interest in a private fund, as defined in section
202(a)(29) of the Investment Advisers Act of 1940 (15 U.S.C.
80b-2).
``(9) Initial property.--The term `initial property' means
an asset or financial interest transferred to a qualified blind
trust by, or on behalf of, an interested party or a relative of
an interested party, regardless of whether the asset or
financial interest is transferred to the qualified blind trust
on or after the date of establishment of the qualified blind
trust.
``(10) Interested party.--The term `interested party' has
the meaning given the term in section 102(f)(3)(E).
``(11) Member of congress; supervising ethics office.--The
terms `Member of Congress' and `supervising ethics office' have
the meaning given those terms in section 13101.
``(12) Qualified blind trust.--The term `qualified blind
trust' means a qualified blind trust (as defined in section
13104(f)(3)) that has been approved in writing by the
applicable supervising ethics office under section
13104(f)(3)(D).
``(13) 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)).
``(14) Small business concern.--The term `small business
concern' has the meaning given the term under section 3 of the
Small Business Act (15 U.S.C. 632).
``Sec. 13162. Trading covered investments
``(a) Ban on Trading.--Except as provided in subsections (b) and
(c)--
``(1) effective on the date of enactment of the Ending
Trading and Holdings in Congressional Stocks (ETHICS) Act, a
Member of Congress shall not purchase any covered investment;
``(2) effective on the date that is 90 days after the date
of enactment of the Ending Trading and Holdings in
Congressional Stocks (ETHICS) Act, a Member shall of Congress
not sell any covered investment, except as provided in section
203(a)(2); and
``(3) on and after the effective date described in section
203(k), a covered person that is a spouse or dependent child of
a Member of Congress shall not purchase any covered investment
or sell any covered investment, except as provided in section
203(a)(2).
``(b) Optional Divestment Window.--Notwithstanding subsection (a)--
``(1) a Member of Congress who is sworn as a Member of
Congress on or before the date of enactment of the Ending
Trading and Holdings in Congressional Stocks (ETHICS) Act may
sell a covered investment within 90 days of the date of
enactment of such Act, provided that the Member of Congress may
not sell any covered investment at any time outside of that
period while the Member of Congress serves the term for which
the Member of Congress was elected or is reelected or appointed
as a Member of Congress except as provided in section
203(a)(2); and
``(2) a Member of Congress who is sworn as a Member of
Congress after the date of enactment of the Ending Trading and
Holdings in Congressional Stocks (ETHICS) Act may sell a
covered investment within 90 days of commencing the term of
service as a Member of Congress, provided that the Member of
Congress may not sell any covered investment at any time
outside of that period while the Member of Congress serves the
term for which the Member of Congress was elected or is
reelected or appointed as a Member of Congress except as
provided in section 203(a)(2).
``(c) Exception.--Notwithstanding subsection (a), a covered person
may divest a covered investment as directed by the relevant supervising
ethics office pursuant to this Act.
``(d) Joint Covered Investment.--Any covered investment reported to
the supervising ethics office as jointly owned by a Member of Congress
and the spouse of the Member of Congress shall be deemed to be a
covered investment of the Member of Congress for purposes of this
section.
``Sec. 13163. Addressing owned covered investments
``(a) Members of Congress.--
``(1) Certification.--Not later than 60 days after the
applicable effective date described in subsection (j), a Member
of Congress shall submit to the supervising ethics office a
certification, which the supervising ethics office shall
publish online that certifies that--
``(A) each covered investment owned by, or in the
custody of, the Member of Congress, or a spouse or
dependent child of the Member of Congress, will, by the
applicable deadline under paragraph (2), be--
``(i) divested, as described in paragraph
(2)(B); or
``(ii) placed in a qualified blind trust,
including through the establishment of a
qualified blind trust for that purpose, if
necessary, as described in paragraph (2)(A);
and
``(B) no spouse or dependent child of the Member of
Congress owns, or has custody of, covered investments
with a cumulative amount equal to more than $10,000, in
accordance with paragraph (6).
``(2) Divestiture or placement in qualified blind trust.--
``(A) Requirement.--Subject to paragraphs (3) and
(6) and subsection (b)(2), not later than 120 days
after the applicable effective date described in
subsection (j), a Member of Congress shall divest, or
place in a qualified blind trust (including by
establishing a qualified blind trust for that purpose,
if necessary), each covered investment owned or in the
custody of--
``(i) the Member of Congress; or
``(ii) a spouse or dependent child of the
Member of Congress.
``(B) Divestiture.--A covered person shall divest
any covered investment owned by or in the custody of
the covered person that is not placed in a qualified
blind trust not later than the date described in
subparagraph (A), subject to any extension granted
under paragraph (3).
``(C) Qualified blind trusts.--
``(i) Mandatory sale of initial property in
qualified blind trust.--
``(I) In general.--Subject to
clause (ii), if a covered person
places, or has placed before the
applicable effective date described in
subsection (j), 1 or more covered
investments in a qualified blind trust,
the trustee of the qualified blind
trust shall divest any such covered
investment not later than the date
specified in subclause (II).
``(II) Deadline.--The date
specified in this subclause is--
``(aa) with respect to a
covered investment placed in a
qualified blind trust before
the applicable effective date
described in subsection (j),
120 days after such applicable
effective date; and
``(bb) with respect to a
covered investment placed in a
qualified blind trust on or
after the applicable effective
date described in subsection
(j), 120 days after the date of
creation of the qualified blind
trust, as dated by the executed
qualified blind trust
agreement.
``(III) Notice of compliance.--
``(aa) In general.--Subject
to item (bb), upon completion
of the divestiture of all
initial property pursuant to
subclause (I)--
``(AA) the trustee
of a qualified blind
trust shall submit to
the supervising ethics
office and each
beneficiary of the
trust a written notice
stating that all
initial property of the
qualified blind trust
has been divested; and
``(BB) the
supervising ethics
office shall publish
the notice described in
subitem (AA) on the
website of the
supervising ethics
office.
``(bb) Contents.--Each
notice described in item
(aa)(AA)--
``(AA) shall only
identify the initial
property generally by