[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2852 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2852
To prohibit Federal officials from owning covered investments, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 17 (legislative day, September 16), 2025
Mr. Kim introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To prohibit Federal officials from owning covered investments, 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 ``Restoring Trust in Public Servants
Act''.
SEC. 2. OWNERSHIP OF COVERED INVESTMENTS.
(a) Definitions.--In this section:
(1) Commodity; security future.--The terms ``commodity''
and ``security future'' have the meanings given those 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 digital asset; or
(IV) a security future; and
(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.
(B) Inclusions.--The term ``covered investment''
includes an investment or economic interest described
in subparagraph (A) that is held directly, or in which
an individual has an indirect, beneficial, or economic
interest, through--
(i) an investment fund;
(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.
(C) 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 a family member of a Member of
Congress; or
(v) any investment fund held in a Federal,
State, or local government employee retirement
plan.
(D) Clarification.--An investment that achieves
compliance with applicable environmental, social, and
governance criteria shall not be considered to be a
covered investment solely by reason of that compliance.
(3) Covered official.--The term ``covered official'' means
the following:
(A) In the legislative branch, a Member of Congress
and each of the following (other than an employee who
is considered an intern or a fellow for purposes of any
law or regulation establishing a limit on the number of
employees of an office of the Senate or the House of
Representatives):
(i) An employee of a Senator (as described
in section 207(e)(9)(F) of title 18, United
States Code).
(ii) An employee of a Member of the House
of Representatives (as described in section
207(e)(9)(E) of title 18, United States Code).
(iii) An employee of a committee of
Congress (as defined in section 207(e)(9)(A) of
title 18, United States Code).
(iv) An employee on the leadership staff of
the Senate (as defined in section 207(e)(9)(I)
of title 18, United States Code).
(v) An employee on the leadership staff of
the House of Representatives (as defined in
section 207(e)(9)(H) of title 18, United States
Code).
(B) In the executive branch--
(i) the President;
(ii) the Vice President;
(iii) a political appointee; or
(iv) any officer or employee of the
executive branch who--
(I) is not a political appointee;
and
(II) occupies a position described
in paragraphs (3) through (8) of
section 13103(f) of title 5, United
States Code.
(C) A judicial officer.
(4) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger or any similar
technology.
(5) Executive branch; member of congress.--The terms
``executive branch'' and ``Member of Congress'' have the
meanings given those term in section 13101 of title 5, United
States Code.
(6) Family member.--The term ``family member'' means a
spouse or a dependent child (as defined in section 13101 of
title 5, United States Code).
(7) Judicial officer.--The term ``judicial officer''--
(A) has the meaning given the term in section 13101
of title 5, United States Code; and
(B) includes--
(i) a bankruptcy judge; and
(ii) a magistrate judge.
(8) Political appointee.--The term ``political appointee''
means any individual occupying a position in the executive
branch--
(A) who was appointed to such position by the
President, by and with the advice and consent of the
Senate;
(B) described in sections 5312 through 5316 of
title 5, United States Code (relating to the Executive
Schedule);
(C) as a noncareer appointee in the Senior
Executive Service, as defined in section 3132(a) of
title 5, United States Code; or
(D) that is of a confidential or policy-determining
character under schedule C of subpart C of part 213 of
title 5, Code of Federal Regulations, or any other
position that is excepted from the competitive service
because of the confidential policy-determining, policy-
making or policy-advocating character of the position.
(9) 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)).
(10) Supervising ethics office.--The term ``supervising
ethics office'' means any of the following:
(A) In the case of an individual described in
paragraph (3)(A)--
(i) the Select Committee on Ethics of the
Senate; or
(ii) the Committee on Ethics of the House
of Representatives.
(B) In the case of an individual described in
paragraph (3)(B), the Office of Government Ethics.
(C) In the case of a judicial officer, the Judicial
Conference of the United States.
(b) Ownership of Covered Investments.--
(1) Conduct during federal service.--Except as described in
paragraph (2), no covered official or family member of a Member
of Congress may own or trade any covered investment.
(2) Compliance.--
(A) In general.--Except as provided in subparagraph
(B), to comply with the requirements under paragraph
(1), a covered official or family member of a Member of
Congress shall divest of any covered investment prior
to the expiration of the applicable compliance period.
(B) Applicable compliance period.--In this
paragraph, the term ``applicable compliance period''
means--
(i) with respect to a covered investment
held by a covered official or family member of
a Member of Congress on the date of enactment
of this Act, the 90-day period that begins on
the date of enactment of this Act;
(ii) with respect to a covered investment
held by an individual on the date on which the
individual becomes a covered official or
becomes a family member of a Member of Congress
after the date of enactment of this Act, the
90-day period that begins on the date on which
the individual becomes a covered official or
becomes a family member of a Member of
Congress; and
(iii) with respect to a covered investment
that is first held by a covered official or a
family member of a Member of Congress after the
last day of either of the periods described in
clauses (i) or (ii), the 90-day period that
begins on the date on which the covered
investment was first held by the covered
official or family member.
(c) Penalties.--
(1) In general.--Except as provided in paragraph (2), a
covered official in violation of this section, as determined by
the supervising ethics office, shall pay a penalty in an amount
equal to the fee set forth under section 13106(d)(1) of title
5, United States Code, for each such violation.
(2) Exception.--
(A) Penalty.--An individual described in
subparagraph (C) who during any month is in violation
of this section with respect to a covered investment,
as determined by the supervising ethics office, shall
pay a penalty in an amount equal to--
(i) in the case of an individual who is a
covered official, the salary of such official
for that month; or
(ii) in the case of an individual who is a
family member of a Member of Congress, the
salary of the Member of Congress for that
month.
(B) Amount determined without regard to number of
violations.--The amount of the penalty imposed under
subparagraph (A) shall apply to an individual without
regard to the number of covered investments with
respect to which the individual is in violation during
the month in which the penalty is imposed.
(C) Individuals described.--The individuals
described in this paragraph are the following:
(i) A Member of Congress or a family member
of a Member of Congress.
(ii) The President.
(iii) The Vice President.
(iv) A political appointee who was
appointed to such position by the President, by
and with the advice and consent of the Senate.
(v) A judicial officer.
(d) Publication.--For each individual in violation of this section,
as determined by the supervising ethics office, the supervising ethics
office shall make available a list, on a publicly accessible website of
the supervising ethics office, detailing the names, occupation, and
office of employment for each such individual or, in the case of a
family member of a Member of Congress, the name of such family member
and of such Member of Congress.
(e) Tax Treatment of Divestitures.--
(1) In general.--Section 1043(b)(1) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``and'' at the end of subparagraph
(A);
(B) by striking the period at the end of
subparagraph (B) and inserting ``, and''; and
(C) by adding at the end the following new
subparagraph:
``(C) any--
``(i) covered official described in
subparagraph (B) or (C) of section 2(a)(3) of
the Restoring Trust in Public Servants Act who
is not described in subparagraph (A),
``(ii) any covered official described in
subparagraph (A) of section 2(a)(3) of such
Act, and
``(iii) any family member of a Member of
Congress (as such terms are defined in section
2(a) of such Act).''.
(2) Certificate of divestiture.--Section 1043(b)(2) of the
Internal Revenue Code of 1986 is amended--
(A) in subparagraph (A), by inserting ``, and the
Restoring Trust in Public Servants Act'' after
``including section 208 of title 18, United States
Code''; and
(B) by striking subparagraph (B) and inserting the
following:
``(B) that has been issued by--
``(i) in the case of an eligible person
described in subparagraph (A) or (B) of
paragraph (1), the President or the Director of
the Office of Government Ethics, in the case of
executive branch officers or employees, or by
the Judicial Conference of the United States
(or its designee), in the case of judicial
officers, and
``(ii) in the case of any eligible person
described in paragraph (1)(C), the supervising
ethics office (as defined in section 2(a) of
the Restoring Trust in Public Servants Act),
and''.
(3) Effective date.--The amendments made by this subsection
shall apply to sales after the date of the enactment of this
Act.
SEC. 3. BAN ON ALL OUTSIDE EARNED INCOME AND ALL SERVICE ON BOARDS BY
MEMBERS OF CONGRESS.
(a) Outside Earned Income.--
(1) In general.--Section 13143(a)(1) of title 5, United
States Code, is amended by striking ``outside earned income
attributable to such calendar year which exceeds 15 percent''
and inserting ``any outside earned income attributable to such
calendar year, except that such an officer or employee may have
outside earned income attributable to such calendar year which
does not exceed 15 percent''.
(2) Individuals becoming members during calendar year.--
Section 13143(a)(2) of title 5, United States Code, is
amended--
(A) by striking ``outside earned income
attributable to the portion of that calendar year which
occurs after such individual becomes a Member or such
an officer or employee which exceeds 15 percent'' and
inserting ``any outside earned income attributable to
the portion of that calendar year which occurs after
such individual becomes a Member or such an officer or
employee, except that such an officer or employee may
have outside earned income attributable to such portion
of that calendar year which does not exceed 15
percent''; and
(B) by striking ``such individual is a Member or
such officer or employee'' and inserting ``such
individual is such an officer or employee''.
(3) Preserving authority of officers and employees of
congress to earn compensation from practicing medicine.--
Section 13144(a) of title 5, United States Code, is amended--
(A) in paragraph (1), by striking ``fiduciary
relationship'' and inserting ``fiduciary relationship,
except that such an officer or employee of the House of
Representatives or Senate may receive such compensation
if the fiduciary relationship involves the practice of
medicine''; and
(B) in paragraph (3), by striking ``fiduciary
relationship'' and inserting ``fiduciary relationship,
except that such an officer or employee of the House of
Representatives or Senate may receive such compensation
if the fiduciary relationship involves the practice of
medicine''.
(4) Application of ban to income earned from teaching.--
Section 13144(a)(5) of title 5, United States Code, is amended
by striking ``without the prior notification'' and inserting
``except that such an officer or employee may receive
compensation for teaching with the prior notification''.
(5) Definition.--Section 13141 of title 5, United States
Code, is amended--
(A) by redesignating paragraph (5) as paragraph
(6); and
(B) by inserting after paragraph (4) the following:
``(5) The term `outside earned income', with respect to a