[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 3201 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 3201
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain assets by Members of Congress, to
require Members of Congress and their spouses and dependent children to
place certain assets into blind trusts, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 19, 2025
Mr. Sheehy introduced the following bill; which was read twice and
referred to the Committee on Homeland Security and Governmental Affairs
_______________________________________________________________________
A BILL
To amend chapter 131 of title 5, United States Code, to prohibit
transactions involving certain assets by Members of Congress, to
require Members of Congress and their spouses and dependent children to
place certain assets into blind trusts, 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 ``Good Government Act of 2025''.
SEC. 2. COVERED FINANCIAL INSTRUMENTS OF MEMBERS OF CONGRESS 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--Covered Financial Instruments of Members of Congress
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 financial instrument.--
``(A) In general.--The term `covered financial
instrument' means--
``(i) any investment in--
``(I) a security;
``(II) a security future; or
``(III) a commodity; 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, a
warrant, or other similar means.
``(B) Inclusions.--The term `covered financial
instrument' 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 (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.
``(C) Exclusions.--The term `covered financial
instrument' 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 spouse or dependent child 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 financial instrument solely by reason of that
compliance.
``(3) Current.--The term `current', with respect to a
Member of Congress, means an individual who is serving as a
Member of Congress on the date of enactment of the Good
Government Act of 2025.
``(4) Dependent child; member of congress.--The terms
`dependent child' and `Member of Congress' have the meanings
given those terms in section 13101.
``(5) 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, single country other than the United
States, or bonds of a single State.
``(6) 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.
``(7) Interested party.--The term `interested party' has
the meaning given the term in section 13104(f)(3)(E).
``(8) New.--The term `new', with respect to a Member of
Congress, means an individual who--
``(A) is not a current Member of Congress; but
``(B) commences service as a Member of Congress
after the date of enactment of the Good Government Act
of 2025.
``(9) 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).
``(10) Security; security future.--The terms `security' and
`security future' have the meanings given those terms in
section 3(a) of Securities Exchange Act of 1934 (15 U.S.C.
78c(a)).
``(11) Supervising ethics committee.--The term `supervising
ethics committee' means, as applicable--
``(A) the Select Committee on Ethics of the Senate;
and
``(B) the Committee on Ethics of the House of
Representatives.
``Sec. 13162. Prohibition on certain transactions and holdings
involving covered financial instruments
``Except as provided in section 13163, a Member of Congress, or any
spouse or dependent child 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.
``Sec. 13163. Divestment and placement of covered financial instruments
in qualified blind trusts
``(a) Current Members of Congress.--
``(1) Certification.--Not later than 30 days after the date
of enactment of the Good Government Act of 2025, each current
Member of Congress shall submit to the applicable supervising
ethics office a certification that, as applicable--
``(A) for each covered financial instrument owned
by the Member of Congress or a spouse or dependent
child of the Member of Congress, the Member of
Congress, or the applicable spouse or dependent child
of the Member of Congress, will, in accordance with
paragraph (2)--
``(i) divest the covered financial
instrument; or
``(ii) place the covered financial
instrument in a qualified blind trust,
including by establishing a qualified blind
trust for that purpose, if necessary; or
``(B) neither the Member of Congress nor any spouse
or dependent child of the Member of Congress owns a
covered financial instrument.
``(2) Divestiture or placement in qualified blind trust.--
``(A) Requirement.--Subject to paragraph (3), not
later than 120 days after the date of enactment of the
Good Government Act of 2025, each current 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
financial instrument owned by the Member of Congress or
a spouse or dependent child of the Member of Congress.
``(B) Divestiture.--A current Member of Congress
shall divest a covered financial instrument held by the
Member of Congress or a spouse or dependent child of
the Member of Congress if--
``(i) the Member of Congress, or the
applicable spouse or dependent child of the
Member of Congress, is unable to place the
covered financial instrument in a qualified
blind trust by the date described in
subparagraph (A); and
``(ii) the Member of Congress fails to
obtain an extension pursuant to paragraph (3).
``(3) Extensions.--If a current Member of Congress, or a
spouse or dependent child of the Member of Congress, is unable
to place a covered financial instrument in a qualified blind
trust by the date described in paragraph (2)(A), the Member of
Congress may request, and the supervising ethics office may
grant, 1 or more reasonable extensions, subject to the
conditions that--
``(A) the total period of time covered by all
extensions granted to the Member of Congress for the
covered financial instrument shall not exceed 180 days;
and
``(B) the period covered by a single extension
shall be not longer than 45 days.
``(b) New Members of Congress.--
``(1) Certification.--Not later than 30 days after the date
on which an individual becomes a new Member of Congress, the
new Member of Congress shall submit to the applicable
supervising ethics office a certification that, as applicable--
``(A) for each covered financial instrument owned
by the Member of Congress or a spouse or dependent
child of the Member of Congress, the Member of
Congress, or the applicable spouse or dependent child
of the Member of Congress, will--
``(i) divest the covered financial
instrument; or
``(ii) place the covered financial
instrument in a qualified blind trust,
including by establishing a qualified blind
trust for that purpose, if necessary; or
``(B) neither the Member of Congress nor a spouse
or dependent child of the Member of Congress owns a
covered financial instrument.
``(2) Divestiture or placement in qualified blind trust.--
``(A) Requirement.--Subject to paragraph (3), not
later than 120 days after the date on which an
individual becomes a new Member of Congress, the
individual shall divest, or place in a qualified blind
trust (including by establishing a qualified blind
trust for that purpose, if necessary), each covered
financial instrument owned by the Member of Congress or
a spouse or dependent child of the Member of Congress.
``(B) Divestiture.--A new Member of Congress shall
divest a covered financial instrument held by the
Member of Congress or a spouse or dependent child of
the Member of Congress if--
``(i) the Member of Congress, or the
applicable spouse or dependent child of the
Member of Congress, is unable to place the
covered financial instrument in a qualified
blind trust by the date described in
subparagraph (A); and
``(ii) the Member of Congress fails to
obtain an extension pursuant to paragraph (3).
``(3) Extensions.--If a new Member of Congress, or a spouse
or dependent child of the Member of Congress, is unable to
place a covered financial instrument in a qualified blind trust
by the date described in paragraph (2)(A), the Member of
Congress may request, and the supervising ethics office may
grant, 1 or more reasonable extensions, subject to the
conditions that--
``(A) the total period of time covered by all
extensions granted to the Member of Congress for the
covered financial instrument shall not exceed 180 days;
and
``(B) the period covered by a single extension
shall be not longer than 45 days.
``(c) Mingling of Assets.--A spouse or dependent child of a Member
of Congress may place a covered financial instrument in a qualified
blind trust established by the Member of Congress under subsection
(a)(2)(A) or (b)(2)(A), as applicable.
``(d) Separation From Service and Cooling-Off Period Required for
Control.--During the period beginning on the date on which an
individual becomes a Member of Congress and ending on the date that is
180 days after the date on which the individual ceases to serve as a
Member of Congress, the Member of Congress, and any spouse or dependent
child of the Member of Congress, may not--
``(1) dissolve any qualified blind trust in which a covered
financial instrument has been placed pursuant to subsection (a)
or (b); or
``(2) except as provided in this section, otherwise control
a covered financial instrument.
``(e) Reporting Requirements.--
``(1) Supervising ethics offices.--Each supervising ethics
office shall make available on the public website of the
supervising ethics office--
``(A) a copy of--
``(i) each certification submitted to the
supervising ethics office under subsection
(a)(1) or (b)(1);
``(ii) each qualified blind trust agreement
of each Member of Congress; and
``(iii) each notice and other documentation
submitted to the supervising ethics office
under paragraph (2) or (3);
``(B) a schedule of all assets placed in a
qualified blind trust by each Member of Congress and
interested party; and
``(C) a description of each extension granted, and
each civil penalty imposed, pursuant to this section.
``(2) Trustees.--Each trustee of a qualified blind trust
established by a Member of Congress shall submit to the Member
of Congress and the applicable supervising ethics office a
written notice in any case in which the trustee--
``(A) learns that--
``(i) an interested party has obtained
knowledge of any trust property other than the
initial property of the qualified blind trust;
or
``(ii) the value of the initial property of
the qualified blind trust is less than $1,000;
or
``(B) divests any initial property of the qualified
blind trust.
``(3) Members of congress.--Each Member of Congress who is
a beneficiary of a qualified blind trust shall submit to the
applicable supervising ethics office--
``(A) a copy of the executed qualified blind trust
agreement by not later than 30 days after the date of
execution;
``(B) a list of each asset and each financial
interest transferred to the qualified blind trust by an
interested party by not later than 30 days after the
date of the transfer;
``(C) a copy of each notice submitted to the Member
of Congress under paragraph (2) by not later than 30
days after the date of receipt;
``(D) a written notice that an interested party has
obtained knowledge of any holding of the qualified
blind trust by not later than the date that is 30 days
after the date on which the Member of Congress
discovered that the knowledge had been obtained; and
``(E) a written notice of dissolution of the
qualified blind trust by not later than 30 days after
the date of dissolution.
``Sec. 13164. Annual certification of compliance
``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.
``Sec. 13165. Enforcement
``(a) In General.--The applicable supervising ethics office shall
provide a written notice (including notice of the potential for civil
penalties under subsection (e)) to any Member of Congress who--
``(1) fails--
``(A) to submit a certification under subsection
(a)(1) or (b)(1) of section 13163 by the date on which
the certification is required to be submitted;
``(B) to place 1 or more covered financial
instruments owned by the Member of Congress or a spouse
or dependent child of the Member of Congress in a
qualified blind trust in accordance with subsection
(a)(2) or (b)(2) of section 13163 by the applicable
deadline, subject to any extension under subsection
(a)(3) or (b)(3) of that section; or
``(C) to submit an annual certification under
section 13164; or
``(2) otherwise violates this subchapter.
``(b) Hear