This bill aims to prevent conflicts of interest for top federal managers. While serving, a senior Federal employee—and their spouse or dependent children—may not hold, buy, or sell certain financial investments. They can sell off restricted holdings within 180 days of enactment (or 180 days after starting the job), place assets in a qualified blind trust, or keep investments that are already exempt under ethics rules . Each year, these employees must certify they are following the rules, and those certifications must be posted online. The ethics office can issue rules, grant reasonable extensions if someone is trying in good faith to divest, and assess civil fines for violations.

If someone breaks the rules, any profit must be paid to the U.S. Treasury, losses can’t be used to reduce taxes, and fines can be the greater of $1,000 or 10% of the highest value of the investment while it was held. Notices, a chance for a hearing, public reporting of fines, and a right to appeal within 30 days are required . The new requirements start 12 months after the law is enacted. A federal audit of compliance is due within 2 years, and funding can be shifted to the Office of Government Ethics to carry out the law.

• Who is affected: Senior Federal employees (in Senior Executive Service roles), plus their spouses and dependent children.
• What changes: No holding, buying, or selling of covered financial investments while in service; limited exceptions (sell within 180 days, qualified blind trust, certain exempt investments); annual public certification; fines and repayment of profits for violations .
• When: Rules take effect 12 months after enactment; divestment windows are generally 180 days; compliance will be audited within 2 years.