Sponsors (6)
The bill tightens lawmakers' financial conflicts by forcing divestment and preserving low‑conflict investment options, trading stronger ethical safeguards and public trust for potentially large tax bills, liquidity problems, enforcement penalties, and career constraints for Members and their families.
Members of Congress and their families: reduces conflicts of interest by requiring divestment of most individual securities, lowering the risk that lawmakers' personal holdings influence official actions.
Members of Congress and their families: preserves ability to hold broadly diversified mutual funds/index funds and Treasury securities, allowing simple, low‑conflict investment options to remain available.
Members of Congress and taxpayers: creates a tax‑safe pathway for divestment so Members can swap into permitted assets without immediate tax consequences if they follow the rules, easing the financial transition.
Members of Congress and their families: forced divestment deadlines (90–180 days for many assets) could trigger large taxable gains or lock in losses, producing significant financial harm for affected households.
Members of Congress and their families: civil penalties (up to $100,000 per violation) and additional remedies create substantial enforcement and legal risk, which could impose heavy financial burdens even for inadvertent breaches.
Owners of private fund interests (including some Members): permitting up to five years to divest illiquid hedge/VC/private equity stakes risks valuation difficulties and limits exit options, potentially leaving holders stuck with hard‑to‑sell assets.
Based on analysis of 2 sections of legislative text.
Bars Members of Congress and their spouses/dependent children from owning or trading most securities and requires timed divestment, with limited exceptions and extended exits for private funds.
Official title: To prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes.
Introduced March 6, 2025 by Timothy Burchett · Last progress March 6, 2025
Prohibits Members of Congress and their spouses and dependent children from owning or trading most stocks, bonds, commodities, futures, and other securities, and requires divestment of prohibited assets within set deadlines. The measure preserves narrow exceptions (for example, U.S. Treasury securities, certain diversified funds, retirement plans, specified settlement stock, and limited small-business interests) and defines key terms by cross-reference to existing federal statutes. New Members must divest prohibited holdings within 90 days (with up to 5 years for holdings in hedge funds, venture capital, or privately held complex vehicles); current Members generally must divest within 180 days, with similar extended timelines for certain private funds and specified exceptions for assets received while in office.