Sponsors (4)
The bill sharply reduces direct financial conflicts for Members by banning most individual securities and establishing enforcement, while preserving low‑conflict investment options — but it creates short‑term financial and legal burdens for affected families and leaves some private‑asset conflicts unresolved for years.
Members of Congress and their spouses/dependent children will be barred from holding most individual securities, reducing direct financial conflicts of interest and opportunities for self‑dealing.
Members may keep widely held diversified funds, Treasury securities, and certain retirement-plan investments, preserving access to liquid, low‑conflict investments for financial security.
Required divestments can qualify for nonrecognition of gain if reinvested within 60 days, reducing immediate tax burdens from forced sales.
Members, spouses, or families forced to sell complex or illiquid holdings within the 180‑ or 90‑day windows may realize losses or face liquidity challenges.
A five‑year exception for privately held hedge and venture funds allows significant private-asset conflicts to persist for years, limiting the law's immediate effectiveness.
Civil fines up to $100,000 per violation could impose substantial financial burdens on Members or their families and may incentivize litigation over enforcement standards.
Based on analysis of 2 sections of legislative text.
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, derivatives, options, hedge fund and venture capital interests, and other specified securities, and requires divestment of covered assets on set timelines with limited exceptions. It creates civil enforcement (Attorney General or Special Counsel) with fines up to $100,000 per violation and amends the tax code to allow nonrecognition of gain for required divestments if proceeds are reinvested in permitted property within 60 days. Applies to current Members (divest within 180 days), new Members (divest within 90 days), and assets acquired during service (divest within 180 days), with a five-year phased timeline for privately held/complex investment vehicles; ethics committees must issue interpretive guidance for uncertain terms.