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Makes specified special Government employees (owners, controlling shareholders, or chief executive officers of companies contracted with the Federal Government) subject to the financial disclosure requirements of subchapter I of chapter 131 of title 5.
For purposes of 5 U.S.C. 13108, requires any reporting requirement incumbent upon the specified special Government employees to be transmitted to the Director of the Office of Government Ethics, who shall review and certify such reports.
Requires Special Government Employees (SGEs) who own, control, or lead companies that hold federal contracts to file federal financial-disclosure reports and have those reports certified by the Director of the Office of Government Ethics (OGE). Until the Director certifies the initial disclosure as compliant, those SGEs are prohibited from performing any official federal duties. The change aims to increase transparency and reduce conflicts of interest by tying SGE duty status to OGE-certified disclosures and centralizing review and certification with the OGE Director.
Upon the date of enactment, any special Government employee (as defined in 18 U.S.C. §202) who is the owner, controlling shareholder, or chief executive officer of a company contracted with the Federal Government must be subject to the requirements of subchapter I of chapter 131 of title 5 (financial disclosure), in addition to the officers and employees described under 5 U.S.C. §13103(f).
For purposes of 5 U.S.C. §13108, any reporting requirement for a special Government employee described in subsection (a) must be transmitted to the Director of the Office of Government Ethics, who is responsible for review and certification of such report.
Until the date on which the initial report required under subchapter I of title 5 has been certified as compliant pursuant to subsection (b), a special Government employee described in subsection (a) is prohibited from carrying out any official duties relating to employment with the Federal Government.
Who is affected and how:
Special Government Employees (SGEs): Individuals who are appointed as SGEs and who also own, control, or lead companies that hold federal contracts are directly affected. They must complete full federal financial-disclosure reports and cannot perform any official federal duties until the OGE Director certifies their initial filing. That creates an activation gate that can delay their participation in government work.
Office of Government Ethics (OGE): OGE (and specifically the Director) will receive and certify an increased number of disclosure reports and will carry the administrative responsibility for clearing covered SGEs to begin official duties. Without additional resources or deadlines in the text, OGE may face workload and timeliness challenges.
Federal agencies that rely on SGEs: Agencies that place high value on SGE contributions (e.g., subject‑matter experts from industry, temporary advisory roles) may experience delays or gaps in staffing while covered SGEs await OGE certification. Agencies may need to plan for temporary coverage or postpone certain activities.
Companies with federal contracts and their executives: Companies whose owners/executives serve as SGEs must ensure those individuals prepare timely, complete disclosures. Corporate leaders may face temporary removal from SGE posts until certification is complete, potentially affecting stakeholder relationships and agency engagements.
Transparency and conflict-of-interest oversight: The provision strengthens formal oversight by linking SGE duty status to an OGE certification, reducing the risk that an SGE will act in an official capacity before their disclosure is certified. That likely improves public transparency and trust but may reduce the speed of onboarding industry experts.
Net effect: The provision is targeted and narrow — it increases ethics oversight and centralizes certification at OGE, improving conflict‑of‑interest controls but creating administrative burdens and potential short-term delays for agencies and SGEs. The legislation does not provide implementation funding or timelines, which could affect how quickly OGE can process additional filings and how long SGEs may be kept from performing official duties.
Referred to the House Committee on Oversight and Government Reform.
Introduced February 13, 2025 by John B. Larson · Last progress February 13, 2025
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Referred to the House Committee on Oversight and Government Reform.
Introduced in House