H.R. 4036

119th CONGRESS 1st Session

To amend title 5, United States Code, to prohibit the short sale of certain financial investments by Members of Congress and their spouses and dependents, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES · June 17, 2025 · Sponsor: Mr. Kean · Committee: Committee on House Administration

Table of contents

• H.R. 4036
  • SEC. 1. Short title
  • SEC. 2. Prohibition of congressional short selling of financial investments

SEC. 1. Short title

• This Act may be cited as the No Shorting America Act.

SEC. 2. Prohibition of congressional short selling of financial investments

• of title 5, United States Code, is amended by adding at the end the following (and by conforming the table of contents for such chapter accordingly): Chapter 131
  • In this subchapter:
    • The term means— covered financial instrument
    • The term means any of the following: covered individual
    • The term has the meaning given that term in section 13101. dependent
    • The term has the meaning given that term in section 13101. Member of Congress
    • The term has the meaning given that term in section 242.200 of title 17, Code of Federal Regulations (or any successor regulation). short sale
    • The term has the meaning given that term in section 13101. supervising ethics office
  • (a) In general
    • No covered individual may engage in a short sale of any covered financial instrument issued by any business entity that is listed on a national stock exchange.
  • (b) Income tax
    • A loss from a short sale involving a covered financial instrument that is conducted in violation of this section may not be deducted from the amount of income tax owed by the covered individual.
  • (c) Proof of compliance
    • (1) Submission
      • A Member of Congress shall submit to the supervising ethics office a pledge of compliance with the requirements of this subchapter, and shall produce, upon request of the supervising ethics office, material or information determined by the supervising ethics committee to be necessary to indicate compliance with the provisions of this subchapter.
    • (2) Certificate
      • The supervising ethics office shall provide each Member of Congress in compliance with the provisions of this chapter with a certificate of compliance.
    • (3) Publication
      • The supervising ethics office shall make available, on a publicly accessible website, all certificates issued under this subsection.
  • (a) Referral
    • The supervising ethics office shall refer to the Attorney General the name of any covered individual who such office has reasonable cause to believe has willfully failed to comply with the requirements of section 13152.
  • (b) Penalty
    • (1) In general
      • The Attorney General may bring a civil action in any appropriate United States district court against any covered individual who knowingly and willfully fails to comply with section 13152. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $50,000.
    • (2) Limitation
      • A covered individual may not pay any penalty resulting from a civil action under paragraph (1) using—
        • funds from a Members’ Representational Allowance or Senators’ Official Personnel and Office Expense Account (as the case may be); or
        • funds of any political committee under the Federal Election Campaign Act of 1971 (). 52 U.S.C. 30101 et seq.