Restore Trust in Congress Act

Bill Number: H.R. 5106
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Congress
Status: Introduced
Latest Action: 2025-09-03: Referred to the House Committee on House Administration.
Last Updated: 2026-07-10T08:05:35Z

AI-Generated Summary

Purpose of the Legislation

The "Restore Trust in Congress Act" (H.R. 5106) aims to prevent conflicts of interest by prohibiting Members of Congress, their spouses, and dependent children from owning or trading certain financial investments, such as stocks. This is intended to rebuild public trust in Congress by ensuring that lawmakers' financial decisions do not influence or appear to influence their official duties.

Key Provisions

Definitions:
Covered individuals: Includes Members of Congress, their spouses, dependent children, and certain trusts holding investments for these people.
Covered investments: Broadly includes stocks (securities), commodities, futures (contracts to buy/sell assets at a future date), and similar interests like derivatives (financial tools deriving value from other assets). Exclusions apply to diversified mutual funds, U.S. Treasury securities, state/municipal bonds, small business interests, personal real estate holdings, and specific Alaska Native Claims Settlement stocks.
Other terms: Defines "diversified" funds as those not focused on a single industry, country, or state; "small business concern" as per existing small business law.

Prohibitions and Compliance:
Covered individuals cannot own or trade covered investments while in federal service.
Existing holdings must be sold (divested) at fair market value within 180 days for those covered at enactment, or 90 days for new covered individuals.
Allows "certificates of divestiture" (tax deferral benefits under existing IRS rules) to ease financial burdens during divestment, issued by ethics offices upon proof of compliance.

Exceptions:
Spouses or dependents can trade investments as part of their job (e.g., if they work in finance), if not owned by a covered individual.
Qualified blind trusts (where the owner has no knowledge or control) must still divest holdings.
Family trusts may be exempt if no covered individual controls or contributes to them, and the grantor is a family member.
Assets acquired unintentionally (e.g., via inheritance or divorce) must be divested within 90 days.
Extensions possible for illiquid assets (hard-to-sell investments) or contractual limits.

Enforcement and Penalties:
Supervising ethics offices (e.g., House or Senate ethics committees) oversee compliance, issue guidance on unclear terms, and can impose penalties.
Violations result in a 10% fee on the investment's value plus disgorgement (repayment) of any profits from illegal trades, paid to the U.S. Treasury.
House Members cannot use official funds or campaign contributions to pay penalties.
Ethics offices must publicly report fines, reasons, and outcomes on their websites.

Significant Changes to Existing Law

This bill amends Chapter 131 of Title 5, U.S. Code (Ethics in Government), by adding a new Subchapter IV on investment restrictions. Previously, this chapter focused on financial disclosures and conflict-of-interest rules but did not impose outright bans on stock ownership or trading for Members of Congress and their families. It introduces mandatory divestment timelines, specific exceptions, and new penalties, treating these rules as federal conflict-of-interest laws for tax purposes. No changes to Senate-specific rules, but it applies broadly.

Potential Impacts

On Government Agencies: Supervising ethics offices will face increased administrative duties, including issuing certificates, granting exemptions/extensions, and publishing penalty details, potentially requiring more resources.
On Citizens: Could enhance public confidence in Congress by reducing perceptions of insider trading or favoritism, indirectly benefiting taxpayers through more impartial policymaking on economic issues.
On International Relations: Minimal direct impact, though it may indirectly affect U.S. credibility in global financial discussions by demonstrating stronger domestic ethics standards.
Broader Effects: Forces personal financial adjustments for affected families, possibly shifting investments to allowed assets like bonds or funds, with tax relief via certificates mitigating short-term losses.

Main Stakeholders Affected

Primary: Members of Congress (current and future), their spouses, and dependent children, who must divest personal holdings.
Secondary: Supervising ethics offices (e.g., House Committee on Ethics, Senate Select Committee on Ethics) responsible for enforcement; financial advisors and institutions handling divestments; family trusts and small businesses (via exceptions).
Tertiary: The public, as beneficiaries of increased transparency, and the U.S. Treasury, which receives penalty payments.

Notable Legal, Constitutional, or Political Implications

Legal: Strengthens ethics enforcement by integrating with existing tax (IRS Code Section 1043) and securities laws, providing clear penalties and public reporting to deter violations. Defines terms to minimize ambiguity, with ethics offices issuing guidance.
Constitutional: Regulates public officials' financial activities to prevent conflicts, aligning with the Emoluments Clause and due process; unlikely to infringe on property rights as it includes divestment timelines, exceptions, and tax protections. Could face challenges if seen as overly restrictive on family members.
Political: Bipartisan sponsorship (from both parties) signals broad support for anti-corruption measures amid public concerns over congressional stock trading. May influence future ethics reforms but could spark debates on personal freedoms versus public accountability.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Roy, Chip [R-TX-21]

Cosponsors (140)

Rep. Magaziner, Seth [D-RI-2], Rep. Burchett, Tim [R-TN-2], Rep. Jayapal, Pramila [D-WA-7], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Ocasio-Cortez, Alexandria [D-NY-14], Rep. Luna, Anna Paulina [R-FL-13], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Perry, Scott [R-PA-10], Rep. Min, Dave [D-CA-47], Rep. Nunn, Zachary [R-IA-3], Rep. Neguse, Joe [D-CO-2], Rep. Cloud, Michael [R-TX-27], Rep. Levin, Mike [D-CA-49], Rep. Norman, Ralph [R-SC-5], Rep. Riley, Josh [D-NY-19], Rep. Cammack, Kat [R-FL-3], Rep. Bresnahan, Robert P. [R-PA-8], Rep. Bera, Ami [D-CA-6], Rep. Amo, Gabe [D-RI-1], Rep. Soto, Darren [D-FL-9], Rep. Craig, Angie [D-MN-2], Rep. Whitesides, George [D-CA-27], Rep. Omar, Ilhan [D-MN-5], Rep. Sherman, Brad [D-CA-32], Rep. Kiley, Kevin [R-CA-3], Rep. Bell, Wesley [D-MO-1], Rep. Torres, Ritchie [D-NY-15], Rep. McGovern, James P. [D-MA-2], Rep. Ogles, Andrew [R-TN-5], Rep. Schweikert, David [R-AZ-1], Rep. Johnson, Dusty [R-SD-At Large], Rep. Mace, Nancy [R-SC-1], Rep. Scanlon, Mary Gay [D-PA-5], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Larson, John B. [D-CT-1], Rep. Landsman, Greg [D-OH-1], Rep. Thanedar, Shri [D-MI-13], Rep. Elfreth, Sarah [D-MD-3], Rep. Crow, Jason [D-CO-6], Rep. Boebert, Lauren [R-CO-4], Rep. Khanna, Ro [D-CA-17], Rep. Crane, Elijah [R-AZ-2], Rep. Nadler, Jerrold [D-NY-12], Rep. Mfume, Kweisi [D-MD-7], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Sorensen, Eric [D-IL-17], Rep. Miller-Meeks, Mariannette [R-IA-1], Rep. Ansari, Yassamin [D-AZ-3], Rep. Mannion, John W. [D-NY-22], Rep. Stanton, Greg [D-AZ-4] and 90 more