Restore Trust in Government Act
- Bill Number
- H.R. 6731
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-12-16: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-07-09T21:59:03Z
AI-Generated Summary
Purpose
The "Restore Trust in Government Act" (H.R. 6731) aims to prevent conflicts of interest in the executive and legislative branches by prohibiting Members of Congress, the President, the Vice President, and their immediate family members from owning or trading certain financial investments, such as stocks. This is intended to restore public confidence in government by ensuring officials prioritize public service over personal financial gain.
Key Provisions
- Definitions:
- Covered individuals: Includes Members of Congress (as defined under existing ethics laws), their spouses and dependent children, trustees of trusts benefiting these individuals, the President and Vice President, and their spouses and dependent children.
- Covered investments: Broadly includes securities (e.g., stocks, bonds), commodities (e.g., agricultural products, excluding precious metals), futures (contracts to buy/sell assets at a future date), and similar interests like derivatives (financial contracts deriving value from other assets). Exceptions include diversified mutual funds traded on stock exchanges, U.S. Treasury securities, state/municipal bonds, compensation from a spouse's or child's job, small business interests (including family farms), real estate for personal residences, and certain Alaska Native Claims Settlement Act stocks.
- Other terms: Diversified funds avoid concentrating in one industry or country; supervising ethics office refers to bodies like the House or Senate Ethics Committees that oversee compliance.
- Prohibitions and Compliance:
- Covered individuals cannot own or trade covered investments while in federal service, directly or indirectly.
- Existing covered individuals must divest (sell) holdings at fair market value within 180 days of enactment; new ones have 90 days.
- Divestment losses cannot be deducted from income taxes if done in violation.
- Ethics offices can issue "certificates of divestiture" for tax deferral benefits (under Internal Revenue Code Section 1043), treating this law as a federal conflict-of-interest rule.
- Exceptions and Flexibility:
- Spouses or dependent children can trade if it's part of their primary job and not owned by a covered individual.
- Qualified blind trusts (where the official has no control or knowledge) must still divest by deadlines; family trusts may get exemptions if no covered individual controls them.
- Assets acquired non-voluntarily (e.g., via inheritance or divorce) must be divested within 90 days.
- Extensions possible for illiquid assets (hard-to-sell investments) or restrictions like vesting schedules (delayed ownership rights).
- Ethics offices must provide guidance on unclear terms.
- Penalties and Enforcement:
- Violations trigger a 10% fee on the investment's value and disgorgement (return) of any profits to the U.S. Treasury.
- Members of Congress cannot use official funds, campaign contributions, or office allowances to pay penalties.
- Ethics offices must publicly report fines, reasons, and outcomes on websites.
Significant Changes to Existing Law
This bill amends Chapter 131 of Title 5 of the U.S. Code (federal ethics laws) by adding a new Subchapter IV, introducing the first comprehensive ban on stock ownership and trading for top officials and their families. Previously, ethics rules required disclosure of financial holdings and prohibited certain conflicts but allowed personal stock trading and ownership, with voluntary measures like blind trusts. It expands coverage to spouses, dependents, and certain trustees, and ties into tax laws for divestiture incentives, which were not previously linked to congressional stock bans.
Potential Impacts
- On Government Agencies: Increases workload for supervising ethics offices (e.g., congressional ethics committees) in monitoring compliance, issuing certificates, and handling exemptions/extensions. Could deter some individuals from seeking or retaining public office due to divestment requirements.
- On Citizens: Enhances public trust by reducing perceptions of insider trading or favoritism in policy-making. May indirectly benefit everyday investors by curbing officials' potential use of non-public information for personal gain.
- On International Relations: No direct impacts identified, as the bill focuses on domestic financial ethics without addressing foreign investments or trade policies.
Main Stakeholders Affected
- Primary: Members of Congress, the President, and Vice President, including their spouses, dependent children, and related trustees, who must divest personal assets.
- Secondary: Supervising ethics offices (e.g., House/Senate Ethics Committees, Office of Government Ethics) responsible for enforcement and guidance.
- Broader: The public, as taxpayers and voters, who gain from increased transparency; financial institutions and investment advisors dealing with divestments; and small businesses/family farms, which are exempted from the ban.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens federal conflict-of-interest framework by mandating divestment and penalties, with public reporting promoting accountability. Integrates with tax laws for fair treatment during compliance but bars tax deductions for violations, potentially leading to IRS audits or disputes over "covered investments."
- Constitutional: Regulates property rights of public officials, which courts have upheld as permissible for ethics purposes (e.g., under the Emoluments Clause or due process), but could face challenges if exceptions are deemed arbitrary or if divestment timelines infringe on fair market sales. No First Amendment issues apparent, as it targets conduct, not speech.
- Political: Addresses widespread concerns about "stock trading in Congress," potentially reducing partisan divides on ethics reform. If enacted, it could set a precedent for stricter rules on executive branch officials, influencing future campaigns and lobbying on financial transparency.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (78)
Rep. Jayapal, Pramila [D-WA-7], Rep. Morelle, Joseph D. [D-NY-25], Rep. Jeffries, Hakeem S. [D-NY-8], Rep. Clark, Katherine M. [D-MA-5], Rep. Aguilar, Pete [D-CA-33], Rep. Ansari, Yassamin [D-AZ-3], Rep. Randall, Emily [D-WA-6], Rep. Johnson, Julie [D-TX-32], Rep. Whitesides, George [D-CA-27], Rep. Mannion, John W. [D-NY-22], Rep. Torres, Norma J. [D-CA-35], Rep. Ross, Deborah K. [D-NC-2], Rep. Lynch, Stephen F. [D-MA-8], Rep. Crow, Jason [D-CO-6], Rep. Olszewski, Johnny [D-MD-2], Rep. Walkinshaw, James R. [D-VA-11], Rep. Courtney, Joe [D-CT-2], Rep. Sewell, Terri A. [D-AL-7], Rep. Neguse, Joe [D-CO-2], Rep. Elfreth, Sarah [D-MD-3], Rep. Hoyle, Val T. [D-OR-4], Rep. Larson, John B. [D-CT-1], Rep. Garamendi, John [D-CA-8], Rep. DeGette, Diana [D-CO-1], Rep. Cleaver, Emanuel [D-MO-5], Rep. Budzinski, Nikki [D-IL-13], Rep. Deluzio, Christopher R. [D-PA-17], Rep. Tlaib, Rashida [D-MI-12], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Foster, Bill [D-IL-11], Rep. Ramirez, Delia C. [D-IL-3], Rep. Foushee, Valerie P. [D-NC-4], Rep. Raskin, Jamie [D-MD-8], Rep. Subramanyam, Suhas [D-VA-10], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Thanedar, Shri [D-MI-13], Rep. Norcross, Donald [D-NJ-1], Rep. Titus, Dina [D-NV-1], Rep. Menendez, Robert [D-NJ-8], Rep. DeLauro, Rosa L. [D-CT-3], Rep. McBride, Sarah [D-DE-At Large], Rep. Latimer, George [D-NY-16], Rep. Craig, Angie [D-MN-2], Rep. Salinas, Andrea [D-OR-6], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Dexter, Maxine [D-OR-3], Rep. Kelly, Robin L. [D-IL-2], Rep. McGovern, James P. [D-MA-2], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Soto, Darren [D-FL-9] and 28 more
Recent Actions
- 2025-12-16: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-16: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-16: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-12-16: Introduced in House
- 2025-12-16: Introduced in House
Bill Versions
- Restore Trust in Government Act — issued 2025-12-16 — PDF (11 pages)