No Profiting from Public Service Act

Bill Number: H.R. 9560
Origin Chamber: House
Congress: 119th Congress, Session 2
Status: Introduced
Latest Action: 2026-06-30: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, 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: 2026-07-07T08:05:25Z

AI-Generated Summary

Summary of H.R. 9560: No Profiting from Public Service Act

Purpose

This legislation amends chapter 131 of title 5, United States Code, to prohibit certain federal officials, their spouses, and dependents from owning or trading specific financial investments and prediction market contracts tied to political or governmental events. The goal is to prevent conflicts of interest arising from personal financial activities related to public service.

Key Provisions

Definitions: Establishes terms such as "covered official" (including Members of Congress, the President, Vice President, judicial officers, Executive Schedule appointees, and their spouses/dependents), "covered individual" (including congressional and judicial employees, political appointees, certain other federal employees, and candidates), and "covered investment" (securities, commodities, futures, and similar interests, with broad exceptions for diversified funds, blind trusts, Treasury bonds, and small business interests).
Restrictions: Covered officials may not own or trade covered investments. Both covered officials and covered individuals are barred from prediction market contracts linked to political or governmental outcomes.
Compliance Requirements: Officials must divest covered investments within 90 days of enactment or assuming office, either by sale or placement in a qualified blind trust. Special rules apply for assets acquired through inheritance or marriage. Blind trusts cannot be dissolved until 180 days after leaving office.
Exceptions: Spouses or dependents may trade investments if they are not owned by the official and the activity relates to their primary occupation. Certain widely held or government-related investments are excluded from restrictions.
Penalties: Violations trigger a fine equal to 10 percent of the investment's value, disgorgement of profits, and loss of tax deductions for related losses. Penalties cannot be paid using official allowances or campaign funds, and fines must be published publicly.
Administration: Supervising ethics offices issue interpretive guidance and certificates of divestiture.

Significant Changes to Existing Law

Introduces a new Subchapter IV to chapter 131 of title 5, United States Code, creating comprehensive restrictions on financial activities not previously codified in this form.
Extends prohibitions to spouses, dependents, and candidates, expanding beyond current ethics rules that primarily target the officials themselves.
Adds specific rules for prediction market contracts and requires ongoing restrictions for 180 days post-service, altering prior practices around post-employment financial activities.
Mandates public disclosure of penalties and restricts payment sources for fines, which modifies existing enforcement mechanisms.

Potential Impacts

Government Agencies: Ethics offices would handle increased oversight, including divestiture certifications and penalty assessments, potentially requiring additional resources for compliance monitoring.
Citizens: Reduces opportunities for personal financial gain tied to public roles, which may affect officials' investment strategies but aims to enhance public trust in government decision-making.
International Relations: No direct provisions address foreign entities or relations, though restrictions on certain investments could indirectly limit exposure to international markets.

Main Stakeholders Affected

Federal officials, including Members of Congress, the President, Vice President, judges, and senior executive appointees.
Their spouses and dependent children.
Congressional and judicial staff, political appointees, and election candidates.
Supervising ethics offices responsible for enforcement.

Notable Legal, Constitutional, or Political Implications

Raises questions about property rights and due process in requiring divestiture of personal assets, though the bill provides mechanisms like blind trusts to mitigate this.
May intersect with existing ethics statutes under title 5, creating a layered regulatory framework.
Could influence political participation by limiting financial flexibility for candidates and officeholders, potentially affecting recruitment of individuals with investment portfolios.

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

Sponsor

Rep. McDonald Rivet, Kristen [D-MI-8]

Cosponsors (3)

Rep. Kiley, Kevin [I-CA-3], Rep. Landsman, Greg [D-OH-1], Rep. Vindman, Eugene Simon [D-VA-7]

Recent Actions

2026-06-30: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, 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.
2026-06-30: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, 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.
2026-06-30: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, 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.
2026-06-30: Referred to the Committee on Oversight and Government Reform, and in addition to the Committees on House Administration, the Judiciary, 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.
2026-06-30: Introduced in House
2026-06-30: Introduced in House

Bill Versions

No Profiting from Public Service Act — issued 2026-06-30 — PDF (13 pages)