Providing for consideration of the bill (H.R. 1908) to prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes.
- Bill Number
- H.Res. 725
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Congress
- Status
- Introduced
- Latest Action
- 2025-12-02: Motion to Discharge Committee filed by Mrs. Luna. Petition No: 119-11. (<a href="https://clerk.house.gov/DischargePetition/2025120211">Discharge petition</a> text with signatures.)
- Last Updated
- 2026-04-21T22:11:01Z
AI-Generated Summary
Purpose This legislation establishes a resolution (H. Res. 725) to bring the bill H.R. 1908 to immediate consideration in the House. The underlying bill, titled the Restore Trust in Congress Act, aims to prohibit Members of Congress, their spouses, and dependent children from owning or trading certain financial investments, with the goal of addressing potential conflicts of interest.
Key Provisions
- Definitions: Establishes terms such as "covered individual" (Members of Congress, spouses, dependent children, and certain trusts), "covered investment" (securities, commodities, futures, and synthetic interests like derivatives), and exclusions (widely held diversified funds, U.S. Treasury securities, municipal bonds, small business interests, personal residence real estate LLCs, and specific Alaska Native Claims Settlement Act stock).
- Restrictions: Prohibits covered individuals from purchasing or owning covered investments. Requires divestment at fair market value within 180 days for existing covered individuals or 90 days for new ones.
- Compliance and Exceptions: Allows spouses or dependent children to trade covered investments as part of their primary occupation if not owned by a covered individual. Permits exemptions for certain family trusts where the covered individual has no grantor, contributor, or control role. Provides 90 days to divest assets acquired through inheritance, marriage, or similar circumstances. Grants extensions for liquidity or contractual issues.
- Tax and Enforcement Tools: Applies the certificate of divestiture program under the Internal Revenue Code for tax relief. Authorizes supervising ethics offices to issue guidance and certificates.
- Penalties: Imposes a fee of 10% of the investment's value and requires disgorgement of profits from violations, payable to the U.S. Treasury. Restricts Members from using representational allowances or campaign funds to pay penalties. Requires public disclosure of fines.
- Procedural Elements: Waives points of order, deems the bill read as amended, structures one hour of debate, and allows one motion to recommit. Clause 1(c) of rule XIX does not apply.
Significant Changes to Existing Law
- Adds a new Subchapter IV to Chapter 131 of Title 5, United States Code, creating explicit restrictions on trading and ownership of covered investments.
- Amends the table of contents for Chapter 131 to include new sections on definitions (13151), trade and ownership rules (13152), and penalties (13153).
- Extends conflict-of-interest rules to spouses and dependent children, with limited occupational and trust exceptions not previously codified in this manner.
- Integrates the existing certificate of divestiture program into this framework for affected individuals.
Potential Impacts
- Government Agencies: Requires supervising ethics offices to issue guidance, review exemption requests, issue certificates, enforce penalties, and publish violation details.
- Citizens: Aims to reduce perceived conflicts but may affect personal financial planning for covered families; penalties flow to the Treasury.
- International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Members of Congress and their spouses and dependent children.
- Supervising ethics offices responsible for oversight and enforcement.
- The U.S. Treasury, which receives penalty payments.
- Individuals or entities holding investments in affected trusts.
Notable Legal, Constitutional, or Political Implications
- Applies existing tax code provisions (Section 1043 of the Internal Revenue Code) to treat divestitures as qualifying under a federal conflict-of-interest statute.
- Includes restrictions on using official or campaign funds for penalties, which may raise questions about enforcement mechanisms.
- The procedural resolution limits debate and waives standard points of order, streamlining House consideration.
- Potential implications for property rights through mandatory divestment, balanced against public interest in ethics rules.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Luna, Anna Paulina [R-FL-13]
Recent Actions
- 2025-12-02: Motion to Discharge Committee filed by Mrs. Luna. Petition No: 119-11. (<a href="https://clerk.house.gov/DischargePetition/2025120211">Discharge petition</a> text with signatures.)
- 2025-09-16: Referred to the House Committee on Rules.
- 2025-09-16: Submitted in House
- 2025-09-16: Submitted in House
Bill Versions
- Providing for consideration of the bill (H.R. 1908) to prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes. — issued 2025-09-16 — PDF (11 pages)