H.R. 4036 — No Shorting America Act

This section establishes in chapter 131 of title 5, U.S. Code, a new subchapter prohibiting short sales of covered financial instruments—defined to include securities (per 15 U.S.C. 78c(a)), security futures (per 15 U.S.C. 78c(a)), commodities (per 7 U.S.C. 1a), or comparable synthetic interests (e.g., derivatives such as options or warrants)—issued by business entities listed on a national stock exchange, by covered individuals (i.e., Members of Congress, their spouses, and dependents). The prohibition (1) disallows income tax deductions for losses from violative short sales; (2) requires Members of Congress to submit compliance pledges to the supervising ethics office and, upon request, relevant materials, with compliant Members receiving certificates published on a public website; and (3) directs the supervising ethics office to refer willful violators to the Attorney General, who may seek civil penalties up to $50,000 in district court, payable only from non-official and non-campaign funds.