“A bill to prohibit Federal officials from owning covered investments, and for other purposes.”
No CRS summary available for this bill.
This section prohibits covered officials—including Members of Congress; certain congressional employees and leadership staff; executive branch officials such as the President, Vice President, political appointees, and high-level employees (i.e., those in positions described in 5 U.S.C. §13103(f)(3)-(8)); and judicial officers (including bankruptcy and magistrate judges)—and family members (i.e., spouses or dependent children) of Members of Congress from owning or trading covered investments. Covered investments include securities, commodities, digital assets, security futures, and comparable economic interests acquired synthetically (e.g., via derivatives), held directly or indirectly through investment funds, trusts, employee benefit plans, or deferred compensation plans (excluding diversified mutual funds or exchange-traded funds, U.S. Treasury securities, compensation from a family member's primary occupation, and government employee retirement plans). To comply, covered officials and family members of Members of Congress must divest covered investments held on the date of enactment within 90 days.
This section bans all outside earned income for Members of Congress (previously limited to 15% of basic congressional pay), while retaining the 15% limit for congressional officers and employees and applying the ban similarly to Members who assume office mid-year. It (1) adds a definition of outside earned income for Members of Congress based on House Rule XXV, cl. 4(d) (117th Congress), excluding subcl. (d)(1)(D) and applying it to Senators; (2) permits congressional officers and employees to receive compensation for practicing medicine notwithstanding fiduciary restrictions; and (3) permits such compensation for teaching with prior notification. This section further prohibits Members of Congress, officers, and employees from serving as compensated officers or board members of any association, corporation, or other entity; permits uncompensated service on nonprofit boards for all such individuals; and permits uncompensated service on for-profit boards for officers and employees only. (As background, these restrictions under the Ethics Reform Act of 1989 limit outside activities to prevent conflicts of interest between official duties and private gain.)
This section amends post-employment lobbying restrictions in 18 U.S.C. 207(e) by (1) establishing a lifetime ban on former Senators and House Members making lobbying contacts with covered executive branch officials (i.e., President, Vice President, senior Executive Office and Schedule-level personnel, senior military officers, and certain policy officials) or any Member, officer, or employee of Congress (replacing prior time-limited restrictions), and (2) imposing a one-year ban on former elected House officers contacting House Members, officers, or employees with intent to influence official action (in addition to existing restrictions on Senate officers and staff). The section also amends 18 U.S.C. 207(f) to extend the ban on representing foreign entities to a lifetime prohibition for former Members of Congress (from prior time limits) and, for such Members, broadening the definition of foreign entity to any foreign principal under the Foreign Agents Registration Act (previously limited to foreign governments and political parties). The amendments apply to individuals leaving office or employment on or after the date of commencement of the first session of the One Hundred Twentieth Congress sine die or January 4, 2027, whichever is earlier.