Restore Trust in Congress Act
Summary
The "Restore Trust in Congress Act" aims to prevent Members of Congress, their spouses, and dependents from owning or trading stocks, commodities, futures, and other comparable financial instruments. The bill amends Title 5 of the United States Code, adding a new subchapter that defines covered investments and individuals, establishes restrictions on trading and ownership, and outlines penalties for violations. It includes exceptions for widely held investment funds, U.S. Treasury securities, and certain other assets.
Expected Effects
If enacted, this bill would require covered individuals to divest existing covered investments within a specified timeframe (180 days for current members, 90 days for new members). It establishes penalties for non-compliance, including fees and disgorgement of profits, and mandates public disclosure of assessed fines. The goal is to eliminate potential conflicts of interest and enhance public trust in Congress.
Potential Benefits
- Reduced potential for insider trading: By restricting stock ownership and trading, the bill aims to prevent members of Congress from using non-public information for personal financial gain.
- Increased public trust: The restrictions could improve public perception of Congress by addressing concerns about conflicts of interest.
- Fairer markets: Limiting the ability of members of Congress to trade on inside information could contribute to a more level playing field for all investors.
- Focus on policy: By removing the distraction of personal investment portfolios, members of Congress may be able to focus more on their legislative duties.
- Strengthened ethical standards: The bill reinforces ethical standards for public service and promotes accountability.
Potential Disadvantages
- Potential for reduced investment options: The restrictions could limit the investment options available to members of Congress and their families.
- Complexity of compliance: The definitions of covered investments and exceptions may create complexities in compliance and enforcement.
- Possible impact on spousal employment: The bill could affect the ability of spouses and dependents to engage in certain professions involving covered investments.
- Enforcement challenges: Ensuring compliance and effectively enforcing the penalties may present challenges for the supervising ethics offices.
- Potential for unintended consequences: The broad scope of the restrictions could have unintended consequences on financial planning and investment strategies.
Constitutional Alignment
The bill's alignment with the Constitution is primarily concerned with potential infringements on individual rights versus the need to maintain public trust and prevent corruption. While the Constitution does not explicitly address financial trading by members of Congress, Article I, Section 6 (the Incompatibility Clause) touches upon conflicts of interest by preventing members from holding other offices. The proposed restrictions could be seen as a reasonable measure to ensure the integrity of the legislative process, aligning with the overall goals of the Constitution to promote a well-functioning government. The bill does not appear to infringe upon any specific constitutional rights, such as freedom of speech or religion.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).