S. 1879

119 S1879 IS: Ban Congressional Stock Trading Act
 U.S. Senate
 2025-05-22
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 1879  IN THE SENATE OF THE UNITED STATES   May 22, 2025   Mr. Ossoff  (for himself,  Mr. Kelly ,  Ms. Baldwin ,  Ms. Duckworth ,  Mr. Schatz ,  Mrs. Shaheen ,  Mr. Warnock ,  Mr. Bennet , and  Mrs. Gillibrand ) introduced the following bill; which was read twice and referred to the  Committee on Homeland Security and Governmental Affairs    A BILL
To amend  chapter 131  of title 5, United States Code, to require Members of Congress and their spouses and dependent children to place certain assets into blind trusts, and for other purposes.
1.
Short title
This Act may be cited as the   Ban Congressional Stock Trading Act  .
2.
Placement of certain assets of Members of Congress, spouses, and dependent children in qualified blind trusts
(a)
In general
 Chapter 131  of title 5, United States Code, is amended by adding at the end the following:
IV
Certain assets of Members of Congress, spouses, and dependent children
13161.
Definitions
In this title:
(1)
Commodity
The term  commodity  has the meaning given the term in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a ).
(2)
Covered investment
(A)
In general
The term  covered investment  means—
(i)
an investment in a security, a commodity, or a future; and
(ii)
any economic interest comparable to an interest described in clause (i) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other, similar means.
(B)
Inclusions
The term  covered investment  includes an investment or economic interest described in subparagraph (A) that is held directly, or in which an individual has an indirect, beneficial, or economic interest, through—
(i)
an investment fund;
(ii)
a trust (other than a qualified blind trust);
(iii)
an employee benefit plan; or
(iv)
a deferred compensation plan, including a carried interest or other agreement tied to the performance of an investment, other than a fixed cash payment.
(C)
Exclusions
The term  covered investment  does not include—
(i)
a diversified mutual fund (including any holdings of such a fund);
(ii)
a diversified exchange-traded fund (including any holdings of such a fund);
(iii)
a United States Treasury bill, note, or bond;
(iv)
compensation from the primary occupation of a spouse or dependent child of a Member of Congress; or
(v)
any investment fund held in a Federal, State, or local government employee retirement plan.
(D)
Clarification
An investment that achieves compliance with applicable environmental, social, and governance criteria shall not be considered to be a covered investment solely by reason of that compliance.
(3)
Current
The term  current , with respect to a Member of Congress, means an individual who is serving as a Member of Congress on the date of enactment of the  Ban Congressional Stock Trading Act .
(4)
Dependent child
The term  dependent child  means, with respect to any Member of Congress, any individual—
(A)
who has not attained the age of 19; and
(B)
who is a dependent, within the meaning of  section 152  of the Internal Revenue Code of 1986, of the Member of Congress.
(5)
Diversified
The term  diversified , with respect to a fund, trust, or plan, means that the fund, trust, or plan does not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single State.
(6)
Future
The term  future  means—
(A)
a security future (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); and
(B)
any other contract for the sale of a commodity for future delivery.
(7)
Initial property
The term  initial property  means an asset or financial interest transferred to a qualified blind trust by, or on behalf of, an interested party or a relative of an interested party, regardless of whether the asset or financial interest is transferred to the qualified blind trust on or after the date of establishment of the qualified blind trust.
(8)
Interested party
The term  interested party  has the meaning given the term in section 13104(f)(3)(E).
(9)
Member of Congress
The term  Member of Congress  has the meaning given the term in section 13101.
(10)
New
The term  new , with respect to a Member of Congress, means an individual who—
(A)
is not a current Member of Congress; but
(B)
commences service as a Member of Congress after the date of enactment of the  Ban Congressional Stock Trading Act .
(11)
Qualified blind trust
The term  qualified blind trust  means a qualified blind trust (as defined in section 13104(f)(3)) that has been approved in writing by the applicable supervising ethics office under section 13104(f)(3)(D).
(12)
Security
The term  security  has the meaning given the term in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ).
(13)
Supervising ethics office
The term  supervising ethics office  has the meaning given the term in section 13101.
13162.
Placement of certain assets in qualified blind trusts
(a)
Current Members of Congress
(1)
Certification
Not later than 30 days after the date of enactment of the  Ban Congressional Stock Trading Act , each current Member of Congress shall submit to the applicable supervising ethics office a certification that, as applicable—
(A)
for each covered investment owned by the Member of Congress or a spouse or dependent child of the Member of Congress, the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, will—
(i)
divest the covered investment; or
(ii)
place the covered investment in a qualified blind trust, including by establishing a qualified blind trust for that purpose, if necessary; or
(B)
neither the Member of Congress nor any spouse or dependent child of the Member of Congress owns a covered investment.
(2)
Divestiture or placement in qualified blind trust
(A)
Requirement
Subject to paragraph (3), not later than 120 days after the date of enactment of the  Ban Congressional Stock Trading Act , each current Member of Congress shall divest, or place in a qualified blind trust (including by establishing a qualified blind trust for that purpose, if necessary), each covered investment owned by the Member of Congress or a spouse or dependent child of the Member of Congress.
(B)
Divestiture
A current Member of Congress shall divest a covered investment held by the Member of Congress or a spouse or dependent child of the Member of Congress if—
(i)
the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, is unable to place the covered investment in a qualified blind trust by the date described in subparagraph (A); and
(ii)
the Member of Congress fails to obtain an extension pursuant to paragraph (3).
(3)
Extensions
If a current Member of Congress, or a spouse or dependent child of the Member of Congress, is unable to place a covered investment in a qualified blind trust by the date described in paragraph (2)(A), the Member of Congress may request, and the supervising ethics office may grant, 1 or more reasonable extensions, subject to the conditions that—
(A)
the total period of time covered by all extensions granted to the Member of Congress for the covered investment shall not exceed 180 days; and
(B)
the period covered by a single extension shall be not longer than 45 days.
(b)
New Members of Congress
(1)
Certification
Not later than 30 days after the date on which an individual becomes a new Member of Congress, the new Member of Congress shall submit to the applicable supervising ethics office a certification that, as applicable—
(A)
for each covered investment owned by the Member of Congress or a spouse or dependent child of the Member of Congress, the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, will—
(i)
divest the covered investment; or
(ii)
place the covered investment in a qualified blind trust, including by establishing a qualified blind trust for that purpose, if necessary; or
(B)
neither the Member of Congress nor a spouse or dependent child of the Member of Congress owns a covered investment.
(2)
Divestiture or placement in qualified blind trust
(A)
Requirement
Subject to paragraph (3), not later than 120 days after the date on which an individual becomes a new Member of Congress, the individual shall divest, or place in a qualified blind trust (including by establishing a qualified blind trust for that purpose, if necessary), each covered investment owned by the Member of Congress or a spouse or dependent child of the Member of Congress.
(B)
Divestiture
A new Member of Congress shall divest a covered investment held by the Member of Congress or a spouse or dependent child of the Member of Congress if—
(i)
the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, is unable to place the covered investment in a qualified blind trust by the date described in subparagraph (A); and
(ii)
the Member of Congress fails to obtain an extension pursuant to paragraph (3).
(3)
Extensions
If a new Member of Congress, or a spouse or dependent child of the Member of Congress, is unable to place a covered investment in a qualified blind trust by the date described in paragraph (2)(A), the Member of Congress may request, and the supervising ethics office may grant, 1 or more reasonable extensions, subject to the conditions that—
(A)
the total period of time covered by all extensions granted to the Member of Congress for the covered investment shall not exceed 180 days; and
(B)
the period covered by a single extension shall be not longer than 45 days.
(c)
Acquisitions during service
(1)
In general
Subject to paragraph (2), and any applicable rules issued pursuant to subsection (h)(3), effective beginning on the date of enactment of the  Ban Congressional Stock Trading Act , a Member of Congress, and a spouse or dependent child of the Member of Congress, may not acquire a covered investment.
(2)
Inheritances
(A)
In general
Subject to subparagraph (B), a Member of Congress or a spouse or dependent child of a Member of Congress who inherits a covered investment shall divest or place the covered investment in a qualified blind trust by not later than 120 days after the date on which the covered investment is inherited.
(B)
Extensions
If a Member of Congress, or a spouse or dependent child of the Member of Congress, is unable to place a covered investment in a qualified blind trust by the date described in subparagraph (A), the Member of Congress may request, and the supervising ethics office may grant, 1 or more reasonable extensions, subject to the conditions that—
(i)
the total period of time covered by all extensions granted to the Member of Congress for the covered investment shall not exceed 180 days; and
(ii)
the period covered by a single extension shall be not longer than 45 days.
(d)
Mingling of assets
A spouse or dependent child of a Member of Congress may place a covered investment in a qualified blind trust established by the Member of Congress under subsection (a)(1)(A)(ii) or (b)(1)(A)(ii).
(e)
Separation from service and cooling-Off period required for control
During the period beginning on the date on which an individual becomes a Member of Congress and ending on the date that is 180 days after the date on which the individual ceases to serve as a Member of Congress, the Member of Congress, and any spouse or dependent child of the Member of Congress, may not—
(1)
dissolve any qualified blind trust in which a covered investment has been placed pursuant to subsection (a), (b), (c)(2), or (d); or
(2)
except as provided in this section, otherwise control a covered investment.
(f)
Reporting requirements
(1)
Supervising ethics offices
Each supervising ethics office shall make available on the public website of the supervising ethics office—
(A)
a copy of—
(i)
each certification submitted to the supervising ethics office under subsection (a)(1) or (b)(1);
(ii)
each qualified blind trust agreement of each Member of Congress;
(iii)
each notice and other documentation submitted to the supervising ethics office under paragraph (2) or (3); and
(iv)
each notice, rule, and other documentation issued or received by the supervising ethics office under subsection (g);
(B)
a schedule of all assets placed in a qualified blind trust by each Member of Congress and interested party; and
(C)
a description of each extension granted, and each civil penalty imposed, pursuant to this section.
(2)
Trustees
Each trustee of a qualified blind trust established by a Member of Congress shall submit to the Member of Congress and the applicable supervising ethics office a written notice in any case in which the trustee—
(A)
learns that—
(i)
an interested party has obtained knowledge of any trust property other than the initial property of the qualified blind trust; or
(ii)
the value of the initial property of the qualified blind trust is less than $1,000; or
(B)
divests any initial property of the qualified blind trust.
(3)
Members of Congress
Each Member of Congress who is a beneficiary of a qualified blind trust shall submit to the applicable supervising ethics office—
(A)
a copy of the executed qualified blind trust agreement by not later than 30 days after the date of execution;
(B)
a list of each asset and each financial interest transferred to the qualified blind trust by an interested party by not later than 30 days after the date of the transfer;
(C)
a copy of each notice submitted to the Member of Congress under paragraph (2) by not later than 30 days after the date of receipt;
(D)
a written notice that an interested party has obtained knowledge of any holding of the qualified blind trust by not later than the date that is 30 days after the date on which the Member of Congress discovered that the knowledge had been obtained; and
(E)
a written notice of dissolution of the qualified blind trust by not later than 30 days after the date of dissolution.
(g)
Enforcement
(1)
In general
The applicable supervising ethics office shall provide a written notice (including notice of the potential for civil penalties under paragraph (2)) to any Member of Congress who fails—
(A)
to submit a certification under subsection (a)(1) or (b)(1) by the date on which the certification is required to be submitted; or
(B)
to place 1 or more covered investments owned by the Member of Congress or a spouse or dependent child of the Member of Congress in a qualified blind trust in accordance with subsection (a)(2), (b)(2), (c)(2)(C)(i)(II), or (c)(2)(A) by the applicable deadline, subject to any extension under subsection (a)(3), (b)(3), or (c)(2)(B).
(2)
Civil penalties
(A)
In general
A supervising ethics office shall impose a civil penalty, in the amount described in subparagraph (B), on a Member of Congress to whom a notice is provided under subparagraph (A) or (B) of paragraph (1)—
(i)
on the date that is 30 days after the date of provision of the notice; and
(ii)
not less frequently than once every 30 days thereafter.
(B)
Amount
The amount of each civil penalty imposed on a Member of Congress pursuant to subparagraph (A) shall be equal to the monthly equivalent of the annual rate of pay payable to the Member of Congress.
(h)
Authorization of supervising ethics offices
Each supervising ethics office in the legislative branch may—
(1)
impose and collect civil penalties in accordance with subsection (g);
(2)
establish such procedures and standard forms as the supervising ethics office determines to be appropriate to implement this section;
(3)
issue rules in accordance with this section to establish new, and supplement existing, definitions applicable to this section; and
(4)
publish on a website all documents and communications described in this subsection.
  .
(b)
Clerical amendment
The table of sections for  chapter 131  of title 5, United States Code, is amended by adding at the end the following:
SUBCHAPTER IV—Certain assets of Members of Congress, spouses, and dependent children
13161. Definitions.
13162. Placement of certain assets in qualified blind trusts.
  .