H.R. 4036

119 HR 4036 IH: No Shorting America Act
 U.S. House of Representatives
 2025-06-17
 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.
 I  119th CONGRESS  1st Session  H. R. 4036  IN THE HOUSE OF REPRESENTATIVES   June 17, 2025   Mr. Kean  (for himself and  Ms. Craig ) introduced the following bill; which was referred to the  Committee on House Administration    A BILL
To amend title 5, United States Code, to prohibit the short sale of certain financial investments by Members of Congress and their spouses and dependents, and for other purposes.
1.
Short title
This Act may be cited as the   No Shorting America Act  .
2.
Prohibition of congressional short selling of financial investments
 Chapter 131  of title 5, United States Code, is amended by adding at the end the following (and by conforming the table of contents for such chapter accordingly):
IV
Prohibition on Congressional Short Selling
13151.
Definitions
In this subchapter:
(1)
Covered financial instrument
The term  covered financial instrument  means—
(A)
any investment in—
(i)
a security (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) ));
(ii)
a security future (as defined in section 3(a) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c(a) )); or
(iii)
a commodity (as defined in section 1a of the Commodity Exchange Act ( 7 U.S.C. 1a )); and
(B)
any economic interest comparable to an interest described in subclause (I) that is acquired through synthetic means, such as the use of a derivative, including an option, warrant, or other similar means.
(2)
Covered individual
The term  covered individual  means any of the following:
(A)
A Member of Congress.
(B)
The spouse of a Member of Congress.
(C)
The dependent of a Member of Congress.
(3)
Dependent
The term  dependent  has the meaning given that term in section 13101.
(4)
Member of Congress
The term  Member of Congress  has the meaning given that term in section 13101.
(5)
Short sale
The term  short sale  has the meaning given that term in section 242.200 of title 17, Code of Federal Regulations (or any successor regulation).
(6)
Supervising ethics office
The term  supervising ethics office  has the meaning given that term in section 13101.
13152.
Limitation on short sale
(a)
In general
No covered individual may engage in a short sale of any covered financial instrument issued by any business entity that is listed on a national stock exchange.
(b)
Income tax
A loss from a short sale involving a covered financial instrument that is conducted in violation of this section may not be deducted from the amount of income tax owed by the covered individual.
(c)
Proof of compliance
(1)
Submission
A Member of Congress shall submit to the supervising ethics office a pledge of compliance with the requirements of this subchapter, and shall produce, upon request of the supervising ethics office, material or information determined by the supervising ethics committee to be necessary to indicate compliance with the provisions of this subchapter.
(2)
Certificate
The supervising ethics office shall provide each Member of Congress in compliance with the provisions of this chapter with a certificate of compliance.
(3)
Publication
The supervising ethics office shall make available, on a publicly accessible website, all certificates issued under this subsection.
13153.
Enforcement
(a)
Referral
The supervising ethics office shall refer to the Attorney General the name of any covered individual who such office has reasonable cause to believe has willfully failed to comply with the requirements of section 13152.
(b)
Penalty
(1)
In general
The Attorney General may bring a civil action in any appropriate United States district court against any covered individual who knowingly and willfully fails to comply with section 13152. The court in which such action is brought may assess against such individual a civil penalty in any amount, not to exceed $50,000.
(2)
Limitation
A covered individual may not pay any penalty resulting from a civil action under paragraph (1) using—
(A)
funds from a Members’ Representational Allowance or Senators’ Official Personnel and Office Expense Account (as the case may be); or
(B)
funds of any political committee under the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30101 et seq. ).
  .