HR358-119

What This Bill Does

The No Corruption in Government Act combines three congressional ethics reforms. Title I, the Prohibit Insider Trading Act, adds a title 5 subchapter banning Members of Congress and their spouses from holding, purchasing, or selling covered financial instruments during the Member's service. Covered instruments include securities, security futures, commodities, and synthetic equivalents such as derivatives, options, and warrants, while diversified mutual funds, diversified exchange-traded funds, the Thrift Savings Plan, and U.S. Treasury bills, notes, and bonds are excluded. The ban begins seven days after a new Member's initial term starts and does not apply to assets held in qualified blind trusts. Violators must disgorge profits to Treasury, cannot deduct losses from violating transactions, and may face civil fines. Members must file public compliance certifications within seven days after each session begins, and supervising ethics offices must audit compliance at least every two years. Title II, the Ban Members From Lobbying Act, extends the Senate post-employment lobbying ban from two years to six years and creates a three-year House Member ban, with a one-year ban for elected House officers. Title III repeals automatic Member pay adjustments and takes effect when the 120th Congress convenes.

Who Benefits and How

Voters benefit from stronger limits on congressional stock trading, lobbying, and automatic pay increases. Government ethics organizations benefit from public certifications and biennial audits. Diversified fund providers benefit because mutual funds and ETFs remain permitted investment vehicles. Treasury staff benefit from disgorged profits from prohibited holdings or transactions.

Who Bears the Burden and How

Members of Congress must divest, use qualified blind trusts, or avoid covered financial instruments during service. Congressional spouses face the same holdings and transaction ban. Former Senators face a six-year post-employment lobbying ban. Former House Members face a three-year post-employment lobbying ban. Supervising ethics office staff must publish certifications and audit compliance every two years. Lobbying employers lose quicker access to former Members as paid advocates.

Key Provisions

• Prohibits Members of Congress and spouses from holding, buying, or selling covered financial instruments during service.
• Excludes diversified funds, Thrift Savings Plan investments, and U.S. Treasury securities.
• Requires disgorgement of profits, denial of loss deductions, public certifications, and biennial ethics audits.
• Extends the Senate lobbying ban to six years and creates a three-year House Member lobbying ban.
• Repeals automatic congressional pay adjustments starting with the 120th Congress.