HRES725-119

What This Bill Does

This resolution provides for the consideration of H.R. 1908, the "Restore Trust in Congress Act," which prohibits Members of Congress, their spouses, and dependent children from owning or trading individual stocks and certain other investments. The bill addresses concerns about conflicts of interest and insider trading by legislators who have access to non-public information that could affect financial markets.

Who Benefits and How

The American public benefits from increased transparency and reduced potential for congressional insider trading, as legislators would no longer be able to personally profit from their access to market-moving information. The resolution also provides tax benefits to affected Members of Congress by treating divestiture under this act as qualifying for tax deferral under Section 1043 of the Internal Revenue Code, allowing them to sell covered investments and defer capital gains taxes if proceeds are reinvested in approved assets.

Who Bears the Burden and How

Members of Congress, their spouses, and dependent children bear the primary burden, as they must divest any covered investments (individual stocks, commodities, futures) within 90-180 days. Violators face significant penalties: a fee equal to 10% of the covered investment's value plus disgorgement of any profits, which are paid into the U.S. Treasury. Members cannot use their official allowances or campaign funds to pay these penalties.

Key Provisions

• Prohibits Members of Congress, spouses, and dependent children from owning or trading individual securities, commodities, and futures
• Requires divestiture within 180 days for current Members or 90 days for new Members
• Exempts diversified investment funds (mutual funds, index funds), Treasury bonds, state/municipal bonds, and small business interests
• Imposes 10% penalty fee plus profit disgorgement for violations
• Requires public disclosure of all fines and penalties assessed