Bill · H.R. 1599· House(119-HR-1599)
Dismantling Investments in Violation of Ethical Standards through Trusts Act
- Introduced
- 2/26/2025
- Last activity
- 2/26/2025 — Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Sponsored by
- Michael Cloud
- Cosponsors
- - 3 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the "Dismantling Investments in Violation of Ethical Standards through Trusts Act," aims to amend title 5 of the United States Code. It prohibits senior Federal employees, as well as their spouses and dependent children, from holding, purchasing, or selling certain financial instruments. These "covered financial instruments" include securities, commodity futures, and certain economic interests. The law provides exceptions for qualified blind trusts and specific sale deadlines. It also establishes penalties such as disgorgement of profits and civil fines. Finally, it mandates annual compliance certifications and an audit by the Government Accountability Office.
Yes
Does this make what the government does easier for the public to see?+8
The bill mandates the public posting of compliance certifications, fine descriptions, and hearing results.
Does this reduce what the federal government owes?+1
The bill requires profits from prohibited transactions to be disgorged to the Treasury's general fund.
The opposite
Would high-income households be better off under this?-3
The bill restricts the ability of senior federal employees to trade in various financial instruments.
Does this cut taxes for middle-income families?-1
The bill prohibits the deduction of investment losses for violating employees and their families.
Who it would affect, and how
Potential Positive Impacts for People
-
Financial Transparency: The bill requires senior Federal employees to submit written compliance certifications to the supervising ethics office at least annually, which are then published on a publicly available website (Sec. 13153).
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Accountability for Ethical Violations: The bill requires that any profit made from prohibited transactions involving covered financial instruments be disgorged to the general fund of the Treasury (Sec. 13152(d)(1)).
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Public Oversight of Penalties: The supervising ethics office is required to publish descriptions of assessed fines, the reasons for those fines, and the results of any related hearings on a publicly available website (Sec. 13154(a)(3)).
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Financial Oversight: The Comptroller General of the United States is tasked with conducting an audit of compliance by senior Federal employees within two years of the act's enactment (Sec. 13155).
Potential Negative Impacts for People
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Financial Restrictions on Families: The prohibition on holding or trading certain financial instruments extends beyond the employee to include their spouses and dependent children (Sec. 13152(a)).
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Financial Penalties and Loss of Tax Benefits: Employees or their families who violate these rules may be required to disgorge profits, may be unable to deduct losses from their income tax, and may face civil fines (Sec. 13152(d)).
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Civil Fines: The supervising ethics office can assess civil fines that are equal to either $1,000 or 10 percent of the greatest dollar value of the covered financial instrument held during the period of the violation (Sec. 13154(a)(1)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Governance And Ideology
- Improves Government Transparency+8
- Demographic And Interest Groups
- Good For High Income Households-3
- Economy And Finance
- Reduces National Debt+1Reduces Middle Class Taxes-1
- 2/26/2025
- Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 4 Cosponsors added.
- Introduced in House
Josh BrecheenRepublican · Oklahoma
Kat CammackRepublican · Florida
Jared GoldenDemocrat · Maine
Keith SelfRepublican · Texas