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Congress·In Committee·about 1 year ago

Congress proposes ban on stock-like trading for top federal staff and families, with public compliance reports

Also known as: Dismantling Investments in Violation of Ethical Standards through Trusts Act

Legislative Progress

✓ Filed
Review
House
Senate
President

Impacts

Negative Impacts(1)
Child Tax Credit
Hurts
Mixed Impacts(2)
Federal Employee
Neutral
Small Business Owner
Neutral

Key Points

  • Bans Senior Executive Service employees, and their spouses and dependent kids, from owning or trading most individual stocks, commodities, and similar products while the employee is in the job.
  • Allows certain safer or broader investments, like diversified mutual funds and diversified exchange-traded funds, plus U.S. Treasury bills, notes, and bonds.
  • Gives people 180 days to sell covered investments, or they can place them in a qualified blind trust to stay in compliance.
  • Requires yearly written compliance certifications and puts those certifications online for the public to see.
  • Adds penalties for breaking the rules, including paying back profits to the Treasury and civil fines of at least $1,000 or 10% of the investment’s value, and calls for an audit within 2 years.
Consumer ProtectionCivil RightsTaxes

Milestones

2 milestones2 actions
Feb 26, 2025House

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.

Feb 26, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Soon after the Act is enacted

Agencies and ethics offices start building the new rules, guidance, and compliance process.

SES employees and their families would start getting instructions on what they can keep, what they must sell, and how to use options like diversified funds or a qualified blind trust.

Beginning after the restrictions take effect, then at least once each year

Annual compliance certifications start being filed and posted online.

The public would be able to see that each SES employee has submitted a compliance statement, and agencies would have a regular checkpoint to catch problems.

After the restrictions take effect; timing depends on enforcement actions

Civil fines, hearings, and public fine postings begin for violations.

SES employees who don’t comply could face a fine of at least $1,000 (or 10% of the highest value of the prohibited holding while held), and the fine result would be posted publicly.

Related News

2 articles
The Washington Times·about 1 year ago

Lawmakers push to ban top-level government officials from trading stocks

Covers the introduction of the DIVEST Act (H.R. 1599) to bar Senior Executive Service officials and their families from trading individual stocks while serving.

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Cloud.house.gov (republished Washington news release)·about 1 year ago

RELEASE: Cloud Introduces Bipartisan Bill to Ban Stock Trading by Senior Federal Government Officials

News release describing the DIVEST Act (H.R. 1599) ban on SES stock trading, divest/blind-trust compliance options, and penalties.

CR+

Source Information

Document Type

Congressional Bill

Official Title

Dismantling Investments in Violation of Ethical Standards through Trusts Act

Bill NumberHR 1599
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred 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.

Sponsor

Cosponsors

(4)
D: 1R: 3

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.