In a notable stride towards addressing the ethical concerns shrouding Capitol Hill, Senators Ashley Moody and Kirsten Gillibrand presented a bipartisan bill named the Restore Trust in Congress Act, aiming to strictly prohibit members of Congress, along with their spouses and dependent children, from owning or trading individual stocks. This move is seen as a step to curb insider trading and has garnered diverse backing. The bill parallels a companion piece initiated in the House by Representatives Chip Roy and Seth Magaziner, which currently enjoys the support of 124 cosponsors across party lines. As stated by the Senator's Office, "It is fundamental to our Republic that members of Congress are focused on our nation and its citizens’ well-being, not how they may financially profit from their positions."
The proposed legislation delineates covered investments that members of Congress would be barred from engaging in, including stocks, commodities, and derivatives; however, it exempts diversified mutual funds, U.S. savings bonds, state or municipal government bonds, and certain real estate dealings, among others. The bill's intent is to eliminate conflicts of interest and ensure legislative decisions are not influenced by personal financial gains. Under the act's stipulations, currently covered individuals would have 180 days for compliance to divest their prohibited investments, while new entrants would be allowed a 90-day window. Furthermore, the enforcement measures include fines equivalent to 10 percent of the investment's value, along with disgorgement of any profits derived from impermissible transactions, as outlined by the Senator's Office
The bill also prescribes the establishment of qualified blind trusts as a safeguard for those wishing to maintain investments without direct control or insider knowledge. Under particular conditions, family trusts might qualify for exemptions, subject to approval by the respective overseeing ethics office. Constructed to enhance transparency, the proposal also mandates that each supervising ethics office publish details regarding assessed fines, reasons for assessments, and outcomes on a publicly accessible website.
