# What This Bill Actually Does

This bill would ban senior federal government employees—along with their spouses and dependent children—from owning individual stocks, bonds, commodities, and similar investments while they work in these high-level positions. The goal is to prevent conflicts of interest where government officials might make decisions that benefit their personal investments rather than the public interest.

The ban would apply to roughly 6,000 Senior Executive Service employees across federal agencies. These are the career professionals who run day-to-day operations in departments like Defense, Treasury, and Health and Human Services. If someone currently holds these investments, they'd have 180 days to sell them after the law takes effect. New employees would get the same 180-day window from their start date. The restrictions wouldn't apply to diversified mutual funds, exchange-traded funds, or U.S. Treasury bonds—investments that are harder to manipulate for personal gain since they're spread across many companies.

If someone violates the ban, they'd face real consequences. They'd have to give back any profits to the government, couldn't deduct any losses from their taxes, and could be fined between $1,000 or 10 percent of the investment's highest value during the time they held it—whichever is greater. The bill also requires these employees to file annual written certifications confirming they're in compliance, and these certifications would be published online for public review. The Government Accountability Office would audit compliance after two years to see how well the system is working.

Dismantling Investments in Violation of Ethical Standards through Trusts Act

Cloud, Michael

Dismantling Investments in Violation of Ethical Standards through Trusts Act This bill prohibits a senior federal employee, his or her spouse, or dependent children from holding, purchasing, or selling certain financial instruments during the employee's term of service. Any profit made in violation of the prohibition must be disgorged to the Treasury and may subject the individual to a civil fine. The bill also requires the submission of an annual certification of compliance and requires the Government Accountability Office to conduct a compliance audit. A loss from a transaction or holding involving a covered financial instrument that is conducted in violation of this bill may not be deducted from the amount of income tax owed by the applicable senior federal employee, spouse, or dependent child. A senior federal employee who holds or conducts a transaction involving a covered financial instrument in violation of this bill may be subject to a civil fine assessed by the supervising ethics office.