Providing for consideration of the bill (H.R. 1908) to prohibit stock trading and ownership by Members of Congress and their spouses and dependent children, and for other purposes.
Summary
H.Res. 725 proposes a rule for the House of Representatives to consider H.R. 1908, the 'Restore Trust in Congress Act'. This act aims to prohibit stock trading and ownership by Members of Congress, their spouses, and dependent children, with certain exceptions.
The resolution outlines the process for debating and amending the bill, including waiving points of order and specifying an amendment to be considered as adopted. The core of H.R. 1908, as amended, introduces restrictions on covered investments, defines key terms, and establishes penalties for violations.
Expected Effects
If passed, H.R. 1908 would significantly restrict the ability of members of Congress and their immediate families to trade stocks and other covered investments. This could lead to increased public trust in government and reduce potential conflicts of interest.
However, it may also create compliance challenges and potentially impact the personal financial decisions of those affected. The amendment includes definitions and exceptions that will shape the practical application of the restrictions.
Potential Benefits
- Increased public trust in government by reducing potential conflicts of interest.
- Enhanced accountability and ethical standards for members of Congress.
- Level playing field by preventing lawmakers from potentially benefiting from insider information.
- Strengthened perception of fairness and impartiality in legislative processes.
- Reduced opportunities for corruption or undue influence in policymaking.
Potential Disadvantages
- Potential limitations on personal investment choices for members of Congress and their families.
- Compliance burdens and administrative costs associated with divestment and monitoring.
- Possible difficulties in defining and enforcing the restrictions on covered investments.
- Risk of unintended consequences or loopholes that could undermine the effectiveness of the law.
- Concerns about government overreach into personal financial matters.
Constitutional Alignment
The resolution and the underlying bill primarily address ethical conduct and potential conflicts of interest within the legislative branch. While the Constitution does not explicitly address stock trading by members of Congress, the effort to promote transparency and prevent corruption aligns with the broader principles of ensuring a fair and representative government.
Article I, Section 6, which addresses compensation and restrictions on holding other offices, could be interpreted as relevant to the principle of preventing undue influence or conflicts of interest. The proposed restrictions on financial activities could be seen as a means to uphold the integrity of the legislative process.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).