Restore Trust in Government Act
Summary
The "Restore Trust in Government Act" aims to prevent conflicts of interest by restricting stock ownership and trading by Members of Congress, the President, Vice President, and their spouses and dependents. It amends Title 5 of the U.S. Code to include these restrictions, defining covered individuals and investments, and outlining penalties for violations. The bill includes exceptions for diversified investment funds, U.S. Treasury securities, and certain family trusts, among other things.
Expected Effects
If enacted, this bill would require covered individuals to divest from prohibited investments within specified timeframes. It would also establish penalties for non-compliance, including fines and the disgorgement of profits. The intended effect is to reduce the potential for insider trading and increase public trust in government officials.
Potential Benefits
- Increased Public Trust: By preventing potential conflicts of interest, the Act could restore public confidence in government.
- Fairer Markets: Restrictions on trading could reduce the likelihood of insider trading based on non-public information.
- Ethical Governance: The Act promotes ethical behavior among high-ranking government officials.
- Reduced Influence of Personal Gain: The legislation aims to minimize the influence of personal financial interests on governmental decision-making.
- Equal Opportunity: By limiting the ability of government officials to profit from inside information, the act promotes a more level playing field for all investors.
Potential Disadvantages
- Potential for Reduced Investment: The restrictions might discourage qualified individuals from seeking public office due to financial limitations.
- Complexity of Enforcement: Determining violations and enforcing the restrictions could be challenging and resource-intensive.
- Limited Investment Options: Covered individuals may face limitations in managing their personal finances.
- Potential for Circumvention: Individuals might find ways to circumvent the rules, such as through indirect investments or undisclosed relationships.
- Impact on Spouses and Dependents: The restrictions extend to spouses and dependents, potentially affecting their financial independence.
Constitutional Alignment
The bill's alignment with the Constitution is complex. While it doesn't directly infringe on any specific constitutional right, it does impose restrictions on the financial activities of certain individuals. Article I, Section 6, Clause 2 addresses potential conflicts of interest, but this bill goes further by proactively restricting specific financial activities. The bill could be seen as an effort to ensure that government officials prioritize the public good over personal gain, aligning with the general welfare clause of the Constitution's preamble.
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).