H.R.3779 - STOCK Act 2.0 (119th Congress)
Summary
H.R.3779, the STOCK Act 2.0, aims to strengthen financial transparency and accountability for senior government officials. It expands reporting requirements for federal payments, includes Federal Reserve officials under the STOCK Act, increases penalties for non-compliance, and bans conflicted financial interests such as stock trading for certain senior government officials. The bill also mandates electronic filing and online public availability of financial disclosure forms.
Expected Effects
The bill's passage would likely lead to increased scrutiny of the financial activities of government officials. This could deter insider trading and conflicts of interest. It would also provide the public with greater access to information about the financial holdings and transactions of those in power.
Potential Benefits
- Increased transparency in government financial dealings.
- Reduced potential for conflicts of interest among senior officials.
- Enhanced public trust in government integrity.
- Stricter penalties for financial misconduct.
- Improved accessibility of financial disclosure information through electronic filing and online databases.
Potential Disadvantages
- Potential for increased administrative burden on government officials due to expanded reporting requirements.
- Possible chilling effect on qualified individuals seeking public service due to stricter financial restrictions.
- Risk of unintended consequences from broad definitions of "covered financial interests."
- Compliance costs associated with establishing and maintaining electronic filing systems.
- Potential for politically motivated or frivolous complaints based on disclosed information.
Constitutional Alignment
The STOCK Act 2.0 aligns with the principles of transparency and accountability, which are implicit in the Constitution's structure. While the Constitution does not explicitly address financial disclosures, the concept of preventing corruption and ensuring public trust is consistent with the overall framework. The bill's provisions related to reporting and disclosure could be seen as an exercise of Congress's implied powers to regulate the conduct of government officials, necessary for the proper functioning of the government (Article I, Section 8).
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).