119-s2852

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2852 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2852

To prohibit Federal officials from owning covered investments, and for 
 other purposes.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 17 (legislative day, September 16), 2025

 Mr. Kim introduced the following bill; which was read twice and 
 referred to the Committee on Finance

_______________________________________________________________________

 A BILL

To prohibit Federal officials from owning covered investments, and for 
 other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Restoring Trust in Public Servants 
Act''.

SEC. 2. OWNERSHIP OF COVERED INVESTMENTS.

    (a) 

=== Definitions. ===
-In this section:

    (1) Commodity; security future.--The terms ``commodity'' 
 and ``security future'' have the meanings given those term in 
 

section 1a of the Commodity Exchange Act (7 U.S.C. 1a).

    (2) Covered investment.--
        (A) In general.--The term ``covered investment'' 
 means--
            (i) an investment in--
            (I) a security;
            (II) a commodity;
            (III) a digital asset; or
            (IV) a security future; and
            (ii) any economic interest comparable to an 
 interest described in clause
            (i) that is 
 acquired through synthetic means, such as the 
 use of a derivative, including an option, 
 warrant, or other, similar means.
        (B) Inclusions.--The term ``covered investment'' 
 includes an investment or economic interest described 
 in subparagraph
        (A) that is held directly, or in which 
 an individual has an indirect, beneficial, or economic 
 interest, through--
            (i) an investment fund;
            (ii) a trust;
            (iii) an employee benefit plan; or
            (iv) a deferred compensation plan, 
 including a carried interest or other agreement 
 tied to the performance of an investment, other 
 than a fixed cash payment.
            (C) Exclusions.--The term ``covered investment'' 
 does not include--
            (i) a diversified mutual fund (including 
 any holdings of such a fund);
            (ii) a diversified exchange-traded fund 
 (including any holdings of such a fund);
            (iii) a United States Treasury bill, note, 
 or bond;
            (iv) compensation from the primary 
 occupation of a family member of a Member of 
 Congress; or
            (v) any investment fund held in a Federal, 
 State, or local government employee retirement 
 plan.
            (D) Clarification.--An investment that achieves 
 compliance with applicable environmental, social, and 
 governance criteria shall not be considered to be a 
 covered investment solely by reason of that compliance.

    (3) Covered official.--The term ``covered official'' means 
 the following:
        (A) In the legislative branch, a Member of Congress 
 and each of the following (other than an employee who 
 is considered an intern or a fellow for purposes of any 
 law or regulation establishing a limit on the number of 
 employees of an office of the Senate or the House of 
 Representatives):
            (i) An employee of a Senator (as described 
 in 

section 207

    (e)

    (9)
        (F) of title 18, United 
 States Code).
            (ii) An employee of a Member of the House 
 of Representatives (as described in 

section 207

    (e)

    (9)
        (E) of title 18, United States Code).
            (iii) An employee of a committee of 
 Congress (as defined in 

section 207

    (e)

    (9)
        (A) of 
 title 18, United States Code).
            (iv) An employee on the leadership staff of 
 the Senate (as defined in 

section 207

    (e)

    (9)
            (I) of title 18, United States Code).
            (v) An employee on the leadership staff of 
 the House of Representatives (as defined in 
 

section 207

    (e)

    (9)
        (H) of title 18, United States 
 Code).
        (B) In the executive branch--
            (i) the President;
            (ii) the Vice President;
            (iii) a political appointee; or
            (iv) any officer or employee of the 
 executive branch who--
            (I) is not a political appointee; 
 and
            (II) occupies a position described 
 in paragraphs

    (3) through

    (8) of 
 

section 13103

    (f) of title 5, United 
 States Code.
            (C) A judicial officer.

    (4) Digital asset.--The term ``digital asset'' means any 
 digital representation of value that is recorded on a 
 cryptographically secured distributed ledger or any similar 
 technology.

    (5) Executive branch; member of congress.--The terms 
 ``executive branch'' and ``Member of Congress'' have the 
 meanings given those term in 

section 13101 of title 5, United 
 States Code.

    (6) Family member.--The term ``family member'' means a 
 spouse or a dependent child (as defined in 

section 13101 of 
 title 5, United States Code).

    (7) Judicial officer.--The term ``judicial officer''--
        (A) has the meaning given the term in 

section 13101 
 of title 5, United States Code; and
        (B) includes--
            (i) a bankruptcy judge; and
            (ii) a magistrate judge.

    (8) Political appointee.--The term ``political appointee'' 
 means any individual occupying a position in the executive 
 branch--
        (A) who was appointed to such position by the 
 President, by and with the advice and consent of the 
 Senate;
        (B) described in sections 5312 through 5316 of 
 title 5, United States Code (relating to the Executive 
 Schedule);
            (C) as a noncareer appointee in the Senior 
 Executive Service, as defined in 

section 3132

    (a) of 
 title 5, United States Code; or
            (D) that is of a confidential or 

=== policy ===
determining 
 character under schedule C of subpart C of part 213 of 
 title 5, Code of Federal Regulations, or any other 
 position that is excepted from the competitive service 
 because of the confidential 

=== policy ===
determining, 

=== policy ===

 making or 

=== policy ===
advocating character of the position.

    (9) Security.--The term ``security'' has the meaning given 
 the term in 

section 3

    (a) of the Securities Exchange Act of 1934 
 (15 U.S.C. 78c

    (a) ).

    (10) Supervising ethics office.--The term ``supervising 
 ethics office'' means any of the following:
        (A) In the case of an individual described in 
 paragraph

    (3)
        (A) --
            (i) the Select Committee on Ethics of the 
 Senate; or
            (ii) the Committee on Ethics of the House 
 of Representatives.
        (B) In the case of an individual described in 
 paragraph

    (3)
        (B) , the Office of Government Ethics.
            (C) In the case of a judicial officer, the Judicial 
 Conference of the United States.

    (b) Ownership of Covered Investments.--

    (1) Conduct during federal service.--Except as described in 
 paragraph

    (2) , no covered official or family member of a Member 
 of Congress may own or trade any covered investment.

    (2) Compliance.--
        (A) In general.--Except as provided in subparagraph
        (B) , to comply with the requirements under paragraph

    (1) , a covered official or family member of a Member of 
 Congress shall divest of any covered investment prior 
 to the expiration of the applicable compliance period.
        (B) Applicable compliance period.--In this 
 paragraph, the term ``applicable compliance period'' 
 means--
            (i) with respect to a covered investment 
 held by a covered official or family member of 
 a Member of Congress on the date of enactment 
 of this Act, the 90-day period that begins on 
 the date of enactment of this Act;
            (ii) with respect to a covered investment 
 held by an individual on the date on which the 
 individual becomes a covered official or 
 becomes a family member of a Member of Congress 
 after the date of enactment of this Act, the 
 90-day period that begins on the date on which 
 the individual becomes a covered official or 
 becomes a family member of a Member of 
 Congress; and
            (iii) with respect to a covered investment 
 that is first held by a covered official or a 
 family member of a Member of Congress after the 
 last day of either of the periods described in 
 clauses
            (i) or
            (ii) , the 90-day period that 
 begins on the date on which the covered 
 investment was first held by the covered 
 official or family member.
            (c) Penalties.--

    (1) In general.--Except as provided in paragraph

    (2) , a 
 covered official in violation of this section, as determined by 
 the supervising ethics office, shall pay a penalty in an amount 
 equal to the fee set forth under 

section 13106
            (d) (1) of title 
 5, United States Code, for each such violation.

    (2) Exception.--
        (A) Penalty.--An individual described in 
 subparagraph
            (C) who during any month is in violation 
 of this section with respect to a covered investment, 
 as determined by the supervising ethics office, shall 
 pay a penalty in an amount equal to--
            (i) in the case of an individual who is a 
 covered official, the salary of such official 
 for that month; or
            (ii) in the case of an individual who is a 
 family member of a Member of Congress, the 
 salary of the Member of Congress for that 
 month.
        (B) Amount determined without regard to number of 
 violations.--The amount of the penalty imposed under 
 subparagraph
        (A) shall apply to an individual without 
 regard to the number of covered investments with 
 respect to which the individual is in violation during 
 the month in which the penalty is imposed.
            (C) Individuals described.--The individuals 
 described in this paragraph are the following:
            (i) A Member of Congress or a family member 
 of a Member of Congress.
            (ii) The President.
            (iii) The Vice President.
            (iv) A political appointee who was 
 appointed to such position by the President, by 
 and with the advice and consent of the Senate.
            (v) A judicial officer.
            (d) Publication.--For each individual in violation of this section, 
as determined by the supervising ethics office, the supervising ethics 
office shall make available a list, on a publicly accessible website of 
the supervising ethics office, detailing the names, occupation, and 
office of employment for each such individual or, in the case of a 
family member of a Member of Congress, the name of such family member 
and of such Member of Congress.

    (e) Tax Treatment of Divestitures.--

    (1) In general.--

Section 1043

    (b)

    (1) of the Internal Revenue 
 Code of 1986 is amended--
        (A) by striking ``and'' at the end of subparagraph
        (A) ;
        (B) by striking the period at the end of 
 subparagraph
        (B) and inserting ``, and''; and
            (C) by adding at the end the following new 
 subparagraph:
 ``
            (C) any--
 ``
            (i) covered official described in 
 subparagraph
        (B) or
            (C) of 

section 2

    (a)

    (3) of 
 the Restoring Trust in Public Servants Act who 
 is not described in subparagraph
        (A) ,
 ``
            (ii) any covered official described in 
 subparagraph
        (A) of 

section 2

    (a)

    (3) of such 
 Act, and
 ``
            (iii) any family member of a Member of 
 Congress (as such terms are defined in 

section 2

    (a) of such Act).''.

    (2) Certificate of divestiture.--

Section 1043

    (b)

    (2) of the 
 Internal Revenue Code of 1986 is amended--
        (A) in subparagraph
        (A) , by inserting ``, and the 
 Restoring Trust in Public Servants Act'' after 
 ``including 

section 208 of title 18, United States 
 Code''; and
        (B) by striking subparagraph
        (B) and inserting the 
 following:
 ``
        (B) that has been issued by--
 ``
            (i) in the case of an eligible person 
 described in subparagraph
        (A) or
        (B) of 
 paragraph

    (1) , the President or the Director of 
 the Office of Government Ethics, in the case of 
 executive branch officers or employees, or by 
 the Judicial Conference of the United States 
 (or its designee), in the case of judicial 
 officers, and
 ``
            (ii) in the case of any eligible person 
 described in paragraph

    (1)
            (C) , the supervising 
 ethics office (as defined in 

section 2

    (a) of 
 the Restoring Trust in Public Servants Act), 
 and''.

    (3) Effective date.--The amendments made by this subsection 
 shall apply to sales after the date of the enactment of this 
 Act.

SEC. 3. BAN ON ALL OUTSIDE EARNED INCOME AND ALL SERVICE ON BOARDS BY 
 MEMBERS OF CONGRESS.

    (a) Outside Earned Income.--

    (1) In general.--

Section 13143

    (a)

    (1) of title 5, United 
 States Code, is amended by striking ``outside earned income 
 attributable to such calendar year which exceeds 15 percent'' 
 and inserting ``any outside earned income attributable to such 
 calendar year, except that such an officer or employee may have 
 outside earned income attributable to such calendar year which 
 does not exceed 15 percent''.

    (2) Individuals becoming members during calendar year.--
 

Section 13143

    (a)

    (2) of title 5, United States Code, is 
 amended--
        (A) by striking ``outside earned income 
 attributable to the portion of that calendar year which 
 occurs after such individual becomes a Member or such 
 an officer or employee which exceeds 15 percent'' and 
 inserting ``any outside earned income attributable to 
 the portion of that calendar year which occurs after 
 such individual becomes a Member or such an officer or 
 employee, except that such an officer or employee may 
 have outside earned income attributable to such portion 
 of that calendar year which does not exceed 15 
 percent''; and
        (B) by striking ``such individual is a Member or 
 such officer or employee'' and inserting ``such 
 individual is such an officer or employee''.

    (3) Preserving authority of officers and employees of 
 congress to earn compensation from practicing medicine.--
 

Section 13144

    (a) of title 5, United States Code, is amended--
        (A) in paragraph

    (1) , by striking ``fiduciary 
 relationship'' and inserting ``fiduciary relationship, 
 except that such an officer or employee of the House of 
 Representatives or Senate may receive such compensation 
 if the fiduciary relationship involves the practice of 
 medicine''; and
        (B) in paragraph

    (3) , by striking ``fiduciary 
 relationship'' and inserting ``fiduciary relationship, 
 except that such an officer or employee of the House of 
 Representatives or Senate may receive such compensation 
 if the fiduciary relationship involves the practice of 
 medicine''.

    (4) Application of ban to income earned from teaching.--
 

Section 13144

    (a)

    (5) of title 5, United States Code, is amended 
 by striking ``without the prior notification'' and inserting 
 ``except that such an officer or employee may receive 
 compensation for teaching with the prior notification''.

    (5) === Definition. ===
-

Section 13141 of title 5, United States 
 Code, is amended--
        (A) by redesignating paragraph

    (5) as paragraph

    (6) ; and
        (B) by inserting after paragraph

    (4) the following:
 ``

    (5) The term `outside earned income', with respect to a 
 Member of Congress, has the meaning given that term in clause 
 4
            (d) of rule XXV of the Rules of the House of Representatives 
 for the One Hundred Seventeenth Congress, except that paragraph
            (d) (1)
            (D) of such clause shall not apply. Such term shall apply 
 with respect to a Senator in the same manner as such term 
 applies to a Member of the House of Representatives under such 
 clause.''.

    (b) Service on Boards.--

Section 13144

    (a)

    (4) of title 5, United 
States Code, is amended to read as follows:
 ``

    (4) serve as an officer or member of the board of any 
 association, corporation, or other entity, except that--
 ``
        (A) a Member and such an officer or employee may 
 serve without compensation as an officer or member of 
 the board of any nonprofit association, nonprofit 
 corporation, or other nonprofit entity; and
 ``
        (B) such an officer or employee may serve without 
 compensation as an officer or member of any other 
 association, corporation or other entity; or''.

SEC. 4. LIFETIME LOBBYING BAN.

    (a) In General.--

Section 207

    (e) of title 18, United States Code, is 
amended--

    (1) by striking paragraph

    (1) and inserting the following:
 ``

    (1) Members of congress.--
 ``
        (A) In general.--Any person who is a Senator or a 
 Member of the House of Representatives and who, after 
 that person leaves office, knowingly makes any lobbying 
 contact to, or engages in lobbying activities with, a 
 covered executive branch official or any Member, 
 officer, or employee of either House of Congress shall 
 be punished as provided in 

section 216 of this title.
 ``
        (B) === Definitions. ===
-In this paragraph:
 ``
            (i) The terms `lobbying activities' and 
 `covered executive branch official' have the 
 meanings given those terms in 

section 3 of the 
 Lobbying Disclosure Act of 1995 (2 U.S.C. 
 1602).
 ``
            (ii) The term `lobbying contact' has the 
 meaning given the term in 

section 3

    (8) of the 
 Lobbying Disclosure Act of 1995 (2 U.S.C. 
 1602

    (8) ) except that subparagraph
        (B)
            (iv) of 
 such paragraph shall not apply.''; and

    (2) in paragraph

    (2) --
        (A) by striking the heading and all that follows 
 through ``Any person'' and inserting the following:
 ``

    (2) Officers and certain staff.--
 ``
        (A) Officers and staff of the senate.--Any 
 person''; and
        (B) by adding at the end the following:
 ``
        (B) Officers of the house of representatives.--
 ``
            (i) Any person who is an elected officer 
 of the House of Representatives and who, within 
 1 year after that person leaves office, 
 knowingly makes, with the intent to influence, 
 any communication to or appearance before any 
 of the persons described in clause
            (ii) , on 
 behalf of any other person (except the United 
 States) in connection with any matter on which 
 such elected officer seeks action by a Member, 
 officer, or employee of either House of 
 Congress, in his or her official capacity, 
 shall be punished as provided in 

section 216 of 
 this title.
 ``
            (ii) The persons referred to in clause
            (i) with respect to appearances or 
 communications by a former elected officer are 
 any Member, officer, or employee of the House 
 of Representatives.''.

    (b) Restrictions Relating to Foreign Entities.--

Section 207

    (f) of 
title 18, United States Code, is amended--

    (1) in paragraph

    (1) , by striking ``Any person'' and 
 inserting ``Except as provided in paragraph

    (2) , any person'';

    (2) by redesignating paragraphs

    (2) and

    (3) as paragraphs

    (3) and

    (4) , respectively;

    (3) by inserting after paragraph

    (1) the following:
 ``

    (2) Member of congress.--With respect to the restrictions 
 under paragraph

    (1) , any person who is a Member of Congress may 
 not engage in any of the activities under such paragraph at any 
 time after leaving office.''; and

    (4) by striking paragraph

    (4) , as so redesignated, and 
 inserting the following:
 ``

    (4) === Definition. ===
-For purposes of this subsection, the 
 term `foreign entity' means--
 ``
        (A) the government of a foreign country, as 
 defined in 

section 1

    (e) of the Foreign Agents 
 Registration Act of 1938, as amended (22 U.S.C. 
 611

    (e) ), or a foreign political party, as defined in 
 

section 1

    (f) of the Foreign Agents Registration Act of 
 1938, as amended (22 U.S.C. 611

    (f) ); and
 ``
        (B) in the case of a Member of Congress, any 
 foreign principal as defined in 

section 1

    (b) of the 
 Foreign Agents Registration Act of 1938, as amended (22 
 U.S.C. 611

    (b) ).''.
            (c) Effective Date.--The amendments made by subsection

    (a) shall 
apply to individuals who leave office or employment to which such 
amendments apply on or after the date of commencement of the first 
session of the One Hundred Twentieth Congress sine die or January 4, 
2027, whichever date is earlier.
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