Ҥ 13161. Definitions

“In this subchapter:

“(1) COMMODITY.—The term ‘commodity’ has the meaning given the term in section 1a of the Commodity Exchange Act (7 U.S.C. 1a).

“(2) COVERED FINANCIAL INSTRUMENT.—

“(A) IN GENERAL.—The term ‘covered financial instrument’ means—

“(i) any investment in—

“(I) a security;

“(II) a security future; or

“(III) a commodity; 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, a warrant, or other similar means.

“(B) INCLUSIONS.—The term ‘covered financial instrument’ 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 (other than a qualified blind 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 financial instrument’ 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 spouse or dependent child 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 financial instrument solely by reason of that compliance.

“(3) CURRENT.—The term ‘current’, with respect to a Member of Congress, means an individual who is serving as a Member of Congress on the date of enactment of the Good Government Act of 2025.

“(4) DEPENDENT CHILD; MEMBER OF CONGRESS.—The terms ‘dependent child’ and ‘Member of Congress’ have the meanings given those terms in section 13101.

“(5) DIVERSIFIED.—The term ‘diversified’, with respect to a fund, trust, or plan, means that the fund, trust, or plan does not have a stated policy of concentrating its investments in any industry, business, single country other than the United States, or bonds of a single State.

“(6) INITIAL PROPERTY.—The term ‘initial property’ means an asset or financial interest transferred to a qualified blind trust by, or on behalf of, an interested party or a relative of an interested party, regardless of whether the asset or financial interest is transferred to the qualified blind trust on or after the date of establishment of the qualified blind trust.

“(7) INTERESTED PARTY.—The term ‘interested party’ has the meaning given the term in section 13104(f)(3)(E).

“(8) NEW.—The term ‘new’, with respect to a Member of Congress, means an individual who—

“(A) is not a current Member of Congress; but

“(B) commences service as a Member of Congress after the date of enactment of the Good Government Act of 2025.

“(9) QUALIFIED BLIND TRUST.—The term ‘qualified blind trust’ means a qualified blind trust, as defined in section 13104(f)(3), that has been approved in writing by the applicable supervising ethics office under section 13104(f)(3)(D).

“(10) SECURITY; SECURITY FUTURE.—The terms ‘security’ and ‘security future’ have the meanings given those terms in section 3(a) of Securities Exchange Act of 1934 (15 U.S.C. 78c(a)).

“(11) SUPERVISING ETHICS COMMITTEE.—The term ‘supervising ethics committee’ means, as applicable—

“(A) the Select Committee on Ethics of the Senate; and

“(B) the Committee on Ethics of the House of Representatives.

Ҥ 13162. Prohibition on certain transactions and holdings involving covered financial instruments

“Except as provided in section 13163, a Member of Congress, or any spouse or dependent child of a Member of Congress, may not, during the term of service of the Member of Congress, hold, purchase, or sell any covered financial instrument.

Ҥ 13163. Divestment and placement of covered financial instruments in qualified blind trusts

“(a) Current Members of Congress.—

“(1) CERTIFICATION.—Not later than 30 days after the date of enactment of the Good Government Act of 2025, each current Member of Congress shall submit to the applicable supervising ethics office a certification that, as applicable—

“(A) for each covered financial instrument owned by the Member of Congress or a spouse or dependent child of the Member of Congress, the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, will, in accordance with paragraph (2)—

“(i) divest the covered financial instrument; or

“(ii) place the covered financial instrument in a qualified blind trust, including by establishing a qualified blind trust for that purpose, if necessary; or

“(B) neither the Member of Congress nor any spouse or dependent child of the Member of Congress owns a covered financial instrument.

“(2) DIVESTITURE OR PLACEMENT IN QUALIFIED BLIND TRUST.—

“(A) REQUIREMENT.—Subject to paragraph (3), not later than 120 days after the date of enactment of the Good Government Act of 2025, each current Member of Congress shall divest, or place in a qualified blind trust (including by establishing a qualified blind trust for that purpose, if necessary), each covered financial instrument owned by the Member of Congress or a spouse or dependent child of the Member of Congress.

“(B) DIVESTITURE.—A current Member of Congress shall divest a covered financial instrument held by the Member of Congress or a spouse or dependent child of the Member of Congress if—

“(i) the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, is unable to place the covered financial instrument in a qualified blind trust by the date described in subparagraph (A); and

“(ii) the Member of Congress fails to obtain an extension pursuant to paragraph (3).

“(3) EXTENSIONS.—If a current Member of Congress, or a spouse or dependent child of the Member of Congress, is unable to place a covered financial instrument in a qualified blind trust by the date described in paragraph (2)(A), the Member of Congress may request, and the supervising ethics office may grant, 1 or more reasonable extensions, subject to the conditions that—

“(A) the total period of time covered by all extensions granted to the Member of Congress for the covered financial instrument shall not exceed 180 days; and

“(B) the period covered by a single extension shall be not longer than 45 days.

“(b) New Members of Congress.—

“(1) CERTIFICATION.—Not later than 30 days after the date on which an individual becomes a new Member of Congress, the new Member of Congress shall submit to the applicable supervising ethics office a certification that, as applicable—

“(A) for each covered financial instrument owned by the Member of Congress or a spouse or dependent child of the Member of Congress, the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, will—

“(i) divest the covered financial instrument; or

“(ii) place the covered financial instrument in a qualified blind trust, including by establishing a qualified blind trust for that purpose, if necessary; or

“(B) neither the Member of Congress nor a spouse or dependent child of the Member of Congress owns a covered financial instrument.

“(2) DIVESTITURE OR PLACEMENT IN QUALIFIED BLIND TRUST.—

“(A) REQUIREMENT.—Subject to paragraph (3), not later than 120 days after the date on which an individual becomes a new Member of Congress, the individual shall divest, or place in a qualified blind trust (including by establishing a qualified blind trust for that purpose, if necessary), each covered financial instrument owned by the Member of Congress or a spouse or dependent child of the Member of Congress.

“(B) DIVESTITURE.—A new Member of Congress shall divest a covered financial instrument held by the Member of Congress or a spouse or dependent child of the Member of Congress if—

“(i) the Member of Congress, or the applicable spouse or dependent child of the Member of Congress, is unable to place the covered financial instrument in a qualified blind trust by the date described in subparagraph (A); and

“(ii) the Member of Congress fails to obtain an extension pursuant to paragraph (3).

“(3) EXTENSIONS.—If a new Member of Congress, or a spouse or dependent child of the Member of Congress, is unable to place a covered financial instrument in a qualified blind trust by the date described in paragraph (2)(A), the Member of Congress may request, and the supervising ethics office may grant, 1 or more reasonable extensions, subject to the conditions that—

“(A) the total period of time covered by all extensions granted to the Member of Congress for the covered financial instrument shall not exceed 180 days; and

“(B) the period covered by a single extension shall be not longer than 45 days.

“(c) Mingling of assets.—A spouse or dependent child of a Member of Congress may place a covered financial instrument in a qualified blind trust established by the Member of Congress under subsection (a)(2)(A) or (b)(2)(A), as applicable.

“(d) Separation from service and cooling-Off period required for control.—During the period beginning on the date on which an individual becomes a Member of Congress and ending on the date that is 180 days after the date on which the individual ceases to serve as a Member of Congress, the Member of Congress, and any spouse or dependent child of the Member of Congress, may not—

“(1) dissolve any qualified blind trust in which a covered financial instrument has been placed pursuant to subsection (a) or (b); or

“(2) except as provided in this section, otherwise control a covered financial instrument.

“(e) Reporting requirements.—

“(1) SUPERVISING ETHICS OFFICES.—Each supervising ethics office shall make available on the public website of the supervising ethics office—

“(A) a copy of—

“(i) each certification submitted to the supervising ethics office under subsection (a)(1) or (b)(1);

“(ii) each qualified blind trust agreement of each Member of Congress; and

“(iii) each notice and other documentation submitted to the supervising ethics office under paragraph (2) or (3);

“(B) a schedule of all assets placed in a qualified blind trust by each Member of Congress and interested party; and

“(C) a description of each extension granted, and each civil penalty imposed, pursuant to this section.

“(2) TRUSTEES.—Each trustee of a qualified blind trust established by a Member of Congress shall submit to the Member of Congress and the applicable supervising ethics office a written notice in any case in which the trustee—

“(A) learns that—

“(i) an interested party has obtained knowledge of any trust property other than the initial property of the qualified blind trust; or

“(ii) the value of the initial property of the qualified blind trust is less than $1,000; or

“(B) divests any initial property of the qualified blind trust.

“(3) MEMBERS OF CONGRESS.—Each Member of Congress who is a beneficiary of a qualified blind trust shall submit to the applicable supervising ethics office—

“(A) a copy of the executed qualified blind trust agreement by not later than 30 days after the date of execution;

“(B) a list of each asset and each financial interest transferred to the qualified blind trust by an interested party by not later than 30 days after the date of the transfer;

“(C) a copy of each notice submitted to the Member of Congress under paragraph (2) by not later than 30 days after the date of receipt;

“(D) a written notice that an interested party has obtained knowledge of any holding of the qualified blind trust by not later than the date that is 30 days after the date on which the Member of Congress discovered that the knowledge had been obtained; and

“(E) a written notice of dissolution of the qualified blind trust by not later than 30 days after the date of dissolution.

Ҥ 13164. Annual certification of compliance

“Not less frequently than annually, each Member of Congress shall submit to the applicable supervising ethics committee a written certification that the Member of Congress has achieved compliance with the requirements of this subchapter.

Ҥ 13165. Enforcement

“(a) In general.—The applicable supervising ethics office shall provide a written notice (including notice of the potential for civil penalties under subsection (e)) to any Member of Congress who—

“(1) fails—

“(A) to submit a certification under subsection (a)(1) or (b)(1) of section 13163 by the date on which the certification is required to be submitted;

“(B) to place 1 or more covered financial instruments owned by the Member of Congress or a spouse or dependent child of the Member of Congress in a qualified blind trust in accordance with subsection (a)(2) or (b)(2) of section 13163 by the applicable deadline, subject to any extension under subsection (a)(3) or (b)(3) of that section; or

“(C) to submit an annual certification under section 13164; or

“(2) otherwise violates this subchapter.

“(b) Hearing.—Any Member of Congress to whom a notice has been provided under subsection (a) shall be afforded an opportunity, with respect to each alleged violation that is the subject of the notice—

“(1) for a hearing; and

“(2) to achieve compliance with the requirements of this subchapter.

“(c) Disgorgement.—A Member of Congress shall disgorge to the Treasury of the United States any profit from a transaction or holding involving a covered financial instrument that is conducted in violation of this subchapter.

“(d) Fines.—

“(1) IN GENERAL.—A supervising ethics office shall impose a civil penalty, in the amount described in paragraph (2), on a Member of Congress to whom a notice is provided under subsection (a)—

“(A) on the date that is 30 days after the date of provision of the notice; and

“(B) not less frequently than once every 30 days thereafter.

“(2) AMOUNT.—The amount of each civil penalty imposed on a Member of Congress pursuant to paragraph (1) shall be equal to the monthly equivalent of the annual rate of pay payable to the Member of Congress.

Ҥ 13166. Authority of supervising ethics committees

“Each supervising ethics committee may implement and enforce the requirements of this subchapter, including by—

“(1) issuing—

“(A) for Members of Congress—

“(i) rules governing that implementation and enforcement; and

“(ii) 1 or more reasonable extensions to achieve compliance with this subchapter, if the applicable supervising ethics committee determines that a Member of Congress is making a good faith effort to divest any covered financial instruments; and

“(B) guidance relating to covered financial instruments;

“(2) publishing on a publicly available website a description of—

“(A) with respect to each civil penalty assessed by the supervising ethics committee pursuant to section 13165—

“(i) the amount of such civil penalty;

“(ii) the reasons why each civil penalty fine was assessed; and

“(iii) the result of each assessment, including any hearing under section 13165(b) relating to the assessment;

“(B) the information described in section 13163(f)(1); and

“(C) each notice, rule, and other documentation issued or received by the supervising ethics office under this subchapter; and

“(3) establish such procedures and standard forms as the supervising ethics office determines to be appropriate to implement this subchapter.

Ҥ 13167. Audit by Government Accountability Office

“Not later than 2 years after the date of enactment of the Good Government Act of 2025, the Comptroller General of the United States shall—

“(1) conduct an audit of the compliance by Members of Congress with the requirements of this subchapter; and

“(2) submit to the supervising ethics committees a report describing the results of the audit conducted under paragraph (1).”.