New Bill: Representative Zachary Nunn introduces H.R. 358: No Corruption in Government Act

We have received text from H.R. 358: No Corruption in Government Act. This bill was received on 2025-01-13, and currently has 2 cosponsors.

Here is a short summary of the bill:

This bill, titled the

No Corruption in Government Act

, aims to make several significant changes regarding the conduct of Members of Congress, their financial transactions, post-employment lobbying restrictions, and how their compensation is adjusted. Below are the main provisions of the bill, summarized in layman's terms:

1. Prohibition of Insider Trading

The bill includes a section that specifically prohibits Members of Congress and their spouses from buying, selling, or holding certain financial instruments, referred to as "covered financial instruments," during their time in office. This is meant to prevent any potential insider trading, ensuring that these officials cannot profit from non-public information related to their legislative duties.

• 
  **Covered Financial Instruments:** Includes stocks, security futures, commodities, and derivatives.
  


• 
  **Exceptions:** Members can still invest in diversified mutual funds and government securities, but individual transactions are restricted.
  

If a violation occurs, the bill mandates that any profits gained must be returned to the U.S. Treasury, and Members cannot claim losses from such transactions as tax deductions.

2. Increased Length of Post-Employment Lobbying Ban

The bill extends the duration during which former Members of Congress are prohibited from lobbying after leaving office:

• 
  Former Senators will face a **6-year** ban from lobbying.
  


• 
  Former House Members will face a **3-year** ban.
  


• 
  Clear penalties are established for those who violate this ban, ensuring stricter enforcement of these restrictions.
  

3. Elimination of Automatic Pay Increases

This section repeals the automatic adjustments to the salaries of Members of Congress, known as Cost of Living Adjustments (COLAs). This means that their pay will no longer automatically increase each year, and any pay raises must be enacted through new legislation.

4. Compliance Certification and Audits

To ensure adherence to the new rules, the bill requires Members of Congress to certify their compliance with the financial transaction prohibitions and other restrictions. These certifications will be published publicly, and periodic audits will be conducted by a supervising ethics office to review compliance.

5. Effective Dates

The provisions set forth in this bill are designed to take effect in stages, aligning with the session of Congress in which it is enacted. This ensures Members of Congress have clear guidelines for adherence beginning with upcoming terms.

Relevant Companies

• 
  None found
  

This article is not financial advice. See Quiver Quantitative's disclaimers for more information.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.