H.R. 2894: SGE Ethics Enforcement Reform Act of 2025

The SGE Ethics Enforcement Reform Act of 2025 aims to enhance transparency and accountability for special Government employees (SGEs) while addressing conflict of interest issues. Here’s an overview of what the bill proposes:

Definition and Role of Special Government Employees

The bill modifies the definition of special Government employees to include those designated as such on official personnel forms. It identifies concerns about financial conflicts of interest that arise when SGEs engage in outside business activities while serving the Federal Government.

Conflict of Interest Regulations

• Amends existing laws to ensure that SGEs are subject to the same conflict-of-interest rules as full-time Government employees. This change aims to prevent conflicts where SGEs might hold business interests that could influence their governmental duties.
• Requires SGEs not involved in advisory committees or those serving as chair or vice chair to disclose potential financial interests related to matters they oversee.

Public Disclosure Requirements

To promote transparency, the bill mandates:

• Public access to waivers or exemptions from conflict-of-interest rules issued for SGEs, to be made available in a searchable online database.
• A comprehensive database maintained by the Director of the Office of Government Ethics to track SGEs, including their designation, length of service, and reasons for their status as SGEs.

Restrictions on Communications with Large Companies

The bill introduces restrictions on SGEs who are not affiliated with advisory committees, preventing them from engaging with Federal agencies that operate in connection with large companies. This applies particularly:

• If the SGE has ownership in the company.
• Or if the SGE serves as a senior executive or director at the company.

Financial Disclosure Obligations

It establishes clearer financial disclosure requirements for SGEs:

• Mandates that SGEs who are likely to have significant influences on Government decisions disclose their financial interests unless they meet specific exemption criteria.
• Prevents the disclosure exemption for SGEs at lower general schedule levels, where oversight is minimal.

Alignment in Ethical Standards

The bill aligns ethical standards for SGEs with full-time employees, particularly for those who have served more than 60 days in a given year. This requires them to adhere to the same ethical conduct as regular employees after serving for a longer period, enhancing accountability.

Database and Online Access Enhancements

Changes to online access protocols for financial disclosures will ensure better tracking of special Government employees, promoting transparency and accountability in their financial dealings.

Overall Intent

The overall intent of the bill is to strengthen ethical oversight of those serving as special Government employees to help mitigate potential conflicts of interest, promote public trust, and ensure that their roles and responsibilities are clearly defined and transparently communicated.

Relevant Companies

None found