S. 3201: Good Government Act of 2025

This bill, titled the Good Government Act of 2025, aims to regulate the financial transactions of members of Congress, focusing on preventing conflicts of interest. The key provisions include:

Prohibition on Financial Transactions

Members of Congress, as well as their spouses and dependent children, are prohibited from:

• Holding, purchasing, or selling any "covered financial instruments" during their term of service.

Definition of Covered Financial Instruments

The term "covered financial instruments" refers to various types of financial assets, including:

• Securities
• Securities futures
• Commodities
• Derivatives such as options and warrants

However, certain investments are excluded from this category, such as diversified mutual funds, exchange-traded funds, U.S. Treasury bonds, and certain retirement plans.

Blind Trusts Requirement

Members of Congress must either:

• Divest any covered financial instruments they or their family members own
• Place these instruments into a "qualified blind trust" that meets specific legal criteria.

This action must be completed within a specified timeline:

• 30 days after the bill's enactment, Congress members need to report their compliance to the supervising ethics office.
• 120 days following the bill's enactment, they must either divest or put covered financial instruments in blind trusts.

Reporting and Compliance

Members of Congress are required to submit annual certifications confirming compliance with the bill's provisions. This includes:

• Submitting certification for initial compliance.
• Providing details of assets placed into blind trusts.

Enforcement and Penalties

The bill outlines mechanisms for enforcement by ethics committees, which include:

• Written notifications for non-compliance.
• Potential civil penalties for violations, equating to the monthly salary of the Congress member.
• Disgorgement of profits for any gains made from violating the bill.

Cooling-Off Period

Members of Congress must not control their assets for 180 days after leaving office, further ensuring that decisions made during their term do not influence personal financial benefits post-service.

Oversight and Auditing

The Government Accountability Office (GAO) is tasked with auditing compliance with the new regulations within two years of the bill’s enactment and reporting findings to ethics committees.

Relevant Companies

• None found