Restoring Faith Act

Summary#

This bill would add a new section to title 5 that stops Members of Congress, their spouses, and dependents from owning or trading most securities, security futures, commodities, or similar economic interests (including derivatives such as options and warrants). It defines the banned "covered financial instruments" and the covered people, and it lists a few exceptions: widely held registered investment funds, U.S. Treasury bills/notes/bonds, state or local government bonds, and the Thrift Savings Plan.

Covered individuals must divest prohibited assets by sale or place them in a qualified blind trust approved by the supervising ethics office. People who hold such assets when the law takes effect, or who become covered later, generally have 90 days to divest. A trustee of an approved blind trust must divest assets in the trust within 6 months, certify annually that it has not shared information about the trust with the covered individual, and may not have a close personal or business relationship with the covered individual. There is a special rule that limits when a spouse must divest assets received as compensation for their primary employment.

The bill says a loss from a transaction or holding involving a covered financial instrument that violates the rule may not be deducted on the covered individual’s federal income tax return. Members must submit a pledge of compliance and provide information on request to the supervising ethics office. That office will issue and publish certificates of compliance. The office must refer names of people it reasonably believes willfully failed to comply to the Attorney General. The Attorney General may bring a civil action and a court may assess a civil penalty up to $50,000. The bill also bars paying such penalties with certain official office funds or political committee funds.

The bill amends the tax code (section 1043) so the new subchapter is treated as a federal conflict-of-interest statute for purposes of tax rules that apply when people sell property to comply with conflict rules.

What it means for you#

• Who is covered: Members of Congress, their spouses, and their dependents, as defined in existing ethics rules.
• What they must do: Divest covered financial instruments within 90 days or place them in an approved qualified blind trust. Trustees must divest trust assets within 6 months and must not share trust asset details with the covered person.
• Allowed holdings: widely held registered investment funds, U.S. Treasury securities, state or local bonds, and the Thrift Savings Plan are allowed.
• Reporting and public records: Members must pledge compliance; the supervising ethics office issues and posts certificates of compliance publicly.
• Enforcement: The supervising ethics office can refer suspected willful violations to the Attorney General; courts may impose civil penalties up to $50,000; those penalties cannot be paid with certain official office funds or political committee funds.
• Legislative status and sponsors: The measure was introduced on January 9, 2025, and was referred to the House Administration Committee and the Ways and Means Committee. Sponsors include Representatives Brian Fitzpatrick and Alexandria Ocasio-Cortez, among others.

Expenses#

• No publicly available information on federal budgetary costs or savings in the bill text or metadata.
• The bill allows courts to assess civil penalties against covered individuals of up to $50,000.
• The bill disallows deduction of losses from transactions that violate the prohibition, which could affect a covered individual’s taxable income in specific cases.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.