Government Accountability Bill

At a Glance

  • Limits Congress members to 12 years in either chamber
  • Bans members and their families from trading individual stocks
  • Extends the lobbying cooling-off period to five years for former members
  • Requires quarterly public disclosure of all financial transactions
  • Violations trigger disgorgement of profits and criminal referral
Government Accountability Bill

Public trust in Congress has fallen to historic lows. Americans consistently rate it among the least respected institutions in the country—not because of policy disagreements but because they believe members serve their own interests rather than those of constituents. Three interconnected problems fuel this perception: the absence of term limits that has created a permanent political class, the ability of members to trade stocks in companies affected by their legislation, and a revolving door that allows former lawmakers to cash in by lobbying their former colleagues.

The Founders envisioned citizen legislators who would serve temporarily and return home to live under the laws they passed. Today, career politicians spend decades in office, accumulating power and becoming disconnected from the communities they represent. Without term limits, incumbents enjoy overwhelming advantages that make competitive elections rare and accountability nearly impossible.

Meanwhile, members trade millions in stocks while accessing nonpublic information that would constitute insider trading for ordinary citizens. The STOCK Act of 2012[1] was supposed to address this, but its $200 penalty for violations is meaningless and no member has ever been prosecuted[2]. Suspiciously timed trades continue making headlines—members selling before crashes, buying before favorable legislation, and consistently outperforming hedge fund managers. The public reasonably concludes the game is rigged.

The revolving door compounds these problems. Hundreds of former members now work as lobbyists, using relationships and access to influence former colleagues. The prospect of lucrative post-congressional careers incentivizes sitting members to curry favor with industries they may soon represent.

This legislation establishes term limits of twelve years for both chambers, prohibits members and immediate families from trading individual stocks, and extends cooling-off periods while closing loopholes that allow former members to influence legislation without registering as lobbyists. Together, these provisions restore the principle that public service is a temporary duty for constituents' benefit, not a career path for personal enrichment.

Problems the Bill Aims to Solve

Career Politicians Have Replaced Citizen Legislators. Congress has become dominated by career politicians who spend decades in office, losing touch with ordinary Americans. Without term limits, incumbents enjoy overwhelming advantages in fundraising and name recognition, making competitive elections the exception. Members focus on perpetuating careers rather than solving problems, while the same faces occupy powerful positions year after year as the country's challenges go unaddressed.

Members Trade Stocks While Making Laws That Affect Those Stocks. Elected officials access nonpublic information about pending legislation and economic conditions, yet continue trading stocks in companies their work directly affects. The STOCK Act's $200 penalty[1] is meaningless and no member has been prosecuted[2]. The public watches representatives make well-timed trades and outperform market benchmarks, concluding that those who write the rules are exempt from following them.

The Revolving Door Corrupts the Legislative Process. Hundreds of former members work as lobbyists, selling relationships and insider knowledge. The prospect of lucrative post-congressional careers creates incentives for sitting members to favor industries they may soon represent. Current cooling-off periods are too short and full of loopholes allowing former members to influence legislation as "strategic consultants" without registering as lobbyists.

Concentrated Power Enables Corruption and Stifles Reform. Long-tenured members accumulate disproportionate power through chairmanships and seniority, creating opportunities for corruption while insulating them from accountability. The same members who benefit from the current system control whether reforms ever receive a vote. Newer members with fresh ideas are marginalized while career politicians dominate.

Public Trust Has Collapsed. Americans overwhelmingly believe members prioritize personal enrichment over constituent needs. This perception has driven trust in Congress to historic lows. When citizens believe their representatives are corrupt, they disengage from civic life and lose faith in democratic institutions. Restoring legitimacy requires structural reforms that make self-dealing difficult and accountability certain.

Government Accountability Act

120th Congress, 2nd Session

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Sec. 1. SHORT TITLE.

This Act may be cited as the "Government Accountability Act."

Sec. 2. DEFINITIONS.

For purposes of this Act—

  1. (1) MEMBER.—The term "Member" means a Member of the Senate or a Member of the House of Representatives, including a Delegate or the Resident Commissioner from Puerto Rico.
  2. (2) COVERED INDIVIDUAL.—The term "covered individual" means—
    1. (a) any Member;
    2. (b) the spouse of a Member; and
    3. (c) any dependent child of a Member.
  3. (3) COVERED INVESTMENT.—The term "covered investment" means any investment in a security, commodity, future, or other financial instrument, but does not include—
    1. (a) widely held investment funds such as mutual funds and exchange-traded funds that track a broad market index;
    2. (b) United States Treasury securities;
    3. (c) municipal bonds; or
    4. (d) interests in Federal retirement plans, including the Thrift Savings Plan.
  4. (4) LOBBYING ACTIVITY.—The term "lobbying activity" has the meaning given that term in section 3 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1602), and shall additionally include any strategic advisory, consulting, or other activity in which a person leverages government relationships or non-public knowledge gained through Federal service to influence government action on behalf of a client.

Sec. 3. CONGRESSIONAL TERM LIMITS.

  1. (1) JOINT RESOLUTION.—There is hereby proposed an amendment to the Constitution of the United States:

"No person who has served six full terms as a Representative in Congress shall be eligible for election or appointment to the House of Representatives. No person who has served two full terms as a Senator shall be eligible for election or appointment to the Senate. Service for more than one half of a term to which another person was elected shall count as one full term. Terms of service that commenced before the date of ratification of this Article shall be counted."

  1. (2) SUBMISSION TO STATES.—The joint resolution shall be submitted to the States for ratification by the legislatures thereof within seven years.

Sec. 4. PROHIBITION ON INDIVIDUAL SECURITIES TRADING.

  1. (1) PROHIBITION.—No covered individual may purchase, sell, or enter into any transaction involving a covered investment during any period in which the Member holds office.
  2. (2) DIVESTITURE.—Each covered individual holding a covered investment on the date of enactment, or the date on which a Member takes office, shall divest or transfer such investment to a qualified blind trust not later than one hundred eighty days after such date.
  3. (3) PERMITTED TRANSACTIONS.—The prohibition shall not apply to—
    1. (a) sales for the purpose of complying with the divestiture requirement;
    2. (b) transactions within a qualified blind trust directed by an independent trustee; and
    3. (c) exercise of employee stock options received before taking office, provided resulting securities are divested within thirty days.

Sec. 5. DISCLOSURE AND REPORTING.

  1. (1) Each Member shall file with the appropriate ethics committee a quarterly report listing all financial transactions by any covered individual within thirty days of each calendar quarter.
  2. (2) All reports shall be made publicly available in a searchable, machine-readable electronic database within seven days of filing.

Sec. 6. EXTENDED LOBBYING COOLING-OFF PERIOD.

  1. (1) MEMBERS.—The cooling-off period for former Members shall be five years.
  2. (2) SENIOR CONGRESSIONAL STAFF.—The cooling-off period for senior congressional staff compensated at seventy-five percent or more of a Member's salary shall be three years.
  3. (3) SCOPE.—The cooling-off restrictions shall apply to lobbying activity, strategic consulting on behalf of clients seeking to influence legislative or executive action, and employment by registered lobbying firms in a client-facing capacity.
  4. (4) ANTI-EVASION.—No former Member or senior staff member may circumvent these restrictions by providing lobbying services under any alternative title or designation.

Sec. 7. PENALTIES AND ENFORCEMENT.

  1. (1) SECURITIES TRADING VIOLATIONS.—Any covered individual who violates Section 4 shall be subject to disgorgement of all profits, a civil penalty equal to the greater of fifty thousand dollars or the profit gained, and referral to the Department of Justice for criminal prosecution where material non-public information was used.
  2. (2) DISCLOSURE VIOLATIONS.—Any Member who fails to file a required report shall be subject to a fine of five hundred dollars per day of delinquency, not payable from official or campaign funds.
  3. (3) LOBBYING VIOLATIONS.—Any person who violates Section 6 shall be subject to a civil penalty of not more than two hundred thousand dollars per violation and criminal prosecution under section 207 of title 18, United States Code.

Sec. 8. EFFECTIVE DATE.

  1. (1) Sections 4 through 7 shall take effect ninety days after enactment.
  2. (2) Section 3 shall take effect upon enactment and shall be transmitted to the States for ratification.

Sources

  1. Stop Trading on Congressional Knowledge Act, Public Law 112-105 (2012). https://www.congress.gov/112/plaws/publ105/PLAW-112publ105.htm
  2. Congressional Research Service, "Proposals to Limit Financial Activities of Members of Congress," Report R47818. https://www.congress.gov/crs-product/R47818