No Shorting America Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4036 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4036

  To amend title 5, United States Code, to prohibit the short sale of 
certain financial investments by Members of Congress and their spouses 
                and dependents, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 17, 2025

  Mr. Kean (for himself and Ms. Craig) introduced the following bill; 
      which was referred to the Committee on House Administration

_______________________________________________________________________

                                 A BILL


 
  To amend title 5, United States Code, to prohibit the short sale of 
certain financial investments by Members of Congress and their spouses 
                and dependents, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Shorting America Act''.

SEC. 2. PROHIBITION OF CONGRESSIONAL SHORT SELLING OF FINANCIAL 
              INVESTMENTS.

    Chapter 131 of title 5, United States Code, is amended by adding at 
the end the following (and by conforming the table of contents for such 
chapter accordingly):

      ``SUBCHAPTER IV--PROHIBITION ON CONGRESSIONAL SHORT SELLING

``Sec. 13151. Definitions
    ``In this subchapter:
            ``(1) Covered financial instrument.--The term `covered 
        financial instrument' means--
                    ``(A) any investment in--
                            ``(i) a security (as defined in section 
                        3(a) of the Securities Exchange Act of 1934 (15 
                        U.S.C. 78c(a)));
                            ``(ii) a security future (as defined in 
                        section 3(a) of the Securities Exchange Act of 
                        1934 (15 U.S.C. 78c(a))); or
                            ``(iii) a commodity (as defined in section 
                        1a of the Commodity Exchange Act (7 U.S.C. 
                        1a)); and
                    ``(B) any economic interest comparable to an 
                interest described in subclause (I) that is acquired 
                through synthetic means, such as the use of a 
                derivative, including an option, warrant, or other 
                similar means.
            ``(2) Covered individual.--The term `covered individual' 
        means any of the following:
                    ``(A) A Member of Congress.
                    ``(B) The spouse of a Member of Congress.
                    ``(C) The dependent of a Member of Congress.
            ``(3) Dependent.--The term `dependent' has the meaning 
        given that term in section 13101.
            ``(4) Member of congress.--The term `Member of Congress' 
        has the meaning given that term in section 13101.
            ``(5) Short sale.--The term `short sale' has the meaning 
        given that term in section 242.200 of title 17, Code of Federal 
        Regulations (or any successor regulation).
            ``(6) Supervising ethics office.--The term `supervising 
        ethics office' has the meaning given that term in section 
        13101.
``Sec. 13152. Limitation on short sale
    ``(a) In General.--No covered individual may engage in a short sale 
of any covered financial instrument issued by any business entity that 
is listed on a national stock exchange.
    ``(b) Income Tax.--A loss from a short sale involving a covered 
financial instrument that is conducted in violation of this section may 
not be deducted from the amount of income tax owed by the covered 
individual.
    ``(c) Proof of Compliance.--
            ``(1) Submission.--A Member of Congress shall submit to the 
        supervising ethics office a pledge of compliance with the 
        requirements of this subchapter, and shall produce, upon 
        request of the supervising ethics office, material or 
        information determined by the supervising ethics committee to 
        be necessary to indicate compliance with the provisions of this 
        subchapter.
            ``(2) Certificate.--The supervising ethics office shall 
        provide each Member of Congress in compliance with the 
        provisions of this chapter with a certificate of compliance.
            ``(3) Publication.--The supervising ethics office shall 
        make available, on a publicly accessible website, all 
        certificates issued under this subsection.
``Sec. 13153. Enforcement
    ``(a) Referral.--The supervising ethics office shall refer to the 
Attorney General the name of any covered individual who such office has 
reasonable cause to believe has willfully failed to comply with the 
requirements of section 13152.
    ``(b) Penalty.--
            ``(1) In general.--The Attorney General may bring a civil 
        action in any appropriate United States district court against 
        any covered individual who knowingly and willfully fails to 
        comply with section 13152. The court in which such action is 
        brought may assess against such individual a civil penalty in 
        any amount, not to exceed $50,000.
            ``(2) Limitation.--A covered individual may not pay any 
        penalty resulting from a civil action under paragraph (1) 
        using--
                    ``(A) funds from a Members' Representational 
                Allowance or Senators' Official Personnel and Office 
                Expense Account (as the case may be); or
                    ``(B) funds of any political committee under the 
                Federal Election Campaign Act of 1971 (52 U.S.C. 30101 
                et seq.).''.
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