"No Corruption in Government Act": Congress Bans Insider Trading, Extends Lobbying Ban, and Kills Automatic Pay Raises

The "No Corruption in Government Act" is a serious attempt to clean up Congress by tackling insider trading, lobbying, and automatic pay raises. Here’s the breakdown:

Curbing Corruption

This bill directly prohibits members of Congress and their spouses from trading individual stocks and other similar financial instruments. (SEC. 102). Think of it like this: no more playing the stock market with insider knowledge gained from committee meetings. They can still invest in diversified mutual funds or ETFs, but individual stocks are off-limits. This is a big deal because it directly addresses the public perception that lawmakers can profit from their positions.

• Real-World Impact: Imagine a Senator learning about a new regulation that will hurt a specific company. Under this law, neither they nor their spouse could sell that company's stock before the information becomes public. This helps level the playing field for regular investors.

• Enforcement: Members have to certify in writing that they and their spouses are complying, and those certifications will be posted online (SEC. 102). Plus, there are mandatory audits every two years (SEC. 102). There are also financial penalties. Members and their spouses will have to forfeit any profits to the Treasury's general fund and they can't deduct losses from their income tax. (SEC. 102).

Lobbying Lockout

The bill also extends the "cooling off" period before former members of Congress can become lobbyists. (SEC. 202) Currently, there are some restrictions, but this ramps them up significantly:

• Senators: Banned from lobbying Congress for 6 years after leaving office (up from 2 years).

• House Members: Banned from lobbying Congress for 3 years.

• House Officers: Banned for 1 year from lobbying just the House.

• Real-World Impact: This means a Representative who leaves office can't immediately turn around and use their connections to influence their former colleagues on behalf of special interests. It slows down the "revolving door" between Congress and K Street.

Pay Raise Freeze

Finally, the bill eliminates automatic pay raises for members of Congress (SEC. 301). These raises have been a point of contention for years, with many people feeling they're unfair, especially when the economy is struggling. This provision means Congress will have to vote on any future pay increases, making them more accountable for those decisions.

• Real-World Impact: This is straightforward. No more automatic bumps in Congressional salaries. If they want a raise, they have to go on the record and justify it. This makes the process much more transparent.

The Bottom Line

This bill aims to restore some trust in government by directly addressing practices that many people see as corrupt or unfair. While enforcement will be key, the "No Corruption in Government Act" sends a clear message that Congress is serious about cleaning up its act.