The TRUST in Congress Act mandates that members of Congress, their spouses, and dependent children place covered investments into a qualified blind trust, ensuring transparency and preventing conflicts of interest, with certain exceptions and public disclosure requirements.
Seth Magaziner
Representative
RI-2
The TRUST in Congress Act mandates that members of Congress, their spouses, and dependent children place covered investments, such as securities and commodities, into qualified blind trusts within a specified timeframe. These trusts must remain in place until 180 days after the member leaves office, ensuring that investment decisions are made without the member's knowledge or influence. Members must certify their compliance or declare the absence of covered investments, with these certifications being made public. An exception is provided for spouses or dependent children whose primary income is derived from a covered investment.
TRUST in Congress Act: Lawmakers' Investments to Go Into Blind Trusts Within 180 Days, But With a Few Big Exceptions
The TRUST in Congress Act is basically saying that Congress members, their spouses, and dependent kids have to put certain investments—like individual stocks and bonds—into what's called a "qualified blind trust." This is supposed to prevent them from making decisions in Congress that would benefit their own wallets.
Setting Up the Blind Trusts
The idea is simple: keep lawmakers from using their inside info for personal gain. Once this bill becomes law, current members get 180 days to set up these trusts. Newbies? They've got 90 days after taking office. And it's not just the members themselves—spouses and dependent children are included, too, unless their main job involves those investments (that's a key exception we'll get back to). Think of a Senator whose spouse is a day trader; that spouse's trading activity wouldn't have to go into the blind trust. (Section 2).
Once the trust is set up, it's locked down until 180 days after the Congress member leaves office. They have to formally certify to the Clerk of the House or Secretary of the Senate that they've done this, and that certification becomes public info. (Section 2).
Real-World Radar: Who Benefits, Who Pays?
On paper, this boosts transparency and public trust. No more (obvious) trading on insider knowledge, right? But here's where it gets a bit murky. The bill doesn't cover widely held investment funds (like most mutual funds or ETFs) or U.S. Treasury securities. So, a member could, in theory, shift their portfolio around to these exempted investments and avoid the blind trust altogether. (Section 2).
Also, that exception for spouses and dependent children? It makes sense on the surface—you don't want to disrupt someone's legitimate career. But it could be a loophole. Imagine a scenario where a family member's compensation is structured in a way that technically involves a "covered investment," even if their main job isn't, say, being a financial advisor. That's a gray area that could be exploited. (Section 2).
The Bottom Line
While the TRUST in Congress Act sounds good, its real-world impact is a bit of a question mark. It's definitely a step toward more ethical governance, but those exceptions and exclusions could limit its bite. Will it actually prevent conflicts of interest, or just make them harder to spot? That remains to be seen, and the devil is, as always, in the details—and the enforcement.