Big Companies Face Mandatory Slavery Ties Audit: $20K Daily Fines Fund Housing and Minority Programs

The new Original Securities and Exchange Atonement Act of 2025 is shaking up corporate compliance by demanding that large companies do a deep dive into their past. The core of this bill is simple: it mandates regular, independent audits for major corporations to check their current racial equity policies and, more controversially, investigate any historical ties to or profit from the institution of slavery.

The Corporate History Check-Up

If your company is a “covered issuer”—meaning it has either over 100 employees or a market value exceeding $300 million—you’re on the hook. This isn't a one-time thing; you must conduct a "Racial Equity Audit" within six months of the law passing, and then repeat it every two years. This audit must scrutinize your current policies on civil rights, equity, and inclusion, and how those policies play out in the real world. The most complex part is the mandate to determine if the company, or any predecessor or affiliate, ever profited from slavery.

If the audit uncovers those historical ties, the company must report to the SEC exactly what steps have been taken to "reconcile" those ties. If nothing has been done, the company must detail a plan of action. These reconciliation steps aren't just vague promises; the bill points toward concrete actions like setting up startup capital and funded savings programs for low-to-moderate income individuals in affected communities, or making grants to Historically Black Colleges and Universities (HBCUs). This entire report, including any findings on slavery ties and reconciliation plans, must be made public on the company’s website and the SEC’s site.

Where the Fines Hit—and Where the Money Goes

This isn't just a slap on the wrist if you skip the paperwork. Covered issuers who fail to submit the required report, or submit false information, face a staggering penalty of $20,000 per day until the issue is corrected. For officers and employees who intentionally submit false data or fail to report, the personal fine is $2,000 per day. This introduces a significant personal risk for corporate leadership, a detail that will certainly make compliance a top priority in boardrooms.

The money collected from these hefty fines is earmarked to fund two specific initiatives. Fifty percent goes to a brand-new office within the Treasury Department: the Office of Minority Low to Moderate Income Programs. This office is designed to issue grants for startup capital and savings programs aimed at low-to-moderate income minority individuals. The other 50% is funneled to the Department of Housing and Urban Development (HUD) to boost housing and renter assistance programs, including down payment assistance for first-generation minority homebuyers and support for the Housing Choice Voucher Program.

New Power for Shareholders and Whistleblowers

Beyond the corporate fines, the bill gives shareholders a new tool: the right to sue the company in federal court if they are harmed because the company failed to file the required report. Think of it as a new regulatory hook for shareholder litigation. Furthermore, the SEC is required to pay whistleblowers who provide original information leading to a successful fine against a company. These awards must be at least $20,000, incentivizing employees or industry insiders to report non-compliance.

For the average person, this bill creates a direct (if complex) link between corporate accountability and community funding. If you live in a low-to-moderate income community, the fines levied against non-compliant corporations could directly fund your local housing assistance or provide startup capital for a neighbor’s small business. While the compliance costs for big companies will be significant—and those costs often get passed down—the bill attempts to channel those regulatory burdens into specific, targeted economic and housing relief for minority communities.