House hearing explores tougher disclosure rules, fines tied to profit in Restore Trust in Congress Act

A member of Congress pressed witnesses at a House Administration Committee hearing on proposals to strengthen financial-disclosure rules for lawmakers, saying "Americans' trust in Congress is at a 5 decade low." The member directly addressed "Mr. Copeland" and asked what changes would deter insider-style trading by members.

One witness said current disclosure thresholds—"$1,000" and a "45 days" reporting window—are "reasonable," but added that requiring pre-disclosure or pre-clearance to an ethics office could be a "better prophylactic" to flag potentially problematic trades in advance. The witness stressed exceptions may be necessary in "closely held" family situations such as farms or family businesses where divestment is difficult.

A second witness said the group they represent endorses the Restore Trust in Congress Act and described its penalty scheme: "The bill we've endorsed, the Restore Trust in Congress Act, would change the fine to the greater of 2 amounts, either $1,000 or the amount of profit made or loss avoided based on the trade that's in violation." The witness added they were open to considering percentage-based penalties in future proposals but did not offer specific percentage figures.

On handling inherited assets, a witness explained that publicly traded securities are generally simple to divest because the capital gains basis typically steps up on inheritance, while closely held assets such as farms or private businesses present disposal complications and may require special allowances or time windows to comply with any new rule.

The hearing did not produce formal votes or regulatory changes; the member concluded by thanking the chairman and yielding back. Committee consideration, bill text review and further drafting were discussed as next steps by witnesses and members during the exchange.