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Former Federal Officials: New Rules on Foreign Investments and Management Roles

New rules aim to prevent unfair practices by former federal officials. They prohibit ex-officials from investing in or holding managerial roles in companies with significant foreign ownership, especially if these connections arose from discussions held during their public service. This measure seeks to enhance public trust and protect public interests from potential conflicts of interest.
Key points
Former federal officials are prohibited for 4 years from investing in or managing companies with significant foreign ownership if their contact with these entities occurred during government service.
The ban applies to investments exceeding $25,000 or 1% of the business entity's value, whichever is greater.
Exceptions exist for investments in employer-sponsored retirement plans or trusts where the former official has no control over investment decisions.
Individuals subject to the ban must divest their investments or terminate their managerial role within 120 days of discovering the foreign principal's substantial investment.
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Additional Information
Print number: 118_HR_10470
Sponsor: Rep. Beyer, Donald S. [D-VA-8]
Process start date: 2024-12-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

PAID Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_10470.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-12-18.

What are the main provisions?

Key points include:

  • Former federal officials are prohibited for 4 years from investing in or managing companies with significant foreign ownership if their contact with these entities occurred during government service.
  • The ban applies to investments exceeding $25,000 or 1% of the business entity's value, whichever is greater.
  • Exceptions exist for investments in employer-sponsored retirement plans or trusts where the former official has no control over investment decisions.
  • Individuals subject to the ban must divest their investments or terminate their managerial role within 120 days of discovering the foreign principal's substantial investment.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Beyer, Donald S. [D-VA-8].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on the Judiciary.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-24.

CATEGORIES

Courts and Law Economy