West NY News

WASHINGTON, D.C. – This week, Congressman Nick Langworthy (NY-23) introduced H.R. 4222, the Halting Ownership of Non-Ethical Securities and Trusts (HONEST) Act to ensure that officials at the highest levels of the federal government cannot profit through ownership of stocks and other securities that they have regulatory control over. This legislation is co-led by Congressman Derek Kilmer (WA-06).

“Executive officials should be putting the needs of the American people first, not their investment portfolios,” said Rep. Langworthy. “When their personal financial interests are intertwined with the industries they regulate, it creates a conflict of interest that exploits trust in our government institutions. The bipartisan HONEST Act will provide greater transparency and safeguard public interest by establishing clear guidelines that prioritize the American people.”

 “Public trust is a cornerstone of our democracy, and the American people deserve to have confidence in the impartiality and integrity of their government leaders. That means officials should be free from financial ties that could potentially undermine their decision-making process,” said Rep. Kilmer. “The HONEST Act represents a significant stride in ensuring that federal officials act with the public's best interest at heart – not their own financial gain. This is about more than preventing conflicts of interest. It's about preserving the faith that Americans place in their government and maintaining the integrity of our democratic institutions.”

 Specifically, the HONEST ACT would:

• Prohibit senior executive branch officials from ownership of financial interests in corporations, businesses, partnerships, or any other for-profit entities that are substantially regulated by the agency at which they work. This includes any businesses, corporations, or partnerships connected to a major contractor of the agency, or an organization that has significant lobbying contacts with the agency.
• Cover government officials who occupy a position classified above GS-15 on the General Schedule, those not under the General Schedule whose basic rate of pay is above 120% of the minimum for a GS-15, and uniformed officials whose pay is at or above the O-7 level.
• Provide commonsense exceptions for interests held through a diversified fund or a qualified blind trust. 

Full text of the bill can be found here.

The HONEST Act has received support from various government watchdog agencies, including the Project on Government Oversight, the Bull Moose Project, and Citizens for Responsibility and Ethics in Washington.

“Conflicts of interest and the potential corruption that goes with those conflicts undermine public trust in government,” said Dylan Hedtler-Gaudette, Senior Government Affairs Manager at the Project on Government Oversight. “Recent reporting from the Wall Street Journal highlighted that these kinds of problems are not theoretical; executive agency officials currently trade in financial assets that, at minimum, look like conflicts of interest and, at worst, could indicate real corruption. Rep. Langworthy and Rep. Kilmer are demonstrating true leadership by introducing the HONEST Act, a bill that would address this issue through directing federal agencies to create rules to proactively prevent conflicts of interest before they happen. POGO is proud to enthusiastically endorse the HONEST Act and we hope the bill will become law in short order.”

 "Employees of the Executive branch can be incredibly influential to U.S. policy and should not be able to personally benefit from their position in government,” said the Bull Moose Project. “Public servants should always act in the public's best interest, not in their own. We applaud the Congressman for this legislation and hope to see Members come together in support of government transparency.”

"High-level executive branch officials routinely make policy that has a real and lasting impact on our daily lives, from passing and enforcing rules reigning in big banks' ability to charge overdraft fees, to restricting the flow of corrupt or dirty money into our communities, to taking dangerous drugs off the market. It's crucial to the proper functioning of our government that these public servants are making these critical decisions based on the public's interest, rather than their own financial interest," said Noah Bookbinder, President of Citizens for Responsibility and Ethics in Washington. "The HONEST Act would help ensure the integrity of executive branch policymaking by banning these high-level officials from owning stock in companies they regulate or to which they appropriate taxpayer dollars. CREW enthusiastically endorses this important legislation and applauds Rep. Langworthy and Sen. Warren for their commitment to ensuring that our government works for the people rather than opaque special interests."

Original source can be found here.