What This Bill Does
This bill stops the federal government from spending money at businesses owned or controlled by top government officials and their family members. It also prevents federal agencies from signing contracts with these businesses.
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Who It Affects
- The President and Vice President
- Heads of major government departments
- Government officials in Cabinet-level positions designated by the President
- Family members of these officials (spouses, children, parents, siblings, grandparents and their spouses, and domestic partners)
- Federal agencies that currently contract with these businesses
- Businesses owned or controlled by covered officials and their families
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Key Provisions
- Federal money cannot be spent to buy goods or services from any business owned or controlled by a covered government official or their family member, with one exception for spending allowed under the Presidential Protection Assistance Act of 1976 (Sec. 2(a))
- Government agencies cannot enter into or keep contracts with businesses owned or controlled by covered officials or their family members (Sec. 2(b))
- A business is considered owned or controlled by a covered official if the official is on the board of directors, owns more than 50 percent of voting shares, or is the beneficiary of a trust that owns more than 50 percent of the business and can direct how money is distributed from that trust (Sec. 2(c))
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What Changes
Starting in fiscal year 2024 and every year after, the federal government must stop using taxpayer money at businesses owned or controlled by top officials and their families. Federal agencies must also cancel contracts with these businesses.
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Important Definitions
- **Covered Individual**: The President, Vice President, heads of executive departments, or anyone the President names to a Cabinet-level position
- **Family Member**: A spouse and their parents; children and their spouses; parents and their spouses; brothers and sisters and their spouses; grandparents and grandchildren and their spouses; and domestic partners and their parents
- **Executive Agency**: Has the meaning given in section 105 of title 5, United States Code
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Effective Date
Fiscal year 2024 and each fiscal year thereafter
I
118TH CONGRESS
1ST SESSION H. R. 2524
To prevent the enrichment of certain Government officers and employees
or their families through Federal funds or contracting, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 6, 2023
Mr. RUIZ introduced the following bill; which was referred to the Committee
on Oversight and Accountability
A BILL
To prevent the enrichment of certain Government officers
and employees or their families through Federal funds
or contracting, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE; FINDINGS.
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(a) SHORT TITLE.—This Act may be cited as the
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‘‘Public Service Spending Integrity Act’’.
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(b) FINDINGS.—Congress finds the following:
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(1) Americans’ trust in government is essential
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to our democracy.
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•HR 2524 IH
(2) Allowing public service by an elected official
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to seemingly converge with their own personal gain
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is corrosive to Americans’ faith in government.
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(3) Members of Congress and the executive
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branch have substantial power and discretion over
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the disbursement of public funds, and with that
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comes the obligation to create a barrier between
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public service and personal gain.
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SEC. 2. LIMITATION ON USE OF FEDERAL FUNDS AND CON-
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TRACTING AT BUSINESSES OWNED BY CER-
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TAIN GOVERNMENT OFFICERS AND EMPLOY-
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EES.
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(a) LIMITATION ON FEDERAL FUNDS.—Beginning in
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fiscal year 2024 and in each fiscal year thereafter, no Fed-
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eral funds may be obligated or expended for purposes of
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procuring goods or services at any business owned or con-
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trolled by a covered individual or any family member of
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such an individual, unless such obligation or expenditure
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of funds is authorized under the Presidential Protection
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Assistance Act of 1976 (Public Law 94–524).
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(b) PROHIBITION
ON CONTRACTS.—No Executive
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agency may enter into or hold a contract with a business
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owned or controlled by a covered individual or any family
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member of such an individual.
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•HR 2524 IH
(c) DETERMINATION OF OWNERSHIP.—For purposes
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of this section, a business shall be deemed to be owned
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or controlled by a covered individual or any family member
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of such an individual if the covered individual or member
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of family (as the case may be)—
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(1) is a member of the board of directors or
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similar governing body of the business;
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(2) directly or indirectly owns or controls more
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than 50 percent of the voting shares of the business;
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or
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(3) is the beneficiary of a trust which owns or
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controls more than 50 percent of the business and
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can direct distributions under the terms of the trust.
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(d) DEFINITIONS.—In this section:
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(1) COVERED INDIVIDUAL.—The term ‘‘covered
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individual’’ means—
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(A) the President;
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(B) the Vice President;
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(C) the head of any Executive department
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(as that term is defined in section 101 of title
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5, United States Code); and
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(D) any individual occupying a position
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designated by the President as a Cabinet-level
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position.
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•HR 2524 IH
(2) FAMILY MEMBER.—The term ‘‘family mem-
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ber’’ means an individual with any of the following
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relationships to a covered individual:
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(A) Spouse, and parents thereof.
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(B) Sons and daughters, and spouses
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thereof.
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(C) Parents, and spouses thereof.
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(D) Brothers and sisters, and spouses
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thereof.
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(E) Grandparents and grandchildren, and
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spouses thereof.
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(F) Domestic partner and parents thereof,
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including domestic partners of any individual in
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paragraphs (2) through (5).
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(3) EXECUTIVE AGENCY.—The term ‘‘Executive
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agency’’ has the meaning given that term in section
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105 of title 5, United States Code.
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Æ
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