Bill > S1365

This bill prohibits federal executive agencies from awarding contracts, grants, or making payments to companies where a special government employee (a part-time or temporary government worker with specific legal definitions) is a beneficial owner of at least 5% of the company's equity securities. The prohibition applies to any company where such an employee was a special government employee on or after January 1, 2025, unless that individual immediately stops being a special government employee and remains separated from such status for 365 days after the Act's enactment. The bill broadly defines "company" to include corporations, limited liability companies, partnerships, business trusts, and similar business associations. Key terms are precisely defined, drawing from existing federal regulations, including specific references to the Securities Exchange Act and federal statutes. The bill aims to prevent potential conflicts of interest by restricting federal payments to businesses with significant ownership by part-time government employees, thereby enhancing government procurement integrity and reducing the risk of improper financial relationships between government workers and businesses.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/senate-bill/1365/all-info