I 

118TH CONGRESS 

2D SESSION H. R. 9405 

To prohibit Members of Congress from conducting certain financial transactions involving a foreign adversary of the United States, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 23, 2024 

Mr. KEAN of New Jersey (for himself and Ms. SCHOLTEN) introduced the following bill; which was referred to the Committee on Financial Services, 

and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of 

such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prohibit Members of Congress from conducting certain 

financial transactions involving a foreign adversary of 

the United States, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Foreign Adversary In5 vestment Prohibition Act’’. 


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1 SEC. 2. PROHIBITION WITH RESPECT TO CERTAIN TRANS2 ACTIONS BY MEMBERS OF CONGRESS WITH A 

3 FOREIGN ADVERSARY. 

4 (a) IN GENERAL.—A Member of Congress may not, 

5 during the term of service of the Member of Congress, 

6 conduct any covered financial transaction that benefits, di7 rectly or indirectly, a foreign adversary or an entity owned 

8 or operated by a foreign adversary. 

9 (b) CIVIL ENFORCEMENT.— 

10 (1) IN GENERAL.—The Attorney General may 

11 bring a civil action in an appropriate district court 

12 of the United States against any person who vio13 lates, or whom the Attorney General has reason to 

14 believe is engaging in conduct that violates, sub15 section (a). 

16 (2) CIVIL PENALTY.—If the court finds by a 

17 preponderance of the evidence that a person violated 

18 subsection (a), the court shall impose a civil penalty 

19 of not more than— 

20 (A) in the case of a first violation of sub21 section (a), $5,000; 

22 (B) in the case of a second violation of 

23 subsection (a), $10,000; and 

24 (C) in the case of each violation of sub25 section (a) after a second violation under sub26 paragraph (B), $15,000. 


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1 (c) DEFINITIONS.—In this section: 

2 (1) COVERED FINANCIAL TRANSACTION.— 

3 (A) IN GENERAL.—The term ‘‘covered fi4 nancial transaction’’ includes— 

5 (i) any gift, subscription, loan, ad6 vance, or deposit of money or anything of 

7 value; 

8 (ii) any investment in— 

9 (I) a security (as defined in sec10 tion 3(a) of Securities Exchange Act 

11 of 1934 (15 U.S.C. 78c(a))); 

12 (II) a security future (as defined 

13 in that section); or 

14 (III) a commodity (as defined in 

15 section 1a of the Commodity Ex16 change Act (7 U.S.C. 1a)); and 

17 (iii) any economic interest comparable 

18 to an interest described in clause (i) that 

19 is acquired through synthetic means, such 

20 as the use of a derivative, including an op21 tion, warrant, or other similar means. 

22 (2) FOREIGN ADVERSARY.—The term ‘‘foreign 

23 adversary’’ means— 


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1 (A) the People’s Republic of China, includ2 ing the Hong Kong Special Administrative Re3 gions; 

4 (B) the Republic of Cuba; 

5 (C) the Islamic Republic of Iran; 

6 (D) the Democratic People’s Republic of 

7 Korea; 

8 (E) the Russian Federation; and 

9 (F) the Bolivarian Republic of Venezuela 

10 under the regime of Nicola ́s Maduro Moros. 

11 (3) MEMBER OF CONGRESS.—The term ‘‘Mem12 ber of Congress’’ means a Senator or Representative 

13 in, or Delegate or Resident Commissioner to, the 

14 Congress. 

Æ 


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