Northeast South Dakota News

U.S. Representative Dusty Johnson (R-S.D.) has joined as a cosponsor of the Restore Trust in Congress Act, a bipartisan bill that would prohibit members of Congress and their families from buying or selling individual stocks during their tenure. The legislation was introduced by Representatives Chip Roy (R-TX) and Seth Magaziner (D-RI).

“Athletes can’t place bets on games they play in because they have too much of an influence on the outcome. It should be the same for members of Congress – our votes can influence the market or the success of a particular company,” said Johnson. “Serving in Congress is a public service, not a chance to strike it rich. Passing this bill will restore some of the honesty and trust that has been lost in our institution.”

“It’s far past time to ban members of Congress from day trading stocks, and for the first time, a bipartisan coalition is standing together behind a united proposal to do just that,” said Rep. Chip Roy. “The Restore Trust in Congress Act ensures that members of Congress will no longer be able to put the stock market first in their official decisions. This bill strikes a balance between being easy to comply with, but without tons of loopholes for members to continue trading while on the job. We must vote on this bill and put this conflict of interest to bed for once and for all. I look forward to seeing the Restore Trust in Congress Act move through the legislative process.”

Johnson has stated he has not bought or sold individual stocks since joining Congress in January 2019 and has previously called for such restrictions.

The proposed act would prevent all lawmakers, their spouses, dependent children, and trustees from owning or trading individual stocks, securities, commodities, or futures contracts while serving in office. Exceptions include diversified investment funds like mutual funds or ETFs; U.S., state, or municipal bonds; precious metals; shares defined under Alaska Native Claims Settlement Act; small business interests; certain family trusts; compensation assets from spousal occupations; assets traded by dependents professionally for others; and personal residences held via LLCs.

Current members would have 180 days after enactment to divest restricted holdings at fair market value, while new incoming members would have 90 days. Assets inherited during service must be divested within 90 days. Members may seek extensions from ethics committees if there are liquidity issues or contractual restrictions.

Capital gains taxes resulting from required divestments could be deferred through an established Certificate of Divesture process already available to executive branch employees.

Enforcement provisions task supervising ethics offices with imposing penalties: fines equal to 10% of asset value plus any profits made must be paid personally—not with campaign or office funds—and outcomes will be publicly disclosed.

Dusty Johnson currently represents South Dakota’s at-large district in Congress since replacing Kristi Noem in 2019 (https://bioguide.congress.gov/search/bio/J000301). Born in Pierre, South Dakota in 1976, Johnson resides in Mitchell and graduated from the University of South Dakota with a BA degree.