Cisneros, Horsford Introduce Legislation to Strengthen Ethics Laws Covering DoD Procurement

Washington, DC- Congressman Gil Cisneros (CA-31) and Congressman Steven Horsford (NV-04) today introduced the Ensuring Transparency, Honesty, and Integrity for Contracting, Acquisition, and Lifestyle (ETHICAL) Procurement Act, legislation that closes a critical gap in federal ethics laws that currently allows senior federal officials and their immediate family members to benefit financially from defense procurement decisions.

Specifically, the ETHICAL Procurement Act would prohibit the Defense Department from awarding contracts or other acquisition agreements to any entity in which a current senior Federal official, or their immediate family, serves as an officer, director, partner, or majority owner.

"The Department of Defense should always require that the use of taxpayer-funded defense dollars are directed by merit and national security needs. "Instead, this Administration has abused taxpayer money to fund personal projects and enhance the riches of the President's family and close friends" said Rep. Gil Cisneros."I am proud to co-lead the ETHICAL Procurement Act with Rep. Horsford, a commonsense bill that removes potential conflicts of interest between bidding defense contractors, government employees, and the family of the President and establishes guardrails to prohibit abuse of taxpayer funds. We must protect the merit of our military and our tax dollars."

"Ensuring that public officials cannot profit from their decisions in office is foundational to good governance," said Rep. Steven Horsford."Even the perception of self-dealing can undermine public trust, which is why the ETHICAL Procurement Act is so important. Ignoring this loophole can distort fair competition and risks diverting resources away from the most capable providers. At a time when we are modernizing our forces and investing heavily in emerging technologies, we must ensure taxpayer dollars are allocated based solely on merit, mission, and national security needs."

"Americans deserve absolute confidence that defense contracts are awarded based on national security needs, not personal profit," said Colby Goodman, Senior Researcher at Transparency International Defense and Security."The ETHICAL Procurement Act delivers a long-overdue safeguard by preventing senior officials and their families from benefiting financially from the decisions they may influence. This bill strengthens public trust, promotes fair competition, and protects taxpayer dollars. Transparency International U.S. applauds Congressman Horsford for advancing this important reform."

Current Federal Acquisition Regulations restrict post-employment conflicts of interest, but they do not prevent sitting senior Federal officials from holding ownership stakes or leadership roles in companies seeking defense contracts. This loophole allows the (real or perceived) possibility of public officials influencing acquisition decisions in ways that could benefit themselves or their families.

The ETHICAL Procurement Act comes after a year when a billionaire tech executive served in the White House while his company pursued billions in defense contracts, and an immediate family member of the President secured a $620 million Pentagon loan for a little-known startup company.

Rep. Cisneros is a Navy Veteran and the former Under Secretary of Defense for Personnel and Readiness. He currently serves on the House Armed Services Committee, Subcommittee on Military Personnel, Subcommittee on Intelligence and Special Operations, and Appropriations Defense Subcommittee. Rep. Cisneros is a member of the Congressional Hispanic Caucus and serves on its leadership team as the Freshman Representative.

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