Contracts by Member of Congress
Official text prohibited actmental stateif conditionpenaltylegal term
Whoever, being a Member of or Delegate to Congress, or a Resident Commissioner, either before or after he has qualified, directly or indirectly, himself, or by any other person in trust for him, or for his use or benefit, or on his account, undertakes, executes, holds, or enjoys, in whole or in part, any contract or agreement, made or entered into in behalf of the United States or any agency thereof, by any officer or person authorized to make contracts on its behalf, shall be .
All contracts or agreements made in violation of this section shall be void; and whenever any sum of money is advanced by the United States or any agency thereof, in consideration of any such contract or agreement, it shall forthwith be repaid; and in case of failure or refusal to repay the same when demanded by the proper officer of the department or agency under whose authority such contract or agreement shall have been made or entered into, suit shall at once be brought against the person so failing or refusing and his sureties for the recovery of the money so advanced.
History: (June 25, 1948, ch. 645, 62 Stat. 702 (PDF, 39 MB); Oct. 31, 1951, ch. 655, §19, 65 Stat. 717 (PDF, 4.2 MB); Pub. L. 103–322, title XXXIII, §330016(1)(J), Sept. 13, 1994, 108 Stat. 2147 (PDF, 52 MB).)
Simplified explanation
It is a federal crime for a Member of Congress, Delegate, or Resident Commissioner to hold or benefit from a contract with the United States or a federal agency, whether directly or through someone else. This applies even before the member officially takes office.