Dr. Rand Paul Reintroduces Transparency Bill on Royalties Paid to Government Officials

WASHINGTON, D.C. – Today, U.S. Senator Rand Paul (R-KY), Chairman of the Senate Homeland Security and Governmental Affairs Committee, reintroduced his Royalty Transparency Act. This legislation increases transparency on royalty payments paid to Executive Branch officials and makes the financial disclosure forms public for federal advisory committee members such as the Advisory Committee on Immunization Practices. Under current law, federal employees are not required to publicly disclose the source or amount of royalty payments received in service of their official duties. Additionally, the financial disclosures of members of federal advisory committees are not available to the public, despite the fact that these committees make recommendations to federal agencies that have a significant impact on the day-to-day lives of Americans. This lack of transparency prevents taxpayers from holding individuals accountable within the federal government for conflicts of interest and other abuses.

Dr. Paul’s legislation introduces long-overdue accountability by requiring Executive Branch employees to publicly disclose royalty payments for inventions developed during their employment with the federal government on their financial disclosure reports.

“Distrust in public health officials is at an all-time high. One way to restore trust is to make sure that public policy isn’t influenced by personal gain,” said Dr. Paul. “The Royalty Transparency Act will allow more information to be seen by the public to ensure federal decision makers, and the policies they write, aren’t being influenced by the royalty payments they receive.”

U.S. Senator Rick Scott (R-FL) is an original cosponsor of the legislation in the Senate.

“I am proud to support the Royalty Transparency Act, ensuring federal employees’ transparency and accountability to the American people,” said Sen. Rick Scott. “Under current law, bureaucrats like Anthony Fauci and NIH employees were able to receive millions in royalty payments from companies outside the federal government without requirements for reporting, raising serious questions about potential conflicts of interest and fueling distrust in the federal government. Our bill will bring much-needed transparency to these payments by requiring they be publicly reported, helping to hold bureaucrats accountable to the American people and restoring trust in the federal government.”

U.S. Representative Morgan Griffith (R-VA-09), Chairman of the Energy and Commerce Committee’s Subcommittee on Environment, introduced the bill in the U.S. House of Representatives.

“For too long, federal bureaucrats concealed the royalties they received, who they were paid by, what they were compensated for and how much they were paid,” said Rep. Griffith. “As the Trump Administration ushers in a new era of transparency in our federal government, the Royalty Transparency Act will foster greater government transparency and accountability by requiring government officials in federal agencies to disclose the royalties that they receive as a result of their government service. I am excited to work with Senator Paul so we can shine a light on these royalties and hold federal bureaucrats to a greater standard of accountability.”

For years, Dr. Paul has been working to expose the potential conflicts of interest that may arise when millions of dollars in royalties are paid to federal employees serving their official duties. In 2022, Dr. Paul spearheaded a letter with four other members of the Senate Homeland Security and Governmental Affairs Committee to the National Institutes of Health (NIH) requesting information on disclosures of royalty payments made by third-party providers to NIH employees. However, federal agencies, including NIH, have refused to release the information. Through litigation, Open the Books obtained redacted documents and uncovered that approximately 2,400 NIH scientists have been awarded over $300 million in royalties in the last decade, which translates to an average payment of $135,000 per scientist. Since NIH claims that it is not required to disclose this information, it’s still unknown how much each payment amounted to, or why a payment was made. Dr. Paul’s legislation aims to ensure that federal agencies, including NIH, cannot evade scrutiny from Congress and the public, holding federal employees to a higher standard of accountability.

The Royalty Transparency Act mandates that royalty payments received by federal employees from the U.S. Government be disclosed in their financial reports. It also requires members of advisory committees, particularly those at risk of conflicts of interest due to royalties or other financial connections, to adhere to the same standards of financial disclosure as are prevalent across the government. Furthermore, the bill requires that public financial disclosures be made available online, increasing transparency for American taxpayers. The bill introduces greater congressional oversight over the financial disclosure process for executive branch employees and strengthens measures to prevent conflicts of interest in federal procurement.

You can read the Royalty Transparency Act HERE.

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Dr. Rand Paul Reintroduces Transparency Bill on Royalties Paid to Government Officials

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