The Receipt of Gifts by Federal Employees in the Executive Branch

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The Receipt of Gifts by Federal Employees in the Executive Branch

Summary

This report provides information on the federal statutes, regulations, and guidelines concerning

the restrictions on the acceptance of gifts and things of value by officers or employees in the

executive branch of the United States government.

The laws and regulations on the receipt of “gifts” by executive branch personnel provide,

generally, that an employee may not solicit or accept a gift:

(1) if the gift is from a “prohibited source” or

(2) if the gift is given because of the employee’s official position.

A “prohibited source” under the regulations is one who seeks official action from the employee’s

agency; one who does business or seeks to do business with the agency; one whose activities are

regulated by the employee’s agency; one whose interests may be substantially affected by the

performance or nonperformance of the employee’s official duties; or an organization a majority of

whose members fit any of the above categories.

A gift is given “because of” the employee’s official position if it would not have been offered

“had the employee not held the status, authority or duties associated with his Federal position.”

Gifts that are “motivated by a family relationship or personal friendship” may therefore be

accepted without limitation.

There are several exceptions to the gifts restrictions for the receipt of certain gifts, including a

general de minimis exception for the receipt of gifts of under $20 in value; modest items of food

and drink that are not offered as part of a meal; greeting cards and items with little intrinsic value,

such as plaques or trophies; certain bona fide awards; certain expenses for some conferences and

symposiums when approved by the agency; and items related to an outside business or

employment activity of the employee.

In addition to the regulations on “gifts,” there are additional criminal statutory provisions that

may apply to the receipt of things of value by a federal officer or employee when that receipt is

connected in some way to, or influences, an official act or the official duties of the officer or

employee. These include criminal statutory prohibitions on the receipt of “bribes” and “illegal

gratuities,” prohibitions on official extortion, and the “honest services” fraud component of the

mail and wire fraud statutes.

Gifts from foreign governments or foreign officials to all federal officers or employees are

prohibited by a constitutional provision, unless such gifts are permitted by Congress (Article I,

Section 9, clause 8). Congress has consented to the receipt of gifts in certain circumstances from

official foreign sources in the Foreign Gifts and Decorations Act.

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Contents

Federal Statute on Gifts from Outside Sources................................................................................ 1

Regulations on Receipt of Gifts ....................................................................................................... 1

General Prohibitions .................................................................................................................. 3

Exceptions ................................................................................................................................. 3

Personal or Family Relationships ........................................................................................ 3

Exceptions for De Minimis Gifts ......................................................................................... 4

Social Events ....................................................................................................................... 4

Conferences and Similar Widely Attended Events.............................................................. 4

Outside Business and Other Outside Activities ................................................................... 5

Bona Fide Awards ............................................................................................................... 6

Other Exceptions ................................................................................................................. 6

Foreign Gifts and Decorations ......................................................................................................... 6

Other Restrictions on the Receipt of Things of Value by Federal Officials ..................................... 8

Financial Disclosure ........................................................................................................................ 9

Contacts

Author Contact Information........................................................................................................... 10

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ederal employees in the executive branch of government are regulated in their acceptance

of “gifts” and things of value from outside, private sources under provisions of federal law

as well as under detailed standards of conduct regulations promulgated for the entire

executive branch of the federal government by the Office of Government Ethics (OGE).

The regulations on gifts may be relevant to the receipt of anything of value from an outside,

private source, regardless of whether there is any connection to or bearing upon one’s official

duties or responsibilities.

Federal laws have long prohibited corrupt payments to or corrupt receipt of things of value by

federal officials, such as “bribes” from favor-seekers in the private sector.1 Government-wide

regulations and limitations on mere “gifts” to federal officials from private domestic sources—

where there is not necessarily any bargain (reciprocity), compensation, or favor explicitly sought,

understood, or agreed to, or particular official act contemplated—are, however, of a more recent

vintage.2

Federal Statute on Gifts from Outside Sources

The current statutory restriction in federal law on the receipt or solicitation of “gifts” by federal

officials was enacted as part of the Ethics Reform Act of 1989.3 This statute, which underlies the

gift regulations in the executive branch, in many respects merely codified similar gifts standards

that had been promulgated by executive order and applicable to executive branch employees

since at least 1965.4 The current law, codified at 5 U.S.C. Section 7353(a), prohibits any federal

officer or employee from soliciting or receiving a gift of any amount from a prohibited source,

that is, from someone who is seeking action from, is doing business with, or is regulated by one’s

agency, or whose interests may be substantially affected by the performance or nonperformance

of one’s official duties. The statute, at 5 U.S.C. Section 7353(b), then expressly authorizes the

designated supervisory ethics offices in the government to make exceptions to this general

restriction, and to issue regulations setting out circumstances under which gifts may be accepted.

Regulations on Receipt of Gifts

The regulations of the OGE, the supervisory ethics agency for the executive branch, set out the

detailed guidelines and standards for officials in the executive branch of government. In addition

to the OGE regulations, it is possible that each agency, in consultation with and on the approval

The Constitution expressly notes “bribery” as one of the offenses constituting grounds for impeachment of the

President, Vice President, and all civil officers of the United States. U.S. CONST. art. II, §4. The first federal statutes on

bribery began with the 1st Congress in 1789 and 1790, 1 Stat. 46, July 31, 1789 (custom officials); 1 Stat. 117, April 30,

1790 (federal judges). See discussion generally in Noonan, BRIBES, 427 - 435 (MacMillan 1984).

Prior to 1965, specific regulations on gifts to federal employees were sporadic and ad hoc within the regulations of

the individual agencies and departments of the government. See, The Association of the Bar of the City of New York,

CONFLICT OF INTEREST AND FEDERAL SERVICE, 72 - 83 (Harvard University Press 1960). Other than the exhortations in

the “Code of Ethics for Government Service” (72 Stat. Part 2, B12 (1958), H.Con.Res. 175, 85th Cong.), adopted by

Congress as a concurrent resolution in 1958, the first branch-wide regulation on gifts was in Executive Order No.

11222, issued by President Lyndon Johnson in 1965.

P.L. 101-194, 103 Stat. 1746-1747 (November 30, 1989). See now 5 U.S.C. §7353.

See Executive Order No. 11222, Section 201, May 8, 1965 (now superseded by E.O. 12674).

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of the OGE, may promulgate additional and individualized ethics provisions needed for their own

agency.5

The term “gift” is defined broadly in the regulations to cover most items, benefits, services, or

favors that have a monetary value. The definition expressly includes “any gratuity, favor,

discount, entertainment, hospitality, loan, forbearance, or other item having monetary value.”6

Although the definition includes “services as well as gifts of training, transportation, local travel,

lodgings and meals,” the regulations list a number of items that are not included in the definition

of a “gift” (and which are discussed later in this report under “exemptions”). As a general matter,

a “gift” is usually distinguished from something of value that is received as “compensation”; that

is, compensation would be a payment of a fee, salary, or wage for some service rendered,7 while a

gift is given without any such consideration in return.

Although the gift regulations apply only to federal employees themselves, there are circumstances

in which gifts to others may be imputed to the federal employee. Such an “indirect” gift to a

federal employee covered by the prohibitions may occur when a gift is given with the employee’s

“knowledge and acquiescence to his parent, sibling, spouse, child, or dependent relative because

of that person’s relationship to the employee,” or when given to another person or organization on

the basis of a designation or recommendation of the federal employee.8

Although specific rules and prohibitions exist for executive branch employees, the President and

Vice President are generally exempt under the OGE regulations from the statutory gift restrictions

and the regulations on domestic gifts.9 Under these regulations, the President and Vice President

may accept gifts from the public, as long as such gifts are not solicited or coerced,10 nor accepted

in return for an official act.11 The exception in the OGE regulations states:

Because of the considerations relating to the conduct of their offices, including those of

protocol or etiquette, the President and the Vice President may accept any gift on his own

behalf or on behalf of any family member, provided that such acceptance does not violate

§2635.202(c)(1) or (2), 18 U.S.C. §201(b) or 201(c)(3), or the Constitution of the United

States.12

In promulgating its rules and exceptions, the OGE had noted, “The ceremonial and other public

duties of the President and Vice President make it impractical to subject them to standards that

require an analysis of every gift offered.”13

5 C.F.R. §2635.105.

5 C.F.R. §2635.203(b).

The receipt of outside compensation, income, wages, and fees by federal employees is governed under the conduct

regulations in the provisions on “outside activities.” 5 C.F.R. §2635, Subpart H (5 C.F.R. §§2635.801-2635.809).

5 C.F.R. §2635.203(f). Note that the restriction on gifts include those solicited or received “directly or indirectly” by

an employee, at 5 C.F.R. §2635.202(a).

5 C.F.R. §2635.204(j); note 57 F.R. 35049, August 7, 1992.

5 C.F.R. §2635.202(c)(2).

5 C.F.R. §2635.202(c)(1), see also 18 U.S.C. §201.

5 C.F.R. §2635.204(j). The constitutional restriction on gifts from foreign governments still applies to the President.

See Art. I, Sec. 9, cl. 8, and 5 U.S.C. §7342.

56 F.R. 33783, July 23, 1991.

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General Prohibitions

The executive branch gift regulations, at 5 C.F.R. Section 2635.202, prohibit the acceptance of

gifts directly or indirectly by executive branch employees generally in two circumstances:

(1) if the gift is from a “prohibited source” or

(2) if the gift is given because of the employee’s official position.

A “prohibited source” under the regulations is one who:

•

seeks official action from the employee’s agency;

•

does business or seeks to do business with the agency;

•

conducts activities regulated by the employee’s agency;

•

has interests that may be substantially affected by the performance or

nonperformance of the employee’s official duties; or

•

is an organization with a majority of its members in one of the above

categories.14

A gift is solicited or accepted “because of the employee’s official position” when the gift “would

not have been solicited, offered, or given had the employee not held the status, authority or duties

associated with his Federal position.”15 This second class of prohibited gifts is substantially what

has been called by the federal courts a “status gift,” that is, a gift given merely because of the

status of an individual as a federal officer or employee, regardless of any particular or identified

act done, to be performed or not to be performed, by the public officer.16

Exceptions

Personal or Family Relationships

Although an executive branch employee may not accept gifts given by a “prohibited source,” or

given because of his or her official position, the regulations expressly note within the listed

“exceptions” that an executive branch official may accept a gift without limitation (even from an

otherwise “prohibited source”) when it is “clear” that the gift “is motivated by a family

relationship or personal friendship rather than the position of the employee.”17 Relevant factors in

determining a personal relationship vis-a-vis the donor of a gift would include “the history of the

relationship and whether the family member or friend personally pays for the gift.”18

5 C.F.R. §2635.203(d)(1)-(5).

5 C.F.R. §2635.203(e).

See discussion of gifts given because of one’s “official position” (as opposed to those given because of an “official

act”) in United States v. Sun-Diamond Growers of California, 526 U.S. 398, 405-412 (1999).

5 C.F.R. §2635.204(b). See OGE, Do It Right, An Ethics Handbook for Executive Branch Employees (1995), at pp.

10-13; and OGE pamphlet, “Gifts From Outside Sources” (1998).

5 C.F.R. §2635.204(b): “An employee may accept a gift given under circumstances which make it clear that the gift

is motivated by a family relationship or personal friendship rather than the position of the employee. Relevant factors in

(continued...)

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In examining a gift to a federal official in another context, the Office of Government Ethics, the

office within the executive branch with overall responsibility for interpretation of the federal

ethics provisions, discussed the exception for gifts based on a personal friendship:

The Standards of Conduct provide that the determination of whether a gift from a prohibited

source is clearly motivated by a family relationship or private friendship includes a

consideration of relevant factors such as the history of the relationship and whether the friend

personally paid for the gift. 5 C.F.R. §2634.204(b). Where a personal relationship develops

from an on-going work relationship, it can be very difficult to clearly establish that the gift is

not being given because of the employee’s official position. A gift given out of appreciation

for some action the employee took, particularly one that relates to an employee’s official

responsibilities, is not clearly motivated by a personal relationship. Therefore, an employee

bears a considerable burden in establishing that a gift is based on a personal relationship

rather than the employee’s Government position. ...

One must look to the circumstances surrounding the gift when a personal relationship is at

issue. Factors indicating a personal relationship include the length of time of the relationship,

the intimacy of the relationship including any family interaction, the nature of personal

activities outside the work context, and the frequency of outside contacts.19

Exceptions for De Minimis Gifts

The gift prohibition in the executive branch will not apply to gifts of less than $20 given to a

federal employee from any person, as long as the total number of all gifts from that donor do not

exceed $50 in a calendar year.20 Additionally excluded from the definition of a “gift” in the

executive branch are modest items of food and drink, which are not offered as part of a meal,

greeting cards, and items with little intrinsic value such as plaques or trophies.21

Social Events

Executive branch officers and employees may accept invitations, food, refreshments, and

entertainment for a social event attended “by several persons” from one who is not a prohibited

source (when no fee is charged for others), even if the social invitation is offered because of one’s

position as a federal official.22

Conferences and Similar Widely Attended Events

As to the expenses of conferences and events, an executive branch employee may accept free

attendance at a “widely attended” gathering or event in which the employee is to speak or

participate in an official capacity, or when it is in the interest of the agency or the government for

(...continued)

making such a determination include the history of the relationship and whether the family member or friend personally

pays for the gift.”

Office of Government Ethics, Advisory Opinion 06 x 03, March 21, 2006.

5 C.F.R. §2635.204(a). The $20 de minimis exception does not apply to gifts of cash, which are still prohibited.

5 C.F.R. §2635.203(b)(1) and (2).

5 C.F.R. §2635.204(h).

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the employee to accept such an invitation.23 The agency may determine that an employee’s

attendance at an event such as a “widely attended gathering” will “further agency programs or

operations” and that, therefore, an employee may accept a sponsor’s unsolicited gift of free

attendance at such event (and in some circumstances from a person other than the sponsor if the

market value of the attendance is under $375).24 Such acceptance may include the provision of

food, refreshments, entertainment, instruction, and materials that are provided to all attendees as

an integral part of the event—but does not include travel or lodging collateral to the event.25

Employees who attend such events may be authorized to bring a spouse when other attendees will

generally be so accompanied.26 The employee will generally be attending such a conference or

event in his or her personal capacity and will therefore be on “annual leave,” although the

employee may also be granted an excused absence for certain conferences, seminars, or programs

“if authorized by the employee’s agency.”27

If the sponsor of the event is one whose interests may be substantially affected by the official

duties of the employee, then the agency must balance the interests of the agency in allowing the

employee’s acceptance of such a gift of attendance with the sensitivity of the matter under agency

consideration and the employee’s role in that matter, and make a determination in writing that

“the employee’s participation in the event outweighs concern that acceptance of the gift of free

attendance may or may appear to improperly influence the employee in the performance of his

official duties.”28 Under such a circumstance free attendance at the event may be accepted, but

not travel, transportation, lodging, or subsistence expenses, unless there is a separate statutory

authorization to accept such travel expenses.29

Outside Business and Other Outside Activities

The gift regulations expressly note that executive branch employees may accept meals, lodging,

and transportation when such items are related to an outside business or employment activity of

the employee, rather than related to the employee’s official position and duties.30 If an employee

in the executive branch is to participate, for example, in what would be considered an “honoraria”

event, that is, the employee is to perform writing or lecturing services in a private, non-official

capacity outside of his or her government job, based on the employee’s expertise and knowledge

on a subject (and not because of his or her official position), then the receipt of honoraria,

transportation, food, and lodging incident to the event would fall within the rules and regulations

on honoraria and outside employment, rather than the “gift” rules.31

5 C.F.R. §2635.204(g).

5 C.F.R. §2635.204(g)(2). This exception may apply if the value is under the threshold amount and if the “widely

attended” event is to be attended by more than 100 persons.

5 C.F.R. §2365.204(g)(4).

5 C.F.R. §2365.204(g)(6).

5 C.F.R. §2635.204(g)(2).

5 C.F.R. §2635.204(g)(3)(i).

See 5 C.F.R. §2635.204(g)(4). For the acceptance of travel expenses by the agency on behalf of the employee for

official participation in such events, see 31 U.S.C. §1353, note 41 C.F.R. part 304-1. There is also separate statutory

authority for an employee to accept certain travel expenses and materials for training from certain non-profit

organizations at 5 U.S.C. §4111.

5 C.F.R. §2635.204(e).

Note 5 C.F.R. §§2635.801 et seq., and 2636.101 et seq. The general statutory prohibition against federal employees

receiving “honoraria” was found unconstitutional in United States v. National Treasury Employees Union, 513 U.S.

(continued...)

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Bona Fide Awards

Employees in the executive branch may accept bona fide awards, other than cash, if valued at

$200 or less (and more than $200 under certain approved circumstances) for meritorious public

service or achievement; and may accept honorary degrees when no conflict of interest is

apparent.32 Certain long-standing awards that are given pursuant to established written criteria,

even if they have a substantial cash component over $200, may be accepted under some

circumstances (with written approval from ethics personnel) from a source that is independent

from the agency and the official, that is, if the awards are from entities who do not have “interests

that may be substantially affected by the performance or nonperformance of the employee’s

official duties.”33 Examples in the regulations note the permissibility of receiving, for example,

the Nobel Prize in Physiology or Medicine by a federal official.

Other Exceptions

The OGE regulations list other specific exemptions from the gift rule prohibition that would

allow the receipt of certain benefits or things of value by federal employees such as loans from

financial institutions at prevailing rates; favorable rates or benefits that are available generally to

a class of persons (including all government employees or uniform military personnel, even if

limited geographically); rewards and prizes from contests and events that are generally open to

the public; pension benefits; and anything accepted by the government or the employee under

statutory authority.34

Foreign Gifts and Decorations

The United States Constitution prohibits the acceptance by any officer or employee of the United

States (anyone “holding any Office of Profit or Trust”) of “any present, Emolument, Office or

Title, of any kind whatever, from any King, Prince, or foreign state” without the “Consent of the

Congress.”35

(...continued)

454 (1995), and the receipt of such honoraria as outside compensation are now governed by “conflict of interest” rules

and principles.

5 C.F.R. §2635.204(d)(1) and (2).

5 C.F.R. §2635.204(d)(1). The first three categories of “prohibited sources”—those seeking official action from,

doing or seeking to do business with, or regulated by one’s agency—are agency-wide categories and apply to all

employees of the agency whatever their official duties, while this fourth category—one whose interests are affected by

the performance or non-performance of the employee’s official duties—is narrower and is personal and specific to a

particular officer or employee. Note discussion in OGE Opinion 94 x 5, February 7, 1994.

5 C.F.R. §2635.203(b).

U.S. CONST., art. I, § 9, cl. 8. “No Title of Nobility shall be granted by the United States: And no Person holding any

Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument,

Office, or Title, of any kind whatever, from any King, Prince or foreign State.” The intent of the original prohibition,

stated during the Federal Convention in August of 1787, was the recognized necessity of “preserving foreign ministers,

and other officers of the United States, independent of external influence.” ELLIOT’S DEBATES, Volume V, p. 467 (Mr.

Pinckney of South Carolina). As noted by Justice Story in his historic work on the Constitution, this prohibition “is

founded in a just jealousy of foreign influence of every sort.” Story, COMMENTARIES ON THE CONSTITUTION OF THE

UNITED STATES, Vol. III, pp. 215-216.

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Congressional consent for the acceptance of a foreign gift or decoration had often in the past

taken the form of a private bill, or even a public law, which specifically authorized such

acceptance for an individual or a group of individuals.36 In 1966, however, Congress granted in

the “Foreign Gifts and Decorations Act” a general statutory consent to the acceptance of certain

gifts of minimal value, the conditional acceptance of certain other tangible gifts on behalf of the

United States, and decorations from foreign governments in certain circumstances.37 Amendments

to the Foreign Gifts and Decorations Act provisions were enacted in 1977 in the Foreign

Relations Authorization Act, Fiscal Year 1978,38 which clarified certain exceptions to the

prohibition and added others.39

Expressly included within the statutory prohibition (and the statutory consent of Congress)

regarding the acceptance of gifts from foreign governments by a federal employee, is the

“spouse” and the “dependent children” of a federal employee.40 The statute directs each

employing agency to promulgate rules regarding the limitations and restrictions on the receipt of

foreign gifts.

The current statutory provision on foreign gifts and decorations generally:

1. Prohibits an employee from requesting or encouraging the tender of a gift from a foreign

government. 5 U.S.C. Section 7342(b)(1).

2. Prohibits the receipt of a gift from a foreign government or an official foreign source

except when authorized by the law. 5 U.S.C. Section 7342(b)(2).

3. Authorizes the receipt of a foreign gift by a federal employee when

•

the gift is of “minimal value” tendered as a “souvenir or mark of courtesy”

(“minimal value” is an amount adjusted every three years and, as of May

2014, is $375 or less (41 C.F.R. §102- 42.10)). 5 U.S.C. Section

7342(c)(1)(A).

•

the gift is of more than minimal value when it is in the nature of an

educational scholarship or medical treatment. 5 U.S.C. Section

7342(c)(1)(B).

•

the gift is of more than minimal value, when the refusal of the gift would

cause offense or embarrassment or would otherwise adversely affect the

foreign relations of the United States, provided that if the gift is a tangible

gift it is turned over to and becomes the property of the United States. 5

U.S.C. Section 7342(c)(1)(B)(i).

See CANNON’S PRECEDENTS OF THE HOUSE OF REPRESENTATIVES, Vol. VII, §1889; S. Rpt. No. 89-1160, 89th Cong.,

2d Sess. 1-2 (1966), to accompany S. 2463, the “Foreign Gifts and Decorations Act”; CONSTITUTION - JEFFERSON’S

MANUAL AND RULES OF THE HOUSE OF REPRESENTATIVES, §145; H.Rept. 89-2052, 89th Cong., 2d Sess. 1-2 (1966).

P.L. 89-673, 80 Stat. 952, October 15, 1966.

P.L. 95-105, 91 Stat. 862, August 17, 1977 (H.R. 6689, 95th Cong.). See now 5 U.S.C. §7342.

These amendments added the exception for the acceptance of gifts of travel or expenses for travel taking place

entirely outside of the United States under certain circumstances, and provided for reporting requirements for gifts

accepted, as well as procedures for disposal and distribution of foreign gifts received on behalf of the United States.

Note, generally, 41 C.F.R. §102-42.

5 U.S.C. §7342(a)(1)(G).

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•

the gift involves travel or expenses for travel (such as transportation, food,

and lodging) “taking place entirely outside of the United States” if such

acceptance is appropriate, consistent with the interests of the United States,

and permitted by the employing agency. 5 U.S.C. Section 7342(c)(1)(B)(ii).

•

the gift involves expenses for programs expressly authorized by Congress,

such as under the Mutual Education and Cultural Exchange Act. 5 U.S.C.

Section 7342(k).

Other Restrictions on the Receipt of Things of Value

by Federal Officials

The restrictions and regulations discussed above are upon the receipt of things of value given as

“gifts,” that is, generally, when things of value are given from a private source to a federal official

with the requisite “donative intent,” or colloquially, without “strings attached.” When, however,

things of value are given, offered, or transferred to a federal official, and the transaction is

connected in some way to an official act of the government officer or employee, then such offer

and/or acceptance of a thing of value may implicate potential violations of federal criminal law.

In addition to the statutory “gifts” provision and regulations, federal officers and employees

continue to be subject to the restrictions of the federal bribery law at 18 U.S.C. §201(b), which

prohibits the receipt of anything of value “in return for” being influenced in the performance of

an official duty. Within this federal bribery statute is the so-called “illegal gratuities” clause, at 18

U.S.C. §201(c), prohibiting the receipt of anything of value “for or because of” an official act.

The bribery provision has been interpreted to require a so-called quid pro quo, that is, a corrupt

agreement or “bargain” to do some official act (or refrain from doing some official act) in return

for the thing of value; the “illegal gratuity” provision, however, merely requires that the thing of

value be given for or “because of” an official act and could have been given merely as a “thank

you,” even for an act already completed that would have been done by the public official without

the thing of value being offered.41 Additionally, federal employees may not use their official

positions (“under color of official right”) to “extort” something of value for themselves,42 and

may not receive things of value in circumstances that implicate “honest services” fraud within the

prohibitions of the wire fraud and mail fraud laws.43

Concerning the receipt of things of value, federal officers or employees may not receive

something of value as private “compensation” for representational services rendered to persons

before federal agencies,44 and may not receive from a private source any salary supplementation

for their official duties performed on behalf of the United States government.45

See discussion in United States v. Sun-Diamond Growers of California, 526 U.S. 398, 404-405 (1999).

18 U.S.C. §1951.

18 U.S.C. §§1341, 1343, 1346. See Skilling v. United States, 130 S.Ct. 2896 (2010), where the “honest services”

fraud provision was interpreted narrowly to apply only to situations similar to those involving bribes or kickbacks.

18 U.S.C. §203.

18 U.S.C. §209.

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Federal law also prohibits federal employees from giving gifts to supervisors or superiors in the

federal service, and prohibits such superiors in the federal service from accepting gifts from those

in the federal service receiving less pay than themselves.46 This provision of law was amended in

1989 to expressly allow the supervising ethics office to provide exceptions for gifts between

federal officials and employees on certain special occasions, such as marriage or retirement.47

Procurement officials are under other, but similar, restrictive gift rules concerning gifts and things

of value from contractors and competing firms. These provisions are codified at 41 U.S.C.

Section 423(b), in what have been called the “procurement integrity” provisions.

Financial Disclosure

In addition to restrictions and prohibitions on the receipt of gifts, there may be requirements for

public financial disclosure for certain high level federal officials regarding, among other items,

gifts over particular amounts that have been received by those officials and their immediate

family, which must be reported in the annual financial disclosure statements required each May

15 under the provisions of the Ethics in Government Act of 1978.48 There are also in place

requirements for confidential disclosure reports to be filed with an employee’s agency by some

lower level federal officers and employees. Generally, the confidential reporting requirements

apply to rank and file employees who are compensated below the threshold rate of pay for public

disclosures (GS-15 or below, or less than 120% of the basic rate of pay for a GS-15), and who are

determined by the employee’s agency to perform duties or exercise responsibilities in regard to

government contracting or procurement, government grants, government subsidies or licensing,

government auditing, or other governmental duties that may particularly require the employee to

avoid financial conflicts of interest.49 Items to be disclosed in confidential reports also include

gifts and reimbursements over certain amounts received from private sources.50 The current

aggregate threshold amount for disclosure of gifts in both public and confidential reports is

$375.51

5 U.S.C. §7351.

P.L. 101-194, Section 301, as amended by P.L. 101-280; see now 5 U.S.C. §7351(c), and 5 C.F.R. §§2635.3012635.304.

See now 5 U.S.C. app., §§101(f), 102(a)(2). An officer or employee of the executive branch who “occupies a

position classified above GS-15,” or, if not on the General Schedule, is in a position compensated at a “rate of basic pay

... equal to or greater than 120 percent of the minimum rate of basic pay payable for GS-15,” and who is compensated

at that rate for at least 60 days in a calendar year, is required to file annual public financial disclosure reports.

5 U.S.C. app. § 107; see also 5 C.F.R. §§ 2634.901(a), 2634.904(a). Confidential filing in the executive branch is

done on form OGE-450, optional form 450-A, or with the approval of OGE, in an alternative procedure using an

agency-specific form. 5 C.F.R. §2634.905.

5 C.F.R. §2634.907(g).

The amount is adjusted every three years based on the Consumer Price Index. See 41 C.F.R. §102- 42.10. The

current amount was established at 79 Fed. Reg. 18477 (April 2, 2014), and 79 Fed. Reg. 28605-28606 (May 19, 2014).

The minimum amount for aggregating a gift is $150.

Congressional Research Service

The Receipt of Gifts by Federal Employees in the Executive Branch

Author Contact Information

(name redacted)

Legislative Attorney

/redacted/@crs.loc.gov, 7-....

Congressional Research Service

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