Conflict of Interest

A conflict of interest occurs when a person’s private interests could improperly influence, or appear to influence, their official decisions. Federal law restricts certain government employees from participating personally and substantially in matters affecting their financial interests, subject to the law’s details and exceptions.

Example: In Mississippi Valley Generating Co. v. United States (1961), the Supreme Court considered a federal contract affected by a conflict-of-interest statute and discussed the importance of preventing divided loyalties in government decision-making.

Common misconception: Every potential conflict proves corruption. A conflict can require disclosure, recusal, or other safeguards even when there is no evidence of intentional wrongdoing.

Sources: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title18-section208&num=0&edition=prelim; https://www.govinfo.gov/content/pkg/USREPORTS-364/pdf/USREPORTS-364-520.pdf