---
kind: "section"
citation: "20 U.S.C. § 3490"
title: "20"
title_heading: "Education"
number: "3490"
heading: "Potential financial interests or impaired objectivity of covered individuals or entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/3490"
units:
  - "Chapter 48 — Department of Education"
  - "Subchapter IV — Administrative Provisions"
  - "Part B — General Administrative Provisions"
---

# §3490. Potential financial interests or impaired objectivity of covered individuals or entities

- (a) **Maintenance of integrity and ethical values within Department of Education—** Within 60 days after December 26, 2007, the [Secretary](/usc/20/3404.md?p=2) of Education shall implement procedures—
  - (1) to assess whether a covered individual or entity has a potential financial interest in, or impaired objectivity towards, a product or service purchased with, or guaranteed or insured by, funds administered by the [Department](/usc/20/3404.md?p=1) of Education or a contracted entity of the [Department](/usc/20/3404.md?p=1); and
  - (2) to disclose the existence of any such potential financial interest or impaired objectivity.
- (b) **Review by Inspector General—**
  - (1) Within 60 days after the implementation of the procedures described in [subsection (a)](#a), the Inspector General of the [Department](/usc/20/3404.md?p=1) of Education shall report to the Committees on Appropriations of the House of Representatives and the Senate on the adequacy of such procedures.
  - (2) Within 1 year, the Inspector General shall conduct at least 1 review to ensure that such procedures are properly implemented and are effective to uncover and disclose the existence of potential financial interests or impaired objectivity described in [subsection (a)](#a).
  - (3) The Inspector General shall report to such Committees any recommendations for modifications to such procedures that the Inspector General determines are necessary to uncover and disclose the existence of such potential financial interests or impaired objectivity.
- (c) **Definition—** For purposes of this section, the term “covered individual or entity” means—
  - (1) an officer or professional employee of the [Department](/usc/20/3404.md?p=1) of Education;
  - (2) a contractor or subcontractor of the [Department](/usc/20/3404.md?p=1), or an individual hired by the contracted entity;
  - (3) a member of a peer review panel of the [Department](/usc/20/3404.md?p=1); or
  - (4) a consultant or advisor to the [Department](/usc/20/3404.md?p=1).

## Source credit

(Pub. L. 110–161, div. G, title III, § 306, Dec. 26, 2007, 121 Stat. 2198.)

## Notes

### Editorial Notes

### Codification

Section was enacted as part of the Department of Education Appropriations Act, 2008, and also as part of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2008, and the Consolidated Appropriations Act, 2008, and not as part of the Department of Education Organization Act which comprises this chapter.