[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1756 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 1756
To prohibit certain defense industry stock trading and ownership by
Members of Congress and spouses of Members of Congress, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2025
Ms. Tlaib (for herself, Ms. Norton, Ms. Lee of Pennsylvania, Mr.
McGovern, Ms. Ocasio-Cortez, Ms. Omar, Ms. Pressley, Mrs. Ramirez, Mr.
Takano, and Mr. Tonko) introduced the following bill; which was
referred to the Committee on Financial Services, and in addition to the
Committees on House Administration, Ways and Means, and Agriculture,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of
the committee concerned
_______________________________________________________________________
A BILL
To prohibit certain defense industry stock trading and ownership by
Members of Congress and spouses of Members of Congress, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Politicians Profiting from War
Act of 2025''.
SEC. 2. BAN ON CERTAIN DEFENSE INDUSTRY STOCK TRADING AND OWNERSHIP BY
MEMBERS OF CONGRESS, SPOUSES, AND DEPENDENT CHILDREN.
(a) Definitions.--In this Act:
(1) Commodity.--The term ``commodity'' has the meaning
given that term in section 1a of the Commodity Exchange Act (7
U.S.C. 1a).
(2) Covered defense contractor.--The term ``covered defense
contractor'' means a person, other than an institution of
higher education (as defined under section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) or a non-profit medical
treatment facility, that has entered into a contract,
transaction, or other agreement with the Department of Defense.
(3) Diversified.--The term ``diversified'', with respect to
a fund, trust, or plan, means that the fund, trust, or plan
does not have a stated policy of concentrating its investments
in any industry, business, single country other than the United
States, or bonds of a single State.
(4) Member of congress.--The term ``Member of Congress''
has the meaning given that term in section 13101 of title 5,
United States Code.
(5) Security.--The term ``security'' has the meaning given
that term in section 3(a) of Securities Exchange Act of 1934
(15 U.S.C. 78c(a)).
(6) Widely held investment fund.--The term ``widely held
investment fund'' means a widely held investment fund described
in 13104(f)(8) of title 5, United States Code.
(b) Divestment of Assets.--
(1) In general.--Except as provided in subsection (c), no
Member of Congress, spouse of a Member of Congress, or
dependent child of a Member of Congress may have a financial
interest in a covered defense contractor, or may own an
interest in or trade (except as a divestment) any stock, bond,
commodity, future, or any other security the value of which is
significantly based upon a covered defense contractor or an
entity in the defense industrial base, including an interest in
a hedge fund, a derivative, option, or other complex investment
vehicle.
(2) Implementation.--
(A) Current members.--
(i) In general.--Except as provided in
clause (ii), an individual who is a Member of
Congress on the date of the enactment of this
Act, or the spouse or dependent child of such
an individual, shall complete the divestment of
any asset described in paragraph (1) by not
later than 120 days after the date of enactment
of this Act.
(ii) Certain assets.--For an asset
described in paragraph (1) that is an interest
in a hedge fund, venture capital fund, or other
privately held complex investment vehicle, an
individual who is a Member of Congress on the
date of enactment of this Act, or the spouse or
dependent child of such an individual, shall
complete the divestment of the asset by not
later than 180 days after the date of enactment
of this Act.
(iii) Application.--This subparagraph shall
apply to a covered defense contractor that is
performing or has performed a contract for the
Department of Defense during the 5-year period
preceding the date of the enactment of this
Act.
(B) New members.--
(i) In general.--Except as provided in
clause (ii), an individual who becomes a Member
of Congress after the date of enactment of this
Act, or who is the spouse of such an
individual, shall complete the divestment of
any asset described in paragraph (1) by not
later than 120 days after the date on which the
individual becomes a Member of Congress.
(ii) Certain assets.--For an asset
described in paragraph (1) that is an interest
in a hedge fund, venture capital fund, or other
privately held complex investment vehicle, an
individual who becomes a Member of Congress
after the date of enactment of this Act, or who
is the spouse or dependent child of such an
individual, shall complete the divestment of
the asset by not later than 180 days after the
date on which the individual becomes a Member
of Congress.
(iii) Application.--This subparagraph shall
apply to a covered defense contractor that is
performing or has performed a contract for the
Department of Defense during the 5-year period
preceding the date on which the individual
becomes a Member of Congress.
(C) Divestment of assets received while a member.--
An individual serving as a Member of Congress, or the
spouse or dependent child of such an individual, who
receives any asset described in paragraph (1) during
the period of such service, such as from an
inheritance, shall complete the divestment of the asset
by not later than 120 days after the date on which the
individual or spouse receives the asset.
(D) Qualified blind trust prohibited.--Placing an
asset described in paragraph (1) in a qualified blind
trust (as that term is defined in section 13104(f)(3)
of title 5, United States Code), or any other blind
trust, shall not qualify as a divestment under such
paragraph for purposes of compliance with the
requirements of this Act.
(c) Exceptions.--Nothing in this section shall be construed to
prevent--
(1) a Member of Congress or their spouse or dependent child
from owning or trading--
(A) a widely held investment fund, if the widely
held investment fund--
(i) does not present a conflict of
interest;
(ii) is diversified; and
(iii) in the literature it distributes to
prospective and current investors or
participants, does not indicate the objective
or practice of concentrating its investments in
covered defense contractors or entities in the
defense industrial base, if the Member of
Congress, or the spouse or dependent child of
such an individual, neither exercises control
nor has the ability to exercise control over
the financial interests held in the fund;
(B) shares of Settlement Common Stock issued under
section 7(g)(1)(A) of the Alaska Native Claims
Settlement Act (43 U.S.C. 1606(g)(1)(A));
(C) shares of Settlement Common Stock, as defined
in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602);
(D) a United States Treasury bill, note, or bond;
(E) an investment fund held in a Federal, State, or
local government employee retirement plan; or
(F) an interest in an investment fund registered as
an investment company under section 3 of the Investment
Company Act of 1940 (15 U.S.C. 80a-3) that is
diversified; and
(2) a spouse or dependent child of a Member of Congress
from trading any asset described in subsection (b)(1) that is
not owned by the spouse, child, or Member of Congress in the
course of performing the primary occupation of the spouse or
child.
(d) Civil Fines.--The Attorney General or the Special Counsel may
bring a civil action in the appropriate United States district court
against any Member of Congress or their spouse or dependent child who
engages in conduct constituting a violation of this section and, upon
proof of such conduct by a preponderance of the evidence, such Member
of Congress, spouse, or child (as the case may be) shall be subject to
a civil penalty of not more than $50,000 for each violation. The
imposition of a civil penalty under this subsection does not preclude
any other criminal or civil statutory, common law, or administrative
remedy, which is available by law to the United States or any other
person.
(e) Nonrecognition of Gain.--
(1) In general.--Paragraph (1) of section 1043(b) of the
Internal Revenue Code of 1986 is amended--
(A) by striking ``and'' at the end of subparagraph
(A);
(B) by redesignating subparagraph (B) as
subparagraph (C);
(C) by inserting after subparagraph (A) the
following new subparagraph:
``(B) any Member of Congress or Member of Congress-
elect, but only with respect to a divestment of
property required by the Stop Politicians Profiting
from War Act of 2025, and''; and
(D) by striking ``subparagraph (A)'' in
subparagraph (C), as so redesignated, and inserting
``subparagraph (A) or (B), whichever is applicable''.
(2) Certificate of divestiture.--Subparagraph (B) of
section 1043(b)(2) of such Code is amended--
(A) by striking ``or by'' and inserting ``by''; and
(B) by inserting ``, or by the applicable
congressional ethics committee (as that term is defined
in section 13101 of title 5), in the case of Members of
Congress, Members of Congress-elect, and spouses of
Members of Congress and Members of Congress-elect''
after ``judicial officers''.
(3) Effective date.--The amendments made by this subsection
shall apply to sales of property after the date of the
enactment of this Act.
(f) Interpretive Guidance.--The Select Committee on Ethics of the
Senate and the Committee on Ethics of the House of Representatives
shall issue interpretive guidance regarding relevant terms not defined
in this Act.
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