I
119THCONGRESS
1
STSESSION 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
FEBRUARY27, 2025
Ms. T
LAIB(for herself, Ms. NORTON, Ms. LEEof Pennsylvania, Mr. MCGOV-
ERN, Ms. OCASIO-CORTEZ, Ms. OMAR, Ms. PRESSLEY, Mrs. RAMIREZ,
Mr. T
AKANO, 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 owner-
ship by Members of Congress and spouses of Members
of Congress, and for other purposes.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Stop Politicians Prof-4
iting from War Act of 2025’’. 5
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 2
•HR 1756 IH
SEC. 2. BAN ON CERTAIN DEFENSE INDUSTRY STOCK TRAD-1
ING AND OWNERSHIP BY MEMBERS OF CON-2
GRESS, SPOUSES, AND DEPENDENT CHIL-3
DREN. 4
(a) D
EFINITIONS.—In this Act: 5
(1) C
OMMODITY.—The term ‘‘commodity’’ has 6
the meaning given that term in section 1a of the 7
Commodity Exchange Act (7 U.S.C. 1a). 8
(2) C
OVERED DEFENSE CONTRACTOR .—The 9
term ‘‘covered defense contractor’’ means a person, 10
other than an institution of higher education (as de-11
fined under section 101 of the Higher Education Act 12
of 1965 (20 U.S.C. 1001)) or a non-profit medical 13
treatment facility, that has entered into a contract, 14
transaction, or other agreement with the Depart-15
ment of Defense. 16
(3) D
IVERSIFIED.—The term ‘‘diversified’’, 17
with respect to a fund, trust, or plan, means that 18
the fund, trust, or plan does not have a stated policy 19
of concentrating its investments in any industry, 20
business, single country other than the United 21
States, or bonds of a single State. 22
(4) M
EMBER OF CONGRESS .—The term ‘‘Mem-23
ber of Congress’’ has the meaning given that term 24
in section 13101 of title 5, United States Code. 25
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 3
•HR 1756 IH
(5) SECURITY.—The term ‘‘security’’ has the 1
meaning given that term in section 3(a) of Securities 2
Exchange Act of 1934 (15 U.S.C. 78c(a)). 3
(6) W
IDELY HELD INVESTMENT FUND .—The 4
term ‘‘widely held investment fund’’ means a widely 5
held investment fund described in 13104(f)(8) of 6
title 5, United States Code. 7
(b) D
IVESTMENT OFASSETS.— 8
(1) I
N GENERAL.—Except as provided in sub-9
section (c), no Member of Congress, spouse of a 10
Member of Congress, or dependent child of a Mem-11
ber of Congress may have a financial interest in a 12
covered defense contractor, or may own an interest 13
in or trade (except as a divestment) any stock, bond, 14
commodity, future, or any other security the value of 15
which is significantly based upon a covered defense 16
contractor or an entity in the defense industrial 17
base, including an interest in a hedge fund, a deriva-18
tive, option, or other complex investment vehicle. 19
(2) I
MPLEMENTATION.— 20
(A) C
URRENT MEMBERS .— 21
(i) I
N GENERAL.—Except as provided 22
in clause (ii), an individual who is a Mem-23
ber of Congress on the date of the enact-24
ment of this Act, or the spouse or depend-25
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 4
•HR 1756 IH
ent child of such an individual, shall com-1
plete the divestment of any asset described 2
in paragraph (1) by not later than 120 3
days after the date of enactment of this 4
Act. 5
(ii) C
ERTAIN ASSETS.—For an asset 6
described in paragraph (1) that is an inter-7
est in a hedge fund, venture capital fund, 8
or other privately held complex investment 9
vehicle, an individual who is a Member of 10
Congress on the date of enactment of this 11
Act, or the spouse or dependent child of 12
such an individual, shall complete the di-13
vestment of the asset by not later than 180 14
days after the date of enactment of this 15
Act. 16
(iii) A
PPLICATION.—This subpara-17
graph shall apply to a covered defense con-18
tractor that is performing or has per-19
formed a contract for the Department of 20
Defense during the 5-year period preceding 21
the date of the enactment of this Act. 22
(B) N
EW MEMBERS.— 23
(i) I
N GENERAL.—Except as provided 24
in clause (ii), an individual who becomes a 25
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 5
•HR 1756 IH
Member of Congress after the date of en-1
actment of this Act, or who is the spouse 2
of such an individual, shall complete the 3
divestment of any asset described in para-4
graph (1) by not later than 120 days after 5
the date on which the individual becomes a 6
Member of Congress. 7
(ii) C
ERTAIN ASSETS.—For an asset 8
described in paragraph (1) that is an inter-9
est in a hedge fund, venture capital fund, 10
or other privately held complex investment 11
vehicle, an individual who becomes a Mem-12
ber of Congress after the date of enact-13
ment of this Act, or who is the spouse or 14
dependent child of such an individual, shall 15
complete the divestment of the asset by not 16
later than 180 days after the date on 17
which the individual becomes a Member of 18
Congress. 19
(iii) A
PPLICATION.—This subpara-20
graph shall apply to a covered defense con-21
tractor that is performing or has per-22
formed a contract for the Department of 23
Defense during the 5-year period preceding 24
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 6
•HR 1756 IH
the date on which the individual becomes a 1
Member of Congress. 2
(C) D
IVESTMENT OF ASSETS RECEIVED 3
WHILE A MEMBER .—An individual serving as a 4
Member of Congress, or the spouse or depend-5
ent child of such an individual, who receives 6
any asset described in paragraph (1) during the 7
period of such service, such as from an inherit-8
ance, shall complete the divestment of the asset 9
by not later than 120 days after the date on 10
which the individual or spouse receives the 11
asset. 12
(D) Q
UALIFIED BLIND TRUST PROHIB -13
ITED.—Placing an asset described in paragraph 14
(1) in a qualified blind trust (as that term is 15
defined in section 13104(f)(3) of title 5, United 16
States Code), or any other blind trust, shall not 17
qualify as a divestment under such paragraph 18
for purposes of compliance with the require-19
ments of this Act. 20
(c) E
XCEPTIONS.—Nothing in this section shall be 21
construed to prevent— 22
(1) a Member of Congress or their spouse or 23
dependent child from owning or trading— 24
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 7
•HR 1756 IH
(A) a widely held investment fund, if the 1
widely held investment fund— 2
(i) does not present a conflict of inter-3
est; 4
(ii) is diversified; and 5
(iii) in the literature it distributes to 6
prospective and current investors or par-7
ticipants, does not indicate the objective or 8
practice of concentrating its investments in 9
covered defense contractors or entities in 10
the defense industrial base, if the Member 11
of Congress, or the spouse or dependent 12
child of such an individual, neither exer-13
cises control nor has the ability to exercise 14
control over the financial interests held in 15
the fund; 16
(B) shares of Settlement Common Stock 17
issued under section 7(g)(1)(A) of the Alaska 18
Native Claims Settlement Act (43 U.S.C. 19
1606(g)(1)(A)); 20
(C) shares of Settlement Common Stock, 21
as defined in section 3 of the Alaska Native 22
Claims Settlement Act (43 U.S.C. 1602); 23
(D) a United States Treasury bill, note, or 24
bond; 25
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 8
•HR 1756 IH
(E) an investment fund held in a Federal, 1
State, or local government employee retirement 2
plan; or 3
(F) an interest in an investment fund reg-4
istered as an investment company under section 5
3 of the Investment Company Act of 1940 (15 6
U.S.C. 80a–3) that is diversified; and 7
(2) a spouse or dependent child of a Member of 8
Congress from trading any asset described in sub-9
section (b)(1) that is not owned by the spouse, child, 10
or Member of Congress in the course of performing 11
the primary occupation of the spouse or child. 12
(d) C
IVILFINES.—The Attorney General or the Spe-13
cial Counsel may bring a civil action in the appropriate 14
United States district court against any Member of Con-15
gress or their spouse or dependent child who engages in 16
conduct constituting a violation of this section and, upon 17
proof of such conduct by a preponderance of the evidence, 18
such Member of Congress, spouse, or child (as the case 19
may be) shall be subject to a civil penalty of not more 20
than $50,000 for each violation. The imposition of a civil 21
penalty under this subsection does not preclude any other 22
criminal or civil statutory, common law, or administrative 23
remedy, which is available by law to the United States or 24
any other person. 25
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 9
•HR 1756 IH
(e) NONRECOGNITION OF GAIN.— 1
(1) I
N GENERAL.—Paragraph (1) of section 2
1043(b) of the Internal Revenue Code of 1986 is 3
amended— 4
(A) by striking ‘‘and’’ at the end of sub-5
paragraph (A); 6
(B) by redesignating subparagraph (B) as 7
subparagraph (C); 8
(C) by inserting after subparagraph (A) 9
the following new subparagraph: 10
‘‘(B) any Member of Congress or Member 11
of Congress-elect, but only with respect to a di-12
vestment of property required by the Stop Poli-13
ticians Profiting from War Act of 2025, and’’; 14
and 15
(D) by striking ‘‘subparagraph (A)’’ in 16
subparagraph (C), as so redesignated, and in-17
serting ‘‘subparagraph (A) or (B), whichever is 18
applicable’’. 19
(2) C
ERTIFICATE OF DIVESTITURE .—Subpara-20
graph (B) of section 1043(b)(2) of such Code is 21
amended— 22
(A) by striking ‘‘or by’’ and inserting 23
‘‘by’’; and 24
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS 10
•HR 1756 IH
(B) by inserting ‘‘, or by the applicable 1
congressional ethics committee (as that term is 2
defined in section 13101 of title 5), in the case 3
of Members of Congress, Members of Congress- 4
elect, and spouses of Members of Congress and 5
Members of Congress-elect’’ after ‘‘judicial offi-6
cers’’. 7
(3) E
FFECTIVE DATE.—The amendments made 8
by this subsection shall apply to sales of property 9
after the date of the enactment of this Act. 10
(f) I
NTERPRETIVE GUIDANCE.—The Select Com-11
mittee on Ethics of the Senate and the Committee on Eth-12
ics of the House of Representatives shall issue interpretive 13
guidance regarding relevant terms not defined in this Act. 14
Æ
VerDate Sep 11 2014 23:25 Mar 17, 2025 Jkt 059200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6301 E:\BILLS\H1756.IH H1756
ssavage on LAPJG3WLY3PROD with BILLS