119-hr1756

[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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