Stop Politicians Profiting from War Act of 2025
Sponsored By: Representative Rep. Tlaib, Rashida [D-MI-12]
In Committee
Summary
Bans Members of Congress and their spouses and dependent children from owning or trading investments tied to defense contractors. It would set deadlines, carve out narrow exemptions for diversified funds and retirement plans, and add penalties plus tax rules.
Show full summary
- Members, spouses, and dependent children would have to divest most holdings tied to covered defense contractors. Most assets must be sold within 120 days and private or complex vehicles like hedge funds or venture funds get 180 days.
- Widely held diversified investment funds, registered diversified funds, U.S. Treasury securities, government employee retirement plan holdings, and certain Alaska Native stocks would be allowed when they do not present a conflict and the member lacks control.
- Violations can lead to civil penalties up to $50,000 per violation enforced by the Attorney General or the Special Counsel. The bill also adds a divestiture tax nonrecognition rule and directs House and Senate ethics committees to issue guidance.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 2 costs, 0 mixed.
Tax deferral for Congress asset sales
If enacted, Members of Congress and Members‑elect who sell assets because of this bill could defer recognizing some gains for tax purposes. They would need a certificate of divestiture from the relevant congressional ethics committee. This tax treatment would apply to sales made after enactment.
Diversified funds allowed for Congress
If enacted, some holdings would still be allowed. Members and families could keep diversified, widely held funds that do not concentrate in defense companies and that they do not control. They could also hold U.S. Treasury bills and bonds, government retirement plan funds, certain Alaska Native settlement shares, and registered diversified investment companies. A spouse or dependent could trade a prohibited asset if it is not owned as part of their main job.
Ethics guidance and key definitions
If enacted, the bill would set clear definitions for who is a covered defense contractor and other key terms. Colleges and non-profit medical treatment facilities would be excluded. House and Senate ethics committees would issue guidance to explain any terms not defined in the bill. This would help Members understand what investments are covered.
Congress must sell defense investments
If enacted, Members of Congress, their spouses, and dependent children would be barred from holding or trading investments tied to defense contractors, except for allowed exceptions. The ban would cover stocks, derivatives, options, and complex funds linked to the defense industrial base, including firms that did Defense Department work in the past 5 years. Current Members and families would have 120 days to sell most assets, and 180 days for hedge funds, venture capital, or similar private vehicles. New Members would get the same 120/180-day timelines, and assets received during service would need to be sold within 120 days of receipt. Putting these assets in a blind trust would not count as divestment.
Fines for Congress investment violations
If enacted, the Attorney General or the Special Counsel could sue for violations of the ban. A court could fine up to $50,000 per violation using a preponderance-of-the-evidence standard. Other criminal or civil penalties could also apply.
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Sponsors & CoSponsors
Sponsor
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Cosponsors
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 2/27/2025
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 2/27/2025
Rep. McGovern, James P. [D-MA-2]
MA • D
Sponsored 2/27/2025
Rep. Ocasio-Cortez, Alexandria [D-NY-14]
NY • D
Sponsored 2/27/2025
Rep. Omar, Ilhan [D-MN-5]
MN • D
Sponsored 2/27/2025
Rep. Pressley, Ayanna [D-MA-7]
MA • D
Sponsored 2/27/2025
Rep. Ramirez, Delia C. [D-IL-3]
IL • D
Sponsored 2/27/2025
Rep. Takano, Mark [D-CA-39]
CA • D
Sponsored 2/27/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 2/27/2025
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 3/3/2025
Rep. Hoyle, Val T. [D-OR-4]
OR • D
Sponsored 3/3/2025
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 3/3/2025
Rep. Khanna, Ro [D-CA-17]
CA • D
Sponsored 4/24/2025
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 8/12/2025
Roll Call Votes
No roll call votes available for this bill.
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