Stop Politicians Profiting from War Act of 2025

Summary

Prohibits Members of Congress, their spouses, and dependent children from holding or trading investments whose value is closely tied to defense contractors or other firms in the defense industrial base, and requires covered persons to divest such holdings within set deadlines. The bill forbids using blind trusts to meet the divestment requirement, creates limited exceptions for widely held diversified funds and certain government/retirement securities, authorizes civil enforcement with penalties up to $50,000 per violation, and adds Members to a tax nonrecognition rule for required divestitures.

• Members of Congress, their spouses, and dependent children cannot hold or trade investments whose value is substantially linked to defense contractors or the defense industrial base.
• Divestment required generally within 120 days; 180 days allowed for private funds (hedge funds, venture capital, etc.).
• Use of blind trusts (including qualified blind trusts) is prohibited to satisfy divestment obligations.
• Exceptions permit ownership of certain widely held diversified funds, U.S. Treasury obligations, government retirement plans, and specific Alaska Native settlement stock.
• Attorney General or Special Counsel may sue for violations; civil penalties up to $50,000 per violation.
• Adds Members and Members-elect to a tax nonrecognition rule for divestitures required by this law, affecting tax treatment of forced sales.
• House and Senate ethics committees must issue guidance to clarify undefined terms and compliance expectations.
• Spouses/dependent children may trade an otherwise-prohibited asset only if it is not owned by them and trading is part of their primary occupation.