Stop Politicians Profiting from War Act of 2025

The "Stop Politicians Profiting from War Act of 2025" aims to prevent conflicts of interest by prohibiting Members of Congress, their spouses, and dependent children from holding financial interests in defense contractors, including stocks, bonds, or other securities significantly tied to a "covered defense contractor" or the broader defense industrial base. A covered defense contractor is defined as any entity, excluding educational or non-profit medical facilities, that has a contract or agreement with the Department of Defense. The bill mandates a strict divestment process for individuals subject to these prohibitions. Current Members of Congress and their families must divest prohibited assets within 120 days of the Act's enactment, or 180 days for complex investment vehicles like hedge funds. New Members and their families face similar deadlines upon entering office, and assets acquired during service, such as through inheritance, must be divested within 120 days. Notably, placing these assets into a qualified blind trust is explicitly prohibited as a means of compliance. Several exceptions are provided, primarily for diversified, widely held investment funds that do not concentrate investments in defense contractors and where the individual lacks control. Other exceptions include U.S. Treasury securities and investment funds within government retirement plans. Violations of these prohibitions can result in a civil penalty of up to $50,000 per instance , enforceable by the Attorney General or Special Counsel. Additionally, the bill amends tax law to allow for nonrecognition of gain on required divestments, with congressional ethics committees issuing certificates.