Stop Politicians Profiting from War Act of 2025

Financial Integrity through Divestment: Members of Congress, their spouses, and dependent children are prohibited from having financial interests in covered defense contractors or securities based on those contractors, which could reduce conflicts of interest (Section 2(b)(1)).

Timely Asset Liquidation: The bill provides specific timelines for current and new members to divest assets, ensuring that the transition away from defense industry holdings happens within 120 to 180 days (Section 2(b)(2)).

Tax Relief During Transition: The act amends the Internal Revenue Code to allow for the nonrecognition of gains when a Member of Congress divests property required by this specific Act (Section 2(e)(1)).

Protection for Diversified Investments: The bill allows for continued ownership of widely held, diversified investment funds, which protects the ability to invest in broader markets without conflict (Section 2(c)(1)(A)).

Financial Penalties for Violations: Members of Congress, their spouses, or dependent children could face civil penalties of up to $50,000 for each violation of the ownership and trading prohibitions (Section 2(d)).

Strict Divestment Requirements for Complex Assets: Individuals holding interests in hedge funds, venture capital funds, or other privately held complex investment vehicles are required to complete divestment within a specific 180-day window (Section 2(b)(2)(A)(ii)).

Divestment Obligations for Unexpected Assets: If a Member of Congress, a spouse, or a dependent child receives a prohibited asset through means such as an inheritance, they are required to complete the divestment within 120 days (Section 2(b)(2)(C)).