I 

118TH CONGRESS 

2D SESSION H. R. 7264 

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 6, 2024 

Ms. TLAIB (for herself and Ms. BUSH) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committees on House Administration, Agriculture, and Ways and Means, 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Politicians Prof5 iting from War Act of 2024’’. 


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1 SEC. 2. BAN ON CERTAIN DEFENSE INDUSTRY STOCK TRAD2 ING AND OWNERSHIP BY MEMBERS OF CON3 GRESS, SPOUSES, AND DEPENDENT CHIL4 DREN. 

5 (a) DEFINITIONS.—In this Act: 

6 (1) COMMODITY.—The term ‘‘commodity’’ has 

7 the meaning given that term in section 1a of the 

8 Commodity Exchange Act (7 U.S.C. 1a). 

9 (2) COVERED DEFENSE CONTRACTOR.—The 

10 term ‘‘covered defense contractor’’ means a person, 

11 other than an institution of higher education (as de12 fined under section 101 of the Higher Education Act 

13 of 1965 (20 U.S.C. 1001)) or a non-profit medical 

14 treatment facility, that has entered into a contract, 

15 transaction, or other agreement with the Depart16 ment of Defense. 

17 (3) DIVERSIFIED.—The term ‘‘diversified’’, 

18 with respect to a fund, trust, or plan, means that 

19 the fund, trust, or plan does not have a stated policy 

20 of concentrating its investments in any industry, 

21 business, single country other than the United 

22 States, or bonds of a single State. 

23 (4) MEMBER OF CONGRESS.—The term ‘‘Mem24 ber of Congress’’ has the meaning given that term 

25 in section 13101 of title 5, United States Code. 


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1 (5) SECURITY.—The term ‘‘security’’ has the 

2 meaning given that term in section 3(a) of Securities 

3 Exchange Act of 1934 (15 U.S.C. 78c(a)). 

4 (6) WIDELY HELD INVESTMENT FUND.—The 

5 term ‘‘widely held investment fund’’ means a widely 

6 held investment fund described in 13104(f)(8) of 

7 title 5, United States Code. 

8 (b) DIVESTMENT OF ASSETS.— 

9 (1) IN GENERAL.—Except as provided in sub10 section (c), no Member of Congress, spouse of a 

11 Member of Congress, or dependent child of a Mem12 ber of Congress may have a financial interest in a 

13 covered defense contractor, or may own an interest 

14 in or trade (except as a divestment) any stock, bond, 

15 commodity, future, or other form of security the 

16 value of which is significantly based upon a covered 

17 defense contractor or an entity in the defense indus18 trial base, including an interest in a hedge fund, a 

19 derivative, option, or other complex investment vehi20 cle. 

21 (2) IMPLEMENTATION.— 

22 (A) CURRENT MEMBERS.— 

23 (i) IN GENERAL.—Except as provided 

24 in clause (ii), an individual who is a Mem25 ber of Congress on the date of the enactVerDate Sep 11 2014 05:23 Feb 08, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7264.IH H7264

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1 ment of this Act, or the spouse or depend2 ent child of such an individual, shall com3 plete the divestment of any asset described 

4 in paragraph (1) by not later than 120 

5 days after the date of enactment of this 

6 Act. 

7 (ii) CERTAIN ASSETS.—For an asset 

8 described in paragraph (1) that is an inter9 est in a hedge fund, venture capital fund, 

10 or other privately held complex investment 

11 vehicle, an individual who is a Member of 

12 Congress on the date of enactment of this 

13 Act, or the spouse or dependent child of 

14 such an individual, shall complete the di15 vestment of the asset by not later than 180 

16 days after the date of enactment of this 

17 Act. 

18 (iii) APPLICATION.—This subpara19 graph shall apply to a covered defense con20 tractor that is performing or has per21 formed a contract for the Department of 

22 Defense during the 5-year period preceding 

23 the date of the enactment of this Act. 

24 (B) NEW MEMBERS.— 


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1 (i) IN GENERAL.—Except as provided 

2 in clause (ii), an individual who becomes a 

3 Member of Congress after the date of en4 actment of this Act, or who is the spouse 

5 of such an individual, shall complete the 

6 divestment of any asset described in para7 graph (1) by not later than 120 days after 

8 the date on which the individual becomes a 

9 Member of Congress. 

10 (ii) CERTAIN ASSETS.—For an asset 

11 described in paragraph (1) that is an inter12 est in a hedge fund, venture capital fund, 

13 or other privately held complex investment 

14 vehicle, an individual who becomes a Mem15 ber of Congress after the date of enact16 ment of this Act, or who is the spouse or 

17 dependent child of such an individual, shall 

18 complete the divestment of the asset by not 

19 later than 180 days after the date on 

20 which the individual becomes a Member of 

21 Congress. 

22 (iii) APPLICATION.—This subpara23 graph shall apply to a covered defense con24 tractor that is performing or has per25 formed a contract for the Department of 


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1 Defense during the 5-year period preceding 

2 the date on which the individual becomes a 

3 Member of Congress. 

4 (C) DIVESTMENT OF ASSETS RECEIVED

5 WHILE A MEMBER.—An individual serving as a 

6 Member of Congress, or the spouse or depend7 ent child of such an individual, who receives 

8 any asset described in paragraph (1) during the 

9 period of such service, such as from an inherit10 ance, shall complete the divestment of the asset 

11 by not later than 120 days after the date on 

12 which the individual or spouse receives the 

13 asset. 

14 (D) QUALIFIED BLIND TRUST PROHIB15 ITED.—Placing an asset described in paragraph 

16 (1) in a qualified blind trust (as that term is 

17 defined in section 13104(f)(3) of title 5, United 

18 States Code), or any other blind trust, shall not 

19 qualify as a divestment under such paragraph 

20 for purposes of compliance with the require21 ments of this Act. 

22 (c) EXCEPTIONS.—Nothing in this section shall be 

23 construed to prevent— 

24 (1) a Member of Congress or their spouse or 

25 dependent child from owning or trading— 


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1 (A) a widely held investment fund, if the 

2 widely held investment fund— 

3 (i) does not present a conflict of inter4 est; 

5 (ii) is diversified; and 

6 (iii) in the literature it distributes to 

7 prospective and current investors or par8 ticipants, does not indicate the objective or 

9 practice of concentrating its investments in 

10 covered defense contractors or entities in 

11 the defense industrial base, if the Member 

12 of Congress, or the spouse or dependent 

13 child of such an individual, neither exer14 cises control nor has the ability to exercise 

15 control over the financial interests held in 

16 the fund; 

17 (B) shares of Settlement Common Stock 

18 issued under section 7(g)(1)(A) of the Alaska 

19 Native Claims Settlement Act (43 U.S.C. 

20 1606(g)(1)(A)); 

21 (C) shares of Settlement Common Stock, 

22 as defined in section 3 of the Alaska Native 

23 Claims Settlement Act (43 U.S.C. 1602); 

24 (D) a United States Treasury bill, note, or 

25 bond; 


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1 (E) an investment fund held in a Federal, 

2 State, or local government employee retirement 

3 plan; or 

4 (F) an interest in an investment fund reg5 istered as an investment company under section 

6 3 of the Investment Company Act of 1940 (15 

7 U.S.C. 80a–3) that is diversified; and 

8 (2) a spouse or dependent child of a Member of 

9 Congress from trading any asset described in sub10 section (b)(1) that is not owned by the spouse, child, 

11 or Member of Congress in the course of performing 

12 the primary occupation of the spouse or child. 

13 (d) CIVIL FINES.—The Attorney General or the Spe14 cial Counsel may bring a civil action in the appropriate 

15 United States district court against any Member of Con16 gress or their spouse or dependent child who engages in 

17 conduct constituting a violation of this section and, upon 

18 proof of such conduct by a preponderance of the evidence, 

19 such Member of Congress, spouse, or child (as the case 

20 may be) shall be subject to a civil penalty of not more 

21 than $50,000 for each violation. The imposition of a civil 

22 penalty under this subsection does not preclude any other 

23 criminal or civil statutory, common law, or administrative 

24 remedy, which is available by law to the United States or 

25 any other person. 


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1 (e) NONRECOGNITION OF GAIN.— 

2 (1) IN GENERAL.—Paragraph (1) of section 

3 1043(b) of the Internal Revenue Code of 1986 is 

4 amended— 

5 (A) by striking ‘‘and’’ at the end of sub6 paragraph (A); 

7 (B) by redesignating subparagraph (B) as 

8 subparagraph (C); 

9 (C) by inserting after subparagraph (A) 

10 the following new subparagraph: 

11 ‘‘(B) any Member of Congress or Member 

12 of Congress-elect, but only with respect to a di13 vestment of property required by the Stop Poli14 ticians Profiting from War Act of 2024, and’’; 

15 and 

16 (D) by striking ‘‘subparagraph (A)’’ in 

17 subparagraph (C), as so redesignated, and in18 serting ‘‘subparagraph (A) or (B), whichever is 

19 applicable’’. 

20 (2) CERTIFICATE OF DIVESTITURE.—Subpara21 graph (B) of section 1043(b)(2) of such Code is 

22 amended— 

23 (A) by striking ‘‘or by’’ and inserting 

24 ‘‘by’’; and 


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1 (B) by inserting ‘‘, or by the applicable 

2 congressional ethics committee (as that term is 

3 defined in section 13101 of title 5), in the case 

4 of Members of Congress, Members of Congress5 elect, and spouses of Members of Congress and 

6 Members of Congress-elect’’ after ‘‘judicial offi7 cers’’. 

8 (3) EFFECTIVE DATE.—The amendments made 

9 by this subsection shall apply to sales of property 

10 after the date of the enactment of this Act. 

11 (f) INTERPRETIVE GUIDANCE.—The Select Com12 mittee on Ethics of the Senate and the Committee on Eth13 ics of the House of Representatives shall issue interpretive 

14 guidance regarding relevant terms not defined in this Act. 

Æ 


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