PEACE Act of 2025
- Bill Number
- H.R. 4346
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2025-10-03: Placed on the Union Calendar, Calendar No. 277.
- Last Updated
- 2026-05-12T20:20:22Z
AI-Generated Summary
Purpose of the Legislation
The Preventing the Escalation of Armed Conflict in Europe Act of 2025 (PEACE Act of 2025) aims to promote a peaceful resolution to the Russia-Ukraine conflict. It does this by requiring the U.S. Department of the Treasury to impose financial restrictions on certain foreign banks and to redirect frozen Russian assets toward supporting Ukraine, in response to ongoing Russian military actions against Ukraine.
Key Provisions
- Findings (Section 2): The bill outlines congressional observations of Russian attacks on Ukrainian infrastructure and civilians (e.g., missile strikes in March-July 2025) and U.S. presidential statements urging peace talks while warning of potential sanctions.
- Sanctions on Foreign Financial Institutions (Section 3): Within 180 days of enactment, the Treasury Secretary must issue rules to block or strictly limit U.S. correspondent accounts (bank accounts used by foreign banks to process U.S. dollar transactions) or payable-through accounts (accounts allowing foreign banks to route payments through U.S. systems) for any foreign bank that knowingly provides significant financial services to:
- Individuals or entities already sanctioned under Executive Order 14024 (blocking property of certain Russian-linked persons) or Title II of the Countering America's Adversaries Through Sanctions Act (CAATSA, a 2017 law targeting Russia, Iran, and North Korea).
- Banks restricted under Directive 2 of EO 14024.
- Entities in Annex 1 of Directive 3 under EO 14024.
- Any foreign entity operating in Russia's energy sector.
- Violations carry civil penalties up to $377,700 or twice the transaction value, and criminal penalties including fines up to $1,000,000 and up to 20 years in prison for willful acts.
- Report on Specific Entities (Section 4): Within 90 days, the Treasury Secretary must report to Congress on whether major Russian energy companies—Gazprom, Rosneft, and Lukoil—qualify as entities operating in Russia's energy sector under the sanctions.
- Waiver Authority (Section 5): The President can waive sanctions on a foreign bank for up to 180 days (renewable) if it helps resolve the national emergency declared in EO 14024 or serves U.S. national interests, with a required report to Congress explaining the reasons.
- Transfer of Russian Assets (Section 6): Within 90 days, the Treasury Secretary must seize or transfer frozen Russian assets (e.g., funds from Russia's Central Bank, National Wealth Fund, or Ministry of Finance held in U.S. institutions) to the Ukraine Support Fund (created under the 2024 REPO for Ukrainians Act). These funds can support Ukraine's government or buy defense equipment. The President has the same seizure powers as under the REPO Act. A waiver is possible for up to 1 year total if Russia takes steps toward peace or for U.S. national interests.
- Termination (Section 7): The law ends 30 days after the President certifies to Congress that Russia has stopped actions threatening Ukraine's sovereignty, or automatically after 5 years.
Significant Changes to Existing Law
- Expands on EO 14024 (2022, blocking Russian assets and transactions) and CAATSA by adding new requirements for Treasury to regulate foreign banks' access to U.S. financial systems specifically tied to Russia's energy sector and ongoing conflict.
- Builds on the REPO for Ukrainians Act (2024) by mandating asset transfers to its Ukraine Support Fund, rather than just authorizing them, and applies seizure powers directly to additional Russian resources reported under existing directives.
- Introduces time-bound implementation (e.g., 90-180 day deadlines) and automatic sunset after 5 years, which were not in prior sanctions frameworks.
Potential Impacts
- Government Agencies: The Treasury Department gains expanded enforcement duties, including new regulations and asset management, potentially increasing workload and requiring coordination with Congress via reports. The President retains flexibility through waivers but must justify them.
- Citizens: U.S. citizens and businesses may face indirect effects from global financial disruptions (e.g., higher energy costs if Russian energy firms are further isolated), but no direct impacts on domestic individuals are specified.
- International Relations: Could pressure Russia economically to negotiate peace by targeting its energy sector and frozen assets (estimated in billions), while bolstering U.S. support for Ukraine. Foreign banks worldwide may limit dealings with Russia to avoid U.S. penalties, potentially straining relations with countries reliant on Russian energy or finance.
Main Stakeholders Affected
- U.S. Government: Treasury Secretary (leads implementation), President (waivers and certifications), and congressional committees (Financial Services in House, Banking in Senate for oversight).
- Foreign Financial Institutions: Banks outside the U.S. that handle Russian transactions risk losing access to U.S. financial systems.
- Russian Entities: Sanctioned persons, energy companies (e.g., Gazprom, Rosneft, Lukoil), and state funds face heightened restrictions and asset seizures.
- Ukraine and Its Government: Benefits from redirected Russian assets for support and defense purchases.
- U.S. Financial Institutions: Must comply with asset transfers and may handle seized funds, including banks, broker-dealers, and other entities defined under U.S. anti-money laundering laws.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens U.S. sanctions regime by linking financial restrictions directly to the Russia-Ukraine conflict, potentially setting precedents for using frozen assets as reparations (e.g., for Ukraine). Penalties align with existing International Emergency Economic Powers Act (IEEPA) authorities but add specificity to energy sector targeting.
- Constitutional: Relies on Congress's power to regulate foreign commerce and declare national emergencies; waivers preserve executive branch flexibility under Article II, but mandatory reporting ensures congressional checks, avoiding overreach concerns.
- Political: Signals bipartisan U.S. commitment to Ukraine amid escalating conflict, using economic leverage to push for ceasefires without direct military involvement. The 5-year sunset and peace-based termination provide an off-ramp, but could escalate tensions if Russia views it as provocative.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Gottheimer, Josh [D-NJ-5], Rep. Barrett, Tom [R-MI-7], Rep. Conaway, Herbert C. [D-NJ-3], Rep. Suozzi, Thomas R. [D-NY-3]
Recent Actions
- 2025-10-03: Placed on the Union Calendar, Calendar No. 277.
- 2025-10-03: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-324.
- 2025-10-03: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-324.
- 2025-07-22: Ordered to be Reported (Amended) by the Yeas and Nays: 53 - 1.
- 2025-07-22: Committee Consideration and Mark-up Session Held
- 2025-07-10: Referred to the House Committee on Financial Services.
- 2025-07-10: Introduced in House
- 2025-07-10: Introduced in House
Bill Versions
- Preventing the Escalation of Armed Conflict in Europe Act of 2025 — issued 2025-07-10 — PDF (6 pages)
- Preventing the Escalation of Armed Conflict in Europe Act of 2025 — issued 2025-10-03 — PDF (12 pages)