The federal Thrift Savings Plan — the retirement savings program for government employees and military members — would be required to screen its investments for national security risks. The board managing the fund would have a new legal duty to prevent TSP money from being invested in entities that could harm U.S. national security, including companies on the Chinese military companies list or the Commerce Department's entity list. The bill also bans TSP mutual fund window options from investing in any Chinese-based company. The Secretary of Labor, in consultation with defense and intelligence agencies, would write the rules for what counts as a national security risk.
Congressional Summary
This bill incorporates national security interests into management of the Thrift Savings Fund.Specifically, the bill requires fiduciaries that are responsible for managing the fund (i.e., the Federal Retirement Thrift Investment Board) to prevent fund investments and associated votes that harm the national security of the United States, including investments in entities on certain lists maintained by the Department of Defense and the Department of Commerce (e.g., Chinese military companies). The Department of Labor must issue implementing regulations that include these and other standards for compliance.Beginning January 1, 2027, fiduciaries may be held personally liable for monetary damages and may be assessed civil penalties for failing to meet these requirements.The bill also prohibits mutual funds that are accessible through an authorized mutual fund window from investing in any entity that is based in China or any subsidiary of such an entity.
Details
- Congress
- 119th
- Chamber
- Senate
- Status
- summarized
- Action
- Introduced in Senate
- Action Date
- 2025-04-09
- Date Added
- 2026-03-30
- Source
- Congress.gov →
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