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Congress·In Committee

Congress Proposes Ban on Retirement Fund Investments in China and Other Foreign Adversaries

PARSA

12 months ago·View on Congress.gov

Legislative Progress

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Key Points

  • This bill, called the Protecting Americans' Retirement Savings Act, would stop 401(k)s and other retirement plans from putting new money into companies owned or controlled by 'foreign adversaries.' This includes countries like China, Russia, North Korea, and Iran.
  • It also bans retirement funds from investing in 'sanctioned entities.' These are specific companies the U.S. government has flagged for things like supporting foreign militaries, using forced labor, or threatening national security.
  • If a retirement plan already has money in these companies, they do not have to sell it immediately. However, the managers must tell the government exactly how much they own, which companies they are invested in, and why they are keeping those investments.
  • The bill also protects personal information by banning retirement plans from sharing any data about the people in the plan with these foreign companies or governments.
  • The goal is to protect Americans' savings from being used to fund foreign militaries or industries that work against U.S. interests. It also aims to reduce the risk that these investments could lose value if international tensions rise.
  • If passed, the government would have six months to write the specific rules, and the ban would fully take effect within one year.
Economy FinanceNational Security Foreign Policy

Impact Analysis

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Mar 11, 2025House

Referred to the House Committee on Education and Workforce.

Mar 11, 2025

Introduced in House

What Happens Next

Projected impacts based on AI analysis

Within 180 days of enactment

Government must issue final regulations implementing the new investment restrictions

The Department of Labor would spell out exactly which investments are banned and how plans must report existing holdings, giving retirement plan managers clear rules to follow.

Within 1 year of enactment

New investment ban and disclosure requirements take full effect

Retirement plans would no longer be allowed to put new money into companies tied to foreign adversaries like China, Russia, North Korea, or Iran. Plans with existing investments must disclose them in detail.

Related News

3 articles
National Review·12 months ago

Jim Banks Introduces Bill to Prevent Pension Plans from Investing in Chinese Companies

Senator Jim Banks (R., Ind.) is introducing the Protecting Americans' Retirement Savings Act to prohibit 401(k)s and other retirement plans from funding companies based in China, Russia, Iran, and other adversarial countries. The bill mandates fiduciaries to disclose all assets in sanctioned entities.

R+
Savant Wealth Management·8 months ago

Legislative Change on the Horizon: What Plan Sponsors Need to Know

The Protecting Americans' Retirement Savings Act (S. 928), introduced in March 2025, proposes to amend ERISA by prohibiting retirement-plan investments in companies associated with foreign adversaries and sanctioned countries, reflecting a growing intersection of national security and finance.

C=
Bloomberg Law·over 2 years ago

ERISA Allows Plan Fiduciaries to Pursue More Than Just Money

Congress is considering the Protecting Americans' Retirement Savings Act (PARSA), which would amend ERISA to block pension plans from making new investments in companies controlled by or based in 'foreign adversary' countries and require disclosure of existing investments.

CL=

Source Information

Document Type

Congressional Bill

Official Title

PARSA

Bill NumberHR 2067
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Education and Workforce.

Sponsor

Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.