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Congress·In Committee·11 months ago

Congress Proposes Ban on Chinese Investments for Federal Employee Retirement Accounts

Also known as: TSP Fiduciary Security Act of 2025

Legislative Progress

✓ Filed
Review
Senate
House
President

Impact Analysis

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

Key Points

  • This bill changes how the Thrift Savings Plan (TSP)—the retirement system for federal workers and military members—is managed. It requires the board in charge to make sure that investments do not harm U.S. national security.
  • The plan would be banned from investing in companies linked to the Chinese military or those on government watchlists. This affects millions of current and former federal employees and service members who have money in the TSP.
  • The bill also blocks the 'mutual fund window' in the TSP from offering any funds that include companies based in China. This is meant to ensure that the retirement savings of those who serve the country are not funding foreign interests that might work against the U.S.
  • New rules would be created for how the fund votes on company decisions. It would prevent the fund from supporting moves that outsource critical defense technology or materials to countries like China, Russia, Iran, or North Korea.
  • The Secretary of Labor would have one year to set up these new regulations. To give the people managing the money time to adjust, they would not be personally liable for these specific security rules until 2027.
National Security Foreign PolicyEconomy FinanceLabor Employment

Milestones

2 milestones2 actions
Apr 9, 2025Senate

Read twice and referred to the Committee on Homeland Security and Governmental Affairs.

Apr 9, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

Within 1 year of enactment

New regulations on TSP investment restrictions and proxy voting rules are due

The Secretary of Labor, working with Defense, Homeland Security, Treasury, and the Attorney General, must finalize rules that spell out exactly which investments are banned and how shareholder voting must be handled. This is when TSP participants will learn the specifics of what changes.

Within 2 years of enactment

First annual report to Congress on TSP compliance

Within 2 years of enactment, the Secretary of Labor must submit the first report to Congress detailing which TSP investments and proxy votes were reviewed for national security compliance and the results. This provides transparency on how the new rules are working.

Related News

6 articles
FedSmith·12 days ago

New Legislation Seeks To Prohibit TSP Investment In Adversary Nations

Legislation introduced by Rep. Randy Fine (R-FL) would prohibit the Thrift Savings Plan (TSP) from investing in adversary nations like China, Russia, and Iran. The bill aims to incorporate national security interests into the fiduciary responsibilities of the board managing the $1 trillion fund.

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Florida Politics·24 days ago

Delegation for 2.6.26: Open for business — spaced — Iran — Artemis — whales

Rep. Randy Fine introduced the TSP Fiduciary Security Act to stop the federal retirement board from directing money to hostile nations. The bill includes exceptions for defense and critical technology but specifically bans China-based companies from being offered in the mutual fund window.

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The Floridian·25 days ago

Randy Fine Introduces Bill Preventing TSP Investment in Adversarial Countries

Representative Randy Fine (R-FL) has introduced legislation to prevent the investment of Thrift Savings Plan (TSP) funds in countries deemed adversarial. The TSP Fiduciary Security Act blends national security interests into the system to prevent retirement funds from supporting foreign threats.

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Source Information

Document Type

Congressional Bill

Official Title

TSP Fiduciary Security Act of 2025

Bill NumberS 1368
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Homeland Security and Governmental Affairs.

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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.