TSP Fiduciary Security Act of 2025
Congress Proposes Ban on Chinese Investments for Federal Employee Retirement Accounts
Stalled
No legislative action in over 90 days.
Legislative Progress
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.
Impact Analysis
Personal Impact
Life & Work
This bill directly changes how the Thrift Savings Plan (TSP) — the main retirement savings account for about 6.5 million federal workers — is invested. The new national security restrictions could limit the range of available investment options and potentially affect returns if certain high-performing international funds are restricted. On the other hand, supporters argue it protects workers by ensuring their savings don't inadvertently fund adversaries. The net effect on returns is uncertain.
Programs
Milestones
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
6 articles
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.
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.
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.
Source Information
Document Type
Congressional Bill
Official Title
TSP Fiduciary Security Act of 2025
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.