Sponsors (5)
The bill shifts TSP/TSF investment policy toward national-security-based exclusions and greater transparency—trading potentially lower investment returns and higher compliance costs for reduced exposure to adversary-linked companies and clearer government oversight.
Federal employees' Thrift Savings Fund (TSP/TSF) investments will be managed to avoid companies or votes that could pose risks to U.S. national security, reducing exposure to adversarial influence.
Federal beneficiaries gain clearer oversight and accountability because the bill clarifies FRTIB fiduciary obligations and requires annual reporting to Congress on reviewed investments and enforcement outcomes.
Participants in the TSP mutual fund window and the broader TSP will have reduced exposure to PRC-linked firms and related geopolitical/regulatory risks, which may lower certain systemic vulnerabilities.
Federal employees (and some middle-class participants) may face lower returns and reduced retirement savings because excluding or restricting investments (including PRC-linked securities) narrows diversification and may omit higher-yield opportunities.
Taxpayers and fund participants could bear higher administrative, monitoring, and compliance costs as the TSP and mutual fund providers screen, restructure, and enforce exclusions and voting restrictions.
Embedding vague national-security criteria and defining broad 'covered country'/'covered vote' categories risks politicizing investment decisions and creating legal disputes or inconsistent policies about which entities or votes are excluded.
Based on analysis of 5 sections of legislative text.
Imposes a national-security fiduciary duty on Thrift Savings Fund fiduciaries, requires Labor rulemaking and reporting, and bars TSP-window mutual funds from holding securities of entities based in the People's Republic of China.
Introduced February 4, 2026 by Randy Fine · Last progress February 4, 2026
Creates a new, explicit fiduciary duty for trustees and other fiduciaries of the federal Thrift Savings Fund to, to the maximum extent practicable, prevent fund investments and voting from harming U.S. national security. It adds a temporary personal-liability protection for fiduciaries through January 1, 2027; requires the Department of Labor (in consultation with Defense, Homeland Security, Justice, and Treasury) to issue implementing regulations within one year and to report annually on reviews and enforcement; and bars any mutual fund offered through the TSP mutual fund window from holding securities of entities based in the People’s Republic of China or their subsidiaries.