I 
117TH CONGRESS 
1ST SESSION H. R. 3295 
To amend title 5, United States Code, to prohibit sums in the Thrift Savings 
Fund from being invested in any security of an entity based in the 
People’s Republic of China, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 18, 2021 
Mr. BANKS introduced the following bill; which was referred to the Committee 
on Oversight and Reform 
A BILL 
To amend title 5, United States Code, to prohibit sums 
in the Thrift Savings Fund from being invested in any 
security of an entity based in the People’s Republic of 
China, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Prohibiting TSP Investment in China Act’’. 
(b) FINDINGS.—Congress finds the following: 
(1) The Thrift Savings Fund invests more than 
$700,000,000,000 on behalf of plan participants. As 
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the guardian of the retirement funds of approxi-
mately 6,000,000 Federal civilian and military plan 
participants, it is critical that sums in the Thrift 
Savings Fund are not invested in securities linked to 
the economy of the People’s Republic of China. 
(2) Companies headquartered in the People’s 
Republic of China have repeatedly committed cor-
porate espionage, violated sanctions imposed by the 
United States, flouted international property laws, 
committed theft, and failed to comply with audit and 
regulatory standards designed to safeguard inves-
tors. 
(3) The Thrift Savings Plan is known for its 
low management fees and comprehensive array of in-
vestment strategies. The provisions of this Act, and 
the amendments made by this Act, will not increase 
fees imposed on participants of the Thrift Savings 
Plan. 
(4) The November 2017 selection of the MSCI 
ACWI Index by the Federal Retirement Thrift In-
vestment Board, initially scheduled to be effective in 
2020, would violate the terms of subsection (i) of 
section 8438 of title 5, United States Code, as added 
by section 2(a) of this Act. 
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SEC. 2. PROHIBITION ON ANY TSP FUND INVESTING IN EN-
TITIES BASED IN THE PEOPLE’S REPUBLIC 
OF CHINA. 
(a) IN GENERAL.—Section 8438 of title 5, United 
States Code, is amended by adding at the end the fol-
lowing: 
‘‘(i) Notwithstanding any other provision of this sec-
tion, no fund established or overseen by the Board may 
include an investment in any security of— 
‘‘(1) an entity based in the People’s Republic of 
China; or 
‘‘(2) any subsidiary that is owned or operated 
by an entity described in paragraph (1).’’. 
(b) DIVESTITURE OF ASSETS.—Not later than 30 
days after the date of enactment of this Act, the Federal 
Retirement Thrift Investment Board established under 
section 8472(a) of title 5, United States Code, shall— 
(1) review whether any sums in the Thrift Sav-
ings Fund are invested in violation of subsection (i) 
of section 8438 of that title, as added by subsection 
(a) of this section; 
(2) if any sums are invested in the manner de-
scribed in paragraph (1), divest those sums in a 
manner that is consistent with the legal and fidu-
ciary duties provided under chapter 84 of that title, 
or any other applicable provision of law; and 
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(3) reinvest any sums divested under paragraph 
(2) in investments that do not violate subsection (i) 
of section 8438 of that title, as added by subsection 
(a) of this section. 
SEC. 3. PROHIBITION ON INVESTMENT OF TSP FUNDS IN 
ENTITIES BASED IN THE PEOPLE’S REPUBLIC 
OF CHINA THROUGH THE TSP MUTUAL FUND 
WINDOW. 
Section 8438(b)(5) of title 5, United States Code, is 
amended by adding at the end the following: 
‘‘(E) A mutual fund accessible through a mutual fund 
window authorized under this paragraph may not include 
an investment in any security of— 
‘‘(i) an entity based in the People’s Republic of 
China; or 
‘‘(ii) any subsidiary that is owned or operated 
by an entity described in clause (i).’’. 
Æ 
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