I 
119TH CONGRESS 
2D SESSION 
H. R. 7357 
To amend title 5, United States Code, to address the responsibilities of 
fiduciaries with respect to the Thrift Savings Fund, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 4, 2026 
Mr. FINE (for himself, Mr. HARRIGAN, and Mr. MORAN) introduced the fol-
lowing bill; which was referred to the Committee on Oversight and Gov-
ernment Reform 
A BILL 
To amend title 5, United States Code, to address the respon-
sibilities of fiduciaries with respect to the Thrift Savings 
Fund, 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. 
This Act may be cited as the ‘‘TSP Fiduciary Secu-
rity Act of 2026’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The Federal Retirement Thrift Investment 
Board has a fiduciary duty to manage the Thrift 
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Savings Fund in the best interest of the beneficiaries 
of the Fund. 
(2) The principal beneficiaries of the Thrift 
Savings Fund are the civil servants of the United 
States, and members of the uniformed services, who 
are tasked with defending the national security of 
the United States. 
(3) The duty of the Federal Retirement Thrift 
Investment Board to manage the Thrift Savings 
Fund in the best interests of the beneficiaries of the 
Fund includes a duty not to harm the national secu-
rity of the United States. 
SEC. 3. FIDUCIARY RESPONSIBILITIES WITH RESPECT TO 
THRIFT SAVINGS FUND. 
Section 8477 of title 5, United States Code, is 
amended— 
(1) in subsection (b)(1)— 
(A) in subparagraph (B), by striking ‘‘; 
and’’ and inserting a semicolon; 
(B) in subparagraph (C), by striking the 
period at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(D) to the maximum extent practicable, by 
preventing the investments of the Thrift Savings 
Fund (or portions thereof), and the exercise of vot-
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ing rights associated with any such investments, 
from harming the national security of the United 
States.’’; and 
(2) in subsection (e), by adding at the end the 
following: 
‘‘(9)(A) Notwithstanding any other provision of this 
subsection, no fiduciary shall be personally liable for any 
monetary damages, or be assessed any civil penalty, under 
this subsection with respect to a breach of the requirement 
under subsection (b)(1)(D). 
‘‘(B) Subparagraph (A) shall cease to have effect be-
ginning on January 1, 2027.’’. 
SEC. 4. REVIEW OF THRIFT SAVINGS FUND FOR COMPLI-
ANCE WITH FIDUCIARY DUTIES. 
(a) IN GENERAL.—Section 8477(f) of title 5, United 
States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and 
(2) by adding at the end the following: 
‘‘(2)(A) Not later than 1 year after the date of enact-
ment of this paragraph, the Secretary of Labor, in con-
sultation with the Secretary of Defense, the Attorney Gen-
eral, the Secretary of Homeland Security, and the Sec-
retary of the Treasury, shall prescribe regulations to carry 
out subsection (b)(1)(D) with respect to each of the fol-
lowing: 
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‘‘(i) The investments of the Thrift Savings 
Fund, which shall include the establishment of 
standards by which compliance with subsection 
(b)(1)(D) with respect to the investments of the 
Thrift Savings Fund (or portions thereof) shall be 
determined. 
‘‘(ii) The exercise of voting rights associated 
with the investments of the Thrift Savings Fund (or 
portions thereof). 
‘‘(B) The regulations prescribed under subparagraph 
(A)(ii) shall include— 
‘‘(i) the establishment of a process by which the 
exercise of voting rights described in subparagraph 
(A)(ii) shall be reviewed by the Secretary of Labor, 
in consultation with the Secretary of Defense, the 
Attorney General, the Secretary of Homeland Secu-
rity, and the Secretary of the Treasury, for compli-
ance with subsection (b)(1)(D) with respect to the 
exercise of those rights; and 
‘‘(ii) the establishment of standards by which 
compliance with subsection (b)(1)(D) with respect to 
the exercise of voting rights described in subpara-
graph (A)(ii) shall be determined, including the fac-
tors contributing to a determination that a covered 
vote would not comply with subsection (b)(1)(D). 
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‘‘(C) For the purposes of any regulation prescribed 
under subparagraph (A), the Secretary of Labor shall pre-
sume that— 
‘‘(i) an investment of the Thrift Savings Fund 
(or portions thereof) does not comply with sub-
section (b)(1)(D) if the investment invests in— 
‘‘(I) an entity included on— 
‘‘(aa) the list of Communist Chinese 
military companies maintained under sec-
tion 1237(b) of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal 
Year 1999 (50 U.S.C. 1701 note); or 
‘‘(bb) the entity list maintained by the 
Bureau of Industry and Security of the 
Department of Commerce and set forth in 
Supplement No. 4 to part 744 of title 15, 
Code of Federal Regulations; or 
‘‘(II) a parent, subsidiary, or affiliate of, 
or an entity controlled by, an entity described 
in subclause (I); and 
‘‘(ii) an exercise of voting rights associated with 
any investments of the Thrift Savings Fund (or por-
tions thereof) does not comply with subsection 
(b)(1)(D) if that exercise of voting rights is a cov-
ered vote with respect to a proposal that would— 
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‘‘(I) approve or ratify a transaction, in-
cluding a transaction described in subparagraph 
(D)(ii)(I), that would cause, or would reason-
ably be expected to cause, an entity to which 
the covered vote applies to— 
‘‘(aa) breach any contract with the 
Federal Government to which the entity is 
a party, and under which the consideration 
provided to the entity over the course of 
the 
entire 
contract 
is 
more 
than 
$10,000,000, if the entity has otherwise 
complied with all applicable laws and regu-
lations in fulfilling the responsibilities of 
the entity with respect to the contract; 
‘‘(bb) significantly reduce the produc-
tion of, or the capital expenditure or re-
search and development expenditure with 
respect to, any— 
‘‘(AA) industrial resources, crit-
ical technology items, or materials 
that are essential to the national de-
fense (as those terms are defined in 
section 702 of the Defense Production 
Act of 1950 (50 U.S.C. 4552)); or 
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‘‘(BB) 
emerging 
and 
foundational technology identified by 
the President under section 1758 of 
the Export Controls Act of 2018 (50 
U.S.C. 4817); or 
‘‘(cc) outsource or substantially sell, 
whether to any affiliated entity or joint 
venture, or by contract, to any entity lo-
cated in a covered country, any— 
‘‘(AA) industrial resources, crit-
ical technology items, or materials 
that are essential to the national de-
fense (as those terms are defined in 
section 702 of the Defense Production 
Act of 1950 (50 U.S.C. 4552)); or 
‘‘(BB) 
emerging 
and 
foundational technology identified by 
the President under section 1758 of 
the Export Controls Act of 2018 (50 
U.S.C. 4817); or 
‘‘(II) elect to the board of directors of any 
entity an individual who— 
‘‘(aa) is a director, officer, employee, 
or affiliate of any entity described in clause 
(i)(I); 
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‘‘(bb) at any time during the 5-year 
period preceding the date on which that 
election occurs, was as described in item 
(aa); or 
‘‘(cc) a reasonable investor would be-
lieve supports any proposal described in 
subclause (I). 
‘‘(D) In this paragraph— 
‘‘(i) the term ‘covered country’ means— 
‘‘(I) the People’s Republic of China, the 
Russian Federation, North Korea, Iran, Syria, 
Sudan, Venezuela, or Cuba; 
‘‘(II) any country, the government of which 
the Secretary of State determines has repeat-
edly provided support for acts of international 
terrorism pursuant to— 
‘‘(aa) section 1754(c)(1)(A) of the Ex-
port Control Reform Act of 2018 (50 
U.S.C. 4813(c)(1)(A)); 
‘‘(bb) section 620A of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2371); 
‘‘(cc) section 40 of the Arms Export 
Control Act (22 U.S.C. 2780); or 
‘‘(dd) any other provision of law; or 
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‘‘(III) any other country that the Secretary 
of Labor, in consultation with the Secretary of 
Defense, the Attorney General, the Secretary of 
Homeland Security, and the Secretary of the 
Treasury, designates as posing an undue or un-
necessary risk to the national security of the 
United States; and 
‘‘(ii) the term ‘covered vote’ means a vote in 
favor of (or an abstention with respect to) a pro-
posal to— 
‘‘(I) approve or ratify a transaction involv-
ing an entity, including— 
‘‘(aa) any sale of, or other disposition 
of (whether in a single or a series of trans-
actions) assets or capital stock; and 
‘‘(bb) any merger, consolidation, joint 
venture, partnership, spin-off, reverse spin- 
off, dissolution, restructuring, recapitaliza-
tion, liquidation, or any other business 
combination or strategic transaction; or 
‘‘(II) elect an individual to the board of di-
rectors of the entity that is the subject of the 
proposal.’’. 
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(b) REVIEW OF EXERCISE OF VOTING RIGHTS; RE-
PORT TO CONGRESS.—Section 8438 of title 5, United 
States Code, is amended— 
(1) in subsection (f)— 
(A) by inserting ‘‘(1)’’ after ‘‘(f)’’; and 
(B) by adding at the end the following: 
‘‘(2) For the purposes of paragraph (1), a review of 
the exercise of voting rights for compliance with section 
8477(b)(1)(D), including under the regulations prescribed 
under section 8477(f)(2), shall not be considered to be the 
exercise of voting rights associated with the ownership of 
securities by the Thrift Savings Fund.’’; and 
(2) by adding at the end the following: 
‘‘(i) Not later than 2 years after the date of enact-
ment of this subsection, and annually thereafter, the Sec-
retary of Labor shall submit to the Committee on Home-
land Security and Governmental Affairs of the Senate and 
the Committee on Oversight and Government Reform of 
the House of Representatives a report regarding— 
‘‘(1) for the year covered by the report, the in-
vestments of the Thrift Savings Fund (or portions 
thereof), and the exercise of voting rights associated 
with any such investments, that have been reviewed 
for compliance with section 8477(b)(1)(D); and 
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‘‘(2) the outcome with respect to enforcement of 
each review conducted under paragraph (1) and a 
justification for that outcome.’’. 
SEC. 5. PROHIBITION ON INVESTMENT OF THRIFT SAVINGS 
FUND SUMS IN ENTITIES BASED IN THE PEO-
PLE’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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