TSP Fiduciary Security Act of 2026

Protection of National Security Interests: The bill creates a duty for the Federal Retirement Thrift Investment Board to ensure that the Fund's investments and voting rights do not harm the national security of the United States (Section 2).

Standardized Security Oversight: The Secretary of Labor, in consultation with other high-level officials, will establish clear standards and a review process to ensure investments and voting rights align with national security needs (Section 4(a)(2)(A)).

Prevention of High-Risk Investments: The bill establishes a presumption that investments are non-compliant if they involve entities on specific high-risk lists, such as Communist Chinese military companies or the Department of Commerce's entity list (Section 4(a)(2)(C)(i)).

Restrictions on Risky Mutual Funds: The bill prevents mutual funds available through the TSP mutual fund window from including investments in any security from an entity based in the People's Republic of China (Section 5).

Limited Liability for Fiduciaries: The bill includes a provision where no fiduciary shall be held personally liable for monetary damages or civil penalties regarding a breach of the new national security investment requirement until January 1, 2027 (Section 3(1)(2)).

Strict Investment Restrictions: The bill creates various presumptions that could restrict investments, such as those involving transactions that might reduce production of critical technology or those involving entities in "covered countries" like Russia, North Korea, Iran, Syria, Sudan, Venezuela, or Cuba (Section 4(a)(2)(C)).