This bill changes how the Federal Retirement Thrift Investment Board manages the Thrift Savings Fund (TSP)—the retirement savings plan for federal employees and military members. Currently, the board's main job is to manage the fund in the best interest of the people saving for retirement. This bill adds a new requirement: the board must also make sure TSP investments don't harm U.S. national security.

Specifically, the bill prevents TSP money from being invested in companies on U.S. government lists of security concerns, particularly Chinese military companies and entities subject to export controls. It also restricts how the fund votes on shareholder issues—for example, the fund can't vote to approve business deals that would move critical defense technology to countries like China, Russia, Iran, or North Korea. The bill also completely blocks TSP mutual fund investments in Chinese companies.

To make this work, the bill requires the Secretary of Labor to write new rules (in consultation with Defense, Justice, Homeland Security, and Treasury departments) explaining exactly which investments and votes are allowed. The board won't be held personally liable for following these new national security rules until January 1, 2027, giving them time to adjust. Starting in 2027, the Secretary of Labor must report annually to Congress about which investments were reviewed and what happened with them.