H.R. 7357 — TSP Fiduciary Security Act of 2026

This section declares congressional findings that (1) the Federal Retirement Thrift Investment Board has a fiduciary duty to manage the Thrift Savings Fund in the best interest of its beneficiaries; (2) the principal beneficiaries are U.S. civil servants and members of the uniformed services tasked with defending national security; and (3) this duty includes not harming U.S. national security.

This section amends fiduciary responsibilities for the Thrift Savings Fund—the retirement savings plan for federal civilian employees and uniformed service members—by (1) requiring fiduciaries, to the maximum extent practicable, to prevent fund investments (or portions thereof) and related voting rights from harming U.S. national security; and (2) providing that no fiduciary is personally liable for damages or civil penalties for breaching this new requirement prior to January 1, 2027.

This section directs the Secretary of Labor, in consultation with the Secretaries of Defense, Homeland Security, and the Treasury and the Attorney General, to prescribe regulations within one year of enactment establishing standards and a review process to ensure Thrift Savings Fund investments and associated voting rights comply with fiduciary duties under 5 U.S.C. 8477(b)(1)(D). (The Thrift Savings Fund supports the Thrift Savings Plan, a defined-contribution retirement plan for federal civilian employees and uniformed service members.) The regulations presume noncompliance for (1) investments in entities on the list of Communist Chinese military companies (under 50 U.S.C. 1701 note), the Commerce Department Entity List (Supplement No. 4 to 15 C.F.R. pt. 744), or related parents, subsidiaries, affiliates, or controlled entities; and (2) covered votes (i.e., votes in favor of or abstentions on proposals to) approve transactions that breach federal contracts exceeding $10 million, reduce production or R&D of national defense resources or emerging technologies (as defined in 50 U.S.C. 4552 and 4817), outsource such resources or technologies to covered countries, or elect board directors affiliated with listed entities or supporting such proposals. Covered countries include the People's Republic of China, Russia, North Korea, Iran, Syria, Sudan, Venezuela, Cuba; countries determined to have repeatedly supported international terrorism (per 22 U.S.C. 2371, 50 U.S.C. 4813(c)(1)(A), 22 U.S.C. 2780, or similar laws); and others designated by the Secretary of Labor as posing undue national security risk. (Thus, these presumptions restrict Thrift Savings Fund exposure to adversarial investments and proxy positions.)

This section prohibits mutual funds accessible through the Thrift Savings Plan (TSP) mutual fund window from including investments in securities of entities based in the People's Republic of China or subsidiaries owned or operated by such entities. (The TSP is the defined contribution retirement savings plan for federal civilian employees and uniformed services members.)