United States HR 7357: TSP Fiduciary Security Act of 2026

Bill Text

I 
119THCONGRESS 
2
DSESSION 
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  
FEBRUARY4, 2026 
Mr.  F
INE(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-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This  Act  may  be  cited  as  the  ‘‘TSP  Fiduciary  Secu-4
rity Act of 2026’’. 5
SEC. 2. FINDINGS. 6
Congress finds the following: 7
(1)  The  Federal  Retirement  Thrift  Investment  8
Board  has  a  fiduciary  duty  to  manage  the  Thrift  9
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Savings Fund in the best interest of the beneficiaries 1
of the Fund. 2
(2)   The   principal   beneficiaries   of   the   Thrift   3
Savings  Fund  are  the  civil  servants  of  the  United  4
States,  and  members  of  the  uniformed  services,  who  5
are  tasked  with  defending  the  national  security  of  6
the United States. 7
(3)  The  duty  of  the  Federal  Retirement  Thrift  8
Investment   Board   to   manage   the   Thrift   Savings   9
Fund  in  the  best  interests  of  the  beneficiaries  of  the  10
Fund  includes  a  duty  not  to  harm  the  national  secu-11
rity of the United States. 12
SEC.  3.  FIDUCIARY  RESPONSIBILITIES  WITH  RESPECT  TO  13
THRIFT SAVINGS FUND. 14
Section   8477   of   title   5,   United   States   Code,   is   15
amended— 16
(1) in subsection (b)(1)— 17
(A)  in  subparagraph  (B),  by  striking  ‘‘;  18
and’’ and inserting a semicolon; 19
(B)  in  subparagraph  (C),  by  striking  the  20
period at the end and inserting ‘‘; and’’; and 21
(C) by adding at the end the following: 22
‘‘(D)  to  the  maximum  extent  practicable,  by  23
preventing  the  investments  of  the  Thrift  Savings  24
Fund  (or  portions  thereof),  and  the  exercise  of  vot-25
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ing   rights   associated   with   any   such   investments,   1
from  harming  the  national  security  of  the  United  2
States.’’; and 3
(2)  in  subsection  (e),  by  adding  at  the  end  the  4
following: 5
‘‘(9)(A)  Notwithstanding  any  other  provision  of  this  6
subsection,  no  fiduciary  shall  be  personally  liable  for  any  7
monetary damages, or be assessed any civil penalty, under 8
this subsection with respect to a breach of the requirement 9
under subsection (b)(1)(D). 10
‘‘(B)  Subparagraph  (A)  shall  cease  to  have  effect  be-11
ginning on January 1, 2027.’’. 12
SEC.  4.  REVIEW  OF  THRIFT  SAVINGS  FUND  FOR  COMPLI-13
ANCE WITH FIDUCIARY DUTIES. 14
(a)  I
NGENERAL.—Section  8477(f)  of  title  5,  United  15
States Code, is amended— 16
(1) by inserting ‘‘(1)’’ after ‘‘(f)’’; and 17
(2) by adding at the end the following: 18
‘‘(2)(A) Not later than 1 year after the date of enact-19
ment  of  this  paragraph,  the  Secretary  of  Labor,  in  con-20
sultation with the Secretary of Defense, the Attorney Gen-21
eral,  the  Secretary  of  Homeland  Security,  and  the  Sec-22
retary of the Treasury, shall prescribe regulations to carry 23
out  subsection  (b)(1)(D)  with  respect  to  each  of  the  fol-24
lowing: 25
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‘‘(i)   The   investments   of   the   Thrift   Savings   1
Fund,   which   shall   include   the   establishment   of   2
standards   by   which   compliance   with   subsection   3
(b)(1)(D)  with  respect  to  the  investments  of  the  4
Thrift  Savings  Fund  (or  portions  thereof)  shall  be  5
determined. 6
‘‘(ii)  The  exercise  of  voting  rights  associated  7
with  the  investments  of  the  Thrift  Savings  Fund  (or  8
portions thereof). 9
‘‘(B)  The  regulations  prescribed  under  subparagraph  10
(A)(ii) shall include— 11
‘‘(i)  the  establishment  of  a  process  by  which  the  12
exercise  of  voting  rights  described  in  subparagraph  13
(A)(ii)  shall  be  reviewed  by  the  Secretary  of  Labor,  14
in  consultation  with  the  Secretary  of  Defense,  the  15
Attorney  General,  the  Secretary  of  Homeland  Secu-16
rity,  and  the  Secretary  of  the  Treasury,  for  compli-17
ance  with  su