IL SB3494

Creates the Foreign Adversary Divestment Act requiring State-managed and local-managed funds to divest from investments in seven designated foreign adversaries: China, Russia, Iran, North Korea, Cuba, Venezuela (Maduro regime), and Syria, plus any other entities designated by the Governor in consultation with the Director of the Illinois Emergency Management Agency and Office of Homeland Security.

Prohibits State-managed and local-managed funds from holding investments in foreign adversaries, their state-owned enterprises, companies domiciled within them, or companies owned/controlled by them; also prohibits depositing public funds in banks domiciled or principally located in foreign adversaries.

Requires State-managed funds to immediately begin good faith divestment with complete divestment by January 1, 2026, or 2 years after the Act's effective date, whichever is earlier, defined as reducing prohibited investments to no more than 0.05% of total assets under management.

Directs the Illinois State Board of Investment to identify restricted companies within 6 months of the Act's effective date by reviewing publicly available information, contacting asset managers and institutional investors, and potentially retaining independent research firms to compile a list distributed to all State-managed and local-managed funds.

Preserves existing State and federal law, fiduciary requirements, and sound investment criteria unless compliance would require violating the Act's divestment prohibitions.