ENGROSSED HOUSE BILL NO. 1561 - Foreign Adversary Divestment Act of 2025

• Prohibits all state and local managed funds, public pension funds, and university endowments from holding investments in foreign adversaries (countries designated by U.S. Secretary of State as hostile or Countries of Particular Concern), companies owned or controlled by foreign adversaries, and entities domiciled within foreign adversaries.

• Requires divestment of prohibited investments by January 1, 2036 (or 10 years after the effective date), reducing holdings to no more than 0.0005% of total assets under management; newly designated foreign adversaries have 10 years from their designation date to divest.

• Directs the State Treasurer to develop a notification system identifying foreign adversaries and requires entities subject to the act to identify prohibited companies within 6 months of enactment using public information, asset managers, and consultation with other institutional investors.

• Grants immunity from civil liability to public pension systems (Oklahoma Firefighters, Police, Law Enforcement, Teachers', Public Employees Retirement Systems, and Uniform Retirement System for Justices and Judges), their boards, and employees for asset losses resulting from divestment compliance; provides indemnification for legal defense costs.

• Takes effect November 1, 2025.