In a recent move aimed at fortifying national security through financial means, Oklahoma Representative Collin Duel has introduced House Bill 1561, dubbed the "Foreign Adversary Divestment Act of 2025." This legislation, if passed, will mandate state pensions and state university endowment funds to eliminate investments in nations deemed hostile to the U.S. According to an announcement by the Oklahoma House of Representatives, the act is designed to prevent Oklahoma's public investment funds from being exposed to risk in countries that are of concern and to stop financing the military technology and surveillance apparatus of foreign adversaries.
The bill's architect, Rep. Duel, a Republican from Guthrie, touts his military background as an Army Ranger with four combat deployments to Afghanistan as the foundation for his understanding of national security threats. Duel expressed his concerns, stating to the Oklahoma House of Representatives, "This is a matter of national security, ensuring Oklahoma public investment dollars are not put at risk in countries of concern." He emphasizes the importance not just for the safeguarding of Oklahomans' savings and investments, but also for protective measures against potential threats to Americans at a larger scale.
Joining Rep. Duel in this initiative is co-author Rep. Mark Lepak, a Republican from Claremore. Lepak spelled out additional benefits of the proposed act, highlighting the security it would offer to state pensioners against foreign entities seeking to cause financial damage. "As we continually seek to protect the retirement benefits of our state's pensioners, this bill adds the additional layer of security from foreign interests that might seek to do them immeasurable financial harm," Lepak said in the Oklahoma House of Representatives announcement.
The bill outlines specific actions to be taken regarding the divestment process. All state and local managed funds would be prohibited from holding investments in any foreign adversary, state-owned enterprise of a such adversary, or any company or entity that is domiciled within, owned, or controlled by a foreign adversary. The Oklahoma state treasurer has been charged with establishing a notification system to assist in identifying the entities that fall under the restrictions of this act.
With a stipulated timeline, House Bill 1561 requires that divestment efforts begin immediately and be completed by January 1, 2028, or within two years of the act's effective date, whichever comes first. The targeted objective of this act is to reduce prohibited investments to less than 0.05% of the total market value of assets under management by state or local funds. HB1561 has been slated for consideration in the next legislative session, which commences today. If enacted, the divestment legislation will go into effect on November 1st.
