summary
Introduced
02/06/2026
02/06/2026
In Committee
02/06/2026
02/06/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Creates the Foreign Adversary Divestment Act. Defines "foreign adversary" as the People's Republic of China, the Russian Federation, the Islamic Republic of Iran, the Democratic People's Republic of Korea, the Republic of Cuba, or any other entity deemed to be a foreign adversary by the Governor in consultation with the Director of the Illinois Emergency Management Agency and Office of Homeland Security. Provides that all State-managed funds and local-managed funds are prohibited from holding investments in any foreign adversary, State-owned enterprise of a foreign adversary, company domiciled within a foreign adversary, or company owned or controlled by a foreign adversary, State-owned enterprise of a foreign adversary, company domiciled within a foreign adversary, or other entity within a foreign adversary. Provides that all State-managed funds and local-managed funds are prohibited from investing or depositing public funds into any bank that is domiciled or has its principal place of business in a foreign adversary. Requires all State-managed funds to immediately in good faith begin divestment of prohibited holdings under the Act. Provides that total divestment must be achieved by January 1, 2028, or 2 years after the effective date of the Act, whichever is earlier. Requires the Illinois State Board of Investment to identify companies subject to the Act and to include those companies in a list of restricted companies to be distributed to each State-managed fund and local-managed fund. Makes other changes. Contains a severability provision.
AI Summary
This bill, titled the Foreign Adversary Divestment Act, aims to prevent Illinois public investment funds, referred to as "State-managed funds" and "local-managed funds," from investing in entities associated with designated "foreign adversaries," which include China, Russia, Iran, North Korea, Cuba, and any others identified by the Governor and the Director of the Illinois Emergency Management Agency. Specifically, these funds are prohibited from holding investments in foreign adversaries themselves, state-owned enterprises of foreign adversaries, companies based in foreign adversary countries, or companies owned or controlled by such entities. Additionally, public funds cannot be deposited into banks domiciled or primarily operating in foreign adversary nations. The bill mandates that State-managed funds must immediately begin selling off these prohibited investments, with complete divestment required by January 1, 2028, or two years after the bill becomes law, whichever comes first. The Illinois State Board of Investment will be responsible for identifying these restricted companies and providing a list to all relevant funds to ensure compliance. The term "domicile" refers to the country where a company is registered, where its main business activities occur, or where the majority of its ownership is held.
Sponsors (1)
Last Action
Referred to Assignments (on 02/06/2026)
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