The proposed legislation, known as the Foreign Adversary Divestment Act, aims to protect Idaho's public investment funds from being invested in foreign adversaries that pose a risk to national security. The bill introduces a new chapter to Title 57 of the Idaho Code, which includes definitions of key terms such as "foreign adversary," "divestment," and "state-managed fund." It prohibits state-managed funds from holding investments in foreign adversaries or their state-owned enterprises and mandates that these funds begin divesting from such holdings immediately, with a deadline for total divestment set for June 30, 2026.

Additionally, the bill requires the state treasurer's investment advisory board to conduct an audit by January 1, 2026, to identify companies that fall under the definition of foreign adversaries and to compile a list of restricted companies for state-managed funds. The legislation also includes a severability clause to ensure that if any part of the act is deemed invalid, the remaining provisions will still be enforceable. The act is set to take effect on July 1, 2025, following the declaration of an emergency.