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 Act establishes a new chapter in Title 57 of the Idaho Code, which includes definitions for key terms such as "foreign adversary," "divestment," and "state-managed fund." It prohibits all state-managed funds from holding investments in foreign adversaries or their associated entities, as well as from depositing public funds in banks domiciled in these countries. Additionally, the Act mandates that state-managed funds must begin divesting any holdings that violate these provisions.

The legislation also includes a severability clause, ensuring that if any part of the Act is found invalid, the remaining provisions will still be enforceable. An emergency declaration is included, allowing the Act to take effect on July 1, 2026. This initiative reflects the legislative intent to safeguard Idaho's financial interests and align with broader national security objectives by restricting investments that could potentially support adversarial military or surveillance capabilities.