The proposed legislation, known as the Foreign Adversary Investment Act, aims to protect Idaho's public investment funds from being allocated to foreign adversaries that pose a risk to national security. The Act establishes a new chapter in Title 57 of the Idaho Code, which defines key terms such as "foreign adversary," "state-managed fund," and "investment." It prohibits state-managed funds from making new investments in foreign adversaries or their associated entities, effective July 1, 2026. This includes restrictions on investments in companies domiciled in foreign adversaries and banks operating within those jurisdictions.

Additionally, the Act clarifies that existing investments made prior to the effective date are exempt from these prohibitions. It emphasizes that the new regulations will not interfere with any existing financial safeguards or fiduciary responsibilities that state-managed funds must adhere to under federal law. The legislation also includes a severability clause, ensuring that if any part of the Act is deemed invalid, the remaining provisions will still be enforceable. An emergency declaration is included, allowing the Act to take effect on the specified date.