House Bill No. 1561, known as the Foreign Adversary Divestment Act of 2025, aims to protect Oklahoma public investment funds from being invested in entities associated with foreign adversaries, as designated by the U.S. Secretary of State. The bill mandates that all state and local managed funds must divest from any investments in foreign adversaries, companies controlled by them, or banks domiciled in those countries, with a complete divestment deadline set for January 1, 2028. The State Treasurer is tasked with developing a notification system to identify these foreign adversaries and ensure compliance with the divestment requirements.

Additionally, the bill provides immunity from liability for specific public pension systems regarding losses attributed to the divestment process. It defines key terms such as "foreign adversary," "divestment," and "state-managed fund," and outlines the procedures for identifying and divesting from prohibited investments. The act emphasizes that it will not interfere with existing financial safeguards or fiduciary responsibilities of state-managed funds. The provisions of this act will take effect on November 1, 2025.