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. The bill defines key terms such as "foreign adversary," "divestment," and "state-managed fund," and prohibits state and local managed funds from holding investments in foreign adversaries or companies controlled by them. It mandates that all state-managed funds begin divesting from these prohibited investments immediately, achieving total divestment by January 1, 2028, or two years after the act's effective date, whichever comes first.

Additionally, the bill outlines the responsibilities of the State Treasurer in developing a notification system to identify foreign adversaries and requires state-managed funds to identify and divest from relevant companies. It also provides immunity from liability for public pension systems regarding losses incurred due to compliance with the act, and establishes an affirmative defense for any actions filed against these pension systems. The act is set to take effect on November 1, 2025.