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Restrictions on Tax-Exempt Entities' Investments in Chinese Companies

New rules aim to limit investments by U.S. tax-exempt organizations in Chinese companies. If an organization invests in such a company, it risks losing its tax-exempt status. The goal is to protect U.S. interests and reduce reliance on Chinese entities.
Key points
Tax-exempt organizations (e.g., charities, some pension plans) will be prohibited from investing in certain Chinese companies to maintain their tax-exempt status.
The act defines which Chinese companies are restricted, including those controlled by the Chinese government or Communist Party.
Waivers for investments may be granted in exceptional circumstances, requiring proof that the benefits outweigh the risks to the U.S.
The government will publish lists of funds without exposure to restricted Chinese companies and reports on U.S. outbound investments in China.
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Status: Expired
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Additional Information
Print number: 117_HR_9385
Sponsor: Rep. Gallagher, Mike [R-WI-8]
Process start date: 2022-12-01
System Note: Lustra is free, publicly auditable civic infrastructure — full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source—always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

DITCH Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_9385.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2022-12-01.

What are the main provisions?

Key points include:

  • Tax-exempt organizations (e.g., charities, some pension plans) will be prohibited from investing in certain Chinese companies to maintain their tax-exempt status.
  • The act defines which Chinese companies are restricted, including those controlled by the Chinese government or Communist Party.
  • Waivers for investments may be granted in exceptional circumstances, requiring proof that the benefits outweigh the risks to the U.S.
  • The government will publish lists of funds without exposure to restricted Chinese companies and reports on U.S. outbound investments in China.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Gallagher, Mike [R-WI-8].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-28.

What is the impact of this bill?

We don't know—that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Economy Security