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Restrictions on Tax-Exempt Entities' Investments in Chinese Companies.

This new law aims to restrict investments by U.S. tax-exempt organizations in Chinese companies. If your organization is tax-exempt, it could lose that status if it invests in certain Chinese entities. This is intended to protect U.S. interests and increase investment transparency.
Key points
Tax-exempt organizations (e.g., foundations, some retirement plans) may lose their status if they invest in "disqualified Chinese companies."
The act defines "disqualified Chinese company" to include entities controlled by the Chinese government or the Chinese Communist Party.
Waivers for such investments are possible but require demonstrating that the need for the investment outweighs the threat to the U.S.
Annual reporting on Chinese investments will be required, and the government will publish lists of safe investment funds.
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Status:
Expired
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Additional Information
Print number: 118_HR_5109
Sponsor: Rep. Gallagher, Mike [R-WI-8]
Process start date: 2023-08-01
System Note: Lustra is free, publicly auditable civic infrastructure, with 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 118_HR_5109.

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 2023-08-01.

What are the main provisions?

Key points include:

  • Tax-exempt organizations (e.g., foundations, some retirement plans) may lose their status if they invest in "disqualified Chinese companies."
  • The act defines "disqualified Chinese company" to include entities controlled by the Chinese government or the Chinese Communist Party.
  • Waivers for such investments are possible but require demonstrating that the need for the investment outweighs the threat to the U.S.
  • Annual reporting on Chinese investments will be required, and the government will publish lists of safe investment funds.
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 2025-12-25.

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