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State treasurers push for divestment from China citing 'red flags' regarding CCP control

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State treasurers push for divestment from China citing 'red flags' regarding CCP control

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FIRST ON FOX: More than a dozen financial officers from 15 states are sending a letter to public pension fund fiduciaries, urging them to cut ties with China-based investments due to the Chinese Communist Party’s (CCP) control over some firms.

“Trustees of state funds have a duty to investigate investments and a duty to monitor investments and divest from imprudent investments, in order to ensure that those funds grow and are protected for future beneficiaries,” the letter from 18 state treasurers stated to public pension fund fiduciaries, who include anyone managing a public pension fund. “The time has come to divest from China.”

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The 18 financial officers – who include some state treasurers – are from Alabama, Arkansas, Alaska, Arizona, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina and Wyoming.

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State financial officers urge public pension fund managers to divest from China. (Photo by Xie Huanchi/Xinhua via Getty Images / Photo by Wang Gang/VCG via Getty Images)

Financial officers cited a crackdown by the CCP on due diligence firms, which has compromised the reliability of financial audits. They also pointed to CCP interference in stock and bond markets, where efforts to hide foreign investment outflows have been observed.

The CCP maintains extensive control over Chinese companies, including the placement of military and intelligence personnel within them, the letter also states, and keeps the legality of Variable Interest Entities (VIEs) hidden.

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Spectators wave Chinese flags as military vehicles carrying DF-41 nuclear ballistic missiles roll during a parade to commemorate the 70th anniversary of the founding of Communist China in Beijing on Oct. 1, 2019.  (AP Photo/Mark Schiefelbein, File)

These VIEs are offshore shell companies that are often seen as illegal under Chinese law, yet they represent the most common form of investment available to U.S. investors in China. The SEC has warned that the CCP could abruptly declare VIEs illegal, creating significant risks for those who invest in them.

Geopolitical tensions, such as China’s potential invasion of Taiwan, are also of concern to investors. 

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The national flags of the United States and China flutter at the Fairmont Peace Hotel on April 25, 2024, in Shanghai, China. (Photo by Wang Gang/VCG via Getty Images)

Moreover, there has been a notable decline in foreign investment in China, leading to substantial outflows from its markets, the officers warned. This trend has prompted other fiduciaries, including those from states like Florida Indiana, and Missouri, to reconsider their China-based investments.

“Many fiduciaries, including state pension plans, failed to recognize similar warning signs before Russia’s invasion of Ukraine in 2022. As a result, states lost billions of dollars in value that was held in trust for retirees,” the letter states. “Pension boards should learn from the past, or they will be doomed to repeat it. As state financial officers, we urge public pension boards to analyze these issues, to identify China-based investments, and to divest from those investments in line with their fiduciary duties.”

 

The bipartisan House Select Committee on the Strategic Competition between the U.S. and the CCP released a report earlier this year detailing how asset managers and index providers facilitated investment of more than $6.5 billion to 63 companies in China that have been blacklisted or red-flagged by the U.S. government.

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Under current law, U.S. government agencies maintain a variety of blacklists and red-flag lists that serve a range of purposes, from barring exports to covered foreign firms and blocking imports due to connections with the use of forced labor, to restricting purchases of equipment that poses a national security risk and more. 

Most of these lists do not restrict U.S. asset managers or investors from investing in listed companies. One list that does restrict U.S. investment in listed firms, the Treasury Department’s NS-CMIC list, blocks investment only in listed firms but excludes those companies’ subsidiaries, allowing them to receive U.S. capital.

Fox Business’ Eric Revell contributed to this report. 

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Video: Jan. 6 Rioter Hired by Pentagon

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Video: Jan. 6 Rioter Hired by Pentagon

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Jan. 6 Rioter Hired by Pentagon

Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

“Full pardon or commutation?” “Full pardon.”

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Elias Irizarry, who pleaded guilty to climbing through a broken window at the Capitol on Jan. 6, 2021, now works for an office responsible for uncovering and defending against terrorism plots at the Pentagon.

By Alisa Shodiyev Kaff

June 4, 2026

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats split over Tlaib’s Lebanon measure as Republicans seize on Hezbollah omission

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Democrats splintered over a resolution seeking to block the U.S. from assisting Israel’s war against Hezbollah, an Iranian-backed terrorist group, on Thursday. 

The measure, offered by progressive Rep. Rashida Tlaib, D-Mich., would require President Donald Trump to withdraw U.S. forces from Lebanon. For months, Israel and Hezbollah, a U.S.-designated terrorist group and Iranian proxy, have been at war in southern Lebanon, but the United States has not joined the conflict.

A bipartisan coalition of lawmakers, including House Minority Leader Hakeem Jeffries, D-N.Y., rejected the measure. Critics argued the resolution could aid Hezbollah and potentially hamstring U.S. military operations in the country. 

Tlaib’s resolution failed 92-324, with more than half of House Democrats joining nearly all Republicans to vote it down.

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The Lebanon war powers resolution divided Democrats, with House Minority Leader Hakeem Jeffries, D-N.Y., joining Republicans in rejecting the measure. (Aaron Schwartz/Bloomberg)

REP RASHIDA TLAIB MOVES TO BLOCK US OPERATIONS IN LEBANON BUT IGNORES HEZBOLLAH

Rep. Thomas Massie, R-Ky., an Israel critic, was the lone Republican to support Tlaib’s measure. Meanwhile, Reps. Derek Tran, D-Calif., and Betty McCollum, D-Minn., voted present.

House Democratic leaders said shortly before the vote they would oppose Tlaib’s resolution and work with the progressive lawmaker on a narrower measure exempting some U.S. military operations in the country. Their statement also denounced Hezbollah as a “violent terrorist organization” and a “sworn enemy of the United States.”

Tlaib, who has accused Israel of committing “ethnic cleansing” in Lebanon, did not mention Hezbollah in her resolution. She and other proponents of the measure also avoided discussing the Iranian proxy force during heated floor debate over the measure. 

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Republicans highlighted the omission and accused the legislation’s supporters of serving as “proxies for Hezbollah.”

“Apparently they don’t want to see Israel killing Hezbollah, even though it’s Hezbollah that is killing Israeli children, Israeli adults, Israeli elders,” House Foreign Affairs Committee Chairman Brian Mast, R-Fla., said Wednesday, referring to his Democratic colleagues.

Tlaib asserted that her resolution would only affect U.S. forces actively engaged in hostilities. Republicans, however, disputed that claim and suggested it would hurt U.S. efforts to counter Hezbollah. 

“It doesn’t say anything about [whether] you can keep the Marines that are in the embassy,” Mast said, referring to the U.S. embassy in Beirut. “That’s a pretty big oversight. It doesn’t say anything about whether we can keep United States armed forces that are training missions with the LAF [Lebanese Armed Forces]. Again, pretty big oversight.”

Rep. Rashida Tlaib, a Democrat from Michigan, attempted to bar U.S. forces from joining Israel’s war in Lebanon. (Tierney L. Cross/Bloomberg)

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The debate turned personal when Rep. Max Miller, R-Ohio, a member of the House Foreign Affairs Committee, linked Tlaib to Hezbollah.

“Hezbollah is a terrorist organization … and its members are butchers that you like to hang out with to a certain extent,” the Ohio lawmaker said, referring to Tlaib.

A shouting match between the two then broke out, with Tlaib demanding that Miller’s remarks be stricken from the record.

The presiding chair ultimately complied with her request, but Miller doubled down on his remarks.

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“Yes, I said it. I own it, and I stand by it,” Mast said on behalf of Miller on the floor.

Tlaib’s failed war powers resolution comes as Iran has sought to tie Israel’s invasion of Lebanon to its ceasefire negotiations with the United States.

Hezbollah, which has long helped Iran project power in the region, rejected a ceasefire agreement between Israel and Lebanon’s government Thursday.

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Senate rejects an initial attempt to ban Trump’s $1.8-billion ‘anti-weaponization’ fund

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Senate rejects an initial attempt to ban Trump’s .8-billion ‘anti-weaponization’ fund

Initial efforts in the Senate failed Thursday to block the $1.8-billion fund that the Trump administration has sought to establish to pay people who claim the government wronged them, though further attempts were likely to come Thursday afternoon.

Republicans narrowly voted down a Democratic amendment to ban the payout fund and then Democrats killed a Republican amendment, which would have prohibited the use of federal money for the fund but would have sent $1.7 billion to the Justice Department’s fraud division.

It was the second effort in Congress to rebuke President Trump in two days, following the House vote Wednesday to rein in Trump’s war powers in Iran.

The dueling amendments were proposed by Senate Minority Leader Chuck Schumer (D-N.Y.) and Sen. Thom Tillis (R-N.C.). They were attached to the reconciliation bill that would fund Immigration and Customs Enforcement and the Border Patrol, a high priority for Republicans.

The votes came as the Senate began a “vote-a-rama,” during which lawmakers were expected to propose a stream of amendments to the immigration bill on various topics.

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The Trump administration’s plan for the payment fund — widely seen as a way for Trump to compensate his political allies, including those who participated in the Jan. 6, 2021, attack on the Capitol — set off particular ire from some GOP lawmakers.

The plan has fueled growing unrest within parts of Trump’s party over his governance, compounded by the president’s endorsement of primary challengers to Sens. John Cornyn (R-Texas) and Bill Cassidy (R-La.), as well as Rep. Thomas Massie (R-Ky.), which angered some Republican senators.

Cassidy, who lost his primary and has since voiced strong opposition to Trump’s $1.8-billion fund, became a key player in the Thursday votes, voting down Schumer’s amendment but supporting Tillis’.

On Wednesday, Cassidy joined with Sen. Cory Booker (D-N.J.) to argue in a court filing that the $1.8-billion fund circumvents Congress’ authority and violates the Constitution’s spending and appropriations clauses.

“It is an unconstitutional attempt to spend the People’s money without Congressional approval,” Cassidy and Booker wrote in an amicus brief filed in the federal court case challenging the fund.

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The fund was created by the Justice Department to settle a lawsuit brought by Trump against the Internal Revenue Service over the leak of his tax returns. Trump and his sons agreed to drop their personal lawsuit against the government in exchange for the creation of the $1.776-billion fund. Critics immediately questioned the plan, and it drew a rare backlash from Republicans.

In late May, GOP senators derailed plans to vote on the immigration bill over their displeasure with the payout fund and with Trump’s desire to use taxpayer funds for his planned White House ballroom. Senate Republicans removed the ballroom funding from the immigration package Wednesday, another setback for Trump.

The Trump administration sought to back away from its plans for the fund this week, following bipartisan outcry and a federal court ruling that temporarily blocked any payouts from the fund. Acting Atty. Gen. Todd Blanche said Tuesday the administration would end its plans to move ahead with the concept.

But Trump on Wednesday told reporters he didn’t know whether the fund was dead, calling it “a beautiful thing.”

After Schumer proposed the first amendment to ban the fund Thursday morning, the Senate came to a standstill as three key Republican senators deliberated. Schumer framed his effort to ban the fund Thursday as a way to force a referendum on Trump’s plan.

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The amendment “offers Republicans a choice: Do you support Donald Trump’s $2 billion taxpayer-funded slush fund, or do you want to protect the American people and their paychecks?” Schumer said on the Senate floor before the vote.

Sen. Bernie Moreno (R-Ohio) urged Republicans to reject the amendment, saying Democrats were planning to “play so many games” on Thursday during the marathon session.

“We are going to fund immigration enforcement and border patrol, and I urge my Republican colleagues to stay united on that singular mission,” Moreno said.

The amendment failed after Cassidy voted against it. Republican Sens. Susan Collins of Maine, Jon Husted of Ohio and Dan Sullivan of Alaska voted in favor.

Schumer’s amendment was uniformly supported by Democrats, including California Sens. Adam Schiff and Alex Padilla.

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Tillis, who also voted against Schumer’s amendment, immediately proposed his amendment. Sen. Jeff Merkley (D-Oregon) urged Democrats to oppose it, saying that the proposal would create “a new slush fund” by giving the money to the Justice Department.

“We heard over the last 48 hours that the acting attorney general said that this fund’s not moving forward. All this amendment does is codify what I believe the policy of the DOJ is,” Tillis said on the floor before voting began on his amendment. “This [fund] is unpopular, this administration has said they’re not moving forward with it; this is an opportunity for us to put it to bed.”

Responded Merkley: “Taking one slush fund and eliminating it and then creating a new slush fund still under control of the attorney general is not the way to go. The way to go is to get rid of these slush funds altogether.”

Trump has faced a recent string of failures, including the House vote Wednesday, a court ruling to remove his name from the Kennedy Center and a record-low approval rating among Americans as concern rises about economic issues, gas prices and Trump’s war with Iran.

On Wednesday, Trump lashed out against the four Republicans who backed the House war powers resolution, calling it “an unpatriotic thing” to do and calling the vote “meaningless.”

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“They’re GRANDSTANDERS! They should be ashamed of themselves. MAGA!!! President DJT,” Trump wrote.

Times staff writer Ana Ceballos, in Washington, contributed to this report.

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