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Prohibition of ESG Investments in Federal Employee Savings Plan

This new law aims to prohibit investment funds within the Thrift Savings Plan (TSP) for federal employees from making investment decisions primarily based on environmental, social, or governance (ESG) criteria. This means your retirement savings in TSP will not be able to be invested in funds promoting these criteria, unless they also maximize monetary returns. If you currently have such investments, they will be automatically re-invested into other funds unless you choose otherwise.
Key points
Limits the choice of investment funds within the Thrift Savings Plan (TSP) for federal employees.
Prohibits investments in funds that prioritize environmental, social, or governance (ESG) criteria over maximizing financial returns.
Existing ESG investments will be automatically re-invested into other funds unless the employee makes a different choice.
Impacts how federal employees' retirement savings are managed.
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Additional Information
Print number: 117_HR_7896
Sponsor: Rep. Roy, Chip [R-TX-21]
Process start date: 2022-05-27