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Ban on ESG Investments in Federal Employee Savings Plan

New rules prohibit federal employee savings funds from investing in funds that use environmental, social, or governance (ESG) criteria if these criteria do not maximize returns. This means your retirement savings will be invested solely based on potential financial gains, not social or environmental goals. If you currently hold such investments, you will have the option to change them, otherwise they will be automatically moved to a government securities fund.
Key points
The Thrift Savings Plan (TSP) for federal employees will be prohibited from investing in mutual funds that make investment decisions based on ESG criteria unrelated to maximizing monetary returns.
Investments based on environmental (e.g., emissions, climate change), social (e.g., diversity, labor unions, firearms), or political criteria will be banned.
Participants with existing impermissible investments will be notified and given 90 days to re-elect their investments; otherwise, funds will be moved to the Government Securities Investment Fund.
The provisions take effect one year after enactment, and participants gain the right to sue the TSP Board for violations of these rules.
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Expired
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Additional Information
Print number: 117_S_5000
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2022-09-28
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

No ESG at TSP Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_5000.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-09-28.

What are the main provisions?

Key points include:

  • The Thrift Savings Plan (TSP) for federal employees will be prohibited from investing in mutual funds that make investment decisions based on ESG criteria unrelated to maximizing monetary returns.
  • Investments based on environmental (e.g., emissions, climate change), social (e.g., diversity, labor unions, firearms), or political criteria will be banned.
  • Participants with existing impermissible investments will be notified and given 90 days to re-elect their investments; otherwise, funds will be moved to the Government Securities Investment Fund.
  • The provisions take effect one year after enactment, and participants gain the right to sue the TSP Board for violations of these rules.
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 Sen. Lee, Mike [R-UT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

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