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Ban on ESG Investments in Federal Employees' Thrift Savings Plan (TSP).

This law prohibits the federal retirement plan (TSP) from offering investment funds that base decisions primarily on Environmental, Social, or Governance (ESG) criteria, unless those criteria maximize monetary returns. This restricts the investment choices available to federal employees and military personnel. Participants currently holding these prohibited funds must actively select new investments within 90 days, or their money will be automatically moved to the low-risk Government Securities Investment Fund (G Fund).
Key points
Investment Choice Restriction: Funds using ESG criteria (covering environment, diversity, political affiliations, and firearms) will be removed from the TSP mutual fund window.
Action Required by Investors: Participants holding banned funds must choose a new investment within 90 days to prevent their savings from being automatically transferred to the low-return G Fund.
New Enforcement Rights: TSP participants gain the right to sue the TSP Board for offering funds that violate the new ESG prohibitions.
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Expired
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Additional Information
Print number: 118_S_2147
Sponsor: Sen. Lee, Mike [R-UT]
Process start date: 2023-06-22
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Summarized by: gemini-2.5-flash-preview-09-2025
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 118_S_2147.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-06-22.

What are the main provisions?

Key points include:

  • Investment Choice Restriction: Funds using ESG criteria (covering environment, diversity, political affiliations, and firearms) will be removed from the TSP mutual fund window.
  • Action Required by Investors: Participants holding banned funds must choose a new investment within 90 days to prevent their savings from being automatically transferred to the low-return G Fund.
  • New Enforcement Rights: TSP participants gain the right to sue the TSP Board for offering funds that violate the new ESG prohibitions.
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 2025-12-26.

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