Stop TSP ESG Act

# Stop TSP ESG Act Summary **What the Bill Would Do** This bill would prohibit the Thrift Savings Plan (TSP)—the retirement savings program for federal employees and military members—from considering Environmental, Social, and Governance (ESG) factors when making investment decisions. Instead, the TSP would be required to focus solely on financial returns and risk when selecting investments for participants' retirement accounts. **Who It Affects** The bill would impact millions of federal employees, retirees, and military service members who participate in the TSP, as well as the plan's administrators. It would also affect investment companies whose ESG-focused funds might be excluded from the TSP's investment options. **Key Provisions** The bill would restrict the TSP from using ESG criteria—such as a company's environmental practices, labor standards, or board diversity—as part of its investment strategy.

Supporters argue this keeps the focus on maximizing retirement savings, while opponents contend that ESG factors can be relevant to long-term financial performance. **Current Status** As of now, the bill is in committee and has not been voted on by the full Senate. It was introduced by Senator Ted Cruz (R-TX) in the 119th Congress.