# Plain Language Summary: No ESG at TSP Act

This bill would prevent the Thrift Savings Plan (TSP)—the retirement savings program for federal employees, members of Congress, and military personnel—from offering investment funds that make decisions based on environmental, social, or governance (ESG) criteria. In simpler terms, it stops the TSP from offering mutual funds that consider factors like climate change, diversity in hiring, labor practices, or political affiliations when deciding which companies to invest in. The bill specifically blocks funds that avoid investing in fossil fuel companies, firearms manufacturers, or companies that don't meet certain diversity standards. It also prevents the TSP from offering any fund that's marketed as an "ESG fund," regardless of how it actually invests.

The practical effect is that federal employees and retirees who currently have money invested in these types of funds would be forced to move their investments elsewhere. The bill gives people 30 days to choose where to reinvest their money, but if they don't make a choice, the TSP would automatically move their funds into other investment options. This means people who deliberately chose ESG-focused investments because they aligned with their values would lose that option and have their money redirected without their active consent.

The supporters of this bill argue that investment decisions should focus solely on making the most money possible, not on social or environmental concerns. Critics counter that ESG investing has become mainstream and that many of these funds perform well financially while also reflecting investors' values. For federal employees, this bill would essentially remove a category of investment choices that some people specifically selected for their retirement accounts.

No ESG at TSP Act

No ESG at TSP Act This bill prohibits investments under the Thrift Savings Plan in mutual funds that are based on environmental criteria (e.g., emissions standards), social criteria (e.g., company diversity), political criteria (e.g., political affiliations), or corporate governance criteria that differ from the standards that currently apply under law.