On Tuesday, Representative Chip Roy (R-TX) led 17 of his Republican colleagues in re-introducing the “No ESG at TSP Act,” legislation that seeks to prevent the federal Thrift Savings Plan (TSP) from allowing taxpayer dollars to flow into Environmental, Social, and Governance (ESG) funds.
In a press release announcing the bill’s reintroduction, Roy said “ESG investing poses a dangerous threat to the free flow of capital,” and that the movement is actively threatening domestic energy supply, empowering activist shareholders, and advancing woke gender and racial ideologies.
“ESG is an investing scheme woke corporations are using to appease the Left by destroying reliable American energy and advancing radical gender and racial ideologies,” Roy said. “Last year, the Thrift Savings Plan began allowing federal employees to invest their taxpayer funded salaries into ESG plans. The U.S. Government has no business propping up woke scams like ESG. Congress should eradicate every federal policy and office that promotes it, starting here.”
The “No ESG at TSP Act” would prohibit TSP from allowing federal employees to invest their taxpayer-funded salaries into funds that make “biased investment decisions” based on ESG criteria, according to the release.
TSP currently manages about $817 billion in total assets, making it the largest defined contribution plan in the world. The vast majority of TSP contributions stem from withholdings from federal or servicemember paychecks and their respective agency matches. That means TSP is effectively allowing billions of taxpayer dollars to be used for ESG investing, the press release said, and the “No ESG at TSP Act” would stop this.
Roy originally introduced the “No ESG in TSP Act” in May 2022 along with seven Republican co-sponsors. This time around, the bill has six other sponsors from Texas alone among the 17 co-sponsors.
Beginning on June 1, 2022, TSP participants gained access to a new mutual fund window as part of long-planned major changes that allowed participants the ability to invest a portion of their retirement savings in one of at least 5,000 mutual funds, including those that are focused on ESG issues.
The new bill’s cosponsors include Dan Bishop (R-NC), Troy E. Nehls (R-TX), Brian Babinn (R-TX), Byron Donalds (R-FL), Dan Crenshaw (R-TX), Scott Perry (R-PA), Bob Good (R-VA), Michael Cloud (R-TX), Buddy Carter (R-GA), Andy Ogles (R-TN), Matt Rosendale (R-MT), Randy Weber (R-TX), Andy Biggs (R-AZ), Keith Self (R-TX), Glenn Grothman (R-WI), Lauren Boebert (R-CO), and Josh Brecheen (R-OK).
Supporting organizations include FreedomWorks, Texas Public Policy Foundation, and Citizens for Renewing America.
Read the full text of the legislation here.
SEE ALSO:
• DOL Prioritizing ESG, New Fiduciary Rule and SECURE 2.0 Projects, Says Gomez
• GOP Launches Last-Ditch Efforts to Block Major TSP Changes
• Plan Participants Want ESG Investments: Natixis
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
