U.S. Senator Ted Cruz (R-Texas) has introduced the Stop TSP ESG Act, a bill aimed at preventing asset managers of federal employee retirement funds from using those funds to promote Environmental, Social, and Governance (ESG) and Diversity, Equity, and Inclusion (DEI) policies through shareholder voting.
The Thrift Savings Plan (TSP), which serves as the retirement savings program for U.S. government employees, manages over $1 trillion in assets. The core mutual funds within TSP are primarily managed by BlackRock Capital Advisers and State Street Global Advisors. According to Cruz's office, these firms have used their holdings to influence corporate decisions on ESG and DEI matters.
Senator Cruz stated, “Americans deserve assurance that their retirement savings are being invested in the most fiscally responsible ways. Instead investment fund managers are using the retirement savings of federal employees to push ESG and DEI agendas that conflict with their investors’ interests. The Stop TSP ESG Act would end that practice and restore accountability, and I urge my colleagues to pass it expeditiously.”
Ted Cruz has previously secured election victories in Texas Senate races: he defeated Colin Allred in 2024 with 53.1% of the vote compared to Allred’s 44.6%, Beto O'Rourke in 2018 with 50.9% versus 48.3%, and Paul Sadler in 2012 with 56.5% against Sadler’s 40.6%.
