Sen. Cruz Introduces Bill to Block Asset Managers From Voting on Federal Retirement Fund Stocks
This bill was recently introduced in the Senate and is currently being reviewed by the Committee on Homeland Security and Governmental Affairs. It is in the early stages of the legislative process and has no upcoming votes scheduled at this time. The bill is considered active as it waits for further committee action.
This bill deals with a very partisan issue that usually divides Republicans and Democrats. It will likely struggle to get enough support to pass in a divided Congress.
This bill’s path across every version that has carried it.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Federal employees make up the bulk of TSP participants, roughly 6 million people. This bill would leave their TSP-held shares unvoted on corporate matters like board elections and executive pay. Supporters say this protects workers from having their retirement funds used for political causes, but critics argue it weakens shareholder oversight and could reduce the long-term value of investments by removing a tool that holds corporate management accountable.
“To amend title 5, United States Code, to prohibit qualified professional asset managers from exercising voting rights associated with the ownership of securities by the Thrift Savings Fund.”
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Senator Ted Cruz introduced the Stop TSP ESG Act to prevent asset managers from using federal retirement funds to push ESG and DEI policies through corporate shareholder votes. The bill would prohibit any voting by asset managers on behalf of the $1 trillion Thrift Savings Plan.
The proposed legislation would bar BlackRock and State Street from casting any shareholder votes tied to the Thrift Savings Plan. While framed as an ESG crackdown, the bill's text removes voting power entirely, weakening the stewardship role of major global index managers.
The bill targets BlackRock and State Street, accusing them of using federal employee funds to push ESG agendas. It reflects a growing divide in U.S. politics regarding the role of sustainability in investment practices and the use of taxpayer-linked capital.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
Stop TSP ESG Act
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