# Treasury Bars ESG Funds from Federal Retirement Plans, Citing Political Activism

The Treasury Department has prohibited ESG (environmental, social, and governance) funds from being offered in federal employees' retirement savings accounts, citing concerns over political activism. The decision limits choices for Thrift Savings Plan participants, preventing them from selecting these sustainability-focused investment options. This move reflects a broader push against ESG investing in government-managed funds.

**Importance:** 3/5

## Sources

### Business
- [Fox News Business](https://www.foxbusiness.com/economy/treasury-department-bars-esg-funds-from-trump-accounts-citing-political-activism-concerns) — Thu, 20 Aug 2026 14:24:44 GMT