WASHINGTON, DC – US Senator Ted Cruz (R-Texas) introduced legislation that would prevent companies that manage investment funds held in federal employee retirement accounts from using those funds to vote at corporate shareholder meetings to enforce left-wing environmental, social, governance (ESG) and diversity, equity and inclusion (DEI) policies on private. sector businesses.
Sen. Eric Schmitt (R-Mo.) is the co-sponsor of the bill in the Senate. Rep. Ken Buck (R-Colo.) previously introduced companion legislation in the US House of Representatives.
BlackRock, a far-left, multinational hedge fund, manages several pension funds held in the Federal Thrift Savings Plan (TSP), the federal employee pension system. BlackRock is able to use its position as a fund manager to vote at shareholder meetings and force publicly traded companies to adopt ESG and DEI policies, even if doing so negatively affects investor value. As such, BlackRock prioritizes its political agenda over the interests of workers and retirees seeking to maximize returns on their investments.
Senator Cruz said“I am proud to join Congressman Buck in sponsoring this legislation in the Senate to hold investment fund managers accountable and ensure that they do not abuse their position as fiduciaries to advance an agenda that is contrary to the interests of their investors. As the managing entity of the TSP, BlackRock uses the financial weight of the federal pension system to promote their awakened ESG and DEI ideology through other people’s investments. BlackRock’s manipulation and brazen politicization of federal retirement accounts is wrong and should not be tolerated.”
Rep. Buck said, “For years, BlackRock has been using taxpayer money to force unwilling businesses to adopt ESG and DEI policies. “BlackRock, through its position as administrator of the federal Thrift Savings Program, has misused public capital to advance a radical agenda and censor conservative media.”
The Stop TSP ESG Act would prevent TSPs from allowing woke fund managers to use the power of their voices to advance a far-left agenda. This bill would not only empower federal retirees and protect their investments, but also increase the shareholder power of individual investors who might otherwise be overpowered by large institutional investors like BlackRock.
Will Heald, CEO of Consumers’ Research, said of the legislation, “Woke Wall Street is using the federal austerity program to impose a radical left-wing agenda on the country. It is a violation of their loyalty and the basic principles of democracy. Policy should be made in Congress, not in BlackRock’s C-Suite.”
Penny Nance, Executive Director and Chair of the Legislative Action Committee of Concerned Women for America, said: “The Stop TSP ESG Act is an important step to stop the radical ESG agenda while protecting TSP account holders. BlackRock CEO Larry Fink admits it’s “compelling behavior.” Shareholders may unknowingly support companies that disregard their values because other people’s voting decisions are made by those radicals. Thank you, Rep. Buck, for introducing this legislation.”
Read the legislation here.
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