Cruz Targets ESG and DEI Policies With New Bill

Sen. Ted Cruz (R-Texas) will introduce a bill Thursday that would prevent any company managing federal employee retirement funds from using that money to vote in shareholder meetings, arguing it would stop them from pushing "woke" policies on private companies.

The bill directly targets BlackRock, the world's largest asset manager, which manages a number of funds held in the federal retirement system. The investing policies it aims to stop are environmental, social and governance (ESG) and diversity, equity and inclusion (DEI).

"BlackRock is leveraging the financial weight of the federal retirement system to push their woke ESG and DEI ideology through other peoples’ investments," Cruz told to The Messenger. "BlackRock’s manipulation and brazen politicization of federal retirement accounts is wrong and should not be tolerated."

The bill applies to managers who oversee funds in the Thrift Savings Plan (TSP), the retirement system from federal employees.

The bill, the "The Stop TSP ESG Act," continues the Republican campaign against ESG and DEI investing, arguing that fund managers and companies are putting their political agenda ahead of investment outcomes. The wave of anti-ESG and DEI policies has caught on at the state level, including a sweeping law targeting the policies signed by Florida Gov. Ron DeSantis (R) last month.

Sen. Eric Schmitt (R-Mo.) is joining Cruz in introducing the bill. Rep. Ken Buck (R-Colo.) will introduce a companion bill on the House side.

The bill is unlikely to be considered in the Democratic-controlled Senate.