Federal employees work their entire careers building up their retirement savings.
They expect those dollars to be managed responsibly and legally.
But BlackRock got caught using federal retirement money for one scheme that will make you sick.
Watchdog exposes massive betrayal of federal workers
A bombshell letter to Republican lawmakers has blown the lid off one of the most disgusting financial scandals in recent memory.
Asset management giants BlackRock and State Street have been caught red-handed using federal employees’ retirement savings to push radical climate change and DEI mandates on American companies.
And watchdog group Consumers’ Research just dropped the receipts that show exactly how this scam works.¹
"Asset managers like BlackRock using Americans’ hard-earned money to unfairly and illegally push radical political agendas without consent is hardly a new problem, but their control of most of the Thrift Savings Plan takes the scandal to a new level," Consumers’ Research executive director Will Hild told The Daily Wire.
These financial giants manage around $668 billion – that’s billion with a "b" – in federal retirement savings through the Thrift Savings Plan.
That’s the federal government’s version of a 401(k), and it represents the life savings of millions of hardworking Americans who served their country.
BlackRock turned retirement funds into woke slush fund
Here’s where this gets absolutely infuriating.
Instead of focusing solely on getting the best financial returns for federal retirees like the law requires, BlackRock and State Street have been using their proxy voting power to force companies into woke compliance.
They’ve been pushing emissions targets on restaurant chains like Cracker Barrel, Jack in the Box, Wingstop, and Denny’s.²
State Street has a policy of opposing company boards that don’t have at least 30% female directors and "at least one director from an underrepresented racial/ethnic community."
Think about that for a second.
Federal workers who spent decades serving their country are watching their retirement dollars get weaponized to push the exact same woke ideology that’s destroying American businesses.
Hild’s letter to House Committee on Oversight and Government Reform Chair James Comer (R-KY) and Senate Committee on Homeland Security and Governmental Affairs Chair Rand Paul (R-KY) laid out exactly how this financial betrayal works.
The Federal Retirement Thrift Investment Board "has contracted with asset managers and proxy advisors that have pursued goals to impose emissions reductions and diversity quotas on companies, rather than focus solely on financial returns as required" by federal law.
The woke coordination goes deeper than you think
But wait – it gets worse.
The Federal Retirement Thrift Investment Board relies on something called Institutional Shareholder Services to analyze BlackRock and State Street’s voting records.
This proxy advisory firm is also "committed to environmental activism and imposing quotas on company boards," according to Hild’s letter.³
So you’ve got woke asset managers taking orders from woke proxy advisors, all while using the retirement savings of federal employees who never consented to having their money turned into a political weapon.
"Flagrantly violating fiduciary duty with federal employee dollars begs for congressional scrutiny and more," Hild told The Daily Wire.
This isn’t just about investment philosophy – this is about breaking the law.
Federal law requires these funds to focus solely on getting the best returns for retirees, not pushing political agendas.
BlackRock’s retreat shows they know they got caught
Here’s what tells you everything about how guilty BlackRock knows it is.
After years of loudly championing ESG investing, CEO Larry Fink has been quietly backing away from the most extreme positions.
The Committee to Unleash Prosperity actually upgraded BlackRock’s grade from a "C" to a "B" for voting against extreme shareholder proposals in 2024.⁴
BlackRock’s own recent voting spotlight highlighted that it voted with corporate management on 209 out of 214 votes in the Americas on climate issues.
"We again found that many of these proposals were over-reaching, lacked economic merit, or sought outcomes that were unlikely to promote long-term financial value," BlackRock’s report admitted.
Translation: They finally realized that destroying shareholder value to please environmental activists might not be the best strategy for managing people’s retirement savings.
But the damage has already been done to countless companies and the federal workers whose money was used against their interests.
Look what this really means for every American
This scandal exposes something much bigger than just federal retirement funds.
These same asset management giants control trillions of dollars across the entire American economy through 401(k)s, pension funds, and index funds.
If they’re willing to brazenly violate their fiduciary duty with federal employees’ money – knowing it invites congressional scrutiny – imagine what they’re doing with private retirement accounts where there’s even less oversight.
"The longer that firms like BlackRock freely manage Thrift Saving Plan assets, the greater the danger to so many Americans’ retirement security," Hild warned.
This is economic warfare disguised as investment management.
They’re using your money to force companies to adopt policies you would never vote for, hire based on quotas instead of merit, and prioritize environmental activism over profits.
Federal workers spent their careers serving America, only to watch their retirement dollars get turned into weapons against everything they fought to defend.
And if Republican lawmakers don’t act fast to investigate this scandal, every American with a 401(k) could be next.
¹ Leif Le Mahieu, "Federal Retirement Dollars Used To Push Leftist Politics, Watchdog Warns," The Daily Wire, September 29, 2025.
² Ibid.
³ Ibid.
⁴ Ibid.
