July saw favorable performance for the majority of Thrift Savings Plan (TSP) funds
The Thrift Savings Plan (TSP), the retirement savings and investment plan for federal employees, saw mixed results in July 2025. While some funds experienced notable gains, others faced declines, reflecting the economic and market dynamics influenced by both government monetary policies and global conditions.
In the domestic equity category, the S Fund (small- and mid-cap stocks) led with a 2.53% gain, followed closely by the C Fund (common stocks, tracking the S&P 500) with a 2.24% increase. However, the international stocks (I Fund) declined by 1.52%, and the fixed income/bonds (F Fund) fell by 0.25%. The government securities (G Fund) grew by its fixed mandated rate of 0.37%.
Despite July's losses, the I Fund has still managed a strong return of 16.89% year-to-date in 2025. The C Fund gained 8.56%, the S Fund grew 4.69%, the F Fund is up 3.76%, and the G Fund earned 2.60%. Lifecycle funds, which are designed to automatically adjust the asset allocation based on the employee's expected retirement date, also showed positive returns, ranging from +0.50% to +0.95% in July.
Market volatility, rising interest rates, and inflation concerns have impacted bond values and the fixed income (F) fund negatively. The strong U.S. dollar and weak economic data in Europe and Japan have weighed on the international (I) fund. Federal employees are advised to consider rebalancing portfolios in 2025 to adjust for these shifting market conditions and maintain their desired risk-return balance.
Meanwhile, the Senate Democrats have criticized the Trump administration for billions of dollars in waste due to recent federal workforce changes, particularly the deferred resignation program. Additionally, many USA Jobs listings now contain additional questionnaire items, asking applicants which of Trump's executive orders are their favorite and how they'd help advance the President's policy priorities.
On a positive note, the Senate has confirmed Sean Cairncross as national cyber director, who will serve as President Trump's principal advisor on all things cybersecurity. The National Archives and Records Administration has made progress towards fully electronic record keeping, with 71% of agencies reporting meeting the July 2024 deadline and 75% of agencies saying they have an automated way to manage emails.
In other news, the Office of Personnel Management's Director Scott Kupor argues that the voluntary separation program will save costs in the long run. The permanent change of station joint task force has launched a 24/7 call center to help service members, civilians, and their families with their government moves. President Donald Trump has nominated Ed Forst, a banking and real estate executive, to be the administrator of the General Services Administration.
Lastly, it's important to note that the platform reserves all rights for this website, and this website is not intended for users located within the European Economic Area.
[1] Source: Federal News Network [2] Source: Investopedia [4] Source: Kiplinger [5] Source: Military Times
- The Thrift Savings Plan (TSP) workforce reimagined its investment strategies to adapt to mixed results in July 2025, with the federal workforce advised to consider rebalancing portfolios to maintain their risk-return balance.
- Finance experts lauded the strong year-to-date returns of the International (I) Fund, despite its slight decline in July, and provided personal-finance recommendations for federal employees investing in the TSP to do the same.
- In the face of market volatility, rising interest rates, and inflation concerns, the Finance committee within the federal workforce may explore technology-driven solutions for more efficient and effective portfolio management.
- Education and self-development in arts, culture, and entertainment have become increasingly popular among the federal workforce, with the National Archives and Records Administration making strides towards electronic record keeping, exemplifying the changing lifestyle of those employed in the federal sphere.
- As part of the changing landscape within the federal workforce, Senate Democrats have focused on reducing waste and questioned recent changes like the deferred resignation program and politically-motivated USA job listings.
- The advancements in technology have extended to the casino and gambling industry, with President Trump nominating a seasoned banking and real estate executive, Ed Forst, to lead the General Services Administration, possibly paving the way for new legislation affecting the sector in the upcoming months.
%20funds){kind=link}