Federal Employees' 401(k) Portfolio Sees Broad Declines in July

July marked another month of losses for the Thrift Savings Plan, the federal government’s 401(k)-style retirement system, as every major fund except the G Fund posted declines. The G Fund, invested in government securities, rose by its mandated 0.39%, bringing its year-to-date gain to 2.57%. The C Fund’s equities were nearly unchanged, down 0.07%, while the international I Fund dropped 1.01% despite a 15.35% rise since January.

Small- and mid-cap holdings in the S Fund fell 4.12%, and the fixed-income F Fund slipped 1.29%, leaving its 2026 performance slightly negative. All lifecycle (L) funds, which shift toward conservative assets as participants near retirement, also recorded modest losses ranging from 0.06% to 0.92% for the month. Year-to-date, most lifecycle funds remain in positive territory, but the July downturn underscores ongoing market pressure on federal retirement accounts.