TSP Operations During a Government Shutdown and Roth Fund Growth
In the event of a government shutdown, the TSP will remain open and continue normal daily operations; participants do not need to take any action. Additional information and updates will be found at this TSP site.
The Roth assets in the TSP are growing, with about $84 billion now under management by the TSP. At the end of December 2024, Roth assets in the TSP totaled about $71 billion.
Total assets in the TSP exceed $1 trillion, with approximately $1,035 under TSP management. At the end of December 2024, the TSP had approximately $963 billion under management.
Stocks and TSP Stock Funds Reflect Economic Growth
The American economy appears to be stronger than generally thought, as evidenced by the rising gross domestic product (GDP), as noted in this video.
A jump in the GDP from +3.0% to +3.3% to +3.8% means the U.S. economy has been growing faster than previously reported. This reinforces the idea that corporate revenues and profits are supported by underlying demand, which is usually beneficial for stock prices, including the TSP’s C and S Funds.
Keep in mind that this revision looks back (Q2 ended in June). Stock markets have already priced in much of the growth. The stronger GDP number can also make the Federal Reserve less aggressive in cutting rates, or even more cautious about easing the current interest rates.
Inflation is down, unemployment is relatively low, and mortgage rates are now down from recent higher interest rates. There are also some concerns for consumers, such as the amount of consumer debt, the affordability of housing, and some concerns about the strength of the job market. While unemployment is not spiking, some labor market indicators are slowing, and there is some rising underemployment.
There are concerns in portions of the economy but the stock market is up for a reason and this quick summary explains some of the reasons why this has been a good environment for stock investors, such as the core TSP stock funds.
TSP Core Fund Returns During September and 2025
| Fund | Price | Month-to-Date | Year-to-Date |
| G Fund | $19.3677 | 0.28% | 3.27% |
| C Fund | $105.8637 | 2.85% | 13.92% |
| S Fund | $100.1552 | 1.97% | 11.10% |
| I Fund | $52.2233 | 2.59% | 24.65% |
What’s Driving 2025 TSP Returns?
Stocks are having a good year in 2025. The major factors driving the large gains in stock funds now are corporate earnings growth, sector leadership (e.g., large tech / artificial intelligence winners), valuation expansion, and macro policy — especially interest-rate expectations (Fed cuts or expected cuts usually lift equities).
Recent market commentary and asset manager notes suggest that the Federal Reserve may ease expectations in 2025, with strong earnings/AI investment being identified as key contributors. That pattern explains a lot of the strength of the C and S Funds.
The I Fund (international) can outperform U.S. equities for reasons like currency moves (a weaker dollar helps non-U.S. returns when converted back to dollars), faster growth in some foreign markets, or a rebound in regions that lagged earlier. The I Fund returns are ahead of the other TSP stock funds in 2025, as can be seen in the chart above, and these are the underlying reasons for the large returns this year.
What About the Rest of 2025?
If corporate earnings continue to confirm stronger growth, the C and S Funds (U.S. equities) are more likely to stay on track for strong year-to-date gains. The I Fund is less directly tied to American GDP, but the benefits of global demand also look healthier.
