Closures are, but functions defined using "fn" syntax cannot capture from the environment. This is a useful feature, and I can see why people would want it, but it was considered ultimately not consistent with Rust's aims to be excellent at the low level. See [1] for more discussion of the tradeoffs and why Rust chose not to include the feature.
[1] https://users.rust-lang.org/t/inner-functions-not-closed-ove...