WASHINGTON — Senators Mike Braun, Bill Hagerty, James Lankford, John Kennedy, and Richard Burr have introduced a Congressional Review Act (CRA) resolution to nullify the Biden administration’s Department of Labor (DOL) rule. Rep. Andy Barr (R-Ky.) led the effort in the House of Representatives.
The DOL would encourage fiduciaries to support liberal policy priorities over maximizing Americans’ retirement security.
In November, the Biden DOL finalized a rule, Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights, that would rescind a Trump-era rule that focused on financial factors and replace it with a focus on the environment, social, and corporate governance (ESG) factors when considering investments and shareholder proxy voting by fiduciaries.
“When American workers invest in their retirement, they should be able to trust their financial advisors to be investing with their best interests in mind, not the interests of liberal activists,” said Sen. Braun. “American retirement funds have already taken such a hit from Joe Biden’s failed economic policies, they should not be politicized. I am proud to lead my colleagues in this effort to overturn the Biden administration’s woke 401k rule and protect Americans’ retirement funds.”
A number of studies have shown that ESG investing policies have worse rates of return. In comparison to other investment plans, ESG investors generally end up paying higher costs for worse performances.
“President Biden’s attempt to use Americans’ retirement plans to bankroll the woke agenda is fiscally irresponsible and morally wrong,” said Sen. Kennedy. “Congress must reject this rule before American families suffer even more just so that Biden can support the Left’s pet projects.”
“Biden’s obsession with the Green New Deal should not be hurt Americans’ retirement savings. If Americans choose to use their retirement to invest in green energy that’s one thing, but the government should not force Americans to foot the bill of their progressive agenda.”
In July, Senator Braun introduced legislation to build a stronger retirement system for Americans by clarifying the fiduciary duty of plan administrators to select and maintain investments based solely on financial factors.
Representative Barr feels this DOL would allow fiduciaries to consider factors that could steer the capital away from the American energy sector.
“By finalizing rulemaking allowing plan fiduciaries to consider ESG factors, Biden’s Department of Labor is steering capital away from the American energy sector, discriminating against oil and gas producers, driving up prices at the pump, and preventing investors from reaping returns from high-performing energy stocks,” Rep. Barr said.
