WASHINGTON – Last night, Senator Mike Braun’s challenge to President Biden’s ESG rule that puts politics over profits for Hoosiers’ 401(k)s passed the U.S. Senate.
Senator Braun led every Republican Senator and Senator Joe Manchin as cosponsors on this challenge. Democratic Senator Jon Tester of Montana joined in voting against the Biden rule.
Biden’s rule, which went into effect in February, allows fiduciaries to invest based on ESG factors – which tend to favor President Biden’s political priorities but produce a lower rate of return. Previously, fiduciaries could only invest based on the best rate of return for their clients. This rule applies to employer-sponsored 401(k)s, meaning 152 million Americans are subject to the new Biden rule.
The Senate passed the measure on a bipartisan vote of 50 to 46. It now goes to President Biden’s desk, where it is anticipated it will be his first veto: a bipartisan, bicameral rebuke of a major policy goal for the president.
Twenty-five states, including Indiana, are suing the Biden administration over this policy.
Senator Braun released this statement following his win on the Senate floor:
“My message to the White House is simple: Keep your hands off Hoosiers’ 401(k)s. President Biden is putting Hoosiers’ retirement savings at risk by changing the rules to allow money managers to invest based on progressive political goals rather than on the best rate of return. So many Americans’ retirement savings are already taking a hit from his inflation crisis,” said Senator Braun. “President Biden will now receive a searing, bipartisan rebuke of his policy that’s going to hurt Americans’ retirement savings.”
Representative Andy Barr led the House version, which passed on a bipartisan vote of 216 – 204 on Tuesday.
More information about the challenge can be found here.
