Legislation championed and led by U.S. Rep. Andy Barr (R-KY) to block the U.S. Department of Labor rule greenlighting environmental, social, and governance (ESG) investing in employer-sponsored retirement plans narrowly passed the U.S. House of Representatives on Tuesday.
“Americans are suffering from a $3.8 trillion savings gap that is jeopardizing retirement for millions,” said Rep. Barr. “That’s why Congress must dig in and prevent the Biden administration from greenlighting any attempt to elevate a political agenda ahead of delivering maximum financial security so that seniors can live comfortably in retirement.”
The House on Feb. 28 voted 216-204 to approve House Joint Resolution (H.J.Res.) 30, which Rep. Barr sponsored on Feb. 7 to prevent this rule and any other similar rule from taking effect. Currently, H.J.Res. 30 has 119 Republican cosponsors and now heads to the U.S. Senate, where U.S. Sen. Mike Braun (R-IN) is leading companion legislation.
If enacted, the resolution would disapprove the final rule “Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights,” which was submitted by the Department of Labor (DOL) and published in the Federal Register on Dec. 1, 2022. The rule became effective on Jan. 30.
The resolution would invoke a legislative process established by the Congressional Review Act, which would repeal the final rule and prohibit DOL from issuing the same or a similar rule in the future, according to the Congressional Budget Office.
“Thank you, Congressman Barr, for leading the fight against the Biden Department of Labor’s woke ESG agenda, which would impact the retirement funds of more than 152 million Americans,” said U.S. House Majority Leader Steve Scalise (R-LA). “House Republicans will always stand up for the millions of hardworking men and women saving for their retirement.”
“House Republicans will not stand by and allow the Biden administration to use American retirees’ 401k dollars to prioritize liberal political causes over investments that put their financial futures first,” added U.S. House Majority Whip Tom Emmer (R-MN).
U.S. Rep. Bill Huizenga (R-MI) said the federal government should not be making it more difficult for Americans to grow their retirement and plan for their future.
“Sadly, this is a growing trend in the Biden administration and their unelected bureaucrat allies in Washington,” said Rep. Huizenga. “I applaud my friend and colleague Andy Barr for using the Congressional Review Act to repeal this overreach by the Department of Labor.”
U.S. Rep. Bryan Steil (R-WI), who serves on the U.S. House Financial Services ESG Working Group, said the new DOL rule would allow investors to use Americans’ retirement savings to advance a political agenda. “Political decisions should be left at the ballot box,” he said. “I voted to rescind the DOL rule.”