Legislation supported by U.S. House Budget Chairman Jodey Arrington (R-TX) on Jan. 15 passed the U.S. House of Representatives, which voted 213-205 to advance the Protecting Prudent Investment of Retirement Savings Act, H.R. 2988.
Now under consideration by the U.S. Senate, H.R. 2988 would repeal Biden-era environmental, social and governance (ESG) standards used to measure an organization’s environmental and social impact.
“Under the extreme climate and social policy agenda of the Biden administration, financial advisors were encouraged to steer Americans’ hard-earned retirement savings into climate- and social justice-related endeavors instead of maximizing financial returns,” Rep. Arrington said. “By law, fiduciaries are required to act in the best financial interests of their clients — which is exactly the opposite of putting someone’s retirement savings at risk just to appease activists.”
H.R. 2988, which U.S. Rep. Rick Allen (R-GA) sponsored on April 24, 2025, would prohibit fiduciary financial advisors from prioritizing any objective other than maximizing beneficiaries’ returns when they make investment decisions on behalf of their shareholders.
Additionally, H.R. 2988 would require that retirement plans provide notices to participants allowing them to select from designated investment alternatives, and ensure that the hiring and retention of pension plan employees are based on merit, not on race or sex, according to a bill summary provided by Rep. Arrington’s staff.
“I am proud to support the Protecting Prudent Investment of Retirement Savings Act to safeguard retirement savings and ensure hardworking Americans can retire with peace and prosperity, not woke and broke,” said Rep. Arrington.