The Senate has passed a resolution killing a Department of Labor rule that encourages private retirement plan fiduciaries to consider environment, social, and governance (ESG) factors when making investment decisions.
The House of Representatives had passed it a day earlier, with only one Democrat voting for the bill. The rule went into effect last month but had faced criticism from lawmakers who claimed it “politicizes” and “jeopardizes” the retirement savings of over 150 million Americans.
President Biden has warned that he would veto the bill if it reached his desk, arguing that ESG factors could have material impacts on certain markets, industries, and companies.
Takeaways:
- The Senate has passed a resolution killing a Biden administration Department of Labor rule on ESG factors.
- Lawmakers have criticized the rule, claiming it “politicizes” and “jeopardizes” the retirement savings of over 150 million Americans.
- The disapproval resolution, introduced by bipartisan lawmakers, has the backing of all GOP senators, Democratic Sen. Joe Manchin of West Virginia, and over 100 organizations.
- The White House has warned that President Biden would veto the bill if it reached his desk, arguing that ESG
factors could have material impacts on certain markets, industries, and companies.
5. Organizations supporting the resolution have praised its passage, saying it sends a clear, bipartisan message to the Biden administration and Wall Street elites that Americans’ voices are being heard.
Commentary:
The Senate’s passage of the resolution to kill the Biden administration’s ESG rule is a victory for the millions of Americans whose retirement savings were at risk due to the rule’s politicization and jeopardization.
It is heartening to see bipartisan lawmakers coming together to protect the interests of Americans and sending a clear message to the Biden administration that they will not allow the administrative state and their billionaire buddies to weaponize their retirements against them.
The White House’s argument that ESG factors could have material impacts on certain markets, industries, and companies is not convincing, especially when lawmakers and organizations have raised valid concerns about the rule’s potential harm to retirement savings. It is essential to prioritize the interests and well-being of Americans over ideological and political agendas.
The Senate’s action is a significant step towards safeguarding Americans’ retirement savings and ensuring that private retirement plan fiduciaries make investment decisions based on sound financial principles rather than political considerations. It is a win for common sense and for the American people.
