U.S. Rep. Andy Barr (R-KY) said the reintroduction of a Congressional Review Act (CRA) measure seeks to nullify the Department of Labor’s (DOL) recent rule regarding environmental, social, governance (ESG) pension plan investing.
U.S. Sen. Mike Braun (R-IN) introduced a companion bill in the Senate.
“Retirement plans should be solely focused on delivering maximum returns, not advancing a political agenda,” Barr, chairman of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy, said. “If Congress doesn’t block the Department of Labor’s rule greenlighting ESG investing in retirement plans, retirees will suffer diminished returns on the investment of their hard-earned money. It’s time for Congress to act, and I applaud Senator Braun and our colleagues for renewing this fight.”
The Biden administration reportedly noted the rule makes it easier for employers to consider climate change and other ESG environment factors when picking investment funds for their 401(k) plans.
Braun said the Biden administration is jeopardizing retirement savings for millions of Americans.
“In a time when Americans’ 401(k)s have already taken such a hit due to market downturns and record high inflation, the last thing we should do is encourage fiduciaries to make decisions with a lower rate of return for purely ideological reasons,” Braun said. “That’s why we are proud to stand up against this rule for the millions of Americans who depend on these funds for their retirement.”