Forty-nine Senate Republicans and Sen. Joe Manchin (D-WV) unveiled a resolution that would eliminate President Joe Biden’s ESG investing rule, which may politicize 401(k)s.
“President Biden is jeopardizing retirement savings for millions of Americans for a political agenda,” Sen. Mike Braun (R-IN) told Fox News Digital, which first reported the news.
Braun and Rep. Andy Barr (R-KY) led the disapproval resolution.
“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 explained. “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.”
The Biden administration unveiled a Department of Labor (DOL) proposal that would go in effect on January 30, that would allow retirement plan managers to consider Environment, Social, and Governance (ESG) factors in investment decisions.
ESG investing is the latest vector through which Wall Street financial conglomerates and the government can force corporations, and by extension, American investors to adopt social issues that they would otherwise not back. This includes combatting alleged climate change, diversity requirements, and other leftist values.
President Joe Biden traveled to Somerset, MA to deliver remarks on tackling the climate crisis and seizing the opportunity of a clean energy future to create jobs and lower costs for families. Biden unveiled the latest efforts during a visit to the former coal-fired Brayton Point power plant, which is shifting to offshore wind manufacturing. It’s the embodiment of the transition to clean energy that Biden is seeking. (Photo by David L. Ryan/The Boston Globe via Getty Images)
Barr said in a statement, “Retirement plans should be solely focused on delivering maximum returns, not advancing a political agenda.”
“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,” Barr continued.
The Congressional Review Act allows lawmakers to sponsor a disapproval resolution, which means that the resolution cannot be blocked from being considering on the floor. The resolution only requires a simple majority to pass through the Senate.
Fox News Digital noted that backers of the bill believe that one more Senate Democrat will back the resolution, meaning that it could likely pass through Congress’ upper chamber.
Over 100 groups, including Advancing American Freedom, Club for Growth, America First Policy Institute, American Accountability Foundation, Americans for Prosperity, Concerned Women for America, Fair Energy Foundation, Heritage Action, Independent Women’s Voice back the bill.
Sean Moran is a policy reporter for Breitbart News. Follow him on Twitter @SeanMoran3.
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