A resolution to repeal President Joe Biden’s ESG investment rule, which may politicize 401(k)s, was launched by 49 Senate Republicans and Senator Joe Manchin (D-WV).
Sen. Mike Braun (R-IN), who provided the first statement on the matter to Fox News Digital, said that “President Biden is endangering retirement funds for millions of Americans for a political goal.”
The resolution of disapproval was spearheaded by Braun and Rep. Andy Barr (R-KY).
“The last thing we should be doing is encouraging fiduciaries to make these decisions with a lower rate of return for solely ideological reasons at a time when Americans’ 401(k)s have already taken such a blow owing to market downturns and record high inflation,” Braun said. “For the sake of the millions of Americans who rely on these funds for their retirement, we are glad to oppose this regulation.”
The Biden admin. released a Dept. of Labor (DOL) plan that would take effect on Jan. 30 and allow retirement plan managers to take Environment, Social, and Governance (ESG) considerations into account when making investment decisions.
The most recent tool used by Wall Street financial oligopolies and the gov’t to get businesses and American investors to support social causes they otherwise would not support is ESG investment. Combating purported climate change, diversity mandates, and other leftist values are included in this.
The assistant secretary for employee benefits security, Lisa Gomez, stated in a written statement in Nov. that “Climate change and other social, environmental, and governance factors can really be useful for plan investors as they make choices about how they can best grow and safeguard the retirement savings of America’s workers.”
Retirement plans should only be concerned with generating the highest returns, not furthering a political goal, according to Barr.
“Retirees would receive lower returns on the investments of their hard-earned money if Congress doesn’t intervene to stop the Department of Labor’s rule approving ESG investing in retirement plans. Congress has to take action now, and I commend Sen. Braun and our allies for picking up the battle once again,” Barr added.
A disapproval resolution may be sponsored by a politician under the Congressional Review Act, and as a result, it cannot be stopped from being discussed on the floor. For the resolution to pass the Senate, only a simple majority is needed.
According to Fox News Digital, supporters of the measure expect that one more Senate Democrat will support the measure, increasing the likelihood that it will pass the upper body of Congress.