EXCLUSIVE: Every Republican senator and Democrat Joe Manchin is rolling out legislation they hope will end the Biden administration’s new ESG (Environment, Social and Governance) rule, which they say is “politicizing” retirement savings for 152 million Americans.
The Biden administration’s Labor Department unveiled a rule in November, scheduled to take effect Jan. 30, that would allow pension plan managers to incorporate environmental and social considerations into investment decisions.
The bipartisan disapproval resolution, led by Sen. Mike Braun, R-Ind., will be introduced Wednesday, and an accompanying House bill will be introduced by Rep. Andy Barr, R-Ky. Passing the resolution by Congress will allow Congress to override the government and end the ordinance.
“President Biden is jeopardizing the retirement savings of millions of Americans for a political agenda,” Braun told Fox News Digital.
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Sen. Mike Braun, R-Ind., is leading a bipartisan disapproval resolution. (Sarah Silbiger/Pool via AP)
“At a time when American 401(K)s have already taken such a beating from market downturns and record-high inflation, we certainly should not encourage trustees to make lower-yielding decisions for purely ideological reasons. That’s why we’re proud to oppose this rule for the millions of Americans who depend on these funds for their retirement,” the Indiana senator continued.
A group of 25 states last week filed a federal lawsuit against the Biden administration over the rule, which Utah Attorney General Sean Reyes said would “endanger” the retirement plans of millions of Americans.
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“The Biden administration is promoting its climate change agenda by jeopardizing ordinary people’s pension money,” Reyes told Fox News Digital. “Americans are already suffering from the current economic downturn.”
Rep. Andy Barr, R-Ky., introduces accompanying legislation to the House of Representatives. (Courtesy of the author)
In the lawsuit, the states allege that the DOL violated the Employee Retirement Income Security Act (ERISA) of 1974. The law sets standards for the retirement income of 152 million US workers, representing more than two-thirds of the country’s adult population. and applies to approximately $12 trillion in assets.
An aide to Braun said the resolution will come to a vote in the Senate and House of Representatives in the coming weeks.
Under the Congressional Review Act, joint disapproval resolutions cannot be prevented from being considered in plenary. The resolution requires only a simple majority of votes to pass and send it to Biden, and supporters of the resolution expect at least one other Democrat to back it and pass it in the Senate.
The resolution only requires a simple majority to pass and be sent to Biden. (Demetrius Freeman/The Washington Post via Getty Images)
The bipartisan legislation is backed by over 100 groups, according to the adviser.
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Supporting groups include: 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 and more.
Kelly Laco is the politics editor at Fox News Digital.