Manchin, Capito Lead 50 Senators in Bipartisan Challenge to Biden Rule Politicizing Americans' 401Ks

Washington, DC – Today, U.S. Senators Joe Manchin (D-WV) and Shelley Moore Capito (R-WV) led 50 Senators in introducing their challenge to the Biden Administration’s ESG rule which prioritizes politics over getting the best returns for millions of Americans’ retirement investments. This disapproval resolution will receive a vote on the Senate and House floor.

 

“At a time when our country is already facing economic uncertainty, record inflation and increasing energy costs, it is irresponsible of the Biden Administration to jeopardize retirement savings for more than 150 million Americans for purely political purposes,” said Senator Manchin. “I’m proud to join this bipartisan resolution to prevent the proposed ESG rule from endangering retirement incomes and protect the hard-earned savings of American families. I encourage my colleagues on both sides of the aisle to support this important resolution to ensure Congress is promoting economic security for West Virginians and Americans, not further exacerbating the serious economic challenges they are already facing.”

 

“Americans who work today and save for tomorrow need to optimize their returns to afford life in retirement. Political agendas like Joe Biden’s ‘woke’ ESG requirements pressures financial experts to shift potential gains away from American retirees and into Joe Biden and the Department of Labor’s political projects. These efforts harm Americans saving for retirement by pressuring investing specialists to use Americans’ life savings to fund the radical agenda in the White House,” said Senator Capito.

 

In November 2022, President Biden instituted a rule that explicitly permits ERISA retirement plan fiduciaries to consider environmental, social, and corporate governance (ESG) factors when selecting investments and exercising shareholder rights. This rule replaces a previous rule which mandated fiduciary decisions be made solely on getting the best returns for the 152 million American workers that depend upon ERISA for their retirement. Under the Administration’s rule, retirement fund managers can prioritize ESG factors instead of financial returns in their investment decisions for workers’ hard-earned savings.

 

The Senators were joined by Senators Mike Braun (R-IN), Mitch McConnell (R-KY), John Thune (R-SD), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Ted Budd (R-NC), Katie Britt (R-AL), Bill Cassidy (R-LA), Susan Collins (R-ME), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Ted Cruz (R-TX), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), Josh Hawley (R-MO), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), John Kennedy (R-LA), James Lankford (R-OK), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall (R-KS), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Lisa Murkowski (R-AK), Rand Paul (R-KY), Pete Ricketts (R-NE), Jim Risch (R-ID), Mitt Romney (R-UT), Marco Rubio (R-FL), Mike Rounds (R-SD), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-SC), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), JD Vance (R-OH), Roger Wicker (R-MS) and Todd Young (R-IN).

 

Representative Andy Barr (R-KY) is leading the House version of the legislation.