Kennedy, Braun introduce bill to stop Biden admin from funding woke ESG projects with Americans’ retirements

WASHINGTON - Sen. John Kennedy (R-La.), Sen. Mike Braun (R-Ind.) and more than 40 other Republican senators today introduced a Congressional Review Act (CRA) resolution to prevent the Biden administration from enforcing a Department of Labor (DOL) rule that would encourage fiduciaries to support environmental, social and corporate governance (ESG) priorities over growing Americans' retirement accounts.

"President Biden's attempt to use Americans' retirement plans to bankroll the woke agenda is fiscally irresponsible and morally wrong. Congress must reject this rule before American families suffer even more just so that Biden can support the Left's pet projects," said Kennedy.

"President Biden is jeopardizing retirement savings for millions of Americans for a political agenda. 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. 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," said Braun.

Rep. Andy Barr (R-Ky.) is leading the effort in the House of Representatives.

Background:

• In November, the Biden administration's Department of Labor finalized the Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights rule, which allows fiduciaries to consider ESG factors when they make investments or take proxy votes for shareholders. The rule undoes a Trump administration rule that prioritized financial, rather than ideological, outcomes for investors.

• A Harvard Business Review study found that investing in funds that prioritize ESG goals results in poor return rates.

Sens. Mitch McConnell (R-Ky.), John Thune (R-S.D.), John Barrasso (R-Wyo.), Marsha Blackburn (R-Tenn.), John Boozman (R-Ark.), Tedd Budd (N.C.), Katie Britt (R-Ala.), Bill Cassidy (R-La.), Shelley Moore Capito (R-W.Va.), Susan Collins (R-Maine), John Cornyn (R-Texas), Kevin Cramer (R-N.D.), Mike Crapo (R-Idaho), Ted Cruz (R-Texas), Steve Daines (R-Mont.), Joni Ernst (R-Iowa), Lindsey Graham (R-S.C.), Chuck Grassley (R-Iowa), Bill Hagerty (R-Tenn.), Josh Hawley (R-Mo.), Cindy Hyde-Smith (R-Miss.), Ron Johnson (R-Wis.), James Lankford (R-Okla.), Mike Lee (R-Utah), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kan.), Jerry Moran (R-Kan.), Markwayne Mullin (R-Okla.), Rand Paul (R-Ky.), John Ricketts (R-Neb.), James Risch (R-Idaho), Mitt Romney (R-Utah), Marco Rubio (R-Fla.), Mike Rounds (R-S.D.), Eric Schmitt (R-Mo.), Rick Scott (R-Fla.), Dan Sullivan (R-Ark.), Tom Tillis (R-N.C.), Tommy Tuberville (R-Ala.), J.D. Vance (R-Ohio), Roger Wicker (R-Miss.) and Todd Young (R-Ind.) also cosponsored the resolution.