Barrasso, Lummis Challenge Biden Rule Politicizing Americans’ Retirement Savings

February 2, 2023

WASHINGTON, D.C. – U.S. Senators John Barrasso and Cynthia Lummis, both R-Wyo., joined U.S. Senator Mike Braun (R-Ind.) and all of their Republican colleagues in challenging President Biden’s new rule politicizing the retirement savings of millions of Americans through a Congressional Review Act (CRA) joint resolution of disapproval.

In November of 2022, President Biden created a rule that explicitly allows managers of retirement plans to consider environmental, social, and corporate governance (ESG) factors when selecting investments and exercising shareholder rights. This rule replaces a previous mandate that financial decisions be made solely on getting the best returns for the 152 million Americans who depend on ERISA for their retirement.

ESG funds tend to have lower rates of return and plan participants can be unknowingly enrolled in funds that may not align with their political views. With this rule, the Biden administration is putting the retirement savings of hardworking Americans at risk in order to favor his political agenda.

“Wyoming families are already facing record-high prices at the hands of President Biden. He is now prioritizing a far-left political agenda over Americans’ savings,” said Barrasso. “Republicans will continue to push for policies that help Americans save for a more secure retirement – not bow to the interests of radical extremists.”

“People in Wyoming want their 401(k)s to prioritize the best investments possible. The Biden administration’s attempt to politicize their retirement funds is short-sighted and is costing retirees their hard earned money that they rely on to retire,” said Lummis. “Fiduciary decisions should be made solely on investment returns, not woke priorities that leave retirement accounts less valuable and less stable. I’m glad to join my colleague Senator Braun in highlighting this important issue.”

The Congressional Review Act can be used by Congress to overturn certain federal agency regulations and actions through a joint resolution of disapproval. If a CRA joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule at issue is invalidated.