Kevin McCarthy Signs Bill Killing Biden’s ESG Rule For Retirement Plan Investments
Image CreditVictoria Marshall
“President Biden is prioritizing politics over his own people,” Kevin McCarthy, House Speaker, said during a ceremony to sign a bill that would invalidate a Department of Labor rule which allowed retirement plan investors to prioritise financial benefits over environmental or socio factors (ESG).
This is happening now: I’m about the sign the first bipartisan bill this year, and then I will send it to the White House. It blocks Biden’s woke ESG agenda. Workers are favored over Wall Street. https://t.co/cXauyBoTrv
— Kevin McCarthy (@SpeakerMcCarthy) March 9, 2023
The rule at issue, which was implemented in December 2022. It removes a Trump-era protection that required investment plan fiduciaries evaluate investments solely based on whether they improve retirement savings. However, now investment plan fiduciaries may place retirement savings into ESG funds without employee consent. ESG funds are still a significant part of the overall investment portfolio. UnderperformMore investors are available to you RiskThey charge higher fees that traditional investment funds. This can lead to a decrease in retirement savings.
“Hardworking Americans don’t need a regulation from Washington that steers them into higher fee, lower performing, less diversified funds, and that’s what these so-called ESG funds are,” Rep. Andy Barr (R.KY), who introduced the bill to Congress said. “Where people who are invested in ESG — unwittingly and without their consent in many cases — they suffer losses far greater than the average investor who is broadly and diversely invested across the board. And it’s true: these funds carry 43 percent higher fees which also eat their returns.”
House Majority Whip Steve Scalise, R-LA, was also present at signing.
“[American taxpayers] deserve to have the highest rate of return so that they can enjoy retirement to the fullest,” Scalise said. “And so President Biden’s got a choice. When Speaker McCarthy signs this bill and sends it over to The White House, President Biden’s got a choice. He’s gonna have to pick between billionaire elites and hardworking taxpayers who just want to have the best retirement possible after decades of working and paying into the system.”
House Joint Resolution 30 This bill is the first to be passed by both the House of Representatives and the Senate in the 118th Congress. Now the bill will go to President Biden’s desk, where it is likely to be approved. be vetoed. This bill is part Speaker McCarthy’s America’s commitmentA policy agenda for House Republicans, which focuses on a strong economic, a safe country, and a transparent government.
Victoria Marshall is a staff journalist at The Federalist. Her writing has appeared in The Federalist, National Review, Townhall, and the New York Post. Hillsdale College, where she studied journalism and politics, graduated her in May 2021. Follow her @vemrshll on Twitter
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