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Congress considers blocking Biden’s ESG retirement plan rule (2023)
| Environmental, social, and corporate governance |
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| • What is ESG? • Enacted ESG legislation • Arguments for and against ESG • Opposition to ESG • Federal ESG rules • ESG legislation tracker • Economy and Society: Ballotpedia's weekly ESG newsletter |
According to Bloomberg Law, Republicans in the Senate have been trying to garner commitments from their colleagues to prevent the Biden Labor Department from implementing its rule permitting ESG considerations in retirement plans or to force the president to veto their efforts. Every Republican in the Senate and Sen. Joe Manchin (D-W.Va.) expressed they would support a resolution under the Congressional Review Act opposing the rule, meaning one more vote would be necessary to block it. Sen. Angus King (I-Maine), who caucuses with Democrats, and Sen. Jon Tester (D-Mont.) have said they have not decided how to vote:
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The fate of a Republican push to overturn a Biden administration rule on socially conscious retirement investing hinges on a single vote in the Senate as moderate lawmakers up for re-election in 2024 evaluate their options. Sen. Mike Braun (R-Ind.) has pledged to bring a resolution to the floor under the Congressional Review Act to block the rule after next week’s recess. The resolution would overturn the Department of Labor regulation that permits retirement plans to consider environmental, social, and corporate governance factors on behalf of plan participants. Braun’s resolution already has the support of every Republican senator, plus West Virginia Democrat Joe Manchin. Independent Sen. Angus King (Maine), who caucuses with Democrats, and Jon Tester (D-Mont.) said this week they haven’t decided how they’ll vote. If both the Senate and House pass the resolution, it could force President Joe Biden to use the administration’s first veto, and amplify a debate that has already spilled over into the courts and equated ESG with “woke” liberal politics. Moderate critics say that sets a dangerous precedent for economic evaluations, and ultimately could put millions of American retirement savers at a disadvantage. … Resolutions under the CRA to overturn executive action require only a simple majority, allowing Republicans to circumvent the usual 60-vote filibuster-proof margin required to pass most legislation in the Senate. Democrats can’t afford a single extra detraction if they want to uphold the Biden’s administration rule and avoid a Republican win on the issue. “We got every Republican and Joe Manchin on it, so we’re looking for one more Democrat,” Braun said. “We’re working on that, but we won’t know for sure until it hits the floor.” King said Tuesday he needed more time to consider the issue. Last week, he expressed some concerns about ESG investment in retirement plans. Those plans have a fiduciary duty to maximize return, he said. “If people want to make their own decisions about how they invest, that’s one thing. But if it’s a fund of other people’s money, I think their role is maximizing return, not affecting social policy,” King said. Tester said he still needs to look into the DOL rule for clearer understanding of whether it requires or recommends the ESG consideration. That distinction, he said, “makes a big difference.”[1] |
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See also
- Environmental, social, and corporate governance (ESG)
- Economy and Society: Ballotpedia's ESG newsletter
External links
Footnotes
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
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