WASHINGTON, D.C. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.) voted in favor of a Congressional Review Act of Disapproval — led by U.S. Senator Mike Braun (R-Ind.)—regarding the Biden administration’s Department of Labor rule allowing retirement plan fiduciaries to consider environmental, social, governance (ESG) factors in their investment actions. This disapproval resolution passed the Senate, and now heads to President Joe Biden’s desk, upon which he has said he will veto.

“Americans who work today and save for tomorrow need to optimize their returns to afford life in retirement. The administration’s ill-advised ESG rule pressures financial experts to shift potential gains away from American retirees and into the White House’s radical climate agenda. My colleagues and I sent a clear message to President Biden regarding his rampant overreach today. It is my hope that the president does not follow through on his veto threat, and instead acknowledges the bipartisan, bicameral rejection of this misguided policy,” Senator Capito said.

Earlier today, Senator Capito delivered remarks on the Senate floor regarding the continuous overreach tactics of the Biden administration, and the need for Republican oversight in the face of unprecedented expansion of the administrative state. Senator Capito’s full floor speech is available here.

BACKGROUND:

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.

Congressman Andy Barr (R-Ky.) led the House version of the legislation that passed by a vote of 216-204 last night.

This motion has been endorsed by the West Virginia Coal Association, State Treasurer of West Virginia, a Member of WV House of Delegates, and over 100 other organizations.

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