WASHINGTON – Today, U.S. Senator Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor and Pensions (HELP) Committee, released a statement following the U.S. Senate passage of a Congressional Review Act (CRA) resolution to overturn the Biden administration rule authorizing asset managers to prioritize environment, social and governance (ESG) factors over the financial success of their clients’ retirement savings. On February 8th, Cassidy joined U.S. Senators Mike Braun (R-IN), Joe Manchin (D-WV), and the entire Republican conference in supporting the CRA. The rule impacts 152 million Americans who have a retirement savings account regulated under the Employee Retirement Income Security Act (ERISA), totaling more than $11.7 trillion in assets. The final vote count was 50 to 46.
The CRA previously passed the U.S. House of Representatives by a vote of 216 to 204.
“This administration is willing to jeopardize the retirement of 152 million Americans, using their retirement savings to fund a political agenda,” said Dr. Cassidy. “Asset managers should only be prioritizing the best return when investing their client’s retirement savings. Congress’ action today demands the White House keep their hands off of Americans’ retirement savings.”
Earlier today, Cassidy, Braun, and other Senate Republicans blasted President Biden’s ESG rule in a press conference. Click here to see his full remarks.
Background
In November of 2022, the Department of Labor released a rule that allows ERISA retirement plan managers to consider environmental, social, and corporate governance (ESG) factors when choosing investments on behalf of their clients. This overturns a previous rule that mandated asset managers to choose investments solely based on financial returns.
The CRA opposing President Biden’s ESG rule was endorsed by more than 100 organizations.
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