(DailyDig.com) – Republican Sen. Mike Braun from Indiana and Republican Representative Andy Barr from Kentucky have introduced a bill to overturn a new Labor Department rule regarding Environmental and Social Governance (ESG) as it relates to retirement investments. This legislation has the support of a coalition of all Republican-governed states, upwards of 100 conservative organizations and leaders, and Democrat Joe Manchin of West Virginia.
According to the group, which is headed by Utah State AG Sean Reyes, the US Department of Labor regulation is illegal under federal law. It would jeopardize trillions of investment dollars in retirement funds and is motivated by a political agenda.
The regulation was intended to allow retirement plan managers to take climate change considerations, as stated in ESG, into account when making investment decisions. According to the proposed measure, this regulation would politicize many of the retirement assets of 152 million Americans and advance a woke ideology on capital investing.
According to a University of Chicago study, mutual funds with the lowest ESG ratings consistently beat those with the highest ratings. Studies from UCLA and NYU support the conclusion that when ESG norms are utilized to inform investment decisions, the results are often subpar when compared with the market as a whole.
Former Vice President and AAF founder Mike Pence stated that Biden’s social agenda should be abandoned in favor of sensible regulations that protect American retirees. They want to provide Americans with the tools they need to defend their retirement accounts.
According to Pence, “The American people deserve accountability” for all of their invested funds and the assurance that ESG’s expansion is stopped.
Through the Congressional Review Act, Congress is encouraged to undo the Biden administration’s policies. According to that statute, if a joint resolution is approved by the Senate and the House, it must be put to a vote and, if approved, utilized to repeal rules. The resolution’s backers anticipate the support of Joe Manchin, D-WV, to vote in favor of it, which would ensure its Senate passage.
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