Defending American Retirement Funds from Risky ESG Factors

In 2022, the Biden Administration's Department of Labor released a rule that gave retirement plan managers the green light to factor environmental, social, and governance (ESG) considerations into investment decisions for the retirement funds of more than 152 million Americans. It even allowed plan managers to automatically enroll retirement savers into ESG investments.

Americans invest and depend on their retirement savings for their future and their family’s future – not to fund radical Democrats pushing their political Green New Deal ideology on the American people. 

The last thing the federal government should do is encourage retirement plan managers to make decisions that put left-wing environmental and social issues ahead of retirees’ financial security, especially since many ESG funds are high-risk and well-known underperformers.

Let’s be clear: Retirement plan managers should be solely focused on delivering maximum returns for the men and women who rely on them, not advancing a political agenda. House Republicans are bringing forward legislation to protect Americans’ retirement funds from being jeopardized by politically-motivated ESG considerations.

H.R. 2988, the Protecting Prudent Investment of Retirement Savings, introduced by Rep. Rick Allen, forces financial institutions to focus on maximizing returns in retirement plans instead of woke ESG factors by ensuring financial institutions base investment decisions on economic factors and complete information is provided to retirement investors.

House Republicans will continue to stand up against Democrats’ woke ESG agenda for the millions of Americans who work hard to save for their retirement.