WASHINGTON—U.S. Senator John Boozman (R-AR) has partnered with Senator Mike Braun (R-IN) and a bipartisan group of 49 other senators in challenging President Biden’s environmental, social, and corporate governance (ESG) rule which politicizes millions of Americans’ retirement investments to favor liberal ideological preferences rather than getting the best returns for Americans. The senators will introduce a joint resolution of disapproval under the Congressional Review Act (CRA) to nullify the Biden administration’s proposed rule.

“Millions of Americans need their hard-earned retirement savings to go as far as possible. At a time when budgets are already stretched incredibly thin thanks to rampant inflation, the last thing the Biden administration should be doing is elevating any effort to undermine financial security by emphasizing investment factors other than risk and return. Hard-working Arkansans want their money working for them, and focusing on anything else is a distraction. I’m proud to join my colleagues to challenge this irresponsible rule,” Boozman said. 

“President Biden is jeopardizing retirement savings for millions of Americans for a political agenda. In a time when Americans’ 401(k)s have already taken such a hit due to market downturns and record high inflation, the last thing we should do is encourage fiduciaries to make decisions with a lower rate of return for purely ideological reasons. That’s why we are proud to stand up against this rule for the millions of Americans who depend on these funds for their retirement,” Braun said.

In November 2022, President Biden instituted a rule explicitly permitting ERISA retirement plan fiduciaries to consider ESG factors when selecting investments and exercising shareholder rights. This rule replaces a Trump-era 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. Should it go into effect, retirement fund managers will be able to prioritize ESG factors instead of financial returns in their investment decisions for workers’ hard-earned savings. 

The CRA provides Congress an expedited mechanism to overturn certain federal agency regulations and actions through a joint resolution of disapproval. A joint resolution of disapproval under the CRA is afforded special procedures, bypassing normal Senate rules and allowing for a vote on the Senate floor. If a CRA joint resolution of disapproval is approved by a simple majority in both houses of Congress and signed by the President—or if Congress successfully overrides a presidential veto—the rule is invalidated. 

Senate Republican Leader Mitch McConnell (R-KY) and Senators John Thune (R-SD), John Barrasso (R-WY), Marsha Blackburn (R-TN), Tedd Budd (R-NC), Katie Britt (R-AL), Bill Cassidy, M.D. (R-LA), Shelley Moore Capito (R-WV), Susan Collins (R-ME), John Cornyn (R-TX), Tom Cotton (R-AR), Kevin Cramer (R-ND), Mike Crapo (R-ID), Ted Cruz (R-TX), Steve Daines (R-MT), Joni Ernst (R-IA), Deb Fischer (R-NE), Lindsey Graham (R-SC), Chuck Grassley (R-IA), Bill Hagerty (R-TN), Josh Hawley (R-MO), John Hoeven (R-ND), Cindy Hyde-Smith (R-MS), Ron Johnson (R-WI), John Kennedy (R-LA), James Lankford (R-OK), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall, M.D. (R-KS), Jerry Moran (R-KS), Markwayne Mullin (R-OK), Lisa Murkowski (R-AK), Rand Paul (R-KY), Pete Ricketts (R-NE), Jim Risch (R-ID), Mitt Romney (R-UT), Marco Rubio (R-FL), Mike Rounds (R-SD), Eric Schmitt (R-MO), Rick Scott (R-FL), Tim Scott (R-FL), Dan Sullivan (R-AK), Thom Tillis (R-NC), Tommy Tuberville (R-AL), J.D. Vance (R-OH), Roger Wicker (R-MS), Todd Young (R-IN) and Joe Manchin (D-WV) are also cosponsors of the CRA.

Representative Andy Barr (R-KY-06) is leading the House version of the legislation.

This disapproval resolution is endorsed over 100 groups including 60 Plus Association, Able Americans, Association of Mature American Citizens Action, American Association of Senior Citizens, American Securities Association and State Financial Officers Foundation.