U.S. Senator JD Vance (R-OH) is joining a bipartisan challenge alongside 49 other U.S. Senators who oppose President Biden’s new Environment, Social, and Governance (ESG) rule, which politicizes the retirement assets of millions of Americans in order to support Biden’s ideological viewpoints rather than obtaining the highest returns for Americans.
“Joe Biden’s ESG investing rule is a brazen attempt to funnel Americans’ retirement savings toward far-left special interest groups,” Vance told The Ohio Star.
President Biden implemented a rule in November set to go into effect on January 30th, allowing Employee Retirement Income Security Act (ERISA) retirement plan fiduciaries to specifically take ESG considerations into account while making investment decisions and exercising shareholder rights.
The former rule, which required that fiduciary choices be made purely with the goal of obtaining the highest returns for the 152 million American employees who rely on ERISA for their retirement, has been replaced by the Biden rule. Because ERISA covers most employer-sponsored retirement plans, it equates to approximately $11.7 trillion in assets.
Managers of retirement funds are permitted, under Biden’s proposal, to give ESG considerations precedence over financial results when making investment choices for the hard-earned assets of employees. Unknowingly enrolling in ESG funds that may conflict with their political views could happen to plan participants.
“Millions of hard-working Ohioans spend decades sacrificing and saving for the chance to retire with dignity. They deserve nothing less than the maximum rate of return,” Vance told The Star.
According to the most current survey from the Daily Wire, most Americans believe it’s a poor idea for businesses to use their financial clout to further a political or social agenda, as is the case with ESG investing.
Studies conducted by Harvard Business Review have demonstrated that the return on ESG investing strategies is lower. For instance, a UCLA and NYU analysis found that during the previous five years, ESG funds underperformed the overall market, returning an average of 6.3 percent versus 8.9 percent, respectively. ESG investors typically pay more prices for worse returns in comparison to conventional investment strategies.
Republican state authorities have been attempting to target corporate overreach and ESG investing regulations for months.
More than two dozen Republican attorneys general filed a lawsuit last week challenging the ESG rule, also claiming that it violates the Employee Retirement Income Security Act, which requires that retirement plan assets only be invested for the benefit of participants.
U.S. Senator Mike Braun (R-IN) will introduce the bipartisan disapproval resolution Wednesday and U.S. Representative Andy Barr (R-KY) will introduce a companion bill in the House. By passing the resolution, Congress will have the power to defy the administration and repeal the policy.
Joint resolutions of disapproval cannot be stopped from being discussed on the floor under the Congressional Review Act. Supporters of the resolution anticipate at least one more Democrat to endorse it and help it succeed in the Senate, where it will only need a simple majority vote to pass and be forwarded to Biden.
“I’m proud to cosponsor this legislation to eliminate the Biden Administration’s latest woke scam,” Vance told The Ohio Star.
The bipartisan legislation has the backing of over 100 groups.
Groups in support include: Advancing American Freedom, Club for Growth, America First Policy Institute, American Accountability Foundation, Americans for Prosperity, Concerned Women for America, Fair Energy Foundation, Heritage Action, Independent Women’s Voice, and more.
The U.S. Senate Republicans joined as a cosponsor of the bill are: Leader Mitch McConnell (R-KY), John Thune (R-SD), John Barrasso (R-WY), Marsha Blackburn (R-TN), John Boozman (R-AR), Ted Budd (R-NC), Katie Britt (R-AL), Bill Cassidy (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), Mike Lee (R-UT), Cynthia Lummis (R-WY), Roger Marshall (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-SC), 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). Senator Joe Manchin (D-WV) joins on the Democratic side.
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Hannah Poling is a lead reporter at The Ohio Star and The Star News Network. Follow Hannah on Twitter @HannahPoling1. Email tips to [email protected]
