Barrasso, Lummis Challenge Biden Rule Politicizing Americans’ Retirement Savings

U.S. Senator John Barrasso and Cynthia Lummis joined U.S. Senator Mike Braun of Indiana and all of their Republican colleagues in challenging President Biden’s new rule politicizing the retirement savings of millions of Americans through Congressional Review Act joint resolution of disapproval. 

In November of 2022, President Biden created a rule that explicitly allows managers of retirement plans to consider environmental, social, and corporate governance (ESG) factors when selecting investments and exercising shareholder rights. This rule replaces a previous mandate that financial decisions be made solely on getting the best returns for the 152 million Americans who depend on ERISA for their retirement.

The Congressional Review Act can be used by Congress to overturn certain federal agency regulations and actions through a joint resolution of disapproval. If a CRA joint resolution of disapproval is approved by both houses of Congress and signed by the President, or if Congress successfully overrides a presidential veto, the rule at issue is invalidated.