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More than 100 conservative groups BACK Manchin’s plan to block Biden ‘woke’ investment rule


More than 100 conservative groups BACK Democrat Joe Manchin’s plan to block Biden from his ‘woke’ plan to let retirement planners factor ESG in Americans’ 401(k)s investments

  • Groups want to overturn rule under Congressional Review Act
  • Expedited vote allows it to pass on simple majority 
  • It is backed by Manchin and every GOP senator 

An array of conservative groups are joining to push a move by West Virginia Sen. Joe Manchin and Senate Republicans to use a special procedure to sweep away a new Biden Administration rule on ‘woke’ retirement investing.

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The rule, which the Labor Department finalized last November, states that fiduciaries ‘may consider climate change and other environmental, social, and governance (ESG) factors when they make investment decisions.

It would unwind Trump Administration actions stating that retirement plan fiduciaries must act ‘solely on consideration of ‘pecuniary factors’ – goes into effect unless Congress takes action.

Manchin and Republicans are armed with a mechanism that could allow them to roll it back using the Newt Gingrich-era Congressional Review Act, which sets up a timetable and a privileged procedure to vote on new regulations. The move comes after Manchin, who was key to several Biden legislative victories in the last Congress, joined Republicans on a bill to stop a ban on gas stoves.

Sen. Joe Manchin (D-W.Va.) is joining with Senate Republicans on a bill that would pull back a rule on ‘socially conscious’ ESV investing

Advancing American Freedom, a group started by former Vice President Mike Pence, spearheaded the letter, which is signed by 100 groups, including the influential Club for Growth, America First Policy Institute, Americans for Prosperity, Concerned Women for America, and Heritage Action.

Also signing on are groups that represent carbon-producing industries that might fall away when fiduciaries factor climate change into their decisions. These include the Pennsylvania Coal Alliance and the West Virginia Coal Association.

‘We, the undersigned organizations and officials, are calling on every member of the United States Congress to support these resolutions and stop Biden’s ideological embezzling of Americans’ retirement accounts,’ according to the letter.

To undue the administrative rule, which adds weight to an executive order Biden signed, a resolution of disapproval must pass the House in Senate.

The process essentially protects it from a filibuster. 

President signed an order and his Labor Department put out a rule on 'environmental, social, and governance (ESG) factors'

President signed an order and his Labor Department put out a rule on ‘environmental, social, and governance (ESG) factors’

Sen. Mike Braun (R-IN) has introduced a bill to pull back the rule under the Congressional Review Act. If it passes the House and Senate, the rule gets undone

Sen. Mike Braun (R-IN) has introduced a bill to pull back the rule under the Congressional Review Act. If it passes the House and Senate, the rule gets undone

‘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,’ said sponsor Sen. Mike Braun (R-Ind.).

The letter calls ESG investing a ‘pernicious practice’ that focuses on ‘divisive subjects.’

‘According to research from the University of Chicago, mutual funds scoring highly on ESG factors are constantly outperformed by funds rated lowest for ESG,’ according to the letter, which cites

‘Moreover, 85 percent of the country does not even know what ‘ESG’ is, and therefore would not be aware of the financial risks their retirement account managers are subjecting them to when they actively pursue ESG investment decisions.’ 

Pence is also playing up the move, although the potential presidential candidate is now out of government. ‘The woke capital agenda of the Biden administration needs to be cast aside for commonsense policies that protect American retirees,’ he told Fox News Digital



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