FGA Praises Congress’s Powerful, Bipartisan Rebuke of Biden’s ESG Agenda
- BY FGA
Congress used its power under the Congressional Review Act to kill the ESG rule, voting to protect the retirement accounts of more than 150 million Americans from “politically motivated” investment decisions.
Naples, FL – The Foundation for Government Accountability (FGA) praises Congress for voting down the Biden administration’s Department of Labor rule that encourages private financial plan managers to consider environmental, social, and governance (ESG) factors when investing Americans’ retirement accounts.
Last month, more than 100 groups sent a letter backing the bipartisan plan to block President Biden’s “politically motivated” ESG investing rule. Both chambers have now voted on H.J.Res.30, authored by Rep. Andy Barr (R-KY-6), to stop the ESG rule with a simple majority vote. The resolution passed 50-46 in the Senate and with a 216-204 vote in the House of Representatives.
“Hardworking Americans earn and save their money with the hope of retiring comfortably on the investments made throughout their lifetime. They expect their investments to maximize returns for their family, not to be used as a piggy bank to fund the Left’s climate agenda,” said Tarren Bragdon, president and CEO of FGA. “ESG investing has already damaged the American energy sector and increased household costs nationwide. It should not put Americans’ ability to retire at risk as well.”
“I thank Senators Braun and Manchin, as well as Speaker McCarthy and Rep. Barr, for using their authority to protect hardworking families from this latest assault from the Biden administration,” said Bragdon. “It is up to Congress to stand between the American people and the nameless, faceless bureaucrats in the Biden administration seeking to impose their will on the country through costly rules and burdensome regulations.”
Now that the legislation to block the Department of Labor’s ESG rule has passed the House and Senate, it will head to President Biden’s desk for either signature or veto.
In addition to conflicting with some investors’ values, ESG is bad investing. ESG investing yields lower returns and it does not achieve its stated social goals. A recent study demonstrated that out of 20,000 mutual funds representing more than $8 trillion, regular funds outperformed ESG funds every time. In fact, no research study has been able to show that ESG gains higher financial returns for investors. Additionally, ESG money managers typically charge 40 percent more in fees to their clients.
The Foundation for Government Accountability (FGA) is a non-profit, multi-state think tank that promotes public policy solutions to create opportunities for every American to experience the American Dream. To learn more, visit TheFGA.org.