Ahead of a House vote to override President Biden’s veto of H.J. Res. 30, a Congressional Review Act resolution to nullify the Biden administration’s rule encouraging retirement plan fiduciaries to consider or choose investments based on environmental, social, and governance (ESG) factors, Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC), delivered the following remarks:
“I rise in support of overriding President Biden’s veto of H.J. Res. 30, a Congressional Review Act resolution nullifying the Biden administration’s attempt to politicize the retirement savings of Americans.
“This is déjà vu for the American people. With his veto, the President once again insists on undermining the financial security of the very people who elected him. Republicans will stand with American workers and retirees in protecting their savings.
“ESG investing puts the future of millions of Americans in jeopardy when they are already facing economic hardships and inflation brought on by this administration’s reckless spending.
“The President says H.J. Res. 30 would make it ‘illegal to consider risk factors,’ but that statement is blatantly false and misleading. The Trump rule, which H.J. Res. 30 would reinstate, explicitly states, ‘Nothing in the final rule is intended to or does prevent a fiduciary from appropriately considering any material risk with respect to an investment.’
“Last year, the Department of Labor published a rule encouraging retirement plan fiduciaries to consider ESG factors when making investment decisions. Biden protected this rule with his veto.
“Now, thanks to Democrats, workers can be placed into ESG investment vehicles by default. And if a fiduciary finds that two investments are equal, the fiduciary is allowed to use collateral ESG factors to break the tie without justifying or documenting that decision.
“This is especially concerning since ESG investments often underperform and are riskier than other investment strategies.
“The Left is using ESG investment criteria as a political tool to cudgel companies into accepting leftist policies. If we do not override this veto, the Left will use ESG investing to push non-compliant companies out of the marketplace.
“Congress debated and it came to the bipartisan conclusion to overturn the Biden rule. Now, the administration persists through executive fiat.
“Americans invest to secure their future, not to fund the Green New Deal or Leftist pet projects.
“That is why I supported the resolution to nullify the Biden administration’s destructive rule. I urge my colleagues to quit playing petty politics and vote in accordance with the best interests of the American people."