,"The U.S. Senate voted on Wednesday to overturn a Biden administration rule that allows Americans to invest their retirement funds in socially..."
The Senate voted Wednesday to overturn a Biden administration rule that would have allowed Americans to invest their retirement funds in socially conscious investments. The resolution, which was spearheaded by Republican Senator Mike Braun of Indiana, passed with a 51-50 vote, with Vice President Kamala Harris casting the tie-breaking vote.
The rule, which was expected to take effect in July, would have forced retirement funds to consider environmental, social, and governance (ESG) when investing certain retirement accounts. It was intended to give investors more options to invest in socially responsible companies, but some Republicans argued that the rule would politicize retirement investments.
In a statement, Senator Braun argued that the rule “undermines retirement accounts for working Americans and is wrong for my state.” He added that “politics should never creep into pension investments.”
The resolution was opposed by Senator Jon Tester of Montana, who argued that “the Biden administration rule is a commonsense way to help ensure people’s retirement savings are invested in the best way possible.” He noted that “Montanans have a right to invest their money in a way that reflects their values and beliefs.”
The resolution was also supported by Texas Attorney General Ken Paxton, who alleged that the rule “prioritizes woke environmental, social and governance investing over protecting retirement investors.” He added that the rule “undermines the integrity of retirement investments and leaves investors vulnerable to political whims.”
The vote marks a victory for Republicans, who have been pushing to overturn the rule since it was proposed by the Biden administration in February. The resolution now moves to the House of Representatives, where it is expected to pass.
The decision comes as Alight Inc. has expanded its employee benefits platform to include ESG investing options for employers. The company said that the new options will allow employers and employees to “align their investments with their values.”
The resolution has been a source of controversy since it was announced, with critics arguing that it would politicize retirement investments. The Senate vote is a victory for Republicans, who have argued that the rule would restrict investor choice and put retirement funds at risk.
The resolution now moves to the House of Representatives, where it is expected to pass. The fate of the resolution remains uncertain, however, as President Biden could choose to veto the measure.
