The Stock Watcher
Sign InSubscribe

Senate Passes Measure to Block Woke Investing Rule

Share this article

Senate passes measure to revoke Biden's 'woke' investing rule.

A group of people in suits standing in front of the Capitol building in Washington, DC.

The Biden administration has been facing pushback on its progressive investment policies, with Republicans rallying against what they call “woke” investing. The House voted Tuesday to kill a Biden administration rule encouraging retirement plan fiduciaries to invest in ESG companies, which the GOP has labeled as a form of “social engineering” that could hurt retirement savers. On Wednesday, the Senate followed suit and passed a resolution to overturn the Department of Labor rule that allows retirement plans to consider environmental, social and corporate governance principles.

The rule, which took effect earlier this year, encourages investment managers to factor environmental, social, and corporate governance (ESG) factors into their decision-making when investing retirement savings. It requires retirement plan fiduciaries to consider non-financial factors when making decisions about investments. The Department of Labor has argued that the rule protects savers from investments that could be harmful to their long-term financial security, such as those with excessive fees or investments in companies with poor environmental or social records.

The move to overturn the rule has been met with fierce opposition from progressive groups, who argue that it is an attack on the Biden administration’s efforts to promote responsible investing. They argue that ESG factors can be integral to a company’s long-term success, and that considering them can help invest in companies that are better for the environment and society.

Republicans have countered that the rule is an example of government overreach and could lead to more costly investments for retirement savers. They have argued that ESG investing could force retirement savers to pay higher fees and sacrifice their returns in the name of social responsibility.

The resolution to overturn the rule passed the Senate by a vote of 51-50, with Vice President Kamala Harris casting the tie-breaking vote. The resolution now moves to the House, where it is expected to pass. President Biden has threatened to veto the bill, which would repeal the investment policy that took effect earlier this year.

If the president vetoes the bill, it is likely to be overturned in the Senate, where Republicans hold a slim majority. However, Democrats could still attempt to block the repeal by using procedural tactics.

The debate over the rule has exposed a growing rift between the two parties over the role of government in the financial markets. Republicans have argued that the government should not be making investment decisions for retirees, while Democrats have argued that the government should be protecting savers from irresponsible investments.

woke investingesgbiden administrationretirement plansenvironmentalsocialcorporate governancegovernment overreachfinancial markets

May Interest You

Share this article
3640 Concord Pike Wilmington, DE 19803
About TheStockWatcher
© 2023 - TheStockWatcher. All Rights Reserved