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McConnell satirizes Biden’s ‘radical’ 401(k) rules as Republicans seek to scrap new ESG clause

Senate Minority Leader Mitch McConnell on Tuesday broke new rules from the Biden administration, saying 401(k) fund managers will consider climate change and social justice politics when investing in their clients’ retirement savings. Now you can.

Republicans in Kentucky have denounced the Labor Department’s provision allowing fiduciaries to invest in environmental, social and corporate governance – ESG investments – as a failure of their obligation to seek the best possible financial return. bottom.

“The Biden administration will enact radical new regulations to help liberals use their retirement savings to fund political causes they may not even support,” McConnell said on the floor. We are doing it,” he said. “Democrats want asset managers to prioritize these unrelated ideological goals over bringing the best retirement benefits to their customers, the average American worker.”

His criticism came as Republicans on Capitol Hill hoped to force President Biden to issue a first veto by passing a special measure that would scrap the new ESG rule. The Republican-controlled House will pass a bill known as the Congressional Review Act on Tuesday.

Resolutions cannot be filibustered in the Senate, so they require only a simple majority to pass. It’s unclear when Senate Majority Leader Charles E. Schumer (D-NY) will take a vote, but Republicans appear poised to pass the bill in the Democratic-led House as well.

West Virginia Democratic Senator Joe Manchin III, along with all 49 Republicans in the Senate, endorsed the resolution. Unless Democratic Sen. John Fetterman of Pennsylvania, who is undergoing treatment for depression, is absent from the ballot, it will take one more Democrat to break the ranks to pass.

The White House has already issued a denial threat, saying the rule “is not a mandate and does not require fiduciaries to make investment decisions based solely on ESG factors.”

Yet Republicans have set their sights on defeating ESG regulations as part of a broader war against “woke” investment practices.

“Putting ideology ahead of seeking the best returns, of course, hurts returns,” McConnell said. “In effect, we are talking about allowing financial companies to seize workers’ retirement benefits without authorization in order to pursue unrelated liberal political goals.” McConnell satirizes Biden’s ‘radical’ 401(k) rules as Republicans seek to scrap new ESG clause

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