Last Thursday, the GOP-led U.S. House of Representatives failed to override President Joe Biden’s veto of a critical bill aimed at negating the Biden administration’s recent regulation that allowed environmental, social, and governance (ESG) scores to be considered in investment decisions.
Using special procedures, the House and Senate approved the rollback with a simple majority in both chambers, but there was not enough support in Congress to mount the veto override.
This specifically affects 401k retirement accounts, putting the hard-earned money of everyday Americans at risk by elevating political goals such as climate change and social justice above financial returns. This is a big loss for our party, our society, and our economy.
Democrats want you to believe that ESG investing is vital because it addresses both material and non-material risks, but that is a paradox. Fiduciaries cannot both maximize investor returns while also attempting to achieve the radical left-wing objectives of the Biden administration, Wall Street, and globalist organizations. ESG is a dangerous trend that puts the U.S. economy and U.S. citizens’ investment accounts at risk. Republicans have been attempting to fight back by rolling back the Labor Department rule, reinstating the Trump-era policy that banned 401k account fiduciaries from considering ESG factors in investment decisions.
The newly empowered House Republicans sought to undo these woke government policies that have infiltrated our society. These policies claim to maximize returns by assessing climate- and social justice-related risks, by coercing climate change mitigation policies and diversity, equity, and inclusion. These practices undermine the very principles of our nation.
Including such factors in financial planning has gained in popularity as Americans seek different options for where they park their retirement savings and other investments. But, this is not the way to go forward.
The failure to override the veto means that investment plan fiduciaries can continue to consider ESG factors, but this is not the end of the battle. We must stand with the Republicans and fight against “woke” policies that threaten our economy and our nation’s values. We cannot afford to indulge in dangerous trends like ESG investing that put our future at risk.