Sen. Joe Manchin (D-WV) and 48 Republican senators signed on to a measure Wednesday to cancel a Biden administration rule allowing retirement plan managers to consider environmental and social issues
when making investment decisions.
Lawmakers have pushed back on the rule, arguing that it would unfairly politicize retirement funds for millions of people.
The rule, announced in November by the
Department of Labor, allows fiduciaries to weigh the environmental, social, and governance factors, also known as ESG factors
, when making investment decisions for U.S. retirement accounts rather than considering solely the rate of return.
The challenge is being led in the Senate by Mike Braun (R-IN). Rep. Andy Barr (R-KY) is leading a House version of the legislation.
Opponents have argued that the plan penalizes fossil fuel companies and allows for ideologically fueled