As Americans’ savings dwindle near an all-time low, U.S. Senator Joni Ernst (R-Iowa) joined all 48 of her Senate Republican colleagues and two of her Democratic colleagues in fighting to halt President Biden’s new rule that politicizes Americans’ 401(k)s.
In November, Biden instituted a new rule that would allow financial institutions to send your retirement money to woke corporations and companies driven by environmental and social justice. Rather than prioritizing what would make an individual the most money, this rule would allow woke money managers to invest in companies based on their carbon footprint, donations to left-leaning charities, or diversity and inclusion trainings. Previously, regulations mandated that investment firms, banks, or other institutions make decisions solely based on profitability. Biden’s new rule would affect about 152 million Americans’ retirement accounts and a total of $11.7 trillion in assets. Compared to traditional funds, environmental, social, and corporate governance (ESG) funds have higher fees and a significantly lower rate of return.
“For dinner, President Biden is gobbling up Americans’ paychecks, and for dessert, he’s eating at their 401(k)s,” said Ernst, Ranking Member of the Senate Small Business Committee. “Biden’s radical rule promotes a reckless social agenda over Americans’ financial security; you simply will pay more to get less! I’m proud to support this bipartisan effort to ensure folks can depend on the accounts they spend a lifetime paying into.”
The resolution to stop Biden’s retirement investment rule passed the Senate on Wednesday 50-46.