Today, the U.S. House of Representatives passed H.R. 2988, the Protecting Prudent Investment of Retirement Savings Act, by a vote of 213-205. H.R. 2988 was introduced by Representative Rick W. Allen (GA-12), Chairman of the Subcommittee on Health, Employment, Labor, and Pensions, earlier this year.
This legislation aims to codify that those managing other individuals’ retirement savings under the Employee Retirement Income Security Act (ERISA) must prioritize maximizing returns for a secure retirement, rather than prioritizing political or social impacts through the use of environmental, social, and governance (ESG) factors that may be considered risky.
"Passage of the Protecting Prudent Investment of Retirement Savings Act delivers a significant win for retirees and families across the country. Under the Biden-Harris Administration, Americans’ hard-earned savings were put at risk for the sole purpose of appeasing left-wing environmentalists through risky ESG funds. Those days are over. H.R. 2988 ensures that retirement plan sponsors make investment decisions exclusively based on economic factors and financial returns – protecting the retirement security of those saving for a brighter future. I am grateful to Chairman Walberg, Speaker Johnson, and all of my colleagues for their support, and am hopeful the Senate will move swiftly in sending this bill to President Trump’s desk," said Congressman Rick Allen.
"The Biden-Harris administration’s misguided ESG policies allowed fiduciaries to play politics and steer retirees’ savings into left-wing investments for political and social purposes. Congress responded with bipartisan, bicameral disapproval, yet President Biden vetoed that effort and chose ideology over retirees. This legislation reaffirms a simple principle we should all agree on—fiduciaries must act in the best financial interests of workers and retirees. I’m proud to support Rep. Rick Allen’s bill and urge the Senate to advance this measured, responsible approach to protect retirement security," said Education and Workforce Committee Chairman Tim Walberg.
"In their haste to satisfy the radical progressive wing of their party, the Biden Administration encouraged fiduciaries to sacrifice the retirement security of millions of Americans instead of maximizing financial returns. Despite the high-risk, low yield nature of these investments, Democrats decided that progressive orthodoxy was more important than securing the future of American retirees. Rep. Allen’s Protecting Prudent Investment of Retirement Savings Act would end this practice and ensure that fiduciaries and financial institutions are not encouraged or allowed to jeopardize the American people’s hard-earned savings," said Speaker Mike Johnson.
"It’s common sense: Retirement plan managers should be solely focused on delivering maximum returns for the men and women who rely on them, not advancing a radical political agenda. I’m grateful to Rep. Allen for bringing this legislation to protect Americans’ retirement funds by ensuring retirement plan managers base investment decisions on economic factors, not ESG considerations, and am pleased to see it pass the House," said House Majority Leader Steve Scalise.
"House Republicans believe your retirement fund should be used for your retirement, not as a political statement from woke Wall Street," said House Republican Conference Chairwoman Lisa McClain. "Workers and seniors earn every dollar they save. That money should be invested to grow their future retirement income, not to bankroll radical agendas."
BACKGROUND: In 2022, President Biden’s Department of Labor finalized a flawed rule that allowed financial advisors to invest Americans’ retirement savings into risky, climate-related ESG funds. Despite bipartisan and bicameral disapproval in the form of a Congressional Review Act resolution that passed both the House and Senate, President Biden doubled down on this rulemaking by vetoing the resolution. In the 118th Congress, the House of Representatives also passed similar legislation championed by Congressman Allen, but the bill died in the Democrat-controlled Senate. The Education and Workforce Committee advanced H.R. 2988 on June 25, 2025, setting the stage for today's passage by the full House.
Watch Congressman Allen's remarks on the House floor HERE.
A fact sheet on H.R. 2988 can be found HERE.
