The Republican attorneys general of 25 U.S. states have filed a lawsuit against the Biden administration’s plan to empower pension fund managers to make “socially conscious” investment decisions.
The federal lawsuit filed Thursday in the U.S. District Court for North Texas seeks to stop implementation of the Department of Labor’s rule that allows private benefit plans to invest in funds that target environmental, social or governance issues (ESG).
The lawsuit alleges that the new rule “undermines key retirement savings protections for 152 million workers…a total of $12 trillion in assets” in the name of social policy, including tackling climate change.
The rule, which takes effect Jan. 30, reverses a restriction imposed during the Trump administration that requires retirement plans to consider only financial factors when making investment decisions and exercising shareholder rights.
“The Biden administration is promoting its climate change agenda by endangering ordinary people’s retirement money,” Utah Attorney General Sean Reyes, who is presiding over the lawsuit, said in a statement to DailyMail.com.
Utah Attorney General Sean Reyes leads 24 other GOP attorneys general in lawsuit challenging Biden administration rule to relax restrictions on ESG investments
The Labor Department and Biden’s Secretary of Labor Marty Walsh (above) are named as defendants in the lawsuit, which was filed Thursday in U.S. District Court for North Texas
“Allowing asset managers to direct the money of hard-working Americans into ESG investments jeopardizes trillions of dollars of retirement savings in exchange for someone else’s political agenda,” he added.