Joco Today

Today, Senators Roger Marshall, M.D., Ted Budd (R-NC), Bill Cassidy, M.D. (R-LA), ranking member of the Senate Health, Education, Labor, and Pensions (HELP) Committee and Joe Manchin (D-WV) introduced a resolution of disapproval under the Congressional Review Act to overturn a rule from the Department of Labor (DOL). The senators argue that this rule endangers financial choice and access.

The DOL's new fiduciary rule redefines who qualifies as an “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA). Critics say it threatens to undermine a wide range of financial tools currently offered by large financial planning and wealth management firms. These include basic financial education and investment planning courses, life insurance, annuity plans, and other financial instruments.

Other Senate co-sponsors include Senators Kevin Cramer (R-ND), John Barrasso (R-WY), Chuck Grassley (R-IA), Steve Daines (R-MT), Joni Ernst (R-IA), Bill Hagerty (R-TN), Jim Risch (R-ID), Roger Wicker (R-MS), Mike Crapo (R-ID), James Lankford (R-OK), Marsha Blackburn (R-TN), and Mike Braun (R-IN).

The House companion is led by Rep. Rick Allen (R-GA) and supported by House Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC).

“This rule is a slap in the face for low to middle income Americans trying to save up for retirement. Once again, Joe Biden is trying to regulate a problem that doesn’t exist,” Senator Marshall said. “Americans have a variety of options for retirement savings, but this rule – like any regulation – will add costs for brokers and price out people who are trying to find retirement options in an already tough economy.”

Senator Budd echoed these sentiments, stating, “The Biden administration’s latest executive overreach would make it harder for working families to invest and prepare for their financial future. Consumers would lose access to financial advice, reduce the number of financial management options, and throw a would-be retiree’s financial security into uncertainty."

Senator Cassidy added that the Biden administration is imposing burdensome regulations that restrict investing opportunities, especially for lower-and middle-income Americans. "Americans should be encouraged to save by, among other things, minimizing hassle,” he said.

Senator Manchin also expressed his disapproval of the rule. “Hardworking West Virginians and Americans need protection, not uncertainty when it comes to their long-term financial security," he said. "I encourage my colleagues on both sides of the aisle to support our Congressional Review Act resolution of disapproval to overturn this reckless rule.”

Rep. Allen stated that saving for retirement is crucial for American families and sound financial advice should be an easily accessible resource. He criticized the DOL's finalized fiduciary rule as a bureaucratic nightmare that does more harm than good.

Finally, Rep. Foxx described the DOL's fiduciary rule as government control and excessive regulatory burden at its worst. She called out the Biden administration's regulatory overreach and unlawful actions which she claims are foisting trillions of dollars of unnecessary compliance expenses on individuals and businesses.