The U.S. House of Representatives passed H.R. 4790, the “Prioritizing Economic Growth Over Woke Policies Act,” by a vote of 215 to 203. Alaska Rep. Mary Peltola voted with the Democrats against the measure, now heading to the Senate for consideration.
H.R. 4790, introduced by Congressman Bill Huizenga of Michigan, aims to make it easier for Americans to save for retirement and increase their financial security. The bill seeks to prevent regulatory overreach that mandates social and environmental considerations in economic systems and investment decisions. According to Huizenga, these mandates, pushed by the Biden-Harris Administration, have led to nearly every pension plan allocating funds to low-return social and environmental initiatives.
“The mandates being put forward by the Biden-Harris Administration make it so my constituents will retire with less financial security,” said Huizenga.
Prioritizing economic stability over ESG concerns
“With inflation and high prices negatively impacting seniors on a fixed income as well as individuals and families trying to find a way to make ends meet, Washington shouldn’t be making it harder for Southwest Michigan families to achieve the American Dream.”
Critics argue that ESG mandates compromise the fiduciary responsibilities of investment advisors, who should focus on maximizing returns rather than social goals.
Huizenga emphasized that stopping these mandates would benefit pension funds across the board, from larger city police pension funds to individual investment plans. “This legislation is a win for families in Battle Creek, Holland, Kalamazoo, Mattawan, Plainwell, St. Joe, and everywhere in between who are working to build a brighter and more secure financial future,” Huizenga added.
The bill’s opponents, including Rep. Peltola, believe that maintaining ESG investment considerations is crucial for long-term societal and environmental health. The debate highlights federal policy’s ongoing tension between financial growth and social responsibility.
As the bill moves to the Senate, the conversation around the importance and impact of ESG mandates in financial planning and investment strategies continues.
