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Sen. Budd, Rep. Allen Lead Bipartisan CRA to Overturn Biden DOL Rule, Protect Consumer Choice & Investment Access

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

DOL’s new fiduciary rule redefines who qualifies as an “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA), and threatens to gut a wide range of financial tools that many of the largest financial planning and wealth management firms currently offer consumers, including 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).

Sen. Budd said in a statement:

“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. That’s why I am proud to lead the Senate’s bipartisan CRA to overturn this dangerous new regulation, and look forward to it receiving a vote on the floor.”

Ranking Member Cassidy said:

“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. This is whether they are saving for retirement, a child’s education, or for the unexpected life event. This CRA stops the Biden administration from making it harder for Americans to invest in their future.”

Sen. Manchin said:

“This Department of Labor rule is yet another example of dangerous federal overreach. While I understand the Administration’s intent to protect Americans’ retirement savings, the truth of the matter is this does the exact opposite. If allowed to go into effect, the rule has the potential to cause many West Virginians to actually lose access to investment advice due to how broadly the rule defines fiduciary. Hardworking West Virginians and Americans need protection, not uncertainty when it comes to their long-term financial security, and they certainly do not want or need the federal government further involved in their personal retirement decisions. I encourage my colleagues on both sides of the aisle to support our Congressional Review Act resolution of disapproval to overturn this reckless rule.” 

Sen. Marshall said:

“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. 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.”

Rep. Allen said:

“Saving for retirement is crucial for American families, and sound financial advice when preparing for the future should be an easily accessible resource for hardworking Americans, not a bureaucratic nightmare. By muddying the waters with burdensome overregulation, the Biden DOL’s finalized fiduciary rule does more harm than good to the very people it is claiming to protect – retirees and savers. If we do not act, this recycled Obama-era disaster will restrict access to valuable retirement guidance and impede prudent financial planning for millions of households. With the bicameral introduction of this Congressional Review Act resolution, we hope to safeguard Americans’ access to financial planning.”

Education and the Workforce Committee Chairwoman Virginia Foxx said:

“The Department of Labor’s fiduciary rule is government control and excessive regulatory burden at its worst. This rule reaches well beyond the Department’s jurisdiction and attempts to regulate individuals’ choices for their own retirement savings. Furthermore, a carbon copy of this rule was shot down by the 5th U.S. Circuit Court of Appeals in 2016. The American people are tired of the Biden administration’s regulatory overreach and unlawful actions which are foisting trillions of dollars of unnecessary compliance expenses on individuals and businesses. I thank Congressman Allen for leading a Congressional Review Act resolution to end this harmful rule on behalf of retirement plans, retirees, and savers.”

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