A Republican congressman aims to curb so-called “woke investing” by forcing pension funds to focus purely on profits — even as a conservative group accused pension managers of “playing politics” with Americans’ savings.
US Rep. Andy Barr (R-Ky.) is to introduce a new bill to force retirement funds to concentrate on maximizing returns rather than environmental, social, and governance targets, more commonly known as ESG.
The law, dubbed the Ensuring Sound Guidance Act, would not ban the investments outright but would demand that firms disclose any difference in fees and returns between an ESG-linked fund and a rival index.
Sources close to the GOP lawmaker, a senior member of the House Financial Services Committee. said the draft text would be published later on Wednesday.
“American investors deserve financial advice based on sound economic principles—not political agendas,” Barr told The Post.
“The Ensuring Sound Guidance Act protects retail investors and retirement savers by reaffirming that financial advisors must prioritize financial returns, not ESG trends.
“This legislation is about keeping politics out of your portfolio and restoring the fiduciary responsibility that is essential to investor trust and long-term economic growth.”
Barr’s bid to move against ESG was blocked during the previous administration after former commander-in-chief Joe Biden vetoed a draft law that had been passed in both the House and the Senate.
The measures, which proponents claim are aimed at promoting social good, became a lightning rod earlier in the 2024 presidential campaign.
One-time contenders Vivek Ramaswamy and Ron DeSantis both lambasted the policies as being bad for American investment portfolios.
The push to hardwire ESG-bashing legislation into federal law comes amid a crackdown by state leaders against the practice.
Barr’s home state of Kentucky saw Democratic Gov. Andy Beshear sign one of this country’s toughest anti-ESG laws, demanding that state retirement funds put profits first.
The Congressman’s draft legislation came amid the publication of a new report by the conservative-leaning Unleash Prosperity that was co-authored by ex-Trump adviser Steve Moore.
The study, obtained by The Post, accused state pension funds nationwide of “playing politics with worker pensions.”
It said these funds, which typically enjoy oversight from state officials, hold “$6 trillion in stock and bond holdings of nearly 30 million Americans.”
The largest state pension fund, the California Public Employees Retirement System, held $505 billion in assets as of June 2024, figures cited by Unleash Prosperity said.
According to the report, pension managers can vote on a string of ESG measures because of the large stakes that they hold in different companies.
“Many state-run public pension funds are supporting radical activist proposals, which are often hostile to company and shareholder interests,” the study said. “The result is less in the pockets of retirees.”
It cited the examples of Net Zero climate policies arguing to phase out fossil fuels or DEI hiring quotas, which have been under attack by the new Trump administration.
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