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Bill

Bill

HR 52

Stop Woke Investing Act

119th Congress Introduced by Andy Biggs and 2 co-sponsors

Restricts DOL guidance and retirement plan fiduciaries from using ESG factors in investment decisions, requiring focus solely on financial returns and beneficiary interests.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 52

Legislative bill overview

HR 52 would prohibit the Department of Labor from issuing guidance that promotes Environmental, Social, and Governance (ESG) investing considerations in retirement plans. The bill restricts fiduciaries managing retirement accounts from considering non-financial factors like climate risk, diversity metrics, or labor practices when making investment decisions, requiring them to focus solely on financial returns and beneficiary interests.

Why is this important

Retirement savings directly affect millions of American workers and retirees. This bill addresses a fundamental debate about investment strategy: whether fiduciaries should consider risks beyond traditional financial metrics, or whether such considerations constitute political activism that inappropriately influences retirement security. The outcome could reshape how pension funds and 401(k) plans allocate billions in assets.

Potential points of contention

  • Definition of "financial materiality": Supporters argue climate risk and governance weaknesses are financial risks; opponents contend ESG criteria inject political ideology into investment decisions that should be purely profit-driven
  • Fiduciary duty scope: Whether considering long-term environmental and social risks constitutes prudent risk management or prohibited activism unrelated to financial performance
  • International competitiveness: Some argue ESG investing reflects genuine business risk assessment that competitors abroad already incorporate; others view this as unnecessary constraints on market efficiency

Compiled from official sources — confirm details with the bill’s official record.

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