EC Georgia News

Congressman Rick W. Allen (GA-12) and Senator Ted Budd (R-NC) have introduced a Congressional Review Act (CRA) Joint Resolution of Disapproval to overturn the Biden Department of Labor’s (DOL) finalized fiduciary rule. Congressman Allen stated, "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."

Senator Budd echoed these sentiments, saying, "The Biden administration’s latest executive overreach would make it harder for working families to invest and prepare for their financial future." He further added that this regulation would reduce access to financial advice and management options, creating uncertainty for potential retirees.

Education and the Workforce Committee Chairwoman Virginia Foxx (R-NC) criticized the DOL's fiduciary rule as an example of government control and excessive regulatory burden. She also pointed out that a similar rule was struck down by the 5th U.S. Circuit Court of Appeals in 2016.

Senate Committee on Health, Education, Labor and Pensions Ranking Member Bill Cassidy (R-LA) argued that such regulations discourage saving among lower-and middle-income Americans.

The Congressional Review Act allows Congress to disapprove of a final rule issued by a federal agency within 60 days of its publication. The Biden Administration’s fiduciary rule redefines when a financial services provider becomes subject to regulation as a fiduciary under the Employee Retirement Income Security Act (ERISA). Critics argue this will limit options for working-class Americans and restrict their access to financial advice due to increased regulatory burdens and litigation risks.

Under current ERISA laws, a fiduciary is required to provide investment advice “solely in the interest of the participants and beneficiaries.” A Deloitte study indicates that a similar 2016 Obama DOL fiduciary rule limited or eliminated financial advice to 10.2 million accounts.