EC Georgia News

Today, the House Committee on Education and the Workforce advanced H.J. Res. 142, a Congressional Review Act (CRA) Joint Resolution of Disapproval introduced by Congressman Rick W. Allen (GA-12) to overturn the Biden Department of Labor’s (DOL) finalized fiduciary rule.

Before the committee voted to advance H.J. Res. 142, Congressman Allen delivered the following remarks:

"Thank you, Madam Chair, for including H.J. Res.142 in today's markup. This bipartisan and bicameral Congressional Review Act Joint Resolution of Disapproval is intended to stop the Biden Department of Labor's (DOL) finalized 'Retirement Security Rule,' also known as the 'Fiduciary Rule.'

"In today's economic environment, saving for retirement has become an increasingly daunting challenge for many Americans. Under the Biden Administration, we have witnessed a sharp rise in the cost of basic necessities, putting a significant strain on household budgets. On average, Americans are spending over $1,000 more per month than they were just three years ago, and real average weekly wages have declined by 4.4% since President Biden took office.

"As Joe Biden continues to jeopardize the financial health of our citizens, safeguarding retirement savings has become an urgent priority for working families. The Biden Administration has shown that it is out of touch with reality by finalizing such an overly restrictive fiduciary rule that complicates financial planning through excessive regulation.

"This is why I am proud to lead the charge in the House to safeguard Americans’ access to prudent financial advice and protect retirees and savers. This rule is nothing more than a revival of an Obama-era regulation that resulted in the Fifth Circuit Court of Appeals overturning the nearly identical rule in 2018. The Fifth Circuit Court of Appeals recognized that this type of regulation would undermine access to retirement products which are currently available.

"According to a Deloitte study, the similar 2016 Obama DOL fiduciary rule limited or eliminated financial advice to 10.2 million accounts. Furthermore, a Hispanic Leadership Fund study found that reinstating the 2016 rule would reduce retirement savings for 2.7 million individuals with incomes below $100,000 by an estimated $140 billion over 10 years.

"The DOL's comment process evidenced virtually no interest in public comments—a clear violation of the Administrative Procedure Act. The Biden Administration is telling us loud and clear that it does not care about American retirees and savers who have worked their entire lives in hopes of enjoying the fruits of their labor. Madam Chair, the Biden Administration has shown that it is okay with the harm this rule would cause to consumers. We must not stand by as the DOL imposes burdensome regulations at the expense of hardworking families trying to secure their financial futures. I urge adoption of this resolution and yield back the remainder of my time."