Bill would require 401(k) managers to prioritize financial factors over ESG
Passed one chamberH.R. 2988Latest action
Sponsor: Rick W. Allen · Representative · GA
AIDecoded by AI · checked against the recordRead the official text
Official title: Protecting Prudent Investment of Retirement Savings Act
119th Congress
Topics: Jobs & the economy
Introduced:
Read the official bill on Congress.govIn plain words
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The bill requires retirement plan fiduciaries to base investment decisions mainly on financial factors, not ESG or similar goals.
40-second read · 4 questions answered below
What does this do?
This bill requires that 401(k) and similar retirement plan investment decisions be based mainly on financial factors like risk and return, not environmental, social, or governance goals, unless a fiduciary documents that financial factors alone weren't sufficient. It also bars selecting investment managers or advisors based on race, sex, religion, or similar traits, sets rules for how plans vote on shareholder matters, and requires new risk warnings for people using self-directed "brokerage window" investment options.
Who does it affect?
This affects people with employer-sponsored 401(k)-style retirement plans, the companies managing those plans, and financial advisors or firms making investment decisions for them.
Why does it matter?
The changes would set stricter legal standards for retirement plan fiduciaries, limiting how non-financial factors and shareholder votes can be used, while requiring more disclosure for self-directed investment accounts.
AI-drafted summary. Check it against the official text before you act on it.
Read the official bill on Congress.govMake the call
Where does it stand?
- IntroducedApr 24, 2025
- House committee
- House vote
- SenateYou are here · Jan 26, 2026
- The president's desk
Right now: it passed the House, and the official record shows nothing new since. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Recorded votes
Roll-call votes recorded since January 3, 2025.
House · · Roll call 31
As recorded
- Question
- On Passage
- Result:
- Passed
- 213
- Nay
- 205
- 0
- 13
Republicans 210 yes, 8 not voting · Democrats 3 yes, 205 no, 5 not voting
Official recordHow members voted
The official record lists how each member voted.Official record
House · · Roll call 30
As recorded
- Question
- On
- Result:
- Failed
- 206
- Nay
- 210
- 0
- 15
Republicans 209 no, 9 not voting · Democrats 206 yes, 1 no, 6 not voting
Official recordHow members voted
The official record lists how each member voted.Official record