H.R. 2988Passed one chamberJobs & the economy
Bill would require 401(k) managers to prioritize financial factors over ESG
Data as of July 11, 2026
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
Decoded
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.
Where does it stand?
- Introduced
- House committee
- House vote
- Senate — You are here
- President's desk
Right now: it passed the House and now goes to the Senate. If the Senate changes it, it goes back to the House before reaching the President.
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Official title
Protecting Prudent Investment of Retirement Savings Act
- Introduced:
- April 24, 2025
- Latest action:
- January 26, 2026
Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
Read the official bill on Congress.govMake the call
Three steps: where you stand, your script, the call.