House Panel Advances Resolution to Kill DOL Fiduciary Rule

What You Need to Know

The resolution now moves to the full House.
In another House subcommittee, a bill that blocks funding for the rule is also up for a vote soon.
Labor’s rule represents a reckless overreach by the Biden administration, according to Rep. Virginia Foxx.

The House Education and Workforce Committee passed by a 23-18 vote Wednesday a Congressional Review Act resolution to disapprove the Labor Department’s new fiduciary rule.

Labor’s rule “represents a reckless overreach by the Biden administration,” Rep. Virginia Foxx, R-N.C., chairwoman of the committee, said Wednesday during the markup.

The resolution moves to the full House.

The Congressional Review Act allows Congress to overturn rules issued by a presidential administration through a joint resolution of disapproval. The resolution must pass the House and Senate and be signed by the president, or Congress must override the president’s veto.

The resolution, H.J. Res. 142, is sponsored by Rep. Rick Allen, R-Ga., and has 31 co-sponsors.

Labor’s 2024 rule “is substantially similar to the ill-advised 2016 rule and will have a similar negative impact on low- and middle-income workers,” Wayne Chopus, president and CEO of the Insured Retirement Institute, said Wednesday in a statement.

“In its rush to adopt this rule, the DOL ignored sound evidence of its harmful effects as well as the actions taken by federal and state regulators since 2020 to enhance the regulation of financial professionals,” Chopus said.