States Double Down on Effort to Block ESG 401(k) Rule in Texas

The US Labor Department regulation permitting private-sector retirement plans to consider socially conscious investments on a limited basis turns US benefits law “on its head,” according to more than two dozen states suing regulators.

States challenging the environmental, social, and corporate governance investing rule in a Texas federal court said in a late Tuesday filing that the Biden administration’s position burdens plan participants as opposed to the fiduciaries charged with protecting them.

Plaintiffs filed a motion in support of their effort to convince Judge Matthew J. Kacsmaryk of the US District Court for the Northern District of Texas to temporarily ...