Biden ESG 401(k) Rule’s Survival in Court Pressures Trump to Act

A Texas federal court ruling that greenlit a Biden-era eco-friendly 401(k) investing rule puts pressure on the Trump administration to go back to the regulatory drawing board and defend its “anti-woke” policy.

The 2022 rule that permits retirement plans to consider environmental, social, and governance factors when selecting investments contradicts the effort President Donald Trump undertook during his first term to limit the proliferation of ESG funds in private-sector nest eggs.

Yet, US District Court for the Northern District of Texas Judge Matthew Kacsmaryk found little meaningful distinction between the Trump and Biden-era rules when he allowed ...