The News: A lawsuit challenging a Biden-era investment rule will be put on hold, as Trump Administration reconsiders and ultimately plans to repeal the rule. On behalf of two Wisconsin investors, the Wisconsin Institute for Law & Liberty sued the Biden Administration challenging the use of environmental, social, and governance (commonly referred to as “ESG”) factors in retirement investing. ESG factors routinely include “climate change” considerations, and divisive DEI (diversity, equity, and inclusion) concepts, instead of maximizing return on investment, which is mandated by federal law.
The Quotes: WILL Deputy Counsel, Dan Lennington, stated, “For years, the Biden Administration jeopardized retirement incomes of over 140 million Americans by pushing phony investment strategies promoting climate change and DEI. WILL was the first to sue, and now we are seeing the fruits of our lawsuit. The Trump Administration plans to revoke this rule, resulting in a big win for all those who saved for retirement.”
Additional Background: ERISA (Employee Retirement Income Security Act of 1974) protects retirement savings from mismanagement and imposes fiduciary duties on those who administer the plans, including the duty to maximize profits.
But under the Biden Administration, the Secretary of Labor promulgated a new rule in 2023 that allowed and encouraged plan administrators to consider ESG factors when making investments on behalf of plan beneficiaries. Studies have shown that noneconomic factors—like ESG investing—are not as profitable as investing in standardized portfolios, such as investing in an index like the Standard & Poor’s 500 or the Nasdaq.
The Trump Administration recently announced it is changing course from the Biden Administration, and has filed a stay in our case, Braun, Luehrs v. Walsh. We will follow with our own dismissal.
Read more: DOJ Court Filing, April 2025
