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Congress·Reported·about 2 months ago

House Committee Advances Bill Requiring Retirement Fund Managers to Prioritize Financial Returns Over Other Goals

Also known as: Increase Retirement Earnings Act

Legislative Progress

✓ Filed
✓ Review
✓ House

213–205

Senate
President

Key Points

  • Retirement plan managers would have to base investment choices mainly on money-related factors like risk and return, not other goals, unless investments are truly tied on financial grounds and the reason is documented.
  • Workplace retirement plans could still offer “values-based” funds as optional choices, but those funds could not be used as the plan’s default option if they rely on non-money factors.
  • Plan managers voting company shares with retirement money would face stricter rules: focus on financial impact, consider costs, keep records, and avoid voting to push non-money goals.
  • Plan managers choosing plan service providers (like advisors or consultants) would be required to do so without considering race, color, religion, sex, or national origin.
  • Workers using a plan’s brokerage window would have to get and acknowledge a clear warning each time they trade, including a simple illustration showing how different return rates could change savings by age 67.
Labor EmploymentConsumer Protection

Milestones

3 milestones7 actions
Jan 12, 2026House

Rules Committee Resolution H. Res. 988 Reported to House. Rule provides for consideration of H.R. 2988, H.R. 2262, H.R. 2270, H.R. 2312 and H.R. 4366. The resolution provides for consideration of H.R. 2988 under a structured rule, and H.R. 2262, H.R. 2270, H.R. 2312, and H.R. 4366 under a closed rule. The rule provides for one hour of general debate and one motion to recommit on each bill.

Dec 30, 2025House

Placed on the Union Calendar, Calendar No. 367.

Dec 30, 2025House

Reported (Amended) by the Committee on Education and Workforce. H. Rept. 119-421.

Jun 25, 2025House

Ordered to be Reported (Amended) by the Yeas and Nays: 21 - 15.

Jun 25, 2025House

Committee Consideration and Mark-up Session Held

What Happens Next

Projected impacts based on AI analysis

12 months after the bill becomes law

New “pecuniary factors first” rule starts for retirement plan investment decisions

Plan decision-makers must base investment choices mainly on money-related factors like risk and expected return; using other factors as a tiebreaker requires documentation. Some plan lineups and default options may be reviewed or changed.

Vote Results

3 votes
HousePassedAmendmentJan 15, 2026

On Agreeing to the Amendment

An amendment to elect officers of the House.

395
22
Democrat
186 – 22 · 5
Republican
209 – 0 · 9
View full roll call
HouseFailedAmendmentJan 15, 2026

On Motion to Recommit

206
210
Democrat
206 – 1 · 6
Republican
0 – 209 · 9
View full roll call
HousePassedPassageJan 15, 2026

On Passage

213
205
Democrat
3 – 205 · 5
Republican
210 – 0 · 8
View full roll call

Related News

5 articles
Bloomberg Law News·about 2 months ago

House Approves Bill Blocking ESG Factors From Worker 401(k)s

The House passed the Protecting Prudent Investment of Retirement Savings Act (H.R. 2988) in a 213-205 vote. The bill amends ERISA to mandate that employer-sponsored retirement plan managers make investment decisions based purely on financial considerations rather than ESG factors.

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POLITICO Pro·about 2 months ago

House passes bill to limit ESG factors in retirement investing

The GOP-backed legislation would tighten standards for when fiduciaries can consider environmental, social and governance matters. It targets a Biden-era Labor Department rule that allowed fund managers to consider ESG factors as tiebreakers when investments are economically equivalent.

CL=
InsuranceNewsNet·about 2 months ago

House passes bill restricting ESG investments in retirement accounts

The Protecting Prudent Investment of Retirement Savings Act passed the House 213-205. Rep. Rick Allen stated the bill ensures plan sponsors make decisions exclusively based on economic factors, protecting retirees from 'risky ESG funds' promoted by the previous administration.

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Source Information

Document Type

Congressional Bill

Official Title

Protecting Prudent Investment of Retirement Savings Act

Bill NumberHR 2988
Congress119th Congress
ChamberHouse of Representatives
Latest ActionRules Committee Resolution H. Res. 988 Reported to House. Rule provides for consideration of H.R. 2988, H.R. 2262, H.R. 2270, H.R. 2312 and H.R. 4366. The resolution provides for consideration of H.R. 2988 under a structured rule, and H.R. 2262, H.R. 2270, H.R. 2312, and H.R. 4366 under a closed rule. The rule provides for one hour of general debate and one motion to recommit on each bill.

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Analysis generated by AI. While we strive for accuracy, this should not be considered legal or professional advice. Always verify information with official government sources.