On July 10, the House Education and Workforce Committee approved a Congressional Review Act (CRA) resolution to block the Department of Labor’s (DOL’s) new fiduciary-only rule. The CRA resolution, H.J.Res.142, would “disapprove the rule submitted by the Department of Labor relating to “Retirement Security by Rule: Definition of an Investment Advice Fiduciary (89 Fed. Reg. 32122 (April 25, 2024)), and such rule shall have no force or effect.”

The committee approved the CRA resolution on a 23-18 mostly party-line vote (minus one Republican). It now goes to the full House of Representatives, where it is expected to pass, also on a mostly if not exclusively party-line vote.

Prospects: While the CRA resolution to block the new fiduciary rule is likely to pass the House and may well also pass the Senate at some point later this month, it is virtually certain to be vetoed by President Biden if and when it reaches his desk. There are not the votes in either the House or Senate to override the veto. So, while this CRA resolution may be a signal of Congressional action next year to revisit the fiduciary issue, it is right now more of a political message than a legislative attempt that has any possibility of succeeding.

In the meantime, lawsuits challenging the rule—including one in which NAIFA and five of its chapters are participating—are pending in district courts in Texas. We are awaiting decisions in these cases, including a motion to suspend the operation of the rule while the courts are considering the merits of the cases.

NAIFA Staff Contacts: Diane Boyle – Senior Vice President – Government Relations, at dboyle@naifa.org; or Jayne Fitzgerald – Director – Government Relations, at jfitzgerald@naifa.org; or Michael Hedge – Senior Director – Government Relations, at mhedge@naifa.org.