House to Vote on Bill Killing DOL's New Fiduciary Rule

By Melanie Waddell

News November 14, 2023 at 10:11 AM

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The House is expected to vote Tuesday on a spending bill to fund several federal agencies that contains amendments blocking the Labor Department from using any funds to implement its new fiduciary rule.

The bill — H.R. 5894, the Labor, Health and Human Services, Education, and Related Agencies Appropriations Act, sponsored by Rep. Robert Aderholt, R-Ala. — includes three amendments on Labor's fiduciary rule.

An amendment by Rep. Rick Allen, R-Ga., restricts any funds made available by the bill from being used to finalize, implement or enforce Labor's proposed rule, entitled "Retirement Security Rule: Definition of an Investment Advice Fiduciary" or any substantially similar rule.

Rep. Ann Wagner, R-Mo., inserted an amendment to prohibit Labor from using funds to finalize, implement or enforce proposed amendments to class prohibited transaction exemptions (PTEs) available to investment advice fiduciaries.

And Rep. Ralph Norman, R-S.C., inserted an amendment to prohibit funding to carry out the actions described in the fact sheet released by the White House to roll out the fiduciary proposals, in which it pitched the plan as a crackdown on "junk fees" in retirement investment advice.

Labor released its proposed new fiduciary rule on Oct. 31.

Trade groups pressed the DOL on Nov. 8 to extend the 60-day comment period on its new fiduciary rule, the Retirement Security Rule, and amendments to the PTEs, as the plan "makes significant and unanticipated changes to the current regulatory framework."