H.R. 5339House118th Congress (2023-2025)Passed House

Protecting Americans’ Investments from Woke Policies Act

Introduced September 5, 2023

AI-Generated Summary

Updated January 20, 2026 at 11:09 AM UTC

The Protecting Americans’ Investments from Woke Policies Act amends the Employee Retirement Income Security Act to tighten fiduciary investment rules. It requires plan fiduciaries to base decisions on financial (pecuniary) factors, bans discrimination in selecting service providers, sets standards for how retirement plans exercise shareholder voting rights, and mandates clearer disclosures for participants using brokerage windows. The changes affect retirement‑plan fiduciaries, service providers, and plan participants.

Key Provisions

  • Limits fiduciaries to consider only pecuniary (financial) factors when choosing investments, unless they document why non‑pecuniary factors are necessary; allows limited use of non‑pecuniary factors for participant‑directed accounts.
  • Adds a non‑discrimination requirement for selecting, monitoring, and retaining fiduciaries, counsel, employees, or service providers, prohibiting decisions based on race, color, religion, sex, or national origin.
  • Creates a new fiduciary duty for exercising shareholder rights (proxy voting) that must be solely in the economic interest of participants, requires record‑keeping, allows safe‑harbor voting policies, and mandates monitoring of delegated advisors.
  • Requires retirement plans to give participants detailed notices before using brokerage windows, explaining risks, fees, and projected returns, and defines “designated investment alternatives” while excluding brokerage windows from that definition.

Legislative Activity

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21 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

September 19, 2024

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HouseIntro Referral

Introduced in House

September 5, 2023

HouseIntro Referral

Referred to the House Committee on Education and the Workforce.

September 5, 2023

HouseCommittee

Committee Consideration and Mark-up Session Held

September 14, 2023

HouseCommittee

Ordered to be Reported (Amended) by the Yeas and Nays: 23 - 19.

September 14, 2023

HouseCommittee

Reported (Amended) by the Committee on Education and the Workforce. H. Rept. 118-225.

September 26, 2023

HouseCalendars

Placed on the Union Calendar, Calendar No. 184.

September 26, 2023

HouseFloor

Rules Committee Resolution H. Res. 1455 Reported to House. Rule provides for consideration of H.R. 3724, H.R. 4790, H.R. 5179, H.R. 5339, H.R. 5717, H.R. 7909 and H.J. Res. 136. The resolution provides for consideration of H.R. 3724 and H.R. 5717 under a structured rule and H.R. 4790, H.R. 5179, H.R. 5339, H.R. 7909, and H.J. Res. 136 under a closed rule. The resolution provides for one hour of general debate and one motion to recommit on each measure.

September 17, 2024 • 9:40 PM

HouseFloor

Considered under the provisions of rule H. Res. 1455. (consideration: CR H5343-5350)

September 18, 2024 • 2:24 PM

HouseFloor

Rule provides for consideration of H.R. 3724, H.R. 4790, H.R. 5179, H.R. 5339, H.R. 5717, H.R. 7909 and H.J. Res. 136. The resolution provides for consideration of H.R. 3724 and H.R. 5717 under a structured rule and H.R. 4790, H.R. 5179, H.R. 5339, H.R. 7909, and H.J. Res. 136 under a closed rule. The resolution provides for one hour of general debate and one motion to recommit on each measure.

September 18, 2024 • 2:24 PM

HouseFloor

DEBATE - The House proceeded with one hour of debate on H.R. 5339.

September 18, 2024 • 2:25 PM

HouseFloor

WORDS TAKEN DOWN - During the course of debate, exception was taken to certain words used and a demand was made to have the words taken down. Subsequently, the objection was withdrawn.

September 18, 2024 • 3:15 PM

HouseFloor

DEBATE - The House resumed debate on H.R. 5339.

September 18, 2024 • 3:16 PM

HouseFloor

The previous question was ordered pursuant to the rule.

September 18, 2024 • 3:19 PM

HouseFloor

Mr. Kildee moved to recommit to the Committee on Education and the Workforce. (text: CR H5349-5350)

September 18, 2024 • 3:19 PM

HouseFloor

The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.

September 18, 2024 • 3:20 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 5339, the Chair put the question on the motion to recommit and by voice vote announced that the noes had prevailed. Mr. Kildee demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.

September 18, 2024 • 3:20 PM

HouseFloor

Considered as unfinished business. (consideration: CR H5370-5372)

September 18, 2024 • 5:48 PM

HouseFloor

On motion to recommit Failed by the Yeas and Nays: 206 - 213 (Roll no. 426).

September 18, 2024 • 6:14 PM

HouseFloor

Passed/agreed to in House: On passage Passed by the Yeas and Nays: 217 - 206 (Roll no. 427). (text of amendment in the nature of a substitute: CR H5343-5345)

September 18, 2024 • 6:21 PM

HouseFloor

On passage Passed by the Yeas and Nays: 217 - 206 (Roll no. 427). (text of amendment in the nature of a substitute: CR H5343-5345)

September 18, 2024 • 6:21 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

September 18, 2024 • 6:21 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

September 19, 2024

Floor Debate

23 members

What members said about H.R. 5339 on the floor

13 Republicans10 Democrats
Robert C. "Bobby" Scott
Rep. Robert C. "Bobby" ScottD-VA-3 · Sep 19, 2024

Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, I rise to oppose H.R. 3724, what my Republican colleagues call the End Woke Higher Education Act. H.R. 3724 seeks to circumvent…

James P. McGovern
Rep. James P. McGovernD-MA-2 · Sep 18, 2024

Mr. Speaker, I thank the gentlewoman from Indiana for yielding me the time, and I yield myself such time as I may consume. Mr. Speaker, it is good to be back on the House floor with the gentlewoman…

Erin Houchin
Rep. Erin HouchinR-IN-9 · Sep 18, 2024

Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Massachusetts (Mr. McGovern), pending which I yield myself such time as I may consume. During…

Rosa L. DeLauro
Rep. Rosa L. DeLauroD-CT-3 · Sep 18, 2024

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I oppose this continuing resolution, which would shortchange our veterans, absolve the House Republican majority of their…

Tom Cole
Rep. Tom ColeR-OK-4 · Sep 18, 2024

Mr. Speaker, pursuant to House Resolution 1430, I call up the bill (H.R. 9494) making continuing appropriations for fiscal year 2025, and for other purposes, and ask for its immediate consideration…

Show 8 more
Virginia Foxx
Rep. Virginia FoxxR-NC-5 · Sep 18, 2024

Mr. Speaker, pursuant to House Resolution 1455, I call up the bill (H.R. 5339) to amend the Employee Retirement Income Security Act of 1974 to specify requirements concerning the consideration of…

Bill Huizenga
Rep. Bill HuizengaR-MI-4 · Sep 19, 2024

Mr. Speaker, pursuant to House Resolution 1455, I call up the bill (H.R. 4790) to amend the Federal securities laws with respect to the materiality of disclosure requirements, to establish the Public…

Maxine Waters
Rep. Maxine WatersD-CA-43 · Sep 19, 2024

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, we are on the brink of yet another government shutdown brought to you by MAGA Republicans. I have lost track of how many times…

Virginia Foxx
Rep. Virginia FoxxR-NC-5 · Sep 19, 2024

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and include extraneous material on H.R. 3724. Mr. Speaker, I yield myself…

Hakeem S. Jeffries
Rep. Hakeem S. JeffriesD-NY-8 · Sep 18, 2024

Mr. Speaker, I thank the distinguished once and future chair of the House Committee on Appropriations (Ms. DeLauro) for her leadership and for yielding to me. Mr. Speaker, I rise today in strong…

Andrew Ogles
Rep. Andrew OglesR-TN-5 · Sep 19, 2024

Mr. Chair, I have an amendment at the desk. Mr. Chair, my amendment adds a sense of Congress that acts of violence committed on the campus of an institution of higher education are not protected…

Barry Loudermilk
Rep. Barry LoudermilkR-GA-11 · Sep 19, 2024

Mr. Speaker, I rise in strong support of H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act. Not only is this bill important to restoring sound financial practices within the…

Marcus J. Molinaro
Rep. Marcus J. MolinaroR-NY-19 · Sep 19, 2024

Mr. Chair, I have an amendment at the desk. Mr. Chairman, for our entire history as a nation, our colleges and universities have been the example for other countries. Why? Because historically this…

Show 11 more
Kevin Kiley
Rep. Kevin KileyR-CA-3 · Sep 19, 2024

Mr. Chair, one of the most important things that has happened in this Congress is the exposure of the alarming state of affairs at American universities. Our institutions of higher learning have been…

Suzanne Bonamici
Rep. Suzanne BonamiciD-OR-1 · Sep 19, 2024

Mr. Chair, I rise today in opposition to the so-called End Woke Higher Education Act. There is a lot we could be doing in Congress to improve higher education, and this is not it. This bill combines…

Chip Roy
Rep. Chip RoyR-TX-21 · Sep 18, 2024

Mr. Speaker, I rise in support of the legislation before us here today, and I thank the gentleman for his work on this legislation. Mr. Speaker, the fact is, what we just heard from the minority…

Clay Higgins
Rep. Clay HigginsR-LA-3 · Sep 18, 2024

Mr. Speaker, I don't know where to begin. I have 5 minutes. I could use 500. The American people are watching. They recognize that our Nation suffers under the burden of a threatened government…

Mark Takano
Rep. Mark TakanoD-CA-39 · Sep 18, 2024

Mr. Speaker, I thank the gentlewoman from Connecticut (Ms. DeLauro) for yielding. Mr. Speaker, I rise in opposition to H.R. 9494, a fundamentally flawed attempt by the Republican leadership to save…

Bob Good
Rep. Bob GoodR-VA-5 · Sep 18, 2024

Mr. Speaker, as the chair said, if ESG funds performed better, investors would choose those based on their performance, not because they are ESG compliant. Mr. Speaker, I support passage of 5339.…

Bryan Steil
Rep. Bryan SteilR-WI-1 · Sep 19, 2024

Mr. Speaker, I rise in support of this bill, which will protect retirement savings from political interference by activists and their proxy adviser allies. Mr. Speaker, I thank the chairman for…

Marcy Kaptur
Rep. Marcy KapturD-OH-9 · Sep 18, 2024

Mr. Speaker, I want to thank Ranking Member DeLauro for yielding me time to rise in opposition to shutting down our government. Mr. Speaker, I rise to oppose this resolution. Frankly, in less than 2…

Juan Vargas
Rep. Juan VargasD-CA-52 · Sep 19, 2024

Mr. Speaker, I thank the ranking member for yielding. Mr. Speaker, I rise in opposition to this bill. As co-chairman of the Congressional Sustainable Investment Caucus, I am glad to join Ranking…

Rick W. Allen
Rep. Rick W. AllenR-GA-12 · Sep 18, 2024

Mr. Speaker, I thank the gentlewoman from North Carolina for yielding the time. I rise in support of my bill, H.R. 5339, the Protecting Americans' Investments from Woke Policies Act. The Committee on…

Sean Casten
Rep. Sean CastenD-IL-6 · Sep 18, 2024

Madam Speaker, let me pose a question to everybody in here. Why do pension fund managers, why do State treasurers, why do individual investors invest in ESG funds? Well, I will give you a hint. It is…

Bill Text

4 versions available

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Referred in SenateIssued September 19, 2024

IIB

118th CONGRESS

2d Session

H. R. 5339

IN THE SENATE OF THE UNITED STATES

September 19, 2024

Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs

AN ACT

To amend the Employee Retirement Income Security Act of 1974 to specify requirements concerning the consideration of pecuniary and non-pecuniary factors, and for other purposes.


1.

Short title; table of contents

(a)

Short title

This Act may be cited as the Protecting Americans’ Investments from Woke Policies Act.

(b)

Table of contents

The table of contents for this Act is as follows:

Sec. 1. Short title; table of contents.

Division A—Roll back ESG To Increase Retirement Earnings

Sec. 1001. Short title.

Sec. 1002. Limitation on consideration of non-pecuniary factors by fiduciaries.

Division B—No Discrimination in My Benefits

Sec. 2001. Short title.

Sec. 2002. Service provider selection.

Division C—Retirement Proxy Protection

Sec. 3001. Short title.

Sec. 3002. Exercise of shareholder rights.

Division D—Providing Complete Information to Retirement Investors

Sec. 4001. Short title.

Sec. 4002. Brokerage window disclosures.

A

Roll back ESG To Increase Retirement Earnings

1001.

Short title

This division may be cited as the Roll back ESG To Increase Retirement Earnings Act or the RETIRE Act.

1002.

Limitation on consideration of non-pecuniary factors by fiduciaries

(a)

In general

Section 404(a) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)) is amended by adding at the end the following:

(3)

Interest based on pecuniary factors

(A)

In general

For purposes of paragraph (1), a fiduciary shall be considered to act solely in the interest of the participants and beneficiaries of the plan with respect to an investment or investment course of action only if the fiduciary’s action with respect to such investment or investment course of action is based only on pecuniary factors (except as provided in subparagraph (B)). The fiduciary may not subordinate the interests of the participants and beneficiaries in their retirement income or financial benefits under the plan to other objectives and may not sacrifice investment return or take on additional investment risk to promote non-pecuniary benefits or goals. The weight given to any pecuniary factor by a fiduciary shall reflect a prudent assessment of the impact of such factor on risk and return.

(B)

Use of non-pecuniary factors for investment alternatives

Notwithstanding paragraph (A), if a fiduciary is unable to distinguish between or among investment alternatives or investment courses of action on the basis of pecuniary factors alone, the fiduciary may use non-pecuniary factors as the deciding factor if the fiduciary documents—

(i)

why pecuniary factors were not sufficient to select a plan investment or investment course of action;

(ii)

how the selected investment compares to the alternative investments with regard to the composition of the portfolio with regard to diversification, the liquidity and current return of the portfolio relative to the anticipated cash flow requirements of the plan, and the projected return of the portfolio relative to the funding objectives of the plan; and

(iii)

how the selected non-pecuniary factor or factors are consistent with the interests of the participants and beneficiaries in their retirement income or financial benefits under the plan.

(C)

Investment alternatives for participant-directed individual account plans

In selecting or retaining investment options for a pension plan described in subsection (c)(1)(A), a fiduciary is not prohibited from considering, selecting, or retaining an investment option on the basis that such investment option promotes, seeks, or supports one or more non-pecuniary benefits or goals, if—

(i)

the fiduciary satisfies the requirements of paragraph (1) and subparagraphs (A) and (B) of this paragraph in selecting or retaining any such investment option; and

(ii)

such investment option is not added or retained as, or included as a component of, a default investment under subsection (c)(5) (or any other default investment alternative) if its investment objectives or goals or its principal investment strategies include, consider, or indicate the use of one or more non-pecuniary factors.

(D)

Definitions

For the purposes of this paragraph:

(i)

The term pecuniary factor means a factor that a fiduciary prudently determines is expected to have a material effect on the risk or return of an investment based on appropriate investment horizons consistent with the plan’s investment objectives and the funding policy established pursuant to section 402(b)(1).

(ii)

The term investment course of action means any series or program of investments or actions related to a fiduciary's performance of the fiduciary's investment duties, and includes the selection of an investment fund as a plan investment, or in the case of an individual account plan, a designated investment alternative under the plan.

.

(b)

Effective date

The amendments made by this section shall apply to actions taken by a fiduciary on or after the date that is 12 months after the date of enactment of this Act.

B

No Discrimination in My Benefits

2001.

Short title

This division may be cited as the No Discrimination in My Benefits Act.

2002.

Service provider selection

Section 404(a)(1) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(a)(1)) is amended—

(1)

in subparagraph (C), by striking and;

(2)

in subparagraph (D), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following new subparagraph:

(E)

by selecting, monitoring, and retaining any fiduciary, counsel, employee, or service provider of the plan—

(i)

in accordance with subparagraphs (A) and (B); and

(ii)

without regard to race, color, religion, sex, or national origin.

.

C

Retirement Proxy Protection

3001.

Short title

This division may be cited as the Retirement Proxy Protection Act.

3002.

Exercise of shareholder rights

(a)

In general

Section 404 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104) is amended by adding at the end the following new subsection:

(f)

Exercise of shareholder rights

(1)

Authority to exercise shareholder rights

(A)

In general

The fiduciary duty to manage plan assets that are shares of stock includes the management of shareholder rights appurtenant to those shares, including the right to vote proxies. When deciding whether to exercise a shareholder right and in exercising such right, including the voting of proxies, a fiduciary must act prudently and solely in the interests of participants and beneficiaries and for the exclusive purpose of providing benefits to participants and beneficiaries and defraying the reasonable expenses of administering the plan. The fiduciary duty to manage shareholder rights appurtenant to shares of stock does not require the voting of every proxy or the exercise of every shareholder right.

(B)

Exception

This subsection shall not apply to voting, tender, and similar rights with respect to securities that are passed through pursuant to the terms of an individual account plan to participants and beneficiaries with accounts holding such securities.

(2)

Requirements for exercise of shareholder rights

A fiduciary, when deciding whether to exercise a shareholder right and when exercising a shareholder right—

(A)

shall—

(i)

act solely in accordance with the economic interest of the plan and its participants and beneficiaries;

(ii)

consider any costs involved;

(iii)

evaluate material facts that form the basis for any particular proxy vote or exercise of shareholder rights; and

(iv)

maintain a record of any proxy vote, proxy voting activity, or other exercise of a shareholder right, including any attempt to influence management; and

(B)

shall not subordinate the interests of participants and beneficiaries in their retirement income or financial benefits under the plan to any non-pecuniary objective, or promote non-pecuniary benefits or goals unrelated to those financial interests of the plan’s participants and beneficiaries.

(3)

Monitoring

A fiduciary shall exercise prudence and diligence in the selection and monitoring of a person, if any, selected to advise or otherwise assist with the exercise of shareholder rights, including by providing research and analysis, recommendations on exercise of proxy voting or other shareholder rights, administrative services with respect to voting proxies, and recordkeeping and reporting services.

(4)

Investment managers and proxy advisory firms

Where the authority to vote proxies or exercise other shareholder rights has been delegated to an investment manager pursuant to section 403(a), or a proxy voting advisory firm or other person who performs advisory services as to the voting of proxies or the exercise of other shareholder rights, a responsible plan fiduciary shall prudently monitor the proxy voting activities of such investment manager or advisory firm and determine whether such activities are in compliance with paragraphs (1) and (2).

(5)

Voting policies

(A)

In general

In deciding whether to vote a proxy pursuant to this subsection, the plan fiduciary may adopt a proxy voting policy, including a safe harbor proxy voting policy described in subparagraph (B), providing that the authority to vote a proxy shall be exercised pursuant to specific parameters designed to serve the economic interest of the plan.

(B)

Safe harbor voting policy

With respect to a decision not to vote a proxy, a fiduciary shall satisfy the fiduciary responsibilities under this subsection if such fiduciary adopts and is following a safe harbor proxy voting policy that—

(i)

limits voting resources to particular types of proposals that the fiduciary has prudently determined are substantially related to the business activities of the issuer or are expected to have a material effect on the value of the plan investment; or

(ii)

establishes that the fiduciary will refrain from voting on proposals or particular types of proposals when the assets of a plan invested in the issuer relative to the total assets of such plan are below 5 percent (or, in the event such assets are under management, when the assets under management invested in the issuer are below 5 percent of the total assets under management).

(C)

Exception

No proxy voting policy adopted pursuant to this paragraph shall preclude a fiduciary from submitting a proxy vote when the fiduciary determines that the matter being voted on is expected to have a material economic effect on the investment performance of a plan’s portfolio (or the investment performance of assets under management in the case of an investment manager); provided, however, that in all cases compliance with a safe harbor voting policy shall be presumed to satisfy fiduciary responsibilities with respect to decisions not to vote.

(6)

Review

A fiduciary shall periodically review any policy adopted under this subsection.

.

(b)

Effective date

The amendments made by subsection (a) shall apply to an exercise of shareholder rights occurring on or after January 1, 2024.

D

Providing Complete Information to Retirement Investors

4001.

Short title

This division may be cited as the Providing Complete Information to Retirement Investors Act.

4002.

Brokerage window disclosures

(a)

In general

Section 404(c) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1104(c)) is amended by adding at the end the following new paragraph:

(7)

Notice requirements for brokerage windows

(A)

In general

In the case of a pension plan which provides for individual accounts and which provides a participant or beneficiary the opportunity to choose from designated investment alternatives, a participant or beneficiary shall not be treated as exercising control over assets in the account of the participant or beneficiary unless, with respect to any investment arrangement that is not a designated investment alternative, each time before such a participant or beneficiary directs an investment into, out of, or within such investment arrangement, such participant is notified of, and acknowledges, each element of the notice described under paragraph (B).

(B)

Notice

The notice described under this paragraph is a four part information that is substantially similar to the following information:

1. Your retirement plan offers designated investment alternatives prudently selected and monitored by fiduciaries for the purpose of enabling you to construct an appropriate retirement savings portfolio. In selecting and monitoring designated investment alternatives, your plan’s fiduciary considers the risk of loss and the opportunity for gain (or other return) compared with reasonably available investment alternatives.
2. The investments available through this investment arrangement are not designated investment alternatives, and have not been prudently selected and are not monitored by a plan fiduciary.
3. Depending on the investments you select through this investment arrangement, you may experience diminished returns, higher fees, and higher risk than if you select from the plan’s designated investment alternatives.
4. The following is a hypothetical illustration of the impact of return at 4 percent, 6 percent, and 8 percent on your account balance projected to age 67.
(C)

Illustration

The notice described under paragraph (B) shall also include a graph displaying the projected retirement balances of such participant or beneficiary at age 67 if the account of such individual were to achieve an annual return equal to each of the following:

(i)

4 percent.

(ii)

6 percent.

(iii)

8 percent.

.

(b)

Designated investment alternative defined

Section 3 of such Act (29 U.S.C. 1002) is amended by adding at the end the following new paragraph:

(46)

Designated investment alternative

(A)

In general

The term designated investment alternative means any investment alternative designated by a responsible fiduciary of an individual account plan described in subsection 404(c) into which participants and beneficiaries may direct the investment of assets held in, or contributed to, their individual accounts.

(B)

Exception

The term designated investment alternative does not include brokerage windows, self-directed brokerage accounts, or similar plan arrangements that enable participants and beneficiaries to select investments beyond those designated by a responsible plan fiduciary.

.

(c)

Effective date

The amendment made by subsection (a) shall take effect on January 1, 2025.

Passed the House of Representatives September 18, 2024.

Kevin F. McCumber,

Clerk.