Red States Sue to Block Labor Department’s ‘Woke’ ESG Rule

Texas, leading a coalition of 24 states, sued the Biden Administration Thursday to stop a new US Department of Labor rule that allegedly prioritizes “ill-defined” environmental, social, and governance concepts into ERISA regulations.

The rule “prioritizes woke Environmental, Social and Governance investing over protecting the retirement savings of approximately two-thirds of the US population,” Texas Attorney General Ken Paxton (R) said in a press statement announcing the filing at the US District Court for the Northern District of Texas.

The rule authorizes retirement plans to consider nonfinancial factors when administering trust assets, which violates the federal tax and labor law, ...