Congress’s Final Days: CR, Anti-ESG, and Preventative Care

Speaker Mike Johnson’s six-month government funding plan, which would leave federal agencies with mostly static budgets through March 28, failed on the U.S. House floor Wednesday. 

Why it matters: By September 30, Congress must pass a FY2025 funding bill or pass a continuing resolution (CR) temporarily funding the government to avoid a shutdown.

• Both Democrats and Republicans envision a 3-month CR setting up a funding battle after the elections with hopes their party will have  stronger negotiating power in November.

Until there is a path forward for funding, the House has turned to consideration of “Anti-Woke” messaging legislation including a bill addressing ESG use by investors:

The Prioritizing Economic Growth Over Woke Policies Act (H.R. 4790) is a package of four bills aimed at curbing the use of environmental, social, and governance (ESG) factors in shareholder decisions. The bill requires the SEC to report:

• Required disclosures of nonmaterial information under current law and regulations, and a justification for the disclosure on its website.

• The effects of the European Union's directives on corporate sustainability, particularly on U.S. companies, consumers, and investors.

The Protecting Americans’ Investments from Woke Policies (RETIRE) Act (H.R. 5339) targets ESG investing in retirement plans by amending ERISA to specify that plans make investment decisions based on factors expected to have a material effect on the risk or return of an investment.

Of note, earlier in the week the House  passed The Chronic Disease Flexible Coverage Act (H.R. 3800) which would codify the IRS Covid-era safe harbor provision that allows employers to offer preventative care benefits without any deductible to employees enrolled in high deductible plans. The bill now advances to the Senate where there is already a companion bill, S. 3224.