Resolution Disapproving DOL Fiduciary Rule Announced

Senators Ted Budd (R-NC), Bill Cassidy (R-NC), Roger Marshall (R-KS), and Joe Manchin (D-WV) have announced they are introducing a resolution of congressional disapproval of the Department of Labor’s “Retirement Security Rule.” A companion resolution will also be introduced in the House of Representatives by Rep. Rick Allen (G-VA). If the resolution passes both chambers of Congress, it would also have to be signed by the President to invalidate the rule.

The Congressional Review Act (CRA) (5 U.S.C §§801-808) as explained by the Congressional Research Service, permits Congress to review and repeal rules issued by federal agencies by passage of a joint resolution by a simple majority of both the House and Senate and signature of the President. Successful passage of a resolution would invalidate a rule, and if already effective, would treat such rule as if it had never taken effect. A subsequent rule could not be reissued in substantially the same form. Only 20 rules have been overturned by the CRA since it became available in 1996.