Michigan Republican urges Chavez-DeRemer to rescind fiduciary rule

Image of the US Capitol Building with the words "End of the FIduciary Rule?" overlapping.

By Wire Reports

In a letter Wednesday to newly confirmed Department of Labor Secretary, Lori Chavez-DeRemer, Education and Workforce Committee Chairman Tim Walberg (R-MI) urged Chavez-DeRemer to rescind the fiduciary rule.

Walberg sent the letter to Chavez-DeRemer outlining the priorities of the committee, urging the labor secretary to rescind several former President Biden-era labor regulations, including the so-called fiduciary rule:

"The Committee recognizes that many burdensome regulations were developed at DOL during the Biden-Harris administration. I encourage you to rescind or withdraw the following regulations: Employee Benefits Security Administration (EBSA) final rules:

Fiduciary rule—RIN 1210-AC02."

In the letter, Walberg states: “Among many issues of interest to the Committee, I look forward to working with the Trump administration to improve training opportunities for workers, to expand access to health care, and to develop more robust compliance assistance. As you know, the House in the 118th Congress strongly supported reforming the Workforce Innovation and Opportunity Act through passage of H.R. 6655, A Stronger Workforce for America Act, by a vote of 378-26 in April 2024. I am hopeful that the new Congress will consider similar legislation. The Committee also strongly supports the creation of association health plans (AHPs) through enactment of the Association Health Plans Act and DOL’s rulemaking on AHPs.”

The letter continues: “During the 118th Congress, the Committee sent 90 oversight inquiries to DOL and the Pension Benefit Guaranty Corporation (PBGC), on which you now serve as PBGC board chair. As you begin your important work as Secretary of Labor, I encourage you to consider these specific issues of concern ..."

The letter concludes: “With the inauguration of President Donald J. Trump and your confirmation as Secretary of Labor, we have an opportunity to improve the lives of workers, job seekers, and retirees. In your new role, I encourage you to consider the issues raised in this letter and to remain in proactive contact with the Committee as other agenda items arise. I look forward to working with you and DOL during the 119th Congress.”

State of the fiduciary rule

The current state of the fiduciary rule – officially known as the Retirement Security Rule in its present version – is remarkably similar to when Trump first took office in 2016. That is, tied up in court.

Then, the Obama administration fiduciary rule was headed to the Court of Appeals for the Fifth Circuit, which vacated the rule in 2018. Two rules and eight years later and it’s the RSR currently in federal court.

The two cases against the RSR are: The Federation of Americans for Consumer Choice filed its lawsuit May 2 in the Eastern District, which was heard by Judge Jeremy Kernodle. The group of trade associations followed with its lawsuit in the Northern District.

Both cases have been stayed.