House Committee Approves Bill Regulating Proxy Advisers, ESG Disclosures

The “Protecting Americans’ Retirement Savings From Politics Act,” a bill limiting the SEC’s authority to require broad corporate disclosures and requiring the regulator to set up a commission to study proxy advisory firms and the proxy process, cleared a House Committee on Financial Services vote on April 21. The bill, introduced on April 15, was sponsored by Representative Bryan Steil, R-Wisconsin, and co-sponsored by Representative Ann Wagner, R-Missouri, and Representative Daniel Meuser, R-Pennsylvania.

The bill would limit Securities and Exchange Commission disclosure rules to financially material information, aiming to curb required disclosures tied to political, social or environmental priorities unless they affect investment or voting decisions. The legislation would also regulate proxy advisory firms by requiring registration, conflict disclosures, accuracy standards and by prohibiting what the bill calls automated “robovoting,” while imposing new voting and reporting duties on asset managers and pension fiduciaries.

The bill comes on the heels of several other efforts by policymakers in recent months to target proxy advisers.

President Donald Trump signed an executive order in December 2025 aimed at curbing what he described as the “outsized influence” of proxy advisory firms that “prioritize radical political agendas” ahead of financial returns for American investors and retirees. The order directed the SEC to review and potentially rescind regulations related to proxy advisers or their proposals that include diversity, equity and inclusion considerations or environmental, social and governance factors.

Earlier this month, the Department of Labor issued new guidance warning that proxy advisory firms may be subject to federal fiduciary standards under the Employee Retirement Income Security Act. The guidance, in the form of a technical release from the department’s Employee Benefits Security Administration, clarifies that proxy advisers “regularly fit the definition of functional fiduciaries” under ERISA if they exercise control over shareholder votes or provide investment advice for a fee to retirement plans.

The bill now advances for consideration by the full House of Representatives.