ESG Prohibition Lifted On Your 401(k) by Department Of Labor Ruling


credit: USACE on Flickr

The Labor Department has rolled back a rule brought in under President Trump to make it easier for employers to include impact investment funds in their retirement plans.

The Trump-era rule, which was set to go into effect in January, required employers to adhere to a "fiduciary duty" when choosing investments for 401(k)s and other retirement plans.

Under the Biden administration rule, which was also set to go into effect in January, employers are no longer required to consider ESG (environmental, social, and governance) factors when choosing investments, MarketWatch reports.

ESG funds invest in companies that make social or political decisions that have a positive impact on the world's economy.

The Trump-era rule was seen as an attempt to chill ESG investing, and it appears to have worked, with anecdotal reports suggesting that employers avoided ESG funds in their 401(k)s and related plans to avoid drawing investigations from the Trump Department of Labor.

ESG funds actually tended to outperform the market at large in 2020, and professional investors noted in public comments that in 2020, approximately 96% of all public comments opposed this change to the fiduciary duty requirement, potentially harming an employer's ability to recruit younger talent, but which also may have been the better investment at the time."

Read the Entire Article


Selected Grant News Headlines

A customized collection of grant news from foundations and the federal government from around the Web.

California Students Have Fallen Behind, These Two Solutions Can Help

California must consider how to increase interest in teaching and lower the cost of and barriers to entering the profession.AB-1128, a bill under consideration in the legislature, proposes a...more

Mondelä“Z Invests in Compostable Packaging, Regenerative Agriculture

Mondelēz's Sustainable Futures Impact Investment platform said the capital "further advance[s] scalable, high-impact solutions at the nexus of climate, community, and circularity" The companies...more

Regenize Secures Investment to Scale Recycling Hubs in South Africa

South African recycling startup Regenize has secured an undisclosed investment from E Squared Investments.The deal combines philanthropic goals with venture capital methods to support scalable,...more

Clean Energy Startup Wins £50000 Climate Impact Prize For Innovation At Techx Demo Day

Cambridge-based Remedium was named winner of the Climate Impact Prize at the Net Zero Technology Centre's annual TechX Demo Day in Aberdeen.The prize is given to the startup with the most promising...more

Why Reset Connect Matters For Sustainable Businesses and Investors

Sustainable Times is a media partner for this event, which takes place on June 24-25, 2025, at ExCeL London, as part of London Climate Action Week.RESET Connect provides a network of potential...more

4 Health Systems Join Rad Ai Investment Round

Rad AI announces an additional $8 million investment led by four health systems.Advocate Health, Memorial Hermann Health System, Corewell Health, and Atlantic Health System lead the investment.Rad AI...more

Cellcentric Raises £90M to Prevent Cancer Deaths

MedTech CellCentric has raised 90m in fresh funding.The money will support the advancement of the Cambridge company's oral treatment for multiple myeloma, inobrodib.The financing was co-led by RA...more

Impact Funds Offer A Lower-Risk Proposition For Private Markets

Impact investing can be a valuable financial tool for private-market investors seeking to manage risk.Impact funds direct capital to companies that generate impact environmental and social...more

Impact Investing Principles For Pensions Updated to Reflect Changing Market Enviroment

Impact Investing Principles for Pensions updated to reflect changing market environment.Pensions Age Magazine is published by Pensions & Investment Association.For more information, visit...more

Transforming Healthcare Operations With Ai-Driven Innovations €” 3 Key Takeaways

Measuring AI's impact requires clear metrics.To evaluate AI's return on investment (ROI), healthcare organizations focus on four key metrics in the contact center.Narrowing AI implementation to...more


In the world of social enterprises, failure is a cringe-worthy moment nobody wants to talk about. But, social entrepreneurs can benefit from their failures.



Federal Government Grant and Assistance Programs


Fish and Wildlife Coordination Act | Gang-Free Schools and Communities_Community-Based Gang Intervention | Centers for Disease Control and PreventionAffordable Care Act (ACA) Communities Putting Prevention t | ASPR Science Preparedness and Reponse Grants | NEA Syria Program | National Center for Advancing Translational Sciences | Geodetic Surveys and Services (Geodesy and Applications of the National Geodetic Reference System) | Environmental Quality and Protection Resource Management | | Site Style by YAML | Grants.gov | Grants | Grants News | Sitemap | Privacy Policy

Edited by: Michael Saunders

© 2008-2025 Copyright Michael Saunders