Lafayette Reporter

WASHINGTON – Sen. John Kennedy (R-La.) and Sen. Tim Scott (R-S.C.) have introduced a resolution of disapproval under the Congressional Review Act (CRA) aimed at the Biden administration’s Security and Exchange Commission’s (SEC) climate disclosure rule. The rule, if not blocked by Congress, would mandate companies to disclose climate-related risks such as greenhouse gas emissions and the financial impact of natural disasters like hurricanes, floods, and tornadoes.

Kennedy criticized the Biden administration's approach, stating, “At every opportunity, the Biden administration abuses its rulemaking power to force a radical climate agenda down Americans’ throats. The Senate should move quickly to correct the SEC’s misguided regulation, which will cost companies billions of dollars to comply with and will force investors to prioritize politics in their decision making.”

In response to the SEC's finalized rule titled "The Enhancement and Standardization of Climate-Related Disclosures for Investors," Scott emphasized the need to overturn it, saying, “The SEC’s final climate disclosure rule threatens economic opportunity across the country, and it must be overturned. Over and over again, SEC Chair Gensler has disregarded the real-world impacts of his aggressive regulatory agenda in his dogged pursuit of left-wing political priorities.”

The resolution has garnered support from a significant number of senators, including Sens. Mike Crapo, Mitch McConnell, Marco Rubio, and Joe Manchin, among others.

The SEC, under Chairman Gary Gensler, has been implementing a robust regulatory agenda, with more than 60 rules in the pipeline for finalization. Kennedy had previously raised concerns about the cost of compliance with the SEC’s climate disclosure rule, to which Gensler admitted would amount to billions of dollars across the economy.

The full text of the resolution can be found here.