The House of Representatives voted Thursday to disapprove the new fiduciary rule released by the Department of Labor.
The vote on the joint resolution was 234-183, along party lines. It now goes to the Senate.
Under the Congressional Review Act, Congress can pass a resolution of disapproval that legally prevents a federal agency from implementing a rule, or issuing a substantially similar rule without congressional authorization. Successful use of the Congressional Review Act is rare because presidents can veto them, and the White House said that President Barack Obama will veto the resolution. Rep. Maxine Waters, D-Calif., ranking member of the Committee on Financial Services, said on the floor during debate that “Democrats will stand strong to ensure that” Republicans cannot override a presidential veto.
Republicans and some Democrats argued that other House proposals would keep retirement savings advice more affordable and criticized Labor Department officials for not considering them. House Education and the Workforce Committee Chairman John Kline, R-Minn., called it “fatally flawed.” House Ways and Means Committee Ranking Member Sander Levin, D-Mich., defended the rule released April 6, which he said during debate on the House floor “has had a long, dedicated and deliberative journey.”