House committee cuts funding for DOL’s fiduciary rule

The Department of Labor would be unable to spend any money to update its fiduciary rule under a House Appropriations Committee budget approved Wednesday.

The legislation, which would also defund Obamacare, President Barack Obama’s Patient Protection and Affordable Care Act, is aimed at reducing “harmful red tape,” a committee summary said. The vote was 30-21, with all Democrats opposing it.

(Related read: House panel seeks to freeze SEC budget)

The Senate Appropriations Committee is scheduled to vote Thursday on a similar measure, which was approved by a subcommittee Tuesday.

The House spending package gives the Labor Department $11.7 billion for fiscal year 2016, which is $1.4 billion less than requested. It gives the Pension Benefit Guaranty Corp. an additional $9.2 million to handle more terminated defined benefit plans, and permission to seek additional funds for “extraordinary multiemployer program related expenses.”

Hazel Bradford is a reporter at sister publication Pensions & Investments.