ASA Responds to Trump Administration Request Highlighting Harmful State Laws, ESG

WASHINGTON – The American Securities Association (ASA) today sent a letter to the Department of Justice (DOJ) following a request for information from the Trump administration regarding state laws that may negatively affect the national economy or have adverse impacts on interstate commerce. In its letter, ASA highlighted concerning and potentially illegal uses of ESG metrics in the municipal finance market and public company disclosures, as well as state worker classification laws.

"ASA applauds Attorney General Bondi and the Trump administration for kick-starting a comprehensive review of state laws that are negatively affecting working families across this country," said ASA President and CEO Chris Iacovella. "The most egregious and potentially illegal examples are occurring in the municipal finance market where some state and local governments are disqualifying financial institutions from participating in public transactions because of black-box ESG scores issued by politically conflicted rating agencies."

"We implore the Department to look into the legality of this practice and the risks that the continued use of ESG scores in the U.S. financial system poses to investors, taxpayers, and American society," Iacovella wrote in the letter.

To read ASA's full letter to the DOJ, click here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.