Fifth Circuit Acts Quickly in Granting EBSA Request to Dismiss Fiduciary Rule Appeals
Just four days after the Department of Labor’s Employee Benefit Security Administration filed a motion withdrawing its appeal of the Biden administration’s Retirement Security Rule—commonly referred to as the fiduciary rule—the U.S. Court of Appeals for the Fifth Circuit granted the request on Friday.
The move effectively puts a lid on a prolonged legal battle over whether rollover and retirement investment advice should fall under ERISA’s fiduciary standard. The focus of the rule was to extend ERISA fiduciary duties to one-time professional retirement investment recommendations, including rollovers, annuity purchases, or plan menu design.
“Under Fed. R. App. P.42(B), the appeal is dismissed as of November 28, 2025, pursuant to appellant’s motion,” read the simple one-sentence order from the clerk’s office of the Fifth Circuit.
After requesting three separate delays earlier this year, the EBSA on Nov. 24 submitted an unopposed motion to dismiss its appeal in the U.S. Court of Appeals for the Fifth Circuit. The withdrawal pertains specifically to the DOL’s appeal of nationwide stays issued by the U.S. District Courts for the Northern and Eastern Districts of Texas, both of which halted enforcement of the rule in July 2024, shortly before its planned implementation that was supposed to happen in September 2024.
Opponents celebrate rule’s demise
Opponents of the rule—which have argued that the DOL had not meaningfully distinguished the updated rule from the Obama-era version, which the Fifth Circuit struck down in 2018—have predictably welcomed the latest developments.
“The DOL’s fiduciary-only regulation resurrects a failed 2016 rule that prevented millions of consumers from accessing much-needed retirement financial guidance. Allowing the stay of the effective date to remain in place provides retirement savers with continued relief from these harmful consequences as the court considers the substantial legal issues we have raised regarding this ill-advised regulation,” read a joint statement from the American Council of Life Insurers, National Association of Insurance and Financial Advisors, Insured Retirement Institute, Finseca, and the National Association for Fixed Annuities.
Congresswoman Ann Wagner (R-MO), Chair of the Financial Services Subcommittee on Capital Markets and leader in Congress fighting against this Fiduciary Rule, also applauded the DOL’s move to abandon the appeals. “This is great news for Main Street investors and families looking to save for retirement! I have been proud to lead the charge against this completely reckless rulemaking since I first came to Congress. The so-called Fiduciary Rule was overly burdensome and reduced economic choices for consumers,” Wagner said in a Nov. 26 statement.
“This has been a long and arduous fight, but we have finally achieved victory for the American people. Over the years, and as Chair of the Financial Services Subcommittee on Capital Markets, I have made it my mission to rally my colleagues in Congress and stand up to President Obama and President Biden as they decreed that their Labor Departments know better than you,” Wagner added. “This rule was a misguided, big-government attempt to dictate your personal financial choices, and I am glad this comes immediately after I filed an Amicus Brief with the Court asking them to strike down this rule. Make no mistake, this is a victory for American families across the country.”
What’s next
By abandoning its previous defense of the 2024 rule in court, the DOL under the current administration appears poised to put forth a new fiduciary rulemaking effort in 2026. The DOL’s regulatory agenda published in 2025 explicitly lists a “fiduciary rule” among the items it aims to address by May 2026.
The new effort would likely align with the Trump administration’s goals of deregulation, and be expected to differ substantially from the prior attempt, potentially reverting to or modifying the 1975 standard and aiming to bring all the fragmented rules back into one cohesive place. The situation remains fluid, as regulatory agendas are not legally binding, and timelines are often subject to delays.
SEE ALSO:
• DOL Abandons 2024 Fiduciary Rule Appeal
• DOL Seeks Third Extension on Fiduciary Rule Action
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
