Stop Woke Investing Act

The Stop Woke Investing Act would direct the Securities and Exchange Commission to change its regulations governing shareholder proposals that appear in proxy statements—the documents companies send to shareholders before annual meetings. Currently, companies must include certain shareholder proposals on these statements, including those addressing significant social policy issues. If enacted, this bill would require that shareholder proposals demonstrate a material effect on the company's financial performance to be included, and would establish limits on how many proposals must be included depending on company size and type.

Additionally, the bill would prohibit board members from submitting shareholder proposals. If passed, these changes could affect how shareholders engage with companies on environmental, social, and governance issues, as fewer proposals addressing these topics might appear on proxy statements. The bill is currently in the early stages of the legislative process, having been introduced in the House in January 2025, and has not yet been voted on by the full chamber.