In this paper, ATM network congestion control with explicit rate feedback is considered. In ATM networks, delays commonly appear in data transmission and have to be considered in congestion control design. In this paper, a bounded single round delay on the return path is considered. Our objective is to design an explicit rate feedback control that achieves a robust optimal $H_2$ performance regardless of the bounded time-varying delays. An optimization approach in terms of linear matrix inequalities (LMIs) is given. Saturation in source rate and queue buffer is also taken into consideration in the proposed design. Simulations for the cases of single source and multiple sources are presented to demonstrate the effectiveness of the design.