In a win for the Biden White House, the House of Representatives failed to override President Joe Biden’s veto of a resolution aimed at repealing a contentious investment rule. This marks the first veto of Biden’s presidency, and a two-thirds majority vote was needed in both houses of Congress to override it.
The retirement investment rule in question allows managers of retirement funds to consider environmental, social, and governance factors, including the impact of climate change, when selecting investments. Republicans have been leading the effort to overturn the rule, arguing that it forces a liberal agenda on Americans and harms retirees’ finances. However, Democrats contend that the rule is not a political mandate and that it will benefit investors.
“I commend the president for his veto,” said Rep. Bobby Scott, D-Va. “Workers should be able to invest their retirement savings in a way that reflects their values, such as combating climate change, without sacrificing investment returns.”
The resolution, which would have invalidated a Department of Labor rule, passed both chambers of Congress, with Democratic Senators Joe Manchin of West Virginia and Jon Tester of Montana joining Republicans in the Senate. Biden vetoed the GOP-backed measure, saying that it would put retirement savings at risk.
Rep. Virginia Foxx, a Republican voiced her frustration with House Democrats, “The left is using ESG investment criteria as a political tool to cudgel companies into accepting leftist policies. If we do not override this veto, the left will use ESG investing to push non-compliant companies out of the marketplace.”
The president’s tweet announcing the veto read, “This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don’t like.”
