During the announcement of his first veto, Biden said he could not let the bill take effect. The bill would cancel a Labor Department rule that allows retirement plan managers to weigh environmental and social issues when making investments.
“This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don’t like,” Biden said after he vetoed the bill. “Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene [R-GA] likes it or not.”
The Labor Department rule is part of a push to promote environmental, social, and governance, or ESG, priorities. It allows but does not require fiduciaries to weigh ESG factors when making investment decisions for their retirement accounts.
The Senate, which has a Democratic majority, passed the legislation in a 50-46 vote. The bill was backed by Sens. Joe Manchin (D-WV) and Jon Tester (D-MT). The House voted 216-204 in favor of the rollback, with Rep. Jared Golden (D-ME) being the sole Democrat to vote with the Republicans in the lower chamber.
House Republicans are expected to try and override the veto on Thursday but are anticipated to fail because of their slim majority, a source told Just The News.
“This Administration continues to prioritize their radical policy agenda over the economic, energy and national security needs of our country, and it is absolutely infuriating,” Manchin said in a statement following the veto.
Before Biden’s veto, attorneys general in more than two dozen states filed a lawsuit against the Biden administration in January. The suit was over the Labor Department’s ESG rule. It was filed in a Texas federal court and sought a preliminary injunction to stop the rule from going into effect.