Biden vetoes bill to block Labor Dept. rule on ESG investing

President Biden on Monday vetoed his first bill, a Republican proposal to prevent pension fund managers from making investment decisions based on factors such as climate change.

“We just signed this veto because the bill passed by Congress puts the retirement savings of individuals across the country at risk,” Biden said. Video posted on Twitter.

The bill passed Congress on March 1. By a 50-46 vote, the Senate adopted a resolution that overturned the Labor Department’s rule, making it easier for fund managers to consider issues related to environmental, social, corporate governance or ESG, investment and shareholder rights decisions. proxy voting, etc.

The results highlight Republican lawmakers’ willingness to oppose traditional allies of Wall Street and corporate America who adopt what Republicans have characterized as “awake” liberal practices. .

Two Democratic senators, Joe Manchin of West Virginia and John Tester of Montana, voted for Republicans. Both will face re-election in Republican-leaning states in 2024. The Republican-controlled House of Representatives passed the bill in February.

“We signed this veto because the bill passed by Congress puts the retirement savings of individuals across the country at risk,” Biden said.

Republicans said the rule, which targets plans to collectively invest $12 trillion on behalf of 150 million Americans, would politicize investments by allowing planners to pursue liberal ends. , claiming to impair financial performance.

“It is clear that President Biden wants Wall Street to use his hard-earned money not to increase savings, but to fund far-left political agendas. will hurt,” Republican House Speaker Kevin McCarthy said in a statement Monday.

texas wind farm
The Senate voted 50-46 to pass a resolution that overruled the Department of Labor’s rule and made it easier for fund managers to consider environmental, social and corporate governance issues related to their investments. Above is a wind farm in Texas.

Democratic Senate Majority Leader Chuck Schumer accused Republicans of interfering in private investment decisions, saying on the floor of the Senate that Republicans “impose their views on every company and every investor.” said.

Manchin countered that it was the Biden administration that was pushing a “radical policy agenda” on the issue.

“Despite Congress’ clear bipartisan rejection of the rule, President Biden has chosen to put his administration’s progressive agenda ahead of the well-being of the American people,” Manchin said in a statement. there is,” he said.

Leave a Reply

Your email address will not be published. Required fields are marked *