Samuel Case, FISM News
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House Republicans on Thursday fell short of the two-thirds majority needed to override Biden’s veto on legislation that would have barred federal money managers from considering environmental, social, and governance (ESG) factors when making investment decisions.
The House voted 219-200 to override the veto, with one Democrat, Rep. Jared Golden (D-Maine), siding with every Republican who voted for the ban.
On Monday President Biden issued the first veto of his presidency, blocking the bill that would overturn a Labor Department rule that allows fund managers to base investment decisions on factors like climate change.
In a video statement announcing the veto, Biden said the bill “would put at risk retirement savings of individuals across the country.”
“They couldn’t take into consideration investments that would be impacted by climate, impacted by overpaying executives,” he said. “And that’s why I decided to veto it.”
I just vetoed my first bill.
This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don't like.
Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not. pic.twitter.com/PxuoJBdEee
— President Biden (@POTUS) March 20, 2023
Republicans and a handful of Democrats argue the rule will hurt retirement investment accounts by basing investments on ideology over profit.
“Ultimately, President Biden had a choice to make: do you support blue-collar workers who deserve the best benefits in their retirement, or billionaire elites who want to direct your funds into places that get a lower yield?” House Majority Leader Steve Scalise (R-La.) said.
“I think it’s important to keep trying and, you know, keep fighting for those workers who, when they retire, they want the highest rate of return,” Scalise added.
After Biden’s veto, Senator Joe Manchin (D-W.Va.) – who voted with Republicans on the bill – said ESG would damage the economy and accused Biden of putting a “radical policy agenda” over the needs of the country.