The Senate on Wednesday overturned a Department of Labor rule that permits retirement plans to contemplate environmental, social and governance aspects when making investment decisions, with Republicans arguing that it is part of President Biden’s “woke” agenda.
Two Senate Democrats, West Virginia’s Joe Manchin and Montana’s Jon Tester, joined all Republicans in support of the ESG disapproval resolution, which passed by a 50-46 vote within the Democrat-majority chamber.
4 senators didn’t vote on the now-passed laws, which matches to Biden’s desk for what is anticipated to be his first veto.
“The Senate made the suitable decision to vote down Biden’s rule to harm Americans’ retirement savings. I’m proud to steer this bipartisan challenge,” Sen. Mike Braun (R-Ind.), who sponsored the bill, tweeted Wednesday.
“President Biden: keep your hands off our 401(k)s!” he added.
An identical bill sailed through the GOP-controlled House on Tuesday in a 216-204 vote.
House Speaker Kevin McCarthy (R-Calif.) argued that the “woke ESG rule” would let “Wall Street use your retirement savings to fund left-wing political causes.”
Republican lawmakers, akin to Sen. John Barrasso (R-Wyo.) also apprehensive that the Labor Department rule would jeopardize the retirement savings of greater than 152 million Americans.
“We’re attempting to protect retirement funds for people,” Barrasso said through the press conference on Wednesday.
“[Biden’s] threatening to veto our efforts. In a way, he is essentially thumbing his nose at hardworking American families who want to speculate to maximise their returns for his or her retirement.”
Tesla CEO Elon Musk last yr called ESG a scam that “has been weaponized by phony social justice warriors.”
McCarthy, on Wednesday also called for the 80-year-old president to simply accept Congress’ votes on the matter.
“The House blocked Biden’s woke ESG agenda. The Senate blocked Biden’s woke ESG agenda. Now it heads to the President’s desk. He must side with American staff and sign it immediately,” McCarthy argued.
On Monday, the White House vowed that Biden would veto the bill if it landed on his desk.
“The President will proceed to deliver for America’s staff. If the President were presented with H.J. Res. 30, he would veto it,” the White House said in a Statement of Administration Policy defending the DOL’s ESG rule.
“The rule reflects what successful marketplace investors already know — there’s an intensive body of evidence that environmental, social, and governance aspects can have material impacts on certain markets, industries, and firms,” the White House added.
If Biden does veto the resolution, Congress would need to approve it again in a two-thirds majority vote in each chambers to override.