Biden issues his first veto, nixing measure blocking new investment rule
PUBLISHED MON, MAR 20 2023
Zoë Richards
U.S. President Joe Biden speaks during the annual Friends of Ireland luncheon in honor of Ireland’s Prime Minister (Taoiseach) Leo Varadkar at the U.S. Capitol in Washington, U.S., March 17, 2023.
Evelyn Hockstein | Reuters
President Joe Biden on Monday issued his first veto since taking office, rejecting a bipartisan measure that would nullify a new administration rule for retirement plans.
“I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country,” Biden said in a video posted on his Twitter account. “They couldn’t take into consideration investments that would be impacted by climate, impacted by overpaying executives and that’s why I decided to veto it.”
The veto comes after the Senate voted 50-46 on March 1 to pass a resolution blocking a Labor Department rule allowing for certain retirement plans to weigh environmental, social and corporate governance factors when selecting investments, instead of making decisions based solely on the best rate of return.
In the Senate vote, Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana joined Republicans to pass the measure.
The House passed it on Feb. 28 in a 216-204 vote, with Rep. Jared Golden of Maine bucking his party to vote with Republicans.
A two-thirds majority is needed in each chamber to override a veto.
Rep. Andy Barr, R-Ky., introduced the measure in February, about two months after the Labor Department issued the investment rule. Following the Senate vote, Barr tweeted: “President Biden should abandon the radical climate activists and join us in putting middle-class savers ahead of politics.”
Zoë Richards
U.S. President Joe Biden speaks during the annual Friends of Ireland luncheon in honor of Ireland’s Prime Minister (Taoiseach) Leo Varadkar at the U.S. Capitol in Washington, U.S., March 17, 2023.
Evelyn Hockstein | Reuters
President Joe Biden on Monday issued his first veto since taking office, rejecting a bipartisan measure that would nullify a new administration rule for retirement plans.
“I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country,” Biden said in a video posted on his Twitter account. “They couldn’t take into consideration investments that would be impacted by climate, impacted by overpaying executives and that’s why I decided to veto it.”
The veto comes after the Senate voted 50-46 on March 1 to pass a resolution blocking a Labor Department rule allowing for certain retirement plans to weigh environmental, social and corporate governance factors when selecting investments, instead of making decisions based solely on the best rate of return.
In the Senate vote, Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana joined Republicans to pass the measure.
The House passed it on Feb. 28 in a 216-204 vote, with Rep. Jared Golden of Maine bucking his party to vote with Republicans.
A two-thirds majority is needed in each chamber to override a veto.
Rep. Andy Barr, R-Ky., introduced the measure in February, about two months after the Labor Department issued the investment rule. Following the Senate vote, Barr tweeted: “President Biden should abandon the radical climate activists and join us in putting middle-class savers ahead of politics.”
In a statement of administration policy before Congress voted, the White House warned that Biden would veto the resolution if it were to reach his desk.
“The 2022 Biden-Harris Administration rule makes clear that...fiduciaries can consider factors such as corporate accountability and transparency, climate, and liability risks if they find them relevant to the analysis of an investment’s risk and return, in the same way that they would prudently consider other relevant factors,” the White House said.
Biden’s veto comes under a newly divided Congress, after two years of unified Democratic control.
Former President Donald Trump’s first veto came in March 2019, following two years of Republican majorities in Congress. By the end of his presidency, Trump had issued 10 vetoes.
US: Joe Biden uses veto for first time
What is the Republican-led ESG bill?
The bill overturned a Labor Department rule making it easier for fund managers to consider ESG factors for investments and in proxy voting. The Labor Department reinstated the ESG rule in November, undoing a push by former President Donald Trump to penalize investment fund managers for considering climate change.
Two Democratic senators voted with the Republicans, allowing the bill to pass. The Democrats hold a thin majority in the Senate.
Republicans claim the rule would politicize investing in a way that would hurt financial performance.
Democrats argue that the rule does not prescribe how ESG factors should be considered, as long as the fund is meeting its obligations to its beneficiaries. Biden has also framed the rule as a financial boost to investors concerned about climate risk.
Republicans accuse Biden of 'far-left' agenda
"It is clear that President Biden wants Wall Street to use your hard-earned money not to grow your savings, but to fund a far-left political agenda. That will hurt seniors and workers," Republican House of Representatives speaker Kevin McCarthy said.
Democratic Senator Joe Manchin, who voted with Republics on the bill, said that the Biden administration was pushing a "radical policy agenda."
"Despite a clear and bipartisan rejection of the rule from Congress, President Biden is choosing to put his administration's progressive agenda above the well-being of the American people," Manchin said.
During a debate on the bill, Senate Democratic leader Chuck Schumer accused Republics of "forcing their own views down the throats of every company and every investor."
sdi/rt (Reuters, AFP, AP)
The US president has overturned a Republican bill that would have prevented investment fund managers from taking factors like climate change into account.
https://p.dw.com/p/4OxMW
US President Joe Biden used his veto power for the first time on Monday.
The move overrides an investment bill proposed by Republicans. The bill would have prevented investment fund managers from taking factors like such as climate change, social impacts or pending lawsuits into account, known as ESG investing.
Biden tweeted that the bill would threaten "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," Biden said, referring to a Republican lawmaker that championed the bill.
To override the veto, supporters of the bill would need to garner a two thirds majority both in the House of Representatives and the Senate.
https://p.dw.com/p/4OxMW
US President Joe Biden used his veto power for the first time on Monday.
The move overrides an investment bill proposed by Republicans. The bill would have prevented investment fund managers from taking factors like such as climate change, social impacts or pending lawsuits into account, known as ESG investing.
Biden tweeted that the bill would threaten "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," Biden said, referring to a Republican lawmaker that championed the bill.
To override the veto, supporters of the bill would need to garner a two thirds majority both in the House of Representatives and the Senate.
What is the Republican-led ESG bill?
The bill overturned a Labor Department rule making it easier for fund managers to consider ESG factors for investments and in proxy voting. The Labor Department reinstated the ESG rule in November, undoing a push by former President Donald Trump to penalize investment fund managers for considering climate change.
Two Democratic senators voted with the Republicans, allowing the bill to pass. The Democrats hold a thin majority in the Senate.
Republicans claim the rule would politicize investing in a way that would hurt financial performance.
Democrats argue that the rule does not prescribe how ESG factors should be considered, as long as the fund is meeting its obligations to its beneficiaries. Biden has also framed the rule as a financial boost to investors concerned about climate risk.
Republicans accuse Biden of 'far-left' agenda
"It is clear that President Biden wants Wall Street to use your hard-earned money not to grow your savings, but to fund a far-left political agenda. That will hurt seniors and workers," Republican House of Representatives speaker Kevin McCarthy said.
Democratic Senator Joe Manchin, who voted with Republics on the bill, said that the Biden administration was pushing a "radical policy agenda."
"Despite a clear and bipartisan rejection of the rule from Congress, President Biden is choosing to put his administration's progressive agenda above the well-being of the American people," Manchin said.
During a debate on the bill, Senate Democratic leader Chuck Schumer accused Republics of "forcing their own views down the throats of every company and every investor."
sdi/rt (Reuters, AFP, AP)
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