After casting the first veto of his administration on Monday to prevent a bipartisan anti-ESG measure, President Biden reportedly provoked widespread indignation among both Republicans and Democrats.
The goal of the legislation supported by both parties was to overturn a recent regulation promulgated by the Labor Department that encourages retirement fiduciaries to take environmental, social, and corporate governance (ESG) concerns into consideration when making investment decisions.
Once the Republican-led efforts to approve the rollback were met with resistance from the Biden administration three weeks ago, the veto was to be expected.
The votes in the House and the Senate received backing from three Democrats, including centrist senators Jon Tester of Montana and Joe Manchin of West Virginia, both of whom are running for reelection the next year.
“President Biden is choosing to put his Administration’s progressive agenda above the well-being of the American people.” Manchin said.
Even though Republicans who led the work on the repeal were unsuccessful in getting it signed into law, it marked a partial victory for conservatives who have targeted the rule and other policies that they say encourage major corporations to elevate climate and social goals in their business practices.
Conservatives have targeted the rule and other policies because they say these policies encourage major corporations to elevate climate and social goals in their business practices over other concerns.
The contentious regulation that was issued by the Biden Labor Department aimed to overturn a policy from the Trump administration that prevented retirement plan managers from taking environmental and social considerations into account when making investment decisions.
The Biden rule gives them the option and encouraged them to do so.
Despite being the target of criticism from Republican politicians, the majority of Wall Street corporations and trade associations chose to remain neutral during the conflict.
Biden’s move is widely scene as a major concession to the radical progressive base of his party.