President Biden issues first veto, rejecting GOP-backed anti-ESG investment rule

President Joe Biden on Monday issued his first veto since taking office, rejecting a resolution to overturn a retirement investment rule that allows fund managers to consider climate change and other environmental, social, and governance factors when making investments.

The resolution was being pushed by Republican lawmakers, who argued that the rule was a “woke” policy that would hurt retirees’ finances, while Democrats argued that it would assist investors.

The resolution had passed both chambers of Congress, with Democratic Senators Joe Manchin and Jon Tester voting with the Republicans.

Biden said in a video posted on social media that the resolution would put the savings of individuals “at risk”, and that it made sense to veto it. The move marks Biden’s fulfillment of his promise to veto legislation passed by the GOP-controlled House that he disagrees with.

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

“I just signed this veto because legislation passed by the Congress would put at risk the retirement savings of individuals across the country. They couldn’t take into consideration investments that wouldn’t be impacted by climate, impacted by overpaying executives, and that’s why I decided to veto it – it makes sense to veto it,” Biden said.

It’s possible for opponents of the veto to override the President, but it remains unlikely as overriding a veto requires two-thirds of both chambers of Congress to go against it.