Biden Uses First Veto to Protect Labor Department ESG Investing

President Joe Biden used his first presidential veto on Monday to block congress from overturning a rule allowing the Labor Department to consider environmental, social, and governance (ESG) factors in its investment decisions.

Key Quote: After vetoing the bill, Biden tweeted, “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.”

For Context: The vetoed bill made it through the Senate after Sen. Joe Manchin (D-WV) and Sen. Jon Tester (D-MT) joined Republicans in supporting the legislation. Manchin voiced his displeasure with the President after the veto was announced, stating, “this Administration continues to prioritize their radical policy agenda over the economic, energy and national security needs of our country, and it is absolutely infuriating.” Having been vetoed, the bill is now sent back to congress, where it needs two-thirds approval in both the House and the Senate to overcome Biden’s veto. ESG has polarized lawmakers, with many on the left supporting it, believing it to be a more holistic approach to investment, and many on the right opposing it, fearing it compromises profits in favor of “woke” ideology.

How The Media Covered It: Outlets across the spectrum noted that this was the first veto of the Biden Administration. Axios labeled Manchin and Tester as “vulnerable” senators. Fox News determined a two-thirds majority in both chambers of congress was “unlikely.”