Senate Overturns ESG Investing Rule; Biden Plans Veto
Summary from the AllSides News Team
On Wednesday, the U.S. Senate passed a resolution overturning a Labor Department rule that permitted private retirement fund managers to consider environment, social and governance (ESG) factors in their investment decisions.
The Details: The measure passed the Senate in a 50-46 vote, with Sens. Joe Manchin (D-WV) and Jon Tester (D-MT) joining Republicans. The resolution passed in the House on Tuesday, with only one Democrat voting for the bill.
Key Quote: "President Biden wants to sacrifice seniors’ retirement savings to fund his political agenda," said Senator Mike Braun of Indiana, who led the bill. "Both the Senate and the House have now sent powerful, bipartisan rebukes of the Biden ESG agenda. I’m proud to stand up for Americans’ retirement savings to stop this harmful rule."
For Context: Encouraged by their wins in November's midterm elections, Republicans have taken aim at "woke capitalism," including ESG investing policies. President Joe Biden has promised to veto the bill. If he does, the resolution would have to be approved by Congress again with a two-thirds majority vote in both chambers. The overturned rule allowed "plan fiduciaries to consider climate change and other environmental, social and governance factors when they select retirement investments and exercise shareholder rights, such as proxy voting."
How the Media Covered it: Sources across the political spectrum covered the news. One right-rated source called the overturning a "stunning rebuke." Many sources noted prominently that Biden is expected to veto the bill.
Featured Coverage of this Story
From the Left
2 Senate Democrats join GOP in rejecting socially conscious investing rule, rushing it back to Biden for a promised vetoTwo reelection-wary Democratic senators joined a united GOP caucus in disapproving of a Labor Department rule allowing for socially conscious investing by retirement fund managers, a procedural loss the Biden administration can overcome with a promised veto.
Wednesday's defectors, both of whom are facing tough reelection bids this cycle in states Donald Trump won by double digits in 2020, include Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana.
The duo joined the 48 Senate Republicans present in spiking the DOL rule allowing investment advisors to consider...
From the Center
Senate overturns federal rule on ESG investments, Biden vows to vetoThe Senate on Wednesday voted to overturn a Labor Department rule that permits fiduciary retirement fund managers to consider climate change, good corporate governance and other factors when making investments on behalf of pension plan participants.
The final vote in the Senate was 50-46, with two Democratic senators crossing party lines to support the repeal bill: Sen. Joe Manchin of West Virginia and Sen. Jon Tester of Montana. Both are up for reelection next year in conservative-leaning states.
President Joe Biden said Monday that he will veto the Senate bill if it...
From the Right
Senate kills Biden ESG investment rule in stunning rebukeThe Senate on Wednesday passed a disapproval resolution, formally killing a Biden administration Department of Labor rule that encourages private retirement plan fiduciaries to consider environment, social and governance (ESG) factors when making investment decisions for over 150 million Americans.
The measure, which only required a simple majority to pass, passed the threshold in a 50-46 vote. The House of Representatives passed it Tuesday in a 216-204 vote, with only one Democrat voting for the bill.
Two Democrats voted for the bill in the Senate: Joe Manchin of West Virginia and Jon...
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