President Joe Biden has used his veto power for the first time since taking office, rejecting a resolution that aimed to overturn a Department of Labor rule. The retirement investment rule
allows retirement fund managers to consider the impact of climate change and other environmental, social, and governance factors when making investment decisions. Republican lawmakers led the push to pass the resolution through Congress, claiming that the rule is a “woke” policy that will hurt retirees’ bottom lines by pushing a liberal agenda on Americans. Democrats, on the other hand, argue that the rule is not about ideology and will help investors.
The resolution had passed both chambers of Congress, with Democratic Sens. Joe Manchin of West Virginia and Jon Tester of Montana voting with Republicans in the Senate. However, Biden vetoed the resolution, citing the risk it poses to the retirement savings of individuals across the country. In a video posted on social media, the President explained that the rule allows for investments that are not impacted by climate change or overpaying executives to be considered, and vetoing the resolution “makes sense.” The video showed Biden signing the veto in the Oval Office earlier on Monday.
Biden’s veto is consistent with his promise to veto any legislation passed by the GOP-controlled House that he disagrees with. Even before Republicans took control of the chamber, Biden often mentioned his ability to veto their priorities. With the Republicans now in control of the House, legislation passed by the current GOP-controlled House will not be able to pass the Democratic-controlled Senate, where the President’s party only has a majority. However, the resolution to overturn the investment rule only required a simple majority to pass in the Senate, and Republican lawmakers advanced it under the Congressional Review Act, which allows Congress to roll back regulations from the executive branch without needing to clear the 60-vote threshold in the Senate that is necessary for most legislation.
Opponents of the rule have argued that it politicizes retirement investments and that the Biden administration is using it as a way to promote a liberal agenda. Republican Sen. John Barrasso of Wyoming said at a news conference earlier this year, “What’s happened here is the woke and weaponized bureaucracy at the Department of Labor has come out with new regulations on retirement funds, and they want retirement funds to be invested in things that are consistent with their very liberal, left-wing agenda.”
While opponents of the rule may try to override Biden’s veto, it appears unlikely that they could get the two-thirds majority needed in each chamber to do so. Biden’s first presidential veto reflects the changed political order in Washington, with Republicans now in control of the House after winning back the chamber from Democrats in the 2022 midterm elections. Photo by Gage Skidmore from Peoria, AZ, United States of America, Wikimedia commons.