The House of Representatives on Thursday failed to override President Joe Biden’s first veto of his presidency, which was related to a Biden administration rule on environmental, social, and governance (ESG) investment.
The House vote of 219–200 in favor of overriding Biden’s veto fell short of the two-thirds majority threshold required. All Republicans who were present voted in favor of overriding the veto. Rep. Jared Golden (D-Maine) was the lone Democrat who joined them in the vote.
Biden’s veto, issued March 20, rejected a resolution introduced by Rep. Andy Barr (R-Ky.) to rescind a Department of Labor (DOL) rule that went into effect on Jan. 30. The resolution, whose companion bill was led by Sen. Mike Braun (R-Ind.), passed the House and Senate via simple majority votes.
The DOL rule allows pension fund managers to invest people’s retirement money according to various ESG criteria. It replaces a previous rule issued under the Trump administration in 2020 that required fund managers to make investments only based on financial considerations.
The Biden administration rule affects the pensions of 152 million Americans, which amount to some $12 trillion.
“House Democrats just overwhelmingly doubled down in defense of Biden’s radical ESG regulation,” House Speaker Kevin McCarthy (R-Calif.) said in a statement on Twitter on Thursday in response to the failed veto override.
“House Republicans have different priorities: your retirement savings should NOT be used to fund political activism,” he added. “We’ll continue to fight for American workers over woke Wall Street.”
Barr, who introduced the anti-ESG measure, on Thursday shared a Twitter post from Rep. John Rose (R-Tenn.): “@HouseGOP is sending a message to President Biden: we stand with hard-working, middle-class Americans over woke, special interest groups.
.@HouseGOP is sending a message to President Biden: we stand with hard-working, middle-class Americans over woke, special interest groups.
— Congressman John Rose (@RepJohnRose) March 23, 2023
Americans' retirement accounts should be protected from left-wing lunacy. @RepAndyBarr is leading this effort and I'm 100% supportive – for…
“Americans’ retirement accounts should be protected from left-wing lunacy. @RepAndyBarr is leading this effort and I’m 100% supportive—for the financial security of Tennesseans.”
ESG is a voluntary activity companies can pursue. The non-financial criteria are measured by external, third-party providers. Companies deemed to better meet ESG criteria may be allotted more capital and credit, and preferential contracting, by financial institutions subscribed to the ESG agenda.
