On Wednesday, the Senate passed a resolution 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 passed the threshold in a 50-46 vote, with only two Democrats voting for the bill. The House of Representatives passed it a day earlier in a 216-204 vote, with only one Democrat voting for the bill.
The bipartisan disapproval resolution, which has the backing of all GOP senators, Democratic Sen. Joe Manchin of West Virginia, and more than 100 organizations, was introduced last month by Republican Sen. Mike Braun of Indiana and Rep. Andy Barr, R-Ky.
President Biden had warned Monday that he would veto the bill if it reached his desk. The White House argued that “successful marketplace investors already know that environmental, social, and governance factors can have material impacts on certain markets, industries, and companies.”
However, GOP lawmakers criticized the DOL rule, saying it “politicizes” and “jeopardizes” the retirement savings of over 152 million Americans. The organizations that supported the resolution cheered the passage, saying it sends a clear, bipartisan message to the Biden administration and Wall Street elites that Americans’ voices are being heard.