Biden May Utilize His First Veto As House GOP Takes Aim At Key Policy

The House of Representatives will soon consider legislation that would demolish President Biden’s environmental, social, and governance (ESG) rule if they manage to get it passed. For reference, that ESG rule of Biden’s is one sponsored by Department of Labor (DOL). It allows the retirement plan managers to consider ESG factors when making investment decisions.

The House resolutions, sponsored by Rep. Andy Barr (R-KY) and Sen. Mike Braun (R-IN), would nullify that rule. The resolution provides “That Congress disapproves the rule submitted by the Department of Labor relating to ‘‘Prudence and Loyalty in Selecting Plan Investments and Exercising Shareholder Rights’’ (87 Fed. Reg. 73822 (December 1, 2022)), and such rule shall have no force or effect.”

According to Fox News Digital, the resolution potentially has enough support in the Senate to end up on President’s Biden desk, particularly thanks to Sen. John Fetterman’s mental health-induced absence. Here’s what FoxNews reported:

Lawmakers have critcized the DOL rule, saying it “politicizes” and “jeopardizes” the retirement savings of more than 152 million Americans. Last month, Sen. Mike Braun, R-Ind., and Rep. Andy Barr, R-Ky., introduced the bipartisan disapproval resolution, which has the backing of all GOP senators, Democratic Sen. Joe Manchin of West Virginia and more than 100 organizations.

Passage will only require a simple majority Senate vote to pass and be sent to Biden’s desk. If Sen. John Fetterman, D-Pa., is still out of the office due to being treated for clinical depression, that would let supporters pass it by at least a 50-49 vote, or a larger margin if other Democrats support it.

It only requires 51 votes because the resolution is enabled by the Congressional Review Act. That act allows Congress to pass by a simple majority (51 votes in the Senate) resolutions that nullify federal government regulations within 60 legislation days.

Unfortunately, however, the CRA does not mean the resolution can escape a presidential veto without a veto-proof majority. So it will almost certainly be vetoed after it ends up on Biden’s desk. The White House warned as much in a statement, saying “The President will continue to deliver for America’s workers. If the President were presented with H.J. Res. 30, he would veto it.”

However, passing the resolution could still be beneficial for the GOP in that it rebukes Biden’s moves around investment plans.

Further, it forces him to defend a policy decision many in America see as less than ideal from a retirement fund return perspective. One legislative aide suggested as much in a statement to Fox News Digital, saying “After a month of President Biden accusing Republicans of partisanship and trying to hurt Americans’ retirements, the next thing that comes to his desk is a bipartisan rebuke of his policy that’s hurting Americans’ retirement savings to fund his political agenda.”

So, though Biden can still veto it, passing the bill with some degree of bipartisan support would be a significant rebuke of Biden’s retirement policy decisions and put his administration on the back foot as it tries to blame the GOP for problems with retirement plans and Social Security.