The Republican-majority House of Representatives on Thursday failed to reach the majority needed to override President Joe Biden's first veto of the law preventing retirement funds from investing according to social criteria.
The House had to reach a two-thirds majority to revive the resolution. However, the vote to override the veto was 219 to 200. "House Republicans will continue to fight to overturn this rule that allows ESG (Environmental, Social and Governance) investing to make sure Americans get the best possible retirement, not the wokeest," said Republican Rep. Steve Scalise.
In February the House succeeded in approving HJ Res. 30 with a bipartisan voteThe President decided to veto it under the justification that he wants to "protect the life savings" of U.S. citizens.
"There is ample evidence to show that environmental, social and governance factors can have a material impact on markets, industries and businesses. But the Republican-led resolution would force retirement plan managers to ignore these relevant risk factors, disregarding free market principles and putting the life savings of working families and retirees at risk. In fact, this ruling would prevent retirement plan fiduciaries from taking into account factors, such as the physical risks of climate change and poor corporate governance, that could affect investment performance," the chairman said.
House fails to override Biden veto upholding ESG rule https://t.co/tBMOjDvFWw
— Just the News (@JustTheNews) March 23, 2023
However, critics of the ESG criteria consider such practices to be part of a radical leftist agenda that could be counterproductive.
"To put it bluntly, the administration's fanaticism in the fight against climate change by trying to turn the federal financial regulators on environmental activists in a reckless and illegal manner is inextricably intertwined with these bank failures and their consequences." expressed recently a group of Republican attorneys general recalling the collapse of Silicon Valley Bank.