The Senate passed a resolution on Wednesday, killing a Department of Labor rule that encouraged private retirement plan fiduciaries to consider environment, social, and governance (ESG) factors when making investment decisions.
The rule had gone into effect last month, but lawmakers argued it “politicizes” and “jeopardizes” the retirement savings of more than 150 million Americans.
The measure passed the Senate with a simple majority in a 50-46 vote, with only two Democrats voting for the bill. The House of Representatives had passed it a day earlier, with only one Democrat voting for the bill.
Bipartisan lawmakers, including Republican Sen. Mike Braun of Indiana and Democratic Sen. Joe Manchin of West Virginia, introduced the disapproval resolution, which had the backing of all GOP senators, more than 100 organizations, and Consumers’ Research, Heritage Action, and the State Financial Officers Foundation.
The White House warned that President Biden would veto the bill if it reached his desk, arguing that ESG factors could have material impacts on certain markets, industries, and companies.