Republican members of the Tennessee Congressional Delegation condemned President Joe Biden on Monday for using his first veto to shoot down legislation that would require pension fund managers to make investment decisions based on financial factors – not based on environmental, social, or governance (ESG) factors.
Last November, the U.S. Department of Labor implemented the ESG rule which allows retirement plan managers to consider environmental and social issues when making investment decisions instead of focusing on financial factors relative to the rate of return.
In response, Congress passed legislation – H.J. Res. 30 – that would nullify the department’s rule.
I just vetoed my first bill.
This bill would risk your retirement savings by making it illegal to consider risk factors MAGA House Republicans don't like.
Your plan manager should be able to protect your hard-earned savings — whether Rep. Marjorie Taylor Greene likes it or not. pic.twitter.com/PxuoJBdEee
— President Biden (@POTUS) March 20, 2023
“I just signed this veto because the legislation passed by the Congress would put at risk the retirement savings of individuals across the country,” Biden said in a social media video.
In a separate statement, Biden further defended the Department of Labor’s rule, saying, “There is extensive evidence showing that environmental, social, and governance factors can have a material impact on markets, industries, and businesses. But the Republican-led resolution would force retirement managers to ignore these relevant risk factors, disregarding the principles of free markets and jeopardizing the life savings of working families and retirees.”
On Twitter, Congressman Tim Burchett (R-TN-02) reacted to Biden’s veto of the legislation, writing, “Biden’s first veto blocked a bill that would protect people’s retirement investments. It would have ensured investment managers make decisions based on the best financial outcomes, not political agendas.”
Biden's first veto blocked a bill that would protect people's retirement investments.
It would have ensured investment managers make decisions based on the best financial outcomes, not political agendas.
What's wrong with that, @POTUS?https://t.co/eV7siIY5xY
— Rep. Tim Burchett (@RepTimBurchett) March 20, 2023
Congressman Mark Green (R-TN-07) added, “President Biden’s ESG veto shows that he cares more about left-wing special interest groups and the green lobby than he does about retirees.”
President Biden's ESG veto shows that he cares more about left-wing special interest groups and the green lobby than he does about retirees. https://t.co/EAsmlK6euB
— Rep. Mark Green (@RepMarkGreen) March 20, 2023
Congressman Chuck Fleischmann (R-TN-03) called Biden’s veto “disappointing,” noting that the action “jeopardizes the hard-earned savings of millions of Tennesseans and Americans nationwide.
It's disappointing that President Biden vetoed a bipartisan bill to protect Americans' retirement investments from radical ESG mandates.
Biden's veto jeopardizes the hard-earned savings of millions of Tennesseans and Americans nationwide. https://t.co/qLiSOvLUYG
— Chuck Fleischmann (@RepChuck) March 20, 2023
Senator Marsha Blackburn (R-TN) called ESG priorities “woke.”
Biden’s first veto is to allow retirement plans to consider woke ESG priorities when making investment decisions.
— Sen. Marsha Blackburn (@MarshaBlackburn) March 20, 2023
Meanwhile, in the State of Tennessee, a bill is making its way through the legislature that would bar the Tennessee Treasurer from abiding by the labor department’s ESG rule.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network.
Photo “Tim Burchett” by Tim Burchett. Photo “Mark Green” by Congressman Mark Green. Photo “Chuck Fleischmann” by Congressman Chuck Fleischmann. Photo “Marsha Blackburn” by Sen. Marsha Blackburn. Background Photo “Joe Biden” by President Joe Biden.
