Biden issues first veto and takes on the new Republican Congress
ZEKE MILLER and SEUNG MIN KIMMarch 20, 2023
President Joe Biden on Monday issued the first veto of his presidency, an early sign of shifting relations between the White House and the new Congress since Republicans took power in January. He is trying to overturn a Republican measure that prohibits the government from considering environmental impacts or potential lawsuits when making investment decisions for Americans’ retirement plans.
It’s just the latest manifestation of the new relationship, and Biden is gearing up for even bigger battles with Republicans over government spending and raising the country’s debt limit in the coming months.
The measure that Biden vetoed ended a Trump-era ban on federal pension plan administrators considering factors such as climate change, social impacts or pending litigation when making investment choices. Because lawsuits and climate change have financial implications, officials argue
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the investment limits create a potential disaster.
Critics say environmental, social and governance
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Investments allocate money based on political agendas, such as action on climate change, rather than on getting the best returns for savers. Congressional Republicans who pushed the move to overturn the Labor Department’s action argue that ESG is just the latest example of the world trying to wake up.
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Biden said in a video released by the White House that he vetoed the measure because it jeopardized the retirement savings of individuals across the country.
Only two Senate Democrats voted in favor of the investment caps, making it unlikely that supporters of a potential veto override attempt in Congress could get the two-thirds majority required in each chamber.