Senate Republicans will have enough votes Wednesday to nullify the Biden administration’s new rule allowing 401(k) fund managers to consider climate change and social justice politics or ESG when investing clients’ savings, a move that will prompt President Biden to issue his first veto.
Sen. Jon Tester, Montana Democrat, told The Washington Times that he plans to side with all Senate Republicans and fellow Democrat Joe Manchin III of West Virginia to support a resolution to roll back a Labor Department provision for 401(k) fiduciaries to employ environmental, social and corporate governance investing known as ESG.
The two moderate Democrats’ support narrowly gives Republicans the votes to pass their Congressional Review Act resolution and notch a win against what the GOP calls a “woke” investment practice that jeopardizes Americans’ retirement funds.
The resolution is privileged, which means it requires only a simple majority because it cannot be filibustered and must receive a floor vote.
The GOP-led House passed the measure Tuesday with the help of one Democrat, Rep. Jared Golden of Maine.
Once passed by the Senate on Wednesday, the measure will head to Mr. Biden, who he has vowed to employ his veto power. It is doubtful that the House and Senate can muster the two-thirds majority required to overturn a veto.