This article discusses President Biden using his first veto to preserve a recent Labor Department rule regarding environmental, social, and governance (ESG) funds in 401(k) retirement plans. The Biden rule rolled back a Trump-era rule that effectively barred employers from considering ESG funds for 401(k)s. The Biden rule clarifies that employers can consider workers’ non-financial preferences like ESG factors when selecting 401(k) investment options. However, experts are unsure if the Biden veto will actually encourage more employers to offer ESG funds given ongoing political and regulatory uncertainty surrounding the issue.
- President Joe Biden plans to veto the bill if it comes to his desk — the first veto of his presidency.
- Republicans say the ESG investing rule is part of a broader trend of “woke capitalism,” which includes a range of actions taken by corporations and investment firms that critics say reflect liberal political influence.
https://www.cnbc.com/2023/03/21/biden-veto-401k-rule-esg-investment-funds.html