The Senate passed a bill Wednesday overturning a Department of Labor rule allowing investment fund managers to consider factors other than financial outcomes including social, governance and environmental impacts when considering investments, CNN reports, a move that will likely trigger President Joe Biden’s first veto.
Democrats Jon Tester of Montana and Joe Manchin of West Virginia to reach the simple majority needed to pass the bill thanks to the Congressional Review Act, which allows legislation passed by simple majorities in both the Senate and the House to roll back Executive Branch regulations. The Biden Administration endorses the regulation because it gives fund managers greater freedom to invest in companies that may underperform others but include social and environmental awareness in their missions.