WASHINGTON (Reuters) -U.S. President Joe Biden on Monday rejected a Republican proposal to forestall pension fund managers from basing funding choices on components like local weather change, within the first veto of his presidency.

“I simply signed this veto as a result of the laws handed by the Congress would put in danger the retirement financial savings of people throughout the nation,” Biden mentioned in a video posted on Twitter.

The invoice cleared Congress on March 1, when the Senate voted 50-46 to undertake a measure to overturn a Labor Division rule making it simpler for fund managers to think about environmental, social and company governance, or ESG, points for investments and shareholder rights choices, comparable to by proxy voting.

The end result highlighted Republicans’ willingness to oppose their conventional allies in Wall Avenue and company America that undertake what celebration lawmakers characterize as “woke” liberal practices.

Two Democratic senators, Joe Manchin of West Virginia and Jon Tester of Montana, voted with Republicans. Each face re-election in Republican-leaning states in 2024. The Republican-controlled Home of Representatives handed the invoice in February.

Republicans declare the rule, which covers plans that collectively make investments $12 trillion on behalf of 150 million People, would politicize investing by permitting plan managers to pursue liberal causes, which they are saying would damage monetary efficiency.

“It’s clear that President Biden needs Wall Avenue to make use of your hard-earned cash to not develop your financial savings, however to fund a far-left political agenda. That may damage seniors and staff,” Republican Home of Representatives speaker Kevin McCarthy mentioned in a press release on Monday.

Senate Democratic chief Chuck Schumer accused Republicans of interfering with non-public investing choices, saying on the Senate flooring that they’re “forcing their very own views down the throats of each firm and each investor.”

Manchin countered that it was the Biden administration that was pushing its “radical coverage agenda” on this challenge.

“Regardless of a transparent and bipartisan rejection of the rule from Congress, President Biden is selecting to place his administration’s progressive agenda above the well-being of the American folks,” Manchin mentioned in a press release.