Dem Sen. Manchin joins Republican efforts to thwart federal ESG investing rule

West Virginia Democratic Sen. Joe Manchin is backing a Republican-led initiative to rollback a Biden administration rule allowing investment managers to consider environmental and social factors when making investments in retirement savings.

The Labor Department rule aimed to reverse Trump-era guidelines discouraging Environmental, Social, and Governance (ESG)-based investing practices. The current rule clarifies that individuals managing retirement funds may consider whether companies in which they may invest consider such factors in their own practices.

House Republicans passed a resolution Tuesday to eliminate the rule and the Senate will hold its own vote on Wednesday, Politico reported. Congress is able to nullify certain federal regulations without needing to overcome a filibuster in the Senate.

Manchin's support puts Republicans within striking distance of sending the rescinding measure to President Joe Biden's desk, though he has said he will veto the measure. Democrats hold a 51-49 edge in the Senate, meaning Republicans need at least two Democrats to cross over in order to advance the plan.

Democratic Montana Sen. John Tester, among other moderate-leaning Democrats in the upper chamber, are also mulling whether to support the elimination of the rule, per the outlet.

Ben Whedon is an editor and reporter for Just the News. Follow him on Twitter.