Analyzing Biden's First Presidential Veto: Protecting Investments and Free Markets.

President Biden used his first veto to preserve a Labor Department rule that allows employers to consider environmental, social, and governance (ESG) factors when choosing 401(k) funds for workers. The Trump-era rule restricted employers to using only "pecuniary factors" when selecting funds, which experts say hindered the uptake of ESG funds. While the Biden rule returns power to the fiduciary, it doesn't force employers to consider ESG factors. However, the regulatory uncertainty surrounding the issue still leaves employers afraid of getting sued for their investment choices.