President Biden's veto of legislation that would have killed the Labor Department's environment, social, and corporate governance (ESG) investing rule won't settle the issue, if reaction to the decision is any indication. From an attempt to override the veto to a legal challenge by Republican state attorneys general in 25 states, the political issues surrounding the Department of Labor's (DOL's) ESG rule will continue to swirl for the foreseeable future.

The resolution to kill the rule passed both houses under the "Congressional Review Act," a process that requires only a majority vote. However, a vote to override the veto would require a two-thirds vote—a threshold that is unlikely to be met.

And so, the rule, which allows fiduciaries to consider climate change and other ESG issues when they evaluate retirement investments and shareholder rights, will remain in effect for now—a development that was welcomed by Brian Graff, CEO of the American Retirement Association, which supported the Biden veto.