President Obama on Wednesday vetoed H.J. Res. 88, a resolution that would block the Labor Department’s conflict-of-interest rule for retirement investment advice, also known as the fiduciary rule.
The move makes it even more unlikely that the resolution will ever enter into force, since neither chamber adopted the resolution with a veto-proof majority. The House adopted the measure on a 234-183 party-line vote in April, and the Senate cleared it 56-41 last month, with the support of three Democrats.
“Because this resolution seeks to block the progress represented by this rule and deny retirement savers investment advice in their best interest, I cannot support it,” Obama wrote in his veto message to the House of Representatives. “I am therefore vetoing this resolution.”
Obama defended the regulation by saying it “reflects extensive feedback from Members of Congress, and has been streamlined to reduce the compliance burden and ensure continued access to advice, while maintaining an enforceable best interest standard that protects consumers.”
Rep. Phil Roe of Tennessee, who introduced the resolution, said in a statement today that Republicans will continue their fight on the retirement security issue.
“This veto threatens the retirement security of millions of working families,” Roe said. “We’ll continue to do everything in our power to protect access to affordable retirement advice for every American.”
In a separate statement, Education and the Workforce Committee Chairman John Kline (R-Minn.) said the fiduciary rule fight is “far from over.”
“Congress will continue to do what’s necessary to stop this harmful rule and help low- and middle-income families retire with the dignity and peace of mind they deserve,” Kline said.
Neither Kline nor Roe mentioned whether the House will attempt to override the president’s veto.
This article has been updated to include statements from Reps. Kline and Roe.