Huizenga Testifies Before Rules Committee in Support of the Prioritizing Economic Growth Over Woke Policies Act
Washington,
September 17, 2024 -
Today, Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04) appeared before the House Committee on Rules to testify in support of H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act.
H.R. 4790 is a reflection of the combined efforts of Subcommittee Chairman Huizenga and Reps. Bryan Steil (WI-01), Ralph Norman (SC-05), and Barry Loudermilk (GA-11) to strengthen our financial system, preserve the dominance of U.S. capital markets, and protect the financial interests of investors and retirement savers from radical ESG initiatives.
Watch Rep. Huizenga’s testimony here.
Read Rep. Huizenga’s testimony as prepared for delivery:
“Chairman Burgess, Ranking Member McGovern, and Members of the Rules Committee, I appreciate this opportunity to testify on H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act.
“To ensure our financial system remains the envy of the world, we must promote sensible policies that encourage innovation, improve access to investment opportunities, and foster economic growth.
“That means Congress and financial regulators must balance policies that promote a vibrant financial system and capital formation with those that protect investors and consumers.
“However, under the Biden-Harris administration, supposedly independent agencies have been hijacked to push through a partisan environmental, social, and governance—or ESG—agenda, reversing long-standing efforts to keep politics out of our financial system.
“Unelected bureaucrats have hijacked and overhauled the public company shareholder proxy process, adopted rules and guidance that exceed their statutory authority, redefined the “materiality standard,” and ceded authority over American financial regulation to global governance bodies.
“In other words, rogue Democrat-appointed regulators are forcing companies to waste their limited time and resources on ESG mandates that have little to do with a firm’s financial performance.
“What sense does that make? Who does that benefit?
“It certainly doesn’t benefit our banking system or capital markets. Nor does it help consumers, workers, job creators, everyday investors, or retirement savers.
“That’s why House Republicans are fighting back with H.R. 4790, the Promoting Economic Growth Over Woke Policies Act.
“This bill is almost two years in the making. It’s the product of a collaborative process that included almost every single Republican on the Financial Services Committee.
“Last February, Chairman McHenry formed Committee Republicans’ ESG Working Group, which I am honored to lead. Through numerous meetings with stakeholders, the working group developed an interim report, which was released last June. A final staff report was released this past August.
“Committee Republicans drafted dozens of bills to address the risks posed by the ESG agenda, which were outlined in the Working Group’s reports.
“These efforts culminated in a markup of four legislative packages in the Financial Services Committee, including my GUARDRAIL Act, Congressman Steil’s Protecting Retirement Savings from Politics Act, Congressman Norman’s Businesses Over Activists Act, and Congressman Loudermilk’s American FIRST Act.
“Those bills were combined into the Promoting Economic Growth Over Woke Policies Act, which is part of the rule being considered today.
“So, let’s recap. Under the Biden-Harris Administration, rogue regulators are weaponizing independent agencies to pursue the ESG objectives of the far left at the expense of our financial system and everyday investors.
“This includes abandoning the materiality standard, which has been a pillar of our securities laws for decades and a key contributor to the dominance of American capital markets.
“The proxy advisory duopoly and large asset managers are abusing their outsized market influence to force left-wing political views on public companies, rather than aligning their shareholder voting with the financial interests of investors and economic goals.
“An alliance of left-wing activists, unaccountable global governance organizations, and politicized Biden-Harris regulators is weaponizing the U.S. regulatory framework governing American financial institutions to inject radical ESG initiatives to the detriment of consumers and our banking system.
“That’s why H.R. 4790 is so essential. It will prevent regulatory overreach, restore the materiality standard, reform the SEC’s proxy voting process, hold large proxy advisory firms accountable, block regulators from injecting ESG initiatives into our financial system, and reassert sovereignty over American financial regulation.
“With the Promoting Economic Growth Over Woke Policies Act, House Republicans are taking action to protect the financial system, workers, job creators, and everyday investors from radical ESG initiatives that put left-wing political goals above American prosperity.
“Thank you for allowing me to testify and I yield back.”
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