On September 19, 2024, Oversight and Investigations Subcommittee Chairman Bill Huizenga (MI-04) led Republicans on the House floor as lawmakers debated H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act.
H.R. 4790 represents the combined efforts of Subcommittee Chairman Huizenga and Representatives Bryan Steil (WI-01), Ralph Norman (SC-05), and Barry Loudermilk (GA-11). The bill aims to strengthen the financial system, preserve the dominance of U.S. capital markets, and protect investors' and retirement savers' financial interests from radical ESG initiatives.
Rep. Huizenga's remarks emphasized the importance of passing H.R. 4790 to maintain a robust financial system. He stated: "Today, we have the opportunity to ensure our financial system remains the envy of the world by passing H.R. 4790, the Promoting Economic Growth Over Woke Policies Act."
Huizenga criticized the Biden-Harris administration for allegedly using independent agencies to push a partisan environmental, social, and governance—or ESG—agenda through financial regulation. He remarked: "Under the Biden-Harris administration, supposedly independent agencies have been hijacked to push through a partisan environmental, social, and governance—or ESG—agenda."
He argued that these ESG mandates do not benefit consumers or investors: "These misguided ESG efforts don’t benefit our banking system or capital markets. They certainly don’t help consumers, workers, job creators, everyday investors, or retirement savers."
The bill is a combination of four packages from the Financial Services Committee: Huizenga’s 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.
Huizenga praised his colleagues' contributions and highlighted Chairman McHenry's leadership in prioritizing protection against ESG mandates: "I applaud my colleagues for their work and appreciate their partnership. I also commend Chairman McHenry for his steadfast leadership to ensure protecting Americans and our financial system from ESG mandates is a key priority for Republicans on the Financial Services Committee."
He underscored why H.R. 4790 is necessary: "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."
Huizenga specifically criticized SEC Chair Gensler's actions regarding securities laws: "SEC Chair Gensler and progressive Democrats are abusing our securities laws, overstepping their statutory authority, and redefining the ‘materiality standard’ to accommodate the demands of radical climate and social activists."
The GUARDRAIL Act within H.R. 4790 aims to protect U.S. capital markets by rejecting an expansive notion of materiality: "It protects U.S. capital markets and the financial interests of everyday investors by rejecting this new prescriptive notion of materiality and reining in SEC overreach."
The bill also seeks accountability for large asset managers like ISS and Glass Lewis: "H.R. 4790 holds large asset managers...accountable...forcing left-wing political views on public companies rather than aligning their shareholder voting with investors' financial interests."
Additionally, it reforms SEC’s shareholder proposal process to prevent progressive activists from injecting woke ESG initiatives into corporate boardrooms.
Huizenga concluded by urging support for H.R. 4790: "With the Promoting Economic Growth Over Woke Policies Act...House Republicans are taking action to protect...the financial system...from radical ESG initiatives that put left-wing political goals above American prosperity.”
"I urge my colleagues to support H.R. 4790," he added.