WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, released the following statement after the House Financial Services Committee passed two bills he introduced; H.R. 5429, the SEC Regulatory Accountability Act and H.R. 4852, the Private Placement Improvement Act of 2016. In addition to Garrett’s bills, the subcommittee passed seven additional bills that Garrett guided through his subcommittee:
“Last month’s abysmal jobs report proves again that top-down, Washington-first economic policies are failing the American people. If we want to revitalize the economy, Congress needs to promote investment and reduce red tape by making it easier for investors and businesses across America to access capital and grow. Today the Financial Services Committee took steps to do that by passing two bills I sponsored and seven more from the Capital Markets subcommittee.
“My bills do two simple things. First, every business and every family does their own version of a cost-benefit analysis when making financial decisions, and the SEC will have to do the same under the SEC Regulatory Accountability Act. Second, the SEC needs to make sure it is implementing the JOBS Act to jumpstart the economy instead of imposing additional restrictions on investment. The Private Placement Improvement Act is designed to fix that problem.”
So far this Congress, 10 bills from Garrett’s subcommittee have been signed into law by President Obama—all with bipartisan support. With the passage of 9 bills today, 39 total bills from the Capital Markets subcommittee have been approved by the full committee this Congress.
H.R. 5429, the SEC Regulatory Accountability Act
The SEC has a three-part mission, investor protection, orderly markets, and capital formation. To make sure that the SEC is not restricting the flow of capital into our economy, Garrett’s bill would require the SEC to demonstrate that any rules it proposes will help our businesses grow by performing a cost-benefit analysis.
This codifies guidance that President Obama gave to executive branch agencies and will lend credibility to the SEC’s rules. Garrett’s bill ensures that businesses and start-ups have suitable supervision from the SEC and are not burdened by costly overregulation. The SEC Regulatory Accountability Act passed the House in 2013, as H.R. 1062, by a bipartisan vote.
H.R. 4852, the Private Placement Improvement Act
The SEC has the responsibility of implementing the innovative laws Congress passed in the JOBS Act and continues to have oversight of the private offering market for securities. However, the SEC was a year and a half late in making rules for general solicitation of private offerings under Title II of the JOBS Act, and continued a poor streak when, in 2013, it came out with new proposals to impede the private offering market.
The proposals would have hindered all Reg. D issues and not just those using general solicitation. The threat of expensive regulation hanging over the heads of investors has meant that the amount of capital raised under Reg. D has not grown in the manner that other areas of the market helped by the JOBS Act have. Garrett’s bill makes a single notice of sales sufficient for exemption from regulation under Reg. D and helps the JOBS Act reach its full potential by maintaining a clear and common-sense approach to regulations for private offerings.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05), Chairman of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises, released the following statement after the Federal Housing Finance Agency (FHFA) issued an alert that Fannie Mae increased the projected budget for their new Washington, D.C. headquarters by over 50 percent. Fannie Mae is one of the government-sponsored enterprises that was put in conservatorship after taking a $200 billion taxpayer bailout in 2008.
“Like a child with a credit card in a toy store, the bureaucrats at Fannie Mae just couldn’t help themselves. After being forced to bail out the GSE's to the tune of nearly $200 billion, American taxpayers now get the news that they are underwriting lavish spending at Fannie Mae's new downtown Washington, D.C. headquarters. So while Americans around the country are living paycheck to paycheck, Washington insiders are blowing through budgets by designing glass enclosed bridges and rooftop decks.
“Even more troubling, the Federal Housing Finance Agency—the entity whose sole job it is to oversee the GSE's—appears to have been asleep at the wheel as costs spiraled out of control. This is the same FHFA that just last year thought it was a good idea to give GSE executives a pay raise to nearly $4 million. This complete failure by FHFA and the excess displayed by Fannie Mae are the exact reasons why the American people are disgusted by business as usual in Washington, D.C.”
To read the full report, click here.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) released the following statement in response to reports that Boeing has reached a multibillion-dollar deal to sell commercial passenger planes to Iran. Boeing is one of the largest beneficiaries of the Export-Import (Ex-Im) bank which perpetuates corporate welfare to mega corporations by handing out taxpayer-backed loans.
"This agreement between Boeing and the world's largest state sponsor of terrorism is extremely troubling and shows that crony capitalism remains alive and well in Washington. Not only has Boeing lobbied for years to keep the taxpayer-backed Export Import bank alive, it now has also used its powerful position to take advantage of the ill-conceived nuclear deal with Iran. This agreement is bad news, not just for taxpayers but for our national security."
Boeing was lobbying Congress to keep their Ex-Im bank subsidies at the same time it was seeking carve outs from the Obama Administration to do more business with the dangerous Iranian regime. Garrett has been an outspoken critic of the Ex-Im bank and the Iran nuclear deal.
Garrett on Ex-Im:
Press Release - Garrett Fights Washington's Addiction to Crony Capitalism by Voting Against Ex-Im Reauthorization
Press Release - Garrett: Congress Should Put the Export-Import Bank Out of Business
Garrett on Iran Nuclear Deal:
Press Release - Garrett Statement on Iran Nuclear Arms Deal
Jewish Link of New Jersey - Now Is the Time for Action on Iran Deal
The Record - Garrett vows to keep fighting Iran agreement
Press Release - A Bad Deal for the U.S. and its Allies
WASHINGTON, D.C. – Reps. Scott Garrett (NJ-05) and Bill Foster (IL-11) introduced an amendment to H.R. 5055, the Energy and Water Appropriations Bill, that would stop “payer states” like Illinois and New Jersey from giving more money to smaller “taker states” by eliminating an out-of-date government program.
Every year, hundreds of billions of dollars is transferred out of “payer states” (those that pay more in federal taxes than they receive back in federal spending ), into “taker states” (those that receive more federal spending than they pay in taxes). One of the worst offenders of this redistribution is the National Science Foundation (NSF) Experimental Program to Stimulate Competitive Research (EPSCoR), which is special federal research spending that goes almost exclusively to small states that already receive far more federal spending than they pay in taxes.
“For too long, politicians have advocated for an ever-expanding federal government, confiscating more and more money from hard-working families in payer states like New Jersey,” said Garrett. “And what does this mean for these families? It means that they will continue to subsidize the countless ineffective, wasteful redistributive programs like the NSF EPSCoR. The people of New Jersey deserve to have their tax dollars spent in their state, not sent to Washington to be diverted and wasted by unelected bureaucrats, and the Foster-Garrett amendment would relieve the taxpayers of this burden.”
EPSCoR was first authorized by Congress in 1978 with goal of redistributing federal research dollars into states that did not get their “fair share” of research dollars. However, because the “fair share” was determined on a per-state basis rather than a per-capita basis, it has devolved into another program that steers money into states that already get more than their fair share of federal spending.
What was intended to be temporary assistance to a select group of states to build their research infrastructure and then exit the program has become a permanent and growing pot of taxpayer subsidies. Eligibility to participate in NSF EPSCoR opportunities is based solely on whether or not a state has received less than 0.75% of NSF research funding in the previous three years. This means that the EPSCoR opportunities are based solely on whether or not a state has received less than 0.75% of NSF research funding in the previous three years.
The Foster-Garrett Amendment would eliminate this program so more money can stay in the pockets of New Jersey families.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) welcomed Maryana Stern to be his shadow for a day as part of the fifth annual "Congressional Foster Youth Shadow Day." Nearly 100 foster youth and alumni from across the country travelled to Capitol Hill to accompany members of Congress to work and get a behind-the-scenes look at the House of Representatives.
Rep. Garrett shows Maryana Stern around Capitol Hill
as part of Congressional Foster Youth Shadow Day
“It was a pleasure to have Maryana shadow me this morning on Capitol Hill,” said Garrett. “She is an ambitious young woman who has overcome a lot, and it was great to show her around Congress and discuss issues that affect foster youth across the country. As a member of the Congressional Caucus on Foster Youth, I know it’s important to ensure that our nation's foster youth have the opportunities and support they need to succeed.”
In addition to shadowing Rep. Garrett, Maryana attended a lunch where members speak about the work Congress is doing to support foster youth. Rep. Garrett is a member of the Congressional Caucus on Foster Youth. This bipartisan caucus unites over 160 Members of Congress to examine the challenges facing all foster youth and develop policy initiatives.
A U.S. Department of Veterans Affairs (VA) outpatient health care clinic will open in Newton this summer, U.S. Rep. Scott Garrett, R-5th District, announced today.
Opening a clinic in Sussex County has long been sought by local veterans. Many use the Morristown clinic, which is more than an hour's drive from parts of the county.
The clinic in Port Jervis, N.Y., is not part of the New Jersey network.
To read the full article, click here.Read More
WASHINGTON, D.C. – Capital Markets and Government-Sponsored Enterprises Subcommittee Chairman Scott Garrett (NJ-05) delivered the following remarks at a hearing entitled, “Legislative Proposals to Enhance Capital Formation, Transparency, and Regulatory Accountability”:
Congressman Scott Garrett’s opening remarks as prepared for delivery:
Today, the Subcommittee meets to examine three important pieces of draft legislation that continue our work over the last five years to modernize our nation’s securities laws, promote transparency and competition in our capital markets, and bring real reform and accountability to the SEC’s rulemaking process
Recent polls indicate that roughly two-thirds of Americans believe our country is headed in the wrong direction, and a declining number of people believe that their children will be better off financially than they have been
So despite the big promises that have come with granting vast and in some cases unlimited authority to the federal bureaucracy, most Americans aren’t buying the argument that a bigger Washington leads to a bigger paycheck – or even to a paycheck at all
Fortunately, our Subcommittee has for five years tried an alternative approach which seeks to empower entrepreneurs, investors, and small businesses – not bureaucrats
This approach has led to some legislative successes – most notably with the JOBS Act of 2012 – but maybe more importantly it has led Congress and regulators to think in different ways than they historically have
So today we continue our important work with these three pieces of legislation:
First, we will consider the SEC Regulatory Accountability Act, which would require that the SEC determine that the benefits of any regulation they are considering actually outweigh its economic and regulatory costs
Even President Obama – through executive orders issues in 2011 – has recognized the importance of economic analysis in rulemakings; this legislation would merely codify much of the President’s executive order for the SEC
Second, we have the Investment Advisers Modernization Act from Mr. Hurt
This is a long overdue piece of legislation that would allow private capital to continue to play a critical role in our economy, and which reduces many of the unnecessary bureaucratic requirements that have the effect of starving middle market businesses of the capital that they need
Third, Mr. Duffy has put forward the “Proxy Advisor Form Reform Act of 2016” which would – for the first time in memory – provide some much needed sunlight to the way in which proxy advisory firms develop and distribute their advice
This Subcommittee has led the charge in Congress for reform of the proxy advisory industry, and this draft legislation is the next step in those efforts
So I want to thank all of the sponsors for their hard work on all of these bills and I look forward to hearing from our witnesses.
WASHINGTON, D.C. – Newton will be the home of a new Department of Veterans Affairs (VA) outpatient health care clinic to serve veterans in the nearby area. Reps. Scott Garrett (NJ-05) and Rodney Frelinghuysen (NJ-11) helped lead the charge for a new facility by demonstrating to VA officials how veterans in Sussex and Warren Counties were underserved by a lack of a nearby facility. This clinic will improve the lives of local veterans by allowing them to receive the vital health care services they need closer to home.
“I’m very happy that veterans in Sussex and Warren Counties will soon have a VA outpatient clinic nearby to serve their needs,” said Garrett. “For too long, our heroes in this part of the state had to travel long distances to receive the treatment they’ve earned—sometimes foregoing the process altogether—but that will change with the opening of this facility.”
The process to open the Sussex County-based outpatient clinic is well underway with a site being finalized, equipment needs being assessed, and staff recruitment beginning. The facility is expected to open in July or August 2016.
WASHINGTON, D.C. – Rep. Scott Garrett (NJ-05) today called upon U.S. Environmental Protection Agency (EPA) Administrator Gina McCarthy and EPA Region 2 Administrator Judith Enck to re-evaluate their decision to place a barrier over the 166,000 tons of contaminated materials at the Ringwood Superfund Site instead of pursuing complete removal of the toxic substances.
Recent discoveries of significant levels of 1,4-dioxane, a probable human carcinogen that may result in liver, kidney, and upper respiratory damage, at levels close to 100 times the state maximum standard, raises new concerns about the EPA’s decision to cap the site. Congressman Garrett demands that the EPA identify all potential toxic substances that may be present at the Ringwood Superfund Site and ensure that a new cleanup plan rectifies the presence of all hazardous substances once and for all.
“As you know, the Ringwood Superfund Site is a decades old and continued concern for New Jersey residents,” said Garrett in his request to the EPA. “The discovery of an additional toxic substance has increased public concern about the EPA’s decision to approve the plan to cap the site. New Jersey residents deserve to know that a plan to mitigate hazardous substances in their communities will be successful and will permanently remove the public health threat posed to them.”
The Congressman is also demanding answers from a February 2016 letter where he requested information about groundwater tests when it came to light that they had knowledge of the presence of 1,4-dioxane. To date, the EPA has not responded to these requests.
Congressman Garrett’s Specific Requests from the EPA:
1. Is the EPA reevaluating the decision to cap the site instead of a full cleanup due to the discovery of a new toxic substance and the possibility that other toxic substances may be present?
2. What were the reasons behind approving the plan to cap the site despite the EPA initially supporting a full cleanup?
3. What are the criteria for pursuing the plan to cap the site and does the presence of a new toxic substance affect these criteria?
To read the entire letter, click here.
WASHINGTON, D.C. – Capital Markets and Government-Sponsored Enterprises Subcommittee Chairman Scott Garrett (NJ-05), delivered the following remarks at a hearing entitled “Continued Oversight of the SEC’s Offices and Divisions”:
Congressman Scott Garrett’s opening remarks as prepared for delivery:
Today, the Subcommittee will continue its efforts to conduct vigorous oversight of the Securities and Exchange Commission, and in particular the individual offices which make up the SEC
In the last two years, our Subcommittee has heard testimony from the directors of the Trading and Markets, Corporations Finance, Enforcement, and Investment Management Divisions at the SEC
These hearings have allowed us to take a more thorough look at the agency’s operations, rulemaking agenda, and enforcement practices so that we can better understand whether the SEC is appropriately carrying out its three-fold mission to protect investors, maintain fair, orderly, and efficient markets, and (last but certainly not least!) facilitate capital formation
So I welcome our witnesses today and look forward to hearing their testimony – I hope that between the four of you, we are able to cover a lot of ground
Back in 2000, the SEC’s operating budget was about $369 million; today, the SEC has a budget authority for Fiscal Year 2016 of a little over $1.6 billion
And the SEC has recently submitted a request to bring its Fiscal Year 2017 budget up to nearly $1.8 billion
So during much of the time when Congress has been accused of starving the SEC of the funds it needs to fulfill its mission, its budget has actually quadrupled in the last fifteen years
It would be one thing if this four-fold increase in funding coincided with an agency that has become four times as effective
Instead, we are likely to look back at this period as a time when the SEC missed some of the greatest frauds in history, was ill-prepared for the financial crisis of 2008, failed to properly incorporate economic analysis into rulemakings, and, more recently, has often times been complicit in advancing the priorities of special interests
Unfortunately, instead of addressing some of the fundamental structural issues at the SEC, the Dodd-Frank Act created more offices within the agency - two of which we will hear from today
Dodd-Frank also granted the agency vast new rulemaking authority that the SEC has often times struggled to implement appropriately
For example, while the SEC has made strides towards improving the economic analysis that underlies its rulemakings, there is still much more work to be done in this area
It’s not acceptable for the SEC to simply say “Congress made us do it” and therefore assume that a rulemaking is beneficial, as the SEC did with its “pay-ratio” rule last year
It’s also incumbent upon the SEC to clearly articulate a problem or market failure that their rules are intended to address, which should be obvious but is still unfortunately lacking in many of the Dodd-Frank rules being implemented
So I’m eager to hear about some of the steps the SEC is taking to further improve its economic analysis
I also continue to have concerns over recent rulemakings related to credit rating agencies
While there is broad agreement that certain provisions in Dodd-Frank – such as the removal of references to credit ratings in regulations – were much needed and directly address one of the causes of the financial crisis, I worry that many of the other micro-managing rules included in Dodd-Frank have had the effect of further stifling competition in the credit rating agency industry
2232 Rayburn HOB
Washington, DC 20515
On January 3, 2013, Congressman Scott Garrett was sworn in to the United States House of Representatives, representing New Jersey’s 5th Congressional District. Since his election to Congress in 2002, Scott has burnished himself with a reputation as a leading advocate of tax relief and pro-growth economic policies, earning him awards and accolades from a number of national taxpayer and small business groups.
As a senior member of the House Budget Committee, Scott is on the frontline of House Republican efforts to rein in runaway government spending and shrink our country’s ballooning national debt.
A member of the House Financial Services Committee since his election to Congress, Scott has been at the forefront of public policy deliberations dealing with issues related to the financial services industry, developing considerable expertise in areas ranging from securities and finance to insurance and regulatory oversight.
At the beginning of the 112th Congress, Scott was selected to serve as the Chairman of the Financial Services Subcommittee on Capital Market and Government-Sponsored Enterprises. In this role, Scott presides over the subcommittee with jurisdiction over the Securities and Exchange Commission (SEC) and government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. In addition, the subcommittee also handles all matters related to capital markets activities such as business capital formation and venture capital, as well as derivative instruments.
As founder and Chairman of the Congressional Constitution Caucus, Scott is highly respected among his House colleagues as an authority on constitutional issues. Founded in 2005, the Constitution Caucus provides an effective forum for education on constitutional principles and discussion on the appropriate limitations of congressional action.
Born in Englewood, Scott has spent much of his life living in North Jersey, which has instilled in him a great appreciation for the outdoors. He is a leading proponent of preserving open space and protecting such natural treasures as the Highlands, the Musconetcong River and the Wallkill River National Wildlife Refuge.
Prior to his election to Congress, Scott served in the New Jersey General Assembly from 1990 to 2002, as the senior Assemblyman for the 24th Legislative District, Assistant Majority Leader, and Chairman of the Banking and Insurance Committee. During his tenure, he also served on the Education, Transportation, Agriculture & Natural Resources Committees, as well as the Joint Committee on Public Schools.
Scott earned his Bachelor of Arts degree from Montclair State University and his Juris Doctor from Rutgers School of Law – Camden.
Scott resides in Wantage Township in Sussex County with his wife, Mary Ellen, and their two daughters, Jennifer and Brittany.
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Yes - the tax code can be simpler, fairer, and flatter for all Americans! https://t.co/0Vm0Xt9IQw
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Congrats again to Alexandra on winning the Congressional Art Comp for NJ-05! She came to DC this week to be honored https://t.co/r8f772jEJf
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I asked Fed Chair Yellen why the Fed of pursues policies that help the rich at the expense of the poor. https://t.co/0WTj0GnlrD
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Yes - the tax code can be simpler, fairer, and flatter for all Americans!
Thanks to Alexandra—the winner of my 2016 Congressional Art Competition—and her family for stopping by my office this week while they were
In case you missed it, earlier this week I asked Fed Chair Janet Yellen why the Fed of pursues policies that help the rich at the expense of
Proud to be named a Defender of Economic Freedom by the Club for Growth! This award is given to Members of Congress who "vote in favor of economic
Wishing all of the fathers out there a very happy Father's Day!