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stop “payer states” like Illinois and New Jersey from giving more money to smaller “taker states” by eliminating an out-of-date government program.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
By Rep. Scott Garrett
For too long, tax and spend politicians have used the tax code to confiscate more money from working families in New Jersey because they believe the government can spend the funds better than those that earned it. And each tax season, New Jerseyans are painfully reminded of their high tax burden.
At over 70,000 pages containing 4 million words, chances are you didn't read the entire U.S. tax code before filing your taxes this year. In fact, the tax code is so long and complicated that you probably ended up having to pay a person or a service for their expertise -- all the while hoping that they read and understood all 70,000 pages.
This is a tax code in desperate need for reform. Reform that keeps more money in New Jersey, ends the special interest loopholes, and lowers the overall tax margins for everyone.
Keep the money at home
Some politicians view tax reform and the ever-growing government as yet another opportunity to empower themselves at the expense of hardworking New Jersey taxpayers. By advocating for more programs and more benefits, big government spenders are really placing their faith in bureaucrats. So rather than send taxpayer dollars to Washington and hope bureaucrats send it back, I am fighting to keep more of your money in your own pocket.
Our overly complex tax code is the lifeblood of the biggest scam perpetuated by Washington politicians. They take your hard-earned money through a broken tax system that no one understands, and then cut backroom deals to give this money to their favored programs. And if some tiny amount actually comes home, the taxpayers are supposed to thank Washington for giving some of it back.
Think of it this way. If someone stole a $50 bill out of your pocket, would you thank that person after they brought you a happy meal from a fast food restaurant? f course not! It's your money and you know better how it should be spent.
Even the playing field
Next, we must end the tax benefit system bestowed to Washington's favored industries. The current tax code is a grab bag of loopholes, deductions, and escape routes for those fortunate enough to be able to hire an army of tax attorneys and lobbyists.
Every year, pinstriped lobbyists descend upon Washington to receive their tax carve outs -- known as tax credits -- for their industry. Not only does this arrangement let the federal government pick winners and losers, it misallocates the capital investment that so many struggling industries need. And the individual taxpayer, who has no lobbyist in Washington, is left picking up the tab.
This is not the type of economic liberty and freedom of opportunity the Founders envisioned.
New Jerseyans should no longer be expected to pay for government favors enjoyed by mega-corporations and Washington's preferred industries. Every industry should play on the same, even playing field, not the rigged system of carve outs we have now. Additionally, the number of deductions -- which allow businesses to lower their tax burden --should be significantly reduced.
If it's broke, fix it
And on the individual level, we need a simpler, fairer, and flatter tax code free of loopholes. The average American spent 13 hours preparing their taxes last year -- totaling more than 6 billion hours for all Americans. Navigating the tax code has become too complicated and time consuming.
Instead, the tax code needs to be simplified so that high-powered corporate executives, who can hire expensive tax attorneys to lower their rates and find loopholes, don't end up paying a lower percentage than a single mom working two jobs.
Thomas Jefferson once wrote, "I predict future happiness for Americans if they can prevent government from wasting the labors of the people under the pretense of taking care of them."
New Jerseyans have been frustrated by bureaucrats in Washington who continuously waste tax dollars. Comprehensive tax reform will force the government to be more efficient, effective, and accountable to the people. Americans deserve a tax system that provides equal opportunity and economic freedom for everyone, not just those who have power and influence in Washington.
Rep. Scott Garrett, a Republican, represents New Jersey's 5th Congressional District, which includes most of Sussex County.Read More
By Rep. Scott Garrett
As one-size-fits-all regulation and top-down mandates continue to strangle our economy, the Jumpstart Our Business Startups (JOBS) Act of 2012 has proven to be a breath of fresh air. This truly bipartisan accomplishment that I helped shepherd through Congress has led a resurgence in the initial public offering market and allowed more companies to raise capital through private channels. Simply put, the JOBS Act opens doors for capital to flow into growing and innovative businesses.
But the JOBS Act may not reach its full potential. That’s because many provisions of the JOBS Act were not self-effectuating upon becoming law. Instead, the bill directed the Securities and Exchange Commission (SEC) to implement these new provisions through regulation, leaving the SEC a great deal of discretion as to how the JOBS Act will work in practice.
The SEC has a mixed record when it comes to fulfilling its obligation to promote capital formation, one of the agency’s three core missions. Take the issue of the SEC’s performance on crowdfunding. While the SEC was required to issue rules nine months after the JOBS Act passed, the SEC took three years to do so. When the SEC finally got around to issuing the rules, the final regulations diluted the ambitious goals laid out in Congress.
Crowdfunding was intended to give all Americans, regardless of income level, the ability to make financial investments. However, the SEC added burdensome requirements and placed arbitrary caps on investment — imposing its judgement over that of working Americans seeking to invest their hard-earned savings. This nanny-state mentality creates a system in which wealthy Americans have a greater ability to earn a return on investment than lower- or middle-income households who are restricted by SEC regulation.
Additionally, the SEC missed the mark when it proposed new restrictions on issuers under Regulation D of the 1933 Securities Act, which lays out three exemptions for securities sellers from registering their offering with the SEC. Under the JOBS Act, Congress allowed Regulation D issuers the ability to advertise their shares to the general public for the first time.
However, the SEC’s proposal would hinder the ability of all Reg. D issuers to raise capital through private channels — not just those who take advantage of the new opportunity to advertise their shares. While the SEC has not implemented these proposals, its attempt to impose new barriers to investment was seriously misguided.
There are some parts of the SEC’s record that deserve recognition. Its modernization of Regulation A, which provides an exemption that allows companies to raise capital from the public markets without having to issue a full-fledged IPO, was commendable. The SEC’s actions ensured that most Regulation A issuers would be spared the burden of complying with a conflicting web of individual state registration requirements, and subsequently companies are starting to raise capital under the modernized Regulation A.
Monitoring the implementation and impact of the JOBS Act remains a top priority of the Capital Markets Subcommittee, and we intend to move legislation to fix the mistakes made by the SEC. But the JOBS Act was just a beginning — and there is more that Congress can and should do to help entrepreneurs grow and prosper.
For example, while the JOBS Act did a great deal to reduce the cost of an initial capital raise, more should be done to help issuers trade in the aftermarket. Lack of liquidity and competition in the secondary-market trading of small-capitalization companies has long made access to capital difficult. As SEC Chair Mary Jo White noted in a recent speech at Stanford University, some 70% of startups die within 20 months of their last financing.
To spur competition and increase liquidity, I introduced the Main Street Growth Act, which would establish the legal framework for the creation of venture exchanges — stock exchanges specifically designed for the trading of small-capitalization stocks. Businesses that use provisions of the JOBS Act — such as the IPO “on ramp” or the modernized Regulation A — would be eligible to list and trade on a venture exchange. Venture exchanges are a logical next step to increase the flow of capital throughout our economy.
Congress and the SEC should consider other solutions, such as reform of intrastate offering regulations and micro offerings, which would allow a business to solicit investments from a group of known investors without running afoul of SEC rules. Such reforms warrant further congressional consideration to achieve the goal of removing roadblocks to capital formation for startups.
The lesson of the financial crisis is that Keynesian economics can never replace the free market as a source of prosperity for the American people. When government stops the regulatory squeeze, the creativity of the American people will quite literally pay off.
Garrett, a Republican who represents New Jersey’s fifth congressional district, is chairman of the House Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.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 “The JOBS Act at Four: Examining Its Impact and Proposals to Further Enhance Capital Formation”:
Congressman Scott Garrett’s opening remarks as prepared for delivery:
It’s not very often that Congress can look back at a major piece of legislation and be able to measure the tangible, positive impact it is having on peoples’ lives and on our economy
Too often, we find ourselves – particularly on this Committee – counting up the costs of misguided Washington mandates and comparing them with the phantom benefits promised by the bureaucratic class
Fortunately, that is not the case today
The Jumpstart our Business Startups - or “JOBS” Act – signed into law four years ago this month has by most measures been a resounding success for our economy and the future of innovation in America
The JOBS Act did this not by creating new federal mandates or spending taxpayer money on wasteful programs, but by empowering entrepreneurs and innovators who were struggling under a regulatory regime that was better suited for 1934 than it was for 2016
Just consider some of the following:
So while it’s clear that many parts of the JOBS Act are working as intended, the point of this hearing is not to pat ourselves on the back and say “job well done”
For starters, because the Senate tried its best back in 2012 to neuter the crowdfunding title and the SEC has taken some liberties with other rulemakings, the JOBS Act needs some “fixing”
So I want to thank the gentleman from North Carolina, Mr. McHenry, for putting forward the “Fix Crowdfunding Act” which makes some necessary changes to help ensure Title III reaches its full potential
Additionally, I have put forward a bill – the Private Placement Improvement Act – that will prohibit the SEC from implementing burdensome new rules for Reg D issuers that were uncalled for by the JOBS Act
We’ll also consider two other bills today
Mr. Emmer has introduced an innovative bill that would create a safe harbor for so-called “micro offerings”, and Mr. McHenry has another bill which would raise the threshold for when venture capital funds would have to register with the SEC
In addition to these targeted fixes, I’m also interested in hearing from our witnesses about further areas that Congress should be addressing in order to maintain the competitiveness of our capital markets
For example, we should be exploring the cumulative burdens that come with being a public company – including, unfortunately, some of the ridiculous disclosure requirements of Dodd-Frank as well as the outsized influence that proxy advisory firms have in the corporate governance arena
It’s also time to think more about the lack of research and liquidity that exists for certain public companies, and whether the equity research Global Settlement of 2003 swung the pendulum too far and has led to a dearth of research for small cap stocks
These are all important questions, and I look forward to hearing from our witnesses today.
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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Congrats to Alexandra Gutierrez from Franklin Lakes on taking first place in the 2016 Congressional Art Competition https://t.co/9bK52FdTWN
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Thx to Maryana for joining me this morning for Foster Youth Shadow Day to see a day in the life of a Congressperson! https://t.co/Yujx2LgUnZ
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I want to thank the police officers that put themselves in harm's way every day to keep our communities safe. https://t.co/rYqFcz1k9B
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Happy that Newton will be the home of a new VA outpatient health care clinic 2 help vets get treatment closer 2 home https://t.co/Ce2syJRsW3
Congrats to Alexandra Gutierrez from Franklin Lakes on taking first place in the 2016 Congressional Art Competition! And thanks to the more than
The people of New Jersey deserve to have their tax dollars spent here, not sent to Washington to be diverted and wasted by unelected bureaucrats.
I want to thank Maryana for joining me this morning as part of Congressional Foster Youth Shadow Day! Nearly 100 foster youth and alumni from
I want to thank the brave men and women that put themselves in harm's way every day to keep our communities safe. May God bless and protect our
I'm happy to announce that Newton will be the home of a new Department of Veterans Affairs (VA) outpatient health care clinic. This clinic will