Press Releases

Washington D.C. (September 19, 2024) | This week, Rep. Barry Loudermilk (GA-11) released the following statement after his bills H.R. 4823, the American Financial Institution Regulatory Sovereignty and Transparency (American FIRST) Act and H.R. 4648, legislation to hold America’s largest asset managers accountable, both passed the U.S. House. 

Both bills were included as part of a larger package, H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act, to combat the influence of environmental, social, and governance (ESG) initiatives in our nation’s financial system.

“America’s banking regulators have been hijacked and are pushing highly partisan environmental, social, and governance (ESG) policies, reversing long standing efforts to be objective,” said Rep. Barry Loudermilk (GA-11). “The American FIRST Act will de-politicize banking regulation, remove unnecessary political influence from the financial supervisory regime, and restore transparency and accountability in our financial system. I am proud to see this legislation pass the House today; and I thank Speaker Johnson, Leader Scalise and the House Financial Services Committee Republicans for their commitment in getting it to the House Floor for a vote. I strongly urge the Senate to pass this legislation.”

“The Biden-Harris administration’s Federal banking regulators are pushing climate policies via financial supervision with little to no way for Congress to conduct meaningful oversight. My provision in this package requires transparency on the regulators’ meetings with global governance groups that create these policies with which regulators comply under the guise of international standardization. This legislation will shine a light on how regulators are being influenced by non-elected, non-American governance groups and ensure Congress can hold U.S. agencies accountable for overstepping their mandated authority,” stated Rep. Andy Barr (KY-6).

“The Biden Administration has repeatedly tried to use the regulatory power of executive branch agencies to enact the policy wish list of activists. The Prioritizing Economic Growth Over Woke Policies Act helps ensure that federal agencies don’t impose ESG and other radical policies on our financial markets. This package is critical to stopping the Biden Administration’s regulatory overreach and I appreciate the work of Congressman Loudermilk and everyone who stepped up to contribute to this effort,” stated Rep. Mike Flood (NE-1).

H.R. 4823, the American FIRST Act (Division D)

This legislation de-politicizes bank regulation, ends meddlesome foreign influence on the banking system, and removes unnecessary political appointments from the financial supervisory regime. It ensures Congress is fully aware of how international agreements affect domestic banking policy. The America FIRST Act has three key elements: 

1. Removes Politics from Bank Regulation: The bill requires major federal bank regulators (The Federal Reserve, the FDIC, the OCC, the NCUA, and the FHFA) to report to Congress when implementing non-binding recommendations from Executive Orders or the Financial Stability Oversight Counsel.
   
   
2. Ensures U.S. Authority over U.S. Bank Regulators: The bill Increases transparency and congressional oversight of federal banking regulators and their interactions with international organizations, particularly non-governmental organizations (NGOs), to limit their influence over U.S. banking policy.
   
   
3. De-politicize Federal Reserve Supervision: The bill calls for the elimination of the Vice Chairman of Supervision at the U.S. Federal Reserve. This role was intended to centralize supervisory power within the Fed, but in recent years has been used to further political aims, particularly by promoting the Biden Administration’s climate agenda through bank regulation. 

This legislation is a compilation of four previously introduced bills, including:

• H.R. 4649, the Ensuring U.S. Authority Over U.S. Banking Regulations Act, sponsored by Rep. Loudermilk (GA-11). 
• H.R. 4737, the Stop Executive Capture of Banking Regulators Act, sponsored by Rep. Mike Flood (NE-01). 
• H.R. 4601, the Banking Regulator International Reporting Act, sponsored by Rep. Andy Barr (KY-6). 
• H.R. 4630, the Supervision Reform Act, sponsored by Rep. Andy Ogles (TN-05).

H.R. 4648, a bill to amend the Securities Exchange Act of 1934 to provide for duties of certain investment advisors, asset managers, and pension funds with respect to voting on shareholder proposals and for other purposes (Included in Division C)

This legislation requires America’s largest asset managers to be more transparent with the public when voting the shares entrusted to them by investors. These large firms have historically relied on external proxy advisory firms, some of whom are foreign-owned and operated, to guide how they vote the shares they manage for other investors. 

This bill would also require these large firms to disclose how often they vote shares in-line with proxy advisory firms, and to explain how their votes are in the best interests of their shareholders. 

Read the full text here of H.R. 4790, the Prioritizing Economic Growth Over Woke Policies Act, which includes H.R. 4823 and H.R. 4648.

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