Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Republicans take first steps to kill Obama-era regulations

Published 01/30/2017, 07:05 PM
Updated 01/30/2017, 07:05 PM
© Reuters. Trump receives a standing ovation as he speaks at a congressional Republican retreat in Philadelphia

By Lisa Lambert

WASHINGTON (Reuters) - Republicans on Monday continued their drive to loosen U.S. regulation, taking the first step to kill five Obama-era rules on corruption, the environment, labor and guns under the virtually untested Congressional Review Act.

The House Rules Committee sent to the full chamber three regulations enacted under former President Barack Obama, a Democrat, to ax.

They were the Stream Protection Rule, the Securities and Exchange Commission's "resource extraction rule," and one on gun buying.

Republicans put as much urgency on limiting what they consider over-regulation that stifles economic growth as they do on overhauling the tax code and dismantling the Affordable Care Act, according to House Majority Leader Kevin McCarthy.

This is the first time the Republican-led House of Representatives has targeted specific rules since convening on Jan. 3. Earlier this month it passed bills to limit regulatory agencies and Republican President Donald Trump is cutting regulation through executive orders.

Under the law, Congress can use simple majority votes to stop recent regulations in their tracks. Agencies cannot create a new rule to replace any part of an overturned regulation. Timing in the law means any rules enacted in the final months of Obama's administration are eligible for axing.

The law has been used effectively only once, in 2001. Both sides consider this week a test of its powers.

On Tuesday the Rules Committee will send two more regulations to the full chamber, which is expected to vote to kill all five on Wednesday and then hand them off to the Senate.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Senate Republicans on Monday prepared to act quickly after the House vote, with Majority Leader Mitch McConnell and Environment Committee Chairman James Inhofe introducing companion measures on the stream and extraction rules.

The Interior Department took years to craft the stream rule, hoping to prevent coal-mining waste from contaminating water sources in areas near mountain-top removal mining sites. Critics say it is unnecessary and goes too far, wiping out jobs and usurping state rights.

The extraction rule is required in the 2010 Dodd-Frank Wall Street reform law, but was only approved six years later this summer. It requires companies such as Exxon Mobil Corp (N:XOM) to state publicly how much they pay governments in taxes and other fees. Opponents say it hurts U.S. energy companies, while human rights groups argue it reduces corruption.

Meanwhile, the gun rule requires extra scrutiny of purchasers who receive Social Security benefits and also have a history of mental illness.

Liberal groups are outraged by the rollbacks, but their traditional allies, Democratic lawmakers, have limited means to stop them in the Republican-dominated Congress.

Those on the Rules Committee said important protections were being rushed to the chopping block and pleaded for hearings on the regulations, to no avail.

This week House Democrats and activists are planning to rally the public, hoping to persuade Republicans to vote no. Senate Democrats cannot filibuster the measures but congressional aides expect them to slow the process by taking the full five hours they are allowed to speak against each measure on the chamber's floor.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.