WASHINGTON, D.C. – Today, the House Small Business Subcommittee on Underserved, Agricultural, and Rural Business Development held a hybrid hearing on “Management Review: Office of Advocacy.”

Subcommittee Ranking Member Claudia Tenney’s opening statement as prepared for delivery:

Thank you, Mr. Chairman.

This morning, as we hold this hearing, small businesses are facing record-high inflation, labor shortages, and supply chain disruptions.

At the same time, the Biden Administration continues reckless spending here in Washington, proposes tax increases on Main Street, and burdens small businesses with an ever-growing number of needless regulations. If there was ever a time for small businesses to have an advocate in Washington, it is now.

The Office of Advocacy is responsible for representing the concerns of small businesses. The Office is also a source of government statistics. It produces research for policymakers and stakeholders and provides comments on behalf of small businesses in the regulatory process.

The Office of Advocacy has consistently shown that small businesses bear a heavier burden from regulations than large businesses. As a New Yorker, I can tell you this is the case as well.

I hear this from small businesses back in my upstate New York district as well. They tell me they lack the staff to comply with the copious amounts of paperwork and onerous technical requirements.

We also know that small businesses operate on thin margins. Time and money spent working to comply with burdensome regulations is time and money taken away from their business operations and revenue. Compliance costs are hitting businesses really hard.

The previous Administration cut unnecessary and overly burdensome regulations. This allowed our entrepreneurs and innovators to do what they do best: create jobs, grow the economy, and serve their communities. Unfortunately, the opposite has been the case with the Biden Administration.

The American Action Forum reports “the Biden Administration capped off its first full year in office with more than $201 billion in regulatory costs and 131 million hours in new annual paperwork.” My office held a digital focus group with 40 local businesses and found 35% of small businesses in my district cannot expand due to government regulations.

The Regulatory Flexibility Act (RFA) requires federal agencies to assess the impact of their proposed and final rules on small businesses.  The Office of Advocacy, specifically the Chief Counsel for Advocacy, is charged with monitoring compliance with the RFA and ensuring small businesses are represented in the rulemaking process.

I must stress the importance of nominating a Chief Counsel for Advocacy, something that Committee Republicans called on President Biden to do over a year ago. The Chief Counsel for Advocacy is the government’s top watchdog. Allowing this office to remain vacant sends the wrong message to American small businesses during such a difficult time. It is crucial that we fill this vital role soon to ensure small businesses are empowered to grow and prosper.

When Washington rushes to solve problems without listening to small employers — they end up creating even more problems for small businesses. As a small business owner, myself, I know the stress of meeting a bottom line, not to mention meeting weekly payroll. I understand the sleepless nights worrying about how to provide for your employees and service your customers.

Small business success is vital for our nation’s economic success.

Mr. Clark, I thank you for your time today and for your advocacy on behalf of small businesses. I look forward to learning more about your work to represent small businesses and ways we can support the Office of Advocacy in making sure their voices are heard.

I look forward to your testimony and I yield back.

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