The Texas lawmaker, known for his strong free market views, had been considered the presumptive candidate to replace outgoing chairman Rep. Spencer Bachus, R-Ala., who has reached a term limit for the position. Bachus has said he intends to remain on the committee after he steps down as chairman.
Hensarling's nod from the Steering Committee came as part of a full list of recommendations for committee chair slots released by House Speaker John Boehner, R-Ohio.
"Our team will continue focusing on reforms that will grow our economy and create new jobs, and on holding the Obama administration accountable through aggressive oversight of the Executive Branch," Boehner said in a statement. "The House of Representatives is an outpost in Democratic-controlled Washington for the priorities of the American people, and I have every confidence that the chairmen selected today are up to the task of translating those priorities into solutions Americans are counting on to get our economy moving again."
The recommendations will be presented to the full House Republican Conference on Wednesday for ratification.