[Senate Hearing 113-562]
[From the U.S. Government Publishing Office]
S. Hrg. 113-562
THE NOMINATION OF
LISA AFUA SERWAH MENSAH,
OF MARYLAND,
TO BE UNDER SECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT
=======================================================================
HEARING
before the
COMMITTEE ON AGRICULTURE,
NUTRITION AND FORESTRY
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
SEPTEMBER 10, 2014
__________
Printed for the use of the
Committee on Agriculture, Nutrition and Forestry
Available via the World Wide Web: http://www.fdsys.gov/
______
U.S. GOVERNMENT PUBLISHING OFFICE
93-033 PDF WASHINGTON : 2015
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COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY
DEBBIE STABENOW, Michigan, Chairwoman
PATRICK J. LEAHY, Vermont THAD COCHRAN, Mississippi
TOM HARKIN, Iowa MITCH McCONNELL, Kentucky
SHERROD BROWN, OHIO PAT ROBERTS, Kansas
AMY KLOBUCHAR, MINNESOTA SAXBY CHAMBLISS, Georgia
MICHAEL BENNET, COLORADO JOHN BOOZMAN, Arkansas
KIRSTEN GILLIBRAND, NEW YORK JOHN HOEVEN, North Dakota
JOE DONNELLY, INDIANA MIKE JOHANNS, Nebraska
HEIDI HEITKAMP, NORTH DAKOTA CHARLES E. GRASSLEY, Iowa
ROBERT P. CASEY, Jr., PENNSYLVANIA JOHN THUNE, South Dakota
JOHN WALSH, MONTANA
Christopher J. Adamo, Majority Staff Director
Jonathan J. Cordone, Majority Chief Counsel
Jessica L. Williams, Chief Clerk
Thomas Allen Hawks, Minority Staff Director
Anne C. Hazlett, Minority Chief Counsel and Senior Advisor
(ii)
C O N T E N T S
----------
Page
Hearing(s):
Nomination of Lisa Afua Serwah Mensah, of Maryland, to be Under
Secretary of Agriculture for Rural Development................. 1
----------
Wednesday, September 10, 2014
STATEMENTS PRESENTED BY SENATORS
Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan,
Chairwoman, Committee on Agriculture, Nutrition and Forestry... 1
Cochran, Hon. Thad, U.S. Senator from the State of Mississippi... 2
Panel I
Mensah, Lisa Afua Serwah, of Maryland, to be Under Secretary of
Agriculture for Rural Development.............................. 3
----------
APPENDIX
Prepared Statements:
Thune, Hon. John............................................. 18
Mensah, Lisa Afua Serwah..................................... 20
Document(s) Submitted for the Record:
Public 5 day letter, Committee Questionnaire and Office of
Government Ethics Executive Branch Personnel Public
Financial Disclosure Report filed by Lisa Afua Serwah
Mensah..................................................... 24-40
Question and Answer:
Mensah, Lisa Afua Serwah:
Written response to questions from Hon. Debbie Stabenow...... 42
Written response to questions from Hon. Thad Cochran......... 43
Written response to questions from Hon. Heidi Heitkamp....... 44
Written response to questions from Hon. John Thune........... 46
NOMINATION OF
LISA AFUA SERWAH MENSAH,
OF MARYLAND,
TO BE UNDERSECRETARY OF
AGRICULTURE FOR RURAL DEVELOPMENT
----------
Wednesday, September 10, 2014
United States Senate,
Committee on Agriculture, Nutrition and Forestry,
Washington, DC
The committee met, pursuant to notice, at 10:05 a.m., in
room 328A, Russell Senate Office Building, Hon. Debbie
Stabenow, Chairwoman of the committee, presiding.
Present or submitting a statement: Senators Stabenow,
Leahy, Donnelly, Walsh, Cochran, Boozman, and Hoeven.
STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE
OF MICHIGAN, CHAIRWOMAN, COMMITTEE ON AGRICULTURE, NUTRITION
AND FORESTRY
Chairwoman Stabenow. Well, good morning. The Senate
Committee on Agriculture, Nutrition and Forestry will come
to order. Senator Cochran is on his way and will be joining us
shortly, and so, welcome.
We are here today to consider the nomination of Lisa Mensah
to be the next Under Secretary of Rural Development at the
Department of Agriculture, a really important role that we all
care very much about, so we thank you for being here. I am glad
to see you have family and friends with you, as well. When we
turn to you, you certainly are welcome to introduce them. We
are glad to have them here supporting you, as well.
Preserving our rural way of life is near and dear to my
heart, as I know my colleagues of the committee care very much
about this particular part of USDA. Having grown up in Northern
Michigan in the small community of Clare, I know it is
important that we provide small towns across the country the
tools they need to grow and prosper.
The unique challenges that rural America faces when it
comes to creating economic opportunity are real. According to a
report issued by USDA's Economic Research Service, between 2011
and 2013, net job growth in rural areas was near zero, while
employment rates in metropolitan areas grew at an annual rate
of 1.4 percent.
One of the most significant challenges facing rural America
is aging infrastructure. Without a safe drinking water supply,
adequate housing, or affordable broadband Internet service, it
is difficult for small businesses to recruit new employees and
compete in the global economy. You have been nominated to
ensure that the resources that this committee provided for
infrastructure improvements in the 2014 farm bill will be
invested effectively to help these communities take advantage
of new opportunities for growth and development.
I believe that the new energy economy is an exciting
opportunity for rural America to develop new markets and create
jobs. One area that this committee highlighted in June is that
of bio-based manufacturing. In addition to a hearing that
focused on the new support for bio-based manufacturing included
in the farm bill, we hosted an event that featured innovative
products developed by more than 30 companies around the country
with homegrown materials. Implementing some of the new farm
bill initiatives in support of this growing industry will be
part of your responsibilities, if you are confirmed.
The new energy economy is so exciting, in part, because it
offers long-term economic development opportunities for rural
America. The new farm bill provides incentives for leaders in
these small towns to think strategically about long-term
economic development for their communities. If these leaders
collaborate on regional economic development strategies based
on the unique characteristics and strengths of their
communities, we will see the creation of job opportunities that
will more likely stay at home in those communities. Helping
local leaders pursue initiatives that lead to long-term
community and economic development is an important
responsibility for USDA as it implements Rural Development
programs.
I appreciate very much having the opportunity to speak with
you, Ms. Mensah, and learn more about your background. I look
forward to your testimony and your answers to questions of the
committee members today. If confirmed, I fully expect you to
work with this committee and Congress in helping to implement
policies that will help rural America grow and prosper.
It is now my pleasure to turn to my friend and
distinguished Ranking Member, Senator Cochran.
STATEMENT OF HON. THAD COCHRAN, U.S. SENATOR FROM THE STATE OF
MISSISSIPPI
Senator Cochran. Thank you, Madam Chairman. Thank you for
your convening of this timely hearing for the nominee for Under
Secretary of Rural Development at the Department of
Agriculture.
We welcome the nominee to the hearing and thank her for her
cooperation with the committee and giving us information and
requests for any statements that she might make about her views
about the responsibilities of the office for which she has been
nominated. We look forward to the questions and answers at this
hearing and expecting that they will be helpful to our
understanding of her qualifications for service in this
important position.
Chairwoman Stabenow. Thank you very much, Senator Cochran.
I now have the pleasure of introducing our nominee, Ms.
Lisa Mensah, who has served as Executive Director of the
Initiative on Financial Security at the Aspen Institute since
2002. Prior to joining the Aspen Institute, Ms. Mensah held a
variety of positions at the Ford Foundation, including Deputy
Director of the Economic Development Unit and Deputy Director
of the Rural Poverty and Resources Program. She has also worked
at Citibank for a time after receiving her Bachelor's degree
from Harvard University and a Master's degree from Johns
Hopkins University.
We are very pleased to have you with us today. We welcome
your testimony. As you know, we ask for five minutes of verbal
testimony. We welcome any written additional information you
would like to leave with the committee, but we look forward to
your testimony, so please proceed.
TESTIMONY OF LISA AFUA SERWAH MENSAH, OF MARYLAND, NOMINATED TO
BE UNDER SECRETARY OF AGRICULTURE FOR RURAL DEVELOPMENT
Ms. Mensah. Thank you, Madam Chairwoman and Ranking Member
Cochran. Thank you for this opportunity to appear before you
today as President Obama's nominee for Under Secretary of Rural
Development. If confirmed, I look forward to helping the
President and Secretary Vilsack build on the accomplishments of
this administration by working to strengthen rural areas and
create sustainable growth for future generations.
I am joined today by my husband, Barry Ford, and my two
children, Rebecca and Andrew.
Chairwoman Stabenow. We welcome them to stand up so that we
could----
Ms. Mensah. This is my husband, and also my father and
brother.
[Applause.]
Ms. Mensah. My father, Kwaku Mensah, and brother, David.
Chairwoman Stabenow. Your father, your brother, your
husband----
Ms. Mensah. My two children.
Chairwoman Stabenow. --your son, your daughter. You have
the full----
Ms. Mensah. I brought everybody.
[Laughter.]
Chairwoman Stabenow. --family with you. That is wonderful.
Ms. Mensah. Thank you. I also have several lifelong friends
and colleagues, and they truly bear witness to the significance
of this moment in my life. My journey to this room is proof
that the American dream of opportunity is alive and well.
I am the daughter of an immigrant from Ghana and of a farm
girl from Iowa and Oregon who raised their three children with
a simple guiding principle, that our earthly work was to leave
the world a better place. They also believed in very hard work,
and for the Mensah children, this meant summers picking
strawberries to earn money. From the day school let out, we
were up at 5:00 a.m. to meet the bus to take us to the fields.
Being a strawberry picker means freezing mornings, hot
afternoons, dirty clothes, and berry-stained hands. My parents
assured us that picking would not kill us and that we would
understand the value of a dollar, and in this, they were right.
It took years for me to enjoy eating strawberries again----
[Laughter.]
Ms. Mensah. --but this early experience ingrained in me a
sense that hard work is rewarded, that goals can be reached,
and that if I could handle Oregon strawberry fields, I could
handle just about anything.
I would like to give you a little more insight into my
background and how it does prepare me to serve as Under
Secretary for Rural Development. I went on from the strawberry
fields to earn degrees at Harvard and Johns Hopkins, and then a
professional life at Citibank, at the Ford Foundation, at the
Aspen Institute. In all of this, I have focused on how credit,
investments, savings, and ownership can transform opportunity,
especially for America's rural poor.
At Citibank, I learned the craft of credit, how to analyze
the strength of a commercial venture. I took these skills to
the Ford Foundation, where I was responsible for the country's
largest philanthropic grant and loan portfolio of investments
in rural America.
I have pored over the financial statements of lenders
trying to make a difference. I have sat at the workplaces of
small businesses struggling to find new markets and create
jobs. I have seen the struggle to bring development to areas
that traditional markets neglect. I saw then what remains true
today, that there is a vital role for capital, for
partnerships, and for infrastructure investments that do not
replace private capital, but can spark private capital markets.
I truly share Secretary Vilsack's priority of building new
partnerships to leverage the strengths of rural areas, to build
new markets, to increase regional competitiveness, and to
create more prosperous and sustainable communities.
Today, we know that rural areas suffer from stalled job
growth, from declining populations, and the highest poverty
rates we have seen in 30 years. These challenges make growth
and prosperity more difficult, but they also require that we do
just that.
As I see when I visit my father's country of Ghana, when
countries cannot make rural infrastructure work, they not only
impede the growth of rural people and places, they hold back
the whole nation. I am convinced that the potential exists for
rural America's economy to continue to grow and compete
globally and I am so eager to lead a mission area whose job it
is to help rural communities find a path to prosperity.
Taken together, the three Rural Development agencies--that
is Rural Development Business and Cooperative Services, the
Rural Housing Service, and the Rural Utilities Service--they
have a loan portfolio of over $200 billion in direct loans and
guarantees. It is a powerful portfolio that must be managed
well, both to ensure repayment and to ensure that we look for
wise and efficient investments.
If confirmed, I look forward to returning to this committee
to discuss how the USDA is using the program authority you
provide to do even more. If confirmed, I will be honored to
work alongside the nearly 5,000 employees who serve in this
mission area.
As I conclude, I am reminded of my first trip to
Washington, DC. In 1979, I came here as one of two student
leaders from Oregon sponsored by the William Randolph Hearst
Program. I met with Senators then Hatfield and Packwood, and I
was deeply moved by their belief that I should prepare myself
to take the torch of leadership. Most of the time, that has
been a private torch, but I am so honored to be sitting here
today, prepared to assume the responsibility of public service.
I am humbled to be before your committee. You have such a
history of bipartisanship. Throughout my history, I have made a
practice of listening to all and searching for solutions. At
Aspen, I have built one of the country's most bipartisan
tables, and if confirmed, I will keep my door open, I will stay
responsive to you who hold the privilege of representing the
citizens of your States.
I hope I have provided you with some insight on how I might
contribute to building a prosperous rural America. I look
forward to your questions. Thank you.
[The prepared statement of Ms. Mensah can be found on page
20 in the appendix.]
Chairwoman Stabenow. Well, thank you very much.
Before proceeding with questions, we have one other
official thing we need to do. We need to ask you to rise and
ask you a question. Do you agree to appear before any duly
constituted committee of the United States Congress, if asked?
Ms. Mensah. Yes.
Chairwoman Stabenow. Yes. Thank you very much.
Well, given your impressive background, Ms. Mensah, in
dealing with economic development and rural poverty and so on,
what do you see as the greatest economic challenges facing
rural communities, and as Under Secretary, what would you do to
address the challenges that you see are there?
Ms. Mensah. Thank you, Senator. For me, the challenge of
rural America is to ignite the power of rural America, and what
I am so excited about are the three sets of tools that this
mission area has. Yes, we have challenges, but to be able to
invest in housing and in job-growing businesses and also in
critical infrastructure, to me, speaks directly to the
challenges of growth and prosperity for all areas. That is what
I am very excited about in this portfolio.
Chairwoman Stabenow. When you look broadly at job
creation--I mentioned the energy title, which crosses a number
of different areas in USDA, but certainly in terms of jobs, we
put a lot of emphasis in the farm bill on creating
opportunities for loans and loan guarantees and opportunities
to really expand upon the bio economy through the energy title
and so on. I am wondering, from your perspective, how would
you, as someone who is coming from a grant-making organization,
address getting the dollars out for these kinds of projects,
investing them both quickly--we obviously want to stimulate the
economy as quickly as possible, but, of course, we want to be
careful stewards of the taxpayers' dollars, as well--I wonder
if you have looked at some of the opportunities not only in
biofuels, but in bio-based manufacturing, the ability to use
agricultural materials and products to be able to create new
opportunities and jobs.
Ms. Mensah. Senator, thank you for your interest in that
area and for the authority that has already been established in
this farm bill. I am very excited about the opportunities in
the bio economy, and it feels to me like a new chapter in Rural
Development. When I was at the Ford Foundation, I did not just
do grants. I did loans. Some of those were in your State, in
the Upper Peninsula of Michigan. I remember what was so
critical to getting loans out was very smart partners. We had
institutions like Northern Initiatives that were creative loan
funds who could go into small towns, find partners. That is
what I think speed takes. It takes people who are already on
the ground, prepared to use the funds that are precious and
wise stewards of those funds. I very much look forward to this
new chapter in rural America.
Chairwoman Stabenow. Well, thank you. I agree with you.
Northern Initiatives is wonderful in the Upper Peninsula of
Michigan and it really is about partners, I think. When you
look at leveraging resources, again, from your perspective,
coming from the private and nonprofit sector, and considering
your background with Ford and so on, I think you really bring a
fresh perspective to this. What new opportunities do you see
for the USDA to help communities maximize the impact of
resources and leverage those kinds of partnerships?
Ms. Mensah. Well, I am very excited to be joining the
Department at this moment. Partnerships has been a word that I
know has been a big priority of Secretary Vilsack. What I
really feel is that we are poised to take off. This farm bill
was passed. There is time now to really create serious
partnerships, and I feel like I am walking into a set of
skilled and talented staff who really understand those
portfolios and I will be able to help them find the other
partners on the private side who can help take this work even
further.
Chairwoman Stabenow. What do you think we could do to
leverage more private foundation dollars? I mean, obviously, we
are looking at that throughout our efforts in agriculture. We
have a new public-private research foundation where we are
putting in public dollars, but also activating the foundation
with private dollars, as well. In other areas, I mean, how do
you see us, again, from your perspective, playing an
intermediary role between private foundations and rural
communities? What do you think you could do?
Ms. Mensah. Well, I appreciate the question very much. I
think they need to know we are here. I think--I also think
there are a lot of foundations that focus on core larger
challenges--youth, the challenges of education, the challenges
of growth. They might not always have a rural lens, but they
will need to know we are here. I am excited about calling folks
up, bringing them in. I do not plan to stop talking to my
friends in that sector. I think they are going to be very
excited. The key for a foundation is leverage. A foundation
will never be as big as the U.S. Government. Their success is
dependent, also, on a partnership with this work.
Chairwoman Stabenow. I appreciate that very much. I think
it is really true. When we look at--there is very important
work being done in urban areas. At the same time, though, when
we look at poverty and the needs of people, there is not always
a focus or understanding of rural communities. I think bringing
that voice and focus could help our communities all across the
country. Thank you very much.
Senator Cochran.
Senator Cochran. Madam Chair, thank you.
Madam Secretary--I am moved to call you Madam Secretary----
[Laughter.]
Senator Cochran. Let me, again, congratulate you on your
nomination and wonder whether or not you can identify now,
after reviewing the jurisdictional responsibilities of the
office you have been nominated to fill, what are the highest
priorities of this administration in terms of stimulating
development and stimulating the availability of education,
health care, services that really would do a lot to help
improve the prospects for individual residents, citizens,
businesses in rural America to prosper and succeed.
Ms. Mensah. Yeah. Thank you, Senator Cochran, for your--for
raising that issue. I think, I have learned so much in your
State with key partners, like HOPE Enterprise, and I think you
have raised the key issues of education and health and true
community facilities.
What is exciting to me about the priorities of this
administration is the ability to work across lines. Yes, jobs
are important. So are the infrastructure pieces of those jobs,
and so are the housing pieces of those jobs. What I am excited
about is a strategy that is not just one silver bullet, but
several things together, and that, to me, is a very exciting
piece and I look forward to working on this.
Senator Cochran. Thank you, Madam Chair.
Chairwoman Stabenow. Thank you very much.
I now turn to our distinguished-most Senator Leahy. I was
thinking this morning, as I am sitting here between two former
Chairmen who have these wonderful portraits on the wall, so we
not only get to see them in person, we get to see them on the
wall, and I am surrounded by former Chairmen.
[Laughter.]
Senator Leahy. I could not help but notice----
Chairwoman Stabenow. Senator Leahy.
Senator Leahy. --Madam Chair, that all but one of them have
a head of hair.
[Laughter.]
Senator Leahy. But----
Chairwoman Stabenow. Senator Leahy.
Senator Leahy. But, there are Senator Harkin, Senator
Chambliss, and, of course, Senator Cochran and I still serve
here, and I think the reason we do is because this committee
means a lot to us and as much as it does. I compliment you and
everybody else, again, on the farm bill, Madam Chair.
Back here a couple of weeks ago, Secretary Vilsack was in
Vermont, and Ms. Mensah, I told him of our meeting that we had
just before the recess and how much that meant to me, and
coming from probably the most rural State, or certainly one of
the most rural States in the country. Our largest city is
38,000 people. What you and I discussed about REAP Zones and
those things, very, very important to us----
Ms. Mensah. Yeah.
Senator Leahy. Last week, in a speech about the state of
broadband competition, the SEC Chairman, Tom Wheeler, noted
that Americans living in urban areas are more than three times
more likely to have access to next-generation broadband
networks than those living in rural areas. I included in the
farm bill a program to deploy ultra-high-speed networks in
rural areas.
I remember my grandparents telling me about how excited
they were when telephones came to rural America. Something like
that, we take for granted. We have to ensure that we have this
broadband high-speed Internet, because otherwise, you are not
going to bring the jobs into rural America that we want to, to
say nothing about just the consumer interest in having this.
My question is this. How will the Rural Gigabit Pilot
Program advance USDA's efforts to close the broadband divide
between urban and rural America?
Ms. Mensah. Thank you, Senator Leahy, and for your
commitment, your work on these issues. I am very excited about
the authorities in this portfolio around rural broadband. Rural
broadband is crucial to the kind of jobs, the growth, the
ability for people to live and work in rural areas. It is the
future. I am excited about being able to work on this, and if
confirmed, I look forward to coming back and talking with you
about how we can work even faster.
Senator Leahy. Will you work for funding for that in the
Department's budget?
Ms. Mensah. Absolutely.
Senator Leahy. Thank you. A lot of agencies have faced
extremely difficult budget restraints, and there have been a
lot of cuts on many important programs. I worry that in USDA,
the cuts have disproportionately impacted Rural Development--a
billion dollars in proposed cuts of loans and grants for
business development, for example, water and waste disposal,
rural housing, since 2010. They have been cut about 35 percent.
I hope that you will work for funds for Rural Development. I am
a member of the Appropriations Committee. I am eager to work
with you. But, I think of the lack of funding. We cannot rehab
affordable housing. We cannot make home ownership a reality in
rural America with all that means.
I should probably ask you this. What do you envision as a
housing strategy for rural America?
Ms. Mensah. Thank you, Senator Leahy, and I am very excited
that this portfolio has a strong emphasis on housing. I believe
that the housing needs need--what I know is that housing is
critical at all levels, for single family, for multi-family,
all different income levels. I worked at Aspen on the
centrality of home. It is also people's most important asset.
We will not be able to close a wealth gap if we cannot invest
in housing. You will have in me someone who will always
champion the interest of this, and in keeping the distinction.
Rural has challenges and special needs, and I am so happy that
this position has a focus on rural housing.
Senator Leahy. Well, thank you. I think that not only is it
your most important asset for most people, but it also sets a
sense of community if people have their own homes.
I have other questions which I will submit for the record
and I would appreciate your answering. But, I also appreciate
very much the meeting we had prior, and I suspect we are going
to have some more. Thank you.
Ms. Mensah. I look forward to that. Thank you.
Chairwoman Stabenow. Thank you very much.
Senator Boozman, welcome. Good morning.
Senator Boozman. Thank you, Madam Chair, as always.
Congratulations. This is certainly a great honor to be
nominated. You have had a distinguished career, and it is a
good sign when Senator Cochran calls you Madam Secretary.
[Laughter.]
Senator Boozman. I would like to ask you about an issue
that we have had that affects Arkansas. In early August, we
learned that in Arkansas, USDA--the State director determined
that several rural communities in the State would no longer be
eligible for USDA rural housing programs because their
communities were not rural in character. This was very
concerning to our Arkansas community, since they were notified
less than two months before the reclassification was scheduled
to take effect.
While I was pleased to hear from USDA that they will hold
off on implementing any changes for eligibility based on rural
in character criteria until September 30, 2015, I would like to
ensure that there is ample time for public comment, also
commitment to seeing if we can get this worked out, and
consideration before final designations are issued. Can you
address that and comment regarding that, and perhaps get a
commitment from you that you will look into that and see if you
can be of help.
Ms. Mensah. Thank you, Senator Boozman, for your question
and for your obvious concern for the issues of housing. I have
also traveled in your State with Enterprise HOPE and I have
seen the different needs throughout the State. You will have in
me, if confirmed, someone who is very committed to these issues
of housing. Absolutely, I look forward to learning more about
the specifics of the issue that you raise and to working with
you for any of those concerns.
Senator Boozman. When I am back in Arkansas, the number one
thing on the minds of Arkansans is jobs, jobs, jobs. If you do
not have a job, if you cannot support your family, all of these
other things are really pretty insignificant. Often, our rural
communities fall victim to higher levels of unemployment due to
a lack of resources and community development. As Under
Secretary of Agriculture for Rural Development, what steps
would you take to ensure that our rural communities are
receiving the necessary resources to grow their local economies
and reduce unemployment?
Ms. Mensah. Thank you. This is an area of my deep
professional love and passion, which is how do all communities
prosper? How do people prosper? How do we bring jobs to places
that markets do not go? I am excited about this portfolio. I am
excited about the tools of rural business development. I look
forward to making sure that every community has an ability to
compete for these funds and to working with you, if confirmed.
Senator Boozman. I think in rural America, there is real
concern about the perception and the actuality of overreaching
regulation and just overreach in general. Could you speak to
that, and then also share your issues that, if confirmed, I
would really like to know what your number one priority would
be as far as what do you want to get done? Where do you want
to, however many years from now, step back and say, this is
what my priority was and this is what we accomplished?
Ms. Mensah. Both are deep questions. On regulation, I will
commit to you that we will run a loan portfolio that is
dedicated to being both efficient and making wise investments.
On priorities, I said one thing, which it would be my job,
first, to listen very, very hard to the people who wake up
every morning and do their job at the Rural Development
mission. I am obviously coming from the outside. I want to hear
first. But, I think the critical moment, having already passed
a farm bill, I think the critical priority for us is on
implementing some of the powerful authorities that exist. What
I want to see is some flourishing of the jobs and
infrastructure and housing opportunities.
Senator Boozman. Very good. Well, we hope to have you back
in Arkansas.
Ms. Mensah. Thank you, Senator.
Senator Boozman. Thank you, Madam Chair.
Chairwoman Stabenow. Absolutely. Thank you very much.
Senator Donnelly from the great State of Indiana.
Senator Donnelly. Thank you, Madam Chair, and
congratulations. We are very honored to have you here.
I wanted to ask you about just a specific Indiana question
first, and that is that we have a town in one of our counties,
Morgan County--the town is Waverly--and they are looking to
take advantage of the REDLG Program, the Rural Economic
Development Loan and Grant Program. While their community is
currently eligible to take advantage of many Rural Development
programs, USDA has not yet completed the rulemaking to allow
Waverly to be part of this program. I was hoping that you could
commit to finish the rulemaking in a timely manner for our
town.
Ms. Mensah. Thank you, Senator. What I can say is that the
business loan programs, I will be--that is an area of deep
passion and experience for me----
Senator Donnelly. Okay.
Ms. Mensah. --and I have sat with those programs, know the
regs, and I look forward--I will commit to you to coming back
to you and working with you to resolve these issues.
Senator Donnelly. We will look forward to having that
conversation.
One of the things we have done in our State is we have a--
my predecessor, whose picture is also on the wall, Senator
Lugar----
[Laughter.]
Senator Donnelly. There is a program at Indiana State
University in Terra Haute named the Lugar Rural Health
Initiative and we have a number of counties in our State now
that do not have OB/GYN services. I think it has become an
increasing challenge for a lot of our rural communities in the
health area, and we are trying to develop more of a pipeline
for primary doctors through that program and others. I was
wondering what initiatives you are looking at to make sure that
the kind of health services we hope for in all parts of our
country can be extended to the rural areas.
Ms. Mensah. Thank you, Senator, and for raising a very
critical issue of rural health and of primary physicians. What
I know is that this is a portfolio that actually has an ability
to invest both in the facilities and in the job creating
pieces, and I think both are related to rural health. What I
look forward to is--continuing to hear these priorities, I am
deeply aware of them. I know you cannot have an OB/GYN by
telemedicine. I appreciate your lifting this concern and I look
forward to working with you on this.
Senator Donnelly. A lot of the young potential doctors come
from some of these rural communities. They would like to go
home if they can, and we have to make sure we have the
opportunity for them to do that. That brings me to my next
point, which is that for a lot of our rural communities, our
young people--and this has happened for a long time--our young
people, when they graduate and they go through college and they
look, they want to come home, but there is no opportunity for
them to come home to, and that goes directly into your title of
Rural Development.
Ms. Mensah. Yeah.
Senator Donnelly. Having the broadband there and having job
opportunities there, having the knowledge that if I raise my
family here, we will have good health care here. One of my
passions is that we want everybody to have the freedom of
choice to go wherever they want to go. That is the American
dream. But, at the same time, if you want to go home to your
rural community, that you have the chance to do that, that
there is opportunity there as opposed to saying, well, I went
to the city simply because there was nothing I could do back
home.
Ms. Mensah. Right.
Senator Donnelly. I think that is really a cornerstone of
your mission, is how do we make it so that our children can go
home if they want to, that the choice is not just to go to the
city, but to be able to run that business right there or go to
a good job right in that community, and I was wondering how you
see that as part of your mission.
Ms. Mensah. Senator, that was beautifully stated. I share
your passion. As a mother of two teenagers, I think every day
about the future.
Senator Donnelly. Good luck with that, too, by the way.
[Laughter.]
Ms. Mensah. I appreciate it. I appreciate it.
Senator Donnelly. I have been there, done that.
[Laughter.]
Ms. Mensah. You know, if we cannot get this right, this is
what I meant when I spoke passionately about not giving up on
rural areas, and I do believe the tools of broadband and the
tools of new growth and seeing that there is something new. The
bio-economy kinds of investments, to me, are a really new page
in Rural Development and that is exciting to be part of. I
share the same dream and I look forward to working on these, if
confirmed.
Senator Donnelly. Well, thank you. We look forward to
working with you.
Ms. Mensah. Thank you.
Chairwoman Stabenow. Great. Thanks very much.
Senator Walsh from the great State of Montana.
Senator Walsh. Thank you, Madam Chair.
Ms. Mensah, congratulations on your nomination and thank
you for being here.
You know, Montana is one of the most rural States in the
country. Just a quarter of our population lives in urban areas
and 30 percent live in small cities, along with another 44
percent live in rural areas. Living in a rural area in Montana
puts you much further from urban centers than would be the case
in States outside of the West. Our large, open spaces are
renowned around the world. Big Sky Country is breathtaking. I
know we talked and you said you have been to Eastern Montana
and Billings, so I know you have some understanding of that.
Montana's rural nature is part of our culture and we
cherish it and we want to keep it that way, but it also
presents unique challenges, including economic development,
infrastructure, and transportation. USDA's Rural Development
mission area has a variety of tools designed to spur economic
development in places like Montana, rural States. I have heard
time and time again how well these programs are working.
For example, a variety of Rural Development programs have
invested in Eastern Montana, where many small towns are booming
due to oil exploration in the Bakken field. In 2013, over 1,500
Montana families purchased homes with Rural Development loans.
Critical water, sewer, and electric infrastructure projects
were funded as well, helping small towns grow and attract new
residents.
But housing infrastructure is only part of the puzzle. For
these small towns to grow, we need to create economic
opportunity. We need more jobs on the ground, and the business
programs at Rural Development will help fill that need.
Just this month, USDA announced a $1.3 million long-term
loan along with local funds that will be used to transform a
run-down park in my hometown of Butte, Montana, into a
neighborhood center. This center will provide important local
services, such as job training and housing assistance. Last
month, Montana's State Director Tony Preite, announced three
new grants under the Rural Business Enterprise Grants program
to provide funding for businesses in the Bitterroot Valley.
I could list many more instances where Rural Development
programs have helped support jobs in Montana, but the point is
that these programs are critical to support jobs and economic
development in rural areas.
Directly related to the state of the economy is the issue
of poverty. Over 15 percent of Montanans live in poverty, and
that number is even higher for children. We must do more to
tackle this issue across the country and I look forward to
hearing from you how we can better address poverty in rural
areas.
I just have a couple of questions I would like to ask.
First, you have many years of experience working on both rural
issues and poverty at the Ford Foundation and the Aspen
Institute. How will that experience translate at the USDA?
Ms. Mensah. Thank you, Senator, both for your comments of
hope about this division. I think my experience on poverty and
on investing speaks to the two issues you raised, that we must
have growth to lift all the boats, but even when we get growth,
as we have seen in your State, our work is not done. The three
tools--the business portfolio, the housing portfolio, and the
infrastructure portfolio--to me, these are the key portfolios
and key tools of partnership. If confirmed, I very much look
forward to continuing this work.
Senator Walsh. Okay. Second, I referenced the booming
economy in Eastern Montana. While the economic activity is
welcome, it also brings a major strain on municipal
governments. USDA-RD programs are an opportunity to fill that
gap. As Under Secretary, what would be your view of Rural
Development's mission and how will you utilize these programs
to meet the needs of communities such as those in Eastern
Montana?
Ms. Mensah. Thank you, Senator. Also, just to--for me, the
power of a growing economy is seeing how you keep all things
moving, and this portfolio's tools to be able to help areas
like yours with critical needs, even in growth, so that it can
really have its impact, is a powerful part of this portfolio. I
look forward very much to working with you and in your State,
if confirmed.
Senator Walsh. Okay. One final question. You know, again,
rural areas in Montana lag behind in broadband development.
USDA already has programs to support broadband. What is your
vision for these programs, and will you target them to areas
that are truly underserved, such as Reservations in Montana and
the Eastern part of the State?
Ms. Mensah. Thank you, Senator, and thank you for raising
the needs of Native American Reservations, too. We have spoken
about how important I view broadband and this new area. I think
this is a critical part of jobs, growth, and the future. I look
forward to help this mission reach all areas with these
services.
Senator Walsh. Okay. Thank you.
Ms. Mensah. Thank you.
Senator Walsh. Thank you, Madam Chair.
Chairwoman Stabenow. Thank you very much.
Senator Hoeven, great State of North Dakota.
Senator Hoeven. Thank you, Madam Chairman and Ranking
Member, and thanks for holding this hearing today.
Ms. Mensah, I want to start by thanking you for coming by
and visiting with me prior to this hearing today. I appreciate
it and certainly look forward to working with you.
In our State, we have tremendous growth going on right now.
I think we are the fastest growing State in the country, and we
have a lot of growth in energy, certainly oil and gas in the
Western part of the State, renewables, wind, biofuels, that
kind of thing in the Central and Eastern part, but then, also,
in some of the other areas too, Ag processing and some of the
life sciences, technology in the Red River Valley, aerospace.
Our challenge is our growth, and one of the biggest challenges
that comes with that is housing.
We need housing, and we particularly need housing in the
energy patch in the West. In the rural areas, that is a huge
challenge. I mean, it is a challenge all over the State, and it
is a challenge both because of the down payment--young people
come and they can make a great wage now. Driving a track, I
think they are over $100,000. But, they do not have a down
payment to qualify for a loan. Then he other thing is, the
housing is so expensive, particularly in the rural areas and
the smaller communities.
You have got a financial background.
Ms. Mensah. Yeah.
Senator Hoeven. You have got some great financing programs.
Tell me how you are going to come to North Dakota and really
help us get these young people into homes. We are building a
lot of apartments, but the apartment rent is pretty high, and
what we really need is single family homes. How can you help
us?
Ms. Mensah. Yeah. Thank you, Senator, and thank you for
reminding us that even in growth, we have got challenges.
Senator Hoeven. Right on.
Ms. Mensah. My experience, particularly at Aspen, was
working with financial sector leaders--some are in this room
right now--to really work on the American challenge of savings.
I think that in these years of growth, the key, again, is
partnerships with our financial institutions so that people can
start to save to be prepared for these down payments, knowing
that when they do their part, the other end of the--the other
hand is there. This portfolio has a wonderful ability to invest
in housing. I am excited about that. I am excited in the single
family and multi-family opportunities. If confirmed, I look
very much forward to working with you.
Senator Hoeven. Would you be willing to come out to North
Dakota and help convene lenders, both in terms of trying to
find that down stroke help, people find that down stroke, but
then also utilizing your loan guarantee programs, which are
very good, with our lenders to see if we cannot get more of
this housing need met?
Ms. Mensah. Senator, if confirmed, I am going to be talking
a lot to lenders, and I think they need the USDA to say, we are
here to be partners. I very much look forward to working with
private sector leaders to identify and champion the causes of
rural America.
Senator Hoeven. You would be happy to come to our State and
work----
Ms. Mensah. I would be very happy to come to your State.
Senator Hoeven. Good, because, I think, sometimes sitting
down with them and making sure that they can access these
programs easily, efficiently, and well makes a big difference
in terms of getting them used, and I think your background
really lends to that kind of collaborative effort.
Ms. Mensah. Thank you. I believe in collaboration.
Senator Hoeven. Also, and the infrastructure piece, too.
You know, all of the infrastructure needs that go with it,
everything, as Senator Walsh said, from fiber and
communications working through RUS to all the roads, bridges,
schools, everything in that respect, as well. But, again, we
are going to need your leadership and this partnering effort.
Maybe touch just for a minute on some of the infrastructure
programs and your approach there.
Ms. Mensah. My--thank you, Senator, and you really raise
the thing I am excited about this portfolio, which is the
ability to invest both in infrastructure and housing and in the
job creating. For me, the infrastructure is such a key
component, and I am actually very excited to be part of a
portfolio which understands all the needs and has tools, that
we do not just have to come with one tool. Thank you for
raising that, and if confirmed, I look forward to working on
that.
Senator Hoeven. You have programs in water, in wastewater,
telecommunications, housing, as we have mentioned, all of
these, and we are going to give you an opportunity to deploy
them. Your commitment to work with us is much appreciated and
we look forward to it.
Ms. Mensah. I do, too, look forward. Thank you.
Senator Hoeven. Thank you.
Ms. Mensah. Thank you for your questions and your interest.
Chairwoman Stabenow. Well, thank you very much, and I think
it is clear that there is both respect and support for your
nomination, and we look forward to officially having the
opportunity to move your nomination from committee to floor,
and, hopefully, move that as quickly as possible.
I think it is also clear you should expect to be traveling
a lot----
[Laughter.]
Chairwoman Stabenow. --airline tickets. We are going to
give you a tour of the country, looking at rural communities in
all of our States. I agree with Senator Hoeven that nothing
takes the place of being there and talking to people and seeing
what is happening in the States across the country.
We thank you very much. We look forward to working with
you. This is a very, very important position, and I think you
can tell from the interests of the members today, it impacts
every single one of our communities and all of our States.
Any additional questions for the record should be submitted
to the Committee Clerk two business days from today. That is
5:00 p.m. on Friday, September 12.
If there is no further business, the meeting is adjourned.
Ms. Mensah. Thank you.
[Whereupon, at 10:52 a.m., the committee was adjourned.]
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DOCUMENTS SUBMITTED FOR THE RECORD
SEPTEMBER 10, 2014
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QUESTIONS AND ANSWERS
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