    [Senate Hearing 115-122]
    [From the U.S. Government Publishing Office]

                                                          S. Hrg. 115-122

    NOMINATIONS OF PAUL COMPTON, ANNA MARIA FARIAS, NEAL RACKLEFF, RICHARD
             ASHOOH, ELIZABETH ERIN WALSH, AND CHRISTOPHER CAMPBELL

    =======================================================================

                                    HEARING

                                   BEFORE THE

                                  COMMITTEE ON
                       BANKING,HOUSING,AND URBAN AFFAIRS
                              UNITED STATES SENATE

                         ONE HUNDRED FIFTEENTH CONGRESS

                                 FIRST SESSION

                                       ON

                              THE NOMINATIONS OF:

    Paul Compton, of Alabama, to be General Counsel, Department of Housing
                             and Urban Development

                                   __________

    Anna Maria Farias, of Texas, to be Assistant Secretary for Fair Housing
       and Equal Opportunity, Department of Housing and Urban Development

                                   __________

       Neal Rackleff, of Texas, to be Assistant Secretary for Community
     Planning and Development, Department of Housing and Urban Development

                                   __________

    Richard Ashooh, of New Hampshire, to be Assistant Secretary for Export
                     Administration, Department of Commerce

                                   __________

      Elizabeth Erin Walsh, of the District of Columbia, to be Assistant
    Secretary for Global Markets and Director General of the United States
             and Foreign Commerical Service, Department of Commerce

                                   __________

      Christopher Campbell, of California, to be Assistant Secretary for
               Financial Institutions, Department of the Treasury

                                   __________

                                 JULY 18, 2017

                                   __________

      Printed for the use of the Committee on Banking, Housing, and Urban
                                        Affairs

    [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

                    Available at: http: //www.govinfo.gov/

                                  __________

                        U.S. GOVERNMENT PUBLISHING OFFICE
    27-854 PDF                  WASHINGTON : 2018

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                COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                          MIKE CRAPO, Idaho, Chairman

    RICHARD C. SHELBY, Alabama           SHERROD BROWN, Ohio
    BOB CORKER, Tennessee                JACK REED, Rhode Island
    PATRICK J. TOOMEY, Pennsylvania      ROBERT MENENDEZ, New Jersey
    DEAN HELLER, Nevada                  JON TESTER, Montana
    TIM SCOTT, South Carolina            MARK R. WARNER, Virginia
    BEN SASSE, Nebraska                  ELIZABETH WARREN, Massachusetts
    TOM COTTON, Arkansas                 HEIDI HEITKAMP, North Dakota
    MIKE ROUNDS, South Dakota            JOE DONNELLY, Indiana
    DAVID PERDUE, Georgia                BRIAN SCHATZ, Hawaii
    THOM TILLIS, North Carolina          CHRIS VAN HOLLEN, Maryland
    JOHN KENNEDY, Louisiana              CATHERINE CORTEZ MASTO, Nevada

                         Gregg Richard, Staff Director

                     Mark Powden, Democratic Staff Director

                          Elad Roisman, Chief Counsel

                     Matt Jones, Professional Staff Member

                Laura Swanson, Democratic Deputy Staff Director

                   Colin McGinnis, Democratic Policy Director

               Beth Cooper, Democratic Professional Staff Member

                           Dawn Ratliff, Chief Clerk

                         Cameron Ricker, Hearing Clerk

                          Shelvin Simmons, IT Director

                              Jim Crowell, Editor

                                      (ii)

                                C O N T E N T S

                                  ----------

                             TUESDAY, JULY 18, 2017

                                                                       Page

    Opening statement of Chairman Crapo..............................     1

    Opening statements, comments, or prepared statements of:
        Senator Brown................................................     2
        Senator Shelby
            Prepared statements......................................    33

                                    WITNESS

    Statement of Orrin G. Hatch, a U.S. Senator from the State of
      Utah...........................................................     4

                                    NOMINEES

    Paul Compton, of Alabama, to be General Counsel, Department of
      Housing and Urban Development..................................     5
        Prepared statement...........................................    33
        Biographical sketch of nominee...............................    34
        Responses to written questions of:
            Senator Brown............................................    98
            Senator Shelby...........................................    99
            Senator Reed.............................................    99
            Senator Menendez.........................................   100
    Anna Maria Farias, of Texas, to be Assistant Secretary for Fair
      Housing and Equal Opportunity, Department of Housing and Urban
      Development....................................................     6
        Prepared statement...........................................    44
        Biographical sketch of nominee...............................    45
        Responses to written questions of:
            Senator Brown............................................   101
            Senator Reed.............................................   102
            Senator Menendez.........................................   102
    Neal Rackleff, of Texas, to be Assistant Secretary for Community
      Planning and Development, Department of Housing and Urban
      Development....................................................     8
        Prepared statement...........................................    59
        Biographical sketch of nominee...............................    61
        Responses to written questions of:
            Senator Brown............................................   104
            Senator Shelby...........................................   105
            Senator Reed.............................................   106
            Senator Menendez.........................................   108
            Senator Heitkamp.........................................   109
    Richard Ashooh, of New Hampshire, to be Assistant Secretary for
      Export Administration, Department of Commerce..................    10
        Prepared statement...........................................    70
        Biographical sketch of nominee...............................    71
        Responses to written questions of:
            Senator Brown............................................   111
            Senator Menendez.........................................   111
    Elizabeth Erin Walsh, of the District of Columbia, to be
      Assistant Secretary for Global Markets and Director General of
      the United States and Foreign Commerical Service, Department of
      Commerce.......................................................    11
        Prepared statement...........................................    84
        Biographical sketch of nominee...............................    86
        Responses to written questions of:
            Senator Brown............................................   112
            Senator Menendez.........................................   112
    Christopher Campbell, of California, to be Assistant Secretary
      for Financial Institutions, Department of the Treasury.........    12
        Prepared statement...........................................    92
        Biographical sketch of nominee...............................    94
        Responses to written questions of:
            Senator Brown............................................   113
            Senator Shelby...........................................   114
            Senator Reed.............................................   114
            Senator Menendez.........................................   115

                  Additional Material Supplied for the Record

    Letters submitted in support of the nomination of Paul Compton...   117
    Letter submitted in support of the nomination of Anna Maria
      Farias.........................................................   122
    Letters submitted in support of the nomination of Neal Rackleff..   123

    NOMINATIONS OF PAUL COMPTON, ANNA MARIA FARIAS, NEAL RACKLEFF, RICHARD
             ASHOOH, ELIZABETH ERIN WALSH, AND CHRISTOPHER CAMPBELL

                                  ----------

                             TUESDAY, JULY 18, 2017

                                           U.S. Senate,
              Committee on Banking, Housing, and Urban Affairs,
                                                        Washington, DC.
        The Committee met at 10:03 a.m., in room SD-538, Dirksen
    Senate Office Building, Hon. Mike Crapo, Chairman of the
    Committee, presiding.

                OPENING STATEMENT OF CHAIRMAN MIKE CRAPO

        Chairman Crapo. This hearing will come to order.
        This morning we will consider the nominations of six
    individuals to serve in key leadership posts within the
    Administration.
    Welcome to all of you, and congratulations on your nomination
    to these important positions. I see friends and family behind
    you today, and we welcome them here as well.
        The nominees before us are: Paul Compton, to be HUD General
    Counsel; Anna Farias, to be HUD Assistant Secretary for Fair
    Housing and Equal Opportunity; Neal Rackleff, to be HUD
    Assistant Secretary for Community Planning and Development; Mr.
    Richard Ashooh, to be Assistant Secretary of Commerce for
    Export Administration; Elizabeth Erin Walsh, to be Assistant
    Secretary of Commerce for Global Markets and Director-General
    of the United States and Foreign Commercial Service; and
    Christopher Campbell, to be Assistant Secretary of the Treasury
    for Financial Institutions.
        Each of these nominees brings diverse life and work
    experience and expertise which will play an important role in
    shaping national policy and advancing economic opportunities
    for Americans.
        Mr. Compton has dedicated his entire 30-year legal career
    to affordable housing and community development and has
    developed an intimate familiarity with HUD's various programs.
    This will enable him, as General Counsel of HUD, to provide
    effective counsel to Secretary Carson and be a valuable
    resource for other HUD program administrators.
        Ms. Farias, who grew up in public housing in Crystal City,
    Texas, later returned to run the Crystal City housing authority
    and, leading by example, lived in one of the units that she
    managed. She also served twice as a HUD Deputy Assistant
    Secretary and has dedicated much of her legal career to
    developing diverse communities and fighting discrimination in
    housing.
        Mr. Rackleff, as well, has on-the-ground community
    development experience, directing the Houston Housing and
    Community Development Department and serving as General Counsel
    for the Housing Authority of the city of Houston.
        Mr. Ashooh served for over two decades in the aerospace
    industry, ensuring the success of programs that protect our
    warfighters, particularly in the electronic warfare space. This
    experience should equip him well to develop policies and
    regulations for the Bureau of Industry and Security which
    handles our Nation's critical export control system.
        Ms. Walsh has had an extensive international career in both
    the public and private sector, including experience at the
    State Department and the United Nations. In her position, she
    would assist United States firms in entering foreign markets as
    well as promote investment into the United States.
        Mr. Campbell serves as Staff Director for the Senate
    Finance Committee, where he has developed a strong reputation
    of policy expertise, and an ability to work with both sides of
    the aisle to get results done. Chris has been instrumental in
    the enactment of significant recent legislative accomplishments
    in trade, health care, customs reform, and tax extenders.
    Senators from both sides of the aisle have looked to Chris for
    his policy insights and strategic know-how.
        As a member of the Finance Committee myself, I know Chris
    well, and I know that he also understands how the Senate and
    the Treasury can work together to enact meaningful reform.
        Passing bipartisan legislation to promote economic growth
    is one of my top priorities in this Congress, and if he is
    confirmed, I look forward to working closely with Chris and the
    other Members of this Committee on getting legislation enacted
    into law.
        I urge all of my colleagues to confirm all six of you
    today. Thank you.
        The Committee will continue its work to push nominations
    through as expeditiously as possible so that our agencies have
    all the personnel they need to tackle the critical issues
    facing our country.
        Once again, congratulations to all of you on your
    nominations to these very important offices, and thank you for
    your willingness to serve.
        Senator Brown.

                   STATEMENT OF SENATOR SHERROD BROWN

        Senator Brown. Thank you, Mr. Chairman, and I second the
    Chairman's comments about thanking you for your willingness to
    serve. We all appreciate that. I am thrilled to see you here
    today. I am glad that this Administration, after months and
    months of bungling nominees and indifference and criticism of
    Federal employees and attacks on the character of lots of
    people, is finally taking its job more seriously and actually
    nominating public servants to carry out the work that you all
    pledge to do and you all want to do. And, again, I thank you
    for putting your private sector jobs aside and private sector
    work to serve the public. Thank you for that.
        Thanks to your families especially because their lives may,
    in fact, change, too, and they will be part of the work you do
    in so many ways. So thank you for that.
        Mr. Chris Campbell has been nominated by President Trump to
    serve as Assistant Secretary for Financial Institutions at the
    Department of Treasury. This position is responsible for
    developing and coordinating the Treasury's policies regarding
    financial institutions.
        My support for Wall Street reform is clear. I am very
    concerned about efforts coming out of the White House to roll
    back important rules we put in place after the financial crisis
    to protect consumers and prevent more taxpayer bailouts. We
    have seen collective amnesia in this town about what happened
    to workers who lost jobs, homeowners who lost homes, renters
    who were evicted, and so many others, seniors and others, who
    lost their lifetime saving. There is a collective amnesia in
    this body and on this Committee from time to time, far too
    often, about what happened.
        I have known Mr. Campbell for several years. I appreciate
    his long history of working together with Senator Crapo and me
    and others, Senator Menendez on this Committee and others who
    serve both on the Finance Committee and now serve on Banking,
    have appreciated your work to foster bipartisanship on the
    Finance Committee. Thank you, Mr. Campbell, for that.
        If confirmed, I hope he will do the same in this role and
    be a strong voice to protect and strengthen the Dodd-Frank
    rules that promote financial stability, promote safety and
    soundness, strong consumer protections, and not just adopt
    industry talking points.
        We will be considering three nominees for the Department of
    Housing and Urban Development today. All of these positions are
    important for fulfilling HUD's mission of creating strong,
    sustainable, inclusive communities and quality affordable homes
    for all. HUD and its programs are critical to families and
    communities in Ohio and across the country.
        If confirmed as General Counsel, Mr. Paul Compton--thank
    you for your willingness to serve--will help set the tone for
    HUD's approach to legislation, to renter and homeowner
    protections, and to enforcement.
        If confirmed as Assistant Secretary for Fair Housing and
    Equal Opportunity, Ms. Anna Maria Farias would be responsible
    for implementing and enforcing HUD's fair housing laws.
        Mr. Neal Rackleff is an affordable housing and community
    development attorney who recently led the city of Houston's
    Housing and Community Development Department. The President
    nominated him to serve as the Assistant Secretary for the
    Office of Community Planning and Development, which administers
    the Community Development Block Grant, HOME, and Homeless
    Assistance Programs. Your work is especially important, Mr.
    Rackleff.
        We will be considering two nominees for the Department of
    Commerce.
        Mr. Richard Ashooh has been nominated as Assistant
    Secretary to assist and advise the Under Secretary of Commerce
    on the development of policies affecting export administration
    issues. This position provides direction to and management of
    the national security, nonproliferation, foreign policy,
    national defense, and
    strategic industrial resource functions at the Bureau of
    Industry and Security. This is a critical, though often
    overlooked, national security role in our Government.
        And Ms. Erin Walsh has been nominated to serve as Assistant
    Secretary--welcome--for Global Markets and Director General of
    the U.S. Foreign and Commercial Service, where she would direct
    the activities of the International Trade Administration's
    export promotion programs. We know American products made by
    American workers can compete with any in the world if given the
    chance. That is what this position will do, give American
    companies the chance.
        That gives me a moment to touch on something Senator
    Heitkamp and I have worked unrelentingly on, and that is the
    Export-Import Bank. We continue to be disappointed by this
    Administration's back-and-forth--not your issue, I understand,
    but this is a public forum--for it/against it on the Ex-Im
    Bank, first on reauthorization, then the issues of
    appointments, then not appointing, then appointing somebody who
    seems to want to emasculate the Bank, then backing of, and now
    seeming to be supportive again of that nominee. All of those
    things matter to us on this Committee because we know for you
    to do your job well, you also need a vibrant financial sector
    that actually can help U.S. companies export.
        This position for which Ms. Walsh was nominated provides
    strategic direction and management oversight for a network of
    trade professionals located around the world, responsible for
    American firms' entry into foreign markets and expansion of
    exports, and for promoting foreign direct investment in the
    United States.
        So congratulations, all of you. Again, thank you for your
    unselfish willingness to serve our country.
        Thank you.
        Chairman Crapo. Thank you very much.
        We just noticed that Senator Hatch, the Chairman of the
    Finance Committee and someone who is very interested in Mr.
    Campbell, has just arrived. I would ask him to come up. Would
    you like to take a seat right here? Senator, please, right
    here. And if you would like to make a comment at all, we would
    certainly appreciate it. We are just doing introductions right
    now.

     STATEMENT OF ORRIN G. HATCH, A U.S. SENATOR FROM THE STATE OF
                                  UTAH

        Senator Hatch. Well, I have known Chris Campbell for quite
    a long time. He has been a tremendous staff leader on the
    Finance Committee, among other things, and we have traveled the
    country together. He is honest, straightforward, very
    dedicated, intelligent, about everything you would want in
    somebody working with Treasury. He is just a very, very fine
    fellow.
        So I am happy to be here and am grateful that you have
    given me this opportunity to say a few words.
        Chairman Crapo. Well, thank you, Senator. And I know you
    have got another hearing going and other things that will take
    your time, so any time you can spend with us we appreciate.
        And I know, Chris, this is one of the parts of the job to
    have the spotlight put on you when your boss shows up to give
    you a special introduction, but that is, I think, very
    appropriate.
        Before we do the testimony, I would like to issue an oath,
    so would each of you please stand and raise your right hand? Do
    you swear or affirm that the testimony you are about to give is
    the truth, the whole truth, and nothing but the truth, so help
    you God? Please say, ``I do.''
        Mr. Compton. I do.
        Ms. Farias. I do.
        Mr. Rackleff. I do.
        Mr. Ashooh. I do.
        Ms. Walsh. I do.
        Mr. Campbell. I do.
        Chairman Crapo. And do you agree to appear and testify
    before any duly constituted Committee of the Senate?
        Mr. Compton. I do.
        Ms. Farias. I do.
        Mr. Rackleff. I do.
        Mr. Ashooh. I do.
        Ms. Walsh. I do.
        Mr. Campbell. I do.
        Chairman Crapo. Thank you. You can take your seats.
        Your written statement will be made a part of the record in
    its entirety. Before you begin, I invite you to introduce your
    family, if you choose to. And, again, before I move to you, Mr.
    Compton, to start, I want to remind all of my colleagues once
    again that we have 5 minutes for the questioning period, and I
    will promise to honor my 5 minutes and encourage you to honor
    it as well. That also applies to you and your statements, those
    of you who are testifying.
        We like to try to keep the Committee on time as we are
    always bumping up against schedules.
        And, with that, Mr. Compton, please proceed.

     STATEMENT OF PAUL COMPTON, OF ALABAMA, TO BE GENERAL COUNSEL,
              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        Mr. Compton. Thank you, Chairman Crapo, Ranking Member
    Brown, and this entire Committee for the opportunity to testify
    before you today. I am honored to have been nominated by the
    President to be the General Counsel of the Department of
    Housing and Urban Development and, if confirmed, to have the
    privilege to work with Secretary Carson.
        But I want to begin, Chairman, as you invited, to introduce
    my wife of almost 30 years, Dana Compton; our three children,
    Katie, Anne, and Jay; and Katie's husband, Cameron Pulsifer,
    who is making his first trip to the Nation's capital for this
    visit.
        Mr. Chairman, when I was in law school at the University of
    Virginia, I had the distinct honor of visiting with Justice
    Lewis Powell, who had just retired from the Supreme Court and
    was spending a semester at the law school. When I asked him
    where I should practice law, his response was: ``Go somewhere
    you can make a difference.''
        I followed that advice. I returned to my native Alabama,
    where I have practiced with the same law firm, Bradley Arant
    Boult Cummings, for 28 years. Back in the early years, as a
    young
    attorney, I was initially attracted to the banking area of
    practice. Increasingly, though, I found myself focusing on
    housing issues. It proved to be a natural fit. I realized I
    could make a profound
    difference by using the law to help create shelter and security
    for vulnerable people while builders and investors at the same
    time reinforced the local economy.
        I jumped at the chance when asked to find a way for a local
    bank to be an equity partner in a planned apartment building
    for low-income housing residents in Tuscaloosa. It was a novel
    question at the time. I succeeded--with results that were
    gratifying--and my career took on a new emphasis.
        Over the next several years, I represented that bank in 70
    transactions as it grew to be a regional institution, creating
    more than 5,000 units of affordable housing throughout the
    southeastern United States. Since then, I have worked on
    hundreds more affordable housing transactions, with other
    investors, developers, lenders, and public housing authorities
    in public-private partnerships that benefited low-income
    residents.
        I have often noted that the complexity of transactions goes
    up exponentially with the number of programs and parties that
    are involved. And some of these transactions were indeed
    enormously complicated, but we almost always found a way to
    succeed. I encouraged clients to think of themselves as repeat
    players, to focus on their long-term reputation, and to look
    for win-win solutions. I think because of this approach, I was
    tapped to become the outside General Counsel to the Alabama
    Affordable Housing Association.
        Which brings me to the present day and my nomination to
    serve as HUD's next General Counsel. I look back at Justice
    Powell's advice to me all those years ago, and I cannot help
    but think I am still heeding it to this day.
        HUD is a place where I can make a difference for our fellow
    citizens. If confirmed, I will strive each day during my tenure
    to ensure that the Department and its 8,000 dedicated employees
    operate in a legal and ethical manner. I will work to apply the
    law thoughtfully, vigorously, and as Congress intended. And I
    pledge to work with all the Members of this Committee to find
    solutions to the Nation's housing challenges and to eliminate
    barriers to affordable housing.
        Mr. Chairman, I am grateful to this Committee for holding
    this hearing on my nomination, and I look forward to addressing
    your questions.
        Chairman Crapo. Thank you, Mr. Compton.
        Ms. Farias.

       STATEMENT OF ANNA MARIA FARIAS, OF TEXAS, TO BE ASSISTANT
    SECRETARY FOR FAIR HOUSING AND EQUAL OPPORTUNITY, DEPARTMENT OF
                     HOUSING AND URBAN DEVELOPMENT

        Ms. Farias. Thank you, Chairman Crapo, Ranking Member
    Brown, and all the distinguished Members of this Committee.
        I would like to thank President Trump for nominating me to
    be Assistant Secretary for Fair Housing and Equal Opportunity
    and Secretary Carson for his strong support of my nomination.
        But I would also like to recognize the most important
    person in my life--my mom, Ofelia Gutierrez. She is not with us
    today. She is 89, she is disabled, but she is watching us. I am
    an only child. All of my cousins are working, which is exactly
    where I want them. I will just give them a summary version of
    what happens here today.
        But today I would like to recognize the Honorable Kim
    Kendrick--she is the former Assistant Secretary for Fair
    Housing and Equal Opportunity nominated by former President
    George W. Bush--and my fellow nominees here on the panel. And
    if we are confirmed, I am looking forward to working with all
    of them.
        The mission at HUD is to provide access to safe, affordable
    housing to all Americans, and my job would be the chief
    enforcer of the Nation's fair housing laws. I am fully,
    strongly committed to those laws. FHEO leads the Nation in the
    development, enforcement, and public understanding of the Fair
    Housing Act.
        I come before you with 20 years of experience in the
    Federal Government, including 8 at HUD. But, most importantly,
    you need to know where I was before those 20 years. I am a
    product of the Fair Housing Act, even though I got to the
    housing projects in 1963, 5 years before that law passed. I am
    the daughter of a single mother with a third-grade education, a
    domestic, working 6 \1/2\ days a week, earning between $12 and
    $20 per week. The one thing my mother always said was, ``You
    need to get an education so that you can do something
    differently than I am doing. I know that as a domestic, my job
    is honorable and honest. I just want something different.''
        I saw how much she sacrificed for me, and I quickly
    realized that, for me, hard work meant success, not just
    survival.
        As the high school valedictorian, I had a choice, and I
    selected Boston University, who gave me a full 4-year
    scholarship, and once again there I was blessed to come across
    someone who really had my best interest at heart. He was a
    young philosophy professor who became my mentor, and he is
    still my mentor. His name: William J. Bennett.
        When he became Secretary of Education, I gave up a safe
    legal career in the Government to go work by his side, and I
    can assure you there was never a dull moment working for
    William J. Bennett.
        In between Administrations, I did the one thing I always
    said I was not going to do. I went back home to run the housing
    authority, and I agreed to be among the first ones to live in
    the housing while I was there. The housing commissioners
    assigned me to what was then called ``Project Terror.'' It was
    the site of murders, rapes, child prostitution, child
    pornography, and drug dealing. My job was to clean it up.
        I stayed there 6 years, thinking that I could do it in 6
    months, and I was successful. And that is because the majority
    of the tenants wanted the same thing for their children and
    grandchildren that my mother had wanted for me as a child:
    safety and an opportunity for an education.
        As a result of our work together, we won over 12 national
    awards of merit, including several for Section 3. And in 2000,
    I was inducted into the Texas Women's Hall of Fame for my work
    at the housing authority.
        Today I am very proud to be the Chair of the Board of
    Regents of the Texas Woman's University, once again getting
    always back to education.
        Mr. Chairman, FHEO is an extremely important office to
    millions of Americans. If confirmed, my approach will be
    exactly what it has always been: apply the statute, the rules,
    and the facts in enforcing housing laws vigorously and in an
    impartial manner. And I pledge to work in a bipartisan manner
    with this Committee and Congress to meet the housing challenges
    facing our Nation.
        I thank the Members of this Committee for this great honor
    and opportunity to appear before you today, and I stand ready
    to answer your questions.
        Chairman Crapo. Thank you, Ms. Farias.
        Mr. Rackleff.

              STATEMENT OF NEAL RACKLEFF, OF TEXAS, TO BE
      ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT,
              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

        Mr. Rackleff. Thank you, Chairman Crapo, Ranking Member
    Brown, and all the Members of the Committee for inviting me to
    testify today.
        I am delighted to have my wife of 29 years, the lovely
    Christa Rackleff, with me; and my daughters, Eve and Karen, who
    are here with me today, two of our four children. Our other two
    children, Stephen and Annie, and our son-in-law, Brett, were
    unable to make it. My wife is the pillar of strength in our
    family. She is my best friend and in every single way she is my
    better, and I am so grateful for her. My family is truly the
    most important thing to me in time and eternity.
        Mr. Chairman, I am honored to be nominated to serve as
    Assistant Secretary of Community Planning and Development for
    the Housing and Urban Development Department.
        For over 20 years I have worked at the intersection of the
    public and private sectors, doing real estate development
    focused on resurrecting ailing communities and providing high-
    quality housing for hardworking, good people who, despite their
    best efforts, are still in need.
        I started on this path as a young city attorney in the mid-
    1990s. Downtown Houston was in trouble. Property values were
    declining and population was fleeing to the suburbs. Under the
    direction of a visionary mayor, I served on the team that
    successfully implemented public-private partnerships to
    redevelop historic downtown properties and revitalize a public
    housing complex that had been mired in litigation for years.
        Houston not only turned around, but came roaring back,
    after these projects truly ignited a downtown renaissance. I
    was blessed to learn from some of the brightest legal and real
    estate experts in the city's history. We used private sector
    creativity and innovation to achieve results with the public
    sector that neither sector--the public or private--could
    accomplish alone.
        Public-private partnerships can accomplish incredible
    change. For example, a terribly blighted apartment complex
    plagued a Houston inner-city community. For more than 10 years,
    local, State, and Federal officials tried to condemn and
    demolish the structure, but a wily slum lord successfully
    slipped from their grasp.
        My team took a different approach. We analyzed the market
    forces at work, then partnered with the local school district
    and used funds, from a tax increment finance district and the
    school district, to purchase and demolish the slum property. I
    am really proud to say that an elementary school stands today
    on the former epicenter of blight that was dragging down an
    entire neighborhood.
        My faith has been a formative factor in focusing on
    families in need. I served as the bishop of an inner-city
    congregation for many years and saw firsthand how hard so many
    people struggle to meet basic needs. And I became convinced
    that most people struggling with poverty truly desire a hand up
    rather than a handout. So I decided to do what I could to be
    part of the solution in helping people become more self-
    reliant.
        I left the practice of law at Locke Lord and went back to
    the city of Houston and ended up running the Department of
    Housing and Community Development. When I took the reins at the
    department, it was struggling. Looming over it were 102 HUD
    findings and over $80 million in potential fines. But a great
    team pulled
    together and not only cleared every finding, but we transformed
    our department into one of the finest and most effective in the
    Nation.
        During my tenure the department financed completion of
    7,800 high-quality affordable multifamily housing units;
    another 2,700 are in progress, under construction. And we
    assisted 1,700 single-family homeowners with reconstruction of
    hurricane-damaged homes, financial assistance for low-income
    homebuyers, and emergency home repairs.
        I can tell you that Houston truly has an unstoppable ``can-
    do'' spirit. During this same timeframe, the city, Harris
    County, the for-profit and nonprofit sectors all partnered with
    HUD to alleviate homelessness. Within a few years, we reduced
    chronic homelessness by more than 70 percent and became the
    first major city in the country to effectively eliminate the
    homelessness of veterans.
        I will also tell you that I have become convinced that the
    democratization of data is key to more effective governance. As
    an example, in the aftermath of severe flooding, I worked with
    a coalition of faith-based and nonprofit groups to alleviate
    suffering in Houston. We mined the city's fire, police, and
    public works databases to generate GIS maps, enabling churches
    and civic groups to locate and serve the elderly and disabled
    who desperately needed help. We then utilized an open-source
    social media platform to share data and avoid duplication of
    efforts as the various philanthropic groups worked together in
    the same space.
        I have been truly amazed to see the successes that are
    possible in ameliorating suffering when people put aside
    differences and ideologies in a united effort to help their
    neighbors. Love has animated the work I have been a part of,
    and I truly love the people I serve.
        Mr. Chairman, Committee, thank you very much for this
    opportunity to appear before you. I welcome your questions.
        Chairman Crapo. Thank you, Mr. Rackleff.
        Mr. Ashooh.

    STATEMENT OF RICHARD ASHOOH, OF NEW HAMPSHIRE, TO BE ASSISTANT
      SECRETARY FOR EXPORT ADMINISTRATION, DEPARTMENT OF COMMERCE

        Mr. Ashooh. Thank you, Mr. Chairman and Ranking Member
    Brown and to the rest of the Committee. I am honored to be
    before you today, and I am grateful to the President and the
    Secretary of Commerce for their confidence in me to serve in
    this capacity.
        I would love to introduce the family I have that is here.
    My wife of 25 years is behind me, Laurie. It only feels like 2,
    but it has been 25. And my daughter, Emma, who is here as a
    delegate for the other four children that could not be here--
    Sophie, Elias, Maya, and Sam. And I also welcome Angeline, who
    is Emma's sister in residence here as her roommate.
        I would also like to acknowledge the memory of a former
    boss, mentor, and friend named Warren Rudman, whom I got to
    know on these very premises years ago as a staffer for him. His
    example of fidelity to the country, his colleagues, and the
    Constitution still stands as guiding principles in my own life.
        Everyone in America is familiar with the Boston Tea Party.
    But you would have to come from New Hampshire as I do to be
    familiar with the Pine Tree Riot. Briefly, the Pine Tree Riot
    was a pre-revolutionary protest in New Hampshire against the
    British Crown's attempt to regulate the colonial pine tree
    trade. This is significant because these mighty pine trees made
    the best ships' masts, and the King reserved the best of them
    for the Royal Navy, allowing Great Britain to project power all
    over the world. The colonists rejected this intrusion into
    their economy and livelihoods, and the Pine Tree Riot was one
    of several incidents that led the way to Revolution.
        Why this obscure history lesson? Well, these pine trees
    were the turbofan engines of their day--technology that was
    vital both to national security and civilian commerce. The
    Crown's behavior was in effect an export control--one that did
    not work out very well for the King. The point is we need to
    weigh the national security implications of our technology
    trade, and it has been with us since before we were a Nation.
        The position to which I have been nominated sits at the
    intersection where national security, technology, and the
    economy meet. Never has this juncture been more critical. The
    number and nature of the threats facing our Nation, from state
    and nonstate actors alike, has grown. Meanwhile, the pace of
    technology has not only accelerated dramatically; it has
    shifted. The national security establishment once led areas of
    technology development that are now driven by the commercial
    sector. The responsibility for eliminating the vulnerabilities
    to our Nation presented by these dynamic shifts, while
    encouraging robust trade in the technology sector, rests
    squarely with the Bureau of Industry and Security. The workload
    at BIS--which has increased and will continue to do so--further
    reflects these trends.
        Both my desire and readiness to serve in this capacity is a
    product of a career spent advancing key elements of this
    mission. Early in my career as a Senate staffer, I was
    privileged to work on issues concerning technology transfer, in
    particular to adversary nations. It is worth noting that the
    global parties of concern at that time--specifically, China,
    Russia, and Iran--occupy more or less the policy priorities BIS
    faces today.
        After more than two decades of experience in the aerospace
    industry, where I was able to work on behalf of our Nation's
    most advanced technology enterprises, the strictures of the
    U.S. export control regime were, and still are, well known to
    me. I understand better than most the challenges and
    necessities associated with technology development, believing
    that our success as a Nation is underpinned by our ability to
    remain ahead of our adversaries in this area, both commercially
    and strategically.
        These experiences imparted to me countless lessons that can
    help advance the critical mission of the Bureau, especially in
    the challenging times that we have. Should I be honored with
    confirmation, I would look forward to working with you as we
    endeavor to meet these challenges.
        Thank you again for the privilege of being with you today,
    and I look forward to your questions.
        Chairman Crapo. Thank you, Mr. Ashooh.
        Ms. Walsh.

    STATEMENT OF ELIZABETH ERIN WALSH, OF THE DISTRICT OF COLUMBIA,
       TO BE ASSISTANT SECRETARY FOR GLOBAL MARKETS AND DIRECTOR
     GENERAL OF THE UNITED STATES AND FOREIGN COMMERCIAL SERVICE,
                         DEPARTMENT OF COMMERCE

        Ms. Walsh. Thank you, Chairman Crapo, Ranking Member Brown,
    and distinguished Members of the Banking Committee. I am
    grateful for the opportunity to appear before you today. I am
    very honored to be here as President Trump's nominee for
    Assistant Secretary for Global Markets and Director General of
    the U.S. and Foreign Commercial Services. I am so honored to
    have my family with me on this special day. If you do not mind,
    I would like to introduce my father, Michael Walsh; my sister,
    Anne Walsh; and my mother and sister were unable to come today.
        Over the past several days, I have had the pleasure of
    meeting Members of this Committee and your staff. Thank you for
    taking the time to share your insights and perspectives on the
    economic conditions of your home States. If confirmed, I look
    forward to working closely with you and with your team.
        I bring to this nomination over 30 years of public and
    private sector experience. Through my work I have had the
    opportunity to gain extensive knowledge of foreign and economic
    affairs in Asia, the Middle East, and Africa, and I have
    traveled to or worked in 100 countries.
        A Georgetown University graduate, I interned at the White
    House during school before landing a full-time position in the
    Office of Political Affairs. I also worked at the Department of
    Energy and later joined the Department of State, where I served
    as the Deputy Manager and then Acting Manager of Blair House.
    In 1989, I moved to New York to serve as the Chief of Protocol
    to the U.S. Mission to the U.N. In 1994, I joined UNICEF as the
    head of emergency operations in Tuzla, Bosnia, during the war.
    I later left
    Bosnia to attend graduate school at the London School of
    Economics and then returned to Sarajevo to work with the United
    Nations as an economic and political affairs officer.
        Returning home from Bosnia, I went to work at Cisco, where
    I built a strong partnership organization to bring the Cisco
    Networking Academy Program to 90 countries around the globe,
    particularly in Africa, Asia, and Central America, including 41
    of the least developed countries in the world.
        After several years in the private sector, I returned to
    the State Department in 2005 to serve as a Senior Advisor in
    the Bureau of Near Eastern Affairs. I was recruited to
    formulate and execute a strategic plan to advance U.S. policy
    interests, strengthen alliances, and establish programs focused
    on women across 16 countries in the Middle East and North
    Africa.
        At Goldman Sachs I was based in China and led the firm's
    philanthropic activities in Asia Pacific. I developed a long-
    term strategic platform in Asia, seeking to foster economic
    growth and opportunity through investment in the community,
    public engagement, and partnership building. Through this
    experience I have seen firsthand the role the private sector
    can play in facilitating and enhancing America's prominence
    abroad and in advancing U.S. values. Furthermore, I know the
    critical role the U.S. Government plays in leveling the playing
    field to ensure U.S. companies can compete abroad and to ensure
    that our foreign competitors abide by their commitments and
    play by the same rules. I am passionate about the mission of
    the Department of Commerce and can think of nothing more
    meaningful or impactful than creating jobs through promoting
    U.S. exports or attracting foreign direct investment into the
    United States.
        Trade, exports, and foreign direct investment are a
    powerful engine for economic growth. With 95 percent of the
    world's population outside of the United States and more than
    one in five American jobs supported by trade, the Office of
    Global Markets has a critical role to play. Last year alone,
    for every $1 appropriated to Global Markets, an estimated $192
    was returned to the American economy in the form of increased
    exports and FDI for a total impact of $62.2 billion, which
    supported approximately 300,000 U.S. jobs.
        I am deeply grateful to Secretary Ross for his leadership
    and confidence in me. If confirmed, I look forward to having
    the opportunity to lead this organization, with all the amazing
    people that we have in the field, both at home and abroad. And
    I will bring to it my global experience and business background
    as well as my knowledge of how to leverage Government resources
    to ensure effectiveness.
        Thank you for your time today and for your consideration of
    my nomination.
        Chairman Crapo. Thank you, Ms. Walsh.
        Mr. Campbell.

        STATEMENT OF CHRISTOPHER CAMPBELL, OF CALIFORNIA, TO BE
     ASSISTANT SECRETARY FOR FINANCIAL INSTITUTIONS, DEPARTMENT OF
                              THE TREASURY

        Mr. Campbell. Chairman Crapo, Ranking Member Brown, and
    distinguished Members of the Committee, thank you for the
    opportunity to appear before you today and considering my
    nomination to be Assistant Secretary of the Treasury for
    Financial Institutions. I am deeply honored and humbled to have
    been selected for this position and am grateful to President
    Trump and Secretary Mnuchin for the opportunity to continue my
    career in public service in a different venue.
        Before I get too far into my statement, I would like to
    recognize the members of my family who are in attendance today.
    With me today are my sister Michelle, my brother-in-law
    Richard, my brother Eric, and my sister Catherine. I also want
    to acknowledge my two other siblings who were not able to make
    it today: my brothers Scot and Marc. My mother would surely
    like to be here today, but she is too ill to travel. But I know
    she is watching from home.
        I also want to acknowledge my many friends, colleagues, and
    former colleagues who are here, many of whom have flown here
    for this occasion and for the hearing, and I appreciate them
    being here.
        I want to thank every one of them for being here and for
    their love and support. One does not receive opportunities like
    this without years of help from many, many people, and that is
    certainly the case for me.
        I come from the humblest of beginnings. I lived most of my
    childhood in poverty, really never thinking that I would be
    afforded the opportunities that have been presented to me over
    the last two decades.
        The first great opportunity that came my way was the chance
    to join Senator Orrin Hatch's campaign for President as the
    national field director. I think Senator Hatch would agree
    that, after that initial experience in politics and public
    service, there was really nowhere to go but up.
        Despite the results of that particular campaign, the
    Senator for some reason asked me to run his 2000 campaign for
    reelection. This was, to say the least, a lot of responsibility
    for a relatively inexperienced kid, but, thankfully, that
    campaign was a huge success, and I have worked with the Senator
    in a variety of capacities since that election, most recently
    as Staff Director for the Senate Finance Committee.
        I am, of course, grateful to Senator Hatch for his support
    and his encouragement over these years. He has been a mentor to
    me, and I certainly would not be here if not for his skillful
    tutoring.
        During my time in the Senate, I have worked hard to
    cultivate a reputation for three things.
        First and foremost, I have sought to be known as an
    effective advocate and strategist for achieving the goals of my
    employer, whether it be the Senator or the Committee.
        Second, I have worked to be known as one who prefers and
    effectively facilitates bipartisan cooperation. Throughout my
    career I have begun every effort with the presumption that a
    bipartisan result would be the preferred one and more enduring
    than a partisan one and have worked to achieve those kinds of
    outcomes.
        Finally, I have endeavored to build a reputation for being
    a good manager and leader. On the Finance Committee, Chairman
    Hatch and I have put together an effective and professional
    staff. Leading this team has been one of my most proud
    professional achievements.
        I cannot take credit for everything that has happened in
    the Finance Committee, of course, that we have accomplished
    there. The credit belongs to Chairman Hatch, Ranking Member
    Wyden, and Senator Baucus, who was the Chairman when I first
    started. But, once again, during my time on the Committee and
    throughout all of my time in the Senate, I have sought to leave
    a mark and build a reputation for being an effective advocate,
    a bipartisan facilitator, and a strong leader.
        Chairman Crapo, Ranking Member Brown, I have had the
    privilege to work closely with you, as well as with many other
    Members of this Committee throughout the years. As you consider
    my nomination, my hope is that those efforts to build that kind
    of reputation have been successful and that I have displayed to
    you those kinds of characteristics.
        The Assistant Secretary of the Treasury for Financial
    Institutions is responsible for leading the Treasury's efforts
    to monitor and regulate our Nation's banks and securities
    markets and to ensure our financial sector is resilient in
    times of crisis. In addition, it is responsible for
    coordinating, among other things, Treasury's work on financial
    education, consumer protection, community development,
    affordable housing, and cybersecurity.
        In other words, the position has a broad focus, dealing
    with the largest banks and investment companies as well as
    small community organizations. This is not unlike the broad
    jurisdiction of the Senate Finance Committee. Successful
    leadership from this position will require great management
    skills and the help of many talented career staff at the
    Department. In addition, it will require a balance of competing
    interests.
        I think it is safe to say that few, if any, nominees
    considered by this Committee have ever been so cognizant of the
    need for cooperation between Congress and agencies in the
    executive branch. If confirmed, I look forward to working with
    the Members of this Committee to ensure safety and soundness of
    financial institutions and practices, fairness, and avenues
    through which the financial sector works to facilitate economic
    growth and opportunities for all Americans.
        Members of the Committee, thank you for the opportunity to
    appear with you today, and I look forward to answering your
    questions.
        Chairman Crapo. Thank you very much, Mr. Campbell. And
    before I begin the questioning round, I want to say I am super
    impressed with this panel, not only because of the
    qualifications that each of you have but because each one of
    you finished your testimony in well less than 5 minutes.
        [Laughter.]
        Chairman Crapo. I think that is actually a record. Thank
    you very much for that.
        I was going to ask each one of you to just briefly tell me
    what your top priorities are, if you are confirmed. But I am
    going to ask you to do that instead in writing. Following this
    hearing, each of you or at least I expect that each of you will
    receive some follow-up questions from Senators, and we will
    encourage you to respond to those as promptly as you can. So
    consider that to be your first question, and that is, just in a
    paragraph or so, what are your priorities as you move into this
    position?
        Chairman Crapo. And then I actually only have one specific
    question for one of you, and that is you, Mr. Ashooh. The last
    Administration launched an export control reform initiative,
    some of which is still being implemented. My question is: Do
    you think that that initiative has accomplished what it was set
    out to achieve? What else needs to be done? Or should the
    Administration take a different route?
        Mr. Ashooh. Thank you, Mr. Chairman, and I agree, many good
    things were done in the prior Administration to do what many
    would consider to be long overdue changes to make our export
    control regimes more accessible to those who are by necessity
    accountable to them.
        I do believe there is more to do. I would not prejudge for
    a moment the entirety of what those things are. If confirmed, I
    would absolutely follow up with you about that, but there is no
    question that I believe the fresh eyes that I would bring to
    our export control system would certainly result in some
    opportunities to do things even better.
        Chairman Crapo. All right. Thank you very much. I was going
    to let Senator Hatch take a couple minutes and ask Chris some
    questions when he is under oath.
        Mr. Campbell. Oh, no.
        [Laughter.]
        Chairman Crapo. But he has politely declined to do that, so
    you just dodged a bullet.
        Mr. Campbell. I am so grateful.
        Chairman Crapo. With that, I am going to conclude my
    questioning. Senator Brown.
        Senator Brown. Thank you, Mr. Chairman.
        I do not often suggest reading material to people in the
    Administration or even colleagues, but I would ask the three
    HUD nominees to consider reading a couple of books that I have
    spoken of. I was one of, I believe, five or six Democrats to
    vote for the confirmation of your boss for a number of reasons,
    and I asked him to read two books that I think are particularly
    important. One is ``Evicted'' by Matthew Desmond about the
    increased rates of foreclosure in this country and how lives
    turn upside down when someone is foreclosed on or is evicted
    from their homes. It was a case study that he did that was very
    effective in painting the picture, maybe a picture of where you
    at one time lived, Ms. Farias.
        Written recently, another book, sort of hand in hand with
    this genre of Michael Harrington and others in this country, is
    a book called ``$2.00 a Day,'' and I would suggest to the three
    of you that you would find time prior to or in your early days
    of serving this Administration for reading those two books.
    Thank you.
        We have a large panel. I want to get through as many
    questions as possible. Ms. Farias, FHEO is instrumental in
    implementing HUD's Affirmatively Furthering Fair Housing, AFFH,
    rule. Do you support the AFFH rule? And will you commit to
    implementing it?
        Ms. Farias. The law of 1968 makes it very clear that for
    discrimination against housing that is one of the things
    grantees have to do, and HUD has been implementing it as it was
    when I was there under President Bush. I know that there is a
    new rule. If confirmed, I will review the concerns and--but,
    yes, it will be implemented. And if there are any changes, they
    have to comport with the law.
        Senator Brown. OK. Thank you.
        Mr. Campbell, you played a significant role in a colloquy
    between the Chair and Ranking Members on Finance regarding
    responsiveness by the Administration to requests from both
    Democrats and Republicans. Thank you for that. If confirmed,
    will you commit to reply to every oversight or other letter and
    request for information, from the Chair, or from Members on
    both sides of this Committee in a timely manner?
        Mr. Campbell. Senator Brown, you will find no one that
    cares more about this institution probably than me, and I spent
    the majority of my time in the minority. I understand the
    challenges of the minority, and everything that is in my power,
    I will answer each question from you or any Member of the
    Committee.
        Senator Brown. Thank you. And I would like to ask each of
    you that same question. Will you commit to reply to every
    oversight or other letter and request for information from any
    of us on this panel? Ms. Walsh?
        Ms. Walsh. Yes, Senator, I do commit.
        Senator Brown. Mr. Ashooh?
        Mr. Ashooh. Yes, Senator.
        Senator Brown. Mr. Rackleff?
        Mr. Rackleff. Yes, sir.
        Senator Brown. Ms. Farias?
        Ms. Farias. Yes, sir.
        Senator Brown. Mr. Compton?
        Mr. Compton. Yes, Senator.
        Senator Brown. Thank you. Thank you for that.
        Ms. Walsh, you served for several months in the Trump
    administration transition, both on the campaign, then at the
    White House as a key point of contact for the State Department,
    including a co-leader for the State Department landing team.
    Did you during that period have or arrange any meetings between
    Russian and U.S. officials?
        Ms. Walsh. No, sir.
        Senator Brown. OK. Thank you for that.
        Mr. Campbell, at the recent G-20, President Trump said he
    talked with Vladimir Putin about forming a cybersecurity unit
    to guard against future election hacking. It seems like the
    President has since cooled on that idea. Secretary Mnuchin,
    your future boss, echoed the President, described as a
    ``significant accomplishment'' that President Trump talked with
    Putin about forming this unit. I have not heard the Secretary
    further comment on it.
        If confirmed, you will play a significant role in
    Treasury's cybersecurity efforts. I hope you will not be
    setting up a cybersecurity unit with Russians in your new role.
    Any comments?
        Mr. Campbell. Senator, I think it is important and I think
    you hopefully would agree that the U.S. lead the efforts, no
    matter who we engage with, on cybersecurity and making sure
    that we protect the critical financial backbone of the
    financial markets. So
    irrespective of with whom we engage--and, obviously, the
    Secretary and the President will coordinate those, make those
    decisions, and I will, as well as working with you guys on the
    Committee and your staff, make sure that we export America's
    values and make sure that we protect the critical
    infrastructure of our financial markets and institutions.
        Senator Brown. OK. Thank you. And last question. Mr.
    Compton, if confirmed, you will bring valuable experience in
    affordable housing development and finance as General Counsel.
    In addition to and as part of your affordable housing work, you
    have spent many years representing financial interests, as you
    told us about your background in banking in Alabama. As General
    Counsel, you will be charged with protecting the rights of
    renters and homebuyers and FHA consumers.
        Tell me, briefly if you can--because I am over my 5
    minutes, and I respect the Chairman's admonitions every day.
        [Laughter.]
        Senator Brown. What will your approach be in protecting the
    rights of these groups, particularly in cases where their
    interests may go up against the interests of the banking
    industry?
        Mr. Compton. Senator, first I recognize, if confirmed, my
    role as General Counsel at the Department of Housing and Urban
    Development, and it has a broad purview, and certainly in
    representing the Department as my client first, I would
    coordinate on enforcement matters with my colleagues on that.
    But I think that my background with respect to having
    represented financial institutions in the past helps me
    understand the plight of the consumer on the other side as
    well.
        Senator Brown. OK. Thank you for that. There is concern
    among large swaths of the public that, particularly inside the
    White House and in Treasury and other places, there is simply
    too much influence by Wall Street and among major banking
    interests in this Administration, and your role in pushing back
    against that when you get it from the higher-ups is
    particularly important. So thank you for your commitment to do
    that.
        Mr. Compton. Thank you, Senator.
        Chairman Crapo. Thank you.
        Senator Shelby.
        Senator Shelby. Thank you, Mr. Chairman.
        Mr. Chairman, I believe we have a distinguished group here
    from Mr. Compton to Mr. Campbell. Everybody is ready to go to
    work. The Administration needs these people. I would call this
    a sterling group.
        I would say a few other words about Mr. Compton. He is well
    known in my State in the area of housing. As he said in his
    opening statement, he has been involved in development of a lot
    of low-income housing, up into the thousands of units. He knows
    this area. We are proud that he is coming in here and taking a
    job at HUD. But I am also proud of all of you accepting the
    responsibility of Federal service, and I look forward to
    supporting all of you.
        I have a number of questions, but I will submit those for
    the record, and I would like for my opening statement to be
    made part of the record, Mr. Chairman.
        Chairman Crapo. Without objection.
        Senator Shelby. And I hope you can expedite, you and
    Senator Brown, these nominees as soon as possible.
        Chairman Crapo. We intend to try to do that.
        Senator Brown. Mr. Chairman, we will move at a much more
    rapid pace than we have in the last several years.
        Senator Shelby. I would think so because we probably have a
    lot more distinguished people to move.
        [Laughter.]
        Senator Brown. Which we would not know, because we actually
    had so few hearings to find out about them.
        Senator Shelby. I would say again, when I was Chairman, we
    evaluated people like we are doing now, and I like what I see
    today.
        Chairman Crapo. You can see why they put me in this seat.
        [Laughter.]
        Chairman Crapo. Next is Senator Warren.
        Senator Warren. Thank you very much, Mr. Chairman. And
    thank you all for being here and for your willingness to serve.
        I want to talk about affordable housing. There is an
    affordable housing crisis in this country. Most experts say
    that a family that spends more than 30 percent of its income on
    rent will have a very hard time meeting their other
    obligations, you know, for food and clothing and
    transportation. But at this moment, more than 11 million
    families are paying more than half their income in rent.
        Now, HUD's core mission is to address the affordable
    housing crisis, but that actually takes money to make it
    happen. And even as this problem gets worse and worse, Donald
    Trump wants to slash more than $6 billion from the HUD budget
    next year. That would be a 13-percent cut.
        Community Planning and Development is the part of HUD that
    is responsible for developing affordable housing and the
    surrounding communities so that residents have access to decent
    jobs and to services. The Trump budget would cut the funding
    for this Department by 60 percent, and I do not know how anyone
    runs a Department when more than $1 out of every $2 disappears
    in a single year.
        So let me ask, Mr. Rackleff, if you were nominated to run
    the Community Planning and Development Department, do you
    support these massive cuts to your Department's budget?
        Mr. Rackleff. I do support the President budget.
        Senator Warren. So I guess then I do not understand what--
    how do you plan to run a Department where you lose 60 percent
    of your money?
        Mr. Rackleff. I can only say to you, Senator Warren, that
    whatever resources are afforded to me by the Administration and
    by Congress I will use wisely. We have faced significant cuts
    at the city of Houston in some of the very same funding
    sources, and it has been difficult, but we will find ways to
    help those that we can.
        Senator Warren. Let me push back on that. You have touted
    your record at Houston. You said that is the reason that we
    should confirm you, is because you had a great record at
    Houston. But let me just take a look. When you served as
    director of the Housing and Community Development Department
    for the city of Houston from 2012 through July of 2016,
    according to HUD data, the city of Houston received more than
    $100 million in Federal Community Development Block Grants from
    HUD. And you used that money to rehab homes, to remove lead, to
    improve surrounding roads, all trying to increase access to
    safe and affordable homes.
        Now, if you are confirmed, you are not going to have that
    same money to give to other cities. Do you think other cities
    do not deserve that same opportunity?
        Mr. Rackleff. As I mentioned, I support the President's
    budget, and I will use whatever resources are afforded to me
    effectively and well.
        Senator Warren. So what is going to happen to affordable
    housing in America?
        Mr. Rackleff. Most of the affordable housing that is
    generated in America today, as you are aware of, I am sure, is
    financed actually through tax credit equity through the Low-
    Income Housing Tax Credit Program.
        Senator Warren. Are you telling me the $100 million that
    Houston got while you were in charge was not helpful as you
    described it at the time to rehab homes, to remove lead, and to
    improve surrounding roads?
        Mr. Rackleff. No; it certainly was helpful. But what I
    will--I am not so concerned about what acronyms are associated
    with the funding that we receive, and I am confident that we
    will obtain the funding necessary to help the people that I
    care so much about.
        Senator Warren. I do not think I understand that last
    answer. Are you telling me you think you are going to get the
    money from someplace else?
        Mr. Rackleff. I am confident in the Congress of the United
    States and the Administration working together to provide the
    resources that we need to help the people that we both care so
    much about.
        Senator Warren. Well, the resources we need include, it
    seems to me, the $6 billion that has been spent in the past,
    that you yourself personally have administered and made good
    use of in Houston. Are you saying you think we are going to
    make up that $6 billion somewhere else?
        Mr. Rackleff. I hope that resources will be found to help
    us accomplish the things that we need to get done, yes.
        Senator Warren. So you support the President's cuts, but
    you hope that they are not actually going to happen?
        Mr. Rackleff. No, ma'am. I believe that there are other
    ways that we can find to help folks who need assistance, and I
    know that Dr. Carson has talked about finding other mechanisms
    to help those that we----
        Senator Warren. And I think so far, how much extra money
    have you found?
        Mr. Rackleff. If confirmed, I will do the best that I can
    to work with----
        Senator Warren. How much has he found so far, extra money?
        Mr. Rackleff. I do not know the answer----
        Senator Warren. None.
        Mr. Rackleff.----to that question.
        Senator Warren. I think the answer is none.
        You know, look, I just want to be clear about this. It
    takes money to rehab those homes. It takes money to do lead
    abatement. It takes money to rebuild the roads so there is some
    transportation in and out of these neighborhoods. It takes
    money to help us accomplish some affordable--to build some
    affordable housing, to make sure we have some affordable
    housing. And if we turn our backs on that, then the affordable
    housing crisis in this country just gets worse.
        Thank you, Mr. Chairman. I apologize for going over.
        Chairman Crapo. Thank you.
        Senator Rounds.
        Senator Rounds. Thank you, Mr. Chairman.
        Mr. Rackleff, I would like to just follow this up just a
    little bit. I get the sense that what you are trying to share
    with the Committee is that your role is to use whatever
    resources are made available to you, you will do in a
    responsible manner. Is that a fair way of putting it?
        Mr. Rackleff. Yes, sir. You sense my response perfectly.
        Senator Rounds. Let me just offer this: I understand where
    the Senator from Massachusetts is coming from in expressing
    that housing is a very important issue. We have the same
    challenges in South Dakota with housing on the reservations and
    so forth. And, most certainly, I recognize that where the
    President may make recommendations and focus, which has been on
    defense improvements and so forth--which are critical and I
    agree with him on that--I also understand that as part of this
    process, we will be looking at funding for the other agencies
    as well, and that becomes our role.
        You understand that the appropriations process is where the
    decisions are actually made, and that belongs to the
    congressional branch of Government. Is that not correct?
        Mr. Rackleff. Yes, sir, and I have tremendous faith and
    confidence in our constitutional system.
        Senator Rounds. The responsibilities for the actual
    determination of the amount of money that will be delivered to
    your Department, which we would expect you to expend in a
    responsible manner, is our decision, is it not?
        Mr. Rackleff. Yes, sir.
        Senator Rounds. And the money that we do entrust to you,
    you will utilize in the most responsible manner possible.
        Mr. Rackleff. Yes, sir. I feel I have a strong history of
    using whatever resources that are made available to me to do a
    good job in helping the people that we all care so much about.
        Senator Rounds. Is there anything else on this subject that
    you would like to clarify?
        Mr. Rackleff. No, sir.
        Senator Rounds. Thank you.
        I do have a couple of other questions for the nominees
    within our housing--or let me begin with Commerce just for a
    minute. Mr. Ashooh and Ms. Walsh--first of all, I want to thank
    all of you for appearing before this Committee. You all have
    very impressive backgrounds and qualifications, and I do
    appreciate your willingness to step forward and to serve.
        My question is going to be directed to our two nominees for
    the Department of Commerce who will have significant
    responsibilities with respect to trade. You both may be aware
    that South Dakota exports billions of dollars of agricultural
    products every year. As a result, I have been watching with
    great interest the decisions that President Trump has made with
    respect to agreements like TPP and the North American Free
    Trade Agreement.
        Can you share your views on our evolving trade
    relationships? How will the work that you do to help facilitate
    and grow our trade with other countries come forward? The
    reason why I ask this question is it is one thing to be able to
    put together a very complicated compact with a number of
    countries and get as far as we did with TPP. But then to try to
    do the individual agreements country by country, while I admire
    the idea of doing it, it provides us with opportunities, the
    time challenges on this will be significant.
        Can you share your thoughts about how you will prepare and
    move forward with your new roles?
        Mr. Ashooh. You get to go first.
        Ms. Walsh. OK. Thank you, Senator, for that question. It
    was wonderful to have the opportunity to meet with you in your
    office, so thank you for your time.
        In this role, if confirmed, I think that the focus will
    definitely be on increasing our exports globally. At this point
    about 1 percent of our small- and medium-sized businesses in
    the United States export, and the role of the Foreign
    Commercial Services is to really focus on each of these
    businesses, particularly in small- and medium-sized
    enterprises, to expand their markets globally, to look at where
    the opportunities are and the trends, where there is an
    increasing level of middle-class consumers. And that is what
    our teams would be looking at at the Department of Commerce, to
    focus on trade and also the reduction of the trade deficit.
        Mr. Ashooh. Senator, thank you. I would say that the
    increased economic activity that increased our trade creates
    puts pressure on the Bureau of Industry and Security to ensure
    that we are not losing control of our valuable technology
    assets. So that is the perspective that BIS would have.
        What I would say is that there are already preexisting
    multilateral agreements that the Department of Commerce uses in
    order to implement export controls, and I have been impressed
    to learn these run very well. And, if confirmed, I would look
    forward to ensuring that these agreements continue to serve
    this important role in the face of increasing economic
    activity.
        Senator Rounds. Very good. With regard to housing, one of
    the most pressing concerns from a housing standpoint within our
    State is how our new Administration will work with Native
    American tribes and officials on promoting housing on Native
    American reservations. Reservations face some of the most
    significant obstacles when it comes to promoting a safe and
    stable housing supply, and oftentimes the remote location and
    economic challenges make it difficult to promote the growth of
    new housing stock.
        I am going to ask this for the record. I will respect my 5-
    minute time limit. Could the three of you please respond in
    writing? Can you please discuss your views on tribal housing?
    And I need to bring this to your attention because we have a
    real lack of housing on the reservations themselves. And will
    you commit to working with us and your colleagues to
    understanding and improving the challenges associated with
    tribal housing? That is a yes or no answer, but I would like
    that part right now. This is a critical area in rural areas
    where the most poverty in America exists, and housing is a
    major part of the issue. Would all of you agree to commit to
    responding back to how you see we can work to promote more
    housing in rural areas, particularly reservation areas? And
    would you commit that it is a serious problem and you would
    agree to work with us to find solutions?
        Ms. Farias. Yes, Senator Rounds.
        Mr. Compton. Yes, Senator, and certainly tribal areas post
    special issues in public-private partnerships that I am aware
    of.
        Mr. Rackleff. Absolutely, and I would add that I have had a
    fair amount of experience working in Texas in rural areas where
    we have a lot of the same inherent economic challenges in
    providing housing economically in remote locations. One of the
    things we have done in Texas is to target set-asides of the
    housing tax credit equity that is provided to the State to
    those areas, and I think that there are some innovative things
    that we can do to help you.
        Senator Rounds. Thank you.
        Thank you, Mr. Chairman.
        Chairman Crapo. Thank you.
        Senator Menendez.
        Senator Menendez. Mr. Chairman, before I start, I want to
    briefly note that I have some serious concerns about the
    Committee considering this many nominees at one time. The
    breadth and scope of the nominations go from banking,
    affordable housing, financial institutions, national security,
    and trade, and within 5 minutes or so, even with the Chairman's
    courtesy of letting it go over a little bit, the breadth and
    scope--I just cannot possibly do that in 5 minutes. I know
    others are much more talented than I am, but I cannot.
        [Laughter.]
        Senator Menendez. And so, therefore, I will have real
    problems with the nominees unless I get substantive answers to
    my written questions and the lack of being able to pursue the
    time here. And I would hope that the Chair would consider in
    the future either two panels or a smaller set so that we can
    have the substantive time to ask these nominees.
        Ms. Farias, I understand that in response to Ranking Member
    Brown's questions, you affirmed that you will provide clear
    guidance to grantees in public housing agencies on how to meet
    their requirement to affirmatively further fair housing under
    the Fair Housing Act, and that you intend to implement the Fair
    Housing Rule affirmatively. Is that fair to say?
        Ms. Farias. Yes, Senator Menendez.
        Senator Menendez. Mr. Compton, you are going to be the
    General Counsel. Will you be doing the same?
        Mr. Compton. Yes, Senator. I think implementation of
    Affirmatively Furthering Fair Housing is one of our big
    projects.
        Senator Menendez. Thank you.
        Mr. Rackleff, your testimony touts your tenure as former
    director of the Houston Housing Community Development
    Department. Under your leadership in Houston, the department
    produced an impressive 7,800 multifamily housing units with
    another 2,700 in progress.
        Would you say that the development of those units expanded
    access to affordable homes in the Houston area?
        Mr. Rackleff. Absolutely.
        Senator Menendez. During your time as director, did Houston
    utilize Community Development Block Grant and Home Investment
    Partnership funds to develop and rehabilitate affordable
    housing units?
        Mr. Rackleff. We did.
        Senator Menendez. So I think you would disagree with the
    statement that the Community Development Block Grant Program
    and the Home Investment Partnership have not demonstrated a
    measurable impact on communities. Is that correct?
        Mr. Rackleff. I can only speak to my own experience in
    Houston----
        Senator Menendez. And in your experience, would you say
    that is correct?
        Mr. Rackleff. In Houston, we did a great job with those
    funds.
        Senator Menendez. OK. Now, Mr. Campbell, it is good to see
    you over here in the Banking Committee.
        Mr. Campbell. Good to see you, Senator.
        Senator Menendez. In the Senate Finance Committee as well,
    it is always great to see you there. The President spent a
    great deal of time on the campaign trail highlighting
    neighborhoods and communities throughout the country that
    seldom reap the benefits of economic expansion but are reliably
    and disproportionately burdened by economic downturns. And yet,
    astonishingly to me, the Administration has proposed zeroing
    out the Community Development Financial Institutions, the CDFI
    funds, which support the private community partners that have
    stepped up for the better part of a century to inject capital
    in these forgotten communities.
        I have not seen any justification rooted in facts, and at
    least one of your future colleagues, NCUA Chair McWatters, told
    this Committee he opposes the fund's elimination, a sentiment
    echoed by the ABA and ICBA.
        As Assistant Secretary for Financial Institutions, the CDFI
    fund will fall directly under your oversight. If confirmed,
    will you be an advocate to maybe lend some light to the
    Administration that may not have all the information here to
    try to sustain the important work of the CDFI funds?
        Mr. Campbell. So, Senator, as you know, as you are well
    aware, I was not a part of the Administration when the
    President developed his budget, and as you are also aware, I am
    definitely a creature of this institution, having worked
    closely with you on Puerto Rico issues and many others.
        With regard to the CDFI specifically, there is--I am
    confident in your and your colleagues' ability to be able to
    best determine how you want to spend the taxpayer dollars, and
    if afforded and if appropriated to the CDFI and if confirmed, I
    will do my level best to work with you, your colleagues,
    interested colleagues and staff to----
        Senator Menendez. Well, I appreciate that you want to punt
    it to us, and I understand that. But let me just say, part of
    my--I just came from a Foreign Relations hearing where I had
    the same problem. Part of the challenge of hearing that answer
    is that when you are confirmed, you will be in a position to
    advocate policy within the Treasury Department and within the
    Administration and interagency process. And so I know you are
    going to basically follow the lead of whatever the final
    decision is, whether by Congress or the Administration.
        What I am asking you is: Do you believe the CDFI funds
    actually provide a good basis for development in these
    communities? And can you be an advocate for them even if, at
    the end of the day, you lose your advocacy?
        Mr. Campbell. So, Senator, I want to work with you and your
    staff. I know of your strong commitment to this issue. There
    are some areas of duplications within the Administration that
    cover CDFI. I think there are perhaps ways to streamline those
    issues to make the use of taxpayer funds more efficient and
    more effective to the affected community, and I think we can--
    and I hope we can work together and create a dialogue in which
    we can find a way to better streamline those and be able to
    deliver those necessary and important resources to those
    affected communities.
        Senator Menendez. Mr. Chairman, I have a series of other
    questions. I will submit them for the record. I will be looking
    for substantive responses, and the lack thereof I will have a
    problem with moving the nominees to the floor and hold it on
    the floor until I get them.
        Senator Menendez. Thank you, Mr. Chairman.
        Chairman Crapo. Thank you.
        Senator Tester.
        Senator Tester. Thank you, Mr. Chairman, and thank you all
    for your willingness to serve.
        I am going to start with you, Mr. Rackleff. You are up for
    the position of Secretary of Community Planning and
    Development. In the Trump budget, the Housing Trust Fund has
    been eliminated, the Interagency Council on Homelessness has
    been eliminated, the HOME Program has been eliminated, and the
    CDBG Program has been eliminated. I want to follow up a little
    bit. You had mentioned in a previous question--I believe it was
    from the Senator from Massachusetts--that low-income tax
    credits could fill that void. Do you really believe that?
        Mr. Rackleff. I do not believe that I conveyed that low-
    income tax credits can fill every other financial void that is
    out there. My statement was simply that low-income tax credits
    are by far the largest source of equity----
        Senator Tester. OK. I got that. So is affordable housing
    important to you?
        Mr. Rackleff. Absolutely.
        Senator Tester. OK. So with those being zeroed out, how are
    we going to have any affordable housing initiatives? Anything
    come to mind?
        Mr. Rackleff. As I mentioned before, I support the budget
    as presented, and I will do everything I can to utilize funds--
    --
        Senator Tester. I appreciate that.
        Mr. Rackleff.----that I have at my disposal.
        Senator Tester. I got it. And as far as the Senator from
    South Dakota goes, who I have a tremendous amount of respect
    for, you are right, Congress is going to touch this budget. But
    if you do not advocate for stuff, how are we supposed to know
    where to put money?
        Mr. Rackleff. I will say that I have always been an
    advocate for those who are underserved, and I will continue to
    be.
        Senator Tester. I got it. But I am talking about from a
    funding standpoint and from a budgetary line-item standpoint.
    If you do not tell us that the CDBG Program is important or the
    HOME Program is important, how do we know where to put the
    money?
        Mr. Rackleff. I will provide good data on all of those
    programs if I am confirmed. I look forward to the opportunity
    to work----
        Senator Tester. I appreciate that. So I anticipate what you
    are saying is that, if you are confirmed, you will put
    recommendations forward to us on what line items need to be
    plussed up to be able to have more affordable housing in this
    country?
        Mr. Rackleff. I will certainly work with Secretary Carson
    and the Administration, and within that context, I will be an
    advocate for those----
        Senator Tester. And so if he says, ``No, we are sticking
    with this budget; we are not going to increase any of them,''
    do you intend to push back on that?
        Mr. Rackleff. Ultimately, I think it is critically
    important that our country moves toward fiscal responsibility
    and balancing the budget, and I think that there are
    macroeconomic concerns that are important. If we do not have a
    strong middle class, if we are not strong fiscally, we are not
    going to be able to help anybody.
        Senator Tester. OK. I agree with you. So let me give you an
    example of a town of about 8,000 people that I was at earlier
    this year that said, ``We cannot get any new businesses to come
    to our town because we have no place for the employees to live
    because we have no affordable housing.'' What do you suggest we
    do with that, with all these programs being eliminated? What do
    you suggest that I go and tell the city council of that town
    from a Federal level here is where you need to go to be able to
    address your needs of affordable housing?
        Mr. Rackleff. Well, I can tell you that I have worked in
    economic development not just in affordable housing----
        Senator Tester. I got it. You got a town in Montana. This
    is not an Indian reservation. It is 8,000 people. They cannot
    recruit any businesses because they have got no place for
    employees to live. Do I just say, ``Go get some low-income tax
    credits''? Or do I say, ``Get a hold of HUD and there are these
    programs that you will utilize'' if we do not plus those
    programs up?
        Mr. Rackleff. I will tell you that I have worked in small
    towns doing affordable housing exactly in the scenario that you
    have outlined.
        Senator Tester. Yep.
        Mr. Rackleff. And what you would use as the primary vehicle
    for over 90 percent of the equity you need would be the tax
    credit program.
        Senator Tester. I see--which you have no say over
    whatsoever.
        Mr. Rackleff. That is correct.
        Senator Tester. OK. So what is the purpose of HUD?
        Mr. Rackleff. The purpose of HUD----
        Senator Tester. What is the purpose of me confirming you in
    this position if you do not have any programs to help with
    affordable housing when your position is the Secretary of
    Community Planning and Development?
        Mr. Rackleff. Even though there are fiscal challenges that
    we are grappling with, there are still literally billions of
    dollars of Community Development Block Grant funds that are
    out--that have been granted to cities across the country, and
    there is a spending pipeline that takes quite a while to work
    through. So there is still a great deal of work to do no matter
    what happens to the Community Development Block Grant budget or
    HOME budget.
        Senator Tester. I got it.
        Mr. Rackleff. And I will be a wise steward of whatever
    resources----
        Senator Tester. And I have no doubt that you will be a wise
    steward of the resources that are there. But if there are no
    resources there, you do not have much stewardship to do. And I
    would tell you that as we move forward on this budget--and it
    is a common theme, and somebody has coached you well, and
    probably everybody else on this Committee--I hope not you, Mr.
    Campbell--to say, ``This is a budget that I support, and this
    is the way it is going to be, and this is how we are going to
    move forward.'' I agree with you, we need to get the debt under
    control. But I am going to tell you, if we have a substandard
    economy in this country--and you have that in rural America
    right now, especially with this budget--we need people fighting
    for us so that the Administration is going to come in and give
    us the honest to God truth that, ``Hey, you know what? This
    zeroes out CDBG.'' But CDBG is important. Would you guys plus
    it up? That is all I am asking for.
        You have had some experience; otherwise, you would not be
    here. You need to utilize that experience. I do not need to
    lecture to you, and I do need to see you this afternoon, Mr.
    Campbell. Thank you all very much.
        Mr. Campbell. Look forward to seeing you, Senator.
        Chairman Crapo. Thank you.
        Senator Schatz.
        Senator Schatz. Thank you, Mr. Chairman. Thank you to all
    of the nominees and their families. Congratulations.
        I want to follow up, Mr. Rackleff. You have done a number
    of deals in Houston.
        Mr. Rackleff. Yes, sir.
        Senator Schatz. And I am wondering if you can just take me
    through the capital stack of a typical project that you have
    been involved in. You say it is about usually 90 percent LIHTC
    and then 10 percent CDBG and other subsidies? Could you just
    walk me through it? If I am getting that wrong, that is fine.
    Just let me know what a typical deal would be like.
        Mr. Rackleff. Sure. Of the Federal funding involved, over
    90 percent would typically be Low-Income Housing Tax Credits.
    If you had, let us say, a 200-unit apartment complex that cost
    $20 million to develop, probably 70 percent of the financial
    resources would come from the sale of Low-Income Housing Tax
    Credit and the equity that is derived from that.
        The Federal sources of funding that we are responsible for
    often become gap fillers, so some projects need $1 to $2
    million of soft money from another source, and then there also
    is conventional debt, which is secured in the private markets.
        Senator Schatz. But that money that fills the gap is
    disproportionately important. Is that accurate?
        Mr. Rackleff. It can be. It really depends on----
        Senator Schatz. In other words, it is the difference maker;
    otherwise, it would not be----
        Mr. Rackleff. There is no question that it is important.
        Senator Schatz. OK. So let us just talk about LIHTC for a
    moment. I understand it is not under HUD. But the challenge
    with LIHTC in the context of tax reform, as people are
    anticipating lower corporate tax rates and the value of the
    LIHTC is going down, just anticipating tax reform. So I am
    wondering how you view LIHTC's value in the context of trying
    to get projects done if we lower the corporate tax rate. It
    seems to me that the thing that you are saying comprises most
    of the pot sweetener may be less sweet if we do tax reform in
    the way that it is being contemplated.
        Mr. Rackleff. Well, I can tell you that it is not clear to
    me what tax reform is being contemplated at this point. But,
    certainly, the markets like predictability, and the fact that
    there is some discussion of tax reform has caused tax credit
    equity prices to drop some. From a tax policy perspective, I
    would think we do not want the tail wagging the dog, though,
    and one program ought not to dictate an entire Nation's tax
    policy.
        I will say that as we----
        Senator Schatz. Right, but if we are committed to LIHTC as
    a matter of policy, if we are in the process of reducing
    corporate rates and that changes the incentivization of
    projects, we may end up wanting to increase the LIHTC value.
    And that is not your call----
        Mr. Rackleff. Yes, yes.
        Senator Schatz.----it is our call for sure.
        Mr. Rackleff. Yes, that is true. But it also depends on how
    depreciation is considered, and there are other economic
    factors that go into the pricing of tax credits.
        Senator Schatz. Sure. And I guess the point, following up
    on the Senators from Montana and Massachusetts, you are duty-
    bound to support the President's budget, and I do not want to
    get into it with you about that. But it is just very clear to
    me that your whole private sector existence, your mission--and
    your reputation is strong in this space--demonstrates the value
    of not just LIHTC but all of the HUD programs. And so you would
    be in a very difficult position to trash the President's budget
    at a nomination hearing. I will not ask you to do that.
        I do think it is really important that in the interactions
    both at the HUD level and with OMB that you make clear the
    devastating impact that some of these proposals will have. I do
    not want you to comment on it because I do not want to get you
    on the record declining to advocate for this, because I think
    this is critically important.
        Last question, Housing First. I talked to Secretary Carson
    about this. I believe very strongly in Housing First. It has
    worked in lots of cities and States. There is now bipartisan
    consensus. What we have in Hawaii is extraordinarily
    challenging. We have the unfortunate distinction of one of the
    highest increases in terms of our homeless population and some
    really unique challenges being the most isolated populated
    place on the planet.
        Can I get your commitment to help to implement Housing
    First policies wherever you have a partner in a city or a State
    or a county?
        Mr. Rackleff. Absolutely. I am very committed to Housing
    First as the most effective way to assist those who are
    struggling with homelessness. That is the way that we have
    cracked the code nationally and locally to figure out how to
    really help those who are chronically homeless.
        I will say also, though, too, that there has been a lot of
    discussion recently about the importance of transitional
    housing as well, housing that focuses on the needs of women who
    are victims of
    domestic violence, individuals with substance abuse. And I can
    tell you we funded some of those programs and projects when I
    was in Houston, and it was a really beautiful thing to see. We
    had an organization called the ``Men's Center,'' which was
    compromised of men who all were recovering alcoholics, who were
    the board of directors, and who worked together to help each
    other. And I really felt as I stood before those good people
    that we were standing on sacred ground.
        I will absolutely work with you to help implement Housing
    First in your State, and, you know, I spent a little bit of
    time in college there, so I have a special place in my heart
    for that part of the----
        Senator Schatz. I will look forward to sending you a demand
    letter.
        [Laughter.]
        Senator Schatz. Thank you.
        Chairman Crapo. Thank you, Senator Schatz.
        Senator Cotton.
        Senator Cotton. Thank you, and congratulations to all of
    you on your nominations, and thank you for your willingness to
    serve our country.
        Mr. Campbell, I want to speak about stress tests under the
    Dodd-Frank Act.
        Mr. Campbell. Yes.
        Senator Cotton. Stress tests are required of banks with
    more than $10 billion in consolidated assets. Those banks then
    have to provide annual reports. That does not seem like a lot
    in the grand scheme of banking. In Arkansas, that is a pretty
    big bank, though. We have three banks--the Bank of the Ozarks,
    Arvest, and Centennial--that fall into that range. We have one,
    Simmons National, which is just underneath it. Maybe they will
    pass the $10 billion mark soon. Maybe they will pump the
    brakes, as many banks have, specifically to avoid these kind of
    regulatory burdens. But do you believe that any of those four
    banks or any bank that size, you know, banks, say, in the $10
    to $20 billion range pose some kind of systemic risk to our
    financial system?
        Mr. Campbell. Senator, when addressing this issue, I think
    it is important to suggest that size is not everything in these
    areas. I think it is more of the activity that the institutions
    are involved in. And as you know, recently in a Treasury
    report, the Secretary suggested some modifications to the
    financial regulations in this area to make sure that the access
    to capital from small- and medium-sized banks is more readily
    available to your farmers and to businesses that need access to
    capital.
        If confirmed, I look forward to working closely with you
    and Members of the Committee to right-size and tailor those
    regulations in a way that will allow for greater access to
    capital for small- and medium-sized institutions.
        Senator Cotton. I think that is an important point. You
    know, a bank could be much larger than any of those banks. It
    could be tens of billions of dollars and engage in very
    ordinary, traditional, plain-vanilla-style banking without
    posing serious systemic risk.
        By contrast, a financial institution could actually be
    smaller than that, and because of the complexity of its
    transactions, its
    interlocking counterparties, its esoteric finances, it could
    actually pose greater risk.
        I personally do not think that requiring stress tests and
    annual reporting for banks of that size in Arkansas and all
    across the country is going to do much to make the financial
    market--I am sorry, the financial sector all that much more
    stable.
        Could you give us a brief account for what you think are
    the cost-benefit analysis of imposing that kind of regulation
    on banks of that size? What are customers losing out on when
    you have people at banks like Bank of the Ozarks or Centennial
    or Arvest engaged in these fairly onerous annual regulatory
    compliances as opposed to doing banking work?
        Mr. Campbell. Certainly, there is an opportunity cost. You
    know, every dollar a bank spends to--a cost of compliance is
    one less dollar that they can give to the consumer and to allow
    for access to the capital markets. And so, again, I think we
    should right-size--if we are looking at financial regulations,
    we should right-size and tailor them to the activities. And as
    you noted, it is not--it really genuinely is not the actual
    size of the bank, but it is more what the bank is doing that we
    should be looking into. Again, I look forward to working with
    you. I know that you have done a lot of research on this. And,
    of course, as is usually the case, a strong analysis of the
    cost to the consumer needs to be done before any regulations
    are promulgated.
        Senator Cotton. Thank you for that, because in the end what
    we are talking about here are customers of banks, you know,
    consumers, businesses, and so forth. So if you are a farmer
    trying to get a loan for your seed, or you are a young married
    couple with a child on the way that wants to get into a home
    for the first time, or you are a small business that wants to
    expand a factory or maybe you want to create a factory where
    you are going to employ Arkansans, what you want are those
    banks competing for your business. And trust me, they compete a
    lot, even if they have an aligned interest when it comes to not
    complying--or not having to comply with so many onerous and
    needless regulations. And that is where I think our focus
    should be.
        In the time I have remaining, I want to turn, Mr. Compton,
    to you and specifically ask you about the Affirmatively
    Furthering Fair Housing policy of the last Department of
    Housing and Urban Development. Along with about 20 of my
    colleagues, we sent a letter to Secretary Carson last week
    asking him to reverse this policy, which I think is gross
    social engineering, trying to impose nationwide zoning
    standards on communities with very little, if any, evidence of
    discriminatory intent or even discriminatory impact.
        Could you give us your thoughts on the Affirmatively
    Furthering Fair Housing policy?
        Mr. Compton. Yes, Senator, I am glad to do that.
    Affirmatively Furthering Fair Housing comes out of two fairly
    vague and general statements in the Fair Housing Act that
    direct the Department to essentially follow the spirit of the
    law, and from that the prior Administration's Affirmatively
    Furthering Fair Housing rule, while the rule itself is not very
    long, certainly the promulgating releases have a great deal of
    complexity. And I think one of the challenges that we see in
    the rule looking at it on its face is that everyone could pass
    or everyone could fail. And so I think that is--in terms of
    given that that is a regulation that is on the books today and
    that the Department is charged with implementing it, this
    initial implementation of it is really key to ferreting out
    whether it is viable.
        Senator Cotton. Well, thank you. My time has expired. I
    just want to say that I, like you, like Secretary Carson,
    oppose discrimination in all forms and want to make sure that
    that is not happening. But at the same time, we should not be
    using vague and general housing laws to impose a social
    engineer's vision of what communities should look like from
    Washington, DC. That is why we have State and especially local
    governments.
        Chairman Crapo. Thank you.
        Senator Cortez Masto.
        Senator Cortez Masto. Thank you, and thank you to the
    nominees for your willingness to serve. Welcome. Welcome to
    your family members. And thank you also for meeting with me. I
    know some I have had the opportunity to meet with. Some of you
    have met with my staff. I really appreciate that opportunity.
    And then for the two of you that I have already talked with on
    Commerce, I am not going to direct my questions to you because
    I have already had the opportunity.
        Let me start with Mr. Rackleff. Mr. Rackleff, on July 5th I
    sent a letter, along with 28 of my colleagues, requesting
    information about LGBTQ nondiscrimination guidance that
    apparently had been pulled down from HUD's website. This
    guidance was arrived at in consultation with direct service
    providers and is meant to help grantees comply with the law.
        When Secretary Carson had been asked about this during
    House and Senate Budget hearings, he said that the Department,
    and I quote, ``was looking at it and determining whether it was
    effective.''
        As head of Community Planning and Development, you will be
    entrusted with ensuring that the CDBG, the HOME Program, and
    homelessness service providers obey their nondiscrimination
    obligations under the law. If confirmed, will you commit to
    promptly restoring the resources to HUD's website?
        Mr. Rackleff. I am not familiar with the details of that
    situation, and so, if confirmed, I can commit to you that I
    will look into it and do what I think is right.
        Senator Cortez Masto. And can you commit to a timeline
    within which you will take a look at that and get an answer
    back to us?
        Mr. Rackleff. Yes, ma'am. I would look at that within 2
    weeks.
        Senator Cortez Masto. Thank you very much. I appreciate
    that.
        And then, Ms. Farias, if confirmed, you will be the Fair
    Housing Chief at HUD. Do you commit to bringing cases enforcing
    against LGBTQ discrimination if the evidence demonstrates that
    there has been a violation of HUD's equal access rules?
        Ms. Farias. Yes, I do.
        Senator Cortez Masto. Thank you. And then, also, HUD
    conducted the first ever study of discrimination faced by LGBTQ
    people in the rental market. Will you commit also to continuing
    this research during your tenure, if confirmed?
        Ms. Farias. Yes, I do.
        Senator Cortez Masto. Thank you very much. I appreciate
    that.
        And then let me just follow up with the conversation you
    had with my colleague, Senator Schatz. I, too, think the
    Housing First model is very appropriate, so I appreciate your
    comments and continuing to support it and work through those
    issues. So thank you very much.
        Mr. Campbell, I have a few questions for you as well.
        Mr. Campbell. Yes.
        Senator Cortez Masto. When the Treasury Department released
    its report seeking to identify ways to roll back financial
    protections, Secretary Mnuchin noted that about 80 percent of
    the report's recommendations could be implemented
    administratively, without Congress. This came as troubling news
    to some of us who think a much more nuanced approach narrowly
    addressing community financial institutions and balancing the
    need for consumer protection is more appropriate.
        As a long-time staffer of the legislative branch, you have
    made it clear that you respect the rollback of Congress in
    exercising its will and providing an important counter-weight
    to the executive branch. If confirmed, will you commit to
    working with Congress in a bipartisan manner when it comes to
    financial rules rather than pushing through 80 percent of its
    report's recommendations without input from Congress as
    proposed?
        Mr. Campbell. Senator, I know from my 17 years working up
    here in this body, the most lasting change that could be made
    is a bipartisan change through the Senate and through the
    Congress. I am aware of some quiet conversations that are
    bipartisan to try to find a path forward, a bipartisan path
    forward to readdressing some regulations that we could perhaps
    find consensus on.
        If confirmed, I look forward to working with you and
    Members of the Committee that are interested, and their staffs,
    to helping facilitate those conversations and trying to find a
    bipartisan legislative path forward to right-size and tailor
    where appropriate regulations related to financial markets and
    financial institutions.
        Senator Cortez Masto. I appreciate that. And then the
    report also, to my chagrin, included no mentions of ways to
    bolster consumer and investor protection, though it has dozens
    of proposals for ways to weaken rules for some of the largest
    banks. And I understand that future reports from the Treasury
    are forthcoming, and you would be in a position to work on such
    reports in your new rule.
        If confirmed, will you work with Congress to incorporate
    recommendations related to needed consumer and investor
    protections in subsequent Treasury reports?
        Mr. Campbell. Senator, I think, if confirmed, there is no
    more important job that I would have than the protection of
    consumers. And, absolutely, you have my firm commitment that I
    will work with you, Members of this Committee, and off this
    Committee to better understand your priorities and, where
    possible, fold those priorities into the reports that are
    forthcoming.
        Senator Cortez Masto. Thank you. And I notice my time is
    almost up. Let me just say thank you all again, incredible
    resumes, incredible backgrounds. And your willingness to serve,
    I so appreciate it. Also, please excuse me for bouncing back
    and forth. I have an Energy Committee going on at the same
    time. But thank you again, and thank you to your family members
    for being here as well.
        Ms. Farias. Thank you, Senator.
        Mr. Campbell. Thank you.
        Mr. Compton. Thank you.
        Chairman Crapo. Thank you very much, and that concludes the
    questioning for the hearing. We have a number of letters in
    support of various candidates, and I ask unanimous consent to
    include those letters in the record. Hearing no objection, that
    is ordered.
        Chairman Crapo. I again want to thank each of you for
    coming and participating today in the hearing, and I thank you
    for your service and your willingness to assist our country.
        For Senators, all follow-on questions need to be submitted
    by the close of business on this Thursday, July 20th. And for
    our witnesses, the responses to those questions should be
    turned in by Monday morning if you can. So please respond
    quickly.
        With that, the hearing is adjourned.
        Senator Brown. Thank you, everybody.
        Chairman Crapo. Senator Brown and I have to run to another
    hearing together.
        [Whereupon, at 11:35 a.m., the hearing was adjourned.]
        [Prepared statements, biographical sketches of nominees,
    responses to written questions, and additional material
    supplied for the record follow:]
                PREPARED STATEMENT OF SENATOR RICHARD C. SHELBY
        Mr. Chairman, I believe we have a distinguished group here from Mr.
    Compton to Mr. Campbell. Everybody is ready to go to work. The
    Administration needs these people. I call this a sterling group. I
    would like to say a few words about Mr. Compton. He is well-known in my
    State in the area of housing. As he said in his opening statement, he
    has been involved in development of low-income housing and community
    development. He knows this industry and the related case law. We are
    proud that he is taking a job at HUD, and I am also proud of all of the
    nominees for accepting the responsibility of Federal service. I look
    forward to supporting all of you. I would ask--I have a number of
    questions, but I would submit those for the record and I would like for
    my opening statement to be made a part of the record. Mr. Chairman, I
    hope you and Senator Brown can expedite these nominees as soon as
    possible.
                                     ______

                       PREPARED STATEMENT OF PAUL COMPTON
       To Be General Counsel, Department of Housing and Urban Development
                                 July 18, 2017
        Thank you, Chairman Crapo, Ranking Member Brown, and this entire
    Committee for the opportunity to testify before you today. I am honored
    to have been nominated by the President and, if confirmed, to have the
    privilege to work with and for Secretary Carson.
        I want to begin by introducing my wife of almost 30 years, Dana,
    and our three children: Catherine, Jerome, and Anne. I also would like
    to introduce my son in law, Cameron Pulsifer, who is making his first
    visit to our Nation's capital.
        Mr. Chairman, when I was in law school at the University of
    Virginia I had the distinct honor of visiting with Justice Lewis
    Powell, who had just retired from the Supreme Court and was spending a
    semester at the law school. When I asked him where I should practice
    the law, his response was: ``Go somewhere you can make a difference.''
        I followed that advice. I returned to my native Alabama, where I
    have practiced law with the same firm, Bradley Arant, for 28 years.
    Back in the early years, as a young attorney, I was initially attracted
    to the banking area of legal practice. Increasingly, however, I found
    myself focusing on housing issues. It proved to be a natural fit. I
    realized I could make a profound difference by using the law to help
    create shelter and security for vulnerable people while builders and
    investors reinforced the local economy. So I became more involved in
    affordable housing--and jumped at the chance when asked to find a way
    for a local bank to be an equity partner in a planned apartment
    building to house low-income residents in Tuscaloosa--a novel question
    at the time. I succeeded--with results that were gratifying--and my
    career took on a new emphasis.
        Over the next several years, I represented that bank in 70
    transactions as it grew to become a regional institution, creating more
    than 5,000 units of affordable housing throughout the southeast United
    States. Since then, I've worked on hundreds of affordable housing
    transactions, with other investors, developers, lenders, and public
    housing authorities in public-private partnerships that benefited low-
    income housing residents. I've often noted that the complexity of
    transactions goes up exponentially with the number of parties and
    programs involved. And some of these transactions were indeed
    enormously complicated, but we almost always found a way to succeed. I
    encouraged clients to think of themselves as repeat players, to focus
    on their long-term reputation, and to look for win-win solutions. I
    think because of that approach, I was tapped to serve as the outside
    General Counsel to the Alabama Affordable Housing Association.
        Which brings me to the present day and my nomination to serve as
    HUD's next General Counsel. As I look back on Justice Powell's advice
    to me all those years ago, I can't help but think I'm still heeding his
    words to this very day. HUD is a place where I can make a difference
    for our fellow citizens. If confirmed, I will strive each day of my
    tenure to ensure that the Department and its 8,000 dedicated employees
    operate in a legal and ethical manner. I will work to apply the law
    thoughtfully, vigorously and as Congress intended. And I pledge to work
    with all the Members of this Committee to find solutions to our
    Nation's housing challenges, and to eliminate barriers to affordable
    housing.
        Mr. Chairman, I'm grateful to this Committee for holding this
    hearing on my nomination, and what I hope are my two future HUD
    colleagues. I look forward to addressing your questions.

                    PREPARED STATEMENT OF ANNA MARIA FARIAS
       To Be Assistant Secretary for Fair Housing and Equal Opportunity,
                  Department of Housing and Urban Development
                                 July 18, 2017
        Thank you, Chairman Crapo, Ranking Member Brown, and all the
    distinguished Members of this Committee.
        I would like to thank President Trump for nominating me to serve as
    HUD's Assistant Secretary for Fair Housing and Equal Opportunity and
    Secretary Carson for his strong support of my nomination.
        I would also like to recognize the person who has been the most
    important part of my life, my mom, Ofelia Gutierrez, who is not here
    today because she is 89 years old and disabled. But she will be
    watching us. I am an only child and my cousins will watch the
    proceedings later because they are working and that is exactly where I
    want them--working.
        I would also like to recognize the Honorable Kim Kendrick, former
    Assistant Secretary under President George W. Bush, and my fellow HUD
    nominees here on the panel. If confirmed, I look forward to working
    with them.
        The mission at HUD is to provide access to safe, affordable housing
    to all Americans and my job would be the Chief Enforcer of the Nation's
    fair housing laws. I am fully, strongly committed to those laws. FHEO
    leads the Nation in the development, enforcement, and public
    understanding of the FairHousing Act.
        I come before you with over 20 years of Federal Government
    experience, including eight at HUD.
        But, before that, you should know that I am a product of public
    housing. I grew up in the Housing Projects of Crystal City, Texas, a
    small town of 8,000. I am the only child of a single mother with a
    third grade education making $12-$20 working 6 \1/2\ days per week as a
    domestic.
        My mother insisted that I get an education. She always said that
    her work was honorable and honest but she wanted something different
    for me.
        My mother was willing to sacrifice in order to give me an
    opportunity to succeed and I quickly realized that hard work in my case
    could achieve success, not just survival.
        As my high school valedictorian, I received a full scholarship to
    Boston University where once again I was blessed to come across someone
    who had my best interest at heart, a young philosophy professor who
    became my mentor. His name: William J. Bennett.
        When he became Secretary of Education, I left a safe Government job
    and spent 4 years working alongside him--never a dull moment.
        In between Administrations, I did the one thing I said I was never
    going to do--go back to a small town. I became the Executive Director
    of the housing developments where I grew up and became one of the first
    Executive Directors in the country to agree to live in the housing
    developments. The Board of Commissioners assigned me to what was then
    called Project Terror, the site of some murders, rapes, child
    prostitution, child pornography and drug dealing. My job was to clean
    it up.
        I was able to do so only because the majority of the residents
    wanted the same things for their children and grandchildren that my
    mother had wanted for me when I was a child--safety and an education.
    Working with the residents, the Housing Authority received over a dozen
    awards and I was inducted into the Texas Woman's Hall of Fame.
        Mr. Chairman, FHEO is an extremely important office to millions of
    Americans. If confirmed, my approach will be what it's always been. To
    follow the statute, the rules, and the facts. I will seek to enforce
    the fair housing laws vigorously and in an impartial manner. And I
    pledge to work in a bipartisan manner with this Committee and all of
    Congress to meet the housing challenges facing our Nation.
        I thank the Members of this Committee for the honor and opportunity
    to appear before you today. I stand ready to answer your questions.

                      PREPARED STATEMENT OF NEAL RACKLEFF
       To be Assistant Secretary for Community Planning and Development,
                  Department of Housing and Urban Development
                                 July 18, 2017
        Thank you, Chairman Crapo, Ranking Member Brown, and all the
    Members of this Committee for inviting me to testify today.
        I am delighted to introduce my wife of 29 years, the lovely Christa
    Rackleff. She is the pillar of strength in our family, my best friend,
    and in every way my better. Two of our great children, Eve and Karen,
    are with us today. Our other two children, Stephen and Annie, and our
    son-in-law Brett, were unable to attend. My family is the most
    important thing to me in time and eternity.
        Mr. Chairman, I am honored to be nominated to serve as Assistant
    Secretary of Community Planning and Development at the Department of
    Housing and Urban Development.
        For over 20 years I've worked at the intersection of the public and
    private sectors, doing real estate development focused on resurrecting
    ailing communities and providing high quality housing for hard working,
    good people who--despite their best efforts--are still in need.
        I started on this path as a young city attorney in the mid-90s.
    Downtown Houston was in trouble, property values were declining and
    population was fleeing to the suburbs. Under the direction of a
    visionary Mayor, I served on the team that successfully implemented
    public-private partnerships to redevelop historic downtown properties
    and revitalize a public housing complex that had been mired in
    litigation for years.
        Houston not only turned around, but came roaring back, after these
    projects ignited a downtown renaissance. I was blessed to learn from
    some of the brightest legal and real estate experts in the city's
    history. We used private sector creativity and innovation to achieve
    results with the public sector that neither sector could have
    accomplished alone.
        Public-private partnerships can affect incredible change. For
    example, a terribly blighted apartment complex plagued a Houston inner-
    city community. For more than 10 years, local, State and Federal
    officials tried to condemn and demolish the structure, but a wily slum
    lord successfully slipped from their grasp. My team took a different
    approach--we analyzed the market forces at work, then partnered with
    the local school district and used funds, from a tax increment finance
    district and the school district, to purchase and demolish the slum
    property. An elementary school stands today on the former epicenter of
    blight that was dragging down an entire neighborhood.
        My faith has been a formative factor in focusing on families in
    need. I served as the Bishop of an inner-city congregation for many
    years and saw first-hand how hard so many people struggle to meet basic
    needs. And I became convinced that most people struggling with poverty
    desire a hand up rather than a hand out. So I decided to do what I
    could to be part of the solution in helping people become self-reliant.
        That faith motivated me to leave my private law practice at Locke
    Lord and return to the city to serve in the Housing and Community
    Development Department. I hoped to be able to ``give back'' in some way
    to the great city that had afforded my family such great opportunities.
        When I took the reins as Director, the department was struggling.
    Looming over it were 102 HUD findings and over $80 million in potential
    fines. But a great team pulled together and not only cleared every
    finding--we transformed our department to one of the most effective in
    the Nation.
        During my tenure, the department financed completion of 7,800 high-
    quality affordable multifamily housing units, with another 2,700 in
    progress. And we assisted 1,700 single-family homeowners with
    reconstruction of hurricane-damaged homes, financial assistance for
    low-income home buyers, and emergency home repairs.
        Houston has an unstoppable ``can-do'' spirit. During this same
    timeframe, the city, Harris County, the for-profit and nonprofit
    sectors, partnered with HUD to alleviate homelessness. Within a few
    years, we reduced chronic homelessness by more than 70 percent and
    became the first major city in the country to effectively eliminate the
    homelessness of veterans.
        Unfortunately, Houston's spirit has been tested by nature's
    catastrophic forces. I am grateful that during my tenure at the Housing
    and Community Development Department, we turned around a troubled $109
    million Disaster Recovery Round 1 program. We also received an
    additional Disaster Relief grant of $178 million in Round 2. I am very
    proud of this work to help the people of Houston as we confronted the
    aftermath of nature's fury.
        I've become convinced that the democratization of data is key to
    more effective governance. In the aftermath of severe flooding, I
    worked with a coalition of faith-based and nonprofit groups to
    alleviate suffering in Houston. We mined the city's fire, police and
    public works databases, to generate GIS maps enabling churches and
    civic groups to locate and serve the elderly and disabled who
    desperately needed help. We then utilized an open-source social media
    platform to share data and avoid duplication of efforts as the various
    philanthropic groups worked together in the same space.
        I have been amazed to see the successes that are possible in
    ameliorating suffering when people put aside differences and ideologies
    in a united effort to help their neighbors. Love has animated the work
    I have been a part of and I have loved serving others. The reason I am
    offering to serve at HUD is that I hope to have the opportunity of
    doing more to help my fellow Americans.
        Mr. Chairman, thank you for this opportunity to appear before you.
    Thank you to the entire Committee. I welcome your questions.

                      PREPARED STATEMENT OF RICHARD ASHOOH
      To be Assistant Secretary for Export Administration, Department of
                                    Commerce
                                 July 18, 2017
        Thank you Chairman Crapo, Ranking Member Brown, and distinguished
    Members of the Committee. I am honored to have this opportunity to
    appear before you today, and am grateful to the President and the
    Secretary of Commerce for their confidence in me to serve in this
    capacity. I would like to acknowledge and thank the members of my
    family who are joining us, as well as the many friends in the room.
    Their support means a great deal to me. I would also like to
    acknowledge the memory of Senator Warren Rudman, who was a boss, mentor
    and friend. His example of fidelity to the country, to his colleagues,
    and to the Constitution still stands as guiding principles in my own
    life.
        Everyone in America is familiar with the Boston Tea Party. But you
    would have to hail from New Hampshire as I do to have any idea of the
    Pine Tree Riot. Briefly, the Pine Tree Riot was a pre-revolutionary
    protest in New Hampshire against the British Crown's attempt to
    regulate the colonial pine tree trade. This is significant because
    these mighty pine trees made the best ships' masts, and the King
    reserved them for the Royal Navy, allowing Great Britain to project
    power all over the world. The colonists rejected this intrusion into
    their economy and livelihoods, and the Pine Tree Riot was one of
    several incidents that led the way to Revolution.
        Why this obscure history lesson? Those pine trees were the turbofan
    engines of their day--technology that was vital both to national
    security and civilian commerce. The Crown's behavior was in effect an
    export control--one that didn't work out very well for the King. The
    point is the need to weigh the national security implications of our
    technology trade has been with us since before we were a Nation.
        The position to which I have been nominated sits at the
    intersection where national security, technology, and the economy meet.
    Never has this juncture been more critical. The number and nature of
    the threats facing our nation--from state and nonstate actors alike--
    has grown. Meanwhile, the pace of technology has not only accelerated
    dramatically--it has shifted. The national security establishment once
    led areas of technology development that are now driven by the
    commercial sector. The responsibility for eliminating the
    vulnerabilities to our Nation presented by these dynamic shifts--while
    encouraging robust trade in the technology sector--rests squarely with
    the Bureau of Industry and Security. The workload at BIS--which has
    increased and will continue to do so--further reflects these trends.
        Both my desire and readiness to serve in this capacity is a product
    of a career spent advancing key elements of this mission. Early in my
    career as a Senate staffer, I was privileged to work on issues
    concerning technology transfer--both illicit and inadvertent--to
    adversary nations. It is noteworthy that the global parties of concern
    at that time--specifically China, the Soviet Union, and Iran--occupy
    more or less the policy priorities BIS faces today. After more than two
    decades of experience in the aerospace industry, where I was able to
    work on behalf of some of our Nation's most advanced technology
    enterprises, the strictures of the U.S. export control regime were, and
    still are, well known to me. I understand better than most both the
    challenges and necessities associated with technology development,
    believing that our success as a Nation is underpinned by our ability to
    remain ahead of our adversaries in this area, both commercially and
    strategically.
        These experiences have imparted to me countless lessons that can
    help advance the critical mission of the Bureau, especially in these
    challenging times. Should I be honored with confirmation, I would look
    forward to working with you as we endeavor to meet these challenges.
        Thank you again for the privilege of being with you today, and I
    look forward to your questions.
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                   PREPARED STATEMENT OF ELIZABETH ERIN WALSH
     To be Assistant Secretary for Global Markets and Director General of
       the United States and Foreign Commercial Services, Department of
                                    Commerce
                                 July 18, 2017
        Thank you Chairman Crapo, Ranking Member Senator Brown, Members of
    the Banking Committee. I am grateful for the opportunity to appear
    before you today. I am very honored to be here as the President Trump's
    nominee for Assistant Secretary for Global Markets and D.G. for the
    U.S. and Foreign Commercial Service.
        And I am so honored to have my family with me on this special day.
    If you don't mind, I would like to take a moment to introduce them. My
    mother, June and my father Michael a retired attorney--they both served
    in the Reagan and Bush administrations. My sister Molly, currently
    serving at the Department of Defense and my beloved sister Anne. While
    my parents met in Washington, we grew up in Portland Oregon.
        I bring to this nomination over 30 years of public and private
    sector experience. During this time, I have built a strong track record
    in four key areas: Strategy and Program Development for market entry/
    expansion, political and/or policy advancement; Design-Build Scalable
    Models to promote products or programs regionally or globally; Complex
    Negotiations; and Public-Private Partnership Creation at local,
    national and international levels. I have extensive knowledge of
    foreign affairs in Asia, Middle East, and Africa and have traveled or
    worked in 100 countries.
        I earned my undergraduate work at Georgetown University and started
    as an intern for 3 years at the White House before landing a full-time
    position in the Office of Political Affairs. I also worked at the
    Department of Energy, and from there had the opportunity to join the
    U.S. Department of State and serve as the Deputy Manager and then
    acting Manager of Blair House, the President's guest house. During my
    tenure there, we hosted over 60 heads of State and Governments. I was
    then asked by Ambassador Thomas Pickering to come to the U.S. Mission
    to the U.N. and serve as Chief of Protocol. It was an incredible 5
    years in the world's largest diplomatic community. But starting in 1992
    I started to see cables come across my desk that seemed unimaginable.
    Particularly after witnessing the revolutionary fall of the Berlin wall
    in 1989 and the euphoria that came with it. These cables referred to
    the conflict in Bosnia. As I continued to read the news and the cables
    I felt I had to go to see for myself. I resigned my position at USUN to
    join UNICEF as head of emergency operations in Tuzla during in 1994. I
    later left Bosnia to attend graduate school at the London School of
    Economics and then returned to Sarajevo to work with the U.N. as an
    Economic and Political Affairs Officer. In preparing for post war
    conflict operations, there was an enormous gap in the lack of focus on
    economic development and investment. Over 20 years later, we can see
    the outcome and results today. No economic development, high
    unemployment and the presence of ISIS in Europe.
        After returning from Bosnia, I came home and wrote a proposal
    focused on Education, Technology and job creation and got an offer from
    Cisco. The firm provided a platform allowing me to build a strong
    partnership organization to bring the Cisco Networking Academy Program
    to 90 countries, in Africa, Asia Pacific, central America and included
    41 of the Least Developed Countries in the world. In the late 1990s we
    began to strong Chinese investment in these areas. Times were changing
    and so was the playing field.
        After several years in the private sector, I returned to the State
    Department in 2005 to serve as Senior Advisor in the Bureau of Near
    Eastern Affairs. I was recruited to formulate and execute a strategic
    plan to advance U.S. policy interests, strengthen alliances and
    establish and/or expand programs focused on women across 16 countries
    in the Middle East and North Africa. I also served on the U.S.-Saudi
    Arabia Strategic Dialogue, Human Development Working Group.
        I was then hired by Goldman Sachs to lead the firm's philanthropic
    activities in Asia Pacific. I developed a long-term strategic platform
    in Asia, seeking to foster economic growth and opportunity, through
    investment in the community, public engagement and partnership
    building. I incorporated global Goldman Sachs Foundation programs and
    Goldman Sachs Gives, and created a portfolio of multi-year, regional
    and country specific programs aligned with the firms focus and the
    economic/development goals of 11 countries where investments had been
    made. Major programs included: Goldman Sachs 10,000 Women Initiative
    (40 percent of women from Asia); China Breast Cancer Initiative.
        From what I have seen first-hand the role that the private sector
    can play in facilitating and enhancing America's prominence abroad and
    in advancing U.S.
    values.
        I know the critical role the U.S. Government plays in leveling the
    playing field to ensure U.S. companies can compete abroad, and to
    ensure that our foreign competitors abide by their commitments and play
    by the same rules.
        I have also seen what happens when U.S. policy is not carried out
    or implement in a way that facilitates business.
        I am passionate about the mission of the Department of Commerce and
    can think of nothing more meaningful or impactful than creating jobs
    through promoting U.S. exports or attracting foreign direct investment
    into the United States. In addition, I believe the direction that
    Secretary Ross is taking to ensure we have fair and reciprocal trade
    with our partners will ensure America's continued growth and vitality.
        I am deeply grateful to President Trump and Secretary Ross for
    their leadership. I am honored to be nominated by the President and am
    grateful to the Secretary for his confidence and support.
        In the past couple of weeks, I have had the opportunity to meet
    with a number of the dedicated civil servants and foreign commercial
    officers who constitute the leadership of the International Trade
    Administration's Global Markets, and the U.S. Foreign Commercial
    Service, and I find in them a kindred spirit, one that is driven to
    help American companies succeed. Because they share my belief that
    there is nothing more meaningful or powerful than helping to create
    jobs that put people to work. Trade, exports and FDI are a powerful
    engine for economic growth. With 95 percent of the world' population
    outside of the United States and more than 1 in 5 American jobs
    supported by trade, the Office of Global Markets has a critical role to
    play. Last year alone, for every $1 appropriated to Global Markets, an
    estimated $192 was returned to the American economy in the form of
    increased exports and foreign direct investments for a total impact of
    $62.2 billion, which supported approximately 300,000 U.S. jobs.
        If confirmed I look forward to having the opportunity to lead this
    organization, and will bring to it my global experience and business
    background as well as my knowledge of how to leverage Government
    resources to ensure its efficiency and effectiveness. Thank you for
    your time today and for your consideration of my nomination.
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

                   PREPARED STATEMENT OF CHRISTOPHER CAMPBELL
    To be Assistant Secretary for Financial Institutions, Department of the
                                    Treasury
                                 July 18, 2017
        Chairman Crapo, Ranking Member Brown, and distinguished Members of
    the Senate Banking Committee, thank you for the opportunity to appear
    before you today and for considering my nomination to be Assistant
    Secretary of the Treasury for Financial Institutions. I am deeply
    honored and humbled to have been selected for this position and am
    grateful to President Trump and Secretary Mnuchin for this opportunity
    to continue my career in public service in a different venue.
        Before I get too far into my statement, I do want to recognize the
    members of my family who are in attendance today. With me today are my
    sister Michelle, my brother-in-law Richard, my brother Eric and my
    sister Catherine. I also want to acknowledge my two other siblings that
    could not make it here today, my brothers Scot and Marc. My mother also
    would surely like to be here today, however she is too ill to travel.
    But, I know she is watching from home. While my father passed away a
    few short years ago, I know that he would have been proud to sit in
    today's audience as well. I also want to acknowledge the many friends,
    colleagues, and former colleagues who are here, many of whom have flown
    in for the occasion.
        I want to thank every one of them for being here and for their love
    and support. One does not receive opportunities like this without years
    of help from many, many people, and that is certainly the case for me.
        I come from the humblest of beginnings. I lived most of my
    childhood in poverty, really never thinking that I would be afforded
    the opportunities that have been presented to me over the last two
    decades.
        The first great opportunity that came my way was the chance to join
    Senator Orrin Hatch's campaign for President as the National Field
    Director. I think Senator Hatch would agree that, after that initial
    experience in politics and public service, there was nowhere to go but
    up.
        Despite the results of that particular campaign, the Senator asked
    me to run his 2000 Senate reelection campaign. This was, to say the
    least, a lot of responsibility for a relatively inexperienced kid, but,
    thankfully, the campaign was a huge success and I have worked with
    Senator Hatch in a variety of capacities since that election, most
    recently as Staff Director for the Senate Finance Committee.
        I am, of course, grateful to Senator Hatch for his support and
    encouragement over these many years. He has been a mentor to me and I
    certainly would not be here if not for his skillful tutoring.
        During my time in the Senate, I have worked very hard to cultivate
    a reputation for three things.
        First and foremost, I have sought to be known as an effective
    advocate and strategist for achieving the goals of my employer, whether
    it is the Senator or the Committee.
        Second, I have worked to be known as one who prefers and
    effectively facilitates bipartisan cooperation. Throughout my career, I
    have begun every effort with the presumption that a bipartisan result
    would be preferable and more enduring than a partisan one, and have
    worked to achieve those types of outcomes.
        Finally, I have endeavored to build a reputation for being a good
    manager and leader. On the Finance Committee, Chairman Hatch and I have
    put together an effective and professional staff. Leading this team has
    been one of my proudest professional achievements.
        Our committee has the broadest jurisdiction of any in Congress,
    encompassing every page and word of the tax code, all major Federal
    health programs, huge portions of the social safety net, including
    Social Security, and our Nation's trade policy. Overseeing the
    Republican efforts on the committee has required not only policy
    knowledge and experience, but also the ability to manage different
    people with varying skillsets and expertise.
        And, I believe we've been successful. In the last Congress alone,
    the Finance Committee reported a record number of bills--several dozen
    in fact--all of them bipartisan. And, the vast majority of those bills
    were eventually signed into law.
        I can't take credit for everything the Finance Committee has
    accomplished while I've been there. The credit belongs to Chairman
    Hatch, Ranking Member Wyden, and Senator Baucus, who was chairman when
    I first started there, and all of the Members on both sides of the
    dais.
        But, once again, during my time on the committee--and throughout
    all my time in the Senate--I have sought to leave a mark and build a
    reputation for being an effective advocate, a bipartisan facilitator,
    and a strong leader.
        Chairman Crapo, Ranking Member Brown, I have had to privilege to
    work closely with both of you, as well as with many other Members of
    this Committee. As you consider my nomination, my hope is that my
    efforts to build that kind of reputation have been successful and that
    I have displayed to you those types of characteristics.
        The Assistant Secretary of the Treasury for Financial Institutions
    is responsible for leading Treasury's efforts to monitor and regulate
    our Nation's banks and securities markets and to ensure our financial
    sector is resilient in times of crisis. In addition, it is responsible
    for coordinating, among other things, Treasury's work on financial
    education, consumer protection, community development, affordable
    housing, and cybersecurity.
        In other words, the position has a broad focus, dealing with our
    largest banks and investment companies as well as small community
    organizations. This is not unlike the broad jurisdiction of the Senate
    Finance Committee. Successful leadership from this position will
    require great management skills and the help of the talented career
    staff at the department. In addition, it will require the ability to
    balance what are, at times, competing interests of financial
    institutions--large and small--their customers and practices, and the
    American taxpayers. I believe that my experience has prepared me well
    for this position.
        I think it's safe to say that few, if any, nominees considered by
    this Committee have ever been more cognizant of the need for
    cooperation between Congress and agencies in the executive branch. If
    confirmed, I will look forward to working with the Members of this
    Committee to ensure safety and soundness of financial institutions and
    practices, fairness, and avenues through which the financial sector
    works to facilitate economic growth and opportunities for all
    Americans.
        Distinguished Members of the Committee, thank you for consideration
    of my nomination and I look forward to answering your questions.
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

       RESPONSE TO WRITTEN QUESTIONS OF SENATOR BROWN FROM PAUL
                                COMPTON

    Q.1. There is broad agreement in the courts that the Federal
    Fair Housing Act applies to discriminatory practices of
    homeowners' insurers. In the more than 20 years since the Fair
    Housing Act was amended and HUD issued interpretive
    regulations, every court to consider the issue has held that
    the Fair Housing Act prohibits acts of discrimination by
    homeowners' insurers. Specifically, courts have found that the
    discriminatory practices of homeowners' insurers violate 42
    U.S.C.  3604(a), (b) and  3605.
        Courts have found that because the ability to obtain
    insurance is inexorably linked to the ability to obtain
    housing--i.e., adequate insurance is necessary to own or rent
    housing--insurance discrimination violates the ``otherwise make
    unavailable or deny'' provision of section 3604(a).
        Given the strong case law concerning the applicability of
    the Fair Housing Act to the insurance industry, what is your
    position on HUD's Discriminatory Effects rule and its
    applicability to the insurance industry?

    A.1. If confirmed, I would be responsible for the Department's
    enforcement and litigation involving the Discriminatory Effects
    rule. As I have been informed by HUD staff that there is
    currently pending litigation, it would be inappropriate for me
    to comment on this matter.

    Q.2. Do you support HUD's Affirmatively Furthering Fair Housing
    (AFFH) rule, and will you commit to implementing it?

    A.2. Based on my reading and understanding of it, and without
    the benefit of any discussions with HUD personnel, the AFFH
    rule seeks to integrate communities by requiring States,
    municipalities, public housing authorities and every other key
    recipient of HUD funding to develop a plan to move affordable
    housing resources into areas deemed to have a higher quality of
    life or otherwise bring other resources into lower income or
    more segregated areas.
        The AFFH rule appears to be closely linked to disparate
    impact analysis, though it in principal part predates the
    Supreme Court's guidance in Texas Department of Housing and
    Community Affairs v. Inclusive Communities Project. Inc. The
    AFFH rule appears to presume that geographic units that are not
    reflective of the broader community's make up, in terms of
    protected classes of persons under the FHA, are indicative of
    violations of the FHA's admonition to HUD to ``affirmatively
    further the policies of the FHA''. This would require the
    funding recipients in these areas to take the actions that HUD
    has approved in the recipient's plan to change this situation.
        The AFFH rule, which does not set forth objective standards
    but instead sets forth a planning process with HUD data and
    discretionary approval authority, likely requires localities
    receiving HUD funding to change their own policies, ordinances
    and local funding priorities in order to achieve the purposes
    the goals set forth in their plan once it has been approved by
    HUD.
        The Supreme Court in its Inclusive Communities opinion has
    given HUD a roadmap for use of disparate impact analysis under
    the Fair Housing Act. Statistics, without more, are not enough.
    The Court has called for findings of robust causality.
    Disparate impact data can be a powerful tool in identifying
    discriminatory intent but, as with all tools, should be used in
    appropriate circumstances.
        If I am fortunate enough to be confirmed, I believe that
    implementation of the AFFH rule will need to reflect the
    interpretation of the Fair Housing Act by the Supreme Court in
    Inclusive Communities, be mindful of principles of federalism
    and not place undue bureaucratic burdens on local
    municipalities and public housing authorities, among others. We
    will have to see the results of implementation of the current
    regulation in order to better evaluate the policy. Fair housing
    should, in my mind, be about ensuring individual rights.
                                    ------

       RESPONSE TO WRITTEN QUESTION OF SENATOR SHELBY FROM PAUL
                                COMPTON

    Q.1. Mr. Compton, you have practiced housing law for almost 30
    years. With that experience, you surely understand many aspects
    of the housing industry.
        If confirmed, what actions will you take at HUD to increase
    the efficiency and productivity of the Office of the General
    Counsel?

    A.1. If I am fortunate enough to be confirmed, I will seek to
    ensure that headquarters and regional office OGC staff
    communicate clearly and frequently to ensure that HUD's laws
    and regulations are interpreted and enforced consistently and
    effectively.
                                    ------

    RESPONSE TO WRITTEN QUESTIONS OF SENATOR REED FROM PAUL COMPTON

    Q.1. The Office of General Counsel is responsible for working
    with senior policy officials and staff to develop and draft the
    Department's legislation and major regulations, notices of
    policy statements, and other key notices of the Department. How
    do you intend to work with senior leadership and across program
    areas to design and implement legislative and regulatory
    changes, and what changes will you prioritize during your
    tenure at HUD? Further, what changes if any do you intend to
    make to HUD's fair housing, LGBT, and Lead Paint regulations?
    How might the Presidential Executive Order on Reducing
    Regulation and Controlling Regulatory Costs impact your ability
    to execute this agenda?

    A.1. If I am fortunate enough to be confirmed, I will work
    collaboratively with the program offices to ensure that
    implementation of legislative and regulatory changes is
    completed expeditiously and within the bounds of the law. If
    confirmed as the General Counsel, I would apprise the
    appropriate program offices on the Office of General Counsel's
    assessment of the legality of any proposed changes to HUD
    programs, including, but not limited to, fair housing, LGBTQ
    and Lead Paint regulations. It is my understanding that HUD has
    established a taskforce to review regulations and I look
    forward to understanding, and constructively participating in,
    streamlining burdensome regulations to help HUD better achieve
    its important mission.
                                    ------

      RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM PAUL
                                COMPTON

    Q.1. In 2013, you told the Weekly Standard regarding HUD's AFFH
    efforts, ``It's a real shift in emphasis from ensuring that the
    private sector and participants in Federal programs don't
    unlawfully discriminate to defining the existence of racially
    and ethnically `segregated' neighborhoods to be in themselves a
    violation of fair housing.''\1\ Keeping in mind that you
    affirmed to the Committee during your nomination hearing that
    you intend to implement the AFFH rule, could you please explain
    what you meant in your comments to the Weekly Standard in 2013?
    ---------------------------------------------------------------------------
        \1\ http://www.weeklystandard.com/huds-power-grab/article/759151.

    A.1. As the AFFH rule was in the process of being promulgated,
    I was one of a number of persons a journalist asked to comment
    on it. As I read and understood the promulgating release at the
    time, without the benefit of any discussions with HUD
    personnel, the AFFH rule sought to integrate communities by
    requiring States, municipalities, public housing authorities
    and every other key recipient of HUD funding to develop a plan
    to move affordable housing resources into areas deemed to have
    a higher quality of life or otherwise bring other resources
    into lower income or more segregated areas.
        The AFFH rule appears to be closely linked to disparate
    impact analysis, though it in principal part predates the
    Supreme Court's guidance in Texas Department of Housing and
    Community Affairs v. Inclusive Communities Project, Inc. The
    AFFH rule appears to presume that geographic units that are not
    reflective of the broader community's make up, in terms of
    protected classes of persons under the FHA, are indicative of
    violations of the FHA's admonition to HUD to ``affirmatively
    further the policies of the FHA.'' This would require the
    funding recipients in these areas to take the actions that HUD
    has approved in the recipient's plan to change this situation.
        The AFFH rule, which does not set forth objective standards
    but instead sets forth a planning process with HUD data and
    discretionary approval authority, likely requires localities
    receiving HUD funding to change their own policies, ordinances,
    and local funding priorities in order to achieve the purposes
    the goals set forth in their plan once it has been approved by
    HUD.
        The Supreme Court in its Inclusive Communities opinion has
    given HUD a roadmap for use of disparate impact analysis under
    the Fair Housing Act. Statistics, without more, are not enough.
    The Court has called for findings of robust causality.
    Disparate impact data can be a powerful tool in identifying
    discriminatory intent but, as with all tools, should be used in
    appropriate circumstances.
        If I am fortunate enough to be confirmed, I believe that
    implementation of the AFFH rule will need to reflect the
    interpretation of the Fair Housing Act by the Supreme Court in
    Inclusive Communities, be mindful of principles of federalism
    and not place undue bureaucratic burdens on local
    municipalities and public housing authorities, among others. We
    will have to see the results of implementation of the current
    regulation in order to better evaluate the policy. Fair housing
    should, in my mind, be about ensuring individual rights.

    Q.2. In the 114th Congress, I introduced the Senate version of
    the Housing Opportunity Through Modernization Act (HOTMA). The
    legislation was passed unanimously in both the House and
    Senate, and it was signed into law on July 29, 2016. HUD has
    begun the process of implementing some of the provisions, but
    many rulemakings remain outstanding. As General Counsel, you
    will play an important role in the rulemaking process. What
    will you do to prioritize rulemakings mandated by HOTMA?

    A.2. HOTMA enacted several important reforms for HUD, including
    streamlining and burden-reducing changes to the Section 8 and
    Public Housing programs, creating a special assistant for
    veterans affairs in the Office of the Secretary, and updating
    the distribution formula for the Housing Opportunities for
    Persons with AIDS (HOPWA) program. HUD has already implemented
    some of these provisions where permitted by notice, which
    included receiving public comment on that implementation. This
    public comment will inform future rulemaking efforts.
        Senator, I will remain mindful of your interest in this and
    the broad congressional support for this legislative
    initiative.
                                    ------

    RESPONSE TO WRITTEN QUESTIONS OF SENATOR BROWN FROM ANNA MARIA
                                 FARIAS

    Q.1. There is broad agreement in the courts that the Federal
    Fair Housing Act applies to discriminatory practices of
    homeowners' insurers. In the more than 20 years since the Fair
    Housing Act was amended and HUD issued interpretive
    regulations, every court to consider the issue has held that
    the Fair Housing Act prohibits acts of discrimination by
    homeowners' insurers. Specifically, courts have found that the
    discriminatory practices of homeowners' insurers violate 42
    U.S.C.  3604(a), (b) and  3605.
        Courts have found that because the ability to obtain
    insurance is inexorably linked to the ability to obtain
    housing--i.e., adequate insurance is necessary to own or rent
    housing--insurance discrimination violates the ``otherwise make
    unavailable or deny'' provision of section 3604(a).
        Given the strong case law concerning the applicability of
    the Fair Housing Act to the insurance industry, what is your
    position on HUD's Discriminatory Effects rule and its
    applicability to the insurance industry?

    A.1. My understanding is that there is pending litigation, to
    which HUD is a party, concerning this matter. As such, it would
    be inappropriate for me to comment until those cases are
    resolved

    Q.2. There are approximately 495 full-time employees at HUD's
    office of Fair Housing and Equal Opportunity, the lowest
    staffing level since 1989. According to the President's budget
    request, HUD would receive $2.2 million less for salaries and
    expenses for FY 18. In 2008, the bipartisan National Commission
    on Fair Housing and Equal Opportunity led by former HUD
    Secretaries Jack Kemp and Henry Cisneros recommended that FHEO
    needed at least 750 FTEs for the fair housing office. This work
    includes reviewing and investigating complaints of sexual
    harassment by landlords, explicit preferences landlords make
    saying no children are allowed in an apartment, and other forms
    of housing discrimination no one should ever have to
    experience.
        As FHEO Assistant Secretary, what would you do to increase
    FHEO staffing to address fair housing enforcement and
    education, or meet the existing investigation, policy, and
    technical assistance requirements of the office?

    A.2. I support the Secretary's plan for reforming Government,
    which calls on us to find efficiencies to maximize the impact
    of our staff. The dedicated employees in FHEO may be better
    aided in their enforcement, education and compliance work
    through improved technology or skills enhancement. If confirmed
    as Assistant Secretary, one of the first things I will do is
    look at FHEO's processes and procedures to ensure we are
    getting the most value out of our spending. I will look at how
    roles and responsibilities are organized to ensure they are
    aligned to achieve maximum benefit. I will also ensure
    employees that underperform are held accountable. Finally, I
    will talk to the employees of HUD, who, no doubt, have many
    ideas for improving the Department's operations.
        The mission of the Office of FHEO is critical to the
    Department and the country, and, if confirmed as Assistant
    Secretary, I will do everything I can to ensure it has the
    resources it needs and that those resources are used to maximum
    effect.
                                    ------

     RESPONSE TO WRITTEN QUESTION OF SENATOR REED FROM ANNA MARIA
                                 FARIAS

    Q.1. According to HUD's website, ``the Fair Housing Act
    protects people from discrimination when they are renting,
    buying, or securing financing for any housing. The prohibitions
    specifically cover discrimination because of race, color,
    national origin, religion, sex, disability, and the presence of
    children''--also colloquially known as the Fair Housing Act's
    protected classes. If confirmed, will you treat each of the
    protected classes equally in vigorously enforcing the Fair
    Housing Act?

    A.1. Senator, you have my commitment that, if confirmed, I will
    vigorously enforce the Fair Housing Act and always treat each
    of the protected classes equally.
                                    ------

      RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM ANNA
                              MARIA FARIAS

    Q.1. HUD's Office of Fair Housing and Equal Opportunity has a
    critical role to play in disaster recovery funding. In New
    Jersey after Superstorm Sandy, it wasn't just homeowners
    impacted by the storm. Renters, a higher-share of whom are
    African Americans and Latinos, were subjected to long waiting
    lists, lengthy delays, and denial of assistance without ever
    finding out why. Complicating matters, there were reports that
    the State's Spanish language website contained incorrect
    instructions and wasn't corrected until it was too late to
    apply. We also saw reports of disproportionately higher
    rejection rates for African Americans and Latinos. Even if
    there was no intentional discrimination, a disparate impact is
    still cause for significant concern. What will be your approach
    to investigating such claims should they arise in the future,
    and how will you ensure fair and equitable treatment in
    disaster recovery funding for all individuals?

    A.1. Based on HUD's experience during Superstorm Sandy, we know
    we must be especially alert to any differences in services
    provided to people, based on race or national origin. At the
    first mention of such allegations, I will investigate and take
    steps to make sure everyone is treated fairly. This includes
    making sure recipients of HUD funds provide the same
    information to all persons about their rights and the relief
    available. In communities where significant populations speak
    languages other than English, like Spanish, we will make sure
    recipients provide all the same information in those languages
    (on websites and in other forms), so they can timely benefit
    from all the same services and relief. The primary goal is to
    prevent such problems from occurring in the first place. As
    Assistant Secretary, I would do all I can to provide guidance,
    technical assistance, and best practices so that when
    governments are reacting to a disaster they can easily comply
    with the law.

    Q.2. HUD's Office of Fair Housing and Equal Opportunity is
    responsible for enforcing fair housing laws and ensuring fair
    access to housing for all Americans. For many new Americans and
    others for whom English is not their first language, fair
    access to housing includes having resources and translations
    available to them that are clear, consistent, and accurate, as
    well as protection from discriminatory housing decisions based
    solely on their limited English language abilities.

        Can you describe what your approach would be at HUD
            regarding limited English proficiency access?

        Can I have your commitment to make this a priority
            if you are confirmed?

    A.2. Over 25 million people in the United States, approximately
    9 percent of the overall population, are limited in their
    English proficiency. Title VI of the Civil Rights Act of 1964
    and Executive Order 13166 require that Federal agencies ensure
    that people with limited English proficiency (LEP) have
    meaningful access to programs that receive HUD funding. The
    responsibility for ensuring the Department and its recipients
    comply with that important civil rights responsibility falls to
    the Office of Fair Housing and Equal Opportunity. If confirmed
    as Assistant Secretary, I would review the language access
    services presently available in the Department and engage in
    extensive outreach to make sure all populations know how to
    utilize the services HUD provides.

    Q.3. In September, HUD issued new guidance on protections under
    the Fair Housing Act for people with limited English
    proficiency. As explained in the guidance, housing providers
    are prohibited from using limited English proficiency
    selectively or as an excuse for intentional housing
    discrimination. In addition, the guidance clarifies that
    landlords are prohibited from using limited English proficiency
    in a way that causes an unjustified discriminatory effect.
        Do you agree with the contents of this guidance?

    A.3. Yes, the Fair Housing Act protects individuals from
    discrimination based on their national origin. One common proxy
    for national origin discrimination is discrimination against
    persons based on their English proficiency. This discrimination
    is illegal regardless of the form--discriminatory treatment or
    discriminatory effect. If confirmed as Assistant Secretary for
    Fair Housing, I will follow this guidance to ensure all
    individuals are protected from discrimination.

    Q.4. It is estimated that each year more than four million acts
    of discrimination occur in the rental housing market alone, but
    only a small fraction of these acts are reported.

    Q.4.a. How will you ensure fair housing education, testing, and
    enforcement are priorities for HUD?

    A.4.a. Even one family denied housing because of their race,
    color, religion, sex, national origin, disability, or familial
    status is too many. I believe it is imperative that the
    Department do a better job in educating housing providers about
    the Fair Housing Act in order to prevent discrimination and
    educate the public about their rights and the advocacy services
    available so they can get redress for their injuries if
    discrimination occurs.
        But education is not enough. We must be prepared to
    vigorously enforce the law through our enforcement authorities
    at HUD. We must also support State and local enforcement by our
    State and local partners through the Fair Housing Assistance
    Program, and support the work, including testing, by the Fair
    Housing Initiatives Program organizations.

    Q.4.b. How do you plan to operate and oversee fair housing
    programs to deliver capacity and resources to local
    governments, fair housing agencies, and other key stakeholders?

    A.4.b. I see the work of FHEO as part of a three-pronged plan
    that supports fair housing in this country. First, there's HUD.
    Then, we are joined in this effort by our partners in the Fair
    Housing Initiatives Program, where nonprofits assist
    individuals informally and ensure that the general public and
    housing providers are educated about fair housing rights and
    responsibilities. Third, we have our State and local partners
    in the Fair Housing Assistance Program, who provide a local
    face for civil rights enforcement and investigate 80 percent of
    Fair Housing Act cases in the country.
        For FY 2018, the funding the President requested for fair
    housing programs was equal to the amount provided by Congress
    for 2016 and 2017. This Administration is committed to
    upholding fair housing. If confirmed, I will continue that
    strong support for State and local governments and fair housing
    organizations.
                                    ------

       RESPONSE TO WRITTEN QUESTIONS OF SENATOR BROWN FROM NEAL
                                RACKLEFF

    Q.1. The mayors of small towns in Ohio say that CDBG grants are
    critical in improving their infrastructure and meeting their
    community and economic development goals.
        Would you agree with their assessment that CDBG is an
    important tool in their efforts to ensure that small town
    America is not left behind in our economy? How have you seen
    CDBG used to help small towns and rural areas in their
    community and economic development efforts?

    A.1. In my experience, CDBG funding can be used to effectively
    improve infrastructure in meeting community and economic
    development goals.
        In Texas, a great deal of the CDBG funding administered by
    the State is used to help small towns and rural areas improve
    infrastructure through projects such as road construction and
    improvement or expansion of water and sewer facilities.

    Q.2. Mr. Rackleff, it is no secret that the President's FY 2018
    budget would eliminate many of the programs that you would
    administer at CPD, if confirmed. That proposal was deeply
    disappointing. Many of my colleagues and I are working to make
    sure that does not happen.
        Can you tell us how you used these programs in your housing
    and community development work in Houston?

    A.2. In Houston, we used the CDBG grant funds we received
    effectively to promote community development, eliminate blight,
    repair and replace housing damaged from weather disasters and
    to provide public services and facilities to Houstonians in
    need. Nearly all the CDBG funding expended on housing did not
    come from traditional annual CDBG grants but rather from
    special congressional appropriations related to disasters.
        The traditional CDBG fending the city of Houston received
    was reduced dramatically during my tenure. In 2011, Houston
    received $35.8 million in CDBG funding--by 2015 that amount had
    dwindled to $22.9 million--a 36 percent reduction.

    Q.3. In recent months, HUD has withdrawn two Notices and
    removed from its website several resources intended to carry
    out its policies to ensure housing rights for LGBTQ
    individuals. This includes LGBTQ youth, who make up nearly 40
    percent of all homeless youth. The withdrawn Notices were
    designed to 1) require HUD-participating housing providers to
    display information regarding the rights of LGBTQ individuals
    and 2) collect information necessary to evaluate the
    effectiveness of an LGBTQ youth homelessness demonstration
    program.
        If confirmed, will you work to reinstate these notices and
    guidance? If not, why not?

    A.3. Senator, I have not had the opportunity to examine this
    particular matter yet. As I stated during my confirmation
    hearing, in response to a question from Senator Cortez Masto,
    if confirmed, I pledge to look into this issue within my first
    2 weeks.
                                    ------

       RESPONSE TO WRITTEN QUESTIONS OF SENATOR SHELBY FROM NEAL
                                RACKLEFF

    Q.1. Mr. Rackleff, your work in the city of Houston involved
    serving many families using HUD grants. Your new role at HUD
    will involve oversight of the Community Development Block Grant
    program.

    Q.1.a. What is your experience with the Community Development
    Block Grant program in Houston?

    A.1.a. In Houston, we used the CDBG grant funds we received
    effectively to promote community development, eliminate blight,
    repair and replace housing damaged from weather disasters and
    to provide public services and facilities to Houstonians in
    need. Nearly all the CDBG funding expended on housing did not
    come from traditional annual CDBG grants but rather from
    special congressional appropriations related to disasters.
        The traditional CDBG funding the city received was reduced
    dramatically during my tenure. In 2011, Houston received $35.8
    million in CDBG funding. By 2015 that amount had dwindled to
    $22.9 million--a 36 percent reduction.
        Notable projects include development of a grocery store in
    a food desert and redevelopment of a vacant historic office
    building in downtown Houston, which is now a beautiful JW
    Marriott hotel. On that project, we made an approximately $7
    million loan to the hotel and were fully repaid with interest
    within about 2 years. We invested $9.3 million total in these
    two projects, creating 278 jobs and leveraging a total
    investment of $85.7 million.

    Q.1.b. How did the program help you and the city of Houston?

    A.1.b. The program enabled us to create jobs, redevelop
    historic and blighted properties and provide housing and
    infrastructure for Houstonians. Additionally, 16.77 percent of
    the nondisaster CDBG funding we received was used to provide
    public services, such as aid to the homeless and victims of
    domestic violence, and programs designed to improve job
    opportunities and assist at-risk youth to focus on their
    education. We also used the program to construct public
    facilities such as health clinics, food pantries and a charter
    school. Finally, we used the program to improve infrastructure
    to reduce risks of flooding in inner-city communities.
        As mentioned in my hearing, should I be confirmed, I pledge
    to use whatever resources may be entrusted to me wisely and
    effectively.
                                    ------

        RESPONSE TO WRITTEN QUESTIONS OF SENATOR REED FROM NEAL
                                RACKLEFF

    Q.1. In reviewing your nominations materials, I was pleased to
    read about your experience in using the Community Development
    Block Grant (CDBG) program, which President Trump has proposed
    zeroing out for FY 18. This would be a $3 billion cut overall
    and a $15.2 million cut for Rhode Island in 2018. Please
    describe your personal experience working with CDBG. In
    particular, I would like to learn more about how you used CDBG
    to overcome a food desert in Houston.

    A.1. In Houston, we used the CDBG grant funds we received
    effectively to promote community development, eliminate blight,
    repair and replace housing damaged from weather disasters and
    to provide public services and facilities to Houstonians in
    need. Nearly all the CDBG funding expended on housing did not
    come from traditional annual CDBG grants but rather from
    special congressional appropriations related to disasters.
        The traditional CDBG funding the city received was reduced
    dramatically during my tenure. In 2011, Houston received $35.8
    million in CDBG funding. By 2015 that amount had dwindled to
    $22.9 million--a 36 percent reduction.
        Regarding overcoming a food desert in Houston, we
    incentivized the development of a brand new grocery store in an
    area considered a food desert. Total development cost for the
    store was $4.9 million. We provided a $1.9 million CDBG grant
    to help make the project economically viable. The grocer was
    required to do the following: 1) create 25 full-time equivalent
    jobs; 2) properly maintain the store; and 3) include a
    specified amount of linear shelf space stocked with fresh
    fruits and vegetables and other nutritious groceries designed
    to ensure the store would be a grocery store rather than a
    convenience store. If the owner adhered to these requirements
    the grant would burn off at a rate of 10 percent annually, but
    if the conditions were violated then the balance of the grant
    would convert to a repayable loan with interest, amortized over
    15 years. This ``clawback'' mechanism was instituted to ensure
    the city received the benefit of the incentive after it was
    provided to the owner.

    Q.2. Also in your nominations materials, you made reference to
    a fair housing situation in Houston in which you helped
    negotiate a win-win solution. Could you please provide
    additional details?

    A.2. When I became Director of the Department of Housing and
    Community Development, the city of Houston was struggling to
    comply with the terms of a previous Hurricane Ike CDBG-DR Round
    1 grant. The single family component was behind schedule. We
    got it back on track and completed. Additionally, Houston was
    chosen to receive a Round 2 grant of an additional $178
    million. Fair Housing advocates had litigated against the State
    of Texas and with HUD regarding the disposition of these funds.
    They had a Conciliation Agreement with HUD and the State of
    Texas allowing them significant influence over how and where
    such funding could be spent. They threatened to sue the city of
    Houston if we did not comply with their desires to focus the
    $178 million in areas they considered ``high opportunity''
    rather than in inner-city neighborhoods that had concentrations
    of minority and low-income residents. I felt strongly that we
    should not turn our backs on the very inner-city communities
    HUD was created to strengthen. So, we were at a significant
    impasse. I was faced with a choice--litigate the matter--which
    could easily take 3 to 5 years, during which time none of the
    families we were entrusted with serving would receive any help,
    or instead try to find common ground and negotiate a solution
    allowing us to use the resources entrusted to us to help those
    we serve as quickly as possible.
        I chose to negotiate. We brought the activists and
    grassroots housing proponents to the table and found common
    ground. We proposed that rather than moving families out of the
    neighborhoods they loved and away from their families, churches
    and other support groups and institutions, that we should focus
    our resources on two to three specific inner-city communities
    and rather than just doing housing in a vacuum, we would
    dedicate other resources to improve infrastructure and promote
    economic development. The advocates agreed with this approach.
    So, together we conducted a comprehensive planning, market and
    demographic analysis to
    target communities where gentrification was likely. We wanted
    to use our resources to jumpstart revitalization of these areas
    but also ensure that high quality affordable homes would be in
    such neighborhoods to avoid displacement of lower-income
    families as the tide of gentrification swept over these
    historically underserved neighborhoods. We involved the
    community in choosing the areas to a degree never done before
    in Houston. We had 13 public meetings with over 500
    unduplicated participants to refine our focus on the right
    communities. Then I went with the activists to the State of
    Texas officials responsible for the program and we received
    permission to proceed. Four out of five of the multi-family
    developments we proposed are under construction, and I believe
    all the single-family homes have been completed. In contrast,
    most of the other local governmental entities in the Houston
    area did not choose to bring the activists to the table and are
    still trying to work through issues that will allow them to
    eventually proceed with their desired projects.
                                    ------

      RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM NEAL
                                RACKLEFF

    Q.1. The President's FY 2018 budget request included the
    proposed elimination of the Community Development Block Grant
    program and the HOME Investment Partnership Program. When asked
    about these proposed eliminations during your nomination
    hearing, you confirmed that these programs demonstrated a
    measurable impact in Houston.

    Q.1.a. If this budget were to be enacted in its current form,
    would it increase housing instability and homelessness?

    A.1.a. If Congress funds HUD at the level proposed in the
    President's FY 2018 budget, it would take some time for HUD to
    spend down the existing unobligated budget authority. If
    Congress maintains this level of funding beyond the short term,
    these are concerns that will need to be monitored.

    Q.1.b. Do you support the elimination of the Community
    Development Block Grant program as proposed in the budget? If
    you do support the budget, please explain what specific
    alternative funding mechanisms will be provided to States,
    cities, and localities to fill the void created by the
    elimination of the program.

    A.1.b. I'll be the first to tell you that in Houston we saw the
    positive outcomes that occur when a city uses CDBG funds in an
    efficient and effective manner. But I also know that where we
    used CDBG wisely, many other localities do not. Instead, they
    use these precious dollars to plug budget holes. As the
    President's nominee, I of course support the Administration's
    proposed budget, which balances priorities across the Federal
    Government. If confirmed, I will bring my many years of
    experience as a housing practitioner who used CDBG funding to
    achieve successful outcomes in Houston to future internal
    budget deliberations.

    Q.1.c. Do you support elimination of the HOME Investment
    Partnership program as proposed in the budget? If you do
    support the budget, please explain what specific alternative
    funding
    mechanisms will be provided to States, cities, and localities
    to fund the creation of affordable housing for low-income
    households.

    A.1.c. As I noted in the above answer, as the President's
    nominee, I support the Administration's proposed budget. HOME
    is a program with which I have extensive experience, and we had
    great success with it in Houston. I also know the program has
    been criticized for misuse of funds. And the prior
    Administration made reductions to HOME as well. As I stated at
    my confirmation hearing, if confirmed, I will faithfully
    administer any Federal funds with which I am entrusted by
    Congress. I also will work with the Congress, State and local
    governments, and private sector partners to identify mechanisms
    and means to support the development and preservation of
    affordable housing.

    Q.2. The U.S. Interagency Council on Homelessness (USICH) is an
    independent agency tasked with coordinating the Federal
    response across 19 Federal member agencies to address
    homelessness. In 2010, USICH spearheaded the Federal
    Government's first comprehensive strategic plan to prevent and
    end homelessness. Since that time, there has been an overall
    reduction in nationwide homelessness by 14 percent, family
    homelessness by 23 percent, chronic homelessness by 27 percent,
    and veteran homelessness by 47 percent. The President's FY 2018
    budget outline proposes to completely eliminate funding for the
    USICH.

    Q.2.a. Do you support the elimination of the U.S. Interagency
    Council on Homelessness as proposed in the budget? If you do
    support the budget, please explain how States, cities, and
    localities will fill the void created by the elimination of
    this independent agency.

    A.2.a. HUD is committed to working across agencies and State,
    local, and private partners to leverage other programs to end
    homelessness. One of the United States Interagency Council on
    Homelessness' biggest accomplishments was the promotion of
    interagency collaboration to combat homelessness. USICH helped
    pave the way for collaboration across agencies, and now such
    collaboration across agencies has become more common place and
    can continue without a distinct Council.

    Q.2.b. CPD plays an important role in fighting homelessness by
    administering HUD's homeless assistance programs, which provide
    grants to aid State and community efforts to prevent and end
    homelessness. How would the elimination of the U.S. Interagency
    Council on Homelessness affect the progress made in ending
    homelessness?

    A.2.b. As I stated above, I believe HUD is well positioned to
    continue collaborating with other departments and agencies to
    combat homelessness.
                                    ------

      RESPONSE TO WRITTEN QUESTIONS OF SENATOR HEITKAMP FROM NEAL
                                RACKLEFF

    Q.1. HUD Budget: As the Assistant Secretary for Community
    Planning and Development, you will oversee many important
    programs that were eliminated in the Administration's FY 18
    budget, including CDBG, the HOME program, and the Housing Trust
    Fund. These programs are so important to North Dakota's
    communities. When the budget blueprint was first released
    earlier this year, I reached out to city and State officials in
    North Dakota to get a complete picture of where they used these
    funds and received an overwhelming response imploring me to
    speak up for these programs. As you know from working with CDBG
    in Texas, those funds alone are used for everything from dental
    centers for the disadvantaged to senior centers to affordable
    housing for families.
        You maintained in your nomination hearing that you support
    the Administration's proposed elimination of these programs.
    While it is the job of Congress to determine the budget, are
    you prepared to be an advocate for these programs?

    A.1. Senator, I can commit to you that whatever resources
    Congress sees fit to provide to HUD's Office of Community
    Planning and Development, I will utilize those resources wisely
    and effectively. Furthermore, if confirmed, I will bring my
    many years of experience as a housing practitioner who used
    CDBG funding to achieve successful outcomes in Houston to
    future internal budget deliberations.

    Q.2. Transitional Housing: In recent years, HUD has strongly
    favored the ``housing first'' model--prioritizing rapid
    rehousing over transitional projects. While rapid rehousing can
    be effective for many cases of homelessness, transitional
    housing with built-in services like substance abuse counseling
    and job training still serves an important purpose for specific
    targeted groups, including victims of domestic violence, at-
    risk youth, individuals struggling with substance abuse
    (including opioids), and the recently incarcerated. As the head
    of CPD, you will oversee many of HUD's homelessness programs.
        I appreciated that you mentioned transitional housing in
    the hearing and look forward to working with you to improve
    transitional housing policy should you be confirmed. Can you
    tell me more about your opinion on transitional housing as it
    fits into the arsenal of housing and intervention options for
    combating homelessness in our most vulnerable communities?

    A.2. HUD has focused its allocation of resources to alleviate
    homelessness on those programs and agencies that have yielded
    the most successful outcomes. That emphasis on results has, in
    my opinion, been a significant reason for the emphasis on the
    housing first model. However, transitional housing programs are
    also often very effective in alleviating homelessness and
    providing effective and compassionate assistance for groups,
    such as victims of domestic violence and those struggling with
    substance abuse challenges.
        I advocate a balanced approach in which both housing first
    and transitional housing models are employed. In Houston, we
    supported both models. For example, we funded transitional
    housing projects for a group formerly called ``The Men's
    Center'' which has been renamed ``Recenter'' (http://
    recenterhouston.com) and for a wonderful organization called
    The Women's Home (https://www.thewomenshome.org/).
                                    ------

      RESPONSE TO WRITTEN QUESTION OF SENATOR BROWN FROM RICHARD
                                 ASHOOH

    Q.1. You will be overseeing a sensitive area of the Bureau of
    Industry and Security's national security and nonproliferation
    work, including remaining issues on the export control reform
    initiative undertaken by the prior Administration. Beyond
    completing that reform initiative, what are the main national
    security priorities you will bring to this position, and how do
    you intend to pursue them? What do you see as the major
    challenges in this area--i.e., what will keep you up at night--
    in terms of your national security portfolio?

    A.1. Existing challenges to our Nation's security, such as WMD
    proliferation, will continue to occupy BIS as a top priority
    concern. If confirmed, I will devote serious attention to
    cybersecurity software and emerging technologies. Their dual
    use nature creates a more complex challenge for our regulatory
    system. Further, the rapid and often secretive pace of
    advancement of emerging technologies places pressure on BIS to
    remain ahead of these threats in ways conventional weapons have
    not in the past.
                                    ------

    RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM RICHARD
                                 ASHOOH

    Q.1. What changes can we expect from BIS regarding new Cuba
    regulations the Administration announced in June?

    A.1. It is my understanding that BIS anticipates incorporating
    a reference to a list to be published by the Department of
    State that will identify certain entities and sub-entities that
    are under the control of, or act on behalf of the Cuban
    military, intelligence or security services. I further
    understand that BIS anticipates revising lists of officials of
    the government of Cuba that are ineligible for certain license
    exceptions to correspond with the revised definition of
    ``prohibited officials'' to be published by the Department of
    the Treasury.

    Q.2. Can you ensure that new regulations will prohibit the
    export of goods and services that directly benefit the Castro
    regime, the Cuban military, or Cuban state-owned enterprises?

    A.2. Current BIS regulations include a general policy of denial
    for the export or reexport of items to the Cuban military,
    police, intelligence and security services. A general policy of
    denial is also in place for the export or reexport of items for
    use by Cuban state-owned enterprises, agencies, and other
    organizations that primarily generate revenue for the state,
    including those engaged in tourism and those engaged in the
    extraction or production of minerals or other raw materials. If
    confirmed, I will ensure that BIS will continue to work with
    the Department of State and other interagency partners to
    implement the President's Cuba policy through its licensing
    process.

    Q.3. When will we see finalized Cuba regulations?

    A.3. It is my understanding that BIS has initiated the process
    to review and adjust, as necessary, the current regulations
    regarding exports to Cuba. This process is being coordinated by
    the National Security Council. I am informed that BIS is
    working closely with interagency partners, including the
    Departments of State and the Treasury, to ensure that it
    promptly implements the President's Cuba policy, and expects to
    publish any necessary changes in the coming months.
                                    ------

     RESPONSE TO WRITTEN QUESTION OF SENATOR BROWN FROM ELIZABETH
                               ERIN WALSH

    Q.1. You will be managing a broad portfolio of export promotion
    and efforts to encourage foreign investment into the United
    States at the ITA in Commerce, working with hundreds of
    Commerce employees and foreign service officers in embassies
    all over the world to promote U.S. products, services and job
    creation. Should you be confirmed, what do you see as the major
    challenges facing you both in pressing entry for U.S. firms
    into foreign markets and in promoting foreign investment in the
    United States--and what will be your priorities and strategy
    going forward in managing those challenges?

    A.1. U.S. exports face significant challenges in many markets.
    The causes of market obstruction and closure are numerous
    including: high tariffs; subsidies provided to foreign
    producers giving them unfair advantage over their U.S.
    competitors; blocking or unreasonably restricting the flow of
    digital data and services; theft of trade secrets; as well as
    other nontariff barriers--such as unnecessary regulations on
    particular items--to limit competition, including in the
    services sector.
        If confirmed, I will work tirelessly to increase exports by
    breaking down long-standing trade barriers and fostering
    increased access for American goods in foreign markets. I
    intend to work closely with my colleagues within ITA and the
    Secretary to use all possible tools to encourage other
    countries to give U.S. producers fair, reciprocal access to
    their markets.
        In addition, if confirmed, I intend to focus on improving
    efficiency. I believe Global Markets will need to rely on
    technology to deliver services efficiently to exporters to
    achieve this goal.
                                    ------

        RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM
                          ELIZABETH ERIN WALSH

    Q.1. Our competitors around the world are dedicating greater
    resources toward economic diplomacy and are aggressively
    helping their companies increase exports. Unfortunately, U.S.
    companies cannot count on the same level of support from the
    U.S. Government. Too often, this dynamic prevents American
    firms from competing on a level playing field, and as a result,
    we export less and fail to capitalize on valuable opportunities
    in foreign markets. The Administration's budget will make this
    situation even worse. It threatens to cut 38 Foreign Commercial
    Service Officer positions and close 10 domestic and 35 overseas
    offices. This is going to make it more difficult for American
    companies who want to export and need advocates in foreign
    markets to promote the value of U.S. goods and services.

    Q.1.a. How is this budget approach consistent with the
    Administration's goal of reducing the trade deficit?

    A.1.a. The Administration's budget places a greater emphasis on
    enforcement of trade laws as a means to ensure a level playing
    field. All of Global Markets including the United States and
    Foreign Commercial Service will continue its mission of
    advocating for U.S. business abroad in as many key markets as
    possible.

    Q.1.b. Which foreign offices does the Administration plan to
    close?

    A.1.b. Due to my pending confirmation, I have not been a part
    of any conversation related to specific closures and am unable
    to answer this question.

    Q.1.c. In the past, I have called for deploying more FCS
    officers to Latin America. Do you agree that Latin America
    represents a largely untapped opportunity for increased U.S.
    exports and should be a priority area of expansion for the
    Foreign Commercial Service?

    A.1.c. I share your opinion that Latin America presents
    important growth opportunities for the United States. The
    President has met with many of his counterparts in the region.
    That the United States is seeking to bring the NAFTA into the
    21st century demonstrates the Administration's commitment to
    the Americas. Modernizing and rebalancing our trading
    relationship with Mexico is an important first step in further
    expanding opportunities for U.S. exports in Latin America.

    Q.2. You noted in your testimony that last year, for every $1
    appropriated to the Office of Global Markets $192 was returned
    to the American economy through increased exports and foreign
    direct investment, which supported approximately 300,000 U.S.
    job. Given that multiplier effect, what do expect to be the
    impact on exports, foreign direct investment, and U.S. jobs, of
    the Administration's proposed cut of over $43 million for
    Global Markets?

    A.2. If confirmed, this will be my top concern. As part of this
    statistic, I was attempting to underscore how important I
    believe it is that Global Markets will need to partner with
    technology to deliver services efficiently to exporters. I do
    not yet know the impact of Global Market's future efforts to
    improve efficiency nor the proposed cuts on the Return on
    Investment of taxpayer dollars.
                                    ------

    RESPONSE TO WRITTEN QUESTION OF SENATOR BROWN FROM CHRISTOPHER
                                CAMPBELL

    Q.1. One of your responsibilities will be to advise the
    Secretary in his capacity as the administrator of the
    Multiemployer Pension Rehabilitation Act, and his capacity as a
    member of the board of the Pension Benefit Guarantee
    Corporation. What actions do you propose the Administration
    take to address the crisis confronting multiemployer pensions?

    A.1. Multiemployer pension plans are facing serious issues and
    I understand that Treasury has been meeting with relevant
    stakeholders to discuss these issues. If confirmed, I am
    committed to working with Congress and other stakeholders to
    develop a fiscally responsible solution to these issues.
                                    ------

         RESPONSE TO WRITTEN QUESTIONS OF SENATOR SHELBY FROM
                          CHRISTOPHER CAMPBELL

    Q.1. Mr. Campbell, in your role, you will work to appropriately
    regulate American financial institutions. Currently, our
    financial regulatory regime is far too burdensome for small and
    regional financial institutions, which pose much less risk than
    larger institutions to the American economy. Regulations must
    be tailored to appropriately reflect a financial institution's
    risk. For example, I have advocated for raising the $50 billion
    asset threshold for enhanced prudential standards required by
    Section 165 of Dodd-Frank, while also maintaining a criteria
    based system that takes into account the institution's assets
    and unique features.

        In your opinion, would such reforms benefit our
            financial system?

        Under your leadership, in what ways will Treasury
            prevent redundant and nontransparent financial
            regulations?

    A.1. I agree that an appropriately tailored regulatory regime
    is a critical element of an effective financial system. I think
    there are a number of important changes that can be made to
    improve the current tailoring of regulations, particularly for
    smaller and less complex regional and community banks.
        Amending the $50 billion asset threshold for enhanced
    prudential standards required by Section 165 of Dodd-Frank and
    replacing it with a more tailored approach should result in a
    number of improvements to the regulation of our financial
    system: removing excessive regulations for less complex
    regional banks so that they may better focus time and resources
    on lending and serving customers; addressing inappropriate
    incentives for smaller banks created by the current asset
    thresholds; and allowing for a better allocation of regulators'
    time and resources.
        As the recent Treasury report on Core Principles for
    financial regulation makes clear, after 7 years of continuous
    rulemaking, it is time for a rationalization of regulations.
    The Treasury report outlines a number of ideas to make our
    regulatory system less redundant and more transparent, which
    can be implemented through a combination of legislation as well
    as administrative action by the financial regulatory agencies.
        If confirmed, I look forward to working with the team at
    Treasury, Members of Congress, and our Federal and State
    regulators to improve our financial system by further tailoring
    regulations and preventing redundant and opaque rulemakings.
                                    ------

     RESPONSE TO WRITTEN QUESTION OF SENATOR REED FROM CHRISTOPHER
                                CAMPBELL

    Q.1. Following President Trump's Meeting with Russian President
    Vladimir Putin on the sidelines of the G20 Summit, he delivered
    the following statement via Twitter: ``Putin & I discussed
    forming an impenetrable Cyber Security unit so that election
    hacking, & many other negative things will be guarded.'' Later
    that day, he followed up with this statement, also via Twitter:
    ``The fact that President Putin and I discussed a Cybersecurity
    unit doesn't mean I think it can happen. It can't . . .''
    Secretary Mnuchin, however, has also expressed support for the
    President's original idea of cybersecurity cooperation between
    the United States and Russia. During your confirmation hearing,
    Ranking Member Brown asked you to commit that the Treasury
    Department's cybersecurity organization, which would be under
    your purview if you are confirmed, will not establish any such
    cooperative unit with Russia. You did not provide a clear, yes
    or no answer to Ranking Member Brown's question. Will you
    please answer, in yes or no terms, whether you will commit that
    the Treasury Department's cybersecurity organization that would
    be under your control if you are confirmed by the Senate, will
    not establish or participate in any joint cybersecurity program
    with the Russian government?

    A.1. It is my understanding that the Administration has made
    supporting the security and resiliency of the U.S. financial
    system, and reducing the risk of a significant cybersecurity
    incident impacting the financial sector, a key priority. I
    believe that effective coordination with other countries, where
    those discussions can yield positive results, is an important
    part of this work.
        If confirmed, I will work with the staff at Treasury to
    pursue appropriate and productive international engagements
    that support and promote effective cybersecurity and ensure all
    American interests are properly protected.
                                    ------

        RESPONSE TO WRITTEN QUESTIONS OF SENATOR MENENDEZ FROM
                          CHRISTOPHER CAMPBELL

    Q.1. Have you discussed housing finance reform with any member
    of the Administration? If so, can you provide an overview of
    the Administration's specific priorities on housing finance
    reform?

    A.1. I am aware that housing finance reform is a priority of
    the Treasury and of the Administration. As Secretary Mnuchin
    has stated publicly before this Committee, our housing finance
    policy should promote borrower access to mortgage credit while
    protecting taxpayers from costly bailouts. I understand that
    Treasury is engaging with stakeholders inside and outside the
    Government in advance of developing housing principles and
    providing recommendations.

    Q.2.a. Throughout his time on the campaign trail, the President
    highlighted neighborhoods and communities throughout the
    country that seldom reap the benefits of economic expansion but
    are reliably and disproportionately burdened by economic
    downturns. Community Development Financial Institutions (CDFIs)
    have stepped up for the better part of a century to inject
    capital, create jobs, and provide mortgage credit, small
    business loans, and banking services in these forgotten
    communities. In 2016 alone, CDFIs made over 39,000 loans and
    investments totaling more than $3.6 billion, financed over
    11,000 small businesses and over 33,000 affordable housing
    units.
        As Assistant Secretary for Financial Institutions, the CDFI
    Fund will fall directly under your oversight. Do you support
    the elimination of the CDFI fund as proposed in the budget? If
    you do support the budget, is it your conclusion that we no
    longer need to
    promote access to capital and economic growth in economically
    distressed areas?

    A.2.a. My understanding is that the CDFI Fund budget eliminates
    discretionary grant funding to reflect the Administration's
    priority to support fiscal responsibility and to focus
    resources on activities that promote national security and
    public safety.
        However, the budget continues to provide funding for the
    CDFI Fund to continue to operate the nongrant programs, like
    the New Markets Tax Credit Program, which provide support for
    CDFIs and other community organizations lending and investing
    in economically distressed communities across the country.
    Since 2001, the New Markets Tax Credit Program has allocated
    $50.5 billion in tax credits in urban and rural areas.
        The budget also proposes to reauthorize the Bond Guarantee
    Program to allow $500 million in new guarantees in FY 2018.
    This program provides capital to CDFIs, at no cost to the
    taxpayer.

    Q.2.b. Assuming Congress rejects the Administration's request
    to eliminate the CDFI Fund, what will you do to ensure that the
    CDFI Fund has the tools and resources it requires to continue
    providing funds and technical assistance to CDFIs throughout
    the country?

    A.2.b. If confirmed, I will work with the team at Treasury to
    be sure that all CDFI programs are operating consistent with
    all applicable laws, rules, and Administration policies.
                  Additional Material Supplied for the Record
         LETTERS SUBMITTED IN SUPPORT OF THE NOMINATION OF PAUL COMPTON
    [GRAPHICS NOT AVAILABLE IN TIFF FORMAT]

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