[Senate Hearing 117-283]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 117-283


                  NOMINATIONS OF ARUN VENKATARAMAN AND 
                                DAMON Y. SMITH

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

                                HEARING

                               BEFORE THE

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

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             FIRST SESSION

                                   ON

                            NOMINATIONS OF:

    ARUN VENKATARAMAN, OF THE DISTRICT OF COLUMBIA, TO BE ASSISTANT 
  SECRETARY OF COMMERCE AND DIRECTOR GENERAL OF THE UNITED STATES AND 
                       FOREIGN COMMERCIAL SERVICE

                               __________

   DAMON Y. SMITH, OF MARYLAND, TO BE GENERAL COUNSEL, DEPARTMENT OF 
                     HOUSING AND URBAN DEVELOPMENT

                               __________

                             JULY 13, 2021

                               __________

  Printed for the use of the Committee on Banking, Housing, and Urban 
                                Affairs
                                
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                Available at: https: //www.govinfo.gov /

                               __________

                    U.S. GOVERNMENT PUBLISHING OFFICE                    
47-786 PDF                 WASHINGTON : 2022                     
          
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            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                     SHERROD BROWN, Ohio, Chairman

JACK REED, Rhode Island              PATRICK J. TOOMEY, Pennsylvania
ROBERT MENENDEZ, New Jersey          RICHARD C. SHELBY, Alabama
JON TESTER, Montana                  MIKE CRAPO, Idaho
MARK R. WARNER, Virginia             TIM SCOTT, South Carolina
ELIZABETH WARREN, Massachusetts      MIKE ROUNDS, South Dakota
CHRIS VAN HOLLEN, Maryland           THOM TILLIS, North Carolina
CATHERINE CORTEZ MASTO, Nevada       JOHN KENNEDY, Louisiana
TINA SMITH, Minnesota                BILL HAGERTY, Tennessee
KYRSTEN SINEMA, Arizona              CYNTHIA LUMMIS, Wyoming
JON OSSOFF, Georgia                  JERRY MORAN, Kansas
RAPHAEL WARNOCK, Georgia             KEVIN CRAMER, North Dakota
                                     STEVE DAINES, Montana

                     Laura Swanson, Staff Director

                 Brad Grantz, Republican Staff Director

                       Elisha Tuku, Chief Counsel

                        Mohammad Aslami, Counsel

                 Dan Sullivan, Republican Chief Counsel

                 John Crews, Republican Policy Director

                      Cameron Ricker, Chief Clerk

                      Shelvin Simmons, IT Director

                    Charles J. Moffat, Hearing Clerk

                                  (ii)


                            C O N T E N T S

                              ----------                              

                         TUESDAY, JULY 13, 2021

                                                                   Page

Opening statement of Chairman Brown..............................     1
        Prepared statement.......................................    21

Opening statements, comments, or prepared statements of:
    Senator Toomey...............................................     2
        Prepared statement.......................................    21

                                NOMINEES

Arun Venkataraman, of the District of Columbia, to be Assistant 
  Secretary of Commerce and Director General of the United States 
  and Foreign Commercial Service.................................     4
    Prepared statement...........................................    22
    Biographical sketch of nominee...............................    24
    Responses to written questions of:
        Chairman Brown...........................................    46
        Senator Toomey...........................................    47
        Senator Daines...........................................    52
Damon Y. Smith, of Maryland, to be General Counsel, Department of 
  Housing and Urban Development..................................     6
    Prepared statement...........................................    34
    Biographical sketch of nominee...............................    35
    Responses to written questions of:
        Chairman Brown...........................................    53
        Senator Toomey...........................................    55
        Senator Tillis...........................................    61

                                 (iii)

 
          NOMINATIONS OF ARUN VENKATARAMAN AND DAMON Y. SMITH

                              ----------                              


                         TUESDAY, JULY 13, 2021

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

          OPENING STATEMENT OF CHAIRMAN SHERROD BROWN

    Chairman Brown. The Senate Committee on Banking, Housing, 
and Urban Affairs will come to order. Today, we will consider 
two nominations for the Commerce Department's U.S. and Foreign 
Commercial Service and the Department of Housing and Urban 
Development.
    The President's nominee to serve as Director General of the 
U.S. and Foreign Commercial Service is Arun Venkataraman. For 
over two decades, Mr. Venkataraman has worked on matters of 
international trade both in the public and private sectors. He 
currently serves as Counselor to the Secretary of Commerce, 
advising the Department on trade and other international 
economic matters. In the Obama-Biden administration he served 
in the Commerce Department's International Trade 
Administration.
    He holds a J.D. from Columbia Law School, a Master of Arts 
in Law and Diplomacy from the Fletcher School of Law and 
Diplomacy, and a B.A. from Tufts University.
    The agency he has been nominated to lead exists to create 
American opportunity abroad, because we assume it will grow 
American jobs at home. But, in the past, too often it has meant 
creating corporate opportunity abroad and loss of jobs, 
especially union jobs, in places like my State and the Ranking 
Member's home State.
    We welcome you to the Committee. Thank you for joining us.
    We will also consider the nomination of a key housing 
expert today to join the senior leadership of HUD. Damon Smith, 
the President's nominee to serve as General Counsel of Housing 
and Urban Development, currently serves as a Senior Advisor to 
Secretary Fudge.
    Mr. Smith is the grandson of a Tuskegee Airman and we are 
proud to claim him as Athens, Ohio's, own. In addition to his 
wife, Janine, he is joined today by his parents, Bill and 
Charlene, who still live in Athens and who worked and retired 
from Ohio University. And I know that both of you will want to 
introduce your family members when it is your time to speak.
    Mr. Smith joined the Administration after serving as Senior 
Director of Advocacy and Counsel at the Credit Union National 
Association. He previously served as the Senior Counsel and 
Acting General Counsel at HUD during the Obama administration, 
providing legal and policy guidance, and setting the 
Department's litigation strategy and regulatory agenda. Before 
his Government service, he was a law professor at Rutgers and 
at American Universities. He has also served as an urban 
planner in East St. Louis, Illinois, and in St. Louis, 
Missouri.
    Mr. Smith is a graduate of Harvard Law School and holds a 
bachelor's degree in English and a master's degree in urban 
planning from the University of Illinois at Urbana-Champaign.
    I look forward to the testimony from both of you today.
    Ranking Member Toomey.

         OPENING STATEMENT OF SENATOR PATRICK J. TOOMEY

    Senator Toomey. Thank you, Mr. Chairman. Mr. Venkataraman 
and Mr. Smith, welcome to both of you and thank you for your 
willingness to serve. I want to comment about your roles, but 
briefly, let me just observe, we just recently saw the latest 
Consumer Price Index numbers that came out at 8:30 this 
morning. Quite high, surprisingly higher than expectations. The 
core CPI for the 12 months ending just last month, June 21, is 
the highest reading in almost 30 years, and at some point I 
think we need to acknowledge that inflation is with us, and it 
is more severe than most of us had expected, than most people 
had expected, and the Fed has assured us that it is all 
transitory, it is all going to go away. And I sure hope they 
are right, but I remain concerned that they put themselves in a 
position of being behind the curve if they are wrong, and it is 
already clear that it is more severe than they had expected.
    Having said that, the topic at hand are the nominees to two 
very important leadership positions at the Commerce Department 
and at HUD.
    At Commerce, the Director General of the U.S. and Foreign 
Commercial Service and Assistant Secretary for Global Markets 
needs to stand up for the interests of U.S. exporters overseas. 
And that includes addressing barriers to entry in foreign 
markets and attracting foreign direct investment, which we call 
FDI, into the U.S. There are a lot of U.S. businesses and jobs 
that depend upon exports. And the position is critically 
important right now as COVID-19 led to the imposition of new 
trade barriers and a sharp decline in global FDI.
    The Assistant Secretary will face a host of challenges 
right off the bat. The previous Administration's trade wars 
contributed to alienating a number of our allies. For instance, 
many of them imposed retaliatory tariffs on U.S. exports after 
Section 232 tariffs labeled their steel and aluminum exports a 
``national security threat.''
    ``Buy American'' policies that seek to limit foreign access 
to U.S. Government procurement contracts have caused our 
trading partners to threaten or actually do the same, and that 
potentially takes away a major export market for U.S. 
businesses and employees and workers. Foreign countries also 
frequently impose nontariff technical barriers to trade to 
limit U.S. entry and protect their domestic industries. The 
Assistant Secretary must oversee efforts to convince foreign 
Governments to overcome these concerns, remove these obstacles, 
and allow our businesses market access.
    Another major responsibility of the Assistant Secretary is 
to oversee U.S. Government efforts to attract foreign direct 
investment into the United States. The U.S. has long been a 
magnet for FDI, due to our combination of a skilled workforce, 
deep, broad capital markets, strong legal protections for 
investors, and, of course, the strongest economy in the world. 
But FDI has faced challenges. In 2020, global foreign direct 
investment fell 42 percent, according to U.N. Conference on 
Trade and Development.
    And I am concerned that the Biden administration is making 
attracting foreign direct investment more difficult. The 
Administration has proposed burdensome regulations and 
corporate taxes that would make it less desirable to invest in 
the United States. And the Administration's recent support for 
a waiver of intellectual property protections for vaccines 
sends a very disturbing signal to investors in any kind of 
intellectual property-intensive industries.
    So if confirmed, I hope you to use your position to promote 
policies that will achieve the mission entrusted to you, and 
that means giving a voice to U.S. exporters in the 
Administration's policy decisions and advocating for policies 
that make the U.S. an attractive destination for foreign direct 
investment.
    Now let me turn to HUD. The HUD's General Counsel plays a 
really important role advising the agency on what it can and 
cannot do. HUD needs a General Counsel who will help ensure 
effective oversight of Federal tax dollars that HUD spends. 
That includes rooting out waste, fraud, and abuse, and it is 
critically important given the $60 billion given to HUD this 
past year and the $68 billion requested for the next fiscal 
year.
    And unfortunately, HUD is already making poor choices on 
this front. For example, the agency has made it easier for 
illegal immigrants to get emergency housing vouchers by waiving 
regulations that require verification of citizenship or legal 
immigration status. In addition, HUD has removed sensible 
restrictions on Puerto Rico's use of disaster recovery funds.
    The General Counsel must ensure that HUD is complying with 
the law, despite whatever political pressures may come to bear. 
In other words, he cannot be a ``yes'' man.
    In fact, the General Counsel needs to be willing to push 
back on policies that are inconsistent with the law. 
Unfortunately, we have seen HUD ignore certain laws recently. 
For example, Congress has explicitly prevented any part of a 
borrower's downpayment for an FHA loan from being financed by 
an entity benefiting from the mortgage transaction. But, as I 
noted in a recent letter to HUD, the agency continues to turn a 
blind eye to circular funding schemes where FHA borrowers 
finance their own downpayment assistance in contravention of 
the law.
    Second, the General Counsel needs to ensure that all legal 
requirements with respect to rulemaking and guidance are 
followed. That means meaningfully considering all input from 
stakeholders, preparing all supporting materials to accompany 
significant policy guidance, and completing regulatory impact 
analyses which describe the economic burdens on stakeholders.
    Third, the General Counsel needs to be readily available 
and work with Congress to ensure laws are, in fact, faithfully 
implemented, especially including Members of this Committee.
    Let me close by saying, Mr. Venkataraman, I look forward to 
hearing how you plan to effectively support U.S. exporters 
overseas and attract foreign investment to the U.S. And Mr. 
Smith, I look forward to hearing how you will ensure that HUD 
faithfully complies with the law and conducts thorough 
oversight of how it spends taxpayer dollars. If confirmed, you 
both will have really important missions to fulfill.
    Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Toomey.
    For administration of the oath, would Mr. Venkataraman and 
Mr. Smith rise please. Raise your right hands.
    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?
    Mr. Venkataraman. I do.
    Mr. Smith. I do.
    Chairman Brown. Do you agree to appear and testify before 
any duly constituted Committee of the Senate?
    Mr. Venkataraman. I do.
    Mr. Smith. I do.
    Chairman Brown. Thank you. You may take your seats.
    Mr. Venkataraman, would you begin your testimony.

 STATEMENT OF ARUN VENKATARAMAN, TO BE ASSISTANT SECRETARY OF 
                 COMMERCE AND DIRECTOR GENERAL
    DESIGNATE, UNITED STATES AND FOREIGN COMMERCIAL SERVICE

    Mr. Venkataraman. Thank you, Senator. Chairman Brown, 
Ranking Member Toomey, Members of the Committee, thank you for 
the opportunity to appear before you today. I am honored to be 
nominated by President Biden to be the Assistant Secretary of 
Commerce for Global Markets and the Director General of the 
U.S. and Foreign Commercial Service. I want to thank Secretary 
Raimondo for her support of my nomination. I also want to thank 
the Committee for the opportunity to meet with members of your 
staff this past week.
    I feel the deepest sense of gratitude and humility in being 
considered for this position. When my parents brought me to 
this country 45 years ago, we could not appreciate that we were 
part of a proud lineage of immigrants that came through New 
York, like us, in search of better opportunities. And, my 
parents certainly could never have imagined that those 
opportunities would lead to my being here today to be 
considered for this position by the Committee.
    I remain grateful to my parents for making all this 
possible because of their bold decision to move 8,000 miles 
away from everything they ever knew to start a new life for us 
here in America. Their support for everything that I do has 
been unwavering, and I am glad to have them here today to share 
this experience with me.
    I have had the privilege of spending much of my career in 
public service, working on a wide range of international trade 
issues on behalf of the American people. I have negotiated with 
some of our most challenging trading partners on issues like 
subsidies and tech policy, and held them accountable to their 
commitments under our trade agreements. I have collaborated 
with foreign Governments to address shared challenges in third-
country markets. I have also helped defend the legitimate 
policy tools we have to protect American companies and workers 
from unfair State-backed competition from countries like China. 
And in these and other areas, I have worked extensively across 
the multiple agencies and with various stakeholders to build a 
unified position for the Government.
    From working and leading teams in highly matrixed 
organizations, both in and out of Government, I fully 
understand that no one of us has a monopoly on solutions to the 
types of trade problems we are being called on to address at 
this time in our history. We increasingly need to look beyond 
our silos to bring to bear the right perspectives and knowledge 
to any challenge. That is why I am committed to working 
together with my colleagues across the Commerce Department and 
across the Administration, and with Congress, and with all 
stakeholders, to meet those challenges head-on.
    In over 20 years working on international trade, my career 
has allowed me to see how trade works from different vantage 
points--from the judicial branch, from an international 
organization, from the private sector, and from the public 
sector. I believe that Global Markets is uniquely situated to 
make trade work for American firms and their workers. This team 
works with foreign Governments to make sure American firms get 
the fair access they deserve to foreign markets. Global Markets 
also helps small and medium-sized enterprises become new 
exporters and take advantage of the commercial opportunities 
created by trade agreements.
    Finally, Global Markets leverages the inherent 
attractiveness of the United States as an investment 
destination to bring foreign companies to America and create 
jobs. Through these core activities, Global Markets brings to 
life the potential that trade and investment offer the American 
people, and I am committed to seeing that mission through to 
its fullest, if confirmed.
    One last point I would note for the Committee. I fully 
appreciate the privilege I would have if I were confirmed to 
this position. I have had the fortune of working closely with 
Global Markets through much of my Government career, most 
recently as the International Trade Administration's Director 
of Policy in the Obama administration. I know firsthand the 
high caliber of staff and the deep commitment of the Global 
Markets team to creating opportunities and bringing the 
benefits of trade to the American people. If confirmed, I 
commit to you to be worthy of leading this high-performing team 
to do what it does best and drive the Administration's efforts 
to strengthen precisely that connection between trade and the 
American people.
    Thank you again for this opportunity to be considered for 
this position and to appear before you today. I look forward to 
your questions.
    Chairman Brown. Thank you, Mr. Venkataraman. Mr. Smith, you 
are recognized for 5 minutes.

 STATEMENT OF DAMON Y. SMITH, TO BE GENERAL COUNSEL DESIGNATE, 
          DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

    Mr. Smith. Thank you, Mr. Chairman. Chairman Brown, Ranking 
Member Toomey, and distinguished Members of the Committee, I am 
honored and humbled to be before you today as the nominee for 
General Counsel of the Department of Housing and Urban 
Development.
    I would like to first take this opportunity to thank 
President Biden for this nomination and Secretary Fudge for her 
leadership and support. I also want to thank my family, 
especially my mother and father, who are here with me today. 
The lessons that they have taught and the values that they 
instilled in me are integral to who I am as a husband, a 
father, a professional and a public servant.
    Finally, I want to thank my wife, Janine, who is also here 
with me. She served as a staffer here in the U.S. Senate and 
has passed along her great respect for this august institution. 
She has been a true partner and a blessing to me, our three 
children, and our entire family.
    HUD's Office of General Counsel is a special place to me, 
filled as it is with able attorneys, analysts, and support 
staff of the highest caliber. I have had the pleasure of 
working with them and leading them in the past, in different 
capacities, but if confirmed, it would be a distinct honor to 
do so and work with them and all the incredible employees of 
HUD as their General Counsel.
    There are several reasons why I find myself here today, and 
I would like to share just a few of them with you. My first 
lessons in housing and community came from my grandmother, who 
passed away this past March, just shy of her 100th birthday. 
She did not own a car, and she did not have much money, so she 
used to walk everywhere, often for many miles and often in high 
heels if headed to work. In the summers I got to tag along with 
her and regaled in the stories that she would tell me about the 
places that we were going and the people that we were seeing 
along the way. Everyone seemed to love her. They all waved and 
communicated with her in ways that were indicating to me that 
we were in a safe, friendly neighborhood, no matter where we 
were. I certainly recognize that although she did not have much 
in the way of formal education, she taught me quite a bit, 
invaluable lessons about the importance of safe and supportive 
communities.
    My first lessons in public service probably came from my 
father and grandfather, who both served ably in the military. 
My father, who I just introduced moments ago, and my 
grandfather, Brigadier General Charles McGee, who you, Mr. 
Chairman, mentioned during my introductions. He started his 
career as a Tuskegee Airman, flew combat missions in three 
wars, served his country with great distinction, and certainly 
I learned valuable lessons from him and my father, and other 
role models who served honorably, dedicating their lives, for 
them even after their military service was over, to empowering 
succeeding generations. They taught me that serving others in 
whatever way we can is incredibly rewarding and one of life's 
highest callings.
    Those lessons were taught to me as I grew up, as you 
mentioned, Mr. Chairman, in Athens, Ohio, a small college town 
in southeastern Ohio, not too far from the West Virginia 
border. I recognized there the face of rural poverty and the 
impact that affordable housing, including manufactured housing, 
can have on keeping a community sustained. My career as a 
planner began in East St. Louis, Illinois, where I worked on 
development and housing issues in an urban setting.
    The through line in my diverse experiences is a fundamental 
belief in our ability to improve communities, provide 
opportunity, and create better housing and development outcomes 
for everyone.
    As a student and in my career as a planner and academic, I 
collaborated with low-income residents on housing and community 
development issues and learned incredibly valuable lessons in 
perspective and perseverance. As an attorney in private 
practice, I have worked on real estate and regulatory 
compliance issues with developers, building owners, and 
financial institutions, and I learned about the importance of 
clear guidelines, ethical leadership, and building and 
rewarding a culture of compliance. And as a public servant at 
the State and Federal levels, I have provided advice and 
counsel to policymakers and attorneys at all levels of 
Government, learning how to work collaboratively and manage 
people effectively to achieve better outcomes.
    All these experiences have increased my knowledge and 
appreciation of the work done by a myriad of stakeholders to 
ensure that we can create strong, sustainable, inclusive 
communities and quality affordable homes for all. If confirmed, 
I will use the knowledge gleaned from these experiences to 
ensure the Secretary, Deputy Secretary, and their staffs are 
provided with timely and helpful counsel. And I will work hard 
to ensure that the Office of General Counsel and the entire 
Department operate effectively, efficiently, and ethically in 
delivering on our critical mission to the American people.
    Thank you for the opportunity to testify today. I look 
forward to your questions.
    Chairman Brown. Thank you, Mr. Smith.
    Mr. Venkataraman, I imagine you have seen the most recent 
findings from the International Trade Commission, telling us 
what the Ohioans I have talked to have known all long. In 
almost four decades of trade agreements under trade promotion 
authority we have seen barely any job creation in service 
sector jobs while hollowing out our manufacturing industries. 
We just had two deputy USTR nominees before the Finance 
Committee--three of us in that room sit on that Committee--who 
have acknowledged our country's terrible track record of 
understanding the effects of trade policy on American workers.
    In the past, the job for which you have been nominated has 
been all about promoting American companies to the world, even 
at the expense of American workers. This Administration surely 
has a different view, and my question is what will you do to 
promote American workers and ensure that they are at the 
absolute center of American trade policy?
    Mr. Venkataraman. Thank you, Mr. Chairman. The first thing 
I would say is that when I think about Global Markets, workers 
are very much at the center of the mission. And why do I say 
that? That is because, first and foremost, the companies that 
Global Markets exist to support are the small and medium-sized 
businesses that employ many of the workers that you are talking 
about. So I want to work with those companies to ensure that 
they have the opportunities that all the big companies have all 
the time already. How can we make sure that the smallest of our 
companies, that the most vulnerable, have access to those 
opportunities so that they can produce the jobs at home and 
create employment opportunities for all people in the economy.
    Second, I think it is important to note that when we 
advocate for policy changes in foreign Government we need to 
keep workers front of mind. And so what does that mean? In my 
view, that means not just advocating because companies benefit, 
but really understanding the impact some of these foreign 
Government policies have on the workers. And what does that 
mean? That means trying to understand how some of these foreign 
Government policies create unlevel playing fields that force 
companies to lay off workers here in the United States, and 
where the workers bear the brunt of those foreign Government 
policies.
    So understanding the impact of those foreign Government 
policies will be critical to understanding which foreign 
policies we really need to address in our dialogs with foreign 
Governments. Thank you.
    Chairman Brown. Thank you. Mr. Smith, the General Counsel's 
Office plays an important role in making sure that all 
landlords live up to their obligations to provide the assisted 
families with a safe home. What role will you play in 
addressing existing problems that put residents at risk, and 
what will you do to ensure that maintenance problems are 
addressed before residents are, in fact, at risk?
    Mr. Smith. Thank you for that question, Mr. Chairman. I 
certainly recognize that one of the major roles that OGC plays 
within the Department is to make sure that FHA, Public and 
Indian Housing, and our other program offices are provided with 
the correct amount and efficient, effective legal advice that 
they need in order to oversee a number of these programs.
    We also have program enforcement attorneys in the 
Departmental Enforcement Center that is under the Office of 
General Counsel that plays a critical role in holding 
accountable, as Ranking Member Toomey said, those who might try 
to commit waste, fraud, and abuse.
    As it relates to the obligations that these landlords have 
to their residents, making sure that they abide by HUD's rules 
and regulations is an absolutely important part of what the 
Office of General Counsel is about, and I look forward to 
working with our Secretary and our FHA Commissioner, when that 
person is confirmed, to be able to make sure that we are making 
certain that they are abiding by their requirements.
    Chairman Brown. Thank you. Mr. Smith, more than two million 
homeowners are still in forbearance. Many more will be exiting 
that forbearance in the coming months. How will you work with 
FHA staff to ensure that no family experiences avoidable 
foreclosure?
    Mr. Smith. Thank you again for that question, Mr. Chairman. 
As you are aware, the FHA has a very robust waterfall of 
requirements that are necessary to prevent foreclosures from 
occurring. Not only are they disruptive to the families and the 
communities where those foreclosures take place, but they have 
a significant cost to the Mutual Mortgage Insurance Fund. So we 
have very robust requirements that servicers must follow prior 
to a foreclosure, and a number of methods to avoid it. And we 
will make sure that certainly they are abiding by those 
requirements, whenever possible, to make certain that people 
are given the opportunity to stay in their homes, and were 
given the opportunity to avoid additional costs to the fund.
    Chairman Brown. Thank you. Senator Toomey.
    Senator Toomey. Thanks, Mr. Chairman. I will just start by 
pointing out that despite the occasional protectionist leaning 
of the previous Administrations, I think it is fair to say that 
prior to, say, the COVID pandemic hitting us, we were living in 
one of the freest trading, global trading environments in the 
last 100 years, and in that context we had achieved full 
employment, record low unemployment, very strong economic 
growth, and accelerating wage gains, accelerating most rapidly 
for the lowest-income workers, which suggests that terrific 
circumstances for workers is very much consistent with 
expanding trade.
    Mr. Venkataraman--and I hope I am pronouncing that 
approximately correctly there--one of the things the previous 
Administration did is it imposed Section 232 tariffs on steel 
and aluminum imports, including from some of America's closest 
allies and best friends and nearest neighbors, and in response 
there was retaliation by these countries against American 
exports.
    Now I fully acknowledge that in your role you will not have 
responsibility for deciding what happens with 232 tariffs, but 
I am wondering if you could comment on any observations you 
have about how the retaliation against those tariffs has 
affected American exporters.
    Mr. Venkataraman. Thank you, Senator Toomey. Absolutely. We 
have been meeting, at the Commerce Department, with a number of 
industries on the downstream side and others that are affected 
by the tariffs, and particularly the retaliatory tariffs that 
have been imposed, including by some of our allies, as you 
note. The Administration takes those concerns absolutely 
seriously and is committed to not only ensuring the long-term 
viability of our steel and aluminum industries, who are in this 
position through no fault of their own but because of a global 
excess capacity problem. But the Administration is equally 
committed to ensuring that industries do not bear the brunt of 
unfair retaliatory tariffs, and so we have begun, as you know, 
Senator, working with the European Union to figure out how to 
address the underlying problem of global excess capacity while 
encouraging them to remove those retaliatory tariffs.
    Senator Toomey. Yeah. I think the imposition of the 232 
tariffs really were not motivated by an excess capacity issue. 
I acknowledge the excess capacity issue but I think that was a 
separate matter. But I appreciate your answer.
    Mr. Smith, As you know, Congress has a very important role 
in conducting oversight of HUD, and so I want to ask, if 
confirmed, will you commit to working with Members of this 
Committee to answer our questions about HUD's compliance with 
the law?
    Mr. Smith. Yes, Ranking Member Toomey, I do.
    Senator Toomey. Great. So I should point out, I have an 
outstanding request to HUD, and to specifically the inspector 
general at HUD, for records about HUD's compliance with the law 
regarding downpayment assistance. HUD's IG has been providing 
records, and I appreciate that they have been working with my 
staff to work out a schedule by which we will get the documents 
we need. I would just like to ask, if you are confirmed, if you 
will commit to facilitating, to the extent it is appropriate 
and necessary, this ongoing response to my requests.
    Mr. Smith. Yes, Ranking Member Toomey, I can commit to 
working with your office constructively to make sure that you 
are provided with the information you are requesting.
    Senator Toomey. Great. Thank you. The Biden administration, 
as I am sure you know, repealed the Trump-era AFFH rule. It is 
my understanding that HUD intends to issue a new AFFH rule to 
amend the Obama-era rule. This all gets a little bit confusing, 
but here is my concern. The Obama-era rule was enormously 
onerous, and required consultants to figure out how to even 
comply with these questionnaires that delved into areas that 
had nothing to do with housing, had nothing to do with even 
their own geography in some places. Even the now HUD Deputy 
Secretary but previous CEO of NAHRO advocated for a less-
burdensome rule.
    So my question is, in the development of this rule--and I 
know that you will not unilaterally write this rule, but you 
would be an influential voice in the process of its 
development--I hope we end up in a place where municipalities 
do not have to hire consultants just to comply with a Federal 
rulemaking in this regard, and they do not have to complete 
analyses that have to do with issues completely outside of the 
geography of their own municipality. Do you have any thoughts 
on the complexity of that rule?
    Mr. Smith. Thank you for the question, Ranking Member 
Toomey. I do want to say that because we are going to be 
engaging in notice and comment rulemaking on that issue I do 
not want to opine on where we ultimately will end. But I do 
recognize that the Deputy Secretary, and I believe the 
Administration, in several announcements associated with their 
recent pronouncements on AFFH, have acknowledged some of those 
concerns that you have described. We look forward to hearing 
about those in the comment period and certainly would look 
forward to the opportunity to address those concerns through 
that notice and comment rulemaking.
    Senator Toomey. Thank you. Thank you, Mr. Chairman. I just 
hope we could agree that a sensible rule would probably not 
require highly paid outside consultants to fill out a 
questionnaire, but a thoughtful, sensible, competent person 
with that responsibility for a given municipality ought to be 
able to do it. Thank you.
    Chairman Brown. Thank you, Senator Toomey. Senator Warren 
from Massachusetts is recognized.
    Senator Warren. Thank you, Mr. Chairman. So Congress is 
preparing to make historic investments in our housing 
infrastructure. We have only one source of housing guaranteed 
to be affordable year after year for low-income families, and 
that is public housing. But because Congress has failed, year 
after year, to provide sufficient funding, we are losing an 
estimated 10,000 units of public housing every year, just to 
deterioration and disrepair.
    That is why my bill, with Representative Velazquez, the 
Public Housing Emergency Response Act, calls for $70 billion 
for the Public Housing Find to wipe out this repair backlog and 
bring our public housing into good repair. But when we invest 
in public housing, there is actually another benefit. Under 
Federal law, when taxpayer dollars are invested in public 
housing construction and repair, some portion of that money 
must be spent in ways that provide jobs for public housing 
residents. That law, called Section 3, leverages every public 
housing dollar into economic opportunities for low-income 
families.
    Mr. Smith, if confirmed, you would serve as one of the top 
lawyers at the Department of Housing and Urban Development, 
which administers public housing funding. Let me just ask you, 
do you believe that Section 3 is beneficial for families living 
in public housing?
    Mr. Smith. Thank you for that question, Senator. If 
confirmed, I would certainly look forward to the opportunity to 
work with our Fair Housing Equal Opportunity Office that 
administers Section 3 to make sure that we are providing those 
opportunities that are required under that law, to be sure 
that, whenever possible, public housing residents can benefit 
from the funding that goes to public housing agencies.
    Senator Warren. Well, you know, I appreciate that. Despite 
the promise of Section 3, its mandate has been chronically 
unmet and underenforced. So just look at what happened after 
the last financial crisis. Congress invested $4 billion in 
public housing, helping to build more than 1,600 new housing 
units and tens of thousands additional energy-efficient units. 
But the HUD inspector general found that HUD did not enforce 
Section 3 requirements. And what that meant is that families 
living in public housing missed out on good jobs that could 
have helped them recover from the crash.
    President Biden has now called for an investment in public 
housing that is ten times bigger than what the Federal 
Government did after the financial crash. So let me ask it this 
way, Mr. Smith. If confirmed, will you review and evaluate 
HUD's Section 3 enforcement practices to ensure that low-income 
residents have access to the jobs that they have been promised 
by Federal law?
    Mr. Smith. Thank you, Senator, for the opportunity to 
address the question in that manner as well. I certainly can 
confirm that if I have the opportunity to serve as General 
Counsel at HUD we will conduct such a review to make sure that 
we are abiding by the law and that the public housing agencies 
that we work with are as well.
    Senator Warren. Well, enforcement matters, and I look 
forward to following up with your office on that.
    Enforcement is a critical tool, but it is only as good as 
the underlying rules. We need to make sure that Section 3 is 
set up in a way that makes it easier to deliver jobs and harder 
to evade. So, Mr. Smith, let me just ask you. How can HUD 
strengthen Section 3?
    Mr. Smith. Senator Warren, I believe that certainly there 
are a number of opportunities that HUD should have to 
strengthen Section 3. One, as you described, is to conduct a 
review to make sure that under our existing rules in the 
known----
    Senator Warren. Right. But I am asking about improving the 
rules.
    Mr. Smith. I certainly think that we can, in conjunction 
with the Secretary and the Assistant Secretary for FHEO, devise 
a more effective way to deliver Section 3 benefits as required.
    Senator Warren. Can you put a little more meat on the bone 
on that, about what you have in mind? Give me some ideas about 
what you would do to strengthen it.
    Mr. Smith. Senator Warren, I do not want to get ahead of 
certainly my policymakers at the agency in terms of some things 
that we can do, but within my purview, you mentioned one of 
them when you talked about enforcement, and making sure that we 
let program recipients, funding recipients know what 
expectations are very clearly and that we provide technical 
assistance to make sure that they understand how they can 
comply.
    Senator Warren. Well, I appreciate it. Enforcement is 
obviously very important, but we need better underlying rules 
too. You know, Section 3 is a win-win for housing investments. 
It helps us address the affordable housing crisis and it helps 
us create good jobs for people who need them. It would bolster 
the recovery and help produce lasting benefits for public 
housing residents. But we have to meet that mandate. It is not 
enough just to have it on the books.
    So I look forward to working with you during this public 
housing crisis and doing all we can to end it. Thank you.
    Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Warren. Senator Cortez 
Masto from Nevada is recognized.
    Senator Cortez Masto. Thank you, Mr. Chairman. Gentlemen, 
welcome. Congratulations on your nominations. Welcome to your 
family members as well. I am looking at your parents right now. 
The fathers have not smiled yet, but I assume they will when 
this process is over, and you are doing very well.
    So let me just start, Mr. Venkataraman. Let me start with 
you. Senator Toomey talked a little bit about Section 232 
tariffs. I also sit on Senate Finance. I will tell you I have 
raised this issue with the USTR. I am hearing from many of my 
businesses in my home State of Nevada about the impact of these 
tariffs.
    And so let me just, because of your background, and I think 
it is an important role now that you are going to have in 
Commerce, let me ask you this. What do you see as the path 
forward for Section 232 tariffs, and how can you work with them 
now in your new role with the USTR to ensure a process for 
relief?
    Mr. Venkataraman. Thank you, Senator Cortez Masto. So in 
the role that I hope to be confirmed for, there is a unique 
opportunity to work with our trading partners. As Senator 
Toomey noted, a number of our trading partners have raised 
concerns about the application of Section 232 tariffs. The 
position that I hope to be confirmed for affords me an 
opportunity to engage those countries and work with my 
colleagues across the Commerce Department and with USTR to 
ensure that we are hearing those concerns and finding paths 
forward that both ensure the long-term viability of our steel 
and aluminum industries while mitigating the concerns for the 
sectors that you have talked about, in terms of the concerns 
you have heard from your industries.
    Senator Cortez Masto. And I know you cannot put a timeframe 
on it, but what would you give to me to tell my businesses, who 
are really paying attention to this and being harmed because of 
it?
    Mr. Venkataraman. Sure. Senator, I would encourage you to 
let your businesses know that we are hearing them and we 
welcome continuing hearing from them about those concerns, 
because the more we understand those concerns, the more 
granularly we understand those concerns, the better we are in a 
position to be responsive. And having heard those concerns, 
those concerns are very much front of mind as we chart our path 
forward. And so we are hearing them and we are working to 
address those concerns as best we can.
    Senator Cortez Masto. Thank you. I appreciate that. Mr. 
Smith, in fiscal year 2020 appropriations it included a 
requirement that HUD issue guidance for the inclusion of 
manufactured housing in States' and local governments' 
consolidated plans. I, along with my colleague, sent letter to 
then-HUD Secretary Carson and Secretary Fudge, urging them to 
issue guidance that would allow for manufactured housing to be 
considered in consolidated plans.
    As of today, this rulemaking has still not been 
implemented. So my question to you is, if confirmed, what steps 
would you take to ensure that HUD follows through on this 
rulemaking, to make sure the 20 million people who live in 
manufactured homes are considered in housing plans?
    Mr. Smith. Thank you for that question, Senator Cortez 
Masto. I certainly can tell you that, if confirmed, I would 
work very closely with our FHA Commissioner and our 
manufacturing housing offices to make sure that we are 
complying not only with the legal requirements but that we are 
doing what we can to address the affordable housing crisis that 
we have by providing that type of regulatory framework for 
manufactured housing, where necessary, and where that would be 
effective and helpful in making sure that that gets to people 
who need it.
    Senator Cortez Masto. Thank you. Let me talk a little bit 
about Tribal housing. I appreciate this Committee and many of 
my colleagues for their focus on Tribal housing and improving 
affordable rental housing and home ownership opportunities for 
Native American communities. This is something I focus on, as 
well as with some of my colleagues, on the Indian Affairs 
Committee as well.
    If confirmed, how would you use your role to support Tribal 
housing?
    Mr. Smith. Again, thank you for that question, Senator. I 
had the opportunity, in this Administration, to sit in on a 
Tribal consultation on issues of Tribal housing, and to say 
that it was eye-opening is probably to do too little to really 
describe how these Tribal leaders and housing leaders in Tribal 
communities were able to articulate some of the many different 
concerns that they have. Certainly this Administration has 
agreed to engage in meaningful consultations on these issues, 
and will continue to do so.
    The Office of General Counsel plays a critical role in 
that, as we support our Office of Public and Indian Housing and 
their efforts to provide housing assistance to Tribes. And 
certainly we will look forward to the opportunity to be able to 
engage more heavily in that than I have in the past. It is not 
an issue that I was engaged in, in my previous service, but one 
that I recognize is a critical path to what we are trying to 
achieve today.
    Senator Cortez Masto. Thank you, and I would invite you to 
really engage with our Tribal communities across the country, 
in consultation, and to really focus on this issue as well. I 
would probably think it would be the first conversation they 
would have with anybody from HUD on this particular issue, so I 
look forward to that as well.
    Again, thank you for your willingness to serve, and 
congratulations.
    Chairman Brown. Thank you, Senator Cortez Masto. A number 
of other Senators, we think, are on their way here. I have one 
question in the meantime. I think Senator Daines is trying to 
come back, and Senators Ossoff and Van Hollen. But let me do 
one more question, and certainly Senator Toomey is free to do 
what he wants to do too.
    Mr. Venkataraman, as you know, American small businesses 
are operating in markets where foreign companies often try to 
circumvent our trade laws. Our bipartisan bill with Senator 
Portman, the other Ohio Senator, and a number of us, have 
worked on, Leveling the Playing Field 2.0, it would give 
Commerce new tools to go after trade cheats in more effective 
ways. Please describe for us briefly, if you would, what steps 
you intend to take to help ensure American small and medium-
sized businesses and minority-owned business, from places like 
Canton, Ohio, or Scranton, Pennsylvania, can compete on a more 
level playing field?
    Mr. Venkataraman. Thank you, Senator. Well, in my position 
that I hope to confirmed for, as Assistant Secretary for Global 
Markets, my focus would be on helping ensure that level playing 
field, in terms of opportunities those businesses can face in 
reaching foreign markets. I would welcome the opportunity, if 
confirmed, to work with my colleagues across the Commerce 
Department, including in our Enforcement and Compliance 
Division, to ensure that small businesses around the country 
are aware of the opportunities and the tools that are available 
to them, and to make those tools accessible to them so that 
they can ensure the level playing field in the sectors in which 
they operate.
    Chairman Brown. Thank you. Senator Ossoff from Georgia is 
recognized for 5 minutes.
    Senator Ossoff. Thank you, Mr. Chairman. Thank you for 
convening this hearing, and Ranking Member as well. Mr. 
Venkataraman, I would like to discuss with you the future of 
America's solar manufacturing sector, a particular interest to 
the State of Georgia. As the clean energy sector continues to 
grow and the transition from fossil fuel combustion to 
renewable energy necessarily accelerates to address climate 
change, the United States and the State of Georgia have a 
tremendous opportunity, economically. In Georgia alone, there 
are already 50 solar manufacturers, including the Q CELLS plant 
in Dalton, Georgia, which is little known and yet is the 
largest solar factory in the Western Hemisphere.
    So my question for you, Mr. Venkataraman, is should you be 
confirmed in this role, in order to ensure that workers in 
places across my State, in cities and towns like Covington and 
Mansfield, Griffin, LaGrange, and Dalton can participate in 
this growing clean energy sector, will you commit to taking 
strong action to expand access to export markets for U.S. solar 
manufacturers such as ours in Georgia?
    Mr. Venkataraman. Thank you, Senator. If confirmed, I would 
indeed be able to commit to ensuring that we fight for markets 
for our solar exporters.
    Senator Ossoff. Thank you. I appreciate the answer. Mr. 
Chairman.
    Chairman Brown. Thank you, Senator Ossoff. Senator Van 
Hollen from Maryland is recognized for 5 minutes.
    Senator Van Hollen. Thank you, Mr. Chairman, Ranking Member 
Toomey, and congratulations to both of you on your nominations.
    Mr. Venkataraman, let me start by asking you a question 
about tools available to you, if confirmed, to help boost U.S. 
trade with Africa. I chair the Africa Subcommittee on the 
Senate Foreign Relations Committee, and Administrations, both 
Republicans and Democrats, have said they want to increase that 
investment. And yet, despite those efforts, if you look at the 
year 2019, the most recent year I have data for anyway, Africa 
accounted for only 1.4 percent of U.S. global trade, and 
received 0.7 percent of U.S. foreign direct investment.
    It seems we can do a lot better, given the fact that the 
younger population in Africa is one of the fastest growing in 
the world. There are many economic opportunities for Africans 
and for trade with Africa. How would you use your office, if 
confirmed, to improve on the numbers from the past and really 
boost our economic engagement with Africa?
    Mr. Venkataraman. Thank you, Senator Van Hollen. If 
confirmed, I would certainly welcome the opportunity to use the 
tools we have in global markets to significantly advance our 
trade investment with Africa. I agree with you that the 
demographics and the opportunities in Africa are too great to 
ignore, and I think that there are a number of American sectors 
that would contribute, not just in terms of exports but to the 
growth and development across the continent. I would welcome 
the opportunity, if confirmed, to use the tools we have at 
Global Markets, including through our Foreign Commercial 
Service Officers that are stationed throughout Africa, as well 
as working closely with agencies like the Development Finance 
Corporation, the EXIM Bank, and the State Department and USTR 
to ensure that we develop a more robust plan to engage Africa 
and to contribute to Africa's growth and development for the 
long term.
    Senator Van Hollen. Well, thank you. I appreciate you 
mentioning those other agencies, because I think this does 
really require teamwork, and everybody around one table. I was 
pleased that Secretary Blinken joined an earlier discussion 
with the International Finance Development Corporation, and 
that is one of many tools. Congress recently passed legislation 
to improve our competitiveness that increased the overall 
authorization for that to $100 billion. So I hope you will have 
a close working relationship with them.
    Just picking up on Senator Ossoff's question, but not 
limiting it simply to clean energy, which I think is a critical 
sector, but, you know, one of the concerns that the Office for 
Commercial Services has sort of overlooked the small business 
community in the United States. What can you do to change that?
    Mr. Venkataraman. Senator, I can commit to you that if 
confirmed, indeed one of my priorities is to expand and double 
down on the work the Global Markets team and the Foreign 
Commercial Service and the Domestic Commercial Service is doing 
with small companies. I think those small companies are the key 
to long-term economic success for our country, and they are the 
ones that are the most in need of, and should be benefiting 
from the unique Government services that Global Markets has to 
offer.
    Senator Van Hollen. I appreciate that, because as you say, 
as you are suggesting, you know, large companies have the 
capacity to do much of this, sometimes with the assistance of, 
you know, this office, and sometimes they can do it on their 
own. But those smaller businesses really do depend on it.
    Mr. Smith, close here to Washington, DC, you are in Prince 
George's County in the State of Maryland, one of the most 
affluent African American counties in the country. I was just 
talking with the Prince George's County Association of Realtors 
recently, and a number of them expressed concern with what they 
perceive as to be unfair appraisals for their homes. And this 
has been a theme that I have heard, not just in Prince George's 
County but other parts of the State and the country. Can you 
speak to that, and what you could do to bring to that problem, 
if confirmed?
    Mr. Smith. Thank you for that question, Senator. As you are 
aware, the Administration has announced an effort to look into 
appraisal bias, in particular, and we are working with 
Department of Justice and many other agencies to make sure that 
as a whole-of-Government response there is an ability for this 
Administration to be able to understand that bias and to be 
able to take steps to address it.
    Certainly our work, ensuring that appraisers, among other 
participants in the real estate market, abide by the Fair 
Housing Act and its requirements and restrictions will be a 
major component in that, and if confirmed, I look forward to 
working on that issue.
    Senator Van Hollen. Thank you. Thank you, Mr. Chairman.
    Chairman Brown. Thank you, Senator Van Hollen. I will ask 
one more question, and Senator Menendez, I believe, is on his 
way. Mr. Venkataraman, you will be managing a broad portfolio 
of export promotion efforts to encourage foreign investments in 
the U.S. at the ITA and Commerce, working with hundreds of 
Commerce employees and U.S. Foreign Service Officers in 
embassies all over the world to promote U.S. products and 
services and jobs. Should you be confirmed, what do you see as 
the major challenges facing you in this role, and what will be 
your priorities and strategy in addressing these challenges?
    Mr. Venkataraman. Thank you, Mr. Chairman. I have had an 
opportunity to touch on some of these, and I am happy to 
explain further what I think my priorities would be, if I were 
confirmed to this position.
    I think first and foremost, as Senator Van Hollen 
highlighted, the critical role that small businesses play, and 
the critical needs they have, they have always had, but 
particularly as we emerge from this pandemic, small businesses 
have been the ones that have been devastated in ways that are 
quite different from other corporations. And we need to help 
those small businesses recover, and being able to provide them 
access to foreign markets is one critical way of doing that. 
Giving them access to foreign markets is really expanding their 
customer base. And so giving them access to those new customers 
is a key area that I want to focus on. I am fortunate that our 
Global Markets team already focuses on small businesses, with 
over 85 percent of our clients being small businesses today.
    But what I am interested in doing are a couple of things. 
One, taking the small businesses that are already our clients 
and encouraging them and helping them find ways to export to 
new markets that they are not reaching yet. Two, trying to find 
ways to expand the small business space that use these 
Government services. So how can we get new small businesses? 
There are a number of small businesses that are highly 
competitive in this country, but they should be accessing 
foreign markets and getting access to those customers. How can 
we help them do that?
    Part and parcel of that is also bringing in new small 
businesses from communities that may not have always used our 
services before. These underserved communities that may not 
have access to the same opportunities. How do we make sure they 
recognize that these Government services are not just available 
to them, but how do we make sure that they actually avail 
themselves of those services so that they can achieve the same 
benefits that other small businesses achieve when they use our 
services to achieve export markets? So that is the first thing 
I would mention.
    The second thing I would mention is as we enter these 
export markets, we are not just competing with the companies 
from those export markets. We are competing against Chinese 
companies, European companies, Korean companies, in those 
markets. How could we improve our competitiveness vis-a-vis 
those third-country competitors, so that we are the most 
competitive in each of the markets where we operate? So 
understanding those competitive conditions will be another 
focus of mine.
    And the last thing I would mention is I think as we develop 
our dialogs with foreign Governments, we need to make sure that 
the engagement we have with foreign Governments actually 
reflects our domestic competitiveness concerns. The President 
has laid out an ambitious agenda for how to achieve 
competitiveness and how to strengthen the American economy, 
including strengthening critical industries and focusing on 
building resilient and secure supply chains. How do we ensure 
that our dialogs with foreign Governments reflect those same 
priorities so that our engagement with foreign Governments is 
part and parcel of what we are doing domestically to strengthen 
the American economy over the long term.
    Chairman Brown. Thank you. My memory--and I had not thought 
about this for a while--was early in my time in the House, a 
number of years ago, we had worked on something called the U.S. 
Export Assistance Center. It was a collection of various 
agencies located in cities around the U.S. that worked, I 
believe, under the aegis of the Commerce Department. Again, 
pardon my ignorance on this. Does that still exist in some form 
within your jurisdiction, or do you know that?
    Mr. Venkataraman. Yes, Senator. Under the Global Markets 
banner our domestic commercial services has U.S. Export 
Assistance Centers in 48 States, in 116 cities around the 
country.
    Chairman Brown. And give me your assessment of their 
effectiveness, in the last minute or so.
    Mr. Venkataraman. Sure. So they have been incredibly 
effective at helping small businesses identify export 
opportunities and help small businesses incorporate export 
plans into their business plans, and by really performing those 
basic services of connecting them, not just in terms of 
building their business but really connecting them with our 
Foreign Commercial Service, located on the ground overseas, to 
customers overseas. So we provide services on the domestic side 
but combined with the services on the foreign side to help the 
front to back of the entire sales chain.
    Chairman Brown. And the U.S. Export Assistance Centers' 
focus has been small and medium-sized businesses in the U.S., 
correct?
    Mr. Venkataraman. Yes, sir.
    Chairman Brown. OK. Thank you. Senator Menendez from New 
Jersey is recognized.
    Senator Menendez. Thank you, Mr. Chairman. Mr. 
Venkataraman--is that the correct pronunciation?
    Mr. Venkataraman. Venkataraman, yes, sir.
    Senator Menendez. Venkataraman. OK. I have always supported 
the Foreign Commercial Service in its mission. In my other role 
as the Chair of the Senate Foreign Relations Committee I see 
this as an incredibly important part of our advocacy abroad. I 
think the office's work is critical to U.S. exporters who 
struggle to navigate complex foreign markets and need advocates 
on the ground to help them succeed. Other countries do this in 
a much more significant, and I think effective, way. So I was 
disheartened to see the last Administration propose to slash 
the Foreign Commercial Services funding.
    So can you commit to me that if you are confirmed you work 
to strengthen the office and ensure the staff has adequate 
resources to support U.S. exporters, in terms of your advocacy 
internally?
    Mr. Venkataraman. Thank you, Senator Menendez, and thank 
you for your longstanding support of the Commercial Service, 
and indeed, I can commit to you that I will work tirelessly to 
ensure that the Commercial Service is adequately funded to meet 
its growing demand.
    Senator Menendez. Now building stronger economic ties with 
our neighbors in Latin America has always been a priority of 
mine. This is our own hemisphere, our own front yard, a 
tremendous opportunity, and it is more than economics. It is 
also creating stability and close relationships that inure to 
our national interests and security. The region presents a 
tremendous opportunity for the U.S. to develop export markets 
to foreign partnerships to boost our nation's competitiveness 
and to compete in the global with China. China is all over the 
Western Hemisphere.
    If confirmed, what specific steps will you take to 
prioritize strengthening our relationships with partners in 
Latin America?
    Mr. Venkataraman. Thank you, Senator, and indeed, Latin 
America and South America are critical areas for us. As you 
point out, there are, in fact, our neighbors. They should be 
the first areas of go-to for many of our exporters. I would 
work very closely with the State Department, and particularly 
with agencies like the EXIM Bank, to ensure that we are able to 
avail ourselves of the opportunities presented in those 
markets. I would also work with our foreign Government 
counterparts to ensure that they maintain transparent 
procurement practices and that they impose the rise conditions 
in those marketplaces to facilitate the kind of two-way trade 
and investment that strengthens our connections with these 
countries and contributes to their long-term growth and 
development.
    Senator Menendez. Thank you. Mr. Smith, it almost 4 years 
since Puerto Rico suffered twin disasters of catastrophic 
proportions, Hurricane Maria and the Trump administration's 
derision of the people of Puerto Rico after they suffered a 
natural disaster. Throwing out paper towels is not my idea of 
how you help American citizens. Puerto Ricans are American 
citizens of the United States, 3.5 million of them, who happen 
to call the island their home, are citizens of the United 
States.
    According to HUD inspector general report, the Trump 
administration successfully delayed and stonewalled Puerto 
Rico's disaster funding by setting unprecedented--
unprecedented--procedural hurdles. I would like to ensure no 
future Administration can so cruelly deny American citizens the 
disaster relief they need and that Congress provided them.
    So the HUD IG laid out several legal concerns HUD had with 
OMB's requirements for Puerto Rico's disaster funds. Some of 
these concerns include, but are not limited to, Tenth Amendment 
issues and concerns over possible violations of the Impoundment 
Control Act. Furthermore, former Deputy Secretary Montgomery of 
HUD Stated that he was not sure that the OMB requirements were, 
quote, ``even legal.''
    Mr. Smith, what role does the General Counsel play when HUD 
receives a request from OMB that HUD feels is legally 
questionable?
    Mr. Smith. Thank you for that question, Senator. As I think 
that report pointed out, certainly the Office of General 
Counsel played a role, and does play a role, in helping the 
Administration and helping the leadership at HUD respond to 
those types of requests, and to push back, where necessary, to 
make sure that HUD's voice is being heard and that our 
requirements are being met. Certainly I know that that report 
also suggested that HUD consider rulemaking that would help in 
making sure that that understanding of what is being done is in 
accord with HUD's requirements.
    And so certainly something that I would look forward to 
having discussions with the Secretary and the head of our 
Office of Community Planning and Development about going 
forward.
    Senator Menendez. Well, I hope, as General Counsel--I mean, 
the HUD IG report focuses on the interaction between OMB and 
HUD, and how OMB imposed new burdensome requirements for 
releasing disaster aid to Puerto Rico. As General Counsel, I 
hope you would work to standardize the process for releasing 
funds, to ensure that a future Administration with a vendetta 
against certain citizens, cannot successfully delay critical 
aid. Can I get your commitment to look at that, if you are 
confirmed?
    Mr. Smith. Certainly, Senator, that is something that I can 
confirm I will look at as General Counsel.
    Senator Menendez. Thank you very much. Thank you, Mr. 
Chairman.
    Chairman Brown. Thank you, Senator Menendez. Thank you both 
for testifying today. For Senators who wish to submit questions 
for the record, those question are due at the close of business 
on Thursday, July 15. To expedite moving forward on these 
nominees--Senator Toomey has signed off on these dates--to the 
nominees, we would like to have your responses by noon Monday, 
July 19.
    Thank you again for your testimony, thank you for your 
willingness to serve, and thank you to your families for their 
support.
    The hearing is adjourned.
    [Whereupon, at 11:04 a.m., the hearing was adjourned.]
    [Prepared statements, biographical sketches of nominees, 
and responses to written questions supplied for the record 
follow:]
              PREPARED STATEMENT OF CHAIRMAN SHERROD BROWN
    Today, we will consider two nominations for the Commerce 
Department's U.S. and Foreign Commercial Service and the Department of 
Housing and Urban Development.
    The President's nominee to serve as Director General of the U.S. 
and Foreign Commercial Service is Arun Venkataraman.
    For over two decades, Mr. Venkataraman has worked on matters of 
international trade both in the public and private sectors. He 
currently serves as Counselor to the Secretary of Commerce, advising 
the Department on trade and other international economic matters.
    And in the Obama-Biden administration he served in the Commerce 
Department's International Trade Administration.
    Mr. Venkataraman holds a J.D. from Columbia Law School, a Master of 
Arts in Law and Diplomacy from the Fletcher School of Law and 
Diplomacy, and a B.A. from Tufts University.
    The agency Mr. Venkataraman has been nominated to lead exists to 
create American opportunity abroad, because we assume it will grow 
American jobs at home.
    But, in the past, too often it has meant creating corporate 
opportunity abroad and loss of jobs, especially union jobs, in places 
like mine and the Ranking Member's home State.
    We welcome you to the Committee.
    We will also consider the nomination of a key housing expert today 
to join the senior leadership of HUD.
    Damon Smith, the President's nominee to serve as General Counsel at 
HUD, currently serves as a Senior Advisor to Secretary Fudge.
    Mr. Smith is the grandson of a Tuskegee Airman and we're proud to 
claim him as Athens, Ohio's, own--in addition to his wife, Janine, he's 
joined today by his parents Bill and Charlene, who still live in Athens 
and worked at Ohio University.
    He joined the Biden-Harris administration after serving as Senior 
Director of Advocacy and Counsel at the Credit Union National 
Association (CUNA).
    He previously served as the Senior Counsel and Acting General 
Counsel at HUD during the Obama-Biden administration, providing legal 
and policy guidance, and setting the Department's litigation strategy 
and regulatory agenda.
    Before his Government service, he was a law professor at both 
Rutgers and at American Universities. He has also served as an urban 
planner in East St. Louis, Illinois, and St. Louis, Missouri.
    Mr. Smith is a graduate of Harvard Law School and holds a 
bachelor's degree in English and a master's degree in urban planning 
from the University of Illinois at Urbana-Champaign.
    I look forward to both of your testimonies today.
                                 ______
                                 
            PREPARED STATEMENT OF SENATOR PATRICK J. TOOMEY
    Mr. Chairman, thank you.
    Mr. Venkataraman and Mr. Smith, welcome to you both. You've been 
nominated for important leadership positions at the Commerce Department 
and HUD.
    At Commerce, the Director General of the U.S. and Foreign 
Commercial Service and Assistant Secretary for Global Markets must 
stand up for the interests of U.S. exporters overseas. This includes 
addressing barriers to entry in foreign markets and attracting foreign 
direct investment, known as FDI, into the U.S. Many U.S. businesses and 
jobs depend upon exports. This position is critically important right 
now as COVID-19 led to the imposition of new trade barriers and a sharp 
decline in global FDI.
    The Assistant Secretary will face a host of challenges right off 
the bat. The previous Administration's trade wars alienated our allies. 
For example, many of them imposed retaliatory tariffs on U.S. exports 
after Section 232 tariffs labeled their steel and aluminum exports a 
``national security threat.''
    ``Buy American'' policies that seek to limit foreign access to U.S. 
Government procurement contracts have caused our trading partners to 
threaten to do the same, potentially taking away a major export market 
for U.S. businesses. Foreign countries also frequently impose nontariff 
technical barriers to trade, to limit U.S. entry and protect their 
domestic industries. The Assistant Secretary must oversee efforts to 
convince foreign Governments to overcome these concerns, remove these 
obstacles, and allow our businesses market access.
    Another major responsibility of the Assistant Secretary is to 
oversee U.S. Government efforts to attract FDI into the U.S. The U.S. 
has long been a magnet for FDI, due to our skilled workforce, broad 
capital markets, strong legal protections for investors, and attractive 
business environment. But FDI has faced challenges due to COVID-19. In 
2020, global FDI fell 42 percent according to U.N. Conference on Trade 
and Development.
    In addition, the Biden administration is making attracting FDI more 
difficult. The Administration has proposed burdensome regulations and 
corporate taxes that would make it less desirable to invest in the U.S. 
And the Administration's support for a waiver of IP protections for 
vaccines sends a worrying signal to investors in IP-intensive 
industries.
    If confirmed, I expect you to use your position to promote policies 
that will achieve the mission entrusted to you. That means giving a 
voice to U.S. exporters in the Administration's policy decisions and 
advocating for policies that make the U.S. an attractive destination 
for foreign direct investment.
    Now turning to HUD: HUD's General Counsel plays an important role 
advising the agency on what it can and cannot do. HUD needs a General 
Counsel who will help ensure effective oversight of the Federal tax 
dollars it spends. That means rooting out waste, fraud, and abuse. This 
is critically important given the $60 billion given to HUD this past 
year and the $68 billion requested for the next fiscal year.
    Unfortunately, HUD is already making poor choices on this front. 
For example, the agency has made it easier for illegal immigrants to 
get emergency housing vouchers by waiving regulations that require 
verification of citizenship or legal immigration status. In addition, 
HUD removed sensible restrictions on Puerto Rico's use of disaster 
recovery funds. These restrictions required Puerto Rico to spend these 
funds in tranches and to have expenditures reviewed by an independent 
financial monitor. By eliminating these requirements, HUD is all but 
guaranteeing that a Government with chronic financial mismanagement 
problems will misspend taxpayer dollars.
    The General Counsel must ensure HUD is complying with the law 
despite political pressures. In other words, he can't be a ``yes'' man. 
What does that mean in practice?
    First, the General Counsel needs to push back on policies that are 
inconsistent with the law. Unfortunately, we've seen HUD ignore the law 
recently. For example, Congress has explicitly prevented any part of a 
borrower's downpayment for a FHA loan from being financed by an entity 
benefiting from the mortgage transaction. But, as I noted in a recent 
letter to HUD, the agency continues to turn a blind eye to circular 
funding schemes where FHA borrowers finance their own downpayment 
assistance in contravention of the law.
    Second, the General Counsel needs to ensure all legal requirements 
with respect to rulemaking and guidance are followed. That means 
meaningfully considering all input from stakeholders, preparing all 
supporting materials to accompany significant policy guidance, and 
completing regulatory impact analyses which describe the economic 
burdens on stakeholders.
    Third, the General Counsel needs to be readily available and work 
with Congress to ensure laws are faithfully implemented. That includes 
responding fully to oversight requests that come from Congress, 
specifically Members of the Banking Committee.
    Let me close by saying: Mr. Venkataraman, I look forward to hearing 
how you plan to effectively support U.S. exporters overseas and attract 
foreign investment to the U.S. Mr. Smith, I look forward to hearing how 
you will ensure that HUD faithfully complies with the law and conducts 
thorough oversight of how it spends taxpayer dollars. If confirmed, you 
both will have important missions to fulfill.
                                 ______
                                 
                PREPARED STATEMENT OF ARUN VENKATARAMAN
   To Be Assistant Secretary of Commerce and Director General of The 
              United States and Foreign Commercial Service
                             July 13, 2021
    Chairman Brown, Ranking Member Toomey, Members of the Committee, 
thank you for the opportunity to appear before you today. I am honored 
to be nominated by President Biden to be the Assistant Secretary of 
Commerce for Global Markets and Director General of the U.S. and 
Foreign Commercial Service. I want to thank Secretary Raimondo for her 
support of my nomination. I also want to thank the Committee for the 
opportunity to meet with members of your staff this past week.
    I feel the deepest sense of gratitude and humility in being 
considered for this position. When my parents brought me to this 
country 45 years ago, we could not appreciate that we were part of a 
proud lineage of immigrants that came through New York, like us, in 
search of better opportunities. And, my parents certainly could never 
have imagined that those opportunities would lead to my being here 
today to be considered for this position by the Committee.
    I remain grateful to my parents for making all this possible 
because of their bold decision to move 8,000 miles away from everything 
they knew to start a new life for us here in America. Their support for 
everything that I do has been unwavering, and I am glad to have them 
here today to share this experience with me.
    I have had the privilege of spending much of my career in public 
service, working on a wide range of international trade issues on 
behalf of the American people. I have negotiated with some of our most 
challenging trading partners on issues like subsidies and tech policy 
and held them accountable to their commitments under our trade 
agreements. I have collaborated with foreign Governments to address 
shared challenges in third-country markets. I have also helped defend 
the legitimate policy tools we have to protect American companies and 
workers from unfair State-backed competition from countries like China. 
And, in these and other areas, I have worked extensively across the 
multiple agencies and with various stakeholders to build a unified 
position for the Government.
    From working and leading teams in highly matrixed organizations, 
both in and out of Government, I fully understand that no one of us has 
a monopoly on solutions to the types of trade problems we are being 
called on to address at this time in our history. We increasingly need 
to look beyond our silos to bring to bear the right perspectives and 
knowledge to any challenge. That is why I am committed to working 
together with my colleagues across the Commerce Department and across 
the Administration, and with Congress, and with all stakeholders, to 
meet those challenges head-on.
    In over 20 years working on international trade, my career has 
allowed me to see how trade works from different vantage points--from 
the judicial branch, from an international organization, from the 
private sector, and from the public sector. I believe that Global 
Markets is uniquely situated to make trade work for American firms and 
their workers. This team works with foreign Governments to make sure 
American firms get the fair access they deserve to foreign markets. 
Global Markets also helps small and medium-sized enterprises (SMEs) 
become new exporters and take advantage of the commercial opportunities 
created by trade agreements. Finally, Global Markets leverages the 
inherent attractiveness of the United States as an investment 
destination to bring foreign companies to America and create jobs. 
Through these core activities, Global Markets brings to life the 
potential that trade and investment offer the American people. And I am 
committed to seeing that mission through to its fullest, if confirmed.
    One last point I would note for the Committee: I fully appreciate 
the privilege I would have if I were confirmed to this position. I have 
had the fortune of working closely with Global Markets through much of 
my Government career, most recently as the International Trade 
Administration's Director of Policy in the Obama administration. I know 
firsthand the high caliber of staff and the deep commitment of the 
Global Markets team to creating opportunities and bringing the benefits 
of trade to the American people. If confirmed, I commit to you to be 
worthy of leading this high-performing team to do what it does best and 
drive the Administration's efforts to strengthen precisely that 
connection between trade and the American people.
    Thank you again for this opportunity to be considered for this 
position and to appear before you today. I look forward to your 
questions.
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                  PREPARED STATEMENT OF DAMON Y. SMITH
   To Be General Counsel, Department of Housing and Urban Development
                             July 13, 2021
    Chairman Brown, Ranking Member Toomey, and distinguished Members of 
the Committee, I am honored and humbled to appear before you today as 
the nominee for General Counsel of the Department of Housing and Urban 
Development.
    I want to first take this opportunity to thank President Biden for 
nominating me, and Secretary Fudge for her leadership and support. I 
also want to thank my family and friends for their unwavering love, 
prayers and support that have sustained me over the years and to this 
very day. I am especially grateful to my mother and father. The lessons 
that they have taught and the values that they instilled in me are 
integral to who I am as a husband, father, professional and public 
servant. Finally, I want to thank my wife, Janine, who served as a 
staffer here in the United States Senate and has passed along her great 
respect for this institution. She has been a true partner and a 
blessing to me, our 3 children, and entire family.
    HUD's Office of General Counsel is a special place to me, filled 
with dedicated attorneys, analysts and support staff of the highest 
caliber. I have had the pleasure of working with and leading them in 
other capacities, but, if confirmed, it would be a distinct honor to 
serve with them and all the incredible employees of HUD as their 
General Counsel.
    There are several reasons why I find myself here today, but I would 
like to share a few in particular. My first lessons in housing and 
community came from my grandmother, who passed away this past March, 
just short of her 100th birthday. She did not own a car and used to 
walk everywhere--often for many miles and often in high heels if headed 
to work--and I would tag along every summer soaking in her stories 
about the people and communities that we passed. Everyone seemed to 
know her and love her, particularly in north Champaign where she lived 
for almost her entire life. She did not have much in the way of formal 
education, but she taught me some of the most valuable lessons that 
have served me well throughout my career, including the importance of a 
safe and supportive community. My first lessons in public service came 
from my father and grandfather, who both served honorably in the 
military. Their examples taught me that serving others in whatever way 
we can is incredibly rewarding and one of life's highest callings.
    In my career as an urban planner, academic, and attorney, I have 
worked on community development, housing, and housing finance issues 
with a wide variety of partners and clients. The through line in my 
diverse experiences is a fundamental belief in our ability to improve 
communities, provide opportunity and create better housing and 
development outcomes for everyone.
    My work on these issues began in earnest when I sought my master's 
in urban planning at the University of Illinois. As a student and in my 
career as a planner and academic, I collaborated with low-income 
residents on planning, housing, and community development issues and 
learned incredibly valuable lessons in perspective and perseverance 
along the way. As an attorney in private practice, I have worked on 
real estate and regulatory issues with developers, building owners and 
financial institutions and learned about the importance of clear 
guidelines, ethical leadership, and building and rewarding a culture of 
compliance. And as a public servant at the State and Federal levels, I 
have provided advice and counsel to policymakers and attorneys at all 
levels of Government, learning how to work collaboratively and manage 
people effectively to achieve better outcomes.
    All these experiences have increased my knowledge and appreciation 
of the work done by a myriad of stakeholders to ensure that we can have 
strong, sustainable, inclusive communities and quality affordable homes 
for all. If confirmed, I will use the knowledge gleaned from these 
experiences to ensure the Secretary, Deputy Secretary, and their staffs 
are provided with timely and helpful counsel. And I will work hard to 
ensure that the Office of General Counsel and the entire Department 
operate ethically and effectively in delivering on our critical mission 
for the American people.
    Thank you for the opportunity to testify before you today. I look 
forward to your questions.
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        RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                     FROM ARUN VENKATARAMAN

Q.1. Where have you excelled in past positions in attracting, 
hiring, and promoting people of color in positions in your 
organization(s)? Where might there be room for improvement?

A.1. To date, I have had limited opportunity to advance the 
careers of people of color. When given the opportunity, I have 
worked closely with my recruiting team to ensure that we did 
not adopt a passive approach to issuing notices of open 
positions, but instead, identified specific and nontraditional 
channels of distribution to reach the most diverse pool of 
potential candidates possible. I also worked with colleagues to 
ensure that early stages of recruitment and interviews 
reflected that diverse pool. As a manager, I have strongly 
supported my team's active connections with mentors and sought 
to identify specific professional opportunities that aligned 
with their career development goals, which has resulted in 
their promotions.
    With 1 million minority-owned businesses and over 1 million 
women-owned businesses in our country, according to the latest 
available data, Global Markets must have the diverse workforce 
to reach those businesses and ensure that they can avail 
themselves of the Government services to help them export and 
grow jobs in their communities. If confirmed, I look forward to 
prioritizing the search for, and promotion of, the most 
qualified candidates that reflect the diverse backgrounds of 
all Americans, including in terms of race, gender, ethnicity, 
veteran status, and sexual orientation. I commit to working 
with ITA's Diversity and Inclusion Council and Employee 
Resource Groups/Affinity Groups to organize and develop 
strategies to ensure participation rates of minorities, People 
with Disabilities, and women in the talent pipeline and 
especially in leadership positions.

Q.2. What specific measures will you use to evaluate the 
success of the U.S. Department of Commerce in understanding and 
addressing the needs of Black, Indigenous and People of Color 
(BIPOC)? And, will you work with the Secretary and senior 
officials to keep Congress apprised, as appropriate, on the 
progress being made on these measures?

A.2. I am committed to making sure that Global Markets, 
including the export promotion services we offer to the 
American people, reflects a more robust understanding of the 
needs of BIPOC communities. If confirmed, I will direct our 
team to ensure equity of access to these communities so they 
are aware of, and can take advantage of, our services to help 
grow their businesses and jobs through exporting and 
investments. To that end, we will evaluate our success by: (1) 
measuring the number of newly engaged clients from these 
communities that have not previously received our assistance; 
(2) developing new strategic partnerships with local, regional, 
and national organizations that serve these communities, to 
enhance our outreach efforts; (3) organizing trade education 
and facilitation events that focus on the unmet needs of these 
communities; and (4) training our client-facing staff to 
understand and identify opportunities to better reach and 
assist previously underserved companies. I commit to working 
with the Secretary and other senior officials to keep Congress 
apprised of the progress made on these important issues.

Q.3. What is your plan for creating an inclusive working 
environment for employees within your office?

A.3. I believe that proper staffing, empowerment and 
recognition are key to building an inclusive working 
environment, and I would be committed to this effort, if 
confirmed. This means first ensuring that additional positions 
in the office of the Assistant Secretary for Global Markets are 
hired with an eye towards seeking out candidates with a 
diversity of backgrounds and experiences, personal and 
professional. If confirmed, I would also seek to ensure the 
visibility of these colleagues throughout the organization, 
provide them with ownership of workstreams, and solicit their 
views through both group meetings and one-on-one conversations. 
I would also work to publicly acknowledge their contributions 
and contribute to their successes so that others can be fully 
aware of their efforts.
    In addition, if confirmed, I would fully support, and look 
to implement, recommendations of ITA's recently inaugurated 
Diversity and Inclusion Advisory Council (DIAC), composed of 13 
members geographically dispersed around the world that 
represent their business units, including Global Markets. The 
DIAC works collaboratively with the ITA Human Capital office on 
creative ways to promote outreach to best attract people of all 
walks of life including people of color. The DIAC operates in 
accordance with a comprehensive Charter with focus on the 
following functional areas, adding others as needed in the 
future: Recruitment and Outreach; Development; Retention and 
Succession; and Reaching More Diverse Customers.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                     FROM ARUN VENKATARAMAN

Q.1. Congressional Oversight--Please provide your philosophy on 
how the Commerce Department International Trade 
Administration's (ITA) Global Markets Department will approach 
and respond to Congressional information requests (both for 
documentary information and oral testimony), if you are 
confirmed.

A.1. I view Congress as a vital partner in the execution of 
Global Markets' mission, together with a broad range of 
stakeholders and agencies across the Executive Branch. As 
Global Markets develops and delivers services to small business 
exporters, works with foreign companies and local economic 
development organizations to bring investment and jobs into the 
U.S., and engages foreign Governments to improve the business 
climate for American firms and workers, I would, if confirmed, 
welcome Congressional input into how these objectives can be 
better achieved. In order to facilitate this partnership, I 
would seek to ensure that my team regularly provides 
information to Congressional staff about Global Markets' 
activities and responds in a timely manner to all Congressional 
requests for information.
    More broadly, I understand and respect Congress' duty to 
conduct oversight of Executive Branch agencies and functions. 
If confirmed, I am committed to ensuring that my team is 
responsive to oversight requests and provides Congress with the 
information that it needs consistent with appropriate law and 
regulations.

Q.2. If confirmed, do you intend to respond to information 
requests differently depending on who is making the 
Congressional information request (whether it's the Chair of 
the Congressional Committee, the Ranking Member, or another 
Member of Congress)? Please answer ``yes'' or ``no.'' If your 
answer is ``yes,'' please explain.

A.2. I understand and respect Congress' duty to conduct 
oversight of Executive Branch agencies and functions. If 
confirmed, I am committed to ensuring that my team is 
responsive to oversight requests and provides Congress with the 
information that it needs consistent with appropriate law and 
regulations.

Q.3. Will you commit that, if confirmed, you will respond in a 
timely manner and fully comply with all information requests 
from me? Please answer ``yes'' or ``no.'' If your answer is 
``no,'' please explain.

A.3. If confirmed, I am committed to ensuring that my team is 
responsive to oversight requests and provides Congress with the 
information that it needs consistent with appropriate law and 
regulations.

Q.4. Will you commit that, if confirmed, you will make yourself 
and any other Global Markets employee expeditiously available 
to provide oral testimony (including but not limited to 
briefings, hearings, and transcribed interviews) to the 
Committee on any matter within its jurisdiction, upon the 
request of either the Chairman or Ranking Member? Please answer 
``yes'' or ``no.'' If your answer is ``no,'' please explain 
why.

A.4. If confirmed, I am committed to ensuring that my team is 
responsive to requests for oral testimony consistent with 
appropriate law and regulations.

Q.5. Attracting Foreign Direct Investment Into the United 
States--In 2020, global foreign direct investment (FDI) fell 42 
percent according to U.N. Conference on Trade and Development 
(UNCTAD). This low level has not been seen since the 1990s. It 
is over 30 percent lower than the investment decline that 
followed the 2008 global financial crisis. If confirmed, you 
will oversee the SelectUSA program, which is charged with 
leading U.S. efforts at attracting FDI into the United States. 
How do you plan to leverage U.S. resources to continue to 
attract high-impact, job-creating FDI to our country?

A.5. As you mention, if confirmed, I would welcome the 
opportunity to lead the SelectUSA program to facilitate job-
creating business investment into the United States and raise 
awareness of the important role that foreign direct investment 
(FDI) plays in the U.S. economy during this critical post-COVID 
recovery time. The downturn in global FDI makes this mission 
even more critical--the program has seen more client requests 
this year to date than any other year in SelectUSA's history.
    Promoting inbound investment at this time begins with 
supporting the Administration's ongoing efforts to combat COVID 
by delivering vaccines to all eligible Americans. Addressing 
this public health crisis is key to putting the U.S. back on a 
long-term trajectory of positive growth and driving ever 
greater investment flows into the country. The success of this 
year's SelectUSA Investment Summit is a testament to global 
perceptions of our ability to emerge stronger from the 
pandemic.
    If confirmed, I would reinforce the Administration's 
efforts to ensure the security and resiliency of supply chains 
in critical industries by working to attract investment and 
strengthen commercial and governmental partnerships in these 
sectors. I would also support the program and its initiatives 
promoting early stage innovative FDI (SelectUSA Tech) and FDI 
from female-founders (SelectUSA Global Women in Tech). In 
addition, if confirmed, I would deepen engagement with local 
governments and Economic Development Organizations across the 
country to keep the U.S. at the forefront of global 
competitiveness to support, and add to, the 7.8 million U.S. 
workers directly employed by FDI.

Q.6. The primary reason attributed to the dive in FDI is 
uncertainty over the evolution of the COVID-19 pandemic. It is 
important to the U.S. recovery that we overcome these barriers. 
The SelectUSA program coordinates U.S. Government efforts to 
attract and retain FDI into the United States. How would you 
work with other members of the SelectUSA Federal Interagency 
Investment Working Group to resolve investors' uncertainty 
related to the COVID-19 pandemic?

A.6. Working across agencies to develop whole-of-Government 
messaging and facilitating productive FDI that supports U.S. 
jobs is always critical to Global Markets' investment mission. 
That whole-of-Government effort, including through the 
Interagency Investment Working Group (IIWG), is all the more 
important at a time when we need to reassure investment 
partners about the fight against COVID-19. I would work with 
the White House, and across agencies, to underscore the 
progress the Government has made in delivering vaccines to most 
Americans. I would also support the interagency work evaluating 
travel conditions with a view to facilitating international 
travel at the earliest appropriate opportunity. At the same 
time, I would continue to press forward with the IIWG's work 
reviewing individual and ongoing casework to attract FDI and 
implementing joint programs such as webinars that can help 
investors understand the U.S. is an unparalleled market in its 
stability, size, and strength.

Q.7. Export Promotion Through Trade Agreements--The clearest 
and most straightforward way for the U.S. Government to engage 
in export promotion is to pursue bilateral and multilateral 
free trade agreements (FTAs). What do you view as the role of 
free trade agreements in facilitating market access?

A.7. Global Markets is committed to helping develop the best 
policy environment to encourage the export of U.S. goods and 
services. FTAs play an important role in securing that policy 
environment and thereby facilitating market access for those 
goods and services. Global Markets works with other offices in 
the Commerce Department and with other agencies like USTR to 
ensure that our trading partners live up to their commitments 
in those FTAs so that U.S. firms and workers get the benefits 
of the deals negotiated on their behalf. If confirmed, I am 
committed to driving the work of Global Markets to make sure 
that those FTAs, and the market access that they provide, bring 
benefits to American workers and their families.

Q.8. In your position as an advocate for U.S. exporters, will 
you seek to encourage the Biden administration to pursue trade-
facilitating agreements and policies?

A.8. If confirmed, I will advance the export promotion mission 
of Global Markets by using all the tools available to support 
opening foreign markets, keeping them open, and encouraging 
foreign purchases of U.S. goods and services. I would work 
closely with USTR, if confirmed, to pursue trade-facilitating 
agreements that produce benefits for American workers and their 
families. I would also support the deployment of other tools 
available to expand U.S. exports, including bilateral 
commercial dialogues, joint actions with trading partners to 
address shared challenges, and participation in regional and 
multilateral venues like the Asia-Pacific Economic Cooperation 
(APEC) forum and the World Trade Organization (WTO).

Q.9. In recent years, there has been a gradual rise in new 
restrictions and nontariff barriers to trade across the globe. 
How do you plan to engage with other countries in addressing 
unfair market barriers, expediting certification procedures, 
and reducing technical barriers to trade?

A.9. As the principal advocate in the U.S. Government for small 
business exporters, Global Markets is uniquely aware of the 
disproportionate impact that trade barriers, especially 
unjustified certification procedures and other technical 
barriers to trade, can have on small businesses. Bearing in 
mind the goal of making trade agreements work for American 
workers and their families, and the critical job-creating role 
that small businesses play, I would, if confirmed, ensure 
meaningful engagements with foreign countries on the 
elimination of barriers that produce benefits for small 
businesses. I would also elevate within the Commerce 
Department, and with USTR, those barriers that raise concerns 
of compliance with trade agreements, so that U.S. firms and 
workers get the benefits they deserve under those agreements. 
Finally, if confirmed, I would work closely with allies to 
pursue shared approaches to global standards and combat 
technical barriers to trade that allow our values to drive the 
new rules of the road.

Q.10. Securing Procurement Market Access for U.S. Exporters--
The World Trade Organization's (WTO) Agreement on Global 
Procurement (GPA) is a plurilateral agreement based on 
reciprocal market access for procurement, and for most of its 
history the United States has encouraged other countries to 
join the GPA in order to help secure market access for U.S. 
exporters. Your position oversees the Global Markets Advocacy 
Center, whose mission is to help U.S. companies compete for 
foreign procurement contracts. Do you support the WTO GPA as a 
tool for ITA's Global Markets Advocacy Center to help U.S. 
businesses secure foreign procurement contracts?

A.10. The WTO GPA helps reinforce Global Markets' advocacy on 
the importance of fair and transparent procurement processes 
that allow Governments to purchase the best goods and services 
suited to their needs. Fairness and transparency in these 
processes are critical to the work of the Advocacy Center and 
more broadly to the ability of U.S. goods and services to 
compete for these foreign purchases. If confirmed, I will 
continue Global Markets' strong commitment to fair and 
transparent procurement processes that facilitate U.S. exports, 
including through the processes required under the WTO GPA.

Q.11. The Biden administration has proposed ``Buy American'' 
policies to tighten domestic content rules for procurement 
contracts, including ``working with allies to modernize 
international trade rules and associated domestic regulations 
regarding Government procurement to make sure that the U.S. and 
allies can use their own taxpayer dollars to spur investment in 
their own countries.'' \1\ This would likely lead to trading 
partners retaliating by narrowing their own procurement markets 
to American exporters. If the Biden administration moves 
forward with such policies, how do you plan to work to make 
sure that other countries do not restrict their export markets 
in retaliation?
---------------------------------------------------------------------------
     \1\ https://joebiden.com/made-in-america/

A.11. If confirmed, I would work with colleagues across ITA to 
reach out to WTO GPA members and trading partners to ensure 
that rules-based procurement regimes, guaranteeing fairness and 
transparency, continue to be adopted by countries around the 
world. As the provisions of the current Made in America 
Executive Order remain consistent with our trade agreement 
obligations, I would support ITA efforts to monitor and ensure 
that trading partners also continue to uphold their reciprocal 
---------------------------------------------------------------------------
trade agreement commitments to the United States.

Q.12. Global Carbon Tax as a Barrier to U.S. Exports--ITA's 
Global Markets Department seeks to address and remove foreign 
Government policies, practices, or procedures that unfairly or 
unnecessarily restrict U.S. exports. Pursuant to that, the 
European Union (EU) is expected to soon formally release its 
proposed Carbon Border Adjustment Mechanism (CBAM). This 
proposal, if enacted, will likely be a substantial barrier to 
U.S. exporters seeking to sell to the EU, through both tariff 
and nontariff barriers to trade. This proposal would also 
likely be found to violate WTO ``national treatment'' 
requirements--which State that imported products be given ``no 
less favorable'' treatment than that given to like domestic 
products.
    Do you agree that a carbon border adjustment tax is a 
barrier to trade that has the potential to discriminate against 
U.S. exporters?

A.12. The United States, like the EU, is committed to keeping 
1.5 C within reach, and we are both aligned in our long-term 
(2050) and short-term (2030) climate objectives. We believe 
that carbon border adjustment measures, if designed 
appropriately, represent one of several potentially useful 
tools as countries implement their emissions reduction 
strategies. If confirmed, I will work with Congress and all 
stakeholders, as well other offices in ITA and across the 
agencies, to develop a fuller understanding of any carbon 
border adjustment to avoid any inadvertent harm or 
discrimination against U.S. exporters.

Q.13. If this policy is enacted, how will you work with the EU 
to prevent this policy from unfairly harming U.S. exporters?

A.13. Global Markets and ITA are working closely with USTR and 
other U.S. Government agencies to analyze the recently released 
proposal for a carbon border adjustment mechanism (CBAM) and 
will hold consultations with U.S. industry on the impact of the 
EU CBAM on U.S. exports and commercial interests. Information 
on the technical details will be critical to understanding the 
full impact of the measure on U.S. companies. If confirmed, I 
look forward to continuing to consult and exchange views 
informally and formally with our EU colleagues in coordination 
with the U.S. Trade Representative, including in the U.S.-EU 
Trade and Technology Council.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR DAINES
                     FROM ARUN VENKATARAMAN

Q.1. Protecting U.S. intellectual property is essential for 
maintaining our competitive edge when competing in the global 
economy. China in particular has been a long-standing abuser of 
IP rights and protections which is why I have led efforts to 
ensure the U.S. holds China accountable for its IP commitments 
in the China Phase One deal and elsewhere. What can the U.S. do 
to better support and enforce IP protections in China?

A.1. The Biden administration will continue to work with 
Congress to ensure the United States holds China accountable 
for its intellectual property (IP) commitments. Thorough 
implementation of the Phase One deal is key to meaningful IP 
reforms in China and a fair and effective Chinese IP system. 
The Department of Commerce actively supports USTR and the 
interagency in tracking China's compliance with its obligations 
under the IP Chapter of the Phase One deal. Commerce experts at 
the Patent and Trademark Office (USPTO) have participated in 
several of the technical-level discussions led by USTR to 
better understand how China's IP action plan will fulfill 
China's commitments. In addition, Commerce monitors the 
practical impact of Chinese reforms on the ability of U.S. 
rights holders to protect and enforce their IP in China.
    The Department of Commerce, through ITA and the USPTO, 
actively assists U.S. firms with IP questions and issues in 
China, among other foreign markets. Our U.S. Foreign and 
Commercial Service officers and IP Attaches based in China 
provide critical on the ground assistance to U.S. companies 
with IP concerns. The Department will address the challenge of 
protecting U.S. intellectual property from theft and unfair 
competition by helping our innovators and creators identify and 
protect their IP, providing information to U.S. businesses and 
practitioners on IP protection, and working to maintain high 
standards for IP protection in any future trade agreements. The 
Department will also use the tools at its disposal to ensure 
our trading partners abide by their international commitments, 
including those respecting IP protection and enforcement, and 
will actively participate and defend U.S. IP interests in 
international forums and standard-setting processes. If 
confirmed, I will work to ensure that Global Markets deepens 
its partnership across ITA, and with USPTO, to best protect the 
innovation central to long-term U.S. competitive advantage.

Q.2. I also believe that India will play an even larger role in 
the global economy for years to come and the U.S. should work 
to expand economic ties and consider entering formal 
negotiations with India, which presents an enormous opportunity 
for growth for U.S. farmers, especially Montana's pulse crop 
farmers, and small businesses in addition to the strategic, 
regional, and geopolitical significance of India as a 
counterweight to China's growing influence. What will be your 
priorities in expanding opportunities and helping level the 
playing field for U.S. businesses in India's market?

A.2. I agree that India is an increasingly critical market for 
U.S. exporters and innovators and a strategic partner for 
addressing global challenges. If confirmed, I will prioritize 
our engagement and focus on the opportunities presented by 
India, including for rural exporters and exporters from 
underserved communities, and identify key sectors for strategic 
collaboration that help both countries meet shared challenges 
around the world. I would, if confirmed, look for ways to build 
on the participation of the private sector through the U.S.-
India CEO Forum (Forum) and the U.S.-India Commercial Dialogue 
(CD). I would also seek to drive concrete outcomes from any 
engagement that would facilitate commercial partnerships 
between U.S. and Indian companies, including with respect to 
the digital economy.

Q.3. As you know, the International Trade Administration plays 
an important role in seeking to remove or reduce unfair 
barriers to trade in foreign markets. While individual issues 
and barriers to trade are inevitable in any market, pursuing 
trade agreements can be the most effective way to improve 
market access substantially for U.S. farmers, ranchers, 
manufacturers, and businesses. While not directly responsible 
for developing trade policy, how do you see ITA working with 
USTR and other agencies in the Federal Government to advance 
and improve U.S. trade policy?

A.3. ITA and Global Markets have a very close working 
relationship with USTR and other agencies in the Federal 
Government to advance and improve U.S. trade policy. The 
President has made clear that his Administration will pursue 
ways to strengthen the linkage between trade agreements and 
American workers and families, and ITA and Global Markets can 
play a meaningful role in supporting that linkage. If 
confirmed, I fully intend on continuing this engagement, 
sharing ITA's expertise and data and analytical support, and 
providing inputs and viewpoints from stakeholders including the 
U.S. business community to the trade policymaking process.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF CHAIRMAN BROWN
                      FROM DAMON Y. SMITH

Q.1. Where have you excelled in past positions in attracting, 
hiring, and promoting people of color in positions in your 
organization(s)? Where might there be room for improvement?

A.1. I believe that for HUD to succeed in its mission, we need 
to attract and retain talent from every background and walk of 
life. I have served on the hiring and diversity committees of 
two law firms and had the opportunity at HUD to promote staff 
to fill critical managerial roles in the Office of General 
Counsel. In each of those instances, I excelled at attracting, 
hiring, and promoting highly qualified people of color. There 
is always room for improvement, and HUD's Office of General 
Counsel is no exception. If I am confirmed, I will ensure that 
our Legal Honors Program is well-publicized to law school 
affinity groups, participate in our recruitment outreach 
efforts, and work closely with our managerial staff to ensure 
that everyone has opportunities to work on high-profile 
projects in their area of expertise and has access to rotations 
and training that can advance their careers.

Q.2. What specific measures will you use to evaluate the 
success of the U.S. Department of Housing and Urban Development 
in understanding and addressing the needs of Black, Indigenous 
and People of Color (BIPOC)? And, will you work with the 
Secretary and senior officials to keep Congress apprised, as 
appropriate, on the progress being made on these measures?

A.2. Understanding and addressing community needs is vital to 
HUD's mission to create strong, sustainable, inclusive 
communities and quality affordable homes for all. Our Secretary 
and Deputy Secretary have already committed to requesting 
sufficient staff resources so that the Department can fully 
execute its mission in all communities, including BIPOC 
communities that have been disproportionately impacted by 
COVID-19 and its economic fallout. If confirmed, I would work 
with the Secretary and other senior officials to partner with 
our grantees to enhance their capacity to effectively respond 
to community needs and ensure they comply with the law. We can 
measure our success by, among other things, the number and 
quality of outreach efforts to heavily impacted communities, 
increases in resources available, successful efforts made to 
mitigate harms, progress in our efforts to ensure that everyone 
who is able to own a home has the opportunity to do so, and an 
increase in the number of tenants who are housed in safe, 
sanitary, and decent housing. If confirmed, I will work with 
Secretary Fudge to advance HUD's mission, and per President 
Biden's Executive Order 13985, to advance the equitable 
delivery of HUD's programs. I will also work with the Secretary 
and our Congressional and Intergovernmental Relations office to 
keep Congress apprised on the progress being made on these 
goals.

Q.3. What is your plan for creating an inclusive working 
environment for employees within your office?

A.3. If confirmed, I will make it a priority to build and 
maintain an inclusive working environment in HUD's Office of 
General Counsel (OGC). HUD OGC is a diverse workplace with 
leadership from many different backgrounds. I will work to 
ensure those diverse voices are a part of the decision-making 
process when it comes to office initiatives, legal 
determinations, and our efforts at recruitment and retention of 
talent. Through training sessions and meetings, I will make 
sure everyone understands that we value the contributions that 
our employees bring to meeting HUD's mission, and that, 
together, we are responsible for maintaining a workplace that 
is fair, inclusive, and free from all forms of harassment and 
discrimination. I will maintain and enhance training that 
reinforces the values of civil treatment and building teams 
based on mutual respect and collegial relations.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TOOMEY
                      FROM DAMON Y. SMITH

Q.1. Organization of the Office of General Counsel (OGC)--How 
do you view your role with regards to other program offices? 
How will you shape their priorities on policy?

A.1. With respect to policy decisions, the primary function of 
the General Counsel is to provide the Secretary, the Deputy 
Secretary, and the program offices with legal counsel. While 
enhancing policymakers' understanding of the law is critical to 
those policy decisions, should I be confirmed, I would not view 
my role as determining policy priorities, but rather ensuring 
that policy decisions are informed by the best legal counsel.

Q.2. Will you commit to ensuring that OGC provides legal advice 
on hiring matters rather than deferring to HUD's Office of the 
Human Chief Capital Officer?

A.2. I am a strong believer in collaboration and relationship 
building, and I believe OGC has a critical role to play in 
advising the Office of the Chief Human Capital Officer (OCHCO), 
as well as all of the Agency's support offices and program 
offices. If confirmed, as General Counsel, I will serve as the 
chief legal officer for the Department, and I will fulfill my 
role as General Counsel by providing timely and effective legal 
advice to all parts of the Agency, including OCHCO.

Q.3. HUD's Departmental Enforcement Center (DEC) was created 
during the late 1990s, and there is sometimes been confusion 
about the proper role of DEC. What do you view as DEC's 
purpose? Where should it be housed within HUD?

A.3. The DEC plays an incredibly critical role at HUD in 
ensuring the public trust by protecting residents, improving 
the quality of housing, and helping our program offices 
eliminate fraud, waste, and abuse. The DEC's primary role is to 
bring HUD-assisted property owners into full compliance with 
important obligations so that there is no compromise in the 
quality or economic performance of housing for the low- and 
moderate-income families and senior housing residents that we 
serve. The DEC works closely with the Office of General 
Counsel's Program Enforcement attorneys and our program offices 
in Public and Indian Housing and Community Planning Development 
to ensure that HUD funds are properly accounted for and spent 
in accordance with our requirements. Should I be confirmed as 
General Counsel, the DEC will have strong support within OGC, 
and I will help it broaden and deepen its positive impact on 
HUD programs.

Q.4. How will you ensure that the legal opinions of OGC staff 
are elevated and not ignored?

A.4. I have a strong belief in the expertise and 
professionalism of OGC staff. I also believe OGC has a critical 
role to play in partnership with HUD leadership to ensure that 
all decisions are well-informed and benefit from excellent 
legal counsel. Should I be confirmed as General Counsel, I will 
act in accordance with this understanding of the key role of 
OGC staff and the benefits that they provide throughout the 
Department.

Q.5. What will inform your decision to overrule any 
recommendations or not accept legal analysis prepared by OGC 
attorneys?

A.5. I am a strong supporter and admirer of OGC's dedicated 
career attorneys. Should I be confirmed, I will always give 
great weight to their expertise, legal analysis, and 
recommendations in making decisions. Ultimately, as General 
Counsel I will accept responsibility for using that input to 
reach the best legal conclusions I can based on the law, facts, 
and evidence.

Q.6. Disparate Impact--HUD recently proposed reinstating its 
2013 disparate impact rule. I'm concerned that this proposal 
willfully disregards the U.S. Supreme Court's decisions in 
Texas Dept. of Housing and Community Affairs v. Inclusive 
Communities Project, Inc., 576 U.S. 519 (2015), which 
identified constitutional guardrails for disparate impact 
liability. Under HUD's 2013 disparate impact rule, it seemed 
that defendants were often guilty until proven innocent. 
Defendants lacked the protections announced by the Supreme 
Court in Inclusive Communities, like the need for a plaintiff 
to prove a robust causality between the plaintiff's action and 
the alleged harm. Reinstating this rule without taking 
Inclusive Communities into account will invite a wave of 
frivolous lawsuits against housing providers and made it 
costlier to access affordable housing.
    Do you acknowledge that Inclusive Communities defines 
limitations for the scope of disparate impact liability?

A.6. In affirming the consensus of the courts of appeals and of 
HUD that the Fair Housing Act provides for disparate impact 
liability, Inclusive Communities stated that ``disparate-impact 
liability is properly limited in key respects'' and highlighted 
some of them. For example, it cited HUD's 2013 rule in 
observing that a defendant must be given the opportunity to 
state and explain the valid interest served by its policies. 
That said, the Department has begun taking comments via notice 
and comment rulemaking, and if confirmed, I will ensure that we 
carefully review and respond to all comments on Inclusive 
Communities and other matters before promulgating a final 
regulation.

Q.7. Will you ensure that any revised rule complies with the 
Supreme Court's limitations in Inclusive Communities?

A.7. If confirmed, I will ensure that any revised rule comports 
with Inclusive Communities and other applicable law.

Q.8. In 2019, when now-HUD Deputy Secretary Adrianne Todman was 
CEO of NAHRO, that organization filed a comment letter arguing 
that HUD should exempt housing authorities from disparate 
impact if a policy is ``a reasonable approach and in the 
housing authority's sound discretion.'' The comment letter 
quoted the Supreme Court in Inclusive Communities that 
disparate impact liability should not ``second-guess . . . 
approaches a housing authority should follow'' and that the 
Fair Housing Act ``does not decree a particular vision of urban 
development.'' As HUD General Counsel, will you evaluate the 
possibility of including such a safe harbor in any revisions to 
HUD's disparate impact rule?

A.8. The comment period in the rulemaking you reference is 
currently open, and I do not want to prejudice that process by 
stating what will be included in any revisions. In accordance 
with the Department's legal responsibilities under the 
Administrative Procedures Act, if confirmed, I will ensure that 
the Department carefully considers any revisions to the 
proposed rule that commenters may propose, including those 
described in this question.

Q.9. Will you commit that any revisions to HUD's disparate 
impact rule will follow the Supreme Court's 2015 dictate in 
Inclusive Communities that ``disparate-impact liability [should 
not] be so expansive as to inject racial considerations into 
every housing decision?''

A.9. If confirmed, I will ensure that any revised rule comports 
with Inclusive Communities and other applicable law.

Q.10. Will you commit that any revisions to HUD's disparate 
impact rule will follow the Supreme Court's dictate in 
Inclusive Communities that ``disparate impact liability must be 
limited so employers [can] make . . . practical business 
choices and profit-related decisions [to] sustain a vibrant and 
dynamic free-enterprise system?''

A.10. If confirmed, I will ensure that any revised rule 
comports with Inclusive Communities and other applicable law.

Q.11. Will you commit that any revisions to HUD's disparate 
impact rule will follow the Supreme Court's dictate in 
Inclusive Communities to have ``adequate safeguards'' for 
defendants at the prima facie (pleading) stage so ``race [is 
not] used and considered in a pervasive way [that] would almost 
inexorably lead governmental or private entities to use 
numerical quotas . . . ?''

A.11. If confirmed, I will ensure that any revised rule 
comports with Inclusive Communities and other applicable law.

Q.12. Will you commit that any revisions to HUD's disparate 
impact rule will follow the Supreme Court's dictate in 
Inclusive Communities to have ``robust causality'' between the 
defendant's actions and the harm to a protected class so that 
defendants will not be held liable for racial disparities they 
did not create?

A.12. If confirmed, I will ensure that any revised rule 
comports with Inclusive Communities and other applicable law.

Q.13. Will you commit that any revisions to HUD's disparate 
impact rule will follow the Supreme Court's dictate in 
Inclusive Communities to focus on removing ``artificial, 
arbitrary, and unnecessary barrier[s]'' to housing?

A.13. If confirmed, I will ensure that any revised rule 
comports with Inclusive Communities and other applicable law.

Q.14. Regulatory Policy--Do you commit to receiving comments 
from the public before publishing sub-regulatory guidance, 
including industry stakeholders, housing advocates, and 
families affected by HUD's policies?

A.14. I believe strongly in the benefit of public input for 
Federal agency decision-making whenever required or feasible. 
In formulating rules and regulations, HUD complies with the 
Administrative Procedure Act. HUD has several types of sub-
regulatory guidance documents, ranging from Handbooks, Notices, 
and Letters to FAQs, that serve to highlight or explain 
statutory or regulatory requirements that pertain to HUD 
programs or operations. HUD's sub-regulatory guidance documents 
are designed to assist program participants and the public, but 
do not have the force and effect of law, except pursuant to 
statutory or regulatory authority or as incorporated by 
contract.
    If I am confirmed as General Counsel, I will commit the 
Department to following the requirements of the Administrative 
Procedure Act in close consultation with the Office of 
Management and Budget, providing for public notice and comment 
where required. Further, I will encourage our program offices 
to continue existing practices for solicitation of public 
feedback as appropriate in connection with sub-regulatory 
guidance documents, even if it is not legally required.

Q.15. Economically significant policy changes require 
additional documentation such as a regulatory impact analysis 
(RIA) that comprehensively considers impacts on all 
stakeholders.
    Will you advise HUD to review all proposed changes to check 
if they are economically significant?

A.15. Yes. If confirmed, I will ensure that HUD works closely 
with the Office of Information and Regulatory Affairs (OIRA) to 
follow Executive Order 12866, which requires for each matter 
identified or determined to be a significant regulatory action 
that the agency provide an assessment to OIRA, including the 
underlying analysis, of the costs and benefits anticipated from 
the regulatory action, together, to the extent feasible, a 
quantification of those benefits.

Q.16. Do you commit to preparing RIAs and other additional 
materials for any economically significant policy changes?

A.16. Yes. If confirmed, I will ensure that HUD works closely 
with the Office of Information and Regulatory Affairs (OIRA) to 
follow Executive Order 12866, which requires for each matter 
identified or determined to be a significant regulatory action 
that the agency provide an assessment to OIRA, including the 
underlying analysis, of the costs and benefits anticipated from 
the regulatory action, together, to the extent feasible, a 
quantification of those benefits.

Q.17. Congressional Oversight--Please provide your philosophy 
on how HUD will approach and respond to Congressional 
information requests (both for documentary information and oral 
testimony), if you are confirmed.

A.17. I recognize and respect Congress' important role in 
conducting oversight of the Executive Branch. If confirmed, I 
would work with colleagues in HUD's Office of Congressional and 
Intergovernmental Relations to ensure HUD responds to 
Congressional requests for information, consistent with 
appropriate law and regulations.

Q.18. If confirmed, do you intend to respond to information 
requests differently depending on who is making the 
Congressional information request (whether it's the Chair of 
the Congressional Committee, the Ranking Member, or another 
Member of Congress)? Please answer ``yes'' or ``no.'' If your 
answer is ``yes,'' please explain.

A.18. No.

Q.19. Will you commit that, if confirmed, you will timely 
respond to and fully comply with all information requests from 
me? Please answer ``yes'' or ``no.'' If your answer is ``no,'' 
please explain.

A.19. If confirmed, I would ensure HUD responds to 
Congressional requests for information, consistent with 
appropriate law and regulations and will work with our Office 
of Congressional and Intergovernmental Relations to make sure 
we provide responses to your inquiries in close coordination 
with your staff.

Q.20. Will you commit that, if confirmed, you will make 
yourself and any other HUD employee expeditiously available to 
provide oral testimony (including but not limited to briefings, 
hearings, and transcribed interviews) to the Committee on any 
matter within its jurisdiction, upon the request of either the 
Chairman or Ranking Member? Please answer ``yes'' or ``no.'' If 
your answer is ``no,'' please explain why.

A.20. If confirmed, I will work to ensure HUD responds in a 
timely manner to all to Congressional requests for information, 
including from both Chairs and Ranking Members, consistent with 
applicable law and regulations.

Q.21. Do you believe that HUD may assert any privileges or 
other legal justifications to withhold information (whether 
records or oral testimony) from Congress? Please answer ``yes'' 
or ``no.''

A.21. The decision to assert a privilege or other legal 
justification to withhold information from Congress requires a 
fact-specific inquiry and cannot be resolved in the abstract. 
However, if confirmed, I will work to ensure that HUD addresses 
all Congressional informational requests as openly and 
transparently as possible, consistent with my obligation to my 
client.

Q.22. If you answered ``yes'' to the preceding question, please 
list every such privilege or other legal justification and 
provide the legal basis for why you believe HUD may use such 
privilege or legal justification to withhold information from 
Congress.

A.22. The decision to assert a privilege or other legal 
justification to withhold information from Congress requires a 
fact-specific inquiry and cannot be resolved in the abstract. 
However, if confirmed, I will work to ensure that HUD addresses 
all Congressional informational requests as openly and 
transparently as possible, consistent with my obligation to my 
client.

Q.23. In an effort to be open and transparent with Congress and 
the public, will you commit not to assert any such privilege or 
legal justification against Congress that you listed above? If 
not, why not? If so, please identify all such privileges or 
legal justifications that you will commit to not assert against 
Congress.

A.23. The decision to assert a privilege or other legal 
justification to withhold information from Congress requires a 
fact-specific inquiry and cannot be resolved in the abstract. 
However, if confirmed, I will work to ensure that HUD addresses 
all Congressional informational requests as openly and 
transparently as possible, consistent with my obligation to my 
client.

Q.24. Emergency Housing Voucher (EHV) Program--The law 
governing noncitizen eligibility for emergency housing vouchers 
(EHVs) makes clear that notwithstanding any other laws, only 
some lawful noncitizens may receive EHVs and no exceptions are 
made for unlawful aliens. \1\ A related law limiting 
eligibility for other housing programs to lawful noncitizens 
does provide exceptions for certain short-term shelter programs 
when assistance is not conditioned on income. \2\ However, the 
amount of assistance through the EHV program is conditioned on 
the applicant's income and the program is not short-term. Given 
that Congress knew how to make exceptions to citizenship 
eligibility requirements for homelessness programs and chose 
not to extend those exceptions for voucher programs, do you 
feel HUD's justification of its recent waiver requiring 
verification of eligible immigration status before admitting 
people into the EHV program is sufficient?
---------------------------------------------------------------------------
     \1\ 42 U.S.C. 1436a.
     \2\ 8 U.S.C. 1611(b)(1)(D).

A.24. HUD's recent policy implementing EHV did not waive the 
law governing noncitizen eligibility and PHAs remain 
responsible for ensuring that the vouchers are only provided to 
eligible applicants. In recognition that eligible applicants 
experiencing domestic violence, sexual assault, and human 
trafficking during the COVID-19 pandemic may have particular 
difficulty timely obtaining certain proof of eligibility, HUD 
made available to PHAs the option to have additional time to 
collect the necessary documentation.
    HUD takes seriously our responsibility to implement this 
and all programs in full accordance with laws and statutes. If 
confirmed, I will ensure that program flexibilities are 
extended in a way that complies with applicable statutes and 
regulations.

Q.25. Collaboration With HUD's Office of Inspector General 
(OIG)--Please provide your philosophy on how HUD will support 
and address OIG audits and investigations, if you are 
confirmed.

A.25. Although management responses to OIG audits are typically 
led by the program offices audited, the Office of General 
Counsel (OGC) plays an important role in helping our clients 
respond and ensuring that responses are legally sufficient. In 
addition, OGC often liaises with counsel for OIG to attempt to 
resolve disputes between our respective clients prior to 
elevation to the Deputy Secretary.
    I am proud of the close relationship that I was able to 
develop with OIG in my prior tenure at HUD. The success of that 
collaboration was confirmed when OIG granted me the HUD-OIG 
Eagle Award for Outstanding Partnership. If confirmed, I would 
work to build that same rapport and work closely to resolve 
audits in support of OIG's mission of reducing and eliminating 
waste, fraud, and abuse in HUD programs.

Q.26. In 2020, HUD-OIG determined that for the last 11 years, 
HUD has failed to submit an annual report to Congress required 
by law on troubled PHAs. \3\ Will you commit to transmitting 
this report this year as required by law?
---------------------------------------------------------------------------
     \3\ 42 U.S.C. 1437d(j)(5); HUD-OIG, 2019-OE-0001 ``HUD Has Not 
Referred Troubled Public Housing Agencies as the Law and Regulations 
Require'' 10 (Feb. 4, 2020), available at https://www.hudoig.gov/sites/
default/files/2020-02/2019-OE-0001.pdf.

A.26. Yes. Pursuant to section 6(j)(5) of the United States 
Housing Act of 1937 (42 U.S.C. 1437d(j)(5)), HUD submitted an 
overview of troubled PHAs in Fiscal Year 2019 to Congress on 
August 25, 2020. The overview of troubled PHAs for Fiscal Year 
2020 is currently in departmental clearance. If confirmed, I 
would look into this matter and seek to ascertain ways to 
---------------------------------------------------------------------------
improve the reporting process.

Q.27. HUD measures the performance of PHAs across a number of 
indicators to ensure that units are decent, safe, sanitary, and 
in good repair. After compiling scores for each indicator into 
an overall score, the PHA receives a performance designation. 
\4\ HUD-OIG determined that a number of PHAs that received a 
``troubled performer'' designation remained troubled for longer 
than two years, after which time they should have been referred 
to the HUD Assistant Secretary for takeover. HUD-OIG determined 
that when ``[the HUD Office of Public and Indian Housing] does 
not refer a troubled PHA to the Assistant Secretary after the 
maximum 2-year recovery period, a PHA could remain troubled for 
a period beyond that maximum 2-year period while conditions 
stagnate or deteriorate.'' \5\ Will you ensure that HUD's 
process for referring troubled PHAs to the HUD Assistant 
Secretary for takeover by HUD would be consistent with the law 
and regulations as identified by HUD-OIG?
---------------------------------------------------------------------------
     \4\ 24 CFR 902.11(d).
     \5\ HUD-OIG, 2019-OE-0001 ``HUD Has Not Referred Troubled Public 
Housing Agencies as the Law and Regulations Require'' 5.

A.27. I take very seriously all findings and determinations 
made by the HUD-OIG. If confirmed, I will work with the 
relevant program officials to ensure that HUD's handling of 
PHAs designated ``troubled performer'' is in accordance with 
applicable laws and regulations.
                                ------                                


        RESPONSES TO WRITTEN QUESTIONS OF SENATOR TILLIS
                      FROM DAMON Y. SMITH

Q.1. Recently, the Department issued guidance which permits 
officials to issue emergency housing vouchers (EHV) to 
individuals without first providing a Social Security number. 
This policy risks inviting fraud by illegal immigrants.
    What action is HUD taking to ensure that American citizens, 
and not illegal immigrants, receive assistance? What measures 
are in place to prevent illegal immigrants from violating 
Federal law and taking advantage of EHV assistance?

A.1. HUD's recent policy implementing EHV did not waive the law 
governing noncitizen eligibility and PHAs remain responsible 
for ensuring that the vouchers are only provided to eligible 
applicants. In recognition that eligible applicants 
experiencing domestic violence, sexual assault, and human 
trafficking during the COVID-19 pandemic may have particular 
difficulty timely obtaining certain proof of eligibility, HUD 
made available to PHAs the option to have additional time to 
collect the necessary documentation.
    HUD takes seriously our responsibility to implement this 
and all programs in full accordance with laws and statutes. If 
confirmed, I will ensure that program flexibilities are 
extended in a way that complies with applicable statutes and 
regulations.

Q.2. How will the agency ensure that American taxpayer dollars 
are repaid, if and when illegal immigrants unlawfully receive 
EHV assistance due to this policy?

A.2. If confirmed, I will direct my Program Enforcement counsel 
and the Departmental Enforcement Center to work closely with 
the program office and HUD-OIG to ensure that HUD's response to 
this scenario or any other that may occur in the implementation 
of EHVs is in accordance with applicable laws and regulations.

Q.3. I sent a letter on June 11 to the Department to raise my 
concerns about this policy, and requested a response no later 
than July 12. Can you please provide an update on the status of 
this letter, and when I should expect to receive a response?

A.3. The letter is being processed by the Department. My 
colleagues in the Office of Congressional and Intergovernmental 
Relations have informed me that they provided an update to your 
office.

                                [all]