[Senate Hearing 117-867]
[From the U.S. Government Publishing Office]
S. Hrg. 117-867
NOMINATIONS OF JAY CURTIS SHAMBAUGH
AND REBECCA LEE HAFFAJEE
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON FINANCE
UNITED STATES SENATE
ONE HUNDRED SEVENTEENTH CONGRESS
SECOND SESSION
ON THE
NOMINATIONS OF
JAY CURTIS SHAMBAUGH, TO BE UNDER SECRETARY FOR INTERNATIONAL AFFAIRS,
DEPARTMENT OF THE TREASURY; AND REBECCA LEE HAFFAJEE, TO BE ASSISTANT
SECRETARY FOR PLANNING AND EVALUATION, DEPARTMENT OF HEALTH AND HUMAN
SERVICES
__________
JULY 12, 2022
__________
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Printed for the use of the Committee on Finance
__________
U.S. GOVERNMENT PUBLISHING OFFICE
55-824--PDF WASHINGTON : 2024
COMMITTEE ON FINANCE
RON WYDEN, Oregon, Chairman
DEBBIE STABENOW, Michigan MIKE CRAPO, Idaho
MARIA CANTWELL, Washington CHUCK GRASSLEY, Iowa
ROBERT MENENDEZ, New Jersey JOHN CORNYN, Texas
THOMAS R. CARPER, Delaware JOHN THUNE, South Dakota
BENJAMIN L. CARDIN, Maryland RICHARD BURR, North Carolina
SHERROD BROWN, Ohio ROB PORTMAN, Ohio
MICHAEL F. BENNET, Colorado PATRICK J. TOOMEY, Pennsylvania
ROBERT P. CASEY, Jr., Pennsylvania TIM SCOTT, South Carolina
MARK R. WARNER, Virginia BILL CASSIDY, Louisiana
SHELDON WHITEHOUSE, Rhode Island JAMES LANKFORD, Oklahoma
MAGGIE HASSAN, New Hampshire STEVE DAINES, Montana
CATHERINE CORTEZ MASTO, Nevada TODD YOUNG, Indiana
ELIZABETH WARREN, Massachusetts BEN SASSE, Nebraska
JOHN BARRASSO, Wyoming
Joshua Sheinkman, Staff Director
Gregg Richard, Republican Staff Director
(II)
C O N T E N T S
----------
OPENING STATEMENTS
Page
Wyden, Hon. Ron, a U.S. Senator from Oregon, chairman, Committee
on Finance..................................................... 1
Crapo, Hon. Mike, a U.S. Senator from Idaho...................... 2
ADMINISTRATION NOMINEES
Shambaugh, Jay Curtis, Ph.D., nominated to be Under Secretary for
International Affairs, Department of the Treasury, Washington,
DC............................................................. 3
Haffajee, Rebecca Lee, Ph.D., nominated to be Assistant Secretary
for Planning and Evaluation, Department of Health and Human
Services, Washington, DC....................................... 5
ALPHABETICAL LISTING AND APPENDIX MATERIAL
Crapo, Hon. Mike:
Opening statement............................................ 2
Prepared statement........................................... 29
Haffajee, Rebecca Lee, Ph.D.:
Testimony.................................................... 5
Prepared statement........................................... 29
Biographical information..................................... 31
Responses to questions from committee members................ 43
Shambaugh, Jay Curtis, Ph.D.:
Testimony.................................................... 3
Prepared statement........................................... 50
Biographical information..................................... 51
Responses to questions from committee members................ 66
Wyden, Hon. Ron:
Opening statement............................................ 1
Prepared statement........................................... 82
Communication
Legal Action Center.............................................. 85
(III)
NOMINATIONS OF JAY CURTIS SHAMBAUGH,
TO BE UNDER SECRETARY FOR
INTERNATIONAL AFFAIRS, DEPARTMENT OF
THE TREASURY; AND REBECCA LEE
HAFFAJEE, TO BE ASSISTANT SECRETARY
FOR PLANNING AND EVALUATION,
DEPARTMENT OF HEALTH
AND HUMAN SERVICES
----------
TUESDAY, JULY 12, 2022
U.S. Senate,
Committee on Finance,
Washington, DC.
The hearing was convened, pursuant to notice, at 10:07
a.m., in Room SD-215, Dirksen Senate Office Building, Hon. Ron
Wyden (chairman of the committee) presiding.
Present: Senators Bennet, Casey, Whitehouse, Cortez Masto,
Warren, Crapo, Thune, Lankford, and Daines.
Also present: Democratic staff: Ian Nicholson,
Investigator/
Nominations Advisor; and Joshua Sheinkman, Staff Director.
Republican staff: Lincoln Foran, Policy Advisor; Gregg Richard,
Staff Director; and Jeffrey Wrase, Deputy Staff Director and
Chief Economist.
OPENING STATEMENT OF HON. RON WYDEN, A U.S. SENATOR FROM
OREGON, CHAIRMAN, COMMITTEE ON FINANCE
The Chairman. The Finance Committee will come to order. The
committee meets this morning to discuss two key nominations for
important roles dealing with economic and health policy.
First up, Dr. Rebecca Haffajee is nominated to serve as the
Assistant Secretary for Planning and Evaluation at the
Department of Health and Human Services. This job is right at
the center of the Department's efforts to tackle the biggest
health and family policy challenges, leading on strategy,
coordination, and research on health issues.
For example, one of those big challenges is also a top
priority for us as a committee. It involves improving mental
health care in America. The lack of affordable mental health
care is an issue in every community in every State--the biggest
cities and the smallest towns. It affects people of all
backgrounds and all income levels. And Senator Crapo and I have
put in vast amounts of time on this issue. We want this to be a
bipartisan question, because solving the mental health
challenge requires lawmakers and the Department to bring
together the best ideas, no matter where they come from: from
different Federal agencies; from the States and local
governments; from the private sector; from Democrats and
Republicans here in the Congress.
It is a big help to that process when there is a confirmed
Assistant Secretary for Planning and Evaluation. It will also
be a big help that Dr. Haffajee is very qualified for the job,
and she brings, in my view, just the right experience for this
position.
In March 2021, she was appointed Principal Deputy Assistant
Secretary for Planning and Evaluation, and she served as the
acting Assistant Secretary for more than a year. She is a top
expert and a widely published researcher on health policy
issues. So she is going to help us lead progress on improving
mental health, as well as fighting the drug abuse epidemic,
improving health coverage, and lowering the cost of
prescription medicines.
Next up, Dr. Jay Shambaugh is nominated to serve as Under
Secretary for International Affairs at the Treasury Department.
The Treasury's Office of International Affairs deals with major
global economic challenges, including cracking down on currency
manipulation, dealing with trade cheats, and strengthening
America's relationships with economic allies. That includes
coordinating and evaluating the effectiveness of sanctions on
Russia. It comes down to protecting and growing our economy and
creating jobs, in my view, and I think Dr. Shambaugh knows
this. Dr. Shambaugh, this speaks to the whole question of
giving everybody in America--everybody--the chance to get
ahead.
The doctor is a professor of economics and international
affairs at the George Washington University. He previously
served as a member of the White House Council on Economic
Advisors and on the Council of Economic Affairs staff as Chief
Economist. He is also an author and an expert on international
economics.
Colleagues, I want to tell you that, in my view, we have
two highly qualified nominees here. I want to thank them for
joining the committee today, and for their willingness to
serve. And I want to recognize my friend, Senator Crapo.
[The prepared statement of Chairman Wyden appears in the
appendix.]
OPENING STATEMENT OF HON. MIKE CRAPO,
A U.S. SENATOR FROM IDAHO
Senator Crapo. Thank you, Chairman Wyden. And welcome, Dr.
Shambaugh and Dr. Haffajee. And congratulations on your
nominations.
Dr. Shambaugh, in terms of tax issues, the OECD
negotiations could have significant international economic
consequences, and this important position could be involved in
advising on the economic effects of the OECD agreement and
projected implementation. I hope you will share your insights
on the effect of the OECD agreement on U.S. businesses and U.S.
revenue--and any other analysis of the potential effects of the
OECD agreement.
Additionally, I look forward to hearing your perspectives
on the current international economic environment, including
the interplay between fiscal policy, energy policy, and the 40-
year high inflation which is effecting America today.
Turning to Dr. Haffajee, you have written extensively on
the health impacts of marijuana legalization, opioid addiction
treatment, and public health emergencies, among other issues.
Please share your perspectives on these issues, as well as how,
should you be confirmed, you will challenge the administration
to evaluate programs in these and other areas fairly and with
close attention to what the facts indicate, rather than what
political agendas might dictate.
I remind both of our nominees also that the success of the
Departments of Treasury and Health and Human Services depends
on a strong partnership with Congress, which includes
transparency and consultation with our offices. This is true
not just because of the authority Congress has delegated, but
because members are well positioned to understand the needs of
our constituents.
I ask both nominees today to confirm that they will be
attentive to members of this committee, and indeed the broader
Senate, should they be confirmed. And I look forward to hearing
their testimony and their responses to questions. Thank you.
[The prepared statement of Senator Crapo appears in the
appendix.]
The Chairman. I thank my colleague.
Dr. Shambaugh, we will have your opener and Dr. Haffajee's
opener, and then we have some questions, procedural questions
we have to deal with, and then we will have questions from
members.
Dr. Shambaugh, please.
STATEMENT OF JAY CURTIS SHAMBAUGH, Ph.D., NOMINATED TO BE UNDER
SECRETARY FOR INTERNATIONAL AFFAIRS, DEPARTMENT OF THE
TREASURY, WASHINGTON, DC
Dr. Shambaugh. Thank you. Chairman Wyden, Ranking Member
Crapo, and distinguished members of the committee, I am honored
to appear before the committee today as you consider my
nomination to be Treasury Under Secretary for International
Affairs. I am thankful for the support of President Biden, Vice
President Harris, and Secretary Yellen.
If confirmed, it would be a privilege to work with the
distinguished public servants in International Affairs at
Treasury. I look forward to working closely with this committee
and your colleagues in Congress to pursue international
economic policies that further the interests of the American
people.
I want to thank my family for their support: my wife Lisa,
who is here with me today; my children Tyler and Jack; my
sister; and my parents Curt and Nancy Shambaugh. My mother was
a teacher. She volunteered at the local hospital and in
schools. And she eventually became president of the school
board in the local public school system I attended. My father
worked in finance and also served as a trustee for our church.
I learned from my parents that public service and making a
positive contribution in the world are important
responsibilities. I have tried to carry this lesson with me,
serving as a deacon in two churches and coaching youth sports.
I have also dedicated much of my professional life to trying to
make a positive contribution in the world through public
service and engaging in public policy.
For the last 25 years, my career has been focused on
economic policy. My core area of research has been empirical
international macroeconomics--the study of exchange rates,
capital flows, and spillovers across countries. I have
published articles in top journals as well as a book on these
questions. I am a research associate at the National Bureau of
Economic Research in International Finance and Macroeconomics.
I also have presented at major conferences and central banks
around the world, spent time as a visitor at the IMF, and have
taught international economics for over 20 years.
I believe my experience creates a strong foundation to
address many of the policy questions faced by Treasury's Office
of International Affairs. At the same time, my experience is
not just theoretical. During my time at the White House Council
of Economic Advisers, I attended many strategic and economic
dialogue meetings with China and met with Chinese officials and
officials from a number of countries around the world. I also
represented the U.S. Government at the OECD in discussions
related to economic issues.
These experiences have prepared me well to serve in the
role of Under Secretary, where international economic diplomacy
is one of the many responsibilities. I also had the opportunity
to work on a wide range of international economic issues--
ranging from trade and development economics to international
finance and climate--preparing me for the broad range of
subjects covered by Treasury International Affairs.
I also have significant experience working on U.S. economic
policy issues, ranging from economic and wage growth, to energy
and climate issues, to regional disparities and the impact of
trade shocks. Studying these issues has prepared me to
carefully consider how U.S. global economic leadership on a
range of issues affects the American economy, American
households, and American workers.
The last 2 decades have emphasized more than ever the
importance of our global economic policies and how those
policies affect the U.S. economy, our national security, and
American families. Shifting trade patterns and rising trade and
competition with China have directly impacted many communities
around the United States. The global economic crisis after 2008
accentuated the importance of global growth to the health of
our economy. Dealing with the disruption of the flow of goods
and parts during the pandemic has highlighted the
interconnectedness of our economy.
Most recently, U.S. global economic tools are being used to
respond to the illegal invasion of Ukraine by Russia, which
further underscores the importance of our economic diplomacy to
protect national security. Interconnectedness, financial
crises, shocks from trade, complicated supply chains, unequal
global outcomes, the links between foreign and economic
policies--these are the challenges of our time. If confirmed, I
look forward to working on these issues and consulting closely
with the members of this committee and Congress.
Thank you, Chairman Wyden, Ranking Member Crapo. I look
forward to your questions.
[The prepared statement of Dr. Shambaugh appears in the
appendix.]
The Chairman. Dr. Shambaugh, thank you.
Dr. Haffajee?
STATEMENT OF REBECCA LEE HAFFAJEE, Ph.D., NOMINATED TO BE
ASSISTANT SECRETARY FOR PLANNING AND EVALUATION, DEPARTMENT OF
HEALTH AND HUMAN SERVICES, WASHINGTON, DC
Dr. Haffajee. Chairman Wyden, Ranking Member Crapo, and
members of the committee, thank you for considering my
nomination to be the Assistant Secretary for Planning and
Evaluation, or the ASPE, within the U.S. Department of Health
and Human Services.
I am honored by President Biden's decision to nominate me
for this role, and should I be confirmed, I look forward to
serving under his leadership and Secretary Becerra's
leadership.
Before I begin my testimony, I would like to thank my
family. With me here today is my husband, James Drabick. And
supporting me virtually are my two young children, Annabelle
and Samuel, as well as my father and sister, Drs. Charles and
Jessica Haffajee. With me in spirit is my mother, Dr. Anne
Haffajee. Without their support and their love, I would not be
here today.
My name is Rebecca Haffajee, and I am a lawyer, researcher,
and policy analyst. And before all of those things I am a
daughter. Both of my parents were first-generation Americans,
and both were clinicians. Growing up and watching them work in
health care inspired my passion for improving health and well-
being outcomes for all Americans.
My father is still a practicing cardiologist. He loves his
patients, and his patients love him. And watching him be the
best physician he can be, and often saving their lives, taught
me how critical
patient-centered care is to positive health outcomes.
My mother was a renowned dental researcher. She is also my
biggest inspiration. My mother not only lovingly raised a
family and excelled in her career, but she did so while
battling long-term cancer throughout much of her life. Her
battle taught me how important it is to ensure that we are
doing the best thing for people when they are experiencing
serious health challenges.
Though I began my professional career in health-care law,
my passion really lies in using research and the research
process to implement policy changes that improve people's
health and well-being. I spent time living in East Africa
working in public health on research around care for mothers
and children affected by HIV/AIDS. For more than a decade, I
have focused on U.S. health policy research, first as a
professor at the University of Michigan and then as a policy
researcher at the RAND Corporation. I am passionate about my
work because I truly believe that changes made at the Federal,
State, and local levels can have meaningful impacts when
research informs that policy.
While many in government and across the country may not be
familiar with ASPE, its work changes lives. Researchers at ASPE
work to ensure that the President, the Secretary, and leaders
across HHS have the best available data and evidence when they
are making decisions and measuring the impact of those
decisions on the population's health and well-being.
For more than a year now, I have worked within ASPE,
serving as the Acting Assistant Secretary. I have had the
opportunity to lead much of the agency's most rigorous research
and strategic planning. And my understanding of the nuts and
bolts of the agency, as well as the Department and
administration at large, and the strong relationships I have
built, will serve me well in the role, should I be confirmed.
If confirmed as the Assistant Secretary for Planning and
Evaluation, I would work to ensure that ASPE is focused on
using the best research and data to expand health-care access,
strengthen behavioral health, and advance equity. We know from
our work in ASPE that expanding access to health care is
critical to our Nation's health and well-being. When people do
not have health-care coverage or that coverage is not high-
quality, we all suffer the consequences.
Mental health and substance use challenges have been
exacerbated by COVID-19. But even before the pandemic, this
area of health was underemphasized and underfunded. ASPE can
play a critical role in strengthening our Nation's behavioral
health infrastructure and has demonstrated this already through
its work on the HHS Overdose Prevention Strategy, which I was
privileged to lead in developing.
Finally, on equity, to understand why health inequities
exist and how to best address them, we have to look at the root
causes--also known as the social determinants of health. Things
like income, education, housing, social support--these are so
important to health outcomes. And through ASPE's ongoing social
determinants of health and equity work, we can understand how
best to ensure that those in underserved and underresourced
populations do not experience gaps in services and supports and
are able to live their healthiest lives.
None of these priorities I have laid out can be achieved
without strong partnership and communication, particularly with
the Congress and with stakeholders across the health-care
sector. I have learned, in my various roles, the importance of
listening to and understanding the perspectives of different
health stakeholders, including patients, providers, and
governments. These perspectives inform research agendas; the
data collected and analyzed; and ultimately, effective
policies.
The research that ASPE provides is critical to the work of
HHS and agencies across the Federal Government. If confirmed, I
look forward to continuing ASPE's transformative work to meet
the health and well-being needs of our Nation.
Thank you for considering my nomination, and I look forward
to your questions.
[The prepared statement of Dr. Haffajee appears in the
appendix.]
The Chairman. Dr. Haffajee, thank you.
Now I have some obligatory questions I have to ask both of
you.
First, is there anything that you are aware of in your
background that might present a conflict of interest to the
duties of the office to which you have been nominated?
Dr. Shambaugh. No.
Dr. Haffajee. No.
The Chairman. Second, do you know of any reason, personal
or otherwise, that would in any way prevent you from fully and
honorably discharging the responsibilities of the office to
which you have been nominated?
Dr. Shambaugh. No.
Dr. Haffajee. No.
The Chairman. Third, do you agree, without reservation, to
respond to any reasonable summons to appear and testify before
any duly constituted committee of the Congress, if you are
confirmed?
Dr. Shambaugh. Yes.
Dr. Haffajee. Yes.
The Chairman. Finally, do you commit to providing a prompt
response in writing to any questions addressed to you by any
Senator of the committee?
Dr. Shambaugh. Yes.
Dr. Haffajee. Yes.
The Chairman. All right, let's go to questions, and
beginning with you, Dr. Shambaugh. If you are confirmed, you
are going to be involved in the debate about global taxation.
And I recently released an analysis of my current investigation
into how major pharmaceutical companies are using tax havens to
avoid paying their fair share of taxes. Our report showed that
AbbVie had 75 percent of its sales in the United States, but 99
percent of its profits were reported offshore, much of it in
tax havens like Bermuda. The report also found that since 2017,
AbbVie has been able to exploit subsidiaries in offshore tax
havens to avoid paying billions of dollars in taxes on
prescription drug sales.
So, let's picture it this morning. You have Americans
waiting in line to get their prescriptions filled, wondering
how they are going to be able to afford their medicines and
still pay the rent and buy groceries. And then we see these big
pharmaceutical giants--and, by the way, we are concerned about
Merck and Abbot as well, because they have been stonewalling
our questions. So, you have these big pharmaceutical giants
finding ways to make money here in the United States selling
medicines, desperately needed medicines, to senior citizens.
And then they go off and book their profits somewhere else. It
is textbook tax evasion.
Now, you are not at the Treasury Department yet, but what
is your understanding of how reforming our international tax
system in line with a global minimum tax would address this
type of tax avoidance?
Dr. Shambaugh. Well, Senator, I think, first of all, by
having a global minimum tax from the United States, what it
would mean is, income booked outside the United States would
still be facing some sort of tax. It can right now under the
2017 law, but as your investigation suggests, it is still
something that firms can avoid.
The global minimum tax that has been negotiated, my
understanding is, would also raise that rate somewhat from the
2017 law, which would bring it a little closer to the U.S.
statutory rate, which would basically give firms less of an
incentive to book profits elsewhere.
I think the really crucial part of it, though, my
understanding of it, is because it is negotiated with over 100
countries, it means that other countries would also have a
global minimum tax set up, so that U.S. firms would not face a
disadvantage because the U.S. taxes foreign profits, because
other countries would be doing so as well. So I think, in that
sense, we would try to harmonize policies across the world and
have less of a race-to-the-bottom setup--and frankly, really
less of an incentive to use tax havens.
The Chairman. I thank you. That is a thoughtful answer, and
I am not surprised, because you have worked on these global
economic issues for some time. People always say, ``Oh, this
stuff is really complicated and hard to sort out.'' It is not
so complicated when you think, Senator Bennet, about senior
citizens standing in line in Colorado, trying to figure out how
they are going to afford their medicine. And then we read about
these companies that make their profits in the United States,
hunting and pecking for tax havens around the country to avoid
paying their fair share. But thank you for your thoughtful
answer.
Dr. Haffajee, thank you as well for being here, and for the
professionalism that you have brought to this whole health
issue for years in the past.
I want to ask you about the accelerated FDA approval issue,
and put it in the context of Alzheimer's, because we all
desperately want cures for Alzheimer's. My mother got a
master's degree from Yale in the day when no woman got a
master's degree, and was dealing with Alzheimer's for well over
a decade. So we desperately want a cure.
So, we recently went through the accelerated approval
process with respect to a new Alzheimer's drug, and I want to
walk you through what happened.
The company comes in. We have what amounts to a real
breakthrough, a cure. So, what is the government going to do?
The government is going to jack up Part B premiums for seniors
in order to cover this. Well, it is still questionable what the
evidence is.
So, when Dr. Califf was nominated to head the FDA, I asked
him in considerable detail about whether we ought to have a
fresh policy. I want to support accelerated approvals for
desperately needed medicine, but I also want the next step to
be those critical trials to make sure we get to the bottom of
the evidence.
Do you agree with Dr. Califf? And what might you do in your
position at ASPE, the HHS Department, to promote that
philosophy? Because I feel very strongly about it. Accelerated
approval can really give us the opportunity to make
breakthroughs. But we also have to have the next step, which
are these critical trials.
Your thoughts?
Dr. Haffajee. Thank you, Senator Wyden, for the question.
And this is an important one.
First off, I do agree with Dr. Califf's position that we
need to make sure that when we have drugs approved through this
accelerated pathway, that we do the confirmatory studies and
confirm the clinical benefits. And I would--were I to be
confirmed, I would support you and Dr. Califf in making sure
that that happens.
The Chairman. Very good.
Senator Crapo?
Senator Crapo. Thank you, Senator Wyden.
And, Dr. Shambaugh, the State and local funds that were
eventually adopted in the American Recovery Plan Act, or ARPA,
totaled $350 billion, even though many commentators criticized
that amount as excessive. Indeed, many States reported budget
surpluses over the last 2 years, with California reporting a
$76-billion surplus in 2021, and a $98-billion surplus in 2022.
And also in 2021, California received $26 billion in Federal
aid under ARPA.
In light of these circumstances, were the critics of the
ARPA plan correct in calling the $350-billion State aid package
excessive?
Dr. Shambaugh. Senator, it is not an issue I have spent a
great deal of time looking at. So, from the surface what I
would say is one of the challenges in crafting some sort of
bill like that is you do not always know exactly what is coming
down the pike. And so, the recovery was more rapid, I think,
than many people expected. And so in that sense, State budgets
have recovered faster than I think many people were
anticipating at the time it was passed.
Senator Crapo. Well, thank you. I actually think that that
is accurate, and there are many of us who are saying maybe we
should redirect those funds either back to the Treasury or
something else. But I will not go into that with you.
Did the $1.9 trillion of Federal spending in ARPA that was
unleashed through both State and local aid, as well as through
direct payments to individuals, did that contribute to our
inflation over the past 2 years?
Dr. Shambaugh. I think inflation is generally seen by most
economists to be a function of supply and demand in the
economy. To the extent that the Rescue Act led to faster
economic growth than we would have had--fewer people
unemployed, people with more money in their bank accounts--that
would have provided some more demand. I think most studies have
said it is somewhat at the margin, not a massive impact, but
that it probably left us with less unemployment than we would
have had and therefore a little more demand in the economy.
Senator Crapo. Well, just finally on this issue, California
has a new, what I call a scheme to send residents an additional
$17 billion in, quote, ``inflation relief,'' end quote, which a
Bloomberg columnist recently called economic illiteracy of the
highest order that will increase--and I think what he was
saying is that that is just going to fuel inflation.
Would you agree that sending out $17 billion worth of
checks to people in order to help them deal with inflation is
actually going to cause a greater inflationary impact?
Dr. Shambaugh. I think the reality is, given the size of
the economy, $17 billion probably would have a marginal impact.
It probably would not be all that substantial. I think any more
money spent at the very small margin could increase inflation,
but I do not think $17 billion, in the scope of the U.S.
economy, would probably be a substantial factor.
Senator Crapo. Well, would you at least agree that pumping
spending into the economy at this point, when we have a demand
issue with regard to inflation, is going to cause more demand
and more inflation?
Dr. Shambaugh. Yes, I agree. At the margin, more demand is
going to lead possibly to more inflation. I think things around
that margin probably would not be a huge impact.
Senator Crapo. Okay; thank you.
And, Dr. Haffajee, in 2014--I want to talk to you about the
public health emergency surrounding COVID.
In 2014, you and two coauthors wrote that ``the spirit of
emergency powers laws seems to enshrine three key criteria for
suspending normal lawmaking processes: the situation is
exigent; the anticipated or potential harm would be calamitous;
and the harm cannot be avoided through ordinary procedures.''
That is what we saw with COVID. ``The lack of clear
triggering thresholds for terminating emergency powers is
particularly troubling''--this is, again, from your article--
``creating the possibility that critical legal protections
might be suspended indefinitely.''
So the question I have to you, which is one that is being
asked by many, is, are we still in a public health emergency
related to COVID-19?
Dr. Haffajee. Thank you for the question, Senator Crapo.
During COVID-19 we have found that the public health emergency
declaration by the Secretary has unleashed a number of
authorities that have been very helpful in addressing the acute
harms of the pandemic. And for many of those flexibilities,
there is exploration about whether they should be extended, for
example telehealth.
So ultimately, the decision about whether to terminate the
public health emergency rests with the Secretary. ASPE's role,
which would continue were I to be confirmed, is to inform that
with data and evidence around what is the situation on the
ground? What would need to happen should this public health
emergency be terminated? It is a complex issue because it
involves, you know, agencies across HHS, and partnerships with
the States, which is why the Secretary has said he would give
60 days' notice before terminating.
Senator Crapo. Well, thank you for that analysis. You know,
Senator Wyden and I are working on the lessons to learn from
some of these emergency actions that have been very helpful and
maybe should become permanent. I think that should happen in
regular order, though.
Thank you.
The Chairman. Thank you, Senator Crapo. And we will be
working together on those issues.
Senator Bennet?
Senator Bennet. Thank you, Mr. Chairman. Thank you for
holding the hearing, and thank you both for your willingness to
serve.
Dr. Shambaugh, I am concerned. For years across Democratic
and Republican administrations, we have neglected to implement
a coherent strategy in the Indo-Pacific region. Instead, China
has expanded its global influence, including across Latin
America, for example. Businesses in Colorado and throughout the
country are experiencing supply chain challenges, driven in
part by our over-
reliance on China.
In light of supply chain disruptions due to the COVID
crisis and ongoing global instability, how can we use our trade
and development policy to reshore critical supply chains to the
United States, and near-shore others? Can this strategy
strengthen our relationship with countries across our
hemisphere?
Dr. Shambaugh. Thank you, Senator. I would say the shortest
answer is that, yes, policies aimed at re-shoring--or friend-
shoring, as I know Secretary Yellen has referred to it--or
near-shoring present opportunities to try to strengthen our
supply chains.
I think some of that we have seen. I think firms are
learning on their own that firms that try to minimize costs and
have only one supplier as the lowest-cost supplier are suddenly
finding that that may be the lowest cost in good times, but not
in bad times. And so they are trying to diversify their supply
chains on their own. But I think these are certainly the kind
of things--a coherent set of policies aimed to work with
allies, both across the Indo-Pacific and in the Western
Hemisphere, can be important as ways to try to make sure that
we have critical supply chains that are durable and lasting,
even in bad times.
Senator Bennet. What kind of tools are available to you,
the administration, including things like development banks, to
try to improve the supply chains here and in Latin America as
well?
Dr. Shambaugh. Certainly when it comes to the Western
Hemisphere, the multilateral development banks become an
important partner for the United States to try to make sure
that private industry is developing and has access to capital
in the region. That is an important goal.
Certainly, across the Indo-Pacific, the new framework that
the administration has rolled out to try to coordinate better
with other countries to make sure--whether it is around rules,
whether it is around sourcing, whether it is around data
transparency--that as many things as we can do to make sure
firms understand a coherent set of rules makes it much easier
for them to transact across countries.
Senator Bennet. Dr. Haffajee, during your time as Acting
Assistant Secretary for Planning and Evaluation, the office
published a report on the effect of the expanded Advance
Premium Tax Credit on health insurance coverage. This support
has reduced premium costs for over 100,000 Coloradans to enroll
in affordable health insurance plans for the first time, but it
is set to expire at the end of the year if Congress fails to
act.
In Colorado, if we fail to extend this support, people with
the lowest income could see their premiums increase 2.5 percent
per month. That is an unacceptable outcome.
When tax cuts for the rich are about to expire, Congress
has bent over backwards to find funding to extend them. We need
to do everything we can to extend the premium support.
Could you discuss how ending the expanded premium tax
credits will affect low- and moderate-income Americans, and
what other kinds of research and evaluation do you intend to
focus on, should you be confirmed?
Dr. Haffajee. Thank you for the question, Senator Bennet.
Really here, the HHS and ASPE are committed to expanding access
and affordability of coverage to as many Americans as possible.
The Advance Premium Tax Credits have been a really
important tool from the ACA, but also, as you know, during the
pandemic through the ARP, the increased generosity of those has
really made coverage more affordable for more people, and
covered millions of uninsured who otherwise would not have been
covered.
You are correct. ASPE has done some analyses to look at
what would happen should these go away in 2023. It approximates
about 15 percent of the population on those plans would lose
coverage across the country.
So this is a really important issue to be thinking about as
we move towards the end of this year. ASPE, were I to be
confirmed, would continue to conduct data analysis to support
this Congress and this body in understanding what those
implications would be.
Senator Bennet. Thank you both for your testimony.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Bennet.
Senator Casey?
Senator Casey. Mr. Chairman, thanks very much.
I want to thank both witnesses today, and especially for
your commitment to public service, both Professor Shambaugh and
Dr. Haffajee.
I wanted to start, Doctor, with you, to commend the
research work that you have done and the public policy work you
have done. I want to ask you a question that focuses on home
and community-based services for seniors and people with
disabilities, which is a real failing, the lack of investment
in this area. It is a real failure of the Federal Government
over a long period of time.
The only way you can get those services in America today is
if you are the beneficiary of a waiver, and the waiting list
for those waivers is approaching a million people.
We should invest in the expansion of home and community-
based services if we are going to call ourselves the greatest
country in the world, and the country that claims to provide
the best care to our people. But we have not gotten there yet,
and we've got a battle ahead to get there.
I wanted to ask you, though, in particular about the fact
that if we make this investment, it will not only be better for
seniors to get care in their home, and people with disabilities
to get care in their home or in the community--and there is an
extraordinarily high preference for that--but it is also cost-
effective. It is better for the Federal Government if we do
this.
So, could you talk about the research that you could do, if
you were confirmed as the Assistant Secretary for Planning and
Evaluation, to assess savings to the Medicare program, if we
were to increase access to these home and community-based
services?
Dr. Haffajee. Thank you for the question, Senator Casey. As
you know, home and community-based care services are so
important--we have done a lot to shift the balance towards
those, but have more work to do--and are becoming more and more
important as we have an aging population, as we have more
chronic conditions, as people really want to receive care and
services in their homes as much as possible. I can attest to
that, having had a mother who had a chronic health condition
and saw her preference for that strongly.
I think the principle is that we need to make sure that
those services are high-quality and meet the needs of our
beneficiaries, and then also that the workforce is expanded and
works in safe conditions, and is reimbursed. Those are some of,
I think, the top priorities there.
Another important issue, as you note, is that these can be
cost-effective, both within the Medicaid program where States
are trying to expand their dollars as much as possible and put
them towards the most effective services, but also potentially
in the Medicare program as well.
And to my understanding, there has not been a lot of
research so far on that interaction between the Medicaid and
Medicare populations. If I were to be confirmed, I would be
happy to have further conversations and think about the ways
that ASPE could look at that issue.
Senator Casey. Thank you. And I am grateful you mentioned
the workforce, because that is another part of the problem. If
you are going to say you have the best care in the world and
you are paying people on average 12 bucks an hour, that is not
the best care in the world. And that is why there is such a
high turnover and a workforce crisis.
Professor, I wanted to ask you about labor market recovery.
What is your view of the most important steps we could take to
ensure that we complete our labor market recovery?
Dr. Shambaugh. Well, Senator, I would say in some ways,
many of those issues would probably rest to my left. I think
the continuing complications coming from the pandemic continue
to affect, not necessarily what we will call prime-age workers
between 25 and 54, but workers who are a little bit older than
that. Many of them, it seems, still have not reentered the
labor force. Some of that does seem to be either because they
are caring for people due to the pandemic, or they are
concerned about the pandemic themselves. That is one concern I
would say that we definitely have seen.
I would say in general, robust growth in the economy is
often the best tonic for the labor market. And so, continuing a
strong economy is the best way to get people to work,
generally.
Senator Casey. Thanks very much.
Thank you, Mr. Chairman.
The Chairman. I thank my colleague.
Dr. Haffajee, I just want to build for a quick second on
what Senator Casey was talking about with respect to elder care
at home.
One of the things that I look at--and I have been at this
since the days when I was with the Gray Panthers, years and
years ago--is, what are the principles that we ought to be
looking at for the future? I think health-care prevention would
obviously be one in your bailiwick.
But Senator Casey has been prosecuting this case so well,
and so relentlessly, on another area that ought to be a
foundation of American health care, and that is more care at
home, as he noted. And I remember watching him work--the
Gerontology Association is supportive of the work that Senator
Casey is doing to be able to give people more care where they
want it, at home, at less cost. That is about as good as it
gets in terms of public policy.
So I really look forward to working with you as you follow
up on Senator Casey's work with respect to elder care. Because
if you look at two of the key crucial health pinnacles for the
future, one is prevention and the other is taking care of
people at home.
And by the way, what we found on this committee is there is
huge interest in America's technology sector, because they too
know that there is an opportunity to get more services that are
compassionate and cost-effective. So I want to work with you as
you follow up with Senator Casey.
Thank you. I thank my colleague.
Senator Lankford?
Senator Lankford. Thank you, Mr. Chairman.
Dr. Shambaugh, I want to ask you a little bit about the
Committee on Foreign Investment in the United States. You would
oversee that, obviously. There is an area that is left out
currently in oversight, and that is agriculture. The Department
of Agriculture is not sitting at the table and not helping to
make some of those decisions. There is a tremendous amount of
investment that is coming from nonmarket economies to the
United States in agriculture.
I want to get your opinion on that, whether that needs to
be included. That becomes a policy issue for us that we have to
be able to correct, but it is also a preference issue for you
as well.
Dr. Shambaugh. Thank you, Senator. I think security of food
and our supply chains there, and the way to make sure that we
are getting food safely from farm to table in the United
States, is incredibly important.
I think honestly, whether the Department of Agriculture
should be part of CFIUS or not is a question for Congress. It
is not something, certainly, I would want to weigh in on
directly. I can say that I had the opportunity, when I was on
staff at the CEA, to work at times on CFIUS. The professionals
there are incredibly dedicated and take that job incredibly
seriously, and I think would take the input that Congress
thinks they should be taking.
Senator Lankford. Do you think that is a need at this
point?
Dr. Shambaugh. Without talking to the Assistant Secretary
there, or to the terrific staff there, it is a little hard for
me to know to what extent they feel they can get what they need
from the Department of Agriculture under the current setup: by
asking questions.
When it comes to the national security aspects, it was
always, at least in my experience, the intelligence agencies,
the national security agencies, that would brief the rest of
the committee as to whether a transaction was a risk.
They may feel they can get that by just going and asking
the Department of Agriculture, or they may feel it would be
helpful to have Agriculture in the room. I cannot speak to
that.
Senator Lankford. We will follow up in the days ahead. I'd
be interested in your strategy in trying to be able to
coordinate with the executive directors of IMF, World Bank, the
IDB, in trying to be able to get a more consistent policy set,
and to be able to make sure it is consistent with our national
foreign policy. And obviously, I want to deal with some of the
issues of China and how they are trying to affect some of those
entities as well in what they are doing.
What is your perspective on that?
Dr. Shambaugh. I would say--as I think this administration
has often spoken--we are in many ways in a competition with
China. And I do not think that it is strictly an economic
competition around given sectors. I think it is also a
competition for a different vision of how the global economy
should be organized. And I think a large part of that for the
United States is effectively using the international financial
institutions, and the multilateral development banks, because
we see a world where institutions and the rule of law and
transparency and accountability are important.
And to me, those are institutions we should use very
effectively. If I were confirmed to this position, I would take
very seriously my engagement with the executive directors and
try to make sure that we are always carrying out presenting a
good alternate option to engaging with China for countries--
whether it is in loans or other sorts of engagement--to make
sure that that example is always out there of high standards,
accountability, transparency, and really holding to our values
in our economic diplomacy.
Senator Lankford. Yes. With the World Bank--obviously China
has graduated, under their standards, from being a developing
country, yet they are still listed as a developing country.
That time period wanes in about 3 more years at this point, and
they are going to ask for a renewal, without question, on that.
Is that something that should be renewed for China as a
developing country under World Bank standards?
Dr. Shambaugh. My understanding, Senator, is you are
absolutely correct that, based on income levels, China has
graduated past the normal view of a loan-eligible country. I
know it is a complicated process when countries graduate. It
does not happen strictly based on the income cutoff. My
understanding is that back in 2018, the World Bank stated that
they would start moving in this direction. It is something that
I would spend a lot of time on, because I think it is an
important issue.
Senator Lankford. It is an important issue, and China does
not need to stay as a developing country, with special drawing
rights and that kind of authority being given to a country. Do
you think the special drawing rights given to a country should
be given to them so they could then pay back the Belt and Road
Initiative loans to China?
Dr. Shambaugh. I think we would want to make sure that any
funds that are going to poor or emerging market countries are
not being used to simply rechannel them towards China. And so
that is something we would pay attention to.
Senator Lankford. I would agree on that. That is one we
need to be able to engage in.
This tax conversation that is happening--you had used the
term ``less of a race to the bottom'' earlier on tax policy. My
concern is twofold. One is, other countries seem to be more
informed of what is happening in the negotiations than Congress
is, and Congress is going to have to speak on this. We get to
read about the negotiations. Other countries actually get to
participate in them. I think that is a problem, and that needs
to be corrected with consultation and information, not after
the fact.
The second part of this is, this race to the bottom on the
tax piece has a huge gap in it that is not just the tax rate on
it, but it is also that other countries that subsidize are
excluded from that. So it is not really a race to the bottom on
tax policy, it is a race to the bottom on subsidies.
So there is a very large problem in all of this negotiation
that seems to be left out of this. I am trying to figure out
where this is going to go, and if you agree that basically the
current policy that we have in the United States on credits--
other countries just get to not count their subsidies, but our
credits are counted. So you are talking about trying to change
American tax policy to match more of Europe's tax policy, when
they get a chance to waive it.
Is that a problem? Because it looks like a very different
race to the bottom is happening.
Dr. Shambaugh. Senator, I would say that I am not in the
building yet, and so obviously I was not part of the
negotiations, so I also do not know a great deal about some of
the specifics yet.
In terms of the question of subsidies versus different
types of credits, all I would say is, if I were confirmed, I
would certainly intend to consult with and engage with Congress
carefully on the issue to make sure that any agreement that is
being struck, or any details that are being finalized, are
being done in a way that makes sense with other policies
Congress has in mind.
Senator Lankford. Well, just keeping Congress engaged in
that would be helpful.
Thank you, Mr. Chairman.
The Chairman. I thank my colleague. And I just want him to
know that I look forward to working with him on this whole
issue of global taxation. Clearly what we are looking for is a
way to ensure that we are competitive in these top global
markets, so that we promote job creation. And, as you heard me
say, what I am particularly concerned about is tax avoidance,
because we have seen, particularly with AbbVie--and I am
concerned about the possibility of Merck and Abbott doing
exactly the same thing--some really flagrant cases. So I
appreciate my colleague being interested in this whole area,
and I look forward to working with him.
My colleague, Senator Cortez Masto.
Senator Cortez Masto. Thank you. Hello. Welcome.
Congratulations.
Let me--is it Haffajee? Did I pronounce it right, Doctor?
Thank you. Thank you for your work with ASPE to date, as Acting
Assistant Secretary as well.
Let me talk a little bit about kids' mental health. I
appreciate how much attention ASPE has paid to the mental
health challenges that so many families are facing today. Every
time I go home I hear from Nevadans struggling to find services
that will meet their needs, or the needs of their loved ones.
ASPE's work helps us to quantify those issues so that both
the administration and Congress can move to address them. One
report explores child and adolescent mental health during
COVID-19 and provides considerations for schools and early
childhood education providers.
Can you talk a little bit about how ASPE works with other
agencies, both at HHS and across the government, to share the
findings from your work?
Dr. Haffajee. Thank you, Senator Cortez Masto, and that is
a great question.
And, as you know, youth mental health has been so important
for a long time, but also particularly during COVID-19, and it
is something that I am personally extremely invested in. You
know, I think it is really important for coordination within
HHS and across the Federal Government on this issue. For many
children, some of the issue is identifying mental health and
making sure that services are available in the settings where
they will receive them--things like making sure that services
are available in schools and other settings where we are
identifying risk factors early. And so ASPE works intimately
with the Administration for Children and Families, along with
other sister agencies, to make sure that the studies that ASPE
does are important to questions that they want answered. And
then, ASPE makes sure that those results are available, both
within government and to bodies like this committee. And I
would commit to doing so as much as possible, were I to be
confirmed.
Senator Cortez Masto. Thank you. I would hope so, because
clearly this idea, for me, of bringing essential resources into
my community requires Federal agencies, everybody to work
together and coordinate and get outside of their silos, quite
honestly, and just make sure we are focused, particularly when
it comes to our children's mental health, but in general
behavioral health and mental health services.
Let me follow up on that, because I know this coming
Saturday, which is July 16th, marks the launch of 988, the
National Suicide Prevention Lifeline. For the first time, we
know that assistance for those in mental health crisis will be
just 3 digits away.
Here is my biggest concern: I think it is great we have
that hotline, and we are working to make sure we have people to
staff it. But if we do not have services for them to be
referred to, we are going to be doing a lot of disservice to so
many in need.
So I know that more needs to be done to connect callers to
services for acute and ongoing needs. I am hoping that you can
talk a little bit about the work ASPE has done thus far in this
space, and are we prepared for it? Or what do we still need to
do to address those essential services where there is a gap in
services?
Dr. Haffajee. Yes, thank you for the question and for your
work on mobile crisis in the past, and this committee's.
You know, 988 is so important in building on State systems
to respond to a mental health and substance use crisis and
really create a Federal infrastructure to work with States as
well. I know SMHSA has been working very, very hard to make
sure that those services are ready, and to bring to bear the
resources that would be needed.
I think the Safer Communities Act also extends those
resources quite a bit. So all of those are very helpful. ASPE's
role is really to inform with data and evidence what would be
needed, and to help support SMHSA in that.
There are, to my understanding, ongoing evaluations there,
and I would commit to looking at that deeply and making sure
that the implementation is rolled out as smoothly as possible,
and that we are continuing to evaluate what else is needed.
Senator Cortez Masto. Right. Thank you. Thank you.
Dr. Shambaugh, let me talk to you a little bit about 301
tariff exclusions. And again, also to you, congratulations.
I have a company in my State, it is Haas Automation, and
the company is expanding domestic production in Nevada. It is
one of the few domestic computer numerically controlled machine
manufacturers remaining in the United States. And I think, like
all of my colleagues, we all believe that maintaining a strong
domestic source of these CNC machines is crucial for both the
economy and domestic security.
Haas requires an extraordinary amount of cast iron castings
to make CNC machines, an amount that far exceeds what is
domestically capable of being produced by U.S. foundries and
non-Chinese sources. Therefore, China is currently the only
source that can produce the necessary volume of quality
castings.
Because the imported castings are of Chinese origin, they
are on List 3 of the section 301 tariffs. And this company has
been denied six different exclusion requests, without
explanation, but was able to use granted exclusions from other
sources. And as of August 2020, those exclusions expired and
all requests for extensions were denied without explanation.
I absolutely support the Senate's SECRETS bill that would
direct USTR to open a new exclusion process and follow certain
transparency and accountability guidelines when considering
petitions. If confirmed, you would have a role in international
economic diplomacy, specifically trade and China's impact on
our domestic supply chain. Haas is just one example of domestic
manufacturing being impacted by China's strong hold on our
supply chain.
How do you plan to lead Treasury's engagement on trade
negotiations, particularly in the areas of investment and
supply chains?
Dr. Shambaugh. Thank you, Senator. I would say with regard
to the specific issue around 301 exclusions, that would
certainly sit more with USTR. But around the broader issue of
the 301 tariffs that are in place, I think that is one area
where Secretary Yellen has talked about the fact that these
tariffs--many of them were put in place as a specific response
to specific Chinese actions, and I think it is incredibly
important to respond strongly to China when they take actions.
Some of the tariffs, though, it seemed like they were a bit
more of a back-and-forth with China that maybe had less of a
strategic orientation to them. And so, I think looking
carefully at which of these tariffs should be at what level, as
the economy has changed since they were put in place, is an
important issue.
I think, more broadly, trying to make sure that we can do
what we can to have sufficient sourcing for supply chains--
partly in the United States but also across a range of
countries, so that we are less vulnerable to shocks with
regards to a particular country--is a really important goal for
us. To try to make sure our supply chains are more resilient in
the face of shocks, I think would make us all much better off.
Senator Cortez Masto. Thank you.
The Chairman. I thank my colleague. And as usual, my
colleague really hits the key challenge on that last point on
trade, because, of course, we want tough trade enforcement, but
we also want market access. We want, for example, companies
like yours to be able to get answers. So I thank my colleague,
as usual, for hitting a key point.
Next up is Senator Thune.
Senator Thune. Thank you, Mr. Chairman. Welcome to both of
you. It is good to have you here.
Dr. Haffajee, congratulations on your nomination, and
thanks for your service at HHS to date. I believe this was
covered in your staff interview, but I want to be sure to bring
it up on the record.
As policymakers, we are evaluating long-term telehealth
policies for when the public health emergency is over. It would
be helpful for the agency to be able to provide Congress data
on utilization trends, including by modality, such as audio-
visual and audio-only, as is currently permitted now.
Is this something that HHS could commit to doing, if you
are confirmed?
Dr. Haffajee. Thank you for the important question, Senator
Thune. And you know, telehealth has been so important during
the pandemic. We have really learned so much already, but we
need to continue these evaluations as well.
ASPE has done a fair amount of work on telehealth
utilization across payers, across populations, and some by
modality, as much as we can identify that, and shown vast
increases, but also some disparities that need to be addressed
as well.
And so, yes, I would commit to continuing to evaluate that,
and I think the modality issue is very important, as you know.
Senator Thune. Thank you.
When discussing the Supreme Court's decision to overturn
Roe v. Wade, Secretary Becerra recently stated, and I quote,
``If there is something that we can do, we will find it and we
will do it at HHS,'' end quote.
If confirmed, what role do you expect you might play in
finding something that HHS can do?
Dr. Haffajee. Thank you for the question, Senator Thune.
HHS is committed, with reproductive health services and all
health and human services, to meet the needs of beneficiaries,
but also to follow the law. And I would commit to doing both.
ASPE's role really is to support, if asked by the Secretary for
any data and evidence on these issues.
Senator Thune. So, just to follow up that, if you would not
be directly involved in a response, you do anticipate that the
office would be involved in future efforts to conduct research
to support HHS's pro-abortion policy?
Dr. Haffajee. Thank you for the question. Again, if asked--
this has not been a major area of ASPE's focus in the past--but
if asked, we would look into issues like access, you know, what
the data actually says about that, to inform decisions.
Senator Thune. Dr. Shambaugh, on April 8th of last year you
wrote a piece for Brookings titled, and I quote, ``Don't
Overreact to Inflation Data This Spring,'' end quote. The
average inflation rate in March of that year when the American
Rescue Plan became law was 2.6 percent. The following month,
the inflation rate was 4.2 percent.
Since that time, U.S. inflation has skyrocketed to 8.6
percent, which is a 40-year high. Food, gas, and shelter have
contributed to some of the biggest price increases, and
tomorrow's Consumer Price Index figures could be even higher.
Behind these historically high inflation numbers are
Americans who are experiencing real financial challenges,
particularly the less fortunate among our society. The question
is, do you expect U.S. inflation to continue to increase, and
how long do you expect an elevated level of U.S. inflation to
be the norm?
Dr. Shambaugh. Thank you, Senator, for the question. I
guess, in terms of what do I expect from inflation, I would say
recent inflation that we have seen, say in the last 6 months, a
great deal of it has been a response to Russia's invasion of
Ukraine. In terms of what we have seen in commodity markets in
particular, and in energy markets, those things seem to be
priced in. So I think, on average, many economists, at least
every forecast I have seen, expects to see inflation start to
come down.
The piece you referred to was actually talking about an
issue that I believe relevant here, which is that we typically
measure inflation as the change over 12 months. And back then
we were worried about the fact that the 12 months ago would
have been the peak of the pandemic, and so the data was going
to look very odd for a little bit.
I think in terms of what we expect to see with inflation
going forward, the same issue will be there, which is, there
were spikes in energy and commodity prices at the start of the
Russian invasion. Those will sit in the 12-month inflation data
for a considerable amount of time still.
Senator Thune. Well, let me just, because I think--with all
due respect, South Dakotans, and I would imagine most
Americans, have literally had it up to here with inflation. And
I do not think they believe that the Biden administration is
taking it seriously. And to your point, energy is a perfect
example of that. And I think there is a direct correlation
between policy decisions made by the administration and what
the American people are experiencing at the pump. And I would
argue the same thing with respect to spending and taxing. And
we are talking now about another spending and taxing proposal.
To the degree that Congress has something to say about fiscal
policy, it seems to me that that is the absolutely wrong
prescription at a time when we are trying to get inflation
under control. With $2 trillion in spending last year--and I
just mentioned the statistics--we went from 2.6 to 4.2 to 8.6.
It is clear that the supply and demand are out of equilibrium.
A lot of that has to do with energy and the shutdown of
American energy production--and I think the spending and tax
regulatory policies of the administration. So I would just urge
you to take a look at this with the utmost seriousness, because
I know the American people are, and it is affecting them in a
very direct way, and their pocketbooks, on a daily basis.
Thank you, Mr. Chairman.
The Chairman. Thank you, Senator Thune.
Senator Daines?
Senator Daines. Mr. Chairman, thank you.
Two weeks ago, the Supreme Court issued a landmark decision
to return the power back to the people and their elected
representatives to enact laws to protect life. Since that
ruling, I have been disappointed by ongoing efforts by the left
to promote abortion on demand. One of the most outrageous
proposals has been the use of Federal lands to set up abortion
clinics to circumvent State law. When asked about this
recently, Secretary Becerra responded, and I quote, ``Every
option is on the table.''
I believe that our public lands should be life-giving to
Americans, not life-taking.
A question for Dr. Haffajee. If confirmed, you will be
responsible for advising Secretary Becerra on policy
development as well as strategic planning. Do you think the
Federal Government should allow the building of an abortion
clinic on Federal lands?
Dr. Haffajee. Thank you for the question, Senator Daines.
Here again, HHS is committed to providing health and human
services to all populations, including reproductive health
services.
I think that may be a legal question better left to OGC and
other colleagues. Again, ASPE's role would be to support with
data and evidence as asked.
Senator Daines. But what is your view on that? You are
going to play--I mean, you are going through this process
because, if confirmed, you are going to have a very important
role of advising Secretary Becerra. Do you think the Federal
Government should allow the building of an abortion clinic on
Federal lands?
Dr. Haffajee. I think to me, it again comes down to both
the law and the data and evidence around what is needed for
different populations. So I am not sure that my personal view
would be as relevant there, and I really do defer back to, what
does the science say? What do the data and evidence say?
Senator Daines. So you are saying it is possible if the
data and evidence suggested it, that should be done?
Dr. Haffajee. I think understanding what localities and
States, what the laws are there, what those populations need,
and then making sure that those services are available, would
be very important.
Senator Daines. So, you are open to the idea?
Dr. Haffajee. I--I would have to get back to you on that.
Senator Daines. You can get back to me now. [Laughter.] How
about a national park? Should that be an option on the table?
Dr. Haffajee. I mean, ultimately, again this is going to be
the Secretary's decision----
Senator Daines. But you are going to play an important role
there. I mean, you cannot just say--you will be, if appointed
and confirmed, you are going to be in a very important advisory
capacity here. So your opinion really matters.
Dr. Haffajee. Yes. I appreciate the question and the
importance of ASPE's role. You know, I do think that, again,
here I would look to the data, try to inform what populations
need to meet their health and well-being needs, and then leave
it to the Secretary to make those decisions.
Senator Daines. But you are open to the option, it sounds
like?
Dr. Haffajee. [Laughter.] I mean----
Senator Daines. You are not saying ``no''?
Dr. Haffajee. To be honest, I have not looked deeply enough
into that issue to have formed a strong opinion.
Senator Daines. After President Biden signed an executive
order last Friday to promote abortion, he said yesterday that
he is considering declaring a public health emergency on
abortion access.
Dr. Haffajee, you wrote an article in The New England
Journal of Medicine titled, ``What Is a Public Health
Emergency?'' where you raised concerns about the overuse of
emergency powers. You wrote, and I quote, ``There is also an
instrumental reason to be concerned about the overuse of
emergency powers. If this crucial tool is used too readily,
public health officials may find themselves like the boy who
cried wolf. The warnings about emergencies may go unheeded.
Moreover, the public may lose trust in health officials, which
may result in a loss of political legitimacy as well as a
backlash about public health laws more generally.''
Dr. Haffajee, do you hold those same views today?
Dr. Haffajee. Thank you for the question, Senator Daines;
and, yes, I do. I do believe, as both a lawyer and a public
health researcher, that we need to think about, when we are
using powers, that they are needed----
Senator Daines. Do you think----
Dr. Haffajee [continuing]. And that they are----
Senator Daines. Do you think it is an abuse of emergency
authority for President Biden to declare a public health
emergency on abortion?
Dr. Haffajee. Again, that would be up to the Secretary and
the President to make those determinations.
Senator Daines. But I am asking you what you think of it.
You wrote very eloquently about your concerns over the use of
emergency powers. So do you think it was an abuse of authority
when he declared this a public health emergency?
Dr. Haffajee. I thank you for the question. I think, here
again, I think about, does it meet the criteria for a public
health emergency; is this an urgent public health need; and
really are these powers going to address any of the problems
that are trying to be solved? And so again, ASPE would help to
inform, with data and evidence, but ultimately that would be a
secretarial or presidential decision.
Senator Daines. Thanks, Mr. Chairman.
The Chairman. Thank you, Senator Daines.
Senator Whitehouse?
Senator Whitehouse. Thank you, Mr. Chairman. It is good to
be back.
Dr. Shambaugh, if I could ask you a couple of questions
about the international corporate tax agreement that Secretary
Yellen helped negotiate. First off, do you know what a race to
the bottom is?
Dr. Shambaugh. Yes, I do.
Senator Whitehouse. Describe what a race to the bottom is.
Dr. Shambaugh. With regards to corporate taxation?
Senator Whitehouse. Just generally, but sure, if you wish.
Dr. Shambaugh. In anything, the race to the bottom idea is
that countries might feel a need to continually lower standards
or tax rates to try to attract firms back and forth from one
another so that you wind up with very low corporate tax rates,
or very low labor standards, or something like that.
Senator Whitehouse. And corporations can game that system
because, actually, getting themselves into a particular tax
jurisdiction does not require a whole lot more than just filing
legal papers. Correct?
Dr. Shambaugh. That is right. And especially because they
can book income in places without necessarily moving that much
activity, depending on how they use transfer prices.
Senator Whitehouse. And the international corporate tax
agreement that Secretary Yellen helped negotiate would stem the
race to the bottom in international corporate tax rates, would
it not?
Dr. Shambaugh. It would. It would provide a global minimum
tax so that firms would be paying taxes on income regardless of
if they have moved profits to a different destination.
Senator Whitehouse. And if the destination country does not
charge the tax, they still have to pay it and it goes to the
compliant countries, does it not?
Dr. Shambaugh. That is right. There is what I think is a
somewhat creative policy choice to put in an untaxed profits
rule that would allow countries that have put in place a global
minimum tax to go after, in a sense, the revenue from countries
that are not putting that policy in place. And so it would--it
is what economists would call kind of a self-enforcing
mechanism to try to get everyone else to join.
Senator Whitehouse. And the incentive to destination
countries to cheat on the international corporate tax program
is dissipated if the tax is going to be collected anyway. They
are just not going to get it.
Dr. Shambaugh. That's right. There is less of an incentive
to have low tax rates for a country, and there is less of an
incentive for a firm to try to move to a low-tax destination.
Senator Whitehouse. And in terms of competitiveness, we
hear the companies that would like to enjoy little, no, or
negative taxation, doing a lot of complaining about actually
having to pay taxes. And one of the arguments that these big
multinationals make is that it would interfere with their
competitiveness.
I come from Rhode Island. We have a lot of small businesses
in my State. And one of the things that I see is, those small
businesses are at a huge competitive disadvantage against big
multinationals because those small businesses actually pay
taxes. They do not have the size or the legal staff to go out
and reincorporate themselves in foreign countries and go
through all the machinations to hide from tax paying. So at the
end of the day, the big multinationals pay no taxes when
competing with American companies that pay taxes. And it seems
to me that that creates a significant competitive disadvantage
for smaller American businesses.
Is that a sensible way to look at the competitiveness
problem?
Dr. Shambaugh. I think it is absolutely fair to say that
firms that do not have overseas activities do not have the same
options in terms of what they can do with taxes. I also think--
again going back to your point about it being a global minimum
tax. Other countries are now employing a global minimum tax
themselves, so the argument that it is a disadvantage for U.S.
firms if the United States employs one, that starts to fade,
because----
Senator Whitehouse. Particularly if the tax gets charged
even in cheating or noncompliant countries, and they just do
not get the revenue. Then it really is an across-the-board
floor below which the race to the bottom has no real reason to
go.
Dr. Shambaugh. I believe that is correct.
Senator Whitehouse. Well, thank you. It is helpful to have
you clarify that.
Dr. Haffajee, I just wanted to offer a thought to you as we
get going, as we are going to continue to talk about this, that
I have been kind of a maven of delivery system reform, of
trying to reduce the actual cost of providing care by getting
away from fee-for-
service, and following what in the Obama era was called the
triple aim, and so forth. And it seems to me that HHS has sort
of lost sight of that aim. It is no longer anything that
anybody talks about very much. It is hard work trying to get
people to pay attention to opportunities to proceed that way.
And I would just like your thoughts on the importance now,
particularly as we look at Medicare, cost, insolvency, of
following the triple aim.
Dr. Haffajee. Thank you for the question, Senator
Whitehouse. I fully agree with addressing the costs and long-
term continuation of our programs. Medicare insolvency, as you
note, is a top priority, to make sure these programs are
available for beneficiaries, and as high-quality as they can
be.
And so I appreciate your work on ACOs and other delivery
system reforms in the past, and I look forward to working with
you more on those ideas.
Senator Whitehouse. Thank you. And as the chairman notes,
this work does not cut benefits for beneficiaries. This work
actually very often expands benefits for them and meets them
where they are and helps them live healthier lives.
So it is a real win/win, and I appreciate the chairman's
indulgence, and also his interest and support in this over many
years.
The Chairman. You will have it, Senator Whitehouse.
And just on your earlier point with respect to the global
taxation issue--because we have been talking about this with
Dr. Shambaugh over the course of the morning--your point had
not been made yet that American small businesses that pay their
fair share of taxes are disadvantaged compared to, for example,
what the staff found last week with respect to AbbVie, the
giant drug company, where they basically make all their sales
in the United States, and they book their profits elsewhere.
And that of course is why it is so important that we also
get answers from AbbVie and Merck, and they have been
stonewalling our investigators, which raises a question in my
mind whether they are up to the same sort of thing.
But I look forward very much to working with you, and I
thank you especially for making that point, because mine is a
small business State. We are overwhelmingly small businesses.
And you put it in focus about what it means to American small
businesses that pay their fair share. They are disadvantaged by
that, and I thank you for it.
Senator Warren?
Senator Warren. Thank you, Mr. Chairman.
American families are getting hammered by soaring prices,
while giant corporations are raking in huge profits. And one
big reason for that is that corporate lobbyists have rigged our
tax code to reward offshoring.
Now, offshoring means fewer good jobs for American workers.
It also means overseas supply chains that keep breaking on
American consumers.
Professor Shambaugh, if confirmed, you would be Treasury's
top international official leading work on investment issues.
So today I wanted to talk with you about how our tax code
disincentivizes investments in U.S. manufacturing.
I would like to talk about AbbVie, the company that the
chairman just raised, a big pharma company known for jacking up
drug prices and exploiting tax breaks for offshoring.
Now, AbbVie has manufacturing in Ireland, where it pays
just 12.5 percent of its profits in taxes. Now, the U.S. has
international minimum tax rules that are supposed to prevent
the abuse of tax havens, topping up AbbVie's tax bill if it
pays too little overseas. But giant loopholes in this minimum
tax mean that AbbVie still gets a huge tax break for investing
in Ireland instead of the U.S.
Professor Shambaugh, do you agree that our tax code should
level the playing field for U.S. manufacturing and incentivize
investments in the U.S. rather than in tax havens?
Dr. Shambaugh. I would agree that we would want our tax
code to encourage investment in production in the United
States.
Senator Warren. Okay; so let's dive into that a bit more. I
agree with you, but tax loopholes are rewarding AbbVie's
offshoring of drug manufacturing to tax havens. But here is the
part I want to focus on. It gets worse by including tax
incentives to offshore to high-tax countries as well. So take
Germany, where AbbVie also has a manufacturing facility and the
corporate tax rate is about 30 percent, much higher than the
U.S. rate of 21 percent.
You would think that would mean investing in the U.S. is
more attractive than investing in Germany. But because our
international minimum tax rules look at all foreign taxes in
totality, paid together, AbbVie can use high taxes in Germany
to shield its low-tax Irish income. AbbVie would not get the
same benefit for paying U.S. taxes. So it is actually
incentivized to invest in high-tax Germany rather than
investing here in the United States.
So, Professor Shambaugh, when you think about our
international investment policy, does it make sense to invest
in rewarding investing in Germany over investing in the United
States?
Dr. Shambaugh. I think we, as a country, do better when
companies are choosing their location based off the skills of
the workers and productivity of the economy and not gaming tax
rates.
Senator Warren. All right. So look, I agree with you on
this. Our international tax rules are broken, and incentivizing
companies like AbbVie to invest everywhere outside the United
States--low-tax, high-tax--makes no sense at all.
So, would it surprise you then that AbbVie has used these
broken rules to slash its effective tax rate in half, and that
it books 99 percent of its income overseas?
Dr. Shambaugh. I guess in some sense it would not surprise
me, based off some of the things I have heard the chairman say
so far today, but it does not sound like the way we want our
tax system to function.
Senator Warren. So would you like to see changes in the
system?
Dr. Shambaugh. I think having a global tax system that
would not encourage booking profits in tax havens would
definitely be better for the country.
Senator Warren. I know you have done work on this, and I
appreciate the work you have done. I also want to say how much
I appreciate the work that Chairman Wyden has done on this,
long and consistently.
We just have to recognize that corporate lobbyists have
rigged our tax code for big pharma, and that it is
incentivizing offshoring when we need to be investing in good
jobs and secure supply chains here at home.
This is why Secretary Yellen has negotiated a historic
minimum tax agreement, and why congressional Democrats are
working to end big pharma's overseas tax breaks, and to lower
prescription drug prices.
I know that corporate lobbyists are kicking and screaming
because they like a situation where their companies do not have
to pay taxes, and they like to be able to continue to raise
their prices. But our job is to put American workers, American
small businesses, American consumers first. And we need to
reward investments here in America, instead of everywhere else
in the world.
So thank you very much, both of you, for your work.
The Chairman. Thank you, Senator Warren. That last point in
particular, it is really a question of, whose side are you on?
Are you on the side of the consumers and small businesses, or
are you just going to say the big guys can continue to practice
tax avoidance?
I would also note--and I think my colleague knows a little
bit about the roots of this--that Senator Brown, Senator
Warner, and I, working with virtually every member of our
caucus, the Democratic Caucus, and the Finance Committee, put
together an agreement that embodies most of these kinds of
thoughts.
So it is pretty clear that you can get agreement across the
political divide on these tough issues when you work together
and point out, whose side are you on? Because right now the
consumers and small businesses in America, as my colleagues
point out, are getting the short end of the stick. And I
appreciate that.
All right, let's see. Do we have any--okay, no Republicans.
Dr. Shambaugh, just one question. It has been a long
morning, and I appreciate both of you and your patience.
Apropos of this whole issue of what you will be doing in the
future, if confirmed, you will be working at the G7, the G20,
the International Monetary Fund--my wife always says, ``What
are all these initials?'' But the point is, the key economic
institutions with respect to how Americans are going to get
effected.
And I wanted to ask your thoughts, apropos of isolating
Russia and ways in which we can get additional sanctions
against Russia without any additional pressure on the hit that
American consumers are already taking at the gas pump. I mean,
we have to get relief for them. We have been working on our Big
Oil Tax Fairness bill, which essentially gets at the question
of, hey, why are we in effect giving breaks for stock buybacks,
rather than giving breaks for the mom who is trying to afford
gas at the pump to take her kid to child care?
So tell us how you would approach this question of
isolating Russia with respect to sanctions without getting even
a bigger hit for Americans who are getting clobbered at the gas
pump.
Dr. Shambaugh. Thank you, Mr. Chairman. I think the general
policy that I have heard expressed, coming from both Treasury
and the White House on this issue, has been that the goal is
always and everywhere to inflict the most amount of damage as
possible on the Russian economy in response to this terrible
invasion, and at the same time minimize the damage to the rest
of the world and to the United States in terms of economic
fallout.
I know a number of steps have been taken already. Many more
continue to be investigated in terms of how to limit Russia's
revenue, in particular from energy exports, while at the same
time not disrupting energy markets any more than is necessary.
So I think there is constant work that can be done updating
those things, as well as trying to limit what Russia can buy
with that revenue. And I think that has been crucial as well,
that if they cannot buy the parts they need for their war
machine, even if they are selling oil abroad, that limits what
they can do. And so I think there is a great deal of work that
is constantly being updated, because these are things that are
complicated processes to engage in. But it is work that I would
certainly be seriously engaged in, and obviously in contact
with the committee, if I were confirmed.
The Chairman. Thank you.
One last question. You have spent a lot of time looking at
the issues of currency manipulation. Currency manipulation has
long been of interest to members of this committee, both
Democrats and Republicans, because currency manipulation abroad
in effect almost acts like a subsidy providing a country's
home-grown producers with an unfair advantage over American
workers and American businesses--also in my State, which
depends deeply on exports. About one out of three jobs in
Oregon revolves around trade. The trade jobs pay better than do
the non-trade jobs. We do not want to have a policy with
respect to currency that tilts the playing field against U.S.
exports.
Now, Treasury works bilaterally with countries to resolve
currency manipulation issues, once they have been identified in
your report. So this looks to me like an area that might be
beefed up. You have Indo-Pacific issues, obviously the Americas
Partnership for Economic Prosperity, the traditional forums--I
just rattled off some of them. What are your thoughts about
strengthening the rules to protect the American small
businesses and consumers against currency manipulation?
Dr. Shambaugh. Thank you, Senator. When it comes to
currency manipulation, Congress has been very explicit in terms
of what the rules are that Treasury should use in terms of
defining a country that is a currency manipulator, and
personally, I actually think it is very helpful that those
rules are explicit and not too abstract, because it makes it
clear it is not a political decision by Treasury. They are
following a set of rules that Congress has given us.
And if I were confirmed, I would take those rules very
seriously. But to your point about bilateral consultations, as
well as some of the global forums, I think whether a country
is, in any 6-month period, labeled a manipulator or not, that
does not mean that Treasury does not still have a lot of work
to do engaging with those countries around their currency
policies. It is something that I would expect would occupy a
great deal of my time, to be working with colleagues in other
countries to make sure that their currency policies are not in
any way going against commitments that most G7 and certainly
G20 countries have made, and really all countries that are a
member of the IMF have made in terms of not using their
currency in a way to gain an unfair trade advantage. It is
something I take very seriously.
The Chairman. Okay.
It has been a long morning. Thank you both. We have had a
lot of questions posed to both of you.
Let me also say to colleagues, I support these two
nominees, because I think they are very well qualified. For the
information of Senators, questions for the record are due at 5
p.m. this Friday, July 15th. And I thank you all. It has been a
long morning with lots of questions.
And with that, the Finance Committee is adjourned.
[Whereupon, at 11:32 a.m., the hearing was concluded.]
A P P E N D I X
Additional Material Submitted for the Record
----------
Prepared Statement of Hon. Mike Crapo,
a U.S. Senator From Idaho
Thank you, Senator Wyden. Welcome, Dr. Shambaugh and Dr. Haffajee,
and congratulations on your nominations.
Dr. Shambaugh, in terms of tax issues, the OECD negotiations could
have significant international economic consequences, and this
important position could be involved in advising on the economic
effects of the OECD agreement and projected implementation.
I hope you will share your insights on the effect of the OECD
agreement on U.S. businesses and U.S. revenue and any other analysis of
the potential effects of the OECD agreement. Additionally, I look
forward to hearing your perspectives on the current international
economic environment, including the interplay between fiscal policy,
energy policy, and the 40-year high inflation which is afflicting
Americans today.
Turning to Dr. Haffajee, you have written extensively on the health
impacts of marijuana legalization, opioid addiction treatment, and
public health emergencies, among other issues. Please share your
perspectives on these issues, as well as how, should you be confirmed,
you will challenge the administration to evaluate programs in these and
other areas fairly and with close attention to what the facts indicate,
rather than what political agendas might dictate.
I remind both nominees that the success of the Departments of
Treasury and Health and Human Services depends on a strong partnership
with Congress, which includes transparency and consultation with our
offices. This is true not just because of the authority Congress has
delegated, but because members are well positioned to understand the
needs of our constituents.
I ask both nominees today to confirm that they will be attentive to
members of this committee, and indeed the broader Senate, should they
be confirmed.
I look forward to hearing the nominees' testimony and their
responses to questions.
______
Prepared Statement of Rebecca Lee Haffajee, Ph.D., Nominated to be
Assistant Secretary for Planning and Evaluation, Department of Health
and Human Services
Chairman Wyden, Ranking Member Crapo, and members of the committee,
thank you for considering my nomination to be the Assistant Secretary
for Planning and Evaluation (ASPE) at the U.S. Department of Health and
Human Services (HHS). I am honored by President Biden's decision to
nominate me for this role and, if confirmed, look forward to serving
under his and Secretary Becerra's leadership.
Before I begin my testimony, I would like to thank my family. With
me today is my husband, James Drabick. And supporting me virtually are
my two young children, Samuel and Annabelle, as well as my father and
sister, Drs. Charles and Jessica Haffajee. With me in spirit is my
mother, Dr. Anne Haffajee. I would not be here today without their love
and support.
My name is Rebecca Haffajee, and I am a lawyer, researcher, and a
policy analyst. But before I'm those things, I'm a daughter.
Both my parents were first-generation Americans, and both were
clinicians. Growing up watching them work in health care inspired my
passion for improving health and well-being outcomes for all Americans.
My father is a practicing cardiologist. He loves his patients and
his patients love him. Watching him be the best physician he can be for
his patients and often saving their lives taught me how critical
patient-centered care is to producing positive health outcomes.
My mother was a renowned dental researcher. She is also my biggest
inspiration. My mother not only lovingly raised a family, but she also
excelled in her career--all while battling cancer throughout much of
her life. My mother's long-term cancer battle taught me how important
it is to ensure we're doing what's best for people when they're
experiencing health challenges.
Though I began my professional career in health care law, my
passion lies in using the research process to implement policy change
that improves people's health and well-being. I spent time in East
Africa working in public health on research around care for children
and mothers affected by HIV/AIDS. For over a decade, I focused on U.S.
health policy research, first as a professor at the University of
Michigan and then as policy researcher at the RAND Corporation. I'm
passionate about my work because I believe that changes made at the
Federal, State, and local level have meaningful impacts when research
informs policy.
While many in government and across the country are not familiar
with ASPE, its work changes lives. Researchers at ASPE work to ensure
the President, Secretary, and leaders across HHS have the best
available data and evidence when they are making decisions and
measuring the impact of their decisions to improve the country's health
and well-being.
For more than a year now, I've worked in ASPE, serving as Acting
Assistant Secretary. I've had the opportunity to lead much of the
agency's most rigorous research and strategic planning. My
understanding of the nuts and bolts of the agency--and the Department
and administration at large--as well as the relationships I've built
will serve me well in the role, should I be confirmed.
If confirmed as the Assistant Secretary for Planning and
Evaluation, I would work to ensure that ASPE is focused on using the
best research and data to expand health-care access, strengthen
behavioral health, and advance equity.
Expanding Health Care Access: We know from our work in ASPE that
expanding access to health care is critical to our Nation's health and
well-being. When people don't have health-care coverage or when the
coverage they do have isn't high-quality, we all suffer the
consequences.
Strengthening Behavioral Health: Mental health and substance use
challenges have been exacerbated by COVID-19. But even before the
pandemic, this area of health was underemphasized and underfunded. ASPE
can play a critical role in strengthening our Nation's behavioral
health infrastructure and has demonstrated this already through its
work on the administration's Overdose Prevention Strategy.
Advancing Equity: To understand why health inequities exist and how
best to address them, we have to look at their root causes--or the
social determinants of health: income, education, employment, housing,
social support, and transportation. Through ASPE's ongoing social
determinants of health and equity work, we can understand how best to
ensure that those in underserved and under-resourced populations don't
experience gaps in services and supports and are able to live their
healthiest lives.
None of these priorities I have laid out can be achieved without
strong partnership and communication, particularly with Congress and
stakeholders across the health-care sector.
I've learned in my various roles the importance of listening to and
understanding the perspectives of different health stakeholders--
including providers, patients, and governments. These perspectives
inform research agendas, data collected and analyzed, and ultimately,
effective policies.
The research ASPE provides is critical to the work of HHS and
agencies across the Federal Government. If confirmed, I look forward to
continuing ASPE's transformative work to meet the health and well-being
needs of our Nation. Thank you for considering my nomination. I look
forward to answering your questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Rebecca Lee Haffajee.
2. Position to which nominated: Assistant Secretary for Planning and
Evaluation.
3. Date of nomination: May 9, 2022.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: April 18, 1980 in Worcester, MA.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
Fay School, Southborough, MA. Attended 09/1986-09/1995.
Attended freshman year of secondary school (and elementary and
middle school). Diploma received 06/1995.
Saint Paul's School, Concord, NH. Attended 09/1995-05/1998.
Attended sophomore through senior year of secondary school.
High School diploma received 05/1998.
Duke University, Durham, NC. Attended 08/1998-05/2002. Attended
for undergraduate college. Bachelor's degree (magna cum laude)
received 05/2002.
Harvard Law School, Cambridge, MA. Attended 08/2003-06/2006.
Juris Doctorate (JD) degree received 06/2006.
Harvard T.H. Chan School of Public Health, Boston, MA. Attended
from 06/2004-06/2006. Master's in Public Health (MPH) received
06/2006.
Harvard University Graduate School of Arts and Sciences,
Cambridge, MA. Attended from 09/2010 through 07/2016. Doctor of
Philosophy (Ph.D.) degree received in Health Policy (Evaluative
Sciences and Statistics concentration) 11/2016.
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
------------------------------------------------------------------------
Dates of Employment
Employer and Location of Work Position Held (approx.)
------------------------------------------------------------------------
Hart Fellowship Program, Duke Leadership 07/2002-05/2003
University, Moshi, Tanzania Fellowship
(postgraduate)
------------------------------------------------------------------------
Parrot Bar and Grill, Server 06/2003-08/2003
Cataumet, MA
------------------------------------------------------------------------
Harvard Law School, Research Assistant 02/2004-05/2004
Cambridge, MA to Profs. Troyen
Brennan and
Michelle Mello
------------------------------------------------------------------------
United Nations International Legal Intern, Office 08/2004-05/2005
Criminal Tribunal for Rwanda of the Prosecutor
(for summer public interest
fellowship, Harvard Law
School), Arusha, Tanzania
------------------------------------------------------------------------
Ropes and Gray LLP, Boston, Summer Associate 05/2005-07/2005
MA
------------------------------------------------------------------------
Ropes and Gray LLP, Summer Associate 07/2005-08/2005
Washington, DC
------------------------------------------------------------------------
Harvard Law School, Accra and Clinical Teaching 01/2006-01/2006
northern Ghana Assistant, Winter
Course in Ghana
------------------------------------------------------------------------
Harvard Law School, Library Research 02/2006-05/2006
Cambridge, MA Assistant
------------------------------------------------------------------------
Physicians for Human Rights, Legal Intern 02/2006-05/2006
Cambridge, MA
------------------------------------------------------------------------
Ropes and Gray LLP, Boston, Law Associate 09/2006-07/2008
MA
------------------------------------------------------------------------
Ropes and Gray LLP, Law Associate 07/2008-08/2009
Washington, DC
------------------------------------------------------------------------
O'Neill Institute for Law Fellow 08/2009-08/2010
National and Global Health
Law, Georgetown University
Law Center, Washington, DC
------------------------------------------------------------------------
Harvard Graduate School of 1st year Ph.D. 09/2010-06/2011
Arts and Sciences, Student
Cambridge, MA
------------------------------------------------------------------------
Harvard T.H. Chan School of Research Assistant 05/2011-08/2011
Public Health, Boston, MA to Prof. Michelle Harvard University,
Mello Cambridge, MA
Head Teaching
Fellow for Prof.
David Cutler
09/2011-12/2011
------------------------------------------------------------------------
Harvard T.H. Chan School of Teaching Assistant 01/2012-03/2012
Public Health, Boston, MA for Public Health
Law course
------------------------------------------------------------------------
Harvard Graduate School of 2nd year Ph.D. 09/2011-06/2012
Arts and Sciences, Student
Cambridge, MA
------------------------------------------------------------------------
Harvard Medical School/ Research Fellow 07/2012-06/2015
Harvard Pilgrim Health Care,
Boston, MA
------------------------------------------------------------------------
Harvard Graduate School of Teaching Fellow for 09/2013-05/2014
Arts and Sciences, Core Course in
Cambridge, MA Health Policy in
Ph.D. program
------------------------------------------------------------------------
Harvard Graduate School of National Institute 09/2013-08/2014
Arts and Sciences (GSAS), of Mental Health
Cambridge, MA Training Grant
recipient
(administered
through this
employer)
------------------------------------------------------------------------
Harvard Graduate School of Ph.D. Dissertation 07/2015-07/2016
Arts and Sciences (GSAS), Candidate (i.e.,
Cambridge, MA last year of
program)
------------------------------------------------------------------------
University of Michigan School Assistant Professor 08/2016-08/2019
of Public Health, Ann Arbor,
MI
------------------------------------------------------------------------
RAND Corporation, Boston, MA Policy Researcher, 09/2019-03/2021
Economics,
Statistics, and
Sociology
Department
------------------------------------------------------------------------
U.S. Department of Health and Principal Deputy 03/2021-present
Human Services (HHS), Assistant Secretary
Washington, DC for Planning and
Evaluation (ASPE)
and Acting
Assistant Secretary
for Planning and
Evaluation
------------------------------------------------------------------------
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
Consultant for Michigan Department of Health and Human
Services, 09/2018-08/2019.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g., limited partner, non-
voting, etc.), proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, other business enterprise, or
educational or other institution):
Harvard Yard Child Care Center, Cambridge, MA, Board of
Directors (2015-2016) (unpaid).
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
------------------------------------------------------------------------
Organization Nature of Membership Dates (approx.)
------------------------------------------------------------------------
Johns Hopkins Bloomberg Member of external 2020-2021
School of Public Health advisory council
External Advisory Council on
Opioid Prescribing Laws
Grant Funded by Arnold
Ventures
------------------------------------------------------------------------
AcademyHealth Member of 2015-2021
professional
society
------------------------------------------------------------------------
Society for Empirical Legal Member of 2017-2019
Studies professional
society
------------------------------------------------------------------------
American Society of Law, Member of 2017-2021
Medicine and Ethics professional
society
------------------------------------------------------------------------
Massachusetts State Bar Member of bar 2006-present
------------------------------------------------------------------------
District of Columbia Bar Member of bar 2009-2012
------------------------------------------------------------------------
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
None.
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
2018 Theodore R. LeBlang Distinguished Lectureship in Law and
Medicine, Southern Illinois University School of Medicine,
Springfield, IL.
2017 AcademyHealth Outstanding Dissertation Award at the 2017
Annual Research Meeting, New Orleans, LA.
2017 Walter J. McNemey Research Award, Department of Health
Management and Policy, University of Michigan School of Public
Health.
2017 Health Policy Grand Rounds Seminar Speaker, Richard M.
Fairbanks School of Public Health, Indiana University.
2015 AcademyHealth Student Poster Award at the 2015 Annual
Research Meeting, Minneapolis, MN.
2015 Joan P. Curhan Citizenship Award for the Ph.D. Program
in Health Policy, Harvard University.
2013-14 Public Health Law Research Program Strategic and
Targeted Research Program Dissertation Grant Award, Robert Wood
Johnson Foundation.
2013-14 Health Policy Training Grant Award, National
Institute of Mental Health.
2013 Public Health Law Research Program Junior Scholar Travel
Stipend Award, Robert Wood Johnson Foundation.
2011-12 Petrie-Flom Center for Health Law Policy,
Biotechnology, and Bioethics Student Fellow, Harvard Law
School.
2010-12 Ph.D. Program in Health Policy Pre-Doctoral Training
Fellowship Award, Harvard University.
2009-10 New Alternatives Program Fellow, Ropes and Gray, LLP.
2006 Fulbright U.S. Student Program Fellowship Grantee
(Public Health--South Africa), United States Department of
State.
2006 Frank Knox Memorial Traveling Fellowship Award (Public
Health--South Africa), Harvard University.
2004 Summer Public Interest Funding Award (United Nations
Criminal Tribunal for Rwanda), Harvard Law School.
2004 Best Female Collegiate Soloist of the Year Contemporary
A Cappella Recording Award, 2004, The Contemporary A Cappella
Society.
2002-03 Hart Leadership Fellow (Public Health Research--
Tanzania), Duke University.
2002 Graduation Magna Cum Laude, Duke University.
15. Published writings (list the titles, publishers, dates and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
See attached list.
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
Below is a list of my speeches and presentations during the
past 5 years. Speeches with formal remarks or PowerPoint
materials are noted with an asterisk.
03/17 ``Policy Strategies to Curb the Opioid Epidemic: The
Role of Prescription Drug Monitoring Programs,'' Health Policy
and Management Research Seminar, Indiana University Fairbanks
School of Public Health, Indianapolis, IN (speaker).*
03/17 ``Pandora's Box: The (Unknown) Consequences of
Legalizing Marijuana Use,'' Law Students for Sensible Drug
Policy Seminar, University of Michigan Law School, Ann Arbor,
MI (speaker).*
04/17 ``The Effect of Robust Prescription Drug Monitoring
Programs on Opioid Prescribing Outcomes,'' 8th Annual Empirical
Health Law Conference, Boston University School of Law, Boston,
MA (podium presentation).*
06/17 ``Using the Law to Ramp Up Medication Assisted
Treatment Therapy,'' 40th Annual ASLME Health Law Professors
Conference, Georgia State University College of Law, Atlanta,
GA (podium presentation).*
06/17 ``The Effect of Robust Prescription Drug Monitoring
Programs on Opioid Prescribing Outcomes,'' AcademyHealth Annual
Research Meeting, New Orleans, LA (podium presentation).*
07/17 ``Prescription Drug Monitoring Programs: Policy
Landscape and Best Practices,'' Institute for Healthcare Policy
and Innovation and M-OPEN, Injury Prevention Center Event, Ann
Arbor, MI (speaker).*
07/17 ``The State of Michigan's Opioid Epidemic: Origins and
Impact,'' Council of Michigan Foundations, Ann Arbor, MI
(speaker).*
09/17 ``The Effect of Robust Prescription Drug Monitoring
Programs on Opioid Prescribing Outcomes,'' SAVIR Conference,
Ann Arbor, MI (podium presentation).*
11/17 ``Policy Approaches to the Opioid Crisis,'' USC-
Brookings Schaeffer Initiative for Health Policy, The Brookings
Institution, Washington, DC (panelist).
03/18 ``Monitoring and Regulating Prescribing to Mitigate the
Opioid Epidemic,'' The Institute for Continuing Legal
Education, 24th Annual Health Law Institute, Plymouth, MI
(podium presentation).*
03/18 ``Using the Law to Tackle the Opioid Crisis,'' Theodore
R. LeBlang Distinguished Lectureship in Law and Medicine,
Southern Illinois University School of Medicine, Springfield,
IL (podium presentation).*
06/18 ``Characterizing U.S. Counties with High Opioid
Overdose and Low Medication-Assisted Treatment Supply,'' 41st
Annual ASLME Health Law Professors Conference, Case Western
Reserve University School of Law, Cleveland, OH (podium
presentation).*
06/18 ``Implementation Challenges Related to Medication-
Assisted Treatment,'' AcademyHealth Annual Research Meeting,
Seattle, WA (poster presentation).
06/18 ``Characterizing U.S. Counties with High Opioid
Overdose and Low Medication-Assisted Treatment Supply,''
AcademyHealth Annual Research Meeting, Seattle, WA (poster
presentation).
06/18 ``Characterizing U.S. Counties with High Opioid
Overdose and Low Medication-Assisted Treatment Supply,''
AcademyHealth Annual Research Meeting, Behavioral Interest
Group Meeting, Seattle, WA (podium presentation).*
06/18 ``Building Successful Careers in Academia,''
AcademyHealth Annual Research Meeting, Seattle, WA (podium
presentation and panelist).
06/18 ``Emerging Approaches to Monitoring the Opioid Epidemic
and its Impact,'' AcademyHealth Annual Research Meeting,
Seattle, WA (moderator).
10/18 ``Settling the Score: Maximizing the Public Health
Impacts of Opioid-Litigation,'' Speaker at Facing Opioids
Symposium, Ohio State Law Journal Annual Symposium, Columbus,
OH (podium presentation and panelist).*
11/18 ``Policy Approaches to Addressing the Opioid Crisis,''
Keynote speaker, 2nd Annual Addiction Conference, SUNY Upstate,
Syracuse, NY (podium presentation and panelist).*
12/18 ``Prescription Drug Monitoring Programs: A Response to
the Opioids Crisis,'' University of Michigan Dental School, Ann
Arbor, MI (podium presentation), https://michigan-open.org/
news/article/michigan-open-sponsors-navigating-the-new-and-
improved-maps/ (speaker).*
12/18 ``The Opioid Epidemic: States and Cities Strike Back,''
Speaker/panelist for American Bar Association Webinar
(presentation and panelist).*
02/19 ``State Policy Approached to Addressing the Opioid
Crisis,'' Invited Speaker at Wolverine Caucus, Lansing, MI
(podium presentation).*
04/19 ``The Value of Litigation in Mitigating the Opioid
Crisis,'' 25th Annual Thomas Pitts Lectureship in Medical
Ethics, Medical University of South Carolina, Charleston, SC
(podium presentation and panelist).*
04/19 ``Public Policy and the Opioid Epidemic'' American
College of Physicians Internal Medicine 2019 Annual Meeting,
Philadelphia, PA (podium presentation and panelist).*
05/19 ``Opioids: Policy to Practice'' University of Michigan/
Harvard Summit, Ann Arbor, MI (panelist).*
05/20 ``Government Opioid Litigation: The Reasonable Bounds
of Liability,'' Clifford Symposium, DePaul University College
of Law, Chicago, IL, Virtual (speaker).*
06/19 ``Generic Drug Policy as a Barrier to Opioid Use
Disorder Treatment,'' 42nd Annual ASLME Health Law Professors
Conference, Loyola University Chicago School of Law, Chicago,
IL (podium presentation).*
06/19 ``The Opioid Overdose Crisis: States and Localities
Fight Back Using Litigation,'' Michigania Faculty Forum, Boyne
City, MI (podium presentation).*
06/19 ``Public Health Law Approaches to Addressing the Opioid
Crisis: Intended and Unintended Consequences,'' Michigania
Faculty Forum, Boyne City, MI (podium presentation).*
07/19 ``Congressional Staff Briefing on Barriers to Substance
Use Treatment,'' Cannon House Office Building, Washington, DC
(panelist).
10/20 ``Spicy Debate: X the X Waiver?'' 44th AMERSA Annual
Conference, Virtual (moderator).*
10/20 ``What Makes Opioid Litigation Different from Other
Mass Torts?'' RAND Corporation Institute for Civil Justice
Board Meeting, Virtual (moderator and speaker), https://
www.rand.org/pubs/conf_
proceedings/CFA1137-1.html#what-makes-the-opioid-litigation-
different-from-other-mass-torts.*
11/20 ``An Empirical Look at the Opioid Litigation'' Program
on Regulation, Therapeutics, and Law, Harvard Medical School,
Virtual (speaker).*
06/21 ``Association between Receipt of Opioid or
Benzodiazepine Prescriptions and Risk of Opioid-Related
Overdose and Suicide,'' AcademyHealth Annual Research Meeting,
Virtual (podium presentation).*
06/21 ``U.S. Report on the International Convention on the
Elimination of All Forms of Racial Discrimination (GERO),''
Civil Society Roundtable, Virtual (roundtable participant).*
07/21 ``Opening Remarks,'' ``Opening Plenary,'' and ``Closing
Remarks,'' HHS Evidence Day 2021, Virtual (moderator and
speaker).*
10/21 ``Gap and Opportunities to Address Stimulant Use,''
2021 Cocaine, Meth and Stimulant Summit, Virtual (podium
presentation).*
09/21 ``HHS Drug Pricing Plan,'' HHS Intergovernmental and
External Affairs Stakeholder Briefing, Virtual (speaker).*
09/21 ``Understanding and Addressing Inequities in Human
Services,'' Annual Poverty Research and Policy Forum, Virtual
(speaker).*
10/21 ``Advancing Public Health Research through Data
Science'' IQVIA Research Forum, Virtual (speaker).*
10/21 ``HHS Overdose Prevention Strategy,'' HHS
Intergovernmental and External Affairs Stakeholder Briefing,
Virtual (speaker).*
11/21 ``Closing Keynote on Overdose Prevention Strategies,''
2021 National Overdose Prevention Leadership Summit, Virtual
(speaker).*
12/21 ``Policy Priorities among Federal Agencies and
Foundations,'' State-
University Partnership Learning Network (SUPLN) Fall Meeting,
Virtual (panelist).*
12/21 ``ASPE's Priorities on Prescription Drug Pricing,''
National Academy for State Health Policy (NASHP) Federal/State
Summit on Prescription Drug Pricing, Virtual (panelist).
01/22 ``National Alzheimer's Plan 2021 Update,'' HHS
Intergovernmental and External Affairs Stakeholder Briefing,
Virtual (speaker).
03/22 ``HHS Draft Strategic Plan,'' HHS Intergovernmental and
External Affairs Tribal Consultation, Virtual (speaker).
03/22 ``Strategy to Address Our National Mental Health
Crisis,'' HHS Intergovernmental and External Affairs
Stakeholder Briefing, Virtual (speaker).
03/22 ``Methadone for Treatment of Opioid Use Disorder:
Federal Landscape,'' The National Academies of Sciences,
Engineering, and Medicine, Methadone Treatment for Opioid Use
Disorder: Examining Federal Regulations and Laws--A Workshop
(speaker).*
04/22 ``Elevating the Overdose Prevention Strategy,''
Celebrating RCORP Past and Present: A Look Into the Program's
History, Outcomes and Futures, Virtual (speaker).*
04/22 ``HHS Strategies to Address Behavioral Health
Challenges in the U.S.,'' Center for Health Policy and Media
Engagement Health Policy Leadership Series, George Washington
University, Virtual (speaker).*
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
I believe I am qualified to serve as the Assistant Secretary
for Planning and Evaluation given my extensive training and
practice in law and policy research, all in the domains of
health care and public health. In my legal career, I gained
expertise around and applied the regulatory nuances of Federal
and State health-care law and led large teams to execute
substantial health-care transactions. In my research career, I
have conducted large-scale evaluations of health policies,
including of Federal and State laws and particularly in the
areas of behavioral health and drug policy, and provided
related policy recommendations. In my teaching career, I have
taught and mentored students at various stages in their
educations about health systems, health law, and program
evaluation. Moreover, I have now served as Principal Deputy
Assistant Secretary for Planning and Evaluation (ASPE) for 1
year, and in this role I helped successfully lead the agency to
a highly productive and impactful first year at a time of great
need for our Nation. I have established excellent,
collaborative relationships within ASPE and throughout
government and believe strongly in the mission of ASPE to
provide sound policy recommendations to the Secretary of Health
and Human Services based on the best evidence available on
health and human services topics.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
Yes.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
Any potential conflict of interest will be resolved in
accordance with the terms of my ethics agreement, which was
developed in consultation with ethics officials at the
Department of Health and Human Services and the Office of
Government Ethics. I understand that my ethics agreement has
been provided to the committee. I am not aware of any potential
conflict other than those addressed by my ethics agreement. If
I have any questions arise, I will consult with HHS career
ethics officials.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
Any potential conflict of interest will be resolved in
accordance with the terms of my ethics agreement, which was
developed in consultation with ethics officials at the
Department of Health and Human Services and the Office of
Government Ethics. I understand that my ethics agreement has
been provided to the committee. I am not aware of any potential
conflict other than those addressed by my ethics agreement. If
I have any questions arise, I will consult with HHS career
ethics officials.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
I participated in a panel briefing organized by PEW Charitable
Trusts on July 5, 2019 for House staffers when I was an
assistant professor at the University of Michigan School of
Public Health. The topic of the briefing was on Barriers to
Substance Use Disorder (SUD) Treatment, and the Mainstreaming
Addiction Treatment (MAT) Act was discussed; Rep. Tonka, the
bill's sponsor, launched the session. While I expressed my
support for the MAT Act during the panel, I was also clear that
removing other barriers, beyond the X waiver elimination, would
be necessary to meaningfully reduce barriers to SUD treatment.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
Any potential conflict of interest will be resolved in
accordance with the terms of my ethics agreement, which was
developed in consultation with ethics officials at the
Department of Health and Human Services and the Office of
Government Ethics. I understand that my ethics agreement has
been provided to the committee. I am not aware of any potential
conflict other than those addressed by my ethics agreement. If
I have any questions arise, I will consult with HHS career
ethics officials.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
I understand that my ethics agreement has been provided to the
committee along with the accompanying transmittal documents.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
On March 14, 2001, I was served with a ``North Carolina Uniform
Citation'' for being in possession of a mixed alcoholic
beverage at age 20 (G.S. 18B-302(b))--a misdemeanor offense. On
April 11, 2001, I was directed by the Durham District Court to
participate in the ``First Offenders Program,'' which involved
a service fee and 50 hours of community service. I completed my
community service at the Ronald McDonald House in Durham in May
2001. In addition, I paid my service fee and submitted a
personally written paper entitled, ``The Effects of Alcohol on
the Body'' to the District Court. My case was dismissed upon
its review in the Durham District Court on October 26, 2001.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
Published Writings
Articles:
1. Townsend TN, Bohnert ASB, Lagisetty PA, Haffajee RL. Did
prescribing laws disproportionately affect opioid dispensing to
Black patients? H Serv Res, March 3, 2022. Available at:
https://onlinelibrary.wiley.com/doi/abs/10.1111/1475-
6773.13968.
2. Haffajee RL, Kilmer B, Helland E. Government opioid litigation: the
extent of liability. DePaul L Rev 2022;70(1):275-31 (ranked 88/
963 U.S. law journals).
3. Sommers BD, Haffajee RL. Federal policies to expand health
insurance coverage during the COVID-19 pandemic and beyond.
JAMA H Forum 2021;2(11):
e214608.
4. Haffajee RL, Sommers BD. Evidence-based policy in the Biden-Harris
Administration. JAMA H Forum 2021;2(7):e212598.
5. Townsend T, Cerda M, Bohnert ASB, Lagisetty PA, Haffajee RL. CDC
Guideline for opioid prescribing associated with reduced
dispensing to certain patients with chronic pain. H Aff
2021;40(11):1766-1775.
6. Townsend T, Salz T, Haffajee RL, Caram M, Chino F, Bohnert ASB. Has
declining opioid dispensing to cancer patients been tailored to
risk of opioid harms? J Pain Symptom Manag 2021;63(2):179-188.
7. Haffajee RL, Faherty LJ, Zivin K. Pregnant women with substance use
disorders--the harm associated with punitive approaches. N Eng
J Med 2021;384(25):2364-67.
8. Haffajee RL, Mauri AI. Cannabis liberalization in the U.S.: The
policy landscape. H Aff Policy Brief, July 1, 2021. Available
at: https://www.
healthaffairs.org/do/10.1377/hpb20210518.36548/full/.
9. Haffajee RL, Mauri AI. Cannabis legalization in the U.S.:
population health impacts. H Aff Policy Brief, July 1, 2021.
Available at: https://www.healthaffairs.
org/do/10.1377/hpb20210701.500845/full/.
10. Andraka-Christou B, Bouskill K, Haffajee RL, Randall-Kosich O,
Golan M, Totarum R, Stein B. Common themes in early state
policy responses to SUD treatment during COVID-19. Amer J Drug
and Alc Abuse 2021;47(4):486-96.
11. Cantor J, Dick AW, Haffajee RL, Pera MF, Bravata DM, Stein BD,
Whaley C. Use of buprenorphine for those with employer
sponsored insurance during the initial phase of the COVID-19
pandemic. J Subst Abuse Treatment 2021;129:108384.
12. Admon LK, Dalton VK, Kolenic GE, Ettner SL, Tilea A, Haffajee RL,
Brownlee RM, Zochowski MK, Tabb KM, Muzik M, Zivin K. Trends in
suicidality 1 year before and after birth among commercially
insured childbearing individuals in the United States, 2006-
2017. JAMA Psych 2021;78(2):171-176.
13. Haffajee RL, Andraka-Christou B, Dormond M, Cupito A, Buche J. A
mixed-method comparison of physician-reported knowledge about
and barriers to treatment with medications for opioid use
disorder. Substance Abuse Treatment, Prevention, and Policy
2020;15:69.
14. Leopold C, Haffajee RL, Lu CY, Wagner AK. The complex cancer care
coverage environment--What is the role of legislation? A case
study from Massachusetts. J L Med Ethics 2020;48(3):538-551.
15. Haffajee RL. The public health value of opioid litigation. J L Med
Ethics 2020;48(2):279-292. PMCID: PMC7481928.
16. Dora-Laskey AD, Goldstick JE, Arterberry BJ, Roberts SJ, Haffajee
RL, Bohnert ASB, Cunningham RC, Carter PM. Prevalence and
predictors of driving after prescription opioid use in an adult
ED sample. West J Emerg Med 2020;21(4):831-40. PMCID:
PMC7390550. See also https://injurycenter.umich.
edu/wp-content/uploads/2020/08/Vis-abs-Dora-Laskey_DAPO.pdf.
17. Lagisetty PA, Zhang K, Haffajee RL, Lin LA, Goldstick J, Brownlee
R, Bohnert ASB, Larochelle MR. Opioid prescribing history prior
to heroin overdose among commercially insured adults. Drug and
Alc Depend 2020;212:10806. PMID: 32428788.
18. Haffajee RL, Mello MM. Thinking globally, acting locally--The U.S.
Response to COVID-19. N Eng J Med 2020;382:e75. PMID: 32240580.
19. Alexander GC, Stoller KB, Haffajee RL, Saloner B. An epidemic in
the midst of a pandemic: Opioid use disorder and COVID-19. Ann
Int Med 2020;
173(1):57-58. PMCID: PMC7138407.
20. Maust DT, Lin LA, Goldstick JE, Haffajee RL, Brownlee R, Bohnert
ASB. Association of Medicare Part D benzodiazepine coverage
expansion with changes in fall-related injuries and overdoses
among Medicare Advantage beneficiaries. JAMA Netw Open
2020;3(4):e202051. PMCID: PMC7125434. See also https://
injurycenter.umich.edu/wp-content/uploads/2020/04/
Maust_BZD_Visual-Abstract.pdf.
21. Haffajee RL, Cherney S, Smart R. Legal requirements and
recommendations to prescribe naloxone. Drug and Alc Depend
2020;209:107896. PMCID: PMC7127952.
22. Haffajee RL, Frank RG. Abuses of FDA regulatory procedures--The
case of Suboxone. N Eng J Med 2020;382(6):496-498. PMID:
31914238.
23. Haffajee RL, Abrams MR. Settling the score: Maximizing the public
health impact of opioid litigation. Ohio St Law J 2020;
80(4):701-740 (ranked 41/948 U.S. law journals).
24. Haffajee RL, Frank RG. Generic drug policy and Suboxone to treat
opioid use disorder. J L Med Ethics 2019;47(S4):43-53. PMID:
31955697.
25. Mauri AM, Townsend T, Haffajee RL. The association of state opioid
misuse prevention policies with patient- and provider-related
outcomes: A scoping review. Millbank Q 2019;98(1):57-105.
PMCID: PMC7077777.
26. Agarwal S, Bryan JD, Hu HM, Lee JS, Chua KP, Haffajee RL, Brummett
CM, Englesbe MJ, Waljee JF. Association of state opioid
duration limits with postoperative opioid prescribing. JAMA
Netw Open 2019;2(12):e1918361. PMCID: PMC6991309.
27. Haffajee RL. Prescription drug monitoring programs: friend or folly
in addressing the opioid-overdose crisis? N Eng J Med
2019;381:699-701. PMID: 31433916; PMCID: PMC7486903.
28. Lagisetty PA, Lin LA, Ganoczy D, Haffajee RL, Bohnert ASB. Opioid
prescribing after opioid-related inpatient hospitalizations by
diagnosis: A cohort study. Med Care 2019;57(10):815-821. PMCID:
PMC6742521.
29. Haffajee RL, Lin LA, Bohnert ASB, Goldstick JE. Characteristics of
U.S. counties with high opioid overdose mortality and low
capacity to deliver medications for opioid use disorder. JAMA
Netw Open 2019;2(6):e196373. PMCID: PMC6604101.
30. Haffajee RL, Mello MM, Zhang F, Busch AB, Zaslavsky AM, Wharam JF.
Association of federal mental health parity legislation with
health care use and spending among high utilizers of services.
Med Care 2019;57(4):245-255. PMCID: PMC6423539.
31. Haffajee RL, French CA. Provider perceptions of system-level opioid
prescribing and addiction treatment policies. Curr Opin Psychol
2019;30:65-73. PMID: 30856591; PMCID: PMC7482312.
32. Chua KP, Brummett CM, Conti R, Haffajee RL, Prosser L, Bohnert ASB.
Assessment of prescriber and pharmacy shopping among the family
members of patients prescribed opioids. JAMA Netw Open
2019;2(5):e193673. PMCID: PMC6512276.
33. Boehnke KF, Gangopadhyay S, Clauw DJ, Haffajee RL. Qualifying
conditions of medical cannabis license holders in the United
States. Health Aff 2019;38(2):295-302. PMCID: PMC6398594.
34. Yang TY, Weintraub E, Haffajee RL. Telemedicine's role in
addressing the opioid crisis. Mayo Clin Proc. 2018;93(9):1177-
1180. PMCID: PMC6330237.
35. Kennedy-Hendricks A, Epstein AJ, Stuart EA, Haffajee RL, McGinty
EE, Busch AB, Huskamp H, Barry CL. Federal parity and spending
for mental illness. Pediatrics 2018;142(2):e20172618. PMCID:
PMC6317554.
36. Haffajee RL, MacCoun RJ, Mello MM. Behind schedule--Reconciling
federal and state marijuana policy. N Engl J Med
2018;379(6):501-504. PMID: 29996065.
37. Haffajee RL, Mello MM, Zhang F, Zaslavsky AM, Larochelle MR, Wharam
JF. Four states with robust prescription drug monitoring
programs reduced opioid dosages. Health Aff 2018;37(6):964-74.
PMCID: PMC6298032.
38. Haffajee RL, Bohnert ASB, Lagisetty PA. Policy pathways to address
workforce barriers to buprenorphine treatment. Am J Prev Med
2018;54(6):S230-S242. PMCID: PMC6330240.
39. Haffajee RL, Frank RG. Making the opioid public health emergency
effective. JAMA Psych 2018;75(8):767-768. PMCID: PMC6378105.
See also https://injury
center.umich.edu/wp-content/uploads/2018/11/
Publication_Summary_Haffajee
_Opioid-PHE_Final.pdf.
40. Haffajee RL, Mello MM. Drug companies' liability for the opioid
epidemic. N Engl J Med 2017;377(24):2301-2305. PMID: 29236640;
PMCID: PMC7479783.
41. Yang TY, Larochelle MR, Haffajee RL. Managing increasing liability
risks related to opioid prescribing. Am J Med 2017;130(3):249-
50. PMID: 27644150.
42. Yang TY, Haffajee RL. Murder liability for prescribing opioids: A
way forward? Mayo Clin Proc 2016; 91(10):1331-35. PMID:
27502463; PMCID: PMC7490802.
43. Haffajee RL. Preventing opioid misuse with prescription drug
monitoring programs: A framework for evaluating the success of
state public health laws. Hastings Law J 2016; 67(6):1621-1694
(ranked 34/948 U.S. law journals).
44. Haffajee RL, Jena AB, Weiner SG. Mandatory use of prescription drug
monitoring programs. JAMA 2015;313(9):891-892. PMCID:
PMC4465450.
45. Haffajee RL, Parmet WE, Mello MM. What is a public health
``emergency''? N Engl J Med 2014;371(11):986-988. PMID:
25207765.
46. Haffajee RL, Bloche GM. The FCTC and the psychology of tobacco
control. Asian J WTO Int'l Health Law and Pol'y 2010;5(1): 87-
113 (ranked 720/1537 U.S. and international law journals).
47. Haffajee RL. The potential use of joint criminal enterprise theory
in prosecuting crimes of rape and sexual violence at the ICTR.
Harvard J Law and Gender 2006;29(1):201-221 (ranked 85/948 U.S.
law journals).
48. Haffajee RL. Genetic discrimination legislation in Massachusetts.
GeneWatch 2000;13(5/6).
49. Haffajee RL. Medicare prescription drug benefits tug of war.
Capital Eye 2001;8:5.
Other Written Publications:
1. Haffajee RL. Tackling the drug overdose crisis: A novel health and
human services strategy. H Aff Forefront, January 24, 2022.
Available at: https://www.healthaffairs.org/do/10.1377/
forefront.20220119.886508.
2. Haffajee, RL, Sherry TB, Dubenitz JM, White JO, Schwartz D, Stoller
B, Swenson-O'Brien AJ, Manocchio TM, Creedon TB, Bagalman E.
U.S. Department of Health and Human Services Overdose
Prevention Strategy (Issue Brief). Washington, DC: Office of
the Assistant Secretary for Planning and Evaluation, U.S.
Department of Health and Human Services. October 27, 2021.
Available at: https://aspe.hhs.gov/reports/overdose-prevention-
strategy.
3. Garabedian LF, Haffajee RL. Schools need to assume kids can get and
spread COVID, and operate safely for all ages. USA Today.
August 28, 2020. Available at: https://www.usatoday.com/story/
opinion/2020/08/28/coronavirus-child-studies-inconclusive-
schools-precautions-column/3434655001/.
4. Haffajee RL, Lin LA, Page C, et al. Access to treatment for opioid
use disorder: a survey of addiction medicine physicians on
telemedicine and medication-
assisted treatment. Behavioral Health Workforce Research
Center, University of Michigan. December 2019. Available at:
http://www.behavioralhealthworkforce.
org/project/understanding-telemedicines-role-in-providing-
medication-assisted-treatment-to-treat-opioid-use-disorders-
barriers-facilitators-and-areas-of-need/.
5. Mauri A, Haffajee RL. Beyond bans: How cannabis policy reform can
reduce vaping-related illnesses. Health Aff Blog, March 26,
2020. Available at: https://www.healthaffairs.org/do/10.1377/
hblog20200323.90505/full/.
6. Haffajee RL, Stein B. Spending the opioid settlement most
effectively. Pitt Gazette, December 19, 2019. Available at:
https://www.post-gazette.com/opinion/Op-Ed/2019/12/19/Rebecca-
Haffajee-Bradley-Stein-Spending-the-opioid-settlement-most-
effectively/stories/201912190053.
7. Harbraugh C, Malani P, Haffajee RL, Waljee JF. The culture of pain:
Perceptions of opioid-related policy among U.S. older adults.
Health Aff Blog, April 17, 2019. Available at: https://
www.healthaffairs.org/do/10.1377/hblog20190415.
123669/full/.
8. Boehnke KF, Haffajee RL. Medical Cannabis and Pain: The Author's
Reply. Health Aff 2019;38(4):694.
9. Boehnke KF, Clauw DJ, Haffajee RL. Letter to the editor: On chronic
pain as a qualifying condition for medical cannabis licenses.
Health Aff 2019;38(5):874.
10. Frank RG, Haffajee RL. Generic drug policy and opioid use disorder
treatment. Laura and John Arnold Foundation: White Paper,
January 2019.
11. Frank RG, Haffajee RL. The Trump administration's actions to solve
the opioids public health crisis: A reply. JAMA Psych.
2019;76(1):101-102.
12. Atterman J, Dormand J, Schreiber J, Haffajee RL, et al. Behavioral
health workforce challenges related to medication assisted
treatment. Behavioral Health Workforce Research Center,
University of Michigan. Jan. 2018. Available at: http://
www.behavioralhealthworkforce.org/wp-content/uploads/2018/04/
Y2FA3P2_MAT-Full-Report.pdf.
13. Haffajee RL. Will public health litigation help to solve the opioid
crisis? Public Health Law Watch Blog. December 21, 2017.
Available at: https://www.public
healthlawwatch.org/blog/2017/12/22/will-public-health-
litigation-help-to-solve-the-opioid-crisis?rq=haffajee.
14. Haffajee RL, Liber AC, Warner KE. A safer way to legalize
marijuana. Health Affairs Blog, September 8, 2017. Available
at: https://www.healthaffairs.org/do/10.1377/
hblog20170908.061869/full/.
15. Carter P, Abir M, Bohnert ASB, Cunningham RC, Dora-Laskey A,
Haffajee RL, Martin J, Walton M. The prescription opioid
epidemic in Michigan: Evidence, expertise, and recommendations
for action. University of Michigan Injury Center. September
2017.
16. Haffajee RL. Fight the urge to criminalize opioid addiction
behaviors. Health Affairs Blog, March 9, 2016. Available at:
http://healthaffairs.org/blog/2016/03/09/fight-the-urge-to-
criminalize-opioid-addiction-behaviors/.
17. Haffajee RL. Widespread use of prescription drug monitoring
programs to reduce opioid abuse and overdoses. Bill of Health
Blog, Harvard Law School/Petrie Flom Center for Health Law
Policy Biotechnology, and Bioethics. March 9, 2015. Available
at: http://blogs.harvard.edu/billofhealth/2015/03/09/
widespread-use-of-prescription-drug-monitoring-programs-to-
reduce-opioid-abuse-and-overdoses/.
18. Haffajee RL. What is (or isn't) a public health ``emergency''? Bill
of Health Blog, Harvard Law School Petrie Flom Center for
Health Law Policy Biotechnology, and Bioethics. September 12,
2014. Available at: http://blogs.harvard.edu/billofhealth/2014/
09/12/what-is-or-isnt-a-public-health-emergency/.
19. Haffajee RL. Soda industry sues to block NYC ban on sugar-sweetened
beverage sales. Bill of Health Blog, Harvard Law School/Petrie
Flom Center for Health Law Policy Biotechnology, and Bioethics.
October 15, 2012. Available at: http://blogs.harvard.edu/
billofhealth/2012/10/15/soda-industry-sues-to-block-nyc-ban-on-
soda-sales/.
20. Haffajee RL. What do we know about obesity and its prevention in
the U.S. Bill of Health Blog, Harvard Law School/Petrie Flom
Center for Health Law Policy Biotechnology, and Bioethics.
October 5, 2012. Available at: http://blogs.
harvard.edu/billofhealth/2012/10/05/what-do-we-know-about-
obesity-and-its-prevention-in-the-u-s/.
21. Haffajee RL. MA health reform and medical debt--Getting the facts
straight. Bill of Health Blog, Harvard Law School/Petrie Flom
Center for Health Law Policy Biotechnology, and Bioethics.
September 12, 2012. Available at: http://blogs.harvard.edu/
billofhealth/2012/09/12/ma-health-reform-and-medical-debt-
getting-the-facts-straight/.
______
Questions Submitted for the Record to Rebecca Lee Haffajee, Ph.D.
Questions Submitted by Hon. Ron Wyden
child welfare data reporting
Question. I'd like to raise a data-focused question concerning the
Adoption and Foster Care Analysis and Reporting System--better known as
AFCARS--which is housed in the Administration for Children and Families
at HHS. I know this system is not squarely in ASPE's purview, but given
your role, if confirmed, leading data analysis efforts across HHS, I
feel this question deserves your attention.
The AFCARS system requires State foster care agencies to report on
several key metrics, including how many youth are in foster care, when
they enter and exit, what demographics of youth enter foster care, and
placement details.
For years, I have been pushing for a meaningful modernization of
this system. In 2020, the Trump administration finalized an AFCARS rule
that removed several important data elements that the Obama
administration was trying to include in a modernization effort.
Included among the data elements that were removed were those related
to LGBTQ+ youth.
I was thrilled to see President Biden issue an executive order last
month that, among other things, directs HHS to study the
disproportionate rates of removals that LGBTQ+ families face.
In line with those goals, what is your plan to pursue a meaningful
modernization of AFCARS that captures key demographic information, like
LGBTQ+ identity?
Answer. I strongly believe in the importance of data and evidence
in driving decisions in the child welfare system and doing what is in
the best interests of children. I understand the critical importance of
AFCARS and I would, if confirmed, be happy to work with ACF and you to
ensure that AFCARS is collecting and reporting demographic data that
will help us to keep all children safe and move us towards a system of
child and family well-being.
mental health
Question. Mental health is an area that I know we both care about
deeply. Disruption, grief, and economic uncertainty during COVID-19
mean access to mental health and substance use disorder care is more
important than ever.
While mental health parity has been the law since 2008, I hear a
great deal about administrative barriers to delay or discourage access
to mental health care. For example, provider directories are often
riddled with errors and include doctors who have been retired for
years.
What are your top priorities for addressing access to mental health
care?
Answer. Mental health and substance use challenges have been
exacerbated by COVID-19. But even before the pandemic, this area of
health was underemphasized and underfunded. ASPE can play a critical
role in strengthening our Nation's behavioral health infrastructure and
has demonstrated this already through its work on the HHS Overdose
Prevention Strategy. If confirmed, I will continue to prioritize
behavioral health, including supporting programs and initiatives across
the continuum of prevention, intervention, treatment, and recovery
support services; supporting the recruitment, training, and retention
of culturally competent and representative practitioners; offering
support for family members whose loved ones may be in crisis; as well
as strengthening enforcement of this country's mental health parity
laws.
Question. If confirmed, can you commit to publishing studies on how
failure to comply with mental health parity affects access to necessary
mental health and substance use disorder services?
Answer. Expanding access to medically necessary mental health and
substance use disorder services is a priority for HHS and the
administration as a whole. I agree that the mental health parity law is
an important policy tool to achieve this goal. HHS has actively
supported implementation of the Paul Wellstone and Pete Domenici Mental
Health Parity and Addiction Equity Act of 2008 through its operational
divisions, such as SAMHSA and CMS, and across the government with the
Departments of Labor and Treasury, as well as ONDCP. If confirmed, I
will ensure that ASPE continues to provide the Secretary with the best
available evidence to inform and strengthen HHS's many efforts to
connect people who have mental health conditions and substance use
disorders with the care they need in addition to other supportive
social services.
______
Questions Submitted by Hon. Chuck Grassley
Question. The Finance Committee has had several Department of
Health and Human Services (HHS) nominees commit to being responsive to
Congress. Sadly, their words have not matched action. In 2021, it took
Secretary Becerra 237 days to answer budget questions. I submitted
questions to him again this year on April 12th and am still awaiting
answers. In February, I asked Surgeon General Murthy for follow-up
answers to my questions on rural mental health policy, and I'm still
awaiting answers. If you are confirmed, will you commit to providing
timely responses to requests for information from all members of this
committee?
Answer. I deeply respect the oversight function of this committee
for improving current policies and programs. If confirmed, I am
committed to ensuring that the Department is responsive to oversight
requests and provides Congress with the information that it needs
consistent with appropriate law and regulation.
Question. Last month, the Senate Drug Caucus held a hearing on the
administration's 2022 Drug Control Policy Strategy. The Centers for
Disease Control and Prevention (CDC) reports that nearly 108,000
Americans died last year from a drug overdose. This is staggering and
unacceptable. Iowa is no stranger to the drug crisis. Our communities
have been hit hard by the impact of lethal drugs. This includes meth,
fentanyl, and now the spread of deadly counterfeit pills. I believe the
Biden administration's drug control policy could do a better job of
focusing on the most lethal drugs facing us rather than making drugs
more accessible. The permanent scheduling of all fentanyl related
substances would be a start. Should Congress permanently place fentanyl
analogues in Schedule I while continuing research on the class?
Answer. The overdose crisis plaguing our Nation requires a forceful
response that is rooted in evidence about what works to save lives,
reduce the spread of disease, and address the underlying issue by
engaging individuals in treatment productively so they achieve long-
term recovery. The President put forward a proposal to permanently
place fentanyl-related substances on Schedule I precisely because of
their risks to public health. If confirmed, I will follow the law and
commit to working with Federal, State, Tribal, local, and territorial
public health leaders to address this deadly epidemic and its key
drivers by deploying evidence-informed practices.
Question. Earlier this year, I became concerned the administration
was permitting ``smoking kits,'' which include crack pipes, to be
funded as part of a harm reduction grant program at the Department of
Health and Human Services (HHS). Fortunately, the administration called
this effort off. However, a news report last week suggests that a New
York City grantee is receiving approximately $400,000 in HHS funding
while offering smoking kits to addicts. An HHS spokesperson says that
``no Federal funding is used directly or through subsequent
reimbursement of grantees to purchase pipes in safer smoking kits.''
Do you believe ``smoking kits'' are an effective harm-reduction
strategy?
The Biden administration is on the record against funding crack
pipes with Federal dollars. However, organizations receiving Federal
dollars are still providing ``smoking kits.'' How can the Biden
administration ensure Federal dollars aren't funding ``smoking kits''
or ``crack pipes''?
Answer. As Secretary Becerra stated \1\ in clear terms: no Federal
funding will be used directly or through subsequent reimbursement of
grantees to put pipes in safe smoking kits. I support evidence-based
practical strategies that prevent deadly overdoses, reduce the spread
of disease associated with drug use, and engage individuals that use
drugs in treatment productively. If confirmed, I will work with the
appropriate subject-matter experts on this issue and follow the law.
---------------------------------------------------------------------------
\1\ https://www.hhs.gov/about/news/2022/02/09/statement-hhs-
secretary-xavier-becerra-and-ondcp-director-rahul-gupta.html.
Question. Last month, the Centers for Medicare and Medicaid
Services (CMS) issued the first proposed regulations to implement the
Rural Emergency Hospital (REH) Medicare designation. This is a new and
voluntary Medicare program. It lets hospitals maintain essential
medical services in their communities like 24/7 emergency care and
outpatient care. I ask that CMS issue the rest of the proposed
regulations timely and fairly. Rural hospitals cannot wait any longer.
It's important that CMS work closely with rural hospitals to ensure the
---------------------------------------------------------------------------
regulations don't hinder already struggling hospitals.
Should CMS hold specific listening sessions with rural hospitals to
ensure the REH regulations are fair and reasonable?
Should CMS issue the least administratively burden regulations for
REH?
Do you have concerns about the current administrative and financial
burdens rural hospitals face from Federal regulations and how that may
impact their ability to provide care? I want to note, I'm committed to
ensuring hospitals provide high-quality and safe health care.
Answer. Section 1861(kkk) of the Social Security Act, as added by
the Consolidated Appropriations Act, 2021, provides for Medicare
payment for items and services furnished by REHs on or after January 1,
2023, and CMS continues to work diligently to ensure that this
provision is implemented by this date. REHs will offer the opportunity
for current Critical Access Hospitals and rural hospitals with fewer
than 50 beds to seek REH designation. In accordance with this
provision, REHs are required to furnish emergency services and
observation care, and they may elect to provide additional specified
medical and health services on an outpatient basis.
By providing these services, rural communities will maintain access
to health care that otherwise may not be available. CMS remains
steadfast in its commitment to rural communities' access to health-care
services and is focused on implementing the REH provision through
rulemaking by January 1, 2023.
CMS will continue to engage stakeholders regarding the REH
provision to ensure implementation consistent with the commitment above
by seeking input from the rural community on specific proposed REH
standards, including the ability of an REH to provide low-risk
childbirth-related labor and delivery services and whether CMS should
require that an REH also provide outpatient surgical services in the
event that surgical labor and delivery intervention is necessary. CMS
is also requesting comments regarding whether it is appropriate for an
REH to allow a doctor of medicine or osteopathy, a physician assistant,
a nurse practitioner, or a clinical nurse specialist, with training or
experience in emergency medicine, to be on call and immediately
available by telephone or radio contact and available on site within
specified timeframes.
______
Questions Submitted by Hon. Rob Portman
fentanyl and overdose deaths
Question. Thank you for being with us today. The United States
experienced an estimated 107,622 drug overdose deaths during 2021, an
increase of nearly 15 percent from the 93,655 deaths estimated in 2020.
The majority of these deaths are caused by fentanyl that can be laced
into other drugs or even masked as other substances like pain
medication or anti-anxiety medications. I understand that you have
focused much of your career on the response to the opioid epidemic. I
particularly appreciate your work on prescription drug monitoring
programs and other ways to limit exposure to medications that are very
addictive. I understand the Biden administration is emphasizing harm
reduction as a means to reduce the number of overdose deaths.
Aside from harm reduction efforts, what other steps would you take
in this role to lower the number of people who are exposed to fentanyl
and are losing their lives across the country?
Do you think that the Federal Government should lead a clear
campaign to get the message out that fentanyl is deadly and could be in
any drug that doesn't come from a pharmacist?
Answer. The overdose crisis plaguing our Nation requires a forceful
response that is rooted in evidence about what works to save lives,
reduce the spread of disease, and address the underlying issue by
engaging individuals in treatment productively so they achieve long-
term recovery. The HHS Overdose Prevention Strategy includes
prevention, harm reduction, evidence-based treatment, and recovery
efforts, and includes steps to raise public awareness about overdose
risks and prevention. If confirmed, I will follow the law and commit to
working with Federal, State, Tribal, local, and territorial public
health leaders to address this deadly epidemic and its key drivers by
deploying evidence-informed practices.
medication-assisted treatment (mat) and treats act
Question. I'd like to talk about increasing access to addiction
treatment. As you know, the COVID-19 pandemic has tolled heavily on
Americans' mental health. Given the latest overdose numbers, we need to
continue to explore and pursue evidence-based policies that support
access to treatment for substance use disorders, such as Medication-
Assisted Treatment or MAT. That is why I introduced the TREATS Act with
Senator Whitehouse to codify the flexibilities enacted during COVID to
allow for the prescribing of MAT through a telehealth visit. I have
heard from behavioral health providers throughout the pandemic that
this flexibility has been particularly useful in treating patients
living in rural areas, and has strengthened patient retention. The HHS
ASPE published a report in July 2020 that acknowledged that retention
in MAT for substance use disorder resulted in better outcomes, reduced
rates of mortality, and reduced utilization of high-intensity
treatment.
If you are confirmed, will you commit to exploring evidence-based
solutions, including the expanded role of telehealth in addiction
treatment?
Answer. The substance use disorder crisis demands a comprehensive,
multifaceted evidence-based approach to include prevention,
intervention, treatment, and recovery support services. I share
President Biden's and Secretary Becerra's commitment to addressing this
epidemic and making sure patients can get the treatment they need,
which includes increasing access to medication-assisted treatment,
which, when administered by trained professionals, reduces the risks of
overdose and continued substance use. I appreciate your leadership on
this issue and look forward to partnering with you, if I am confirmed,
to continue to inform this important issue with data and evidence.
______
Questions Submitted by Hon. James Lankford
Question. As you may be aware, this committee has been working on
several mental health proposals. In my opinion, one of the many ways in
which the mental health of Americans is impacted is through substance
abuse. In my State of Oklahoma, the opioid crisis is a primary
perpetrator of this.
Due to your extensive work on the opioid crisis across America, do
you believe that opioid prevention strategies should be included in
Congress' work on mental health?
What are some examples of effective strategies you have seen in
your work to address this ongoing crisis?
Answer. Mental health and substance use challenges, often co-
occurring, have a strong relationship to physical health outcomes. This
area of health has historically been underemphasized and underfunded.
ASPE can continue to play a critical role in strengthening our Nation's
behavioral health, including by informing evidence-based ways to treat
substance use disorders in coordination with mental health conditions.
If confirmed, I will continue to prioritize this issue, including by
supporting programs and initiatives across the continuum of prevention,
intervention, treatment, and recovery supports; by informing care
integration across disorders, settings, and providers; and by enhancing
access to other supportive social services.
Question. The Monitoring the Future Survey is funded by NIDA and
measures drug and alcohol use in adolescents nationwide. In 2021, and
likely because of the pandemic and lack of social interaction, overall
substance abuse dropped among adolescents. The notable and concerning
outlier was marijuana. Marijuana vapes and marijuana smoking were the
only substances to report an increase in use among students. This is
not surprising to me because we know marijuana is addictive and has a
high potential for abuse. With the aggressive wave of marijuana
legalization and the availability of highly potent and often candy-
flavored THC products, I'm very concerned about the negative effects
this has and will continue to have on our children.
Currently on the Surgeon General's website, there is an advisory on
marijuana and the developing brain. The advisory States that marijuana
works by binding to receptors in the brain to produce euphoria,
intoxication, memory and motor impairments. These same receptors are
critical for brain development including the formation of brain
circuits important for decision-making, mood, and responding to stress.
Additionally, a 2002 study posted on NIH's website found that daily
use of marijuana in young women was associated with an over-fivefold
increase in the odds of reporting a state of depression and anxiety.
Weekly marijuana use was associated with a twofold increased risk of
depression and anxiety.
As you have done much research on marijuana's impact on our
society's youth and have noted that more research is needed for
effective policy solutions, can you expand on the link between
adolescent marijuana consumption and mental health, both what we know
already and what still needs to be researched?
Will you commit to not supporting marijuana policy initiatives that
are not adequately linked to scientific evidence?
Answer. Marijuana use among adolescents happens at a time when the
brain is still developing, placing young people at particular risk for
cognitive consequences and addiction. Additional evidence is needed to
continue to understand these impacts, particularly in light of the
legalization of marijuana for adult use in many States and the range in
current products and regulatory environments. FDA has also issued
warning letters to companies illegally selling CBD and Delta-8 THC
products, to ensure that consumers can make informed choices about
products. If confirmed, I will work with Federal partners as well as
States on this issue to identify high-quality data and evidence to
inform policies that will prioritize the health of our Nation's youth.
Question. ASPE is a member of the Interagency Group on Alzheimer's
Disease and Related Dementias per the National Alzheimer's Project Act
(NAPA). HHS updated its NAPA plans this January to include a goal of
``Promoting Healthy Aging and Reducing Risk Factors.'' As you know,
Americans impacted by Alzheimer's and dementia-related diseases are
growing, with studies showing that over 150 million people will have
Alzheimer's by 2050. This new goal was put in place largely due to the
several studies showing ways to prevent Alzheimer's with certain
lifestyle changes.
How involved have you been in Alzheimer's research planning in your
current role at ASPE, and will you commit, if confirmed, to staying the
course on tracking down how we can best prevent, treat, and cure the
public health crisis that is Alzheimer's?
Answer. Alzheimer's disease and other dementias affect a growing
proportion of our older populations, which makes the work of the
Interagency Group on Alzheimer's Disease and Related Dementias under
the NAPA critically important. If confirmed, ASPE will continue to play
an important coordination and contributory role in this interagency
group, as well as continue to work with partners on how to best address
this public health crisis using data and evidence.
Question. As you know, Congress has continued to maintain the Hyde
Amendment on a bipartisan basis each year in annual funding bills since
1976.
If confirmed, will you continue to uphold and enforce the
restrictions of the Hyde Amendment--that no Federal funding can pay for
abortions except in the case of rape, incest, or to protect the life of
the mother--as enacted by Congress, as well as other prolife
protections currently in Federal law without misinterpreting or
applying such laws to allow coverage for travel to obtain abortion?
Answer. If confirmed as Assistant Secretary for Planning and
Evaluation, I will follow the law.
Question. Will you commit to not attempting to weaken the Hyde
Amendment and similar prolife policies or strip them from future
budgets or appropriations bills?
Answer. If confirmed, I will follow the law.
Question. Congress has also continued to include conscience
protections for individuals who have a religious or moral objection to
participating in certain medical procedures. Specifically, the Weldon
Amendment, which has been included in funding bills since 2004,
restricts Federal funding from going to agencies or programs that
discriminate against health-care providers that do not provide, pay
for, provide coverage of, or refer for abortions. Unfortunately, this
administration has walked back enforcement of the Weldon Amendment,
including rescinding enforcement action on California for violating
Weldon.
If confirmed, will you continue to uphold and enforce the Weldon
Amendment and all other conscience protections enacted by Congress to
ensure that no health-care providers are discriminated against with
Federal dollars because of their personal or professional view on
abortion, gender transitions, or other procedures?
Answer. If confirmed, I will follow the law.
Question. A report \2\ from the Obama administration in 2010
reinforced the importance of faith-based partnerships. Among the
recommendations put forward in the report was to draw more on the local
expertise and relationships of faith-based organizations as a way of
filling gaps in the provision of essential services. Faith-based
organizations are excellent, effective, and efficient at meeting the
needs of our most at-risk populations. The report also highlighted the
need to ease overly burdensome reporting and regulation requirements
placed on social service agencies.
---------------------------------------------------------------------------
\2\ https://obamawhitehouse.archives.gov/sites/default/files/
microsites/ofbnp-council-final-report.pdf.
Do you agree that it is important to continue pursuing ways to
engage and expand faith-based partnerships as a way of effectively
addressing some of the most critical social service needs in our
---------------------------------------------------------------------------
country?
Answer. We should be working with all types of providers and
grantees to fulfill ACF's mission of supporting children and families.
If confirmed, I look forward to listening to and working closely with
faith-based providers.
Question. The Supreme Court has, in multiple decisions, reiterated
that religious organizations cannot be discriminated against in the
distribution of a public benefit for which they otherwise qualify
because of their religious beliefs or identity.
Will you commit to ensuring that no policy in HHS will disqualify a
religious organization from receiving aid or participating in grant
programs simply because of the organization's religious beliefs or
because the organization receives statutory protections for religious
freedom like those in title VII and title IX?
Answer. If confirmed, I will follow the law.
Question. Faith-based child welfare providers perform vital
services for hundreds of thousands of foster children nationwide and
are often the best at finding forever homes for children in need.
According to HHS's AFCARS report, 407,493 children are in foster care,
117,470 of whom are waiting to be adopted. Unfortunately, HHS continues
to take steps to put religious child welfare providers in the untenable
position of choosing between serving children or operating in
accordance with the tenets of their faith, despite the unanimous
Supreme Court decision in Fulton v. Philadelphia, which validated the
principle that religious adoption agencies have a right to be free from
discriminatory exclusion from adoption and foster care programs because
of their beliefs.
If confirmed, will you commit to ensuring that religious child
welfare organizations can continue to serve families in accordance with
their sincerely held religious beliefs?
Answer. Faith-based providers are critical to the child welfare
system. If confirmed, I look forward to listening to and working
closely with faith-based providers. More broadly, I will work to ensure
that ASPE provides the Secretary with timely evidence to support HHS's
ongoing efforts around child welfare and foster care.
Question. As I similarly shared with the Surgeon General and
Secretary Becerra, other countries are seeing the effects of
experimental medical treatments on children with gender dysphoria and
are reversing course. For example, in May 2021, Sweden ended the use of
puberty blockers and cross-sex hormones for most minors. Finland also
began prioritizing psychological interventions and support over medical
interventions. Similarly, in the UK, litigation, which suspended
medical intervention on children under 16 for a time, has sparked a
national conversation about the effects of surgical procedures on
minors. Nevertheless, I'm concerned by the direction the administration
and HHS seems to be going to encourage children with gender dysphoria
to medically transition, regardless of parental involvement.
Based on the medical evidence that exists, do you believe that it
is appropriate for children to receive such treatment?
If so, at what age do you think it is medically and ethically
appropriate for a child to give consent to receive a treatment with
such lasting and adverse effects such as permanent damage to brain
development or infertility?
Do you agree that at a minimum, parents need to provide consent for
their children to receive such care?
Would you agree that no taxpayer dollars should be used to perform
a transition procedure on a child who cannot reasonably provide
informed consent?
Would you agree that medical professionals should not be compelled
to participate in such treatment if it goes against their sincerely
held religious beliefs, conscience or best medical judgement?
Answer. All young Americans, including transgender youth, should
have access to the care and treatment they need. If confirmed, I will
follow the law. It is not ASPE's role to evaluate specific medical
treatments, but if confirmed, I will ensure that ASPE works closely
with departmental leadership to support the President's and the
Secretary's vision of an equitable and high-quality health-care system
for all Americans.
Question. If confirmed in this role, you will have the
responsibility to review regulations, including considering the cost
and benefits of regulatory policies. I am incredibly concerned by a
number of regulatory actions that the administration is expected to
take in the coming months that could place medical professionals in a
position to either violate their conscience or lose their job.
Specifically, I am concerned by the proposed rescission of the
conscience rule as well as the proposed rule that would expand
discrimination on the basis of sex under section 1557 of the Affordable
Care Act to include discrimination on the basis of sexual orientation,
gender identity, and termination of pregnancy.
If confirmed, will you commit to evaluating the impact that such
rules would have on access to quality medical care if medical
professionals were forced to choose between their conscience and their
job?
Answer. If confirmed, I will follow the law. ASPE plays an
important role in the regulatory process, and if confirmed, I will
ensure that ASPE relies on rigorous and objective policy analysis to
assess the costs and benefits of all proposed regulations that we
review.
Question Submitted by Hon. Todd Young
Question. I appreciated reading in your testimony your commitment
to ensuring those ``across HHS have the best available data and
evidence when they are making decisions.'' I've long been an advocate
in Congress for the use of outcomes-driven, evidence-based policy
solutions.
How will you ensure ASPE uses an evidence-based approach for
analysis and recommendations?
Answer. ASPE's greatest resource is the expertise of its career
staff, who provide independent, data-driven information to support
policymaking by HHS. If confirmed, I will ensure that ASPE continues to
empower its subject matter experts to provide their input, and that I
communicate clearly with HHS leadership what the evidence tells us
about the policies we consider. I can also commit that ASPE will
continue to closely track the latest developments in research methods
and build improved data capacity to answer the key policy challenges
that face the Department.
______
Questions Submitted by Hon. John Barrasso
Question. Twenty-five of my colleagues and I sent a letter to the
Department of Health and Human Services on June 9th requesting
information on the Department's progress in transitioning beyond
policies tied to the public health emergency. While I understand that
in your current role, and if confirmed, in your future role, you do not
have direct decision-making power over the status of these policies,
your office still provides critical analysis for future policy
development within HHS.
If confirmed, to what extent would you focus ASPE's resources on
studying the effects of temporary, pandemic-related policies
implemented in the Medicare, Medicaid, and CHIP programs over the past
2+ years?
Similarly, and if confirmed, are there specific research questions
or policy issues stemming from these temporary policies that you
anticipate ASPE would analyze, such as the long-run considerations of
making certain COVID-19 flexibilities permanent?
Answer. If confirmed, I will work closely with our subject matter
experts to evaluate the effects of pandemic policies including
telehealth, the continuous enrollment provision in Medicaid during the
PHE, and other emergency authorities that have been implemented. In
these areas, ASPE's role is to assess the research evidence on effects
of these policies to date, consider the potential consequences of their
future extension, and examine policy alternatives to support the
Secretary's decision-making in these areas.
Question. As a doctor, I am proud to help lead the Senate
Comprehensive Care Caucus. The focus of this group is to improve
palliative care and hospice services. We must ensure Federal policies
are helping patients achieve the highest quality of life possible,
especially for those who are facing terminal illnesses.
If confirmed, can you comment on how you would prioritize the use
of ASPE's resources to study hospice and palliative care issues?
What do you believe are the most important gaps in data or research
related to hospice and palliative care?
Answer. ASPE staff have substantial expertise in Medicare policy,
long-term care services, the direct care workforce, hospice, and end-
of-life care. If confirmed, I would emphasize the importance of
research and evaluation in these domains that focuses on equitable
access to high quality end-of-life care, including in rural areas and
in home and community settings, as well as policy levers that can
improve well-being for both patients and their families facing terminal
illnesses.
______
Prepared Statement of Jay Curtis Shambaugh, Ph.D., Nominated to be
Under Secretary for International Affairs, Department of the Treasury
Chairman Wyden, Ranking Member Crapo, and distinguished members of
the committee, I am honored to appear before the committee today as you
consider my nomination to be Treasury Under Secretary for International
Affairs. I am thankful to have the support of President Biden, Vice
President Harris, and Secretary Yellen. If confirmed, it would be a
privilege to work with the distinguished public servants in
International Affairs at Treasury. I look forward to working closely
with this committee and your colleagues in Congress to pursue
international economic policies that further the interests of the
American people.
I want to thank my family for their support: my wife Lisa, who is
here with me today; my children Tyler and Jack; my sister; and my
parents Curt and Nancy Shambaugh.
My mother was a teacher; she volunteered at the local hospital and
in schools; and she eventually became the president of the school board
for the local public school system I attended. My father worked in
finance and also served as a trustee for our church. I learned from my
parents that public service and making a positive contribution in the
world is an important responsibility.
I've tried to carry this lesson with me, serving as a deacon in two
churches and coaching youth sports. I have also dedicated much of my
professional life to making a positive contribution in the world
through public service and engaging in public policy.
For the last 25 years, my career has been focused on economic
policy. My core research area has been empirical international
macroeconomics--the study of exchange rates, capital flows, and
spillovers across economies. I have published articles in top journals,
as well as a book on these questions. I am a research associate at the
National Bureau of Economic Research in International Finance and
Macroeconomics. I also have presented at major conferences and central
banks around the world, spent time as a visitor at the IMF, and have
taught international economics for over 20 years. My experience creates
a strong foundation to address many of the policy questions faced by
Treasury's Office of International Affairs.
At the same time, my experience is not just theoretical. During my
time at the White House Council of Economic Advisers, I attended many
strategic and economic dialogue meetings with Chinese officials and met
with officials from a number of countries. I also represented the U.S.
Government at the OECD in discussions related to economic issues. These
experiences have prepared me well to serve in the role of Under
Secretary, where international economic diplomacy is one of the many
responsibilities. I also had the opportunity to work on a wide range of
international economic issues--ranging from trade and development
economics to international finance and climate--preparing me for the
broad range of subjects covered by Treasury International Affairs.
I also have significant experience working on U.S. economic policy
issues, ranging from economic and wage growth, to energy and climate
issues, to regional disparities and the impact of trade shocks.
Studying these issues has prepared me to carefully consider how U.S.
global leadership on a range of economic issues affects the American
economy, American households, and American workers.
The last 2 decades have emphasized more than ever the importance of
our global economic policies and how those policies affect the U.S.
economy, our national security, and American families. Shifting trade
patterns and rising trade and competition with China have directly
impacted many U.S. communities. The global economic crisis after 2008
accentuated the importance of global growth to the health of our
economy. Dealing with the disruption of the flow of goods and parts
during the pandemic has highlighted the interconnectedness of our
economy. Most recently, U.S. global economic tools are being used to
respond to the illegal invasion of Ukraine by Russia, which further
underscores the importance of our economic diplomacy to protect
national security.
Interconnectedness, financial crises, shocks from trade,
complicated supply chains, unequal global outcomes, the links between
foreign and economic policies--these are the challenges of our time. If
confirmed, I look forward to working on these issues and consulting
closely with the members of this committee and Congress.
Thank you, Chairman Wyden, Ranking Member Crapo. I welcome your
questions.
______
SENATE FINANCE COMMITTEE
STATEMENT OF INFORMATION REQUESTED
OF NOMINEE
A. BIOGRAPHICAL INFORMATION
1. Name (include any former names used): Jay Curtis Shambaugh.
2. Position to which nominated: Under Secretary for International
Affairs, Treasury Department.
3. Date of nomination: March 7, 2022.
4. Address (list current residence, office, and mailing addresses):
5. Date and place of birth: February 20, 1970; Huntington, NY.
6. Marital status (include maiden name of wife or husband's name):
7. Names and ages of children:
8. Education (list all secondary and higher education institutions,
dates attended, degree received, and date degree granted):
Cold Spring Harbor High School.
Yale University 1988-1992 (BA in Ethics, Politics, and
Economics, 1992)
Fletcher School of Law and Diplomacy 1995-1997 (Master of Arts
in Law and Diplomacy, 1997).
University of California at Berkeley, 1997-2002 (Ph.D. in
Economics, 2002).
9. Employment record (list all jobs held since college, including the
title or description of job, name of employer, location of work, and
dates of employment for each job):
Mercer Management Consulting, 8/1992-6/1994, Research Analyst
(entry level consulting). New York, NY.
RIS Language School (Osaka Japan English Language School), 9/
1994-3/1995, English Teacher, Osaka, Japan.
Fletcher School of Law and Diplomacy, Research Assistant,
summer 1996, and Teaching Assistant, fall 1996, for Professor
Michael Klein. Medford, MA.
UC Berkeley Economics, Research Assistant and Teaching
Assistant, summer 1998-spring 2002. Berkeley, CA. (While a
Ph.D. student at UC Berkeley, I had various TA and RA positions
when not on full-fellowships (it varied over the years)).
Dartmouth College Economics Department, Assistant Professor and
Associate Professor, fall 2002-spring 2009. Hanover, NH.
White House Council of Economic Advisers, July 2009 to June
2011, Senior Economist for International Economics (1 year) and
Chief Economist (1 year), Washington, DC.
Georgetown University School of Business, Associate Professor,
August 2011-May 2012. Washington, DC.
GWU Elliot School of International Affairs, Associate
Professor, Full Professor, August 2012-present (on leave August
2015-January 2017), Washington, DC.
White House Council of Economic Advisers--Member, August 2015-
January 2017, Washington, DC.
Hamilton Project at Brookings Institution--Director, August
2017-July 2020, Washington, DC.
I have also held a number of part-time positions (often brief
visiting arrangements over summers or part-time during the
academic year.) These include:
Trinity College Institute for International Integration
Studies, fall 2005, visiting fellow. Dublin, Ireland (spent 5
months there while on sabbatical; limited responsibilities
beyond working on my own research).
IMF Visiting Scholar, various points in time, most significant
was from late 2011 to early 2013; shorter stints (1 week) as a
visitor in 2005 and 2008, Washington, DC.
INSEAD University visiting professor, May 2014-June 2015.
Fontainebleau, France, and Washington, DC (taught 7-week course
to MBA students in Fontainebleau, France; also taught 2-3
executive education courses in the U.S. in 2014-2015).
World Bank, summer 2015. Washington, DC (brief consulting
contract).
WashU at Brookings, 2017-2019. Washington, DC (on rare
occasions did a guest lecture for a fee).
IMF External Review Unit, 2018. Washington, DC (compensated for
participating in a 1-day review of IMF practices in 2018).
WestExec Advisers, August 2020-October 2020, Principal (3
hours per week), Washington, DC (advised on the global
economy).
Biden Transition Team, volunteer, member of the Agency Review
Team for Council of Economic Advisers.
Regenerative Crisis Response Committee, 2021. Virtual,
Washington, DC (received a stipend for participating).
Denny Center at Georgetown, March 2021-December 2021.
Washington, DC (consulting project for a research center at
Georgetown).
I have also on rare occasions written a commissioned paper or
given a speech for pay:
Pearson Education (2000-2002, plus occasional revision during
2002-2008), authored study guide to a textbook.
MIT Press, 2008-09, authored a book.
Brookings Papers on Economic Activity, spring 2012,
commissioned piece on the euro crisis.
Bank of Japan, May 2013, Tokyo, Japan, stipend for speaking at
conference.
Boston Federal Reserve, fall 2019, commissioned piece.
University of Pittsburgh, fall 2019, Pittsburgh, PA, speaking
at a conference.
Annals of the American Academy of Political and Social Science,
2021, authoring a paper.
10. Government experience (list any current and former advisory,
consultative, honorary, or other part-time service or positions with
Federal, State, or local governments held since college, including
dates, other than those listed above):
Government service is listed above.
11. Business relationships (list all current and former positions held
as an officer, director, trustee, partner (e.g.. limited partner, non-
voting, etc.), proprietor, agent, representative, or consultant of any
corporation, company, firm, partnership, other business enterprise, or
educational or other institution):
Director of the Hamilton Project at Brookings, 2017-2019.
Director of the Institute for International Economic Policy at
GWU, 2014-2015; 2020-present (part of my job at GW).
Member, Board of Econofact (not paid, no fiduciary
responsibility).
Member, Advisory Council of The Hamilton Project (not paid, no
fiduciary responsibility).
12. Memberships (list all current and former memberships, as well as
any current and former offices held in professional, fraternal,
scholarly, civic, business, charitable, and other organizations dating
back to college, including dates for these memberships and offices):
Member, Westmoreland Congregational United Church of Christ,
2011-present. (I was a deacon for 1-year (in 2015), but had to
resign when I became a Member of the Council for Economic
Advisors.)
Member, American Economics Association, 2002-2022; Member,
Committee on Government Relations, 2020-2022.
Non-resident Senior Fellow, Brookings Institution, 2020-
present.
Research Associate, the National Bureau of Economic Research,
2007-present.
Associate Editor, Journal of International Economics, 2017-
present.
Member, Board of Econofact, 2018-present.
Member, Advisory Council, Hamilton Project at Brookings, 2020-
present.
Previous affiliations:
Member, Regenerative Crisis Response Committee, 2020-2021.
Member, Biden Transition Team, 2020.
Member, National Academy of Sciences, National Research
Council, 2012-2013.
Non-resident fellow, Atlantic Council, 3/2015-8/2015.
Member, First Congregational Church (UCC) in Lebanon, NH, 2002-
2009; on the Diaconate, 2006-2008.
Visiting fellow, Institute for International Integration
Studies at Trinity College Dublin, 2005-2008.
College Memberships during 1988-1992: Yale Marching Band,
Calhoun Literary Arts Magazine (editorial staff, editor for 1
year), various intramural sports teams.
13. Political affiliations and activities:
a. List all public offices for which you have been a candidate
dating back to the age of 18.
None.
b. List all memberships and offices held in and services
rendered to all political parties or election committees,
currently and during the last 10 years prior to the date of
your nomination.
None.
c. Itemize all political contributions to any individual,
campaign organization, political party, political action
committee, or similar entity of $50 or more for the past 10
years prior to the date of your nomination.
2012 $315 Obama for America.
2020 $535.58 Biden for President: Biden Victory Fund.
2020 $500 Biden Action Fund.
2020 $100 Chatterji, Aaron Kumar, North Carolina
2020 $100 McGrath for U.S. Senate (via ACTBLUE).
2020 $100 Cal (Cunningham) for NC (via ACTBLUE).
2020 $100 Sara Gideon for Maine (via ACTBLUE).
2020 $100 Theresa Greenfield for Iowa (via ACTBLUE).
2020 $100 Alyse (Galvin) for Alaska (via ACTBLUE).
2020 $100 (Kathleen) Williams for Montana (via ACTBLUE).
14. Honors and awards (list all scholarships, fellowships, honorary
degrees, honorary society memberships, military medals, and any other
special recognitions for outstanding service or achievement received
since the age of 18):
SOAR research support (GW) 2013-4
Rockefeller Center Faculty Research grant 2006-7
(Dartmouth)
Foundation Banque de France research grant 2006-7
Dartmouth Junior Faculty Fellowship 2006
Rockefeller Scholar (Dartmouth) 2005-6, 2003-4
Walter and Constance Burke Award 2002
Simpson Fellowship in International and Comparative 2001-2
Studies
UC Berkeley Dean's Fellowship 2001
UC Berkeley First year Fellowship 1997-8
Foreign Language and Area Studies Fellowship 1996-7
(Fletcher)
Graduated cum laude and with distinction in major 1992
(Yale)
15. Published writings (list the titles, publishers, dates, and
hyperlinks (as applicable) of all books, articles, reports, blog posts,
or other published materials you have written):
List of Publications
Books:
Exchange Rate Regimes in the Modern Era (with Michael Klein)--MIT
Press (Fall 2009)
Publications:
Academic publications, both final versions and working papers, can be
found here: https://ideas.repec.org/f/psh497.html
The Effect of Fixed Exchange Rates on Monetary Policy, Quarterly
Journal of Economics, vol. 119 no. 1, February 2004, p.
301-352, https://academic.oup.com/qje/article-abstract/119/
1/301/1876076?redirectedFrom=fulltext
Monetary Sovereignty, Exchange Rates, and Capital Controls: The
Trilemma in the Interwar Period, IMF Staff Papers, volume
51 special issue 2004, pp. 75-108 (with Maurice Obstfeld
and Alan M. Taylor), https://ideas.repec.org/a/pal/imfstp/
v51y2004is1p75-108.html
The Trilemma in History: Tradeoffs Among Exchange Rates, Monetary
Policies, and Capital Mobility, Review of Economics and
Statistics, vol. 87, issue 3, August 2005, pp. 423-38 (with
Maurice Obstfeld and Alan M. Taylor), https://
ideas.repec.org/a/tpr/restat/v87y2005i3p423-438.html
An Experiment With Multiple Currencies: The American Monetary System
From 1838-60, Explorations in Economic History, vol. 43,
October 2006, 609-45, https://www.sciencedirect.com/
science/article/abs/pii/S0014498305000458
Fixed Exchange Rates and Trade, Journal of International Economics,
vol. 70, December 2006, pp. 359-83 [also NBER Working Paper
no. 10696] (with Michael Klein), https://
www.sciencedirect.com/science/article/abs/pii/S00221996060
00250
A New Look at Pass-through, Journal of International Money and
Finance, volume 27, issue 4, pages 560-591 (June 2008),
https://www.sciencedirect.com/science/article/abs/pii/
S0261560608000144
The Impact of Foreign Interest Rates on the Economy: The Role of the
Exchange Rate Regime, Journal of International Economics,
vol. 74, 2008, 341-61 [available as IIIS Discussion Paper
no. 116 or IMF Working Paper 06/37] (with Julian di
Giovanni), https://ideas.repec.org/a/eee/inecon/v74y2008i2
p341-361.html
The Dynamics of Exchange Rate Regimes: Fixes, Floats, and Flips,
Journal of International Economics, volume 75, issue 1,
pages 70-92 (May 2008) [previous version (The Nature of
Exchange Rate Regimes) available as NBER Working Paper no.
12729] (with Michael Klein), https://www.sciencedirect.
com/science/article/abs/pii/S0022199607001304
Financial Instability, Reserves, and Central Bank Swap Lines in the
Panic of 2008, American Economic Review (Papers and
Proceedings), May 2009 [available as NBER Working Paper no.
14826] (with Maurice Obstfeld and Alan M. Taylor), https://
www.aeaweb.org/articles?id=10.1257/aer.99.2.480
Financial Exchange Rates and International Currency Exposures,
American Economic Review, vol. 100, no. 1, March 2010, pp.
518-540 [available as NBER Working Paper no. 13433] (with
Philip Lane), https://www.aeaweb.org/articles?id=10.1257/
aer.100.1.518
Financial Stability, the Trilemma, and International Reserves,
American Economic Association Journal--Macroeconomics, vol.
2, no. 2, April 2010, pp. 57-94 [available as NBER Working
Paper no. 14127] (with Alan Taylor and Maury Obstfeld),
https://www.aeaweb.org/articles?id=10.1257/mac.2.2.57
The Long or Short of It: Determinants of Foreign Currency Exposure in
External Balance Sheets, Journal of International
Economics, vol. 80, issue 1, pp. 33-44, January 2010
[available as NBER Working Paper no. 14909] (with Philip
Lane), https://www.sciencedirect.com/science/article/abs/
pii/S00221996090
01202
Global Savings and Global Investment: The Transmission of Identified
Fiscal Shocks, American Economic Association Journal--
Economic Policy, vol. 4(2), pages 95-114, May 2012
[available as NBER Working Paper no. 15113] (with James
Feyrer), https://www.aeaweb.org/articles?id=10.1257/
pol.4.2.95
The Euro's Three Crises, Brookings Papers on Economic Activity,
Spring 2012, pp. 157-211, https://www.brookings.edu/wp-
content/uploads/2012/03/2012a_
Shambaugh.pdf
Rethinking Exchange Rate Regimes After the Crisis, 2014, in, What
Have We Learned?: Macroeconomic Policy After the Crisis,
ed. George A. Akerlof, Olivier J. Blanchard, David Romer,
Joseph E. Stiglitz, MIT Press [book chapter, no online
version]
Adjustment in Euro Area Deficit Countries: Progress, Challenges, and
Policies, IMF Staff Discussion Note, no. 14/7, July 2014
(with Thierry Tressel, Shengzu Wang, Joong Shik Kang),
https://www.imf.org/-/media/Websites/IMF/imported-full-
text-pdf/external/pubs/ft/sdn/2014/_sdn1407.ashx
International Currency Exposures, Valuation Effects, and the Global
Financial Crisis, Journal of International Economics, 96
(2015) S98-S109 [available as NBER Working Paper no. 20820,
January 2015] (with Agustin S. Benetrix and Philip R.
Lane), https://www.sciencedirect.com/science/article/abs/
pii/S0022199614001226
Rounding the Corners of the Trilemma: Sources of Monetary Policy
Autonomy, American Economic Association Journal--
Macroeconomics, October 2015, volume 7 no. 4, pp. 33-66
[available as NBER Working Paper no 19461, September 2013]
(with Michael Klein), https://www.aeaweb.org/articles?id=
10.1257/mac.20130237
The Rise and Fall of European Current Account Deficits, Economic
Policy, volume 31, issue 85, January 2016 (joint with Joong
Shik Kang), https://academic.
oup.com/economicpolicy/article-abstract/31/85/153/
2392422?redirectedFrom
=fulltext
How Fast Can We Grow, and Why That Matters, 2017, in Economics and
Policy in the Age of Trump, ed. Chad Bown, VoxEU CEPR book,
https://voxeu.org/content/economics-and-policy-age-trump
Demand and Global Growth, 2017, in Proceedings of the Conference of
Councils of Economic Policy, German Council of Economic
Experts (meeting in June 2016), https://
www.sachverstaendigenrat-wirtschaft.de/fileadmin/
dateiablage
/internationale-konferenz/
International_Conference_of_Councils_of_Economic_
Policy_2016.pdf
Rethinking Fiscal Policy, in Evolution or Revolution (edited by
Olivier Blanchard and Larry Summers), MIT Press, April 2019
[book chapter, no online version]
Trade Shocks and the Shifting Landscape of U.S. Manufacturing,
Journal of International Money and Finance, volume 111,
March 2021 (co-authored with Katherine Eriksson, Katheryn
Russ, and Minfei Xu) [NBER Working Paper no. 25646],
https://www.sciencedirect.com/science/article/abs/pii/
S0261560
620302102
The Recovery From the Great Recession: A Long, Evolving Expansion
2021, Annals of the American Academy of Political and
Social Science, May 2021, vol. 695, issue 1 (joint with
Michael Strain) [NBER Working Paper 28452], https://
journals.sagepub.com/doi/10.1177/00027162211022305
Working Papers:
The World Interest Rate (joint with Hang Zhou), 2020
[submitted, no online version]
Education and unequal regional labor market outcomes: The
persistence of regional shocks and employment responses to
trade shocks (joint with Katheryn Russ). Prepared for the
Federal Reserve Bank of Boston Conference Session: Rethinking
regional responses to economic shocks, September 2019, https://
www.bostonfed.org/-/media/Images/research-conference-2019/
papers/Session-2-Russ-and-Shambaugh.pdf
The Evolution of Current Account Deficits in the GIPS and the
Baltics: Many Paths to the Same Endpoint--IMF Working Paper 13/
169, 2013, joint with Joong Shik Kang, https://www.imf.org/-/
media/Websites/IMF/imported-full-text-pdf/external/pubs/ft/wp/
2013/_wp13169.ashx
Progress Towards External Adjustment in the Euro Area Periphery
and the Baltics--IMF Working Paper 14/131, 2014, joint with
Joong Shik Kang, https://www.imf.org/-/media/Websites/IMF/
imported-full-text-pdf/external/pubs/ft/wp/2014/_wp14131.ashx
Books Edited
Tackling the Tax Code: Efficient and Equitable Ways to Raise
Revenue (co-edited with Ryan Nunn), The Hamilton Project at
Brookings, 2020, https://www.hamiltonproject.org/assets/files/
TaxBookforWeb_12320.pdf
Recession Ready: Fiscal Policies to Stabilize the American
Economy (co-edited with Heather Boushey and Ryan Nunn), The
Hamilton Project at Brookings, 2019, https://
www.hamiltonproject.org/assets/files/AutomaticStabilizers_Full
Book_web_20190508.pdf
Place Based Policies for Shared Economic Growth (co-edited with
Ryan Nunn), The Hamilton Project at Brookings, 2018, https://
www.hamiltonproject.org/papers/
place_based_policies_for_shared_economic_growth
Revitalizing Wage Growth (co-edited with Ryan Nunn), The
Hamilton Project at Brookings, 2018, https://
www.hamiltonproject.org/assets/files/revitalizing_
wage_growth_full_book.pdf
Longer Policy Pieces
How the Pandemic Is Changing the Economy. The Hamilton Project
at Brookings (with Wendy Edelberg), July 16, 2020, https://
www.hamiltonproject.org/papers/
how_the_pandemic_is_changing_the_economy
The Slowdown in Productivity Growth and Policies to Restore it.
The Hamilton Project at Brookings (with Emily Moss and Ryan
Nunn), June 17, 2020, https://www.hamiltonproject.org/papers/
the_slowdown_in_productivity_growth
_and_policies_that_can_restore_it
Who Stands to Lose if the Final SNAP Work Requirement Rule
Takes Effect?, The Hamilton Project at Brookings (with Lauren
Bauer and Jana Parsons), April 6, 2020, https://
www.hamiltonproject.org/papers/who_stands_to_lose_if
_the_final_snap_work_requirement_rule_takes_effect
A Dozen Facts About the Economics of the U.S. Health-Care
System. The Hamilton Project at Brookings (with Ryan Nunn and
Jana Parsons), March 10, 2020, https://www.hamiltonproject.org/
papers/a_dozen_facts_about_the_economics_
of_the_u.s_health_care_system
The Economics of Federal Tax Policy (with Emily Moss and Ryan
Nunn) in Tackling the Tax Code: Efficient and Equitable Ways to
Raise Revenue (co-
edited with Ryan Nunn), The Hamilton Project at Brookings,
2020, https://www.hamiltonproject.org/papers/
the_economics_of_federal_tax_policy
Ten Facts About the Economics of Climate Change and Climate
Policy. The Hamilton Project, The Stanford Institute for
Economic Policy Research, October 23, 2019, https://
www.hamiltonproject.org/papers/ten_facts_about_the_econom
ics_of_climate_change_and_climate_policy
Labor Force Nonparticipation: Trends, Causes, and Policy
Solutions. The Hamilton Project at Brookings (with Ryan Nunn
and Jana Parsons), October 3, 2019, https://
www.hamiltonproject.org/papers/
labor_force_nonparticipation_trends_
causes_and_policy_solutions
Employment, Education, and the Time Use of American Youth. The
Hamilton Project at Brookings (with Lauren Bauer, Emily Moss,
and Ryan Nunn), September 5, 2019, https://
www.hamiltonproject.org/papers/employment_educa
tion_and_the_time_use_of_american_youth
The Shift in Private Sector Union Participation: Explanations
and Effects. The Hamilton Project at Brookings (with Ryan Nunn
and Jimmy O'Donnell),
August 22, 2019, https://www.hamiltonproject.org/assets/files/
UnionsEA_
Web_8.19.
pdf
The Damage Done by Recessions and How to Respond, May 2019 (co-
authored with Heather Boushey, Jimmy O'Donnell, and Ryan Nunn)
in Recession Ready: Fiscal Policies to Stabilize the American
Economy (co-edited with Heather Boushey and Ryan Nunn), The
Hamilton Project at Brookings, 2019, https://
www.hamiltonproject.org/papers/
the_damage_done_by_recessions_and_how_to_
respond
How Do Work Requirement Waivers Help SNAP Respond to a
Recession?, April 2019 (co-authored with Lauren Bauer and Jana
Parsons), The Hamilton Project at Brookings, https://
www.hamiltonproject.org/assets/files/EA-SNAP-Triggers
_final.pdf
Nine Facts About Monetary Sanctions in the Criminal Justice
System (co-
authored with Ryan Nunn and Patrick Liu), The Hamilton Project
at Brookings, March 2019, https://www.hamiltonproject.org/
papers/nine_facts_about_mone
tary_sanctions_in_the_criminal_justice_system
Nine Facts About State and Local Policy (co-authored with Ryan
Nunn and Jana Parsons). The Hamilton Project at Brookings,
January 2019, https://www.hamiltonproject.org/papers/
nine_facts_about_state_and_local_policy
The Economics of Bail and Pretrial Detention, December 2018,
co-authored with Patrick Liu and Ryan Nunn. The Hamilton
Project at Brookings, https://www.hamiltonproject.org/papers/
the_economics_of_bail_and_pretrial_detention
Labor Market Considerations for a National Jobs Guarantee
(joint with Jimmy O'Donnell and Ryan Nunn). The Hamilton
Project at Brookings, December 2018, https://
www.hamiltonproject.org/papers/labor_market_considerations_for
_a_national_job_guarantee
A Dozen Facts About Immigration (co-authored with Ryan Nunn and
Jimmy O'Donnell). The Hamilton Project at Brookings, October
2018, https://www.hamiltonproject.org/papers/
a_dozen_facts_about_immigration
Work Requirements and Safety Net Programs (co-authored with
Lauren Bauer and Diane Whitmore Schanzenbach), October 2018.
The Hamilton Project at Brookings, https://
www.hamiltonproject.org/papers/work_requirements_and_
safety_net_programs
Introduction to Place Based Policies (co-authored with Ryan
Nunn and Jana Parsons) in Place Based Policies for Shared
Economic Growth (co-edited with Ryan Nunn), The Hamilton
Project at Brookings, September 2018, https://
www.hamiltonproject.org/assets/files/
ES_THP_PBP_book_20190425.pdf
The Geography of Prosperity (co-authored with Ryan Nunn and
Jana Parsons) in Place Based Policies for Shared Economic
Growth (co-edited with Ryan Nunn), The Hamilton Project at
Brookings, September 2018, https://www.
hamiltonproject.org/papers/the_geography_of_prosperity
Where Work Pays (co-authored with Lauren Bauer and Audrey
Breitwieser, and Ryan Nunn), The Hamilton Project at Brookings,
July 2018, https://www.
hamiltonproject.org/papers/where_work_pays_report
The State of Competition and Dynamism: Facts About
Concentration, Start-ups, and Related Policies (co-authored
with Audrey Breitwieser, Patrick Liu, and Ryan Nunn), The
Hamilton Project at Brookings, June 2018, https://
www.hamiltonproject.org/papers/
the_state_of_competition_and_dynamism_facts
_about_concentration_start_
Reducing Chronic Absenteeism Under the Every Student Succeeds
Act (strategy paper), co-authored with Lauren Bauer, Patrick
Liu, Diane Whitmore Schanzenbach, April 2018. The Hamilton
Project at Brookings, https://www.
hamiltonproject.org/papers/
reducing_chronic_absenteeism_under_the_every_
student_succeeds_act
Introduction to Revitalizing Wage Growth (co-authored with Ryan
Nunn and Becca Portman), in Revitalizing Wage Growth, February
2018. The Hamilton Project at Brookings, https://
www.hamiltonproject.org/papers/revitalizing
_wage_growth_policies_to_get_american_workers_a_raise
How Declining Dynamism Affects Wages (co-authored with Ryan
Nunn and Patrick Liu) in Revitalizing Wage Growth, February
2018. The Hamilton Project at Brookings, https://
www.hamiltonproject.org/papers/how_declining_dynamism
_affects_wages
Returning to Education: The Hamilton Project on Human Capital
and Wages (co-authored with Lauren Bauer and Audrey
Breitwieser) in Revitalizing Wage Growth, February 2018. The
Hamilton Project at Brookings, https://www.
hamiltonproject.org/papers/
returning_to_education_the_hamilton_project_on_
human_capital_and_wages
Lessons From the Rise of Women's Labor Force Participation in
Japan (co-
authored with Ryan Nunn and Becca Portman), December 2017. The
Hamilton Project at Brookings, https://www.hamiltonproject.org/
papers/lessons_from_the
_rise_of_womens_labor_force_participation_in_japan
Eleven Facts About Innovation and Patents (co-authored with
Ryan Nunn and Becca Portman), December 2017. The Hamilton
Project at Brookings, https://www.hamiltonproject.org/papers/
eleven_facts_about_innovation_and_patents
Who Is Poor in the United States? A Hamilton Project Annual
Report (co-
authored with Lauren Bauer and Audrey Breitwieser), October
2017. The Hamilton Project at Brookings, https://
www.hamiltonproject.org/papers/who_is_
poor_in_the_united_states_a_hamilton_project_annual_report
Thirteen Facts about Wage Growth (co-authored with Ryan Nunn,
Patrick Liu, Greg Nantz), September 2017. The Hamilton Project
at Brookings, https://www.hamiltonproject.org/papers/
thirteen_facts_about_wage_growth
``How Should We Think About This Recovery?'' Speech at
Macroeconomic Advisers' 26th Annual Policy Seminar, September
14, 2016, https://obamawhite
house.archives.gov/sites/default/files/docs/
20160914_cea_shambaugh_macro
advisers.pdf
``Why the United States Needs the World to Grow.'' Speech at
Society of American Business Editors and Writers, May 21, 2016,
https://obamawhitehouse
.archives.gov/sites/default/files/page/files/
20160521_sabew_conference_cea.pdf
Reviews, online contributions, and others
What ``Transitory'' Inflation Really Means, Barron's, August
12, 2021, https://www.barrons.com/articles/what-transitory-
inflation-really-means-51628785705
Don't overreact to inflation data this spring, Brookings Blog
Post, April 8, 2021, https://www.hamiltonproject.org/blog/
dont_overreact_to_inflation_data_this_
spring
How Should We Think About 2020 GDP Growth? (with Michael
Klein), Econfact, February 16, 2021, https://econofact.org/how-
should-we-think-about-2020-gdp-growth
Don't let flashy 3rd quarter GDP growth fool you, the economy
is still in a big hole, Brookings Blog Post, October 26, 2020,
https://www.brookings.edu/blog/up-front/2020/10/26/dont-let-
flashy-3rd-quarter-gdp-growth-fool-you-the-economy-is-still-in-
a-big-hole/
The Role of Automatic Stabilizers in Fighting Recessions,
Econfact, October 13, 2020, https://econofact.org/the-role-of-
automatic-stabilizers-in-fighting-recessions
``A $1.5 Trillion Compromise Democrats Can't Ignore'' (original
title: Americans Need More Virus Aid), New York Times op-ed,
September 17, 2020, https://www.nytimes.com/2020/09/17/opinion/
covid-relief-plan-congress.html
Who Are the Potentially Misclassified in the Employment Report?
(with Lauren Bauer, Wendy Edelberg, Jimmy O'Donnell), Brookings
and THP Blog post, June 30, 2020, https://
www.hamiltonproject.org/blog/who_are_the_potentially_mis
classified_in_the_employment_report
Examining Options to Boost Essential Worker Wages During the
Pandemic (with Ryan Nunn, Jimmy O'Donnell), Brookings and THP
Blog post, June 4, 2020, https://www.hamiltonproject.org/blog/
examining_options_to_boost_
essential_worker_wages_during_the_pandemic
Incomes Have Crashed. How Much Has Unemployment Insurance
Helped? (with Ryan Nunn, Jana Parsons), Brookings and THP Blog
post, May 13, 2020, https://www.hamiltonproject.org/blog/
incomes_have_crashed_how_much_has_
unemployment_insurance_helped
How to Reduce Emissions as Much as Possible at the Lowest Cost
(with Melanie Gilarsky, Kriston McIntosh), Brookings and THP
Blog post, April 22, 2020, https://www.hamiltonproject.org/
blog/how_to_reduce_emissions_as_much
_as_possible_at_the_lowest_cost
We Need to Let Economic Data Guide Further Economic Policy
Responses to COVID-19, Brookings and THP Blog post, April 20,
2020, https://www.
hamiltonproject.org/blog/
we_need_to_let_economic_data_guide_further_economic
_policy_responses_to_covid_19
We are already in a deep recession--can we make it a short
one?, The Hill, April 8, 2020, https://thehill.com/opinion/
finance/491761-we-are-already-in-a-deep-recession-can-we-make-
it-a-short-one
We Are Already in a Recession: Can We Make It a Short One?
Brookings and THP Blog post, April 3, 2020, https://
www.hamiltonproject.org/blog/we_are_
already_in_a_recession_can_we_make_it_a_short_one
COVID-19 and the U.S. Economy: FAQ on the Economic Impact and
Policy Response, Brookings and THP Blog post, March 23, 2020,
https://www.hamilton
project.org/blog/
covid_19_and_the_u.s_economy_faq_on_the_economic_impact_
policy_response
Coronavirus response must include bold fiscal policy, The Hill,
March 23, 2020, https://thehill.com/opinion/finance/488920-
coronavirus-response-must-include-bold-fiscal-policy
The Economic Policy Response to COVID-19: What Comes Next?
Brookings and THP Blog post, March 16, 2020, https://
www.hamiltonproject.org/blog/
the_economic_policy_response_to_covid_19_what_comes_next
Five things fiscal policy could do to fight the COVID-19
outbreak, Marketwatch, March 4, 2020, https://
www.marketwatch.com/story/five-things-fiscal-policy-could-do-
to-fight-a-covid-19-outbreak-2020-03-04
What Should a Fiscal Response to a COVID-19 Outbreak Look Like?
Brookings and THP Blog post, March 3, 2020, https://
www.hamiltonproject.org/blog/
what_should_a_fiscal_response_to_a_covid_19_outbreak_look_like
Examining the Black-White Wealth Gap (with Kriston McIntosh,
Emily Moss, Ryan Nunn), Brookings and THP Blog post, February
26, 2020, https://www.hamiltonproject.org/blog/
examining_the_black_white_wealth_gap
Labor Market Data Suggests Household Income Growth Was Strong
in 2019 (with Emily Moss, Ryan Nunn), Brookings and THP Blog
post, February 6, 2020, https://www.hamiltonproject.org/blog/
labor_market_data_suggests_
household_income_growth_was_strong_in_2019
Innovative options for raising revenue, The Hill, February 1,
2020 (with Kriston McIntosh, Ryan Nunn), https://thehill.com/
opinion/finance/480995-innovative-options-for-raising-revenue
Who Was Poor in the U.S. in 2018? (with Lauren Bauer, Emily
Moss), Brookings and THP Blog post, December 5, 2019, https://
www.hamiltonproject.org/blog/who_was_poor_in_the_u.s_in_2018
New SNAP Rule Change Just Made It Harder to Combat Future
Recessions (with Lauren Bauer, Jana Parsons), Brookings and THP
Blog post, December 4, 2019, https://www.hamiltonproject.org/
blog/new_snap_rule_just_made_it_
harder_to_combat_recession
Veterans are Engaged in the Labor Force and in the Classroom
(with Lauren Bauer, Santiago Deambrosi, Emily Moss), Brookings
and THP Blog post, October 31, 2019, https://
www.hamiltonproject.org/blog/veterans_are_engaged_
in_the_labor_force_and_in_the_classroom
The Alarming Employment Trends That the Jobs Report Won't Tell
You (with Kriston McIntosh, Ryan Nunn), CNN Business, October
4, 2019, https://www.
cnn.com/2019/10/03/perspectives/jobs-report-employment-data/
index.html
Who Watches Out for Workers? (with Kriston McIntosh, Ryan Nunn,
and Jay Shambaugh), Real Clear Markets, August 27, 2019,
https://www.
realclearmarkets.com/articles/2019/08/27/
who_watches_out_for_workers_
103879.html
Race and Underemployment in the U.S. Labor Market (with Ryan
Nunn, Jana Parsons), Brookings and THP Blog post, August 1,
2019, https://www.hamilton
project.org/blog/
race_and_underemployment_in_the_u.s_labor_market
The longest-ever economic recovery will end--here's what we can
do to prepare, The Hill, July 5, 2019, with Heather Boushey,
https://thehill.com/opinion/finance/451699-the-now-longest-
ever-economic-recovery-will-end-heres-what-we-can-do-to
All School and No Work Becoming the Norm for American Teens
(with Lauren Bauer, Patrick Liu, Emily Moss, Ryan Nunn),
Brookings and THP Blog post, July 2, 2019, https://
www.hamiltonproject.org/blog/all_school_and_no_work_
becoming_the_norm_for_american_teens
Wise Infrastructure Spending Can Stabilize the Economy, Boost
Climate, Real Clear Markets (with Stacy Anderson, Ryan Nunn),
June 23, 2019, https://www.realclearmarkets.com/articles/2019/
06/28/wise_infrastructure_spending
_can_stabilize_the_economy_boost_climate_103801.html
How Will We Know When a Recession Is Coming? (with Ryan Nunn,
Jana Parsons), Brookings and THP Blog post, June 6, 2019,
https://www.hamilton
project.org/blog/how_will_we_know_when_a_recession_is_coming
How Difficult Is It to Find a Job? (joint with Ryan Nunn and
Jana Parsons), Brookings and THP blog post, May 2, 2019,
https://www.hamiltonproject.org/blog/
how_difficult_is_it_to_find_a_job
Is the Continued Rise of Older Americans in the Workforce
Necessary for Future Growth? (joint with Lauren Bauer and
Patrick Liu), Brookings and THP blog post, April 4, 2019,
https://www.hamiltonproject.org/blog/is_the_contin
ued_rise_of_older_americans_in_the_workforce_necessary_for_fut
Women Staging a Labor Force Comeback (joint with Stacy
Anderson, Lauren Bauer, and Ryan Nunn), Brookings and THP blog
post, March 26, 2019, https://www.hamiltonproject.org/blog/
women_staging_a_labor_force_comeback
Has Job Growth Reached America's Struggling Places? (joint with
Patrick Liu, Ryan Nunn, and Jana Parsons), Brookings and THP
blog post, March 7, 2019, https://www.hamiltonproject.org/blog/
has_job_growth_reached_americas_strug
gling_places
How Fast Did the Economy Grow Last Year?, March 5, 2019,
Econofact (joint with Michael Klein), https://econofact.org/
how-fast-did-the-economy-grow-last-year
An Interactive Exploration of the Geography of Prosperity
(joint with Ryan Nunn and Jana Parsons), Brookings and THP blog
post, February 28, 2019, https://www.hamiltonproject.org/
charts/exploring_the_geography_of_prosperity
How Racial and Regional Inequality Affect Economic Opportunity
(joint with Ryan Nunn and Stacy A. Anderson), Brookings and THP
blog post, February 15, 2019, https://www.hamiltonproject.org/
blog/how_racial_and_regional_in
equality_affect_economic_outcomes
Employment and Wage Gains Lifted Household Incomes in Late 2018
(joint with Ryan Nunn), Brookings and THP blog post, January
31, 2019, https://www.hamiltonproject.org/blog/
household_income_likely_continued_to_grow_as_
employment_and_wage_gains_lift
The Hamilton Project: A Year in Figures (joint with full THP
team), Brookings and THP blog post, December 17, 2018, https://
www.hamiltonproject.org/blog/
the_hamilton_project_a_year_in_figures
Six Charts on the Immigrants Who Call the US Home (joint with
Kriston McIntosh and Ryan Nunn) (appeared in BBC News),
November 29, 2018, https://www.bbc.com/news/world-46034400
Get moving: Relocating can help boost workers' wages (joint
with Ryan Nunn) (appeared in The Hill), November 26, 2018,
https://thehill.com/opinion/finance/418216-get-moving-for-
better-jobs-and-higher-wages-workers-must-relocate
Americans Aren't Moving to Economic Opportunity (joint with
Ryan Nunn and Jana Parsons), Brookings and THP blog post
November 19, 2018, https://www.hamiltonproject.org/blog/
americans_arent_moving_to_economic_opportu
nity
Health conditions keep many SNAP participants out of the labor
force (joint with Lauren Bauer), Brookings and THP blog post,
November 1, 2018, https://www.hamiltonproject.org/blog/
health_conditions_keep_many_snap_participants
_out_of_the_labor_force
The Labor Market Is Booming, Why Aren't Your Wages? (joint with
Ryan Nunn) (appeared in The Hill), October 26, 2018, https://
thehill.com/opinion/finance/412812-the-economy-is-booming-why-
arent-your-wages
Place-Based Policies for Shared Economic Growth (joint with
Kriston McIntosh and Ryan Nunn) (appeared in Real Clear
Markets), October 19, 2018, https://www.realclearmarkets.com/
articles/2018/10/19/placed-based_policies_for_
shared_economic_growth_103456.html
If Real Wages Aren't Rising, How Is Household Income Going Up?
(joint with Ryan Nunn), Brookings and THP blog post, October 4,
2018 https://www.
hamiltonproject.org/blog/
if_real_wages_arent_rising_how_is_household_income
_going_up
The Places America's Rich and Poor Call Home (joint with
Kriston McIntosh and Ryan Nunn) (appeared in BBC News), October
2, 2018, https://www.bbc.com/news/world-us-canada-45602535
Workers with Low Levels of Education Still Haven't Recovered
From the Recession (joint with Lauren Bauer), Brookings and THP
blog post, September 6, 2018, https://www.hamiltonproject.org/
blog/employment_rate_gap_workers_
with_low_levels_of_education_still_havent_recovered
Supporting Start-ups With Better Management Practices (joint
with Ryan Nunn), Brookings and THP blog post, August 14, 2018,
https://www.hamilton
project.org/blog/
supporting_start_ups_with_better_management_practices
Why should NC reward big companies over entrepreneurs? (joint
with Aaron Chatterji), The News and Observer, August 3, 2018,
https://www.hamilton
project.org/policy_responses/
why_should_nc_reward_big_companies_over_entre
preneurs
The Recent Rebound in Prime-Age Labor Force Participation
(joint with Audrey Breitwieser and Ryan Nunn), Brookings and
THP blog post, August 2, 2018, https://www.hamiltonproject.org/
blog/the_recent_rebound_in_prime_age_labor_
force_participation
San Francisco: Where a Six-Figure Salary Is ``Low Income''
(joint with Ryan Nunn), appeared in BBC News, July 10, 2018,
https://www.bbc.com/news/world-us-canada-44725026
American markets need more competition and more new businesses
(joint with Ryan Nunn), The Brookings Institution, June 13,
2018, https://www.
brookings.edu/articles/american-markets-need-more-competition-
and-more-new-businesses/
Independent Workers and the Modern Labor Market (joint with
Lauren Bauer and Ryan Nunn), Brookings and THP blog post, June
7, 2018, https://www.hamiltonproject.org/blog/
independent_workers_and_the_modern_labor_
market
``Why We Need to Help Kids Go to College Wherever They Want,''
CNN Money (co-authored with Abigail Wozniak), April 2018,
https://money.cnn.com/2018/04/18/pf/college/college-relocation-
policy-opinion/index.html
``Policy Actions That Would Revitalize Wage Growth,'' Real
Clear Markets (co-authored with Ryan Nunn), April 2018, https:/
/www.realclearmarkets.com/articles/2018/04/17/
policy_actions_that_would_revitalize_wage_growth_103236.
html
``How Women Are Still Left Behind in the Labor Market,''
Brookings and THP blog post (co-authored with Ryan Nunn), April
2018, https://www.hamilton
project.org/blog/
how_women_are_still_left_behind_in_the_labor_market
``Making Sound Forecasts Is Essential for Budgets to Matter,''
THP blog post, February 2018, https://www.hamiltonproject.org/
blog/making_sound_forecasts
_is_essential_for_budgets_to_matter
``The Average American Worker Did Not Get Much of a Raise Last
Year,'' THP blog post, January 2018, https://
www.hamiltonproject.org/blog/the_average_
american_worker_did_not_get_much_of_a_raise_last_year
``We Need More Women and Minorities in STEM Fields,'' Real
Clear Markets (co-authored with Becca Portman), January 2018,
https://www.
realclearmarkets.com/articles/2018/01/09/
we_need_more_women_and_
minorities_in_stem_fields_103096.html
``Who are the poor Americans?'', BBC News, December 2017,
https://www.bbc.com/news/world-us-canada-41930107
``Removing Barriers to Female Labor-Force Participation,'' Real
Clear Markets (co-authored with Ryan Nunn and Becca Portman),
November 2017, https://www.realclearmarkets.com/articles/2017/
11/01/removing_barriers_to_female_
labor-force_participation_102960.html
``Why Wages Aren't Growing in America,'' Harvard Business
Review (co-
authored with Ryan Nunn), October 2017, https://hbr.org/2017/
10/why-wages-arent-growing-in-america
``We've Fixed the Jobs Gap, But People Still Aren't Working,''
Real Clear Markets, August 2017, https://
www.realclearmarkets.com/articles/2017/08/30/
weve_fixed_the_jobs_gap_but_people_still_arent_working_102846.ht
ml
``The Decline in the Dollar,'' Econofact, June 2, 2017 (with
Michael Klein), https://econofact.org/the-decline-in-the-dollar
``US tariffs are an arbitrary and regressive tax,'' CEPR
VoxEU.org, January 12, 2017 (with Jason Furman and Kathryn
Russ), https://voxeu.org/article/us-tariffs-are-arbitrary-and-
regressive-tax
``On Growth and Jobs, the White House Supports the Prime
Minister,'' op-ed in La Stampa, October 18, 2016 (with Wally
Adeyemo), https://obamawhite
house.archives.gov/sites/default/files/page/files/
20161017_shambaugh_op-ed_
infrastructure_investment.pdf
``Fiscal policy remains critical for much of the world
economy,'' CEPR VoxEU.org, April 29, 2016 (with Jason Furman),
https://voxeu.org/article/fiscal-policy-remains-critical-much-
world-economy
``Dilemma With the Financial Trilemma?'', CEPR VoxEU.org,
September 27, 2013 (with Michael Klein), https://voxeu.org/
article/dilemma-financial-trilemma
``Review of Capital Controls and Capital Flows in Emerging
Markets,'' ed. Sebastian Edwards,'' Journal of Economic
Literature, December 2008, pp. 994-1000, https://www.jstor.org/
stable/27647092
``Review of Regional Monetary Integration by Kenen and Meade,''
Journal of International Economics, volume 76, issue 1, pages
133-135 (September 2008), https://www.sciencedirect.com/
science/article/abs/pii/S0022199608000585
``Reserve accumulation and financial stability,'' CEPR
VoxEU.org, October 11, 2008 (with Maury Obstfeld and Alan
Taylor), https://voxeu.org/article/reserve-accumulation-and-
financial-stability
``A Financial Perspective on Exchange Rates,'' CEPR VoxEU.org,
October 24, 2007 (with Philip Lane), https://voxeu.org/article/
financial-perspective-exchange-rates
Study Guide to Accompany International Economics: Theory and
Policy 8th edition, by Krugman and Obstfeld (Boston: Pearson
Education, 2008), co-authored with Linda S. Goldberg and
Michael W. Klein (no online version).
``Review of: Exchange Rate Regimes: Choices and consequences,
by Ghosh, Gulde, and Wolf,'' Journal of Economic Literature,
vol. 42, June 2004, https://www.aeaweb.org/issues/27
16. Speeches (list all formal speeches and presentations (e.g.,
PowerPoint) you have delivered during the past 5 years which are on
topics relevant to the position for which you have been nominated,
including dates):
Discussant: NBER Conference on The Rise of Global Supply
Chains, 12/10/21.
Discussant: ``Governing Finance for Sustainable Prosperity,''
IIEP event, 2/24/21 (no slides or formal remarks).
Discussant: IIEP conference on the IMF April 2020 World
Economic Outlook, ``Discussion of Countering Future Recessions
in Advanced Economies,'' 6/11/20.
Panelist: AEA Session, ``The Economics and Policy of Automatic
Stabilizers,'' January 2020 (no slides).
Testimony, Joint Economic Committee hearing on Connecting More
People to Work, 11/20/19.
Paper presentation: ``Education and unequal regional labor
market outcomes: The persistence of regional shocks and
employment responses to trade shocks,'' presented at the
Federal Reserve Bank of Boston Conference: Rethinking regional
responses to economic shocks, October 2019.
Presenter, ``Place-Based Policies for Shared Economic Growth''
at University of Pittsburgh Institute of Politics, ``Regional
Inequality and Shared Economic Growth,'' September 19, 2019.
Testimony, U.S. House Agriculture Committee, Subcommittee on
Nutrition, Oversight, and Department Operations, ``Examining
the Proposed ABAWD Rule and its Impact on Hunger and
Hardship,'' April 3, 2019.
Discussion of IMF Integrated Policy Framework, IMF conference,
``A Framework for IPF Analysis and Selected Case Studies,''
February 2019.
Panelist: The Future of the Global Economy: Integration or
Fragmentation--AEA Session, January 2019 (panel, no slides or
formal remarks).
Discussion of IMF WEO ``Challenges for Monetary Policy in
Emerging Economies as Global Financial Conditions Normalize,''
GW/IMF Conference on the WEO, 11-6-18.
Panelist: The Next Recession (AEI event)--September 2018 (no
slides or formal remarks).
Discussion of Bekaert and Mehl, IMF 18th Annual Research
Conference, November 2017.
Discussant: ``Rethinking Fiscal Policy,'' October 2017.
Presentation: ``What Will China's Financial Reckoning Look
Like?'' G2 at GW, October 2017.
Discussant: NBER spring program meeting, March 2017.
Speaker: WSJ Middle Market Network: ``The Economic Outlook,''
May 2017 (no slides or formal remarks).
17. Qualifications (state what, in your opinion, qualifies you to
serve in the position to which you have been nominated):
For the last 25 years, my core research area has been empirical
international macroeconomics--the study of exchange rates,
capital flows, and spillovers across economics. I have
published numerous articles in top journals as well as a book
at MIT Press on these questions. I am a Research Associate at
the National Bureau of Economic Research in International
Finance and Macroeconomics. I also have presented at major
conferences and central banks around the world, spent time as a
visitor at the IMF, and have taught international economics for
over 20 years. My experience creates a strong foundation to
address many of the fundamental policy questions faced by
Treasury's Office of International Affairs (IA).
At the same time, my experience is not just theoretical. I
served two stints in the White House working on economic
policy. During my first year serving as the Senior Economist
for International Economics, I had the opportunity to work
closely with Treasury IA on a range of issues. I attended many
strategic and economic dialogue meetings with Chinese officials
and met with officials from a number of countries. While
serving in the White House, I represented the U.S. Government
at the OECD in discussions related to economic issues. These
experiences have prepared me well to serve in the role of Under
Secretary, where international economic diplomacy is one of the
many responsibilities. I also had the opportunity to work on a
wide range of international economic issues, ranging from trade
and development economics to international finance and climate,
preparing me for the broad range of issues covered by Treasury
IA.
I also have significant experience working on U.S. economic
policy issues. As chief economist and then as a member at CEA
and as director of the Hamilton Project at Brookings, I have
covered a wide array of policy issues facing the United States,
ranging from economic and wage growth, to energy and climate
issues, to regional disparities and the impact of trade shocks.
Studying these issues has prepared me to carefully consider how
U.S. global leadership on a range of economic issues affects
the American economy, American households, and American
workers.
In addition, I have gained valuable management and personnel
experience during my time as a member at CEA, director of the
Hamilton Project, and director of the Institute for
International Economic Policy that I believe will serve me
well, given the large number of personnel doing important work
at Treasury IA.
Finally, my time at the Hamilton Project provided me many
opportunities to work with members of Congress and their staffs
on policy options facing Congress, including testifying in
front of Congress.
B. FUTURE EMPLOYMENT RELATIONSHIPS
1. Will you sever all connections (including participation in future
benefit arrangements) with your present employers, business firms,
associations, or organizations if you are confirmed by the Senate? If
not, provide details.
I have executed an ethics agreement with the Department of the
Treasury, and I will abide by the terms of the agreement
throughout the duration of my government service. Upon
confirmation, I will take a leave of absence from my current
employer, George Washington University. I will receive no
benefits or pay for the duration of time in government service.
2. Do you have any plans, commitments, or agreements to pursue
outside employment, with or without compensation, during your service
with the government? If so, provide details.
No.
3. Has any person or entity made a commitment or agreement to employ
your services in any capacity after you leave government service? If
so, provide details.
No.
4. If you are confirmed by the Senate, do you expect to serve out
your full term or until the next presidential election, whichever is
applicable? If not, explain.
Yes.
C. POTENTIAL CONFLICTS OF INTEREST
1. Indicate any current and former investments, obligations,
liabilities, or other personal relationships, including spousal or
family employment, which could involve potential conflicts of interest
in the position to which you have been nominated.
None.
2. Describe any business relationship, dealing, or financial
transaction which you have had during the last 10 years (prior to the
date of your nomination), whether for yourself, on behalf of a client,
or acting as an agent, that could in any way constitute or result in a
possible conflict of interest in the position to which you have been
nominated.
I will seek advice and comply with guidance from ethics counsel
on any conflicts of interest.
3. Describe any activity during the past 10 years (prior to the date
of your nomination) in which you have engaged for the purpose of
directly or indirectly influencing the passage, defeat, or modification
of any legislation or affecting the administration and execution of law
or public policy. Activities performed as an employee of the Federal
Government need not be listed.
I have spoken with congressional staffs or members in an
advisory capacity, but I have not advocated for specific pieces
of legislation. During the COVID-19 crisis, I did publicly
advocate for fiscal policy responses to cushion the crisis
(including blog posts and a New York Times op-ed listed under
publications), but did not advocate for specific legislation.
4. Explain how you will resolve any potential conflict of interest,
including any that are disclosed by your responses to the above items.
(Provide the committee with two copies of any trust or other
agreements.)
Any potential conflict of interest will be resolved in
accordance with the terms of my ethics agreement, which was
developed in consultation with ethics officials at the
Department of the Treasury and the Office of Government Ethics.
I understand that my ethics agreement has been provided to the
committee. I am not aware of any potential conflict.
5. Two copies of written opinions should be provided directly to the
committee by the designated agency ethics officer of the agency to
which you have been nominated and by the Office of Government Ethics
concerning potential conflicts of interest or any legal impediments to
your serving in this position.
I understand that my ethics agreement has been provided to the
committee along with the accompanying transmittal documents.
D. LEGAL AND OTHER MATTERS
1. Have you ever been the subject of a complaint or been
investigated, disciplined, or otherwise cited for a breach of ethics
for unprofessional conduct before any court, administrative agency
(e.g., an Inspector General's office), professional association,
disciplinary committee, or other ethics enforcement entity at any time?
Have you ever been interviewed regarding your own conduct as part of
any such inquiry or investigation? If so, provide details, regardless
of the outcome.
No.
2. Have you ever been investigated, arrested, charged, or held by any
Federal, State, or other law enforcement authority for a violation of
any Federal, State, county, or municipal law, regulation, or ordinance,
other than a minor traffic offense? Have you ever been interviewed
regarding your own conduct as part of any such inquiry or
investigation? If so, provide details.
No.
3. Have you ever been involved as a party in interest in any
administrative agency proceeding or civil litigation? If so, provide
details.
No.
4. Have you ever been convicted (including pleas of guilty or nolo
contendere) of any criminal violation other than a minor traffic
offense? If so, provide details.
No.
5. Please advise the committee of any additional information,
favorable or unfavorable, which you feel should be considered in
connection with your nomination.
None.
E. TESTIFYING BEFORE CONGRESS
1. If you are confirmed by the Senate, are you willing to appear and
testify before any duly constituted committee of the Congress on such
occasions as you may be reasonably requested to do so?
Yes.
2. If you are confirmed by the Senate, are you willing to provide
such information as is requested by such committees?
Yes.
______
Questions Submitted for the Record to Jay Curtis Shambaugh, Ph.D.
Questions Submitted by Hon. Chuck Grassley
Question. One of the main things I hear from Iowans is their
concerns about inflation. This time last year, you repeatedly argued
that inflation worries may be overstated. However, as I'm sure you
know, the United States is now seeing the highest rate in decades. How
much do you believe government spending has contributed to the
inflation we see today?
Answer. A year ago I wrote about the technical issue of the danger
of looking at 12-month changes in prices as opposed to monthly changes
as it could be misleading given the unusual ``base effects'' stemming
from the spring of 2020 disruptions in the economy.
Inflation remains unacceptably high, and I understand that the
Federal Reserve is taking actions to tackle inflation. I agree with the
President that inflation should be the administration's top economic
priority. In the near term, inflation is likely to remain quite high in
the United States and most advanced economies due to supply chain
challenges and the impacts of Russia's war against Ukraine, which has
roiled global oil markets and pushed gasoline prices higher. Food and
other non-
energy commodities are also being impacted and leading to higher prices
for consumers in the United States and around the world.
Question. I am very concerned about Putin's ongoing war against
Ukraine. We must ensure that Ukraine has the aid it needs and that
sanctions on Russia have a meaningful impact. That is why I introduced
a bill earlier this year expanding the anti-money laundering
whistleblower program to ensure that Russia is not able to evade
sanctions and that whistleblowers are able to speak out against
violations. If you are confirmed, what would you do to ensure that our
sanctions on Russia have real bite?
Answer. I condemn in the harshest terms Russia's brutal, unprovoked
invasion of Ukraine. The United States stands with the Ukrainian
Government and the Ukrainian people. Putin's war is an attack on the
sovereignty of a democratic state, has unleashed unrelenting violence
and war crimes committed by Russia, has created one of the largest
humanitarian crises, and has fundamentally disrupted the economy in
Ukraine and in countries around the world. Russia's invasion also
represents an assault on fundamental international rules and norms,
threatening the underpinnings of the international economic order.
President Biden has rallied allies and partners to impose swift and
severe consequences for Russia's premeditated and unprovoked attack on
Ukraine. The United States and more than 30 countries representing well
over half the world's economy have implemented substantial sanctions
and export controls on Russia. If confirmed, I will work with my
colleagues in the Office of Terrorism and Financial Intelligence and
with Congress to deprive President Putin of the economic resources he
uses to pursue his needless war of choice.
I look forward to learning more about your legislation to expand
the anti-money laundering whistleblower program, if confirmed.
Question. A paper published by the Regenerative Crisis
Responsibility Committee (RCRM), of which you are a member, titled
``The Myth of Carbon Offsets,'' states ``In the 2 years since the start
of the COVID-19 pandemic, stimulus and relief spending worth trillions
was unleashed by governments around the world. From the sheer size of
the disruption and its worldwide reach, this crisis represented a
unique opportunity for massive global investment towards the
transformation to a clean economy, affording the chance to potentially
alter the trajectory of planetary warming. In reality, much of the
stimulus spending was directed toward a recovery that pumped money into
polluting industries and energy sources like coal, oil and natural
gas.''
When the COVID-19 pandemic led to the shutdown of large sections of
the economy beginning in 2020, packages such as the CARES Act and other
legislation were intended to keep businesses and the economy in general
afloat through the crisis. The passage I've quoted from the RCRC paper
seems to suggest that Congress should have picked winners and losers in
the CARES Act and in other legislation based on policy preferences from
a specific partisan interest group. In an editorial for The Washington
Post in 2020, Rahm Emanuel takes credit for saying ``Never allow a good
crisis to go to waste. It's an opportunity to do the things you once
thought were impossible.''
In this case, the RCRC seems to be lamenting that Congress let the
COVID-19 crisis go to waste by not exploiting it to force businesses
and industries unpopular with a certain political interest group to be
forced out of business. Do you agree with this line of reasoning? Do
you think Congress should have used the CARES Act and other legislation
intended to provide COVID-19 relief to accomplish policy priorities
other than keeping the American economy on life-support and preserving
businesses and jobs?
Answer. I was not an author of that paper and did not see it before
it was published. The top fiscal priorities in the spring of 2020 were
stopping the pandemic and preserving the economy.
Question. You are listed as an author of the Regenerative Crisis
Responsibility Committee (RCRC) paper ``The Case for Climate Conscious,
Low Carbon Federal Procurement.'' In a section of the paper titled
``Amending Contracts Currently Used in the Procurement Process'' the
following passage appears. ``A good sample contract on which the
Federal Government may model its revisions was made publicly available
by cloud-based software company Salesforce. In its Sustainability
Exhibit, Salesforce obligates the supplier to agree that `the
environment is a key stakeholder' in the agreement and that `climate
change is the greatest challenge humans have ever faced.' ''
Do you think any entity involved in the procurement of goods or
services to the Federal Government should be required to state that
climate change is the greatest challenge humans have ever faced? Do you
apply this standard to any entity, such as a bank, cable provider, or
supermarket you deal with in your personal life?
Answer. I do not think any entity involved in the procurement of
goods or services to the Federal Government should be required to state
that climate change is the greatest challenge humans have ever faced.
That said, climate change is an existential threat to not only our
environment, but also to the health of Americans and to our economy. A
failure to address climate change would carry substantial and growing
costs over time.
If left unchecked, climate change will have further effects on
global macroeconomic and financial stability. Treasury supports the
work of international financial institutions (IFIs) on climate change
mitigation and adaptation as well as energy security. If confirmed, I
would continue Treasury's engagement with the IFIs so that they
continue to focus on areas where the changing climate and policies that
affect climate have macro-critical and development impacts, in line
with IFIs' missions.
Question. Do you believe climate change is the greatest challenge
humans have ever faced? If so, please describe as an economist how you
compare climate change to other challenges faced in human history, such
as cancer and disease pandemics, past outbreaks of world war, and other
cataclysms that have occurred throughout history.
Answer. Please see my answer above.
______
Questions Submitted by Hon. Todd Young
Question. What is your view on the effectiveness of newly allocated
Special Drawing Rights (SDRs) in supporting financial stability and
liquidity around the world?
Answer. The 2021 SDR allocation played a critical role in providing
needed financial stability and liquidity to the global economy during
the COVID-19 pandemic. The 2021 allocation also provided emerging
market and developing countries useful buffers as they deal with the
spillovers stemming from Russia's unjustified war against Ukraine.
Question. If confirmed, what steps would you take to ensure that
SDRs do not provide a lifeline to dictators?
Answer. I agree that SDRs should not be used to benefit bad actors,
and I take this concern seriously. I strongly support ongoing U.S.
efforts to prevent governments whose policies we oppose, like Iran,
Russia, and Belarus, from receiving any benefit from their SDRs. If
confirmed, I will continue working with our partners to prevent these
bad actors from benefitting from their SDRs, including by limiting
their ability to exchange SDRs for hard currency.
Question. If confirmed, what would be your approach in conducting
oversight into SDR allocations and SDR sales and purchases?
Answer. I understand that as part of the SDR allocation, Treasury
successfully pressed IMF staff to enhance the details it reports on
members' SDR holdings and transactions, to publish a note on best
practices for SDR use, and to publish members' SDR holdings on a
monthly and quarterly basis, as well as an annual summary update on SDR
transactions. In addition, I understand that the IMF has committed to
undertaking an ex-post report on members' use of SDRs, which it will
publish 2 years after the allocation. IMF country teams also regularly
report on their members' use of SDRs in their surveillance and during
reviews of IMF financing programs. If confirmed, I will strongly
support Treasury's efforts to encourage these oversight tools and will
look for further opportunities to increase the transparency around SDR
use.
Question. Do you support efforts to redirect or ``recycle'' SDRs
held by the United States and other wealthy countries towards IMF
lending programs for poorer countries?
Answer. Some donor countries are lending their SDRs to help enable
the IMF's support for low-income and vulnerable countries, including
through the Poverty Reduction and Growth Trust and (PRGT) the newly
approved Resiliency and Sustainability Trust (RST). Other countries are
supporting these facilities by making loans and contributions in freely
usable currencies.
I support the administration's request for congressional
authorization to lend to these IMF facilities to allow the United
States to support low income and vulnerable countries as they deal with
macroeconomic crises and risks from pandemics and climate change. This
need is particularly critical now, as many countries deal with
spillovers from Russia's war of aggression against Ukraine,
particularly through global high energy and food prices.
Question. Iran holds almost $7 billion in Special Drawing Rights at
the IMF. If we lift sanctions on the Central Bank of Iran, would there
be any constraints on Iran using its SDR funds for any purpose,
including terrorism?
Answer. Yes. U.S. sanctions on Iran remain in place, and the U.S.
would not conduct any SDR transactions with Iran. The designation of
the Central Bank of Iran presents one hurdle to the regime's ability to
benefit from its SDR holdings but is not the sole hurdle. If confirmed,
I would support Treasury's efforts to continue to engage with like-
minded countries and employ diplomatic pressure to work to prevent Iran
from benefitting from an SDR exchange. The United States is committed
to retaining all the necessary tools and authorities to target Iran's
support for terrorism, as well as its other malign activities.
Question. What is your assessment of the economic sustainability of
the Ukrainian war? How do you view the ability of the Ukrainian
government to sustain itself if the fighting persists?
Answer. Russia's war against Ukraine has resulted in the tragic
loss of life, including Russian attacks deliberately targeting
civilians, and immense destruction of human and physical capital.
According to external estimates, economic output in Ukraine will likely
decline by as much as 45 percent this year. The Government of Ukraine
also faces budget deficits of approximately $5 billion per month due to
decreased revenues and constrained market access.
Ukraine has undertaken emergency measures to help continue
essential government functions. However, international economic
assistance, including assistance provided by the United States, remains
a critical source of support without which Ukraine would be less able
to provide essential services to the people of Ukraine.
Question. If confirmed, how would you approach requests for
additional economic assistance for the government of Ukraine?
Answer. Ukraine faces considerable economic uncertainty as a result
of Putin's unjustified and unprovoked war. If confirmed, I would seek
to work with my Treasury colleagues as well as the U.S. interagency to
identify Ukraine's economic assistance needs as well as measures to
safeguard their use. I would also seek to work with our allies and
partners to encourage a fair burden sharing in meeting Ukraine's
economic assistance needs.
Question. Do you feel additional fiscal support such as sovereign
loan guarantees are warranted for the government of Ukraine?
Answer. Ukraine needs immediate economic assistance, and the United
States is leading the way in providing economic support. Given the vast
destruction of physical capital, Ukraine will also need considerable
investment for its reconstruction. Ukraine benefits most from grants,
which also slow the growth of its debt load.
Question. What oversight or conditions are needed to ensure
accountability for U.S. fiscal support for the Government of Ukraine?
Answer. The United States has led other international donors by
providing Ukraine approximately $4 billion in direct economic support
since the start of Russia's war on Ukraine this February. I firmly
believe that strong safeguards and transparency are essential elements
of U.S. economic support and must be the cornerstone of that support.
If confirmed, I will work with Congress and the U.S. interagency to
uphold high standards of accountability and transparency on U.S.
economic assistance funds.
Question. From your perspective, why is China stalling in its
commitments to negotiate in a responsible and multilateral fashion with
indebted countries under the Common Framework?
Answer. I cannot speak to China's motives, but if confirmed, I will
strongly support Treasury's ongoing efforts to press China to
participate fully and constructively in multilateral debt restructuring
processes.
Question. What are the risks of China squeezing its debtor
countries, leaving the United States, MDBs, and other lenders left to
bail out countries so they can pay back China?
Answer. China's policy banks and other state-owned entities have
developed unusually aggressive (among bilateral official creditors)
legal instruments to guard themselves against credit risks and limit a
borrower's ability to renegotiate or exit existing loans. Key features
in Chinese lending contracts include the prevalent use of collateral
arrangements, escrow accounts, repayment guarantees, and strong
confidentiality clauses. If confirmed, I would support Treasury's
strategy and efforts to limit the risk of China getting repaid at the
expense of other creditors. If confirmed, I am also committed to
continuing Treasury's efforts to improve debt transparency through the
G7, G20, and the international financial institutions.
______
Questions Submitted by Hon. Elizabeth Warren
Question. When you appeared before the committee on July 12th, you
discussed the section 301 tariffs on Chinese imports. The U.S. Trade
Representative (USTR) imposed these tariffs in 2018 in response to
China's unfair and discriminatory economic practices that steal U.S.
intellectual property and unfairly rig the trade system against
American businesses and workers.
These tariffs continue to be ``a significant piece of leverage,''
according to USTR Katherine Tai,\1\ and important protection for U.S.
workers and manufacturers that continue unfair competition from China
and for consumers suffering from shortages and price increases due to
broken, overseas supply chains.
---------------------------------------------------------------------------
\1\ Bloomberg, ``US Tariffs on China Give Negotiating Leverage:
Trade Chief,'' Eric Martin, June 22, 2022, https://www.bloomberg.com/
news/articles/2022-06-22/us-must-find-new-tools-to-defend-against-
china-trade-chief-says.
Do you agree that China has not ended the unfair trades practices
implicated in USTR's section 301 investigation, or met all of its
obligations under the 2020 U.S.-China Phase One Economic and Trade
Agreement, along with failing to meet numerous basic labor and
---------------------------------------------------------------------------
environmental standards?
Answer. China continues to engage in a range of unfair trade
practices, which generate distortions in the U.S. economy and have
harmed U.S. firms and workers. If confirmed, I look forward to working
closely with USTR on pushing China to end these unfair practices and
fulfill its existing trade obligations.
Question. Do you agree that tariffs are an important trade policy
tool, including for protecting American manufacturers and workers from
unfair trade practices?
Answer. Tariffs can be an important trade policy tool. If
confirmed, I look forward to working with the interagency to review the
tariffs so they can be adjusted in a way that would be more strategic
and aligned with our economic priorities.
Question. For too long, trade agreements have put giant
corporations over workers and consumers, so it is powerfully important
that the Biden administration follow through on its historic commitment
to a trade policy.
The Biden administration has announced its intent to negotiate new
trade deals, including an Indo-Pacific Economic Framework (IPEF) and
Americas Partnership for Economic Prosperity (APEP). The content of
these potential trade deals remains unclear, but their proposed scope
includes issues that would fall within your portfolio as Treasury's
chief trade official, if confirmed, including international supply
chains, investment, and financing. We need to secure our supply chains,
but the best way to do that is to make critical products here in the
United States, and any ``friendshoring'' mechanism must not undermine
U.S. manufacturing.
Do you agree that before the U.S. looks to support the movement of
critical supply chains into countries like Vietnam and Malaysia, we
should first look to invest in U.S. manufacturing?
Answer. Shocks to the global economy from the pandemic and Russia's
war of aggression in Ukraine have refocused global attention on the
importance of economic resilience and addressing supply chain
vulnerabilities. Making American supply chains more resilient can help
resolve the sorts of bottlenecks that are raising prices for American
consumers. Investments like those being made with the Bipartisan
Infrastructure Law in our ports, airports, highways, waterways, and
clean energy infrastructure, as well as those that Congress is
currently considering in R&D and commercialization of new technologies,
and in making more semiconductors in the United States, will help to
promote U.S. manufacturing.
I understand that the Biden administration is also focused on
working with allies and partners to secure supplies of critical goods
that we do not make in sufficient quantities at home, while ensuring
that high standards for labor and environmental practices are upheld.
If confirmed, I look forward to working with Congress on these
important issues facing our Nation.
Question. Do you agree that any international supply chain
negotiations that the U.S. engages in should also include mechanisms to
ensure they do not undercut current or future U.S. manufacturing? If
so, what mechanisms?
Answer. If confirmed, I look forward to working with Congress and
the other agencies in the administration to make American supply chains
more resilient and to make sure that U.S. trade relationships will
continue to make our economy more innovative, productive, and
resilient, while ensuring that high standards for labor and
environmental practices are upheld.
Question. If confirmed as the Treasury Under Secretary for
International Affairs, you would lead negotiations on trade rules for
financial services. Giant financial institutions have had an outsize
role in shaping our trade policy. From the agreement on China's
accession to the WTO in 2001 to the 2020 U.S.-China agreement, when the
U.S. trade negotiators--including from the Treasury Department--have
negotiated with China, instead of insisting on strong labor and
environmental protections, they worked hard to help Goldman Sachs make
larger profits in China.
Worse, banks have tried to write trade rules to tie financial
regulators' hands. Under the Trans-Pacific Partnership (TPP), the U.S.
could have been required to permit foreign banks to supply new
financial services that were not expressly forbidden by existing law,
even if regulators wanted time to consider the risks behind a new
product. With Investor-State Dispute Settlement (ISDS), a bank could
even directly sue the U.S. Government for trying to regulate risky new
financial products--not in U.S. court, but before a trade arbitration
panel skewed towards industry.\2\
---------------------------------------------------------------------------
\2\ Letter from U.S. Senators Elizabeth Warren, Edward J. Markey,
and Tammy Baldwin to USTR Michael Froman, December 17, 2014, https://
www.warren.senate.gov/files/documents/TPP.pdf; Senator Elizabeth
Warren, ``No Fast Track for Trade Deals that Weaken Dodd-Frank,'' May
20, 2015, https://www.warren.senate.gov/newsroom/videos/watch/sen-
elizabeth-warren-no-fast-track-for-trade-deals-that-weaken-dodd-frank;
Public Citizen, ``Why Warren Is Right and Obama Is Wrong on Fast
Track's Threat to Wall Street Reform,'' May 13, 2015, https://
citizen.typepad.com/eyesontrade/2015/05/why-warren-is-right-and-obama-
is-wrong-on-fast-tracks-threat-to-wall-street-reform.html.
We are fortunately not in TPP, but bank lobbyists would like
nothing more than for us to rejoin, or sign new, similar trade deals to
lock in financial deregulation. And many TPP supporters hope that IPEF
will port over TPP approaches, including on digital trade issues that
impact not just big technology companies but also big banks that want
to monetize consumer data without any regulatory restrictions to
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protect consumers and workers.
What are your priorities when it comes to trade and investment in
financial services?
Answer. If confirmed, I look forward to supporting Treasury's role
in promoting trade and investment in financial services to facilitate
greater economic growth, while preserving the regulatory and
supervisory interests of U.S. financial regulators. If confirmed, I
will work with Congress, relevant stakeholders, and U.S. financial
regulators to better understand and advance our priorities in this
sector.
Question. If confirmed, how will you ensure that financial services
and digital trade rules allow financial regulators to do their job and
can protect American consumers and workers, instead of serve the
interests of big banks?
Answer. It is important that financial regulators are not
constrained in their ability to do their jobs so that they can protect
American consumers and workers. If confirmed, I look forward to working
closely with financial regulators on these issues.
Question. What is your position on TPP's approach to financial
services and digital trade rules?
Answer. I appreciate you raising your concerns about TPP financial
services and digital trade rules. If confirmed, I look forward to
working with USTR, financial regulators, and other stakeholders on
financial services and digital trade issues.
Question. Do you support the inclusion of ISDS in trade agreements,
including its application to financial services trade rules and use by
big banks?
Answer. If confirmed, I look forward to being briefed by Treasury
staff on this issue. I will also engage with financial regulators,
members of Congress, and other relevant stakeholders on their views.
Question. Russia's ongoing illegal invasion of Ukraine has only
worsened the effects of the COVID-19 pandemic, climate disasters, and
soaring energy and food prices in the world's poorest countries. Last
year, the President Biden and Secretary Yellen supported the issuance
of $650 billion in special drawing rights (SDRs) at the International
Monetary Fund (IMF) to support developing countries in addressing the
compounded effects of these multiple, simultaneous global crises. This
issuance was sorely needed and hugely impactful: at least 99 developing
countries made use of their SDR allocations in the first 6 months, and
Ukraine has used its entire allocation.
However, these crises show little sign of stopping, and developing
countries are increasingly requesting additional SDR infusions to
stabilize their currencies, shore up reserves, pay off debts, and
finance health care, such as vaccinations, and other urgent needs. The
U.S. is in a position to help--and in fact, has an economic incentive
to do so: a strong global recovery would increase demand for American
exports, creating jobs and bolstering businesses at home.
Since the issuance in August 2021, circumstances for many
developing countries have in fact worsened, due in large part to the
Russian invasion of Ukraine. In April 2022, Secretary Yellen stressed
the need to mobilize capital in support of developing countries but
said that ``the response to date is just not to the scale that's
needed. Experts put the funding needs in the trillions, and we've so
far been working in billions.\3\ Thus, earlier this week I along with
43 other members of Congress wrote to President Biden and Secretary
Yellen urging them to support a new issuance of at least $650 billion
in SDRs.\4\
---------------------------------------------------------------------------
\3\ The Atlantic Council, ``Special address by US Treasury
Secretary Janet L. Yellen,'' April 13, 2022, https://
www.atlanticcouncil.org/news/transcripts/transcript-us-treasury-
secretary-janet-yellen-on-the-next-steps-for-russia-sanctions-and-
friend-shoring-supply-chains/.
\4\ https://www.warren.senate.gov/newsroom/press-releases/07/13/
2022/icymi-warren-and-jayapal-lead-lawmakers-in-calling-for-biden-
administration-to-support-cost-free-aid-to-developing-world.
The Under Secretary of the Treasury for International Affairs
oversees U.S. relations with the IMF, and thus, if confirmed, you would
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have a key role to play in future decisions on SDRs.
Do you agree--given the success of last year's issuance and the
ongoing and intensifying global economic crisis--that the Treasury
should be exploring another SDR issuance with urgency?
Answer. My understanding is that Secretary Yellen does not support
a new allocation of SDRs at this time, given current global liquidity
and inflation conditions. Under the IMF's Articles of Agreement, new
allocations of SDRs should respond to the ``long-term global need, as
and when it arises, to supplement existing reserve assets in such
manner as . . . will avoid economic stagnation and deflation as well as
excess demand and inflation in the world.'' Treasury has requested
congressional authorization to lend to the IMF for the Poverty
Reduction and Growth Trust and the newly approved Resiliency and
Sustainability Trust that would provide support for low-income and
vulnerable countries. If confirmed, I will continue to closely monitor
global conditions and work with Treasury's leadership to identify
appropriate policy responses.
Question. The UN Global Crisis Response Group on Food, Energy, and
Finance recently argued that ``all available rapid disbursement
mechanisms at international finance institutions must be reactivated,
and a new emission of Special Drawing Rights must be pursued.''\5\ A
report on the last issuance shows that SDRs' impact for developing
countries provided more aid than other forms of international aid at
the time.\6\ Do you agree with these experts' assessments?
---------------------------------------------------------------------------
\5\ UNGlobal Crisis Response Group on Food, Energy, and Finance,
``Global impact of the war in Ukraine: Billions of people face the
greatest cost-of-living crisis in a generation,'' June 8, 2022, https:/
/news.un.org/pages/wp-content/uploads/2022/06/GCRG_2nd-Brief_Jun8_2022_
FINAL.pdf.
\6\ Center for Economic and Policy Research, ``Special Drawing
Rights: The Right Tool to Use to Respond to the Pandemic and Other
Challenges,'' Kevin Cashman, Andres Arauz, and Lara Merlin, April 20,
2022, https://cepr.net/report/special-drawing-rights-the-right-tool-to-
use/.
Answer. I am committed to using every appropriate tool to address
the impact of the current crisis on vulnerable countries. One important
way to do so would be to participate in funding the IMF's trust funds,
the Resilience and Sustainability Trust and the Poverty Reduction and
Growth Trust. These facilities will provide low-cost financial support
to hard-hit countries alongside appropriate reforms to reduce their
---------------------------------------------------------------------------
vulnerabilities over the longer term.
Question. A new SDR issuance by the IMF would inject $2.7 billion
in reserves directly to Ukraine's Central Bank. Given the enormous
economic needs of our Ukrainian partners, is there any other mechanism
available to the Treasury, absent congressional authorization, to
support Ukraine at this level of size and speed?
Answer. I am committed to ensuring that the international financial
institutions do everything possible to support Ukraine as it contends
with the economic fallout of Russia's brutal invasion. The IMF has
already provided $1.4 billion in emergency financing to Ukraine, and is
also helping to channel donor resources to Ukraine through its
administered account. SDR allocations are not a tool designed to
support a single country or a group of countries, but are meant to help
meet the long-term global need for international reserves under certain
global financial conditions.
The IMF can support Ukraine and other countries dealing with the
negative spillovers from Putin's unprovoked and unjustified war through
existing lending facilities, including by providing loans from the
IMF's concessional Poverty Reduction and Growth Trust for the poorest
countries and the new Resilience and Sustainability Trust, which could
provide up to $1.4 billion to Ukraine.
______
Questions Submitted by Hon. Mike Crapo
inflation
Question. As Under Secretary for International Affairs, you will
advise on international economic issues, including monetary policy. A
San Francisco Fed research paper \7\ from March 2022 found that core
inflation, that is, inflation excluding the effect of volatile food and
energy prices, rose faster in the United States than in other OECD
countries, starting in 2021. The researchers attributed this to the
direct fiscal transfer programs the U.S. implemented in response to the
COVID-19 pandemic, which began with the CARES Act, then spiked again
with the passage of the partisan ARPA bill. The researchers concluded
that inflation in the U.S. may have been 3 percentage points higher
relative to in other developed economies.
---------------------------------------------------------------------------
\7\ https://www.frbsf.org/wp-content/uploads/sites/4/el2022-07.pdf.
On a related note, Jason Furman, former Chairman of the Council of
Economic Advisers under President Obama, wrote recently \8\ in The Wall
Street Journal that ``. . . underlying, demand-driven inflation is
higher in the U.S. [than Europe]. . . . It would be a mistake for U.S.
policy makers to overstate the degree to which inflation is global and
neglect addressing the many U.S. specific causes.''
---------------------------------------------------------------------------
\8\ https://www.wsj.com/articles/america-and-europe-have-different-
inflation-problems-energy-food-prices-cost-
11654541096?mod=Searchresults_pos1&page=1.
And, Federal Reserve Chair Jerome Powell in testimony before the
Senate Banking Committee on June 22nd, in addition to confirming that
``inflation was high before, certainly before the war in Ukraine broke
out,'' identified that ``If you look at comparable large advanced
economies like ours, you'll see inflation rates that are quite similar
to ours, in some cases higher, in some cases lower. Ours is more about
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demand, I would say, and theirs is more about energy prices. . . .''
How do you reconcile those findings and statements with President
Biden's assertion that inflation in the U.S. has been caused by
``corporate greed,'' ``Russia,'' or ``the supply chain'' and claims
that the inflationary demand stimulus from the American Rescue Plan did
not fuel inflation?
Answer. The risk we faced early last year was that we would do too
little, potentially scarring the economy. The American Rescue Plan is
helping families and businesses, and supporting a historic economic
recovery. Furthermore, any analyses point to a role for demand in U.S.
inflation also leave plenty of room for important roles for supply
chains and Russia's invasion of Ukraine.
Inflation remains unacceptably high, and I understand that the
Federal Reserve is taking actions to tackle inflation. I agree with the
President that inflation should be the administration's top economic
priority. In the near term, inflation is likely to remain quite high in
the United States and most advanced economies due to supply chain
challenges and the impacts of Russia's war against Ukraine, which has
roiled global oil markets and pushed gasoline prices higher. Food and
other non-
energy commodities are also being impacted and leading to higher prices
for consumers in the United States and around the world.
inflation and economic management
Question. On July 13th, BLS released the CPI reading for June, \9\
reporting 9.1-percent inflation for the 12 months ended June 2022. This
reading marked a 1.3-percent increase from May on a seasonally adjusted
basis, and well above consensus estimates. The reading marked the
largest increase since November 1981, and included the largest 12-month
gain in energy prices since April 1980, the largest 12-month increase
in food prices since February 1981, and the largest 12-month increase
in shelter costs since February 1991.
---------------------------------------------------------------------------
\9\ https://www.bls.gov/news.release/cpi.nr0.htm.
Last year, the Penn Wharton Business Model \10\ estimated that the
House version of the ``Build Back Better'' bill, H.R. 5376, would
increase inflation by 0.1 to 0.2 percentage points over the next 2
years. The Committee for a Responsible Federal Budget \11\ cautioned,
``[T]here is a risk the modest inflationary effect of Build Back Better
would build on existing inflationary pressures, potentially de-
anchoring expectations and increasing the economic cost of bringing
inflation back under control.''
---------------------------------------------------------------------------
\10\ https://budgetmodel.wharton.upenn.edu/issues/2021/12/17/build-
back-better-act-hr-5376-inflation.
\11\ https://www.crfb.org/blogs/what-will-build-back-better-mean-
inflation.
You also said, in the Q&A at your hearing, ``. . . at the margin,
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more demand is going to lead possibly to more inflation. . . .''
In the current inflationary environment, with increasing risks of
recession, how would increasing taxes and spending by $1 trillion or
more provide for reduced inflation in the near term or reduced
recession risks, even if tax hikes of $1 trillion or more, which would
reduce economic activity, are coupled with spending, directly or
through the tax code, that is less than $1 trillion, with, say, $500
billion promised for deficit reduction and/or redirecting revenue to
the Medicare trust fund?
Answer. The Federal Reserve has primary responsibility for price
stability, but Congress can take actions that lower price pressures by
reducing the deficit and making supply-side investments in affordable
housing and clean energy. Raising taxes by closing loopholes,
equalizing tax treatment for multinational companies, and improving tax
compliance tend not to be inflationary. The models and analysis cited
above would suggest that deficit reducing fiscal policy actions (where
revenues exceed new spending) would reduce inflation.
international taxation
Question. The Biden administration continues to negotiate a
sweeping change to the U.S. international taxation system without
consulting Congress meaningfully or treating Congress as an equal
partner. In perfunctory ``briefings'' to Congress, the administration
continues to cite analysis of data supporting its negotiating positions
which it refuses to share with the congressional committees of
jurisdiction.
If you are confirmed to the position to which you have been
nominated, would you, if asked by members of Congress, provide any
quantitative analysis, including simulations and projections of effects
on U.S. business taxes, of the OECD international tax agreement that
currently exist in the U.S. Treasury and any such analysis produced
subsequent to your confirmation?
Answer. Yes. I understand that details and estimates of Treasury's
proposals implementing Pillar Two can be found in the Green Book.
While I would defer to my colleagues in the Office of Tax Policy, I
understand that once Treasury has sufficient information regarding the
parameters of Pillar One and the Office of Tax Analysis thinks their
model can capture the novel questions presented by the parameters,
Treasury will be positioned to share such information.
economic research
Question. In an Annual Committee on Government Relations (CGR) of
the American Economic Association (AEA) for 2021, regarding ``issues,''
it is written that: ``The CGR discussed and is monitoring concern
expressed in a letter from Senators Crapo and Grassley to the Senate
Finance Committee that proposes a series of actions on IRS protection,
including elimination of the Joint Statistical Research Program of the
Statistics of Income Division of the IRS. This program, that allows
limited access by collaborating economists to IRS tax microdata, has
been a boom for economists' research on factors that affect earning
power. If this concern blooms into proposed legislation, the CGR stands
ready to comment.'' You were cited as a member of the AEA's CGR.
In a separate AEA CGR document dated October 18, 2021, titled
``Information Items for AEA Committee on Government Relations,'' item
number 2 discussed a ``Letter from Senators Crapo and Grassley
regarding alleged leaks of IRS data.'' The letter referred to was an
October 4, 2021 letter from Senators Crapo and Grassley to the
Honorable J. Russell George, the Treasury Inspector General for Tax
Administration. The AEA CGR document's item number 2 made a point that
``Another worry is that increased concern about the confidentiality of
IRS data could dampen or erase progress made this year through the
Treasury Department's plan for actions to allow data synchronization.''
While the concerns of users of confidential, legally protected
personal tax data housed at the IRS is noted, increased concern about
confidentiality of the data is warranted by the left-leaning ProPublica
group's continuous and as yet unchallenged claims to be in possession
of a ``trove'' of ``secret'' data obtained from IRS files.
Please identify the letter claimed by the AEA's CGR, of which you
were a member at the time of the claim, ``to the Senate Finance
Committee'' calling for ``elimination of the Joint Statistical Research
Program of the Statistics of Income Division of the IRS.''
Answer. I believe the letter referenced is the one here,\12\ though
I did not participate in any discussion of the letter as I had a
conflict during the October 2021 meeting.
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\12\ https://www.finance.senate.gov/imo/media/doc/
crapo_grassley_letter_to_tigta.pdf.
Question. Do you believe that ProPublica's belief, as stated by
ProPublica's editor-in-chief in an August 6, 2021 ProPublica article,
that ``the guiding light here ought to be the public interest; the
public interest in what's happening is so powerful and so important
that it was necessary to put some human faces on what are otherwise
---------------------------------------------------------------------------
sort of incomprehensible aggregate numbers''?
Answer. An unauthorized disclosure of taxpayer information in
violation of the law would be illegal and must be taken very seriously.
I am not personally familiar with all of the circumstances here but
understand that the matter has been referred to the appropriate
authorities.
Question. If you are confirmed to the position to which you have
been nominated, would you participate in ``the Treasury Department's
plan for action to allow for data synchronization''?
Answer. That is a matter for IRS and the Office of Tax Policy.
inflation and currency stability
Question. One way to ensure against inflation is to enhance
confidence in currencies.
What will you do to promote stability of the U.S. dollar and other
currencies in international forums such as the G7/G20?
Answer. Treasury has worked with our international partners through
the G7, G20 and the IMF to support market-determined exchange rates in
the major economies. If confirmed, I will strive to hold the United
States' major trading partners accountable to their commitments in
these fora and will work to implement the President's promise to oppose
any and all attempts by foreign countries to artificially manipulate
currency values to gain an unfair advantage in trade.
Question. Do you see, currently, any need for use of the Exchange
Stabilization Fund for foreign exchange interventions?
Answer. As Secretary Yellen said in May, the dollar's rise has been
driven by fundamental factors including rising interest rates and
``safe haven'' inflows arising from recent geopolitical events.
Question. When was the last time the U.S. directly intervened in
foreign exchange markets using the Exchange Stabilization Fund and
generated significant and persistent changes in the foreign-exchange
value of the dollar?
Answer. The last time the U.S. directly intervened in foreign
exchange markets using the Exchange Stabilization Fund was on March 18,
2011, when it was used to sell half of $1 billion \13\ in Japanese yen
in coordination with other G7 central banks in response to the yen's
surge following the tsunami. In this period, the dollar's trade-
weighted exchange value depreciated 3.7 percent as measured by the
Federal Reserve Board's major currencies index.
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\13\ Historically, U.S. intervention has been jointly financed by
both the Exchange Stabilization Fund and the Federal Reserve's System
Open Market Account, and the financing has been equally shared between
the two accounts.
Question Submitted by Hon. Rob Portman
tropical forest conservation act
Question. I appreciate your willingness to serve again, and note
that you taught a little bit at my alma mater, Dartmouth. If confirmed,
you would be entering this role at a very challenging time during the
world's economic recovery. As you know, I believe the multilateral
development banks have played a crucial role for economic development.
I also believe that these institutions can greatly incent behavior that
would allow us to meet environmental and conservation goals through
free market operations. When I was a member of the U.S. House of
Representatives in the 1990s, I created the Tropical Forest
Conservation Act, or TFCA, program. This is a debt-for-nature swap
program where the U.S. works with eligible countries with tropical
forests or coral reefs to relieve certain official debt owed to the
U.S., while at the same time, generating funds to support tropical
forest conservation activities. This program goes a long way in
supporting conservation, but also helps improve the balance sheets of
developing countries around the world. In fact, since the TFCA program
was created, it has helped protect more than 67 million acres of
tropical forests and sequestered more than 56 million metric tons of
carbon. Unfortunately, there is limited concessional debt remaining
that could be used to finance future agreements.
How can the United States better leverage its positions on the IMF
and World Bank, and through the DFC, to generate public-private
partnerships to support conservation investments?
Answer. Answer: I understand that Treasury continues to support the
Tropic Forest and Coral Reef Conservation Act and is ready to respond
to requests from the countries that owe debt to the United States. The
international financial institutions can also play a key role in
working with governments to implement policies that facilitate private
sector investment in areas with important public and environmental
benefits, including conservation. I would defer to my DFC colleagues on
the specific role the DFC can play in this area.
______
Questions Submitted by Hon. John Barrasso
Question. Inflation is currently at a 4-decade high. Shortly after
the passage of the American Rescue Plan Act in March 2021, you wrote,
``There are reasons to think inflation will rise, most notably recent
fiscal and monetary policy stimulus. There are more reasons to think it
will not likely get out of control over the next year.''
The June 2022 Consumer Price Index (CPI) numbers showed inflation
rose 9.1 percent year-over-year, the highest since 1981.
With the benefit of hindsight, what is your assessment of the
inflationary impact of the American Rescue Plan Act?
Answer. The risk we faced early last year was that we would do too
little, potentially scarring the economy. The American Rescue Plan is
helping families and businesses, and supporting a historic economic
recovery.
Inflation remains unacceptably high, and I understand that the
Federal Reserve is taking actions to tackle inflation. I agree with the
President that inflation should be the administration's top economic
priority. In the near term, inflation is likely to remain quite high in
the United States and most advanced economies due to supply chain
challenges and the impacts of Russia's war against Ukraine, which has
roiled global oil markets and pushed gasoline prices higher. Food and
other non-
energy commodities are also being impacted and leading to higher prices
for consumers in the United States and around the world.
Question. The U.S. economy currently faces 40-year high inflation,
a first quarter decline in GDP, and increasing odds of a recession and
stagflation.
As a professor of economics, would you say increasing taxes in the
current economic environment is a responsible policy action?
Answer. A modest tax increase that reduces the deficit would have
little impact on economic growth or the labor market. The expiration of
the Bush tax cuts for upper-income households in 2012 and tax increases
in 1993 did not result in job losses or a weakening of the labor
market.
______
Questions Submitted by Hon. James Lankford
Question. In response to questions from Senator Wyden, you
acknowledged that the United States already has a global minimum tax,
created through the 2017 Tax Cuts and Jobs Act. The United States is
currently the only country with such a minimum tax.
Given that the U.S. is the only country with a global minimum tax,
as well as the OECD's recent recognition that the timeline for
enactment is shifting, do you hold the view that the United States
should act first on this agreement?
Answer. Last year over 130 countries agreed in principle to a
sweeping overhaul of the global tax system. We are on the precipice of
this generational achievement, and the United States is a world leader
in efforts to stabilize the international tax system and make it
fairer. If the United States were to act first, we would create
pressure on the many others who have agreed in principle to this deal
to conform their laws to Pillar Two.
Question. Do you believe that doing so would threaten the
competitiveness of U.S. businesses operating abroad?
Answer. Please see my answer above. Pillar Two helps level the
corporate tax playing field, which has been the single most frequently
heard request of U.S. businesses operating abroad for a generation.
Question. Congressional Republicans are not the only ones that have
recently voiced concerns with the OECD agreement. Last month, Hungary
too voiced concerns with the OECD product--in fact, Mr. Balazs Orban, a
member of the Hungarian Parliament, stated in a Wall Street Journal op-
ed that ``adopting the European Commission's minimum-tax directive now
would be a profound mistake.'' He continued to say that ``restricting
competition among member states and adding an extra tax burden on the
companies driving our economic growth is just asking for trouble.''
Given the sustained and persistently high inflation that we are
seeing here in the U.S., do you agree with Mr. Orban that now is a
horrible time to raise taxes on our job creators?
Answer. The Federal Reserve has primary responsibility for price
stability, but Congress can take actions that lower price pressures by
reducing the deficit and making supply-side investments in affordable
housing and clean energy. Raising tax by closing loopholes, equalizing
tax treatment for multinational companies, and improving tax compliance
tend not to be inflationary.
Question. How do you believe tax increases on businesses, which are
undeniably felt by workers and consumers, would lessen our inflation
crisis and provide relief to American families?
Answer. Please see my answer above.
Question. On July 8th, the Treasury Department announced that it
was moving to terminate the 1979 tax treaty that we have with Hungary.
As you know, Hungary just blocked the European Commission from moving
forward with an EU-wide minimum tax, as outlined by the OECD agreement.
Now, not only is the EU looking for ways to get around their unanimity
requirement, the US also seems to be taking action to pressure Hungary
as well.
Do you believe that terminating a tax treaty unilaterally because
another country has voiced valid, thoughtful concerns with the ongoing
negotiations of an unrelated project is an unacceptable and
inappropriate move by the U.S. Treasury Department?
Answer. I understand that the United States Treasury Department has
been articulating its concerns with the U.S.-Hungary tax treaty to
Congress across administrations of both parties beginning with the
administration of George W. Bush. In the last 10 years, the benefits of
the bilateral tax treaty have also ceased being reciprocal--with a
significant loss of potential revenues to the United States and little
in return for U.S. business and investment in Hungary. Hungary made
longstanding U.S. concerns with the 1979 tax treaty worse by blocking
the EU Directive to implement a global minimum tax. Hungary's approach
has also exacerbated its status as a treaty-shopping jurisdiction,
further disadvantaging the United States.
Question. Do you agree that the Treasury Department has a
responsibility to make the U.S. Congress aware of the rationale behind
termination of the treaty?
Answer. I understand that officials in the Treasury and State
Departments have provided the rationales behind this decision to
Congress and congressional staff.
Question. As mentioned during your nominations hearing, I am
concerned that under the Pillar Two model rules, U.S. companies relying
on congressionally enacted incentives in the tax code, such as
nonrefundable tax credits, will be put at competitive disadvantage
compared to their international counterparts because this agreement
treats subsidies more favorably than nonrefundable tax credits, which
permeate our tax code. Under this agreement, international companies
receiving a check from their government will be better off than our
U.S. companies.
Are you concerned that the Pillar Two model rules create an
advantage for countries that provide direct taxpayer subsidies?
Answer. I understand that the distinction between refundable and
non-refundable credits in Pillar Two of the OECD/G20 international tax
agreement was initially negotiated in the prior administration and has
been a matter of public record since October 2020, when it appeared in
the Pillar Two blueprint. As negotiated by the prior administration,
refundable tax credits are treated as income rather than a direct
reduction in the taxpayer's effective tax rate. This general rule
carries over into the recently released model rules and its commentary.
Question. During your remarks, you said that you believed the OECD
international tax agreement would stop a ``race to the bottom'' on tax
rates. However, are you concerned that the rules' current treatment of
credits would actually create a ``race to the bottom'' on subsidies?
How is this consistent with the administration's stated effort to
ensure that countries ``pay their fair share''?
Answer. I understand that, as negotiated by the prior
administration, the Pillar Two model rules follow financial accounting
treatment for credits. Nonrefundable credits reduce tax expense, while
refundable tax credits are treated as income, because they are more
like a grant or subsidy from the perspective of both the taxpayer and
the government. Pillar Two is a common approach to ensure a minimum
level of tax is paid by multinational corporations wherever
headquartered, and is not and has never been intended to prevent
governments from incentivizing behavior through grants or subsidies.
Question. To date, the Department has failed to provide adequate
information to Congress regarding the ongoing OECD negotiations. There
is a difference between after-the-fact briefings and good-faith
consultation.
Given that the implementation of any deal would require
congressional action, can you commit to keeping Congress apprised of
the ongoing negotiations underway at the OECD and engage with Congress
for input on open issues in advance of making any decisions?
Answer. I would defer to my colleagues in the Office of Tax Policy.
Question. Should you be confirmed, can you commit to briefing the
members of this committee as soon as possible on outstanding issues
being discussed with respect to the OECD negotiations?
Answer. I would defer to my colleagues in the Office of Tax Policy.
Question. In late December, days before the end of the year, the
Treasury Department released final regulations pertaining to foreign
tax credits. These regulations were published in the Federal Register
on January 4, 2022, and in a number of instances, are effective
immediately, meaning these regulations are already impacting business
decisions and financial statements. We've heard a number of concerns
from taxpayers regarding these regulations, including their significant
departure from precedent without any congressional direction, and the
broad impact they will have on the creditability of certain taxes that
have been creditable for decades under established case law.
U.S. businesses have reached out to us concerned about the
regulations' impact on their ability to compete and grow
internationally, which would result in fewer jobs here in the U.S. In
recent months, Treasury Department officials have acknowledged that
there are significant issues with these regulations and that guidance
is needed, stating that taxpayers ``want certainty'' and that ``they
want to be able to rely'' on guidance. At the same time, Treasury
officials recognize that guidance will take months, will be in proposed
form, and will not address all issues that taxpayers are facing.
Given the clear recognition by the Department that guidance is
needed and forthcoming, can you commit to providing an update, to both
Congress and publicly, on the status of this guidance and any related
regulatory packages once confirmed?
Answer. I would defer to my colleagues in the Office of Tax Policy.
Question. In July of 2021, you said that you thought inflation
would slow, and that ``I think 2021 will be above what the Fed had
hoped, but 2022, it will start to slow down.'' That has clearly not
been the case. Year-over-year inflation in the Consumer Price Index for
All Urban Consumers (CPI-U) rose 9.1 percent in the month of June.
These increases are broad-based and persistent, as families continue to
contend with increasing prices for homes, gasoline, and food. Former
Obama administration officials Steven Rattner and Larry Summers warned
that such a result was possible.
In the words of Rattner, ``shoveling an unprecedented amount of
spending into an economy already on the road to recovery would mean too
much money chasing too few goods.'' As such, they have characterized
the $1.9-trillion American Rescue Plan as ``the original sin''
(Rattner) and the ``least responsible'' economic policy in 40 years
(Summers).
Do you agree that over-stimulating the economy with an influx of
$1.9 trillion unnecessary, untargeted dollars contributed to the
economy's overheating and thus, the sky-rocketing inflation that we now
face?
Answer. The risk we faced early last year was that we would do too
little, potentially scarring the economy. The American Rescue Plan is
helping families and businesses, and supporting a historic economic
recovery.
Inflation remains unacceptably high, and I understand that the
Federal Reserve is taking actions to tackle inflation. I agree with the
President that inflation should be the administration's top economic
priority. In the near term, inflation is likely to remain quite high in
the United States and most advanced economies due to supply chain
challenges and the impacts of Russia's war against Ukraine, which has
roiled global oil markets and pushed gasoline prices higher. Food and
other non-
energy commodities are also being impacted and leading to higher prices
for consumers in the United States and around the world.
Question. Many administration officials claim that to get a handle
on inflation, Congress should pass the trillion-dollar ``Build Back
Better'' bill and raise taxes.
Do you believe it is prudent fiscal policy to increase taxes or
engage in additional deficit spending at this time?
Answer. The Federal Reserve has primary responsibility for price
stability, but Congress can take actions that lower price pressures by
reducing the deficit and making supply-side investments in affordable
housing and clean energy. Raising tax by closing loopholes, equalizing
tax treatment for multinational companies, and improving tax compliance
tend not to be inflationary.
Question. With runaway inflation, a first-quarter decline in GDP,
and increasing odds of a recession, are you concerned that tax
increases could risk killing jobs?
Answer. Please see my answer above.
Question. As we discussed during your confirmation hearing, a big
part of your job description will be oversight over U.S. policy and
strategy at Multilateral Development Banks and International Financial
Institutions (IFIs) such as the International Monetary Fund, World
Bank, and Inter-American Development Bank. A few questions on how you
plan to approach that.
What is your strategy to coordinate the efforts of U.S. executive
directors at the IMF, World Bank and IDB are in alignment with our
broader foreign policy agenda across all multilateral entities?
Answer. If confirmed, I will work to guide and coordinate the
efforts of U.S. executive directors at the IMF, World Bank, Inter-
American Development Bank, Asian Development Bank, African Development
Bank, and the European Bank for Reconstruction and Development to
continue to help advance key U.S. objectives. The international
financial institutions play a crucial role in the global financial
system, in a manner aligned with our values and high standards. They
are essential partners in limiting the frequency and intensity of
economic crises, helping countries to respond to crises, and building
the conditions for longer-term stability, growth, and poverty
reduction. I look forward to working with the U.S. executive directors
at the international financial institutions in which the U.S. is a
shareholder to continue to pursue these goals and to coordinate
consistent and effective U.S. policy positions across the institutions.
Question. Iran is the world's largest state sponsor of terrorism
and continues to enrich uranium at above 60 percent. In June, Iran's
oil exports surpassed 1 million barrels per day--80 percent of which
goes to China. Last week, the administration announced sanctions on 15
vessels and entities carrying Iranian oil to China nearly two months
after the Senate passed by Motion to Instruct calling for that action
to be taken.
Do you believe the United States should oppose loans to Iran and
other state sponsors of terrorism at the IMF and World Bank?
Answer. I strongly support the International Financial Institutions
Act's mandate to oppose assistance to countries that are designated as
state sponsors of terrorism such as Iran, and if confirmed I will work
vigorously to oppose assistance to such countries at the international
financial institutions.
Question. What are your plans to address Iran's malign behavior
(including support for terrorism and nuclear proliferation) within your
portfolio of responsibility?
Answer. I condemn Iran's malign behavior, including its financial
support for malign activities, and if confirmed, I would work with
career staff and my colleagues in the Office of Terrorism and Financial
Intelligence. For example, I strongly support the ongoing U.S. efforts
to prevent countries whose policies we oppose, like Iran, Russia, and
Belarus, from receiving any benefit from their SDRs. If confirmed, I
will continue to work with like-minded countries to prevent them from
doing so.
Question. Reuters reported this week that Binance, the world's
largest crypto trader, facilitated transactions with sanctioned
entities and individuals from Iran.
If confirmed, how will you work with allies to block platform
access to users who are sanctioned, push back against efforts to
circumvent U.S. sanctions, and build consensus with international
partners on proper access to the financial system?
Answer. I would defer to my colleagues in the Office of Terrorism
and Financial Intelligence.
Question. Lebanon is on the verge of becoming a failed state due to
fiscal mismanagement and public corruption. The United States has been
engaged in productive conversations with Lebanon at the IMF about a
liquidity boost to stabilize its economy. I have proposed adopting an
incremental, conditions-based approach to any IMF assistance to
Lebanon.
Before the U.S. supports any initial IMF assistance to Lebanon,
would you agree that the Government of Lebanon must show that it is
implementing needed reforms?
Answer. Any IMF program with Lebanon would require deep and far-
reaching reforms, under a committed government.
Question. Would you also agree that it is important to observe and
confirm the Government of Lebanon's continued compliance with those
reforms when evaluating additional assistance?
Answer. Before supporting any assistance for the Government of
Lebanon, including through the international financial institutions
such as the IMF, I would want to see evidence of the Lebanese
authorities' intent and ability to undertake the deep, systemic reforms
necessary to begin to address their acute economic crisis.
I understand that Treasury is currently working with other
departments across the U.S. government to effectively deliver
humanitarian aid through vetted third-party actors to the people of
Lebanon.
Question. China has increased its investments in Latin America as
part of its Belt and Road Initiative.
What is your strategy to utilize U.S. influence and leadership at
the Inter-
American Development Bank to provide an alternative to China's
predatory lending to our friends in Latin America?
Answer. The United States is committed to promoting democratic
governance and transparency, and supporting policy reform, growth, and
sustainable and inclusive development throughout Latin America. I
understand that Treasury has engaged vigorously with other shareholders
and IDB management to secure IDB management's commitment to implement a
set of priority reforms to improve the relevance and development impact
of the IDB in the region. At the Summit of the Americas, President
Biden also indicated openness to a possible increase for the private
sector arm of the IDB--IDB Invest--to promote private sector-led growth
in the region. If confirmed, I would work with career staff to evaluate
and support proposals from IDB on these actions.
The Partnership for Global Infrastructure and Investment (PGII)
infrastructure initiative, launched by President Biden and his G7
counterparts, is another way in which we are distinguishing ourselves
from China's approach to development, including the Belt and Road
Initiative. The PGII will help support high quality infrastructure
projects that are consistent with debt sustainability and include
social and environmental safeguards. It will also focus on partnerships
that strengthen local capacity.
Bolstering U.S. leadership in the multilateral system, including
the IFIs, is important in this regard. This requires meeting our
financial obligations to the institutions, putting in new resources
when needed, and having confirmed Executive Directors.
Question. The Abraham Accords were a historic achievement for peace
in the Middle East. These groundbreaking normalization agreements
between Israel and Arab states have opened the door to new
possibilities for cooperation on trade and economic development.
In the context of the IFIs, what role can the Abraham Accords play
in multilateral development strategy? What are your plans to leverage
the normalization agreements between Israel and Arab States to bolster
cooperation with each other and the United States at the IMF and World
Bank?
Answer. The Abraham Accords provide an opportunity to enhance
cooperation between Israel and Arab states that can provide benefits
for all the participating countries. It is administration policy to
promote development and cooperation between Israel, other Abraham
Accords signatories, and their regional neighbors. If confirmed, I
would aim to advance this policy. If confirmed, I look forward to
working actively with all of the involved parties, including through
our efforts at the international financial institutions where
appropriate, to support the realization of the economic benefits of
increased cooperation and security for their citizens, including
through increased development assistance where appropriate.
______
Questions Submitted by Hon. Robert P. Casey, Jr.
Question. From PPE to computer chips, the pandemic has shined a
light on just how vulnerable U.S. supply chains are. We have exported
American expertise and know-how to countries like China, ceding our
manufacturing power to foreign adversaries and hurting American
families and our economy. We need to know how much we're relying on
foreign adversaries to design and manufacture goods that are critical
to our economic and national security interests.
How does offshoring American expertise and know-how to places like
China undermine U.S. national security and economic interests, while
hurting American workers and industry?
Answer. Shocks to the global economy from the pandemic and Russia's
war of aggression in Ukraine have refocused global attention on the
importance of economic resilience and addressing supply chain
vulnerabilities. Making American supply chains more resilient can help
resolve the sorts of bottlenecks that are raising prices for American
consumers. Investments like those being made with the Bipartisan
Infrastructure Law in our ports, airports, highways, waterways, and
clean energy infrastructure, as well as those that Congress is
currently considering in R&D and commercialization of new technologies,
and in making more semiconductors in the United States, will help to
promote U.S. manufacturing.
I understand that the Biden-Harris administration is also focused
on working with allies and partners to secure supplies of critical
goods that we do not make in sufficient quantities at home, while
ensuring that high standards for labor and environmental practices are
upheld. If confirmed, I look forward to working with Congress on these
important issues facing our Nation.
Question. For decades, our trade policy has failed to adequately
promote the rights and economic interests of women. Very few of our
trade agreements mention women at all. Even fewer have enforceable
language in the agreement. The Biden administration has made historic
commitments to advancing gender equity and implementing a worker-
centered trade policy. Through the National Strategy on Gender Equity
and Equality, the Biden-Harris administration has set forth ambitious
goals that will help level the playing field for women around the
world.
As the administration seeks to forge a new path with trade policy,
such as with the Indo-Pacific Economic Framework and the Americas
Partnership for Economic Prosperity, how will Treasury ensure that the
rights and economic interests of women are promoted in the development
and execution of our trade policy?
Answer. In October 2021, the Biden-Harris administration released
the first-ever United States Government strategy on gender equity and
equality. While the United States Trade Representative has the lead on
trade issues in the administration, if confirmed, I will work with
Ambassador Tai, interagency colleagues, and Congress to promote
policies that help women participate in and benefit from international
trade.
Question. The world is facing an unprecedented hunger crisis. Since
2018, the number of people facing acute food insecurity has almost
doubled from 113 million to 193 million, according to the World Food
Programme. As global food prices remain at record-breaking levels, in
part due to Putin's continued disruption of Ukrainian agriculture,
rates of hunger will only continue to grow.
In May 2022, International Financial Institutions (IFIs) released
their ``IFI Action Plan to Address Food Insecurity,'' but the plan
still needs to be implemented and much work will remain even after
successful implementation. How will you ensure that the IFIs follow
through on their action plan and support the financing, policy
engagement, technical assistance and knowledge work necessary to
address current levels of global food insecurity and lay the groundwork
to eradicate hunger globally?
Answer. I am very concerned about rising food insecurity and its
impact on the poorest and most vulnerable people and economies around
the world. The IFIs have an important role to play responding to the
food security crisis by implementing the commitments made in the IFI
Action Plan to Address Food Insecurity, as well as supporting
investments to help countries develop more productive and resilient
agriculture in the longer term. If confirmed, I will work with Congress
to continue robust U.S. leadership in the IFIs and work with Treasury
staff, as well as the Offices of the U.S. Executive Directors at the
IFIs of which the United States is a shareholder, to press for urgent
and quality progress on the IFIs' work to address rising food
insecurity and underlying vulnerabilities in food systems.
I am also committed to using every appropriate tool to address the
impact of the current crisis on vulnerable countries. One important way
to do so would be to participate in funding the IMF's trust funds, the
Resilience and Sustainability Trust and the Poverty Reduction and
Growth Trust. These facilities will provide low-cost macroeconomic
support to hard-hit countries alongside appropriate reforms to help
them maintain economic stability while responding to shocks and
reducing their vulnerabilities over the longer term.
______
Prepared Statement of Hon. Ron Wyden,
a U.S. Senator From Oregon
The Finance Committee meets this morning to discuss two key
nominations for important roles dealing with economic and health
policy.
First up, Dr. Rebecca Haffajee is nominated to serve as the
Assistant Secretary for Planning and Evaluation at the Department of
Health and Human Services. This job is right at the center of the
Department's efforts to tackle the biggest health and family policy
challenges, leading on strategy, coordination, and research.
For example, one of those big challenges is also a top priority for
us here on the Finance Committee: improving mental health care in
America. The lack of affordable mental health care is an issue in every
community in every State--the biggest cities and the smallest towns. It
affects people of all backgrounds and all income levels.
That means solving the mental health challenge requires lawmakers
and HHS to bring together the best ideas, no matter where they come
from: from different Federal agencies; from the States and local
governments; from Democrats and Republicans here in Congress.
It's a big help to that process when there's a confirmed Assistant
Secretary for Planning and Evaluation in place. It will also be a big
help that Dr. Haffajee is highly qualified for this job, and she brings
exactly the right experience to her nomination.
In March 2021, she was appointed Principal Deputy Assistant
Secretary for Planning and Evaluation, and she served as the acting
Assistant Secretary for more than a year. She is a top expert and a
widely published researcher on health policy who will help lead
progress on improving mental health, as well as fighting the drug abuse
epidemic, expanding health coverage, and lowering the cost of
prescription drugs.
Next up, Dr. Jay Shambaugh is nominated to serve as Under Secretary
for International Affairs at the Treasury Department. The Treasury's
Office of International Affairs deals with major global economic
challenges: cracking down on currency manipulation; dealing with trade
cheats; and strengthening our relationships with our economic allies,
including coordinating and evaluating the effectiveness of sanctions on
Russia. It all comes down to protecting and growing our economy and
creating jobs so that more Americans have a chance to get ahead.
Dr. Shambaugh, a professor of economics and international affairs
at the George Washington University, previously served as a member of
the White House Council of Economic Advisors and on the CEA staff as
Chief Economist. He is also an author and expert on international
economics.
These are two highly qualified nominees. I want to thank them for
joining the committee today, and for their willingness to serve in
these challenging roles.
Communication
----------
Legal Action Center
225 Varick St., 4th Floor
New York, NY 10014
T 212-243-1313
F 212-675-0286
https://www.lac.org/
July 20, 2022
The Honorable Ron Wyden The Honorable Mike Crapo
Chairman Ranking Member
U.S. Senate U.S. Senate
Committee on Finance Committee on Finance
Washington, DC 20510 Washington, DC 20510
RE: Legal Action Center support for Dr. Rebecca Haffajee's nomination
to be the Assistant Secretary for Planning and Evaluation (ASPE) at the
U.S. Department of Health and Human Services (HHS)
Dear Chairman Wyden and Ranking Member Crapo:
The Legal Action Center (``LAC'') is the only non-profit law and policy
organization in the United States whose sole mission is to fight
discrimination against people with histories of addiction, HIV/AIDS or
criminal records, and to advocate for sound public policies in these
areas. As an organization that works to improve access to lifesaving
substance use disorder (SUD) and mental health care, LAC strongly
supports the nomination of Dr. Rebecca Haffajee to be the Assistant
Secretary for Planning and Evaluation (ASPE) at the U.S. Department of
Health and Human Services (HHS). We urge the Committee to advance Dr.
Haffajee's nomination during tomorrow's Committee markup.
The United States continues to face a national crisis of addiction and
overdose. Every day, more than 130 Americans die after overdosing on
opioids--equivalent to one every 11 minutes. Dr. Haffajee is a top
expert and a widely published researcher on health policy, including
SUD and mental health policy. In her time leading research and
evaluation for HHS, Dr. Haffajee has placed significant emphasis on
addressing addiction and overdose and in developing a strong agenda on
mental health focused on integration and underserved populations. In
this time of increasing suicide and overdose deaths, and escalating
mental health and substance use crises, it is critical for HHS to have
leadership and expertise of Dr. Haffajee's caliber to use the research
process to improve people's health and well-being by ensuring that
evidence-based and other effective SUD and mental health interventions,
services, medications, and supports are accessible.
Thank you for your leadership in improving coverage and access to SUD
and mental health care. Dr. Haffajee is highly qualified to serve as
the ASPE at HHS and we urge the Committee to endorse Dr. Haffajee's
nomination during tomorrow's Committee markup.
Sincerely,
Paul N. Samuels
Director/President
[all]