[House Hearing, 118 Congress]
[From the U.S. Government Publishing Office]


                MONEY IS POLICY: ASSESSING SHORTCOMINGS IN 
                 THE STATE DEPARTMENT'S FOREIGN ASSIST-
                 ANCE GRANTS PROCESS
=======================================================================

                                HEARING

                               BEFORE THE

                       SUBCOMMITTEE ON OVERSIGHT AND 
                               ACCOUNTABILITY

                                 OF THE

                      COMMITTEE ON FOREIGN AFFAIRS
                     U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION

                               __________

                              June 4, 2024

                               __________

                           Serial No. 118-109

                               __________

        Printed for the use of the Committee on Foreign Affairs
        
 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]       


 Available: http://www.foreignaffairs.house.gov/, http://docs.house.gov,
                       or http://www.govinfo.gov
                       
                                __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
56-743 PDF                  WASHINGTON : 2026 
-----------------------------------------------------------------------------------     

                      COMMITTEE ON FOREIGN AFFAIRS

                   MICHAEL T. McCAUL, Texas, Chairman
CHRISTOPHER H. SMITH, New Jersey     GREGORY MEEKS, New York, Ranking 
JOE WILSON, South Carolina               Member
SCOTT PERRY, Pennsylvania            BRAD SHERMAN, California
DARRELL ISSA, California             GERALD E. CONNOLLY, Virginia
ANN WAGNER, Missouri                 WILLIAM KEATING, Massachusetts
BRIAN MAST, Florida                  AMI BERA, California
KEN BUCK, Colorado                   JOAQUIN CASTRO, Texas
TIM BURCHETT, Tennessee              DINA TITUS, Nevada
MARK E. GREEN, Tennessee             TED LIEU, California
ANDY BARR, Kentucky                  SUSAN WILD, Pennsylvania
RONNY JACKSON, Texas                 DEAN PHILLIPS, Minnesota
YOUNG KIM, California                COLIN ALLRED, Texas
MARIA ELVIRA SALAZAR, Florida        ANDY KIM, New Jersey
BILL HUIZENGA, Michigan              SARA JACOBS, California
AUMUA AMATA COLEMAN RADEWAGEN,       KATHY MANNING, North Carolina
    American Samoa                   SHEILA CHERFILUS-McCORMICK, 
FRENCH HILL, Arkansas                    Florida
WARREN DAVIDSON, Ohio                GREG STANTON, Arizona
JIM BAIRD, Indiana                   MADELEINE DEAN, Pennsylvania
MICHAEL WALTZ, Florida               JARED MOSKOWITZ, Florida
THOMAS KEAN, JR., New Jersey         JONATHAN JACKSON, Illinois
MICHAEL LAWLER, New York             SYDNEY KAMLAGER-DOVE, California
CORY MILLS, Florida                  JIM COSTA, California
RICH McCORMICK, Georgia              JASON CROW, Colorado
NATHANIEL MORAN, Texas               GABRIEL AMO, Rhode Island
JOHN JAMES, Michigan                 KWEISI MFUME, Maryland
KEITH SELF, Texas                    BRAD SCHNEIDER, Illinois
RYAN K. ZINKE, Montana
JAMES C. MOYLAN, Guam

                Brendan Shields, Majority Staff Director

                Sophia Lafargue, Minority Staff Director
                                 ------                                

              Subcommittee on Oversight and Accountability

                     BRIAN MAST, Florida, Chairman
SCOTT PERRY, Pennsylvania            JASON CROW, Colorado, Ranking 
DARRELL ISSA, California                 Member
TIM BURCHETT, Tennessee              DINA TITUS, Nevada
FRENCH HILL, Arkansas                COLIN ALLRED, Texas
MIKE WALTZ, Florida                  ANDY KIM, New Jersey
CORY MILLS,Florida                   SHELIA CHERFILUS-McCORMICK, 
NATHANIEL MORAN, Texas                   Florida
                                     MADELEINE DEAN, Pennsylvania

              Parker Chapman, Subcommittee Staff Director
                        
                        C  O  N  T  E  N  T  S

                              ----------                              
                                                                   Page

                            REPRESENTATIVES

Opening Statement of Subcommittee Chairman Brian Mast............     1
Opening Statement of Subcommittee Ranking Member Jason Crow......     3

                               WITNESSES

 Statement of James L. Richardson, Former Director of The Office 
  of Foreign Assistance, U.S. Department of State................     4
  Prepared Statement.............................................     7
Statement of Robert A. Destro, Former Assistant Secretary, Bureau 
  of Democracy, Human Rights, and Labor, U.S. Department of State    11
  Prepared Statement.............................................    13
Statement of Tom Malinowski, Former Assistant Secretary, Bureau 
  of Democracy, Human Rights, and Labor, U.S. Department of State    16
  Prepared Statement.............................................    18

                                APPENDIX

Hearing Notice...................................................    48
Hearing Minutes..................................................    50
Hearing Attendance...............................................    51

                        Materials for the Record

Materials for the record, submitted by Chairman Brian Mast.......    52
Materials for the record, submitted by Ranking Member Jason Crow.    54

 
   MONEY IS POLICY: ASSESSING SHORTCOMINGS IN THE STATE DEPARTMENT'S 
                   FOREIGN ASSISTANCE GRANTS PROCESS

                              ----------                              


                         Tuesday, June 4, 2024

                  House of Representatives,
      Subcommittee on Oversight and Accountability,
                              Committee on Foreign Affairs,
                                                    Washington, DC.
    The committee met, pursuant to notice, at 10:08 a.m., in 
room 2172, Rayburn House Office Building, Hon. Brian Mast 
(chairman of the subcommittee) presiding.
    Mr. Mast. All right. The Subcommittee on Oversight and 
Accountability will come to order.
    The purpose of this hearing is to examine the foreign 
assistance grant making process at the State Department and 
related agencies and I will now recognize myself for an opening 
statement as we begin.

     OPENING STATEMENT OF SUBCOMMITTEE CHAIRMAN BRIAN MAST

    I want to recognize, No. 1, just that yesterday marked the 
35th anniversary of the Tiananmen Square massacre. The Chinese 
Communist Party may have held on to power, no doubt, as we can 
all see but the spirit of the pro-democracy protesters evident 
in Tiananmen Square on June 3d and June 4th of 1989 it does 
live on.
    Today's hearing is an opportunity for Congress to hold the 
State Department accountable for sending American tax dollars 
to thousands of foreign groups, hopefully, in support of 
American values.
    But what we need to see as that's taking place is that 
there not be an instance where there's less accountability and 
oversight than is used to build a bridge or a road here at 
home.
    It's also an opportunity to examine what exactly are the 
State Department's priorities. Is it rising to the challenge of 
taking on foreign superpowers or is it promoting wokeness and 
social justice?
    When it comes to foreign assistance the U.S. Government 
provides more than every other nation combined. Every year the 
State Department, DOD, the Commerce Department, Agriculture 
Department, the EPA, and many other Federal agencies send tens 
of billions of dollars to other countries with very few strings 
attached and with basically no discernible strategic benefit 
for the United States of America and its citizens, at least 
that's the way many of my constituents feel as they take a look 
at this on a daily basis.
    The half-million-dollar grant promoting atheism in Nepal 
would be one example of this. Another example is that the Biden 
administration has sent more than $2.8 billion to Afghanistan 
since the Taliban took power in August 2021.
    A report shows tens of millions of dollars of that money 
going directly into the hands of the Taliban. There was a grant 
for $20,000 to fund drag shows in Ecuador. Unfortunately, the 
examples mentioned are likely only the tip of the iceberg.
    As some of our witnesses will explain there is a culture of 
rot within the State Department that has perverted how American 
tax dollars are being spent.
    We're seeing grants being structured to promote avowedly 
left wing agendas and then when the money is approved there's 
little monitoring or evaluation of how these grants are 
implemented.
    Let's examine some of the examples that I gave. Take the 
$500,000 grant promoting atheism in Nepal which was, to say the 
least, denied for hours in this very room until we actually 
held up the document showing that this was in fact factual.
    This committee sent more than 10 requests for information 
about this grant to the State Department over a 1-year period.
    We didn't get any answers until staff from this committee 
were able to track down irrefutable proof when they were on a 
staff delegation to Nepal the State Department was in fact 
funding atheism in Nepal. In many places they're building--
working to help build useless piers in places like Gaza.
    If that wasn't bad enough the implementing partners are now 
admitting that that initial $500,000 was approved without the 
establishment clause concerns even being raised.
    The State Department doesn't want us to know how many of 
the instances like this have occurred and it appears to me they 
don't know themselves. We need to know why the State Department 
is allowing grant beneficiaries to craft their own monitoring 
and evaluation criteria for how this money is spent.
    We need to know why the State Department is often unable to 
assess the actual impact of a grant. They can tell us that a 
grant went to an NGO tasked with distributing humanitarian aid 
in the form of wheat, yet they can't tell us if the wheat got 
into the hands of the civilians that actually need it.
    The State Department's preferred evaluation is an impact 
assessment but they are not required and are seldom used. We 
need to know why that is the case.
    Finally, the hardworking American taxpayers who fund these 
grants, who go to work every day, have money taken out of their 
pocket and have it sent to other countries, they should be able 
to easily understand what is the benefit being derived for the 
United States of America with their dollars.
    And with certain humanitarian aid the people in the State 
Department and/or USAID they don't even want to label this aid 
as coming from America. This makes you wonder even further how 
do the people on the ground know that America has done 
something good for them.
    Every dollar spent abroad should benefit America's national 
security interests, period, without waste, without excuse, and 
in a way wholly different from the transparency that we receive 
right now.
    America is competing for influence all across the globe 
with China and Russia and Iran and other enemies. We're 
fighting to secure allies and our tax dollars should be going 
to benefit America's national security interests.
    Yet, we're not seeing that from Joe Biden's State 
Department. China's Belt and Road Initiative is building 
highways, ports, and bridges.
    Meanwhile, our State Department is promoting atheism. This 
is a failing strategy and, hopefully, today's hearing and our 
witnesses will shed light on what Congress can do to ensure 
American tax dollars are not wasted. I look forward to hearing 
the testimony and I thank all of our witnesses for being here 
today.
    The chair now recognizes the ranking member, the gentleman 
from Colorado, Mr. Crow, for any opening statement that you may 
have.

  OPENING STATEMENT OF SUBCOMMITTEE RANKING MEMBER JASON CROW

    Mr. Crow. Thank you, Chairman Mast. I want to start by 
thanking all of our witnesses for being here and especially 
welcoming back our former colleague, Congressman Malinowski, to 
the committee to once again share his insights and his 
expertise.
    I hope that today we can have a good faith conversation 
about improvements to the foreign assistance process and about 
what robust assistance means for our interests in an era of 
renewed great power competition.
    This is what I believe this committee should be focused on 
and what congressional oversight should be all about. This 
hearing is also an opportunity to dispel some of the false 
arguments being pushed by those who want to curtail U.S. global 
engagement and leadership.
    These arguments have crept into the discourse in Washington 
and are amplifying talking points used by our adversaries to 
delegitimize the work of our diplomats and our development 
professionals around the world.
    So I want to set the record straight. Our foreign 
assistance is not a pot of handouts overseen by deep State 
bureaucrats pushing domestic political causes nor is it a slush 
fund for writing blank checks to implementers without 
oversight.
    This is exactly what opponents of U.S. global leadership 
want the American people to believe but it is not the truth. 
The truth is our foreign assistance programs go through 
rigorous process to justify their creation, competitive bidding 
to find the best implementers for the job, and have mechanisms 
in place to recoup American investment should any kind of 
waste, fraud, or abuse occur.
    The truth is these programs don't push domestic political 
agendas but promote democracy and human rights, counter 
corruption, and expose the malign influence of Russia, China, 
Iran, and others.
    The truth is these programs help us strengthen existing 
relationships, build new partnerships, and create environments 
that are permissive for U.S. businesses. These efforts are 
vital to our national security.
    That's not to say some parts of the process can't be 
improved, hence, the need for this committee. Sometimes 
programs fall short in achieving their objectives and sometimes 
mistakes are made.
    So I always welcome good faith suggestions from our 
witnesses about legitimate gaps that need filling and ways to 
make our programming more effective. But what I hope we avoid 
is using this hearing as a justification to gut our foreign 
assistance and our foreign policy.
    Since being elected to Congress advancing the foreign 
policy and national security interests of the United States 
have been among my top priorities and serving on the House 
Intelligence Committee, the House Armed Services Committee, and 
the House Foreign Affairs Committee one fact has repeatedly 
stood out as self-evident, that we cannot win the competition 
with Russia and China if we do not invest in the necessary 
tools to defeat them.
    That is why I'm deeply concerned about the Republicans' 
announced 11 percent cut to our State and foreign operations 
budget and hope to discuss what draconian cuts like these would 
mean for our ability to use foreign assistance as a tool to 
advance our national interests.
    To quote former Secretary of Defense James Mattis, quote, 
``If you don't fund the State Department fully then I need to 
buy more ammunition.''
    Thank you again to our witnesses for being here, and I 
yield back.
    Mr. Mast. Thank you, Mr. Crow.
    Other members of the committee are reminded that opening 
statements may be submitted for the record.
    We're pleased to have distinguished witnesses before us 
today on this important topic. Mr. Richardson is the former 
director of the Office of Foreign Assistance at the State 
Department.
    Prior to this, he served as coordinator of U.S. Agency for 
International Development's transportation task force team 
where he established new policies and processes within the 
agency; Hon. Robert Destro, the former assistant secretary of 
State for Democracy, Human Rights and Labor during the Trump 
administration.
    As assistant secretary he led the State Department's 
worldwide policy and foreign assistance programs on human 
rights and democracy issues such as free and fair elections, 
internet freedom, and the growth of the surveillance state; and 
last, we have Hon. Tom Malinowski, formerly represented New 
Jersey's Seventh congressional District from 2019 to 2023.
    Prior to his time in Congress he served as the Assistant 
Secretary of State for Democracy, Human Rights and Labor during 
the Obama administration.
    Thank you for being here today. Your full statements will 
be made a part of the record and I'll ask you to keep your 
spoken remarks to 5 minutes in order to allow time for members' 
questions.
    And I now recognize Mr. Richardson for his opening 
statement.

                STATEMENT OF JAMES L. RICHARDSON

    Mr. Richardson. Great. Thank you, Mr. Chairman, Ranking 
Member, distinguished members of this committee.
    I really appreciate the opportunity to discuss U.S. foreign 
assistance, specifically grants at the State Department.
    Foreign assistance does have the potential to be a force 
multiplier for U.S. interest while also positively impacting 
the lives of millions of people around the world. When done 
correctly our foreign assistance demonstrates the best of 
America and enhances our security and economic goals.
    But foreign assistance is not charity, as both the chairman 
and ranking member have mentioned, and it should never be used 
to advance ideological or personal agendas. It should only be 
used to advance the core national security interests and goals 
of the United States.
    As someone who's spent a lot of time here on the Hill, at 
USAID, and the State Department working on foreign assistance I 
know that this committee has seen that our efforts don't always 
meet these expectations.
    We have seen grants undermine our closest allies, promote 
activities inconsistent with the culture or religion of partner 
nations, and fund projects that fail to advance America's core 
national security interest.
    But the world of grants at the State Department is complex. 
Unfortunately, we don't always have clear goals, clear 
approaches, or a clear model for success.
    Part of the challenge is, honestly, having too much money 
in the system. Part of it is an over politicization of foreign 
assistance, and still another is that foreign assistance is 
just tough. It's hard to do in hard places.
    The first step of the process is to clearly articulate 
goals and objectives when approaching foreign assistance 
grants. As such, our grants should be aligned to the national 
security interest of the United States.
    Unfortunately, I do fear that the State Department has 
taken a far too decentralized approach resulting in fairly 
murky goals and a lack of direction. Grants of the State 
Department are also too stovepiped with often too little 
socialization across the enterprise.
    Functional bureaus don't always engage regional bureaus, 
embassies, or other agencies doing similar work, specifically 
USAID. This can often result in inherently less impactful 
programming because I believe deeply that the best ideas have 
broad engagement and broad buy-in.
    The next step in the grant process is designing the notice 
for funding opportunities which provides the roadmap for 
achieving objectives. During this process we decide what type 
of grantee we want, what metrics will indicate success. 
Recently and all too often notices seem to be written to appeal 
to specific groups with specific ideological bents.
    This can generate outcomes incompatible with good diplomacy 
as the values and ideas inherent in these grants can 
fundamentally be at odds with the local culture where they are 
intended to be implemented. This can alienate our partner 
countries, hamper developments, and hinder U.S. strategic goals 
in the region.
    Furthermore, politicizing foreign assistance, which already 
does have low support among the American people, is just 
fundamentally unwise.
    I would argue that it's important for us to return to a 
much more traditional, diplomatic, and development approach 
that is focusing our attention on real national security 
priorities albeit with new tools and paradigms with sharper 
monitoring and evaluation approaches.
    This brings me to monitoring, evaluation, and outcomes. Too 
often our grants do not seem to meet common sense monitoring 
and evaluation standards. For example, grant awardees 
essentially write their own monitoring evaluation requirements 
including a focus on self-reporting quality versus quantitative 
data.
    This results in weak performance standards that rarely if 
ever include an impact assessment, as the chairman mentioned, 
and monitoring in the field is often nonexistent. State 
Department officials rarely venture out from the capital city 
to see the progress of America's investments.
    Part of the challenge is the simple--the amount of funding 
in the system and another part is the structural and cultural 
issues at the State Department. From the macro perspective, I 
fear the problem is even worse.
    Requirements are focused on inputs and outputs rather than 
outcomes. The State Department is pretty good at tracking 
inputs. Most bureaus can tell you whether the grant was used 
for the intended purpose.
    However, we fail to track whether the U.S. Government is 
having the intended impact in the country or sector that we're 
trying to reach or whether this type of program that we're 
actually funding is the most impactful approach.
    To that end, awardees should not write their own monitoring 
and evaluation requirements. Instead, I would argue that a team 
of professionals in and out of the associated funding office or 
bureaus should draft them as part of the development and review 
process.
    Let me close with this. America is not alone on the foreign 
assistance stage. We are competing with nefarious and self-
serving actors including the Chinese Communist Party.
    The CCP knows exactly what it's trying to achieve with its 
foreign assistance like efforts from capturing strategic ports 
to controlling rare earth metals. There's no confusion or lack 
of focus on their part.
    Our foreign assistance efforts are inherently more noble 
than the CCP but we owe it to the system. We owe a better 
system to the world and the American people.
    Again, I appreciate the committee's efforts to dig into 
this process. If we get it right we will not only direct our 
resources in a manner that advances America's national security 
but also significantly improves our diplomatic efforts and 
achieve the best possible outcomes at home and abroad.
    Again, thanks so much for this hearing.
    [The prepared statement of Mr. Richardson follows:]
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Mr. Mast. Thank you, Mr. Richardson.
    I now recognize Mr. Destro for his opening statement.
    Microphone, please. That'll help us all.

                  STATEMENT OF ROBERT A. DESTRO

    Mr. Destro. Yes, thank you, sir. Thank you.
    Chairman Mast, Ranking Member Crow, and distinguished 
members of the committee, thank you for scheduling the hearing 
and thank you for inviting us to be here.
    I'm going to do in my 5 minutes of remarks something I 
learned at the State Department, which is to put the bottom 
line up front and that is my specific recommendation today, 
because what you all do here is legislate, is the Congress 
require all Federal agencies, not just the foreign assistance 
programs, to make detailed information about all unclassified 
grant awards and subawards, grantees and subgrantees, 
implementation and evaluation available online at Grants.gov, 
USAspending.gov, and ForeignAssistance.gov as soon as the money 
is obligated. Otherwise, you run into the problems that 
Representative Crow talked about--you know, the idea of, well, 
what's the agenda here.
    I'm going to be considerably less charitable than my friend 
Jim Richardson because when I got to the State Department one 
of the first battles I fought, I mean, literally the first day 
I got there was a member of my staff who wanted to go to 
another country in the Middle East and visit with all the 
grantees and the answer was absolutely not.
    You know, and as the new lead naive assistant secretary I 
was, like, well, I don't understand, to which the response was, 
well, you know, that's very sensitive information.
    You know, and my reaction--my initial reaction was, well, 
don't I sign the checks, you know, and the answer was, well, 
you don't understand--that's very sensitive, to which the 
response was to hold up my badge and say, I have higher 
security clearance than you do.
    And so what we're seeing here, if you take all that foreign 
assistance money and all the grants, literally to go from the 
top down to the ground level, whether it's in Sudan or Belize 
or wherever, you know, we don't know the story of American 
foreign assistance programs and unless we see what happens on 
the ground.
    That was the point that Jim was making. It's, like, yes, we 
spent a lot of money. You know, it took me a while to figure 
out that at DRL we do a lot of training programs. We spend a 
ton of money on training.
    You know, the question is what did they learn, and when I 
spoke with some folks from North Africa and asked them after 
having gone through the training whether or not they had--
whether or not they knew what a whip list was or they knew that 
they could go visit their representative down in their home 
district they said, wow, we never learned that, to which I 
turned to the staff and said, well, what did they learn.
    So what we're seeing here, and I think that Representative 
Crow kind of accurately captures the problem when he says--and 
I don't think it's unreasonable--by writing blank checks to 
departments and administrative agencies across the Federal 
Government Congress is funding and maintaining a vast counter 
State.
    It's actively violated the constitutional laws of the 
United States by funding censorship programs designed to limit 
speech at home and abroad. It attacks religious freedom at home 
and abroad and it spreads noxious theories about racial and 
cultural identity both at home and abroad.
    Those programs--sometimes, not always, in fact, not most of 
the time--poison bilateral relations with other countries with 
incessant demands and funding for internal political change and 
cultural change while failing to notice coup and growing 
opposition in friendly countries through its heavy handed and, 
I would submit, unconstitutional use of sanctions tools against 
both friends, rivals, and American citizens.
    The counter State that this Congress is funding and 
maintaining is comprised of unelected and unaccountable 
bureaucrats who no longer make any pretense of the fact that 
they are politically accountable where they actively resist 
efforts by Congress and the executive branch to oversee 
billions of dollars of Federal grants for both foreign and 
domestic programs, ideologically driven NGO's, and 
international organizations who receive those billions through 
an opaque grants process that puts a premium on spending the 
money by the end of the Fiscal Year rather than by measuring 
outcomes in the places where they deliver services.
    And then, last, a small and shrinking group of large NGO's 
at international development consulting firms who are the 
partners of choice for the bureaucracy because, unlike NGO's on 
the ground in country, they have the capacity to comply with 
the mind-numbing requirements of the Federal acquisition 
regulations.
    And so I'm going to stop here and leave time for questions. 
But there's plenty of data I can add. I've got figures for 
Haiti, the Sahel, Afghanistan, that will show you we got 
precious little for the money we spent.
    Thank you.
    [The prepared statement of Mr. Destro follows:]
    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Mr. Mast. Thank you, Mr. Destro.
    The chair now recognizes Mr. Malinowski for 5 minutes.

                   STATEMENT OF TOM MALINOWSKI

    Mr. Malinowski. Thank you, Mr. Chairman, Ranking Member 
Crow. It's great to see you. Great to be back in this room.
    Chairman Mast, thank you for leading us off by reminding 
everybody that today is the 35th anniversary of the Tiananmen 
Square massacre.
    It's a day we always have to remember but it also, I think, 
helps to ground this conversation in what's important, a 
reminder that we are still in a struggle between 
authoritarianism and dictatorship in the world and we need to 
be giving the State Department the tools to stay in that fight.
    As you know, before I came to Congress I was also the 
assistant secretary for the DRL bureau--democracy and human 
rights. This is the State Department's front line expeditionary 
force in supporting people who are struggling for freedom and 
democracy around the world.
    A couple things about the budget. It's grown quite a bit in 
the last few years, not because any president has demanded it 
but because Congress has demanded it and the main champions, in 
fact, of DRL's budget in Congress, I would say, have been 
Republican appropriators in the last few years. It's certainly 
been bipartisan.
    Another really important fact for you guys is to keep in 
mind DRL's grant programs around the world. 85 percent of them 
are earmarked by Congress for specific countries and purposes.
    This is not a blank check. This is a part of the State 
Department that is probably the most directed, the most 
overseen by Congress of any part of that department.
    I want to make sure everyone has a clear picture of what 
these funds do every single day. They support Chinese activists 
who have kept the spirit of that June 4th movement alive, 
helping them to break through the Chinese Communist Party's 
censorship and propaganda efforts and documenting their crimes.
    They help to smuggle news and books and TV shows and movies 
to North Korea so that the people of that closed communist 
dictatorship will know what life is like in democratic 
countries.
    They help Afghan women stay safe as they fight to get their 
rights back. When our military left these programs--these grant 
programs remained.
    In Iran they help dissidents safely access the global 
internet when the clerical regime tries to shut them off. They 
help Cubans document human rights abuses by their government 
and press for the release of political prisoners.
    They've empowered Christians and other religious minorities 
in Iraq and other parts of the Middle East fight for their 
rights under very difficult circumstances.
    Under a program I got started they support anti-corruption 
investigators in every part of the world and when we think 
about our contests with China and Russia this is incredibly 
important.
    Every year DRL grantees expose corrupt business deals that 
the Chinese government in particular is foisting on countries 
in Africa and Asia and Latin America. Very much in our 
interest.
    Putin and Xi hate these programs. They hate what we do with 
this money. That's why they are pushing all of their allies in 
the developing world to pass these copycat laws criminalizing 
these kinds of partnerships with the United States and other 
Western aid agencies.
    There are hundreds of thousands of people in the country of 
Georgia on the streets the last few weeks protesting that kind 
of law. They know what's at stake. So does their Russian-
supported government, and what disturbs me most is that our 
adversaries have now turned to influence operations in the 
United States to try to discredit what the State Department 
does.
    Now, my colleagues on both sides of the aisle, you know I 
don't mince words or dance around sensitive subjects. So I'm 
going to align myself with the chairman of this full committee 
Mr. McCaul, my friend, who recently said that Russian 
propaganda has made its way into the congressional debate about 
America's support for our friends and allies in the world.
    I will align myself with Senator Mitch McConnell, who I 
often don't agree with but who recently warned us not to take 
our foreign policy cues from Viktor Orban's Hungary, a country 
that he rightly served--said serves as China's doormat to 
Europe.
    I get why authoritarian governments and American think 
tanks that have forged partnerships with those governments 
might want us to stop these efforts.
    I get why they're smart enough to be using language from 
our own culture wars, language about wokeness, to try to turn 
us against what our government does to promote freedom and 
democracy around the world.
    I don't get why any of us would listen. Doesn't mean I 
agree with everything the State Department does. If you ask me 
to review the thousand or so grants the DRL manages every 
single year I'm sure I'd find a couple things I disagree with 
or that I'd redirect and, obviously, I believe in strong 
congressional oversight.
    But the last thing we should do is to gut or politicize 
this programming or to disparage the hardworking, nonpartisan 
career public service servants who implement it. That would be 
doing to ourselves what our adversaries have long tried and 
failed to do to us.
    Thank you. I yield back.
    [The prepared statement of Mr. Malinowski follows:]
   [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Mr. Mast. Thank you, Mr. Malinowski.
    Let me just say I do love this panel, and this is not to 
diminish you at all, Mr. Richardson, but I love the fact that 
we have two individuals having held the same position at 
different times from different administrations.
    I think it does allow us to get a very good understanding 
of some of the work that's done there. So I'm glad to see the 
way that this panel was formulated.
    Members are going to be recognized for 5 minutes of 
questioning and if they want we'll probably go to another round 
of questioning if members desire. I'm going to begin by 
recognizing myself for 5 minutes.
    And, Mr. Malinowski, you used the term earmarks. I also sit 
on the Transportation and Infrastructure Committee. When I 
think of an earmark I might not do the design and engineering 
of a bridge but we're going to directly identify, hey, we need 
a bridge here, a road here, a piece of track here or whatever 
it is and we're going to directly identify that.
    And I would dare say that if we did foreign assistance in 
that way I think most Members of Congress would probably not 
want to put their names on a lot of the grants that are going 
out or what--as you used them call them earmarks. I don't think 
they would want to earmark them with their name on it.
    But how do you mean that term earmarks? Because it's not 
the same way that we would talk about a transportation earmark.
    Mr. Malinowski. It's not exactly the same but basically the 
way it works is Congress will say, all right, State Department, 
you got hundreds of millions of dollars--we're going to direct 
that you spend, say--I'm making this up--$4 million on internet 
freedom programs for the people of Iran.
    You're not picking the contractor who might implement that 
program if it's done that way but you're also not picking the 
contractor who's going to build your bridge, right.
    You're saying this is the objective--this is what I want 
you to try to achieve in this place--and then the State 
Department goes out, hopefully, ideally, in consultation with 
those Members of Congress who are most interested in that and 
they figure out a way to do that.
    And then the oversight does not end because if you are the 
person in Congress who pushed that earmark you're, I assume, 
going to be talking to them regularly about how they're going 
about implementing it.
    Mr. Mast. So I wouldn't call that an earmark, right? It'd 
be like saying, well, Congress approved a hundred million 
dollars for roads across America. That doesn't mean that we 
said which roads we want to build. We just approved money for 
roads. That's not directly saying we need one here, we need one 
there.
    Mr. Malinowski. No, it's much more specific. It's much more 
specific. So----
    Mr. Mast. But the members are not putting their names on 
the specifics of the ones that they want----
    Mr. Malinowski. No. You're passing it. It's in the law. 
So----
    Mr. Mast. We need members to put their names on the 
specifics of these.
    Mr. Malinowski. Right. Well, I think the difference is when 
I would yield on something----
    Mr. Mast. I'm going to go to Mr. Destro. But I thank you 
for your analogy. I appreciate it. You gave me some food for 
thought.
    Mr. Malinowski. It's not for your district. That's the 
difference.
    Mr. Mast. So, Mr. Destro, I want to go to whether--what I 
brought up with some of the examples--drag shows in Ecuador 
approved, ultimately not funded because of all of the political 
pressure, but moronic to say the least.
    The atheism in Nepal, half a million dollars--the money 
going to the Taliban, you name it--are these outliers or is 
this the tip of the iceberg? Microphone, please.
    Mr. Destro. I agree with Congressman Malinowski that the 
staff is hardworking, that they're dedicated public servants.
    But I can also tell you that the staff in DRL--the policy 
staff in DRL versus the funding staff in DRL was extremely 
frustrating. They could not get information about where the 
money was going in their countries and they were completely 
forbidden to talk to the contractors.
    And so, I mean, when you look at a country like Lebanon who 
had an earthquake in the explosion in the port, you know, I 
called their staff together and said, well, what are we doing 
in Lebanon where we can kind of get the contractors and get 
people over there to help them.
    You know, you look at the perception of our programs. I 
have spoken to since I left the State Department and during the 
time I was there to many people in Nigeria. I've introduced 
them to grants.gov.
    I've introduced them to USAspending.gov and the response is 
this is like the dew that never makes it to the grass. Where's 
all that money going; how is it helping us.
    And so the perception here--I don't want to undercut the 
really good work that's done. The problem is that you have a 
State Department, among other things, that is paying to foster 
internet censorship, which is exactly the opposite of what we 
in DRL were supposed to be doing.
    Mr. Mast. So let me ask again. Are the examples I gave the 
tip of the iceberg or are they outliers?
    Mr. Destro. I think the answer is not clear, and I don't 
think--if you--one of the things I mentioned in my written 
statement is that in response to staff concerns I asked DRL to 
come up--the technical people at State to come up with a real-
time data base of where we were spending our money.
    Mr. Mast. All of it?
    Mr. Destro. All of it. Yes, all of it, so that all the 
other bureaus could get to it. It would tap into the data base.
    Mr. Mast. How did it work?
    Mr. Destro. And it was built and it was one of my most 
progressive and, I think, honorable staff members--I mean, I 
loved her opinions on things--said, you know that that data is 
pretty inconvenient. It's going to cause an uproar in the 
countries if the information gets out.
    So that's not--those are not my words. And so the fact of 
the matter is, Mr. Mast, we don't know the answer to your 
question because the information is opaque and not available.
    Mr. Mast. Thank you, Mr. Destro. Thank you, Mr. Malinowski. 
Sorry I didn't get to a question to you, Mr. Richardson.
    The chair now recognizes Ranking Member Crow for 5 minutes.
    Mr. Crow. Thank you, Chairman.
    You know, it strikes me that there's two issues going on 
here. There's one discussion about whether or not we should be 
doing this stuff at all, right--whether this money should be 
appropriated for these programs in the first instance, and 
that's kind of the larger debate that we're having right now as 
we address the Republicans' proposed 11 percent across the 
board cut for FSOBS, which would cutoff these programs.
    Versus, Mr. Destro, I'm hearing you say the implementation 
and oversight of these programs, right, which seems to be the 
thrust of this conversation, not necessarily that we shouldn't 
be doing these things, that they do have value if they're done 
the way they should be done versus making sure they are done 
the right way.
    So, Mr. Malinowski, I would just, you know, love to hear 
your response to Mr. Destro's comments about implementation and 
oversight and your experience with that.
    Mr. Malinowski. I find it very strange. I signed off on 
every grant. I knew exactly what we were doing around the 
world. I don't think any of my predecessors--certainly, I did 
not--have any trouble understanding what we were doing. There 
was trust between leadership and staff.
    Talking about transparency and putting the stuff online do 
not forget, particularly for the bureau that we both led, most 
of the grants are going to help people who are living in 
dictatorships.
    Mr. Destro mentioned Lebanon. Like, imagine you're giving a 
grant to an NGO in Lebanon that is fighting corruption in that 
country where the government is heavily influenced by 
Hezbollah.
    You're telling me you're going to put that on a website so 
that Hezbollah can see exactly who in Lebanon is getting a 
grant to expose their corruption? Are you crazy?
    So if members of his staff were telling him this is 
sensitive they were absolutely right. We are helping people who 
are risking their freedom and in some cases their lives to 
stand up for democracy, freedom, and human rights in their 
countries and you're darn right that one of the main missions 
of the staff and that bureau and others in the State Department 
is to keep our partners safe.
    The assistant secretary knows what's going on if he or she 
is running the bureau correctly. But that doesn't mean--and 
Congress should know if you ask--but we have to keep that in 
mind.
    Mr. Crow. And, Mr. Destro, do you think that an 11 percent 
across the board cut to the FSOBS program would be, in your 
view, beneficial? Would that enhance oversight or solve the 
problem that you're talking about about implementation and 
transparency?
    Mr. Destro. Well, you've got a couple of questions there. I 
don't think that an 11 percent cut is unreasonable. I mean, 
most Americans are taking a much bigger haircut when they go to 
the grocery store every day.
    You know, so the fact that it's not the amount of money 
that we spent. I think Jim Richardson and Tom Malinowski have 
both said it's the effect and the outcome that we're looking 
for.
    You know, and it's not fraud, waste, and abuse we're 
talking about. That's the wrong--that's a category error. What 
we're talking about is programs that don't advance America's 
foreign policy interest and many programs that actually 
antagonize the people in the country who get it.
    Mr. Crow. And your response to that, Mr. Malinowski?
    Mr. Malinowski. Well, they certainly don't antagonize the 
people who get it. What I've heard a couple of times from Mr. 
Destro is that they may antagonize governments, and I'm 
surprised to hear a former assistant secretary for democracy 
and human rights suggest that we shouldn't be making democracy 
and human rights grants that antagonize governments.
    I mean, by definition if you are helping people--and that's 
the mission of this bureau and of the State Department, a 
mission defined by the U.S. Congress--if you're helping people 
advance human rights and democratic reform dictators aren't 
going to like that.
    Mr. Crow. I guess one thing is I'm struggling with this 
notion that the resources and the amount of money doesn't 
matter. It's the effect.
    But if you're cutting the resources and you're cutting what 
you're actually allocating in the projects themselves then the 
effect goes away, right?
    Mr. Malinowski. Of course, it matters, and it matters at a 
time--and I think there's bipartisan recognition of this as we 
have heard today--that China in particular and Russia to some 
extent spend billions of dollars on influence operations around 
the world and our comparative advantage in these countries is 
that we, unlike them, are associated by the peoples of these 
countries with these values of rule of law, human rights, 
democracy.
    We work with them. We work with civil society and we should 
be doing more of that, not less of that, if we're going to 
actually win this competition, if we're going to be serious 
about it.
    Mr. Crow. I think the point for me here is that you can't 
separate the conversation about allocation of resources and 
implementation, right. If you get rid of the resources then 
implementation doesn't matter because the programs go away, 
right.
    And I'm all about increasing efficiency, having better 
implementation, doing things better all the time. Every 
organization can do things better. But if we cut the resources 
and the programs go away then the entire conversation goes away 
and we can't even have a seat at the table.
    I yield back.
    Mr. Mast. Thank you, Mr. Crow.
    The chair now recognizes Mr. Perry for 5 minutes.
    Mr. Perry. Thank you, Mr. Chairman.
    Gentlemen, thanks for being here. Tom, it's good to see 
you. Welcome back.
    Mr. Destro, you coordinated for Tibetan issues when you 
were working in the last administration. I think Tibet suffers, 
as we know, from deteriorating human rights, poor economic 
development conditions, restrictions against religious 
freedoms, and repression of Tibetan culture as the Communist 
Party of China seeks to consume and subsume Tibet.
    With that in mind, did the Biden State Department encourage 
atheism in Tibet? Is that my understanding. I just want to--do 
you know about--what's the story there?
    Mr. Destro. It was in Nepal.
    Mr. Perry. It was in Nepal. Okay.
    Mr. Destro. And I can tell you this.
    Mr. Perry. Okay. Okay, go ahead. Go ahead. Tell me.
    Mr. Destro. No. No. Please finish your question.
    Mr. Perry. Well, what's the interest of the United States 
of America in supporting atheism in Nepal? Like, what--how does 
that help us? What are we trying to achieve?
    Mr. Destro. Well, there's two answers to that question. 
One, we don't have any and there's no evidence that atheists 
are a persecuted class in Nepal. But even more so, you know, 
one of the big issues I had to deal with is talking to Nepal 
into not sending people back to China.
    I had to intervene with the foreign minister and ask him, 
please don't send people back who escape. And you could expect 
once this came out where the conversation would be--so why are 
you trying to destroy our culture?
    You know, so you're asking other countries to do things in 
the field of human rights, very valuable things in human 
rights, and then you're kind of hitting them in places they 
don't expect to get hit.
    And it's a false dichotomy that Mr. Malinowski is pointing 
out. It's not about--just about governments. It's about how the 
people see our government spending and who they're spending it 
on.
    The people in Nigeria I have been speaking to for years now 
and they say, who are these people who get the money? What do 
they do with it? And I have suggested that their independent 
journalists go out and start knocking on some of the doors to 
find out where that money comes from.
    Mr. Perry. Yes, I'm actually outraged that we're spending 
money whether it's in Tibet or Nepal on atheism abroad. I just 
feel like we could better spend our money and we'll talk about 
that a little bit more.
    Mr. Richardson, it's come to my attention that grant 
awardees were being able to write their own monitoring and 
evaluation requirements. So they get the grant money--that's my 
understanding.
    So I want you to confirm this. Maybe I'm wrong. And then 
they write their own monitoring and evaluation so they're 
watching themselves and how they spend it. Is that--am I 
mischaracterizing it?
    Mr. Richardson. Yes, that's essentially right. When a 
grantee puts forward its proposal it'll have a monitoring/
evaluation section in that. Often what you find is that the 
monitoring and evaluation standards seem, I would argue, pretty 
weak and so--but it is almost a self-reporting.
    The latest guidance that I saw from the State Department 
focuses on essentially a qualitative personal experience of 
whether that funding helped them or not, and rather than 
looking at actual data or doing a true analysis and 
monitoring--true monitoring and evaluation, which is what you 
would actually want to do, because what you really want to do 
is see does that money actually have the impact you're trying 
to accomplish rather than does this just make people feel good.
    And that seems to be the direction that the State 
Department seems to be taking in this new monitoring and 
evaluation standards that they've put forward.
    Mr. Perry. So it seems to me that we should be--you know, 
when the people in the district I represent wake up early in 
the morning and head off to work to pay their taxes, can't 
afford their groceries, their electricity bill, you know, their 
daycare bill, funding things--climate pet projects or, you 
know, DEI initiatives, other fabricated issues as I would call 
them as opposed to major infrastructure projects, oil and gas 
leasing or drilling, mining, real economic development projects 
that could be assessed at tangible results and then evaluating 
whether these funds have an impact as essentially optional is 
astounding to me in the sense that last year, 2023, foreign 
assistance, government, State, and USAID combined spent $56 
billion--$56 billion--while China is out doing hard things.
    They're not doing DEI initiatives. I guarantee you they are 
not. And climate issues--they're not doing any of that stuff.
    We're spending our taxpayers' money on this stuff and then 
we're not even requiring a third-party evaluation on 
effectiveness. It's astounding. It's outrageous.
    For those who say 11 percent is too much let me tell you 
what will tighten up the organization, not having as much to 
spread around because they're spreading it around willy nilly 
like they don't care because they don't care.
    Well, my people, the people that I represent, that are 
working hard for their money, they do care, and they don't want 
to waste it. I yield the balance.
    Mr. Mast. The chair now recognizes Mr. Burchett for 5 
minutes.
    Mr. Burchett. Thank you, Mr. Chairman.
    Votes have been called. Are we still good to go?
    Mr. Mast. If you would be more comfortable coming back here 
after the vote we can hold until then. I can give you your 5 
minutes then. Either way.
    Mr. Burchett. Okay, there's still time. Progress.
    Mr. Malinowski, it's good seeing you, brother. I miss your 
receiving abilities on the football field.
    Mr. Malinowski. I can still play on the football team, you 
know.
    Mr. Burchett. Yes, you can. Well, but with all those pros 
they don't ever throw to people like me and you anyway. So 
anyway----
    Mr. Malinowski. I think you caught a couple when----
    Mr. Burchett. Well, I'm incredibly gifted. Thank you for 
noticing.
    Mr. Richardson--I appreciate all you all being here and all 
the usual stuff we say. Can you explain how too much money in 
foreign aid can be a bad thing?
    Mr. Richardson. Yes. No, I appreciate the question. It is, 
I would say, two things. One, you always want to look at the 
outcomes rather than the inputs, which is the money going into 
the system.
    Not every program is designed for the same impact. Not 
every sector will have the same level of impact that is 
directed to the national security interest of the United 
States.
    When it comes to the pure dollars in what you find is that 
we have both grants officers and contracting officers who are 
actually doing the hard work of crafting the right grant 
agreement or the right contracting agreement or the right 
cooperative agreement, and if you have too much money into the 
system you're overburdening those contracting officials and so 
that results in less quality and less focus.
    The other part of this is that as a--from a foreign 
assistance perspective you really want to cut out the German 
manager or the British NGO that is managing your resources. You 
want to put the money as close to the recipient as possible.
    It's called localization. That's really hard. You have to 
find local actors. So it takes longer and it's more labor 
intensive, and you probably can't put as much money into the 
system. But you ultimately will have a better impact, at the 
end of the day.
    So having less money into the system allows you to better 
localize resources, better focus your attention on improving 
the actual approach that you're taking in order to have that 
better focus on impact.
    Mr. Burchett. Thank you for that answer. I would remind you 
that John's sitting behind me. Apparently you hired him----
    Mr. Richardson. I brought John to Washington hired, him in 
his first job. It's great to see you.
    Mr. Burchett. He's not much to look at but he does a pretty 
good job.
    Mr. Richardson. He's a good Kansan.
    Mr. Burchett. I've had a couple of good ones in that 
position. One of them was over there but he's left, too.
    What needs to change culturally, I think, at the State 
Department, USAID. We hear a lot of talk about that and just 
cutting it out for foreign aid to be more effective and I want 
to put in there to that how do we keep foreign aid from getting 
to our enemies?
    I've had State Department people here before and they've 
told me that a hundred percent we cannot guarantee that that 
money--some of that money is not getting to our enemies.
    Mr. Richardson. Yes. Look, the vetting question is really 
serious where we actually are vetting both people and 
organizations that implement our foreign assistance, making 
sure that they are trusted individuals.
    We do that on a very limited basis focused on very specific 
regions in the world and we do it almost exclusively focused on 
terrorism concerns rather than transnational concerns, criminal 
enterprises.
    I think if we start expanding both what we are looking for 
in our vetting and expanding the amount of time and effort we 
focus on vetting, expand the number of countries, I think we 
can get a lot better and be closer to protecting the 
investments the American people are making.
    Mr. Burchett. Okay. Let me make sure--no, I'm good.
    You got any recommendations--any further recommendations 
that we could followup with maybe in legislation or otherwise 
to ensure that would happen?
    Mr. Richardson. Yes. I think that, you know, we have to 
take this stuff--the impact assessment--very seriously. You 
know, we have a logic model whenever we do any type of foreign 
assistance work that the money that we put into this program 
will result in this type of outcome.
    But we know--we rarely actually track as to whether that 
actually happens and often when we do track whether it happens 
it's not true. The great example is greater economic assistance 
programs in Central America.
    The theory was if we put more money into economic 
assistance programs that will keep people from migrating to the 
north. Turns out we made them just a little bit less poor, 
which allowed them to have better ability to pay for somebody 
to go to the north.
    So it had the exact opposite. Great logic, terrible 
results. That's not the type of programs we should be funding 
and I think Congress can really dig in and require that type of 
impact that is essential.
    Mr. Burchett. We have run out of time. I want to thank you 
all. Tom, miss seeing you, brother. But it just kind of reminds 
me--my momma was a school teacher and the last 10 years of her 
teaching career she taught at a historically black college and 
they had a saying, they don't want a handout, just a hand up.
    And I think that's something that we should take to heart 
because it just seems that we are missing the boat on this 
thing and I think we're going to--long-term we're going to hurt 
ourselves because people are getting tired of just hearing 
about the misuse and the people that are abusing, specifically 
United Nations, on things like that.
    So thank you all very much.
    Mr. Mast. So we're well into a vote series here. As long as 
you all can hold on for us we would fully intend to come back 
with a few more questions. So we will briefly recess for this 
vote. We do appreciate your patience, and the committee will 
stand in recess until subject to the call of the chair.
    [Recess.]
    Mr. Mast. The committee will come to order.
    I want to thank you all for waiting patiently for us. We 
tried to hold it off until the end of that last vote and then 
did the following vote immediately.
    So, hopefully, you didn't feel like you had to wait too 
long. We're going to now go to my colleague from Florida, Mr. 
Mills, for 5 minutes.
    Mr. Mills. Thank you so much. Thanks for your time. I 
appreciate you guys being here and I appreciate the chairman 
for putting this together.
    I wanted to go through a couple of just very easy questions 
for you. You know, Republicans are putting human rights 
defenders' lives at risk is what we're being told and I just 
want to talk about how--what a kind of hyperbolic statement 
that is when these things are made by our colleagues but also 
others.
    Certain offices at State like DRL used this argument 
intentionally over classified information as a way to shield 
their program from congressional scrutiny on accountability.
    Can you tell me whether or not you feel that's true that we 
are in some way putting human rights' lives at risk?
    Mr. Malinowski. I think there was a conversation about 
whether we should be--the State Department should be putting on 
a website or being much more public about all of the grants 
that go out to help human rights defenders in a dictatorship.
    Mr. Mills. Transparency, right?
    Mr. Malinowski. And I said if we did--in some cases if we 
did that it would be putting their lives at risk. I wasn't 
accusing anyone of doing that now because we're not doing that 
now.
    Mr. Mills. But, I mean, Congress is more than capable of 
being able to understand certain classified sensitivities.
    Mr. Malinowski. Correct.
    Mr. Mills. But at the same time in an effort to try--and 
this is the oversight and accountability piece--we're supposed 
to show transparency and accountability for the American people 
and also for the taxpayers on how things are being done.
    My chairman here has even in the past shown where on a new 
department or bureau that had been established it wouldn't even 
say who works for those independent--is that not correct that 
we tried to source this multiple times?
    How is that in some way not showing transparency, 
accountability, or in some ways putting someone at risk of a 
classification when you don't even show who's actually part of 
that actual independent department or bureau?
    Mr. Malinowski. I think we may be talking--do you mean a 
bureau of the U.S. government?
    Mr. Mills. Yes. I mean, I'll----
    Mr. Malinowski. Okay. Well, that's a totally different 
issue we have not discussed in this hearing.
    Mr. Mast. Would the gentlemen yield for a moment?
    Mr. Mills. I yield.
    Mr. Mast. It was the climate czar Mr. Kerry that would not 
identify the individuals being paid by the taxpayers who are 
working in his office.
    Mr. Malinowski. And so totally different issue from grants 
made to human rights defenders.
    Mr. Mills. And so--but do you think that those type--do you 
think those types of things, though, should be held or 
classified or do you think they should be transparent to the 
American people?
    Mr. Malinowski. I think those things should be transparent 
to Congress.
    Mr. Mills. I would absolutely agree.
    Mr. Malinowski. There are situations where, again, we're 
talking about human rights defenders in Cuba or Lebanon or Iraq 
or China. We do have to be careful whether something is 
formally classified or not. I'm sure you would agree not to 
endanger people who share our values, who take the risk of 
being partners with the U.S. Government.
    Mr. Mills. But I think you would also agree that making 
sure that we find out where these grant fundings are 
allocated--so let's just say as an example, and I'm sure that 
it's already been beaten a few times on this, but what about 
the money that's being allocated to UNRWA?
    What about the $343 million that went to them last year 
where you had members of UNRWA who were participating in the 
October 7th incident or the fact that they've said almost 10 
percent of the 13,000 employees actually celebrated the attack 
on October 7th?
    I mean, Mr. Richardson, in your opinion do you think that 
an organization who participates in such things should continue 
to receive government funding?
    Mr. Richardson. No, of course not. I think the larger issue 
is also that we don't provide--we don't require any vetting of 
U.S. dollars to go into the U.N. system.
    So while we know what happened with UNRWA because of 
reporting, we don't actually do our own independent analysis or 
security checks of humans that are actually receiving funding. 
And so we need to change that, especially with the U.N. system.
    Mr. Mills. And this is exactly what the OIG and Sopko 
talked about with SIGAR with regards to the independent grants 
and how they're being weaponized and being abused. You've watch 
where companies like Chemonics International and DAE and 
Creative Associates and all these supposed implementing 
partners who continue to say that they're doing things to get 
advocacy were actually just--actually telling people, hey, we 
have to get grants out as fast as possible because if we don't 
spend the money we're not going to be able to receive our 
second tranche.
    That is not what I consider to be fiscally responsible and 
especially if you go back to the November 2011 IG report from 
SIGAR on the Chemonics Afghan Stabilization Initiative Program 
in southern Afghanistan where money was being allocated and in 
some cases falling into the hands of Taliban and also those who 
are running the poppy and opium fields.
    So my point is in all this, and I know this is the point of 
the chairman as well, we need to have better oversight 
accountability to make sure that this money is not falling into 
the hands of the very people that we say that we're trying to 
combat against, and I think that the only way we're going to do 
that is to have more transparency from departments like the 
DRL.
    With that, I yield back.
    Mr. Mast. Thank you, Mr. Mills.
    We're going to go to another round of questioning here. I'm 
going to recognize myself for 5 minutes.
    And as I start out here--maybe there's some agreement or 
some good debate between you two--what is the budget that we're 
looking at, you know, on average year over year?
    What are some of the budgets we're looking at for DRL from 
what you all have seen in terms of grants going out the door?
    Mr. Destro. Well, the----
    Mr. Mast. Not everything coming in for salaries. But when 
we're talking about grants going out the door what do you guys 
see and if we can agree on some kind of roundabout?
    Mr. Destro. Yes. We were looking at a--at least when I was 
assistant secretary it was about one and a half billion. I 
think it's gone up a bit. The operations budget was about $30, 
$40 million.
    Mr. Malinowski. Yes, that's not right. It was--so the grant 
budget when I was there was a little over $100 million a year. 
During the Trump administration Congress increased it. It went 
up about four times.
    I don't have the exact figure, obviously, but it went up to 
I think in the $400 million to $500 million range.
    Mr. Mast. How many grants you all think that's getting 
divided into?
    Mr. Malinowski. It's about, I think, on an annual basis, 
roughly, about a thousand. DRL is--one of the cool things about 
the bureau in my view is that they're pretty good at doing very 
small grants. So, like, USAID can't do anything under, like, 
Mega Millions.
    One of the best programs that DRL has that has strong 
bipartisan support is the ability to get very tiny grants of, 
like, $2,000, $3,000, $5,000 out in even less than 48 hours----
    Mr. Mast. And of the thousand grants----
    Mr. Malinowski [continuing]. To people--let me finish. To 
people who need it to stay alive.
    Mr. Mast [continuing]. How many subgrants are we talking 
about? How many subgrants do you all think--the entity that you 
wrote a grant to is now writing another or several other grants 
to other entities that you did not actually give a dollar to--
you did not vet?
    Mr. Destro. That's pretty hard to say. That was the basis 
for my comment about the big organizations like Chemonics and 
others that understand the Federal acquisition regulations.
    You can't, without doing what Jim said earlier, get down 
into the field and give some Nigerian human rights defenders, 
you know, a small grant for peacebuilding. I mean, they just 
don't know how to account for the money.
    So it requires a lot more--you know, these--a lot of that 
money gets sucked off in overhead, I would suggest to you.
    Mr. Mast. Elaborate on that. When you say sucked off in 
overhead let me--I brought up the example numerous times. We 
almost had a whole hearing on the atheism in Nepal. But the 
numbers are round and so we'll use it as an example--$500,000 
to expand atheism in Nepal.
    It was denied here for several hours until we ultimately 
held it up, and then afterwards the people that were here 
denying it for 2 hours called me afterwards and said, oh, crap, 
sorry, and we missed half of the slides in the program. By the 
way, here they are. The lawyer sent it to us.
    But when you look at that $500,000 Nepal's probably daily 
wage is what, probably $2 a day on average, something like that 
there. So what do you think the $500,000 went to? I know this 
is a pure speculation question.
    But was it $50,000 toward producing 100 slides to give a 
PowerPoint and then the other $450,000 in paying salaries for 
people at some NGO sitting in England? Or what is it?
    Mr. Destro. Well, this is pure speculation. Jim would 
probably know better what the overhead rates are.
    Mr. Richardson. I mean, yes. I could talk a little bit 
about sort of generically rather than the specific because I 
don't know the specific project.
    The challenge that we have--and you're exactly right. So 
what we end up doing is we'll give a grant to an NGO in London 
who will then hire some random German to then fly to Uganda and 
set up a program where there will be an office, there'll be an 
office space, there'll be this guy's family or this girl's 
family and then they'll run a program, which will have slides, 
an office, and those types of things.
    Once you start getting to the actual implementation of the 
program what we often see is a 50 percent overhead rate, and 
there's been efforts afoot to try to limit the overhead rate 
and it's different between contractors and grantees and what 
that actually does is different based upon the type of program, 
the sector, the region that you're operating.
    But there's a lot of countries that do foreign assistance 
that really try to limit overhead to under 10 percent, which I 
think is the right metrics and right approach.
    Mr. Mast. And would you say what you're outlining is par 
for the course whether you're talking about DRL or USAID or 
Commerce or take your pick of where the dollars might be coming 
from in terms of aid going abroad?
    Mr. Richardson. Every agency is different but I do think 
that there's general consensus about that is the way most of 
the--at least on the foreign assistance side at State and AID 
there is a consistency.
    As the former Congressman said, I mean, you have--DRL does 
sort of micro grants where aid sort of lives in the $1 million 
to $5 million range. So there's a little bit of difference in 
scale which allows you to have different expectations and 
there's--but there's also different levels of programming.
    Often you'll see 5-year programs run out of aid or you may 
have shorter out of DRL. So it just depends on each one.
    Mr. Mast. The chair now recognizes Mr. Crow for 5 minutes.
    Mr. Crow. Thank you, Mr. Chairman.
    You know, we heard today that DRL does somewhere in the 
neighborhood of a thousand grants, hundreds of millions of 
dollars, but the majority keeps on coming back to this supposed 
atheism grant in Nepal, and I just want to make the record 
really clear here.
    This is a grant that was done through the International 
Religious Freedom grant program at DRL and it directly 
implements an amendment to the Frank Wolf Act that was 
introduced and supported by a Republican member of this 
committee who actually supports this program.
    The programming grant on the State side followed proper 
process and it supported a mission to support religious freedom 
broadly. This is about religious freedom broadly in Nepal.
    But that includes nonbelief. So just because one element of 
this is nonbelief doesn't mean that's the focus of the entire 
program. This is about religious freedom in Nepal broadly.
    And there was a comment that, you know, there's no evidence 
that atheism is under attack in Nepal and I would like to 
submit into the record a report--a country update on Nepal from 
the United States Commission on International Religious Freedom 
from August 2023 that specifically talks about the assaults on 
religious freedom including nonbelief in Nepal.
    If I may submit this for the record.
    Mr. Mast. So ordered.
    [The information referred to appears in the Appendix:]
    Mr. Crow. So I just think it's really important that we 
baseline and we talk about facts here, right, because the 
challenge is and when we cherrypick individual instances of 
grants, some of which could be done better, right--we talked 
about this.
    There's always room for improvement. There's always things 
that can be done better. But we use those cherrypicked 
instances to then broaden out and talk about the grant process 
overall. That can be very dangerous.
    So, Mr. Malinowski, I'd like to just come back to you about 
your experience. You know, what can we do better, right, but 
also what do we do well?
    Mr. Malinowski. Yes. And just to reinforce your point, 
look, the the religious freedom programs are wonderful and that 
a hundred percent came from the Republican side of the House 
originally is something that the State Department needed to do.
    When we're funding an NGO, say, in Iraq that is working 
with the Christian minority in that country, helping them, 
empowering them to stand up for their rights, we're not 
promoting Christianity any more than this grant was promoting 
any particular religion. It's promoting people's right to stand 
up for their beliefs.
    To your point, the broader point--and I think this is 
really important--Mr. Richardson at one point rightly said that 
it should be our goal to localize, right.
    We don't want to be giving all the money to some, you know, 
group in London that works through a contractor in Germany 
where most of the money is not actually going to help the 
people on the ground.
    The reason why we sometimes do that is because there's 
oversight. We don't want the money to be misspent. We want to 
know what's going on.
    You guys are pushing us for more oversight or pushing the 
State Department and that pushes in the direction of more 
bureaucracy, of more people in fancy offices in Western 
countries doing more paperwork to make sure we don't have even 
a single example of something not going in the right direction.
    So there's a balance here. We want more of the money to go 
locally. We want some freedom to experiment, right. I mean, any 
of us who have led a team in the military, in the State 
Department, know it's best to empower--you know, to hire good 
people, empower them to go out, be creative, and not have to 
ask for permission for everything.
    But there's got to be some oversight because, you know, if 
you don't have it there will be mistakes.
    And so there has to be balance and that means, yes, you got 
to hold the State Department accountable if you see something 
you don't like.
    But understand if they never do anything you don't like 
that's probably because there's too much bureaucracy, too much 
control from the top, and we're not actually getting the really 
good programming that comes from a little bit of freedom and 
flexibility. Keep that balance.
    Mr. Crow. And in the remaining time, Mr. Malinowski, what 
would be the impact, in your view, of an 11 percent across the 
board cut to the State and foreign ops program?
    Mr. Malinowski. Yes. Well, it's actually not across the 
board. I think I looked at what the committee did. One of the 
things they did, for example, was eliminate all funding for the 
United Nations general budget.
    I know the U.N. is a whipping boy around here but, Okay, 
you want to end sanctions enforcement on North Korea and Iran 
and on ISIS and on al-Qaeda? That's what would happen if we did 
that.
    There are a lot of things the U.N. does that don't get a 
lot of attention because we agree with them. We tend to only 
pay attention to the things we don't like.
    So massive cuts like that would absolutely undermine the 
U.S. national security interest and I sincerely hope we don't 
go there.
    Mr. Crow. Thank you. I'm out of time.
    Mr. Malinowski. The programs we're talking about we should 
be spending more, not less.
    Mr. Crow. Thank you. I'm out of time and yield back.
    Mr. Mast. Thank you, Ranking Member Crow.
    I know this is not the time for us to continue to fully 
hash out Nepal as an issue. We argued it plenty for several 
hours here before.
    But I would say that if the paper, the document, that State 
Department literally puts forward on this grant for Nepal says 
expanding atheism.
    I would say expanding is promoting and I would further make 
the point that the folks on the ground said that atheism was 
not one of the marginalized groups. Atheists were not one of 
the marginalized groups in Nepal.
    This was absolutely an instance--Mr. Malinowski, I think 
you used an appropriate word, experimentation. I don't think 
the American people want their dollars used for experimenting 
on whether atheism should be expanded in some country abroad.
    And I appreciate the comments on it. I appreciate the 
thought on it. But I entirely disagree regardless of where the 
policy came from.
    I believe it is now back to Mr. Mills for 5 minutes.
    Mr. Mills. Thank you so much, Mr. Chairman.
    Look, I want to talk about this whole grant and 
localization thing but I also want to talk about how these 
grants has not seen any national security strategic success in 
goals.
    Let's go back to Afghanistan and Iraq. I spent 7 years in 
Iraq, almost 3 years in Afghanistan. I've worked with the State 
Department, I've worked with the government. I've worked with 
the agencies. I've worked in uniform.
    And I've watched the gross abuse of programs like Black & 
Veatch's Kandahar Helmand Power Project, the idea of being able 
to spend billions and billions of dollars that we're going to 
do hydro turbine electricity to Kandahar Helmand and that's 
somehow going to work.
    Are you aware with what happened with that project, Mr. 
Malinowski?
    Mr. Malinowski. No, and, again, what we have been focused 
on here is we do need to distinguish between big economic 
development projects and what----
    Mr. Mills. But this isn't--this didn't start out as a big 
economic development program. Originally they were saying that 
we're going to give small grants to the people that are there 
to do construction areas just to try and refurbish what was 
existing.
    Then that failed. Then it was, Okay, now we need to grow 
this a little bit bigger. Okay, now that failed. Now we need to 
go ahead and bring in all new equipment. Now that failed. And 
then it starts to get to the tunes of billions and billions of 
dollars.
    And you said something, that USAID doesn't do small grants. 
Well, I know for a fact that in Libya you had organizations 
like DAI and also Creative Associates and also Chemonics who's 
given $1,000 to $5,000 grants. They were giving grants.
    Do you want to know what one of those was for? It was to 
buy speaker equipment for a local rapper because they thought 
that if he made music about governance that that was going to 
stabilize the Nation.
    Does that seem like that's what American taxpayers want to 
see is their money being spent to buy rap equipment for people 
in a nation which has nothing to do with stabilization and 
never had any actual impact whatsoever?
    These are the things that--my point in bringing up these 
failed programs is that we have tried the monitoring 
evaluation. We contract one company.
    We then contract a company like Management Systems 
International--MSI--who's supposed to be the M&E gurus and 
experts, who then spend even more money and then they can't 
even track the money they're spending for M&E while trying to 
also track the money that's being done to the implementing 
partner.
    And then we talk about this grand scheme of we're going to 
do localization. Let's talk about localization. The only 
difference is instead of the Thursday night debauchery that 
goes on by most of the expats that are over there celebrating 
drinking on a Thursday night like they did in Iraq, 
Afghanistan, all the rest, you then just have them refilling 
boots and positions here in D.C. and calling themselves deputy 
chiefs of party, chiefs to the party, you know, program 
assembly manager, all this.
    You're not saving any money by trying to do this 
localization route and, in fact, I would argue that we saw 
actually a lot more corruption in Iraq as a result of that 
whenever we were building bridges that were $750 million and 
then all of a sudden come to find out half the bridges when we 
investigated hadn't even been built.
    My issue is that I don't see where cash diplomacy has been 
successful. I don't see where that's stabilized nations. 
Where's Iraq right now? Where's Afghanistan right now? Where's 
Libya right now?
    We spent trillions of dollars in these nations and then we 
throw it out when we do things like the 2005 Iraq constitution 
under Article 76 that establishes sectarianism, which hasn't 
existed since preapartheid eras in North Ireland.
    My point is is that we can talk about M&E and all this. I 
disagree with your assertion that, you know, the U.N. enforces 
all these grand sanctions.
    What about the sanctions on Iran right now? How's that 
working with regards to ensuring that they don't export more 
oil than they've ever done in their history under this 
administration?
    Is that--do you think they're imposing sanctions? Do you 
think they're actually upholding things? No. General Guterres 
and Ban Ki-moon under Resolution 2231 knew there was midrange 
ballistic missile, you know, violations and, yet, they did 
nothing to actually prevent it.
    So tell me again how cash diplomacy makes national security 
a priority.
    Mr. Malinowski. Well, we heard about Iran sanctions, people 
getting drunk, and projects in Afghanistan. There's a lot to 
respond to.
    Mr. Mills. Do you dispute any of those, though? I mean, 
I've seen----
    Mr. Malinowski. I don't even know how to make sense of what 
you just said. But, you know, you asked me. Let me take----
    Mr. Mills. Making sense of it is simply this, that the past 
formula doesn't work, Mr. Malinowski.
    Mr. Malinowski. Let me take a piece of it. You asked--you 
asked about----
    Mr. Mills. That's what I'm saying.
    Mr. Malinowski. You asked about how does helping a rapper 
who might be spreading a message about democracy help as well.
    You know, I recall that in the 1950's, 1960's, 1970's, and 
1980's we helped defeat the Soviet Union in part by supporting 
artists and writers and cultural people and radio programmers 
and musicians and people who were spreading the culture of 
democracy through art in Europe.
    You talk to any dissident in Eastern Europe who went 
through that and they would say that's one of the most 
effective things that we did.
    Mr. Mills. Where is Libya now. Are they a failed state?
    Mr. Malinowski. What's that?
    Mr. Mills. Would you consider Libya a failed state?
    Mr. Malinowski. I'm talking about Eastern Europe.
    Mr. Mills. I didn't mention Eastern Europe. I mentioned 
that specific program just to show that this is not being 
effective and I asked how national security has improved.
    Mr. Malinowski. Much of the things we try to do are going 
to--are not going to be successful.
    Mr. Mills. I agree with that.
    Mr. Malinowski. When I was at DRL I used to make an 
analogy--a baseball analogy to my team. I said that if you're 
batting .300 in a world where you're going after--you're going 
up against dictators, sociopaths, mass murderers, if you're 
successful----
    Mr. Mills. Well, at $35.6 trillion in debt I don't think 
that we can be batting a .300 for the American people.
    Mr. Malinowski. Well, it's better than batting zero.
    Mr. Mills. Well, I can tell you right now we are batting 
zero.
    Mr. Malinowski. If we stop trying you know who's going to 
cheer? It's going to be--the Russian government and the Chinese 
Communist Party would love us to stop doing this. Why? If you 
think it's unsuccessful----
    Mr. Mills. But they're already expanding, sir. You're 
seeing that Russia, China, Iran, North Korea----
    Mr. Malinowski. If you think it's unsuccessful why are all 
of our enemies passing laws----
    Mr. Mills [continuing]. Geopolitical alignment already 
expanding. You watched Belt and Road Initiative expand. You've 
watched China continuing to go into developing nations all 
across Africa----
    Mr. Malinowski. They're fighting.
    Mr. Mills [continuing]. And they've been very successful in 
this.
    Mr. Malinowski. They're fighting.
    Mr. Mills. You're watching Wagner Group down in Chad and 
CAR who's continued to expand. Now they're in their our own 
Western Hemisphere with economic coercion of Honduras and 
Panama taking over the canals for treaties, going into Cuba, 
and actually helping with the fentanyl pill press in the Darien 
Gap.
    So we're not winning the war against China or Russia by 
going out and doing what you're saying, which is these small 
funding grants.
    Mr. Malinowski. So why are they passing laws and all of 
their allies to try to forbid us from doing these grants?
    Mr. Mills. Why are we continuing to go ahead and give money 
but not account for where it's going?
    Mr. Malinowski. It's your job to account for where----
    Mr. Mills. Why are we still giving money to the Taliban by 
paying certain electric bills and housing rental bills that we 
know falls into the hands of those very people we fought for 
20-plus years?
    I mean, my point is that I don't believe in what you're 
doing is successful. I don't believe in the USAID cash 
diplomacy model and I've seen it fail time and time again 
firsthand as I sat on these things like RAMP UP North.
    And you can continue to do your little eyebrow roll or 
whatever you'd like to do right now. But you know for a fact 
that if we go and look at the monitoring evaluation books, 
SIGAR reports, look at OIG and John Sopko that you can't 
dispute the fact that a lot of money was waste, fraud and abuse 
at taxpayers' expenses.
    Mr. Malinowski. Well, maybe I'll put you down as a maybe.
    Mr. Chairman?
    Mr. Mast. All right. I have one final round of questions. I 
don't know if my colleague has another one. But it's a little 
bit more open ended for you all.
    Let's just simply say any advices, any ideas, that you all 
have to increase transparency for these grants within the State 
Department across the board.
    Does not have to be DRL where you two spent your time. 
Could be in USAID. Could be anywhere. Would love to hear those. 
I think it's one of the most important things that we can hear 
from all of you.
    Mr. Richardson. The one thing that hasn't really been--you 
mentioned it briefly in your opening statement but it's 
branding. We fail to really brand the gift from the American 
people that we are doing great and amazing work all around the 
world.
    We don't take credit for it. It's often at a little emblem 
in the bottom of Chemonics' roadway sign thinking that 
Chemonics is the one who delivered that project that impacted 
the lives of those people.
    No, it was the hard work of the American people paying 
their taxes that resulted in that, and if we're not proud about 
it then we shouldn't have done it.
    And so I think we should we should definitely pass a strong 
branding bill and put the American flag on foreign assistance 
projects.
    Mr. Mast. Agreed.
    Please, Mr. Destro? Mr. Malinowski?
    Mr. Destro. Well, thank you. I think that there is a danger 
for being too narrow in our focus whether or not it's on a 
local program like Libya, which is a completely failed State, 
you know, where we actually as a human rights matter have 
actual slave markets.
    You know, but on the other hand you have this focus on the 
atheism grant. What I'd like to suggest is that we need to pull 
the aperture back a bit and look at both our domestic and our 
foreign policy.
    We say that we're for religious freedom but we're for 
deconstructing of the Ukrainian Orthodox Church. You know, the 
Ukrainian government is arresting priests and nuns.
    You know, it stands--it's funding the Greek Orthodox 
newspapers while standing silent while the Ukrainian--the 
Organization of Ukrainian Journalists--Orthodox Journalists 
nothing's said about them
    And so we need to be doing--and I'll just give you another 
example. I spend a lot of time on Xinjiang and on the 
surveillance State in China.
    I went through the Cleveland airport not long ago and was 
given the opportunity to have my face scanned. You know, so 
this question of what are human rights and what are we doing 
both inside and outside the country.
    It's not an accident that many countries think we're 
hypocrites because we say one thing and then we do things with 
our money that we shouldn't be very proud of.
    Mr. Mast. Mr. Malinowski, any suggestions that you might 
have for transparency within grants? We'd love to hear them.
    Mr. Malinowski. So don't get me wrong. I am for 
transparency and, you know, I was slightly critical of a 
proposal Mr. Destro made to put everything on a website. I'm 
actually for putting almost everything on a website. I think it 
should be easier for----
    Mr. Mast. Can we pause there 1 second? Was it a website or 
was it an internal server--an internal list?
    Mr. Destro. Right now I'd be satisfied with the internal 
server. I mean that, I think--because and two Ambassadors have 
told me that they cannot get the information----
    Mr. Mast. That you created. That you created.
    Mr. Destro. That we created.
    Mr. Mast. Was it a public domain website or was it----
    Mr. Destro. Right. It was based on what they call the 
Secretary's dashboard. Pulls the money--it pulls the 
information real time out of the F data base.
    Mr. Malinowski. So I think just as an American citizen, 
like, it would be--I would love there to be a website where you 
can go and see in a more clear, user friendly way what we're 
doing in various countries.
    If it were very clear it would also point out in many cases 
that the money spent is not being sent to that country. We had 
that debate over Ukraine aid. A lot of it is spent in the 
United States. Some of it is donated as grants to organizations 
in that country.
    That kind of transparency I'm for with the important caveat 
that applies particularly to DRL programs, less so to AID 
programs, that when you're working in a dictatorship and there 
are people who are risking their lives to do the work--anti-
corruption, anti-torture, pro-human rights--then it's just 
common sense and good judgment that we're not going to splash 
over--all over a website, you know, Mr. Dictator, here's who 
you should arrest because they're working with the United 
States. I hope we would all agree with that.
    But beyond that, yes, I think the more you guys can push 
for that the better for everybody concerned. I'm personally 
proud of most of what the State Department is doing. I'd be 
happy to see it more transparently presented in that way.
    Mr. Mast. Mr. Crow?
    Mr. Crow. Thank you, Mr. Chairman.
    Mr. Malinowski, I just wanted to give you the opportunity 
to take some time here to respond to some of the back and forth 
and issues raised by my colleagues. I know you didn't fully 
have the opportunity to respond to that. So I'll give you my 
time.
    Mr. Malinowski. Well, thank you. Look, I started out where 
Mr. Mast started out, by mentioning the Tiananmen Square 
anniversary, because I think we should be focused on big stuff 
here on what's important and, in a sense, I think we all agree 
there is a contest in the world right now between the 
democracies led by the United States and dictatorships led 
particularly by China, and we have to be spending money in a 
variety of ways all over the world if we want to win that 
contest.
    And I am very concerned when I hear that because of some 
Members of Congress being concerned about a particular grant, 
which is fine--that's normal.
    That's your job even if I may--we may disagree about the 
merits of that particular grant. That you have a situation 
where right now I'm told about 60 percent of the grant funding 
the DRL has is held by members of this committee.
    If you disagree with $20,000 that might have indirectly 
contributed to a canceled drag show in Ecuador, whatever, we 
can argue that. It should not be an argument for holding 60 
percent of money that is absolutely critical to people who I 
think all of us would agree are fighting for good things like 
religious freedom and human rights in countries around the 
world who are in effect defending the gospel of liberty, 
freedom, and human rights that is associated with America in 
opposition to what China and Russia are spreading in the world.
    And so absolutely conduct oversight but do it in a serious 
and responsible way that protects and enhances the important 
things that the State Department is doing in response to 
congressional pressure, in most cases, to stand up for our 
values and our interest.
    That would be my plea to you today. This has been 
bipartisan for as long as I have been working on these issues 
for over 20 years. That needs to remain.
    Mr. Crow. Thank you. And I just also wanted to get your 
thoughts on a couple of times the issue of money provided to 
folks under assault in Afghanistan falling into the hands of 
the Taliban and, you know, we support people fighting for 
freedom and democracy and their rights that are under 
oppressive regimes pretty regularly, right.
    You had mentioned North Korea. You'd mentioned Iran. You'd 
mentioned Cuba. Of course, Afghanistan is another example.
    Can you just briefly discuss what controls and checks are 
in place when we do that to make sure that, you know, that 
money is not misappropriated or fall into the wrong hands.
    Mr. Malinowski. So, again, really important to distinguish 
between the types of things that SIGAR would evaluate.
    These are, largely, big infrastructure and development 
projects where you've got a lot of local business contractors 
and the funding that I'm most familiar with, which is in 
Afghanistan going to go to maybe support some journalists who 
are still trying to do actual journalism against the Taliban in 
the country or a small grant that might help a women's rights 
group have an office or pay for a court case or do the things 
that they need to do to stay alive.
    We have safeguards for all of these projects, even for the 
very small ones. There's project evaluation reviews, external 
evaluation that goes into a lot of these projects. But for the 
most part I'm not so worried about a little women's rights NGO 
in Afghanistan.
    That grant is not going to end up in the hands of the 
Taliban. That is 100 percent in our interest, it's the right 
thing to do, and the Taliban hopes and prays we stop doing it. 
So keep that in mind.
    Mr. Crow. Okay, thank you. Chairman, I yield back.
    Mr. Mast. Mr. Mills?
    Mr. Mills. We talked about human rights and I want to key 
off something. Do you think what's happening in our southern 
border with regards to the amount of human and child 
trafficking is a human rights tragedy?
    Mr. Malinowski. Human trafficking is a horrible human 
rights tragedy, yes.
    Mr. Mills. Do you think that the open borders are leading 
to an increase in human rights violations?
    Mr. Malinowski. I do not believe we have open borders on 
the southern border, Congressman.
    Mr. Mills. You don't believe that the 9.8 million people 
who's crossed our borders illegally that that is an increase in 
what we have seen in previous administrations?
    Mr. Malinowski. I don't think we're going to have the time 
to debate our border policy here, Mr. Mills. But no, I do not--
--
    Mr. Mills. Mr. Malinowski, we will actually be able to 
debate whatever the chairman actually allocates the time on, 
correct?
    Mr. Malinowski. Okay. That's fine.
    Mr. Mills. You've sat in Congress. You know how this works.
    Mr. Malinowski. I do.
    Mr. Mills. So my point is is that if we're worried about 
the human rights violations--and it is atrocious what's 
happening.
    We know what the cartels and what others are doing with 
regards to--almost 40-plus percent of the revenue they took in, 
you know, it's $500 million in cartel revenue in 2018. Fast 
forward to 2022. We're over $13 billion in cartel revenue.
    Mr. Malinowski. Yes. They're gaming our asylum policy.
    Mr. Mills. And we're seeing where there's millions upon 
millions of people crossing our borders of which many are being 
used and thrown into child and sex trafficking and sex slavery, 
things like this, which is a pretty atrocious thing I think we 
all could agree on.
    Wouldn't our money be better allocated focusing on human 
rights violations and things like that that directly impacts 
our country more so than throwing money to other nations where 
we're not going to make--I mean, it's a drop in the bucket. 
It's not going to make an impact.
    Mr. Malinowski. So No. 1, that's why I wish and still hope 
that you guys pass a bipartisan bill that is the toughest----
    Mr. Mills. You mean H.R. 2, Secure the Border Act, which 
actually was passed over a year ago sitting in the Senate and 
the Democrat control?
    Mr. Malinowski. The bill that a bipartisan coalition in the 
U.S. Senate agreed to that was not passed----
    Mr. Mills. But didn't even pass the Senate.
    Mr. Malinowski [continuing]. Because the nominee of your 
party for president said it won't help him in getting 
reelected.
    Mr. Mills. Well, but wait a second. Well, let's talk about 
border policy now that you brought that up, though. Doesn't the 
President have executive order with unilateral authority under 
212 Section F to immediately secure the border?
    Mr. Malinowski. My understanding is he's going to be 
issuing that executive order.
    Mr. Mills. Why did he wait until right around the election 
period of time as opposed to closing it before 11 million 
people come across the border?
    Mr. Malinowski. I can't speak for him but I think he 
probably would have preferred----
    Mr. Mills. Or 70,000 to 100,000 who died of fentanyl 
overdose or the criminals who have actually killed people like 
Laken Riley or even my own State legislator Kiyan Michael whose 
son was killed by an illegal who crossed illegally three times 
back into the country.
    Mr. Malinowski. My guess is that he hoped Congress would do 
its job and when Congress explicitly said, we will not do our 
job because Donald Trump is ordering us not to then now the 
president is----
    Mr. Mills. So there's no Federal--well, wait, Mr. 
Malinowski. Isn't there Federal laws already in place to ensure 
the security of our borders?
    Mr. Malinowski. There are quite a few Federal laws but they 
need to be funded.
    Mr. Mills. Well, and they are funded. H.R. 2, which 
actually passed the House because like you just pointed out the 
Senate has supposedly a bipartisan bill, which is an amnesty 
bill, that wouldn't even pass its own chamber.
    But ours actually passed over a year ago which can make 
tangible result and impact. And, yet, the Senate hadn't taken 
that up.
    Now, that's not a Republican issue or a Democrat issue. 
This is an American issue that we need to secure our borders 
and need to we'd take care of things.
    Mr. Malinowski. That's why Republicans and Democrats need 
to work together as they did to produce something that both 
sides can support with compromises on both sides.
    It would--a lot of Democrats embrace that mostly Republican 
bill in the Senate because they understood they have to make 
compromises, and the Republican sponsor of that bill, one of 
the most conservative Republicans in the U.S. Senate----
    Mr. Mills. Well, I would disagree with that.
    Mr. Malinowski [continuing]. Said the only reason we are 
not doing this is because our nominee from President said it 
would hurt him politically to secure the border before the 
election and as a result----
    Mr. Mills. And then he also came back and actually said 
that his bill--and this was said by both Democrats and 
Republicans in the Senate--that the bill wouldn't actually 
secure our borders and that more would actually be needed. My 
point is is that we talk about human rights.
    Mr. Malinowski. So we can--so let's start somewhere.
    Mr. Mills. We talk about all the things that are 
significant and important. We talk about--the American people 
is the most important. That's who we're fighting for. That's 
who we take the taxpayers' money to provide and protect for.
    My own borders and the human rights violations on--I was 
just in south Texas for 3 days ago, right there in Mission, 
Texas, and going down the borders and watching where I can tell 
you it was not secured. It was not--it was very much an open 
border.
    Mr. Malinowski. A great country can secure its border and 
lead in the world. I'm looking at these paintings looking down 
on us right now and the people who have sat in that chair, 
Republicans and Democrats, who have believed what every 
Democratic and Republican president of my lifetime has 
believed, the United States can take care of its own people and 
we can lead in the world.
    Mr. Mills. But we can't at $35.6 trillion where next year 
we will pay more in interest payments than we'll pay in 
national defense. First time in history. Only 28 nations in the 
world's history has ever paid 130 percent GDP and only one 
survived, which is Japan.
    America is becoming the next fiscal experiment and I don't 
think at $35.6 trillion with our GDP to national debt ratio 
being where it's at, with the attack on fossil fuels, with the 
open borders, with the continuation of funding these kinetic 
wars that we don't need to be involved in.
    And, sir, I've fought enough kinetic wars to not want to be 
involved in more or to put another man or woman on the 
battlefield in an area that has nothing to do for a neocon-
neolib interventionist mind set. I'm not an isolationist but 
I'm a protectionist.
    Mr. Malinowski. Well, then----
    Mr. Mills. And so I think that utilizing money in the right 
way in human rights on the border matters.
    Mr. Mast. The gentleman's time has expired.
    The chair now recognizes Mr. Crow for a closing statement.
    Mr. Crow. Thank you, Chairman, for calling this important 
hearing and thank you to all the witnesses today for having a 
robust discussion and talking about some areas for improvement 
in oversight.
    There is no organization in the world, whether we're 
talking about a business, a family, a government agency, or a 
department that can't find ways of improving.
    That's why this committee is so important and I look 
forward to working with all of you and the chairman and finding 
ways that we can promote transparency, that we can maybe look 
at options for putting appropriate grants that would not 
jeopardize people's lives on, you know, internal or external 
portals to improve those processes. There's, certainly, ways of 
doing that, certainly, ways of improving it.
    But, you know, I come back to what I was talking about 
earlier, this idea of taking specific incidents of things that 
didn't go as they were supposed to go and then using those to 
attack the entire system, and to say that grants writ large are 
not working and effective is just a non sequitur.
    These programs are extremely valuable for our Nation. You 
know, I will push back on this idea that we don't have the 
ability to take care of ourselves at home and the world at the 
same time.
    You know, if we are going to be a great power and if we're 
going to be a leader in the world we have to do both and we 
have to do both not just because it's charity and not because 
we just want to. Because it's in our self-interest to do both.
    If history has ever shown or taught us anything it's that 
when we pull inward and we neglect the world and we don't pay 
attention to conflict and oppression in other places it 
eventually finds us and it comes to our door. Over and over 
again that is the lesson of history.
    So these investments are to prevent those problems from 
coming to our door and threatening the American people. It's in 
our national security interest.
    It's in our economic self-interest and these are 
investments that are targeted, that have great return on 
investment in many cases. Not all of them.
    We'll always work on improving. We'll work on figuring out 
areas where we can course correct when necessary.
    But to cut these programs and attack these programs writ 
large is the wrong answer and it doesn't serve our interests 
and it doesn't serve the interests of the American people.
    So with that, I thank all the witnesses and I yield back, 
Chairman.
    Mr. Mast. Thank you, Ranking Member Crow. I recognize 
myself for closing statement.
    I thank you all for your testimony, for your service to 
America. I don't like personally when it's ever flippantly said 
any organization has room for improvement, any organization can 
find a few places where dollars were wasted and they can root 
that out and we should fix that.
    There's a very specific and important difference between 
the U.S. Government and any organization. The U.S. Government 
gets every single dollar from we the people.
    People go out to work. They work all night. They work one 
job. They work three jobs. The government takes their money and 
then doesn't just build a road so that they can get to and from 
work or to and from school with their kids or whatever.
    They send it to countries thousands of miles away at what 
everybody has agreed upon, which is a larger extent than every 
other country combined. This is not a situation where we can 
say, yes, every organization has room for improvement and we 
just need to do it a little bit better.
    There is tremendous room for this to be--that's an 
understatement, to be done better. There is absolutely waste 
and abuse and there's absolutely policy that's being made by 
the personnel that are out there authoring grants, soliciting 
grants, that is not connected to broader goals that every 
agency is working in tandem to achieve and that doesn't work 
for the American people.
    We did speak briefly about the idea of earmarks and 
comparing earmarks to transportation earmarks here 
domestically. I wish, personally, if I could make the policy 
law that every grant that goes abroad--every solicitation for a 
grant that goes abroad--be treated like a domestic earmark 
where some Member of Congress had to come in here and request 
that specifically, that half a million dollars for Nepal or 
that $20,000 for drag shows in Ecuador or the thousands of 
other things that exist within USAID or other places.
    I wish that members had to come in here, make the case, 
speak to the diplomats that are going to be executing those 
things on the ground, and come in here and make the case to the 
appropriators they want that earmark.
    I wish that that was the case. I think there would be a lot 
less requests for these grants and I think there would be a 
much higher level of accountability. I wish and I will continue 
to work for policy that these grants not be automatically 
reauthorized from not just being executed in 1 year but being 
executed 2 years, 3 years, 5 years in a row without them being 
looked at again.
    I don't think that that is responsible to the American 
people, especially when, again, I believe many of these grants 
and these solicitations for grants are avowedly left wing and 
radical policies that are being funded through the taxpayers 
through the State Department by writing a grant and then that 
agency is writing a sub grant or a sub grant to that, which 
nobody ever gets eyes on, certainly not the U.S. taxpayer.
    That being said, thank you for the comments about where you 
see room for improvement, where you see the ability to improve 
this process. I will continue to work in some of the ways that 
you all brought up and some of the ways that I just brought up 
and in that.
    Pursuant to committee rules all members will have 5 days to 
submit statements, questions, and extraneous materials for the 
record subject to the length limitations.
    And without objection, this committee stands adjourned.
    [Whereupon, at 12:12 p.m., the committee was adjourned.]

                                APPENDIX

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