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




                   LATIN AMERICA FORGOTTEN: A LOOK AT   
          PRESIDENT BIDEN'S FISCAL YEAR 2025 BUDGET PRIORITIES

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




                                HEARING

                               BEFORE THE

                 SUBCOMMITTEE ON THE WESTERN HEMISPHERE

                                 OF THE

                      COMMITTEE ON FOREIGN AFFAIRS
                     U.S. HOUSE OF REPRESENTATIVES

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             SECOND SESSION
                               __________

                             July 24, 2024
                               __________

                           Serial No. 118-127
                               __________

        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

57-376 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
TIM BURCHETT, Tennessee              JOAQUIN CASTRO, Texas
MARK E. GREEN, Tennessee             DINA TITUS, Nevada
ANDY BARR, Kentucky                  TED LIEU, California
RONNY JACKSON, Texas                 SUSAN WILD, Pennsylvania
YOUNG KIM, California                DEAN PHILLIPS, Minnesota
MARIA ELVIRA SALAZAR, Florida        COLIN ALLRED, Texas
BILL HUIZENGA, Michigan              ANDY KIM, New Jersey
AUMUA AMATA COLEMAN RADEWAGEN,       SARA JACOBS, California
    American Samoa                   KATHY MANNING, North Carolina
FRENCH HILL, Arkansas                SHEILA CHERFILUS-McCORMICK, 
WARREN DAVIDSON, Ohio                    Florida
JIM BAIRD, Indiana                   GREG STANTON, Arizona
MICHAEL WALTZ, Florida               MADELEINE DEAN, Pennsylvania
THOMAS KEAN, JR., New Jersey         JARED MOSKOWITZ, Florida
MICHAEL LAWLER, New York             JONATHAN JACKSON, Illinois
CORY MILLS, Florida                  SYDNEY KAMLAGER-DOVE, California
RICH McCORMICK, Georgia              JIM COSTA, California
NATHANIEL MORAN, Texas               JASON CROW, Colorado
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 THE WESTERN HEMISPHERE

                   MARIA SALAZAR, Florida, Chairwoman
                   
MARK GREEN, Tennessee                JOAQUIN CASTRO, Ranking Member
BILL HUIZENGA, Michigan              GREG STANTON, Arizona
WARREN DAVIDSON, Ohio                JARED MOSKOWITZ, Florida
KEITH SELF, Texas                    SYDNEY KAMLAGER-DOVE, California
JOHN JAMES, Michigan








                         C  O  N  T  E  N  T  S

                              ----------                              

                            REPRESENTATIVES

                                                                   Page
Opening Statement of Subcommittee Chairman Maria Salazar.........     1
Opening Statement of Rep. Greg Stanton...........................     2

                               WITNESSES

Statement of Hon. Brian Nichols, Assistant Secretary of State for 
  Western Hemisphere Affairs, Bureau of Western Hemisphere 
  Affairs, U.S. Department of State..............................     4
  Prepared Statement.............................................     7
Statement of Hon. Julieta Valls Noyes, Assistant Secretary, 
  Bureau of Population, Refugees, and Migration, U.S. Department 
  of State.......................................................    11
  Prepared Statement.............................................    13
Statement of Michael Camilleri, Acting Assistant Administrator, 
  Bureau for Latin America and the Caribbean, U.S. Agency For 
  International Development......................................    21
  Prepared Statement.............................................    23

                                APPENDIX

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

                        Materials for the Record

Article: Biden Taps Vp Harris to Lead Response to Border 
  Challenges.....................................................    52

                        Questions for the Record

Questions submitted to Brian Nichols by Rep. James...............    56
Questions submitted to Brian Nichols by Rep.Castro...............    60
Questions submitted to Michael Camilleri by Rep. Castro..........    83








 
                   LATIN AMERICA FORGOTTEN: A LOOK AT   
          PRESIDENT BIDEN'S FISCAL YEAR 2025 BUDGET PRIORITIES

                              ----------                              


                        Wednesday, July 24, 2024

                  House of Representatives,
            Subcommittee on the Western Hemisphere,
                              Committee on Foreign Affairs,
                                                    Washington, DC.

    The subcommittee met, pursuant to notice, at 10:08 a.m., in 
room 2172, Rayburn House Office Building, Hon. Maria Elvira 
Salazar (chair of the subcommittee) presiding.
    Ms. Salazar. The Subcommittee on the Western Hemisphere 
will come to order.
    The purpose of this hearing is to analyze the State 
Department and the USAID's Fiscal Year 2025 budget request for 
the Western Hemisphere. I now recognize myself for an opening 
statement. It will be short and--sorry, am I following the 
right order here?

      OPENING STATEMENT OF CHAIRWOMAN MARIA ELVIRA SALAZAR

    All right. So as I'm sure you know, no region is more 
important to the well-being of the United States than Latin 
America. Miami, the city that I represent, is closer to 
Cartagena, Colombia than New York City. Latin America is our 
back door, is our backyard--a region that is vital for national 
security.
    But, unfortunately, actions are speaking louder than words. 
In the last 4 years President Biden has made it clear that 
Latin America is really not a priority for this country and 
here are the facts.
    The President has traveled to 24 countries. He is the first 
president in 50 years not to visit the Western Hemisphere, just 
a quick trip to Mexico.
    Last year he canceled a visit to Brazil and to Chile with 
no explanation. Also, he has not designated a single Special 
Envoy for crisis like migration crisis in Central America, 
elections in Venezuela, human rights in Cuba, political 
prisoners in Nicaragua, the southern border. You know the 
usual--the usual problems.
    He did not go to Central America and to South America but 
he did not invite any of the dignitaries either. What do I mean 
by that?
    One of the highest honors given to a foreign dignitary is 
holding a State dinner at the White House and you know at least 
one country in every continent has had a State dinner except 
for the Western Hemisphere, and when he speaks to the Nation 
through the State of the Union there is no mention of Latin 
America.
    In the meantime, unfortunately, the Chinese are filling the 
void. In the last 4 years Chinese investment has increased by 
300 percent in the region.
    In 2022 alone $450 billion in Chinese money have gone to 
Latin America and for this reason today China has surpassed the 
United States as the top trading partner in the region.
    That is a problem for our national security. On top of that 
is disastrous for our economy, national security, and for the 
well-being of our allies that are always yearning to do 
business with the Americans.
    If we lose Latin America to the Chinese, who are not really 
very nice actors, we are definitely in trouble and we lose here 
at home. So I think that you agree with me that we have to wake 
up and defend and embrace and be part of this hemisphere in the 
future years.
    So I now recognize the gentleman from Arizona, Mr. Stanton, 
for any statements he may have. Thank you for being here in 
lieu of Ranking Member Castro.

        OPENING STATEMENT OF REPRESENTATIVE GREG STANTON

    Mr. Stanton. Thank you very much, Chair Salazar, for 
hosting this important hearing. Thank you for the witnesses for 
being here today.
    The Western Hemisphere is a critical region for the United 
States, full of our top trading partners and incredible 
potential for nearshoring and economic growth. But we must be 
clear eyed about the challenges.
    The President's budget recognizes the importance of the 
region, requesting an additional 7.9 percent in funding for 
critical priorities, tackling the flow of fentanyl, improving 
the rule of law, and addressing the root causes of migration.
    It is disappointing that the appropriations bill the House 
voted on just a few weeks ago cut the international affairs 
budget by 12 percent.
    It decreases developmental assistance by over 30 percent, 
eliminating all funding for safe mobility offices and 
underfunding the operations and staffing of the State 
Department and the U.S. Agency for International Development. 
It is an unwise strategy at a time when our strategic 
competitors continue to grow their influence in the region.
    Last week I was in Mexico where I had the opportunity to 
meet with President Lopez Obrador and President-Elect Sheinbaum 
as a bipartisan, bicameral congressional delegation. We spoke 
at length about the untenable security situation in Mexico 
where cartels control one-third of the country and contributed 
to the most violent election in Mexico's recent history.
    We discussed the need for the United States and Mexico to 
cooperate in combating these cartels and trafficking of 
synthetic opioids across the border.
    I represent Arizona, a border State, and I know how 
important our relationship with Mexico is for the strength of 
our own economy. Right now we have an unprecedented opportunity 
to nearshore our supply chains and capitalize on historic 
investments made under the CHIPS and Science Act.
    I urged Dr. Sheinbaum to take advantage of this moment and 
she was enthusiastic about building Mexico's footprint in the 
tech space, especially working with Arizona's semiconductor 
industry.
    It was a fruitful visit but there was much more to do to 
create a reliable environment for direct foreign investment in 
Mexico and throughout the region.
    The flow of illicit fentanyl has devastated far too many 
American families. We have taken important steps to stop the 
trafficking of fentanyl in the United the United States 
including the recent passage of my bill, the American 
Cooperation With Our Neighbors Act, which promotes 
collaboration between State and local entities on both sides of 
the border to counter fentanyl.
    As former mayor of Phoenix I deeply understand the 
importance of this subnational collaboration and the critical 
role local authorities play.
    I urge the Senate to swiftly take up this bill and I look 
forward to working with the State Department in formulating an 
effective plan to combat cartel influence, gang recruitment, 
and the flow of synthetic opioids and precursor chemicals.
    We have to reduce migration. In the last 2 months we have 
seen unlawful crossings drop by 50 percent to the lowest level 
in many, many years. But we must continue to invest in programs 
like safe mobility offices that disincentivize travel to our 
southern border.
    We have to invest in deep diplomatic relationships with our 
neighbors taking in migrants and addressing root causes of 
migration including through nearshoring our supply chains, 
which mainly shores up our national security but has the added 
benefit of creating necessary stable jobs that keep people in 
their home countries.
    Venezuela--they will be holding elections this coming 
Sunday. This is such a consequential moment for Venezuela and 
comes after years of chaos and tragedy. I know these elections 
Sunday are not perfect. Far from it.
    The Maduro regime has disqualified legitimate Presidential 
candidates, particularly Ms. Maria Corina Machado. They have 
attempted to split the opposition and denied access to 
international observers.
    But the elections still represent the best opportunity for 
the Venezuelan people to make their voices heard. The 
opposition, including Ambassador Edmundo Gonzalez and Ms. Maria 
Corina Machado, should there resolve in the face of these 
actions and I think the Biden administration, including the 
State Department, USAID, and the National Security Council 
deserves immense credit for doing the hard work of diplomacy to 
bring us to this important point.
    I look forward to hearing from our witnesses on our efforts 
to support democracy in Venezuela and what we can expect on 
Sunday and the days to follow.
    Thank you, Madam Chair.
    Ms. Salazar. Thanks to you, Congressman Stanton.
    Other members of the committee are reminded that opening 
statements may be submitted for the record.
    Today we have witnesses from the State Department, the 
USAID, who handle U.S. foreign policy in the Western Hemisphere 
for the Biden administration, starting with Hon. Brian Nichols, 
who I always appreciate the fact that you always come every 
time we call you.
    I mean, I know it's fatiguing but this is democracy and I 
love the fact that you are following the rules.
    He is the Assistant Secretary of State for Western 
Hemisphere Affairs for the Bureau of Western Hemisphere Affairs 
within the United States Department of State.
    And Hon. Julieta Valls Noyes is the Assistant Secretary for 
the Bureau of Population, Refugees and Migration at the United 
States Department of State, and Mr. Michael Camilleri is the 
Acting Assistant Administrator for the Bureau for Latin America 
and the Caribbean for the United States Agency for 
International Development.
    And thank you for being here today. Once again, I extend 
the welcome and the thank you for both of you being here. Your 
full statements will be made part of the record and I'll ask 
each of you to keep it to 5 minutes in order to allow time for 
members to pose their questions.
    I now recognize Hon. Brian Nichols for his opening 
statement.

                   STATEMENT OF BRIAN NICHOLS

    Mr. Nichols. Chairwoman Salazar, Ranking Member Stanton, 
members of the committee, thank you for the opportunity to 
testify today on the administration's Fiscal Year 2025 budget 
request for the Western Hemisphere.
    The President's budget request includes $2.2 billion in 
foreign assistance for the Western Hemisphere that addresses 
the hemisphere's most pressing challenges, from democratic 
resilience and irregular migration to economic growth and 
climate change.
    Our approach is rooted in the administration's commitment 
and the request prioritizes increasing resources for Haiti 
migration management, sustaining assistance for Central 
America, and support for democratic actors, building Caribbean 
countries' climate and economic resilience, advancing a 
positive economic agenda across the hemisphere, and countering 
the influence of the People's Republic of China.
    Haiti is 650 miles from the United States. We share close 
historical, familial, cultural, and economic ties. Supporting 
Haiti and the multinational security support mission ranks as a 
top foreign assistance priority.
    The situation in Haiti remains critical and our funding is 
essential to improve security on the ground, lay the groundwork 
for free and fair elections, and encourage additional financial 
and personnel contributions from other international donors.
    The 2025 request includes $356.7 million for Haiti across 
multiple accounts including funding to support the 
multinational security support mission.
    Under the Los Angeles Declaration on Migration and 
Protection endorsed by 22 countries in the region we have 
affirmed our collective commitment to respond to migration and 
forced displacement across the region.
    The Fiscal Year 2025 request includes $218.7 million in 
development, economic health, and security assistance to ensure 
the Department of State and USAID can sustain and expand 
regional efforts to manage migration safely, humanely, and 
effectively.
    As we address democratic challenges in the region we also 
endeavor to unlock the region's economic potential and ensure 
democracies can deliver prosperity to their citizens. The 
Americas Partnership for Economic Prosperity represents a 
pivotal initiative to support economic growth and strengthen 
our affirmative offer in contrast to our strategic rivals.
    We also emphatically support a capital increase for IDB 
Invest and the administration's budget requests $75 million as 
a first payment.
    A reinforced IDB Invest will deliver on key U.S. objectives 
for the region by bolstering private sector-led growth, 
building resilient supply chains, creating economic opportunity 
for entrepreneurs in the middle class, and offering a 
transparent and accountable alternative to PRC lending in the 
region.
    APEP also supports a transparent procurement and regulatory 
framework that open opportunities for our partners and enable 
them to rely less on the PRC.
    Central America remains a focal point for our foreign 
assistance strategy. The Fiscal Year 2025 request provides 
$658.6 million in State and USAID bilateral and regional 
funding, robustly resourcing the five pillars of the U.S. 
strategy for addressing the root causes of migration in the 
final year of the President's commitment to provide $4 billion 
over 4 years.
    This funding will deepen our engagement on priority issues 
such as migration and security cooperation. It will also foster 
inclusive economic growth, combat corruption, and safeguard 
human rights.
    Through the root causes strategy we work with diverse 
partners including civil society and the private sector. Vice 
President Harris' Central America Forward initiative has 
mobilized over $5.2 billion in private sector commitments that 
have already created over 70,000 jobs in Central America.
    By addressing the causes of migration we aim to create a 
more stable, prosperous region where citizens can thrive in 
their homelands and benefit their communities while avoiding 
the dangerous journey of irregular migration.
    The Caribbean remains another critical area of focus. The 
Fiscal Year 2025 budget provides over $190 million across 
various accounts to strengthen the region's ability to 
withstand climate shocks, respond to natural disasters, build 
energy resilience, and support conservation efforts.
    The restoration of democracy in Venezuela remains at the 
center of our foreign policy. We continue to harness all 
diplomatic tools and leverage sanctions to this end including 
working with Venezuelans and regional and international 
partners to encourage Maduro and his representatives to hold a 
competitive and inclusive election on July 28.
    The Fiscal Year 2025 request includes nearly $54 million to 
support these and other efforts including critical health 
support. While we are clear eyed about the prospects for a 
competitive election on July 28th we must prepare for a 
scenario that Venezuela returns to democratic rule in the 
future.
    In conclusion, the Fiscal Year 2025 request for the Western 
Hemisphere reflects our commitment to address the hemisphere's 
biggest challenges through a partnership-driven foreign policy.
    Our efforts are guided by the principles democracy, human 
rights, economic growth and security, as well as a focus on 
fostering strong partnerships.
    Thank you again for the opportunity to discuss our foreign 
assistance request for the Western Hemisphere and I look 
forward to your questions.
    [The prepared statement of Mr. Nichols follows:]
    
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Ms. Salazar. Thank you, Assistant Secretary Nichols.
    Now I recognize Hon. Julieta Valls Noyes for her opening 
statement.

                STATEMENT OF JULIETA VALLS NOYES

    Ms. Noyes. Good morning, Chairwoman Salazar, Ranking Member 
Stanton, and distinguished members of this committee.
    I am pleased to be here today to discuss the Fiscal Year 
2025 Migration and Refugee Assistance, or MRA, budget request 
for the humanitarian needs of refugees and displaced and 
stateless persons in the Western Hemisphere.
    There are more than 120 million forcibly displaced people 
around the world and more than 21 million of them are here in 
the Western Hemisphere.
    Violence, crime, persecution, human rights abuses, and 
natural disasters are driving them from their homes. Millions 
of people are also on the move in search of economic 
opportunity or family reunification.
    While these movements create complex challenges, it is 
important to note that the vast majority of the displaced 
persons in this hemisphere are not coming to the United States 
but rebuilding their lives in other countries.
    The Fiscal Year 2025 MRA budget request includes $475 
million for humanitarian programming in the Western Hemisphere 
and $300 million for the safe mobility initiative. It would 
provide lifesaving assistance for those in need and help 
integrate refugees and vulnerable migrants into communities 
closer to their countries of origin.
    The administration will support these solutions through 
robust humanitarian diplomacy. The request advances a holistic 
approach to forced displacement and migration management in the 
Western Hemisphere.
    The funding in the budget request is intended to strengthen 
national asylum, registration, regularization, and integration 
frameworks, prevent the forcible return of persons to a place 
that where they would be persecuted or tortured, protect and 
assist the most vulnerable refugees and migrants, and increase 
refugee resettlement and other lawful migration pathways.
    The MRA funds Congress has generously provided in this and 
previous fiscal years have had a significant impact in 
stabilizing displaced populations and host communities 
throughout the hemisphere.
    By strengthening access to legal status including asylum 
and regularization displaced people in the region can find 
employment and stability in their countries of first refuge 
rather than undertaking dangerous journeys north.
    For example, PRM has provided nearly $400 million since 
2021 to support over two and a half million Venezuelans settled 
in Colombia. Supporting legal status and integration of 
displaced persons in partner countries is a critical aspect of 
our strategy.
    The Bureau of Population, Refugees, and Migration also 
continues to prioritize assistance to people with dire needs. 
This budget request supports our core mandate to provide 
lifesaving assistance and protection to refugees, asylum 
seekers, vulnerable migrants, and stateless persons.
    It will fund water, nutrition and hygiene support, urgent 
health care, and basic humanitarian aid to the most vulnerable 
where they are.
    It will help reunify displaced separated children from 
their families, provide medical and psychosocial support to 
survivors of gender-based violence, and help meet the basic 
needs of especially vulnerable refugees and displaced 
populations.
    To increase regional cooperation PRM also supports our 
partners' humane migration management, strengthening their 
protection systems, policies, border management and emergency 
response preparedness.
    For example, our programs in Costa Rica, Guatemala, and 
Honduras have advanced adoption of new national strategies for 
safe, orderly, and humane migration management. The budget 
request will also strengthen lawful migration and protection 
pathways, providing a critical alternative to irregular 
migration.
    The safe mobility initiative facilitates access to 
information for migrants about local integration and other 
options to prevent irregular migration. It supports safe and 
lawful migration pathways so refugees do not have to undertake 
dangerous journeys in search of safety.
    For those with protection needs the safe mobility 
initiative has provided expedited refugee resettlement to both 
the United States and other countries. Safe mobility offices 
are operational now in Colombia, Costa Rica, Guatemala, and 
Ecuador.
    In closing, I'd like to thank the members of this committee 
for the opportunity to discuss the President's budget request. 
The United States' humanitarian diplomacy, assistance, and 
durable solutions are key aspects of our approach in this 
hemisphere.
    PRM advocacy also encourages other governments to step up 
as hosts, donors, and resettlement countries to protect the 
most vulnerable.
    We are pursuing contributions and greater collaboration 
from other governments, international financial institutions, 
and the private sector to address these needs.
    The Fiscal Year 2025 budget will support U.S. leadership to 
save lives, alleviate suffering, provide protection, and 
advance durable solutions to today's historic levels of forced 
displacement in the Western Hemisphere and globally.
    I appreciate your support and look forward to your 
questions.
    [The prepared statement of Ms. Noyes follows:]
    
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Ms. Salazar. Thank you, Assistant Secretary Noyes.
    I now recognize Mr. Camilleri for his opening statement.


                 STATEMENT OF MICHAEL CAMILLERI


    Mr. Camilleri. Chair Salazar, Ranking Member Stanton, 
members of the committee, thank you for the opportunity to 
discuss the President's Fiscal Year 2025 budget request for 
Latin America and the Caribbean.
    This is a pivotal moment. Our investments today will shape 
the region and our own national security for decades to come.
    In Haiti, USAID programs continue despite significant 
challenges on the ground, providing humanitarian and food 
security assistance, supporting health clinics, expanding 
economic opportunity, and strengthening citizen security.
    With support from the multinational security support 
mission the Haitian government is taking steps toward stability 
and paving the way for free and fair elections.
    USAID is supporting these efforts including by providing 
identification cards that will facilitate more than 2 million 
people voting. Across the hemisphere we look for opportunities 
to surge efforts where democratic leaders seek to promote 
reform.
    The budget request prioritizes this approach in the 
Dominican Republic, Ecuador, and Guatemala, which is rejecting 
corruption and the PRC's economic coercion in favor of 
accountability and inclusive economic growth.
    In more challenging environments USAID supports the civil 
society groups documenting abuses and fighting for individuals' 
human rights and fundamental freedoms.
    For example, in Venezuela courageous citizens have 
responded to years of repression by mobilizing for democratic 
change. USAID has been proud to support these efforts, which 
have been instrumental in the lead up to this weekend's 
elections.
    USAID's investments can lead to long-lasting impact. In 
Colombia our decades-long partnership has helped the country 
move toward peace. The requested budget would allow us to 
continue efforts with national and local government 
institutions, civil society, and other partners to implement 
the peace accord and address key challenges, including 
migration and coca production.
    Across the hemisphere migration is at historic levels. In 
response, USAID strategy supports integration, expands lawful 
pathways, and addresses root causes. In Colombia, USAID, 
together with our PRM counterparts, has helped more than 2 
million individuals obtain legal residency.
    We support one-stop shops where migrants can access 
schools, health care, bank accounts, and jobs and rebuild their 
lives.
    In Peru we have supported degree validation so migrants can 
contribute their full potential to their host countries. USAID 
also works to reduce irregular migration by expanding access to 
lawful pathways that provide access to temporary work 
opportunities abroad.
    We have strengthened the capacity of our government 
counterparts in El Salvador, Guatemala, and Honduras, allowing 
them to nearly triple their citizens' access to H-2 temporary 
work visas.
    Finally, under the administration's root causes strategy 
USAID supports good jobs, safe communities, and more 
transparent, accountable institutions. These initiatives help 
mitigate some of the push factors that lead people to leave 
their homes.
    Indeed, both intentions and actual migration from northern 
Central America have fallen significantly since the strategy 
was launched. As the region's challenges continue to evolve 
USAID is working to meet them.
    In the aftermath of the COVID--19 pandemic that took such a 
toll in the Americas our global health security programs work 
to detect public health threats, enable rapid response, and 
prevent threats from turning into regional or global crises.
    In the Caribbean and across the region we're helping to 
provide early warning systems that will help save lives, 
drought and heat resistant crops that provide a more reliable 
source of food, and secure, affordable and clean energy.
    Thank you again for the opportunity to speak with you today 
about how USAID works to advance America's interests and build 
a more secure, democratic, and prosperous hemisphere. I look 
forward to your questions.
    [The prepared statement of Mr. Camilleri follows:]
    
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
    Ms. Salazar. Thank you, Mr. Camilleri, and I recognize 
myself for 5 minutes of questioning.
    I'm going to start with you, Mr. Nichols, and we're going 
to start with Venezuela. We're 4 days away probably from the 
most important event in the recent history of that country.
    Edmundo is the opposition. He is leading the polls by 30 
points according to what we have access to. That means around 3 
million votes. You and I know that President Maduro is in the 
business of power and his intention is not to concede. But he 
is at a major disadvantage.
    So my question to you is do you know what type of fraud 
they are planning to put together? What are they planning to 
do? Stuff the ballots? Change the Smartmatics(?)?
    [Speaks in Spanish.]
    Ms. Salazar. Asking for a photo of your ballot. I mean, 
whatever. What info do you have? Do you recognize, first and 
foremost, that they're going to try to steal the election, yes 
or no?
    Mr. Nichols. Thank you, Madam Chairwoman.
    Well, we have already seen important steps that the Maduro 
side has taken disqualifying two earlier opposition candidates, 
harassing opposition campaign workers, arresting them, 
vandalizing vehicles, punishing people that provide support. So 
we have already seen----
    Ms. Salazar. So let's put that aside. I understand. I agree 
with you that they tried but now they are--now we're in the 
show. So how are they going to try to steal the show? What info 
do you have?
    Mr. Nichols. Well, I think the key barometer early on will 
be turnout for the vote, and as you note polls indicate a 
significant lead for the opposition and we expect that if 
they're able to turn out their voters they should perform well.
    Ms. Salazar. But what info do you have? What are the 
schemes they're trying to put together? Do you have that info? 
Because something they're planning.
    What is it that they're planning? I cannot figure it out 
because there are many different ways. But I want us to ask the 
State Department what are you guys expecting?
    Mr. Nichols. I don't have any specific information on what 
they might--what the Maduro side might do. What I will say is 
that this election represents a major opportunity for Venezuela 
to return to the community of nations and to have an 
opportunity for a better future.
    Ms. Salazar. Well, you know that that's not Maduro's plan. 
I mean, they're in the business of power. What do you mean 
conceding victory? You're giving power away. That's not part of 
the agenda.
    So since we know that is not part of the agenda so what can 
we do in order to--can we talk to Lula? Can we talk and we put 
more pressure? I mean, we are the United States and you guys 
are in charge.
    What can we do to send the message to Maduro after, let's 
say, polls are going to close at 7 o'clock at night? I mean, 
I've covered this before as a journalist.
    So let's say by 2 o'clock in the morning they are still 
counting. We know. So what are we going to do in those key 
hours, we meaning the United States--you the State Department? 
You're going to pick up the phone and what are you guys going 
to do?
    Mr. Nichols. We continue to engage with partners from 
around the world to maintain a united----
    Ms. Salazar. Who are those partners? Tell me. Who are you--
who are you calling as an ally to call Maduro and say, you got 
to go, guy?
    Mr. Nichols. Well, I think we're like-minded with countries 
throughout the hemisphere--Canada, Mexico, Brazil, Peru, 
Ecuador, Argentina, Chile.
    Ms. Salazar. Have you enlisted them already? Have you been 
talking to them and say, hey, I need you to be on standby?
    Mr. Nichols. During the OAS General Assembly in Asuncion, 
Paraguay, we had the opportunity to talk to more than a dozen 
partners from around the hemisphere about key issues including 
our collective support for democracy in Venezuela.
    Secretary Blinken engaged a dozen colleagues during the 
ministerial meeting of America's Partnership for Economic 
Prosperity.
    Ms. Salazar. Mr. Nichols, I understand everything you've 
told me and I'm on your side. I just want to hear something 
more forceful--that we, the United States, in this magnificent 
moment of Biblical proportions for the history of the 
Venezuelans that we are going to be a little bit more forceful. 
But I hear what you're telling me.
    Is there anything else that you want to share with us? I 
have another question. I know that Maduro, when he realized 
that he's 3 million votes down, he calls the Biden 
administration through Jorge Rodriguez, who is one of the top 
lieutenants next to Maduro.
    Can you share with us what was discussed? That happened, 
what, earlier this month. They picked up the phone. They called 
the Biden administration. What did they say?
    Mr. Nichols. So we did have a conversation with some of the 
Maduro side representatives. They expressed their unhappiness 
about----
    Ms. Salazar. About what? How they're going to lose?
    Mr. Nichols. About the fact that we have not lifted 
sanctions.
    Ms. Salazar. Okay. Yes. Right.
    Mr. Nichols. And we expressed our disappointment at the 
disqualification of earlier candidates and our hope that this 
would be a competitive election and----
    Ms. Salazar. What did they say to that? Of course, yes.
    Mr. Nichols. I'm not going to get into all of the back and 
forth that we had in a negotiation but I will say----
    Ms. Salazar. Was something negotiated?
    Mr. Nichols. We've--no. We value the channel of 
communication that we have and it's important as we go forward 
to be able to have conversations between our two governments--
between our government and the Maduro side.
    Ms. Salazar. But you cannot share with us anything that was 
spoken specifically or negotiated in that----
    Mr. Nichols. I'm not going to get into the contract with 
Nicaragua.
    Ms. Salazar. All right. What about in Qatar last year? 
There was also a discussion between Biden administration 
officials and the Maduro regime. Was a transition discussed?
    Mr. Nichols. As a part--the pending phase of the Barbados 
agreement talked about the next phase would be some type of a 
civic pact and discussion of what would happen from the time of 
the election until the January inauguration of whomever the 
victor is in the election.
    All of those discussions are still pending.
    Ms. Salazar. Moving forward, the morning after Maduro comes 
out and says, I won by 50.315, what are we going to do if we 
know that they stole the elections just like they have done 
before? What's going to be our first reaction?
    Mr. Nichols. Well, under Venezuelan electoral law their 
electoral council has until the following day to announce the 
results and then August 2d they're supposed to publish detailed 
results.
    There will be international observers on the ground. There 
will be thousands of domestic poll watchers from the opposition 
as well as from parties that support the Maduro side.
    We want to look--and there'll be international diplomats 
present--we want to look at all the information. We're not 
going to rush to judgment, and then we will make a decision.
    Ms. Salazar. All right. And then we'll be in touch because, 
as you said, we both agree on the fact that the Venezuelans 
deserve to be free and choose their own leaders.
    Now, I'm just--I just want to have a little bit more time 
after that. We have to--you know, I'm trying to be courteous to 
my fellow members of the committee.
    All right. Vice President Kamala has been in charge of the 
border. Her visits have been considered--I'm not saying it, the 
headlines say it--a failure.
    Right there you have CNN that--it's a pretty friendly news 
outlet for the Democrats--saying that the problem is now much 
bigger. That's not a very good headline to Vice President 
Harris.
    She goes to Guatemala and then she implies that the country 
is corrupt in this press conference that she puts together with 
Giammattei, who was the president at the time, and she tells 
the Guatemalans right there on the air, hey, don't come. Don't 
come.
    Then she was assigned to go to El Salvador where real 
progress--in El Salvador has been made, to address the root 
causes of migration. So, in other words, Madam Harris is now in 
a very peculiar position.
    Probably everything indicates that she's going to be the 
nominee for the Democratic Party and I just want to ask you 
what grade would you give her?
    According to the headlines, she gets an F in the job or in 
the assignment that she was given by the President to control 
or to be the border czar. What grade do you give her?
    Mr. Nichols. So Vice President Harris launched the U.S. 
root causes strategy to tackle the drivers of irregular 
migration by improving conditions in El Salvador, Guatemala, 
and Honduras so people do not feel compelled to leave their 
homes.
    She leads the implementation of this strategy. The root 
causes strategy is on track to provide $4 billion in U.S. 
investment to the region over 4 years.
    Ms. Salazar. Mr. Nichols, she hasn't even gone to the 
border.
    Mr. Nichols. So----
    Ms. Salazar. I mean--I mean, just give me a little better 
explanation.
    Mr. Nichols. Arrivals at the U.S. border from the countries 
in Central America are down dramatically over the last 4 years.
    Ms. Salazar. But that was 5 minutes ago. I mean, that 
happened 5 minutes ago during 1920, 1921, 1922, 1923. We know 
reality. I mean, I just want to get some true statements from 
you.
    I mean, why do you think that she failed so dismally at 
this job that she was given? Why didn't she pay any attention 
to the southern border or be one of the most important topics 
affecting the national security of this country? Do you have 
any explanation?
    Mr. Nichols. I think this has been a dramatic success. We 
have seen double digit drops in arrivals at the U.S. southern 
border from every country we measure, up to 96 percent drops.
    Even the Central American country that's had the lowest 
drop is still a 26 percent drop over the last year. Arrivals 
are at their lowest level since before this administration took 
office.
    The Vice President has mobilized over $5.2 billion in 
commitments for investment in the region, generating over 
70,000 jobs----
    Ms. Salazar. You are a great soldier.
    Mr. Nichols [continuing]. Through private sector investment 
in the region.
    Ms. Salazar. I think you're doing a great job. Let me 
just--doing a great job. I think that they are really 
definitely going to reward you for your assistance in this 
hearing.
    Let me just go to Colombia now. There are many accusations 
right now about President Petro's personal life. I may be tough 
but I do not want to pry into anyone's private life, much less 
in public.
    All right. But the issue is that he is constantly late and 
has to cancel many meetings. Not only that, he has missed 150 
public engagements during his presidency. Are you aware of 
this?
    Mr. Nichols. I hadn't seen that specific statistic, no.
    Ms. Salazar. One hundred and fifty public engagements. In 
the last week during the Vente de Julio--July 20th--parade, 
which celebrated an important date for the Colombians, that 
parade had to start without the president because he was more 
than 3 hours late.
    Recently, even more damaging, I think, for his image he was 
spotted walking hand in hand with a woman who was not his wife 
who appears to be Lady Linda Yeppes, who is a trans woman who 
was a host on the program Buendia in Colombia through RCN, one 
of the main networks in Colombia.
    When did that happen? During the inauguration of Jose Raul 
Mulino in Panama. The pictures are there for everyone to see. 
He has admitted that he has been drunk at many public events.
    So my question to you is this. Do you think that what I 
just mentioned and the concerns from some Colombians is 
affecting these dalliances and this new ways of conducting his 
private life are affecting his ability to govern? What do you 
think about that?
    Mr. Nichols. Our relationship is with the Nation of 
Colombia. It goes back two centuries. They are some of our 
closest allies in the world. We work with them across a whole 
host of issues.
    Ms. Salazar. Mr. Nichols, but he's the one--he's the one 
conducting the ship.
    Mr. Nichols. That relationship goes beyond the--any single 
individual and we will focus on our government-to-government 
relationship with Colombia.
    Ms. Salazar. Aren't you concerned about that erratic 
behavior from one of our top allies?
    Mr. Nichols. I'm not in a position to verify or to comment 
on the specific allegations.
    Ms. Salazar. So why don't we then--after the hearing we 
could have a conversation? We can continue talking about this 
because this is just not--this type of behavior is not very 
Presidential for an ally as close, as you just mentioned.
    Now I'm going to yield back so I can give an opportunity to 
the gentleman from Arizona, Mr. Stanton, and thank you very 
much for your patience.
    I yield back.
    Mr. Stanton. Thank you very much, Madam Chair.
    I think we have votes that we're going to have to go to in 
just a moment and I think because of the--all the activities on 
Capitol Hill today including the prime minister of Israel who's 
coming to give a speech, we won't come back after votes. So 
I'll just speak for maybe a minute or two and then call it a 
day because we don't be late for votes.
    But I just want to say first in response to your comments, 
you know, we will be paying close attention what happens in 
Venezuela and if there are irregularities. I look forward to 
working with you and for--I know you asked the administration 
about their response but I look forward to working with you on 
an appropriate congressional response to any irregularities in 
that.
    As it involves the vice president you gave her a poor grade 
for her involvement in immigration and border security. I say 
we need to actually look in the mirror and say Congress--
Congress is actually the entity that needs to step up to the 
plate and finally pass a real border security plan in a 
bipartisan way, real immigration reform, a real policy as it 
relates to trade with Mexico, Central and Latin America, and a 
real policy as it relates to the root causes of migration and 
the failure of Congress to be able to come together in a 
bipartisan way to do that has led to so many of the challenges 
that we are discussing right here today, and the failure of 
Congress to pass common sense policies on border, immigration, 
trade, and root causes is one of the great failures of this 
Congress.
    Chair, I want to compliment you because you have been 
someone that has put forward--worked in a bipartisan way and 
put forward a real plan--a real bipartisan plan--I know with 
real political risk to do that and I just want to personally 
compliment you.
    And I wish there were more like you that are willing to 
reach across the aisle, come together in a bipartisan way, take 
political risk, because it's going to take real political risk 
on both sides to get this done.
    But we can do this in Congress. We shouldn't cast blame on 
other people because it's Congress that has to take this 
important step.
    And with that, we're going to close out the hearing because 
we got votes, and I know we have an important speech later so I 
don't want to force everyone to come back. So thank you for 
being here.
    Ms. Salazar. And we are coming back, according to the 
staff, and the committee will recess until 11 o'clock for 
votes. No, we're going to come back at 11. So we may be coming 
back at 11 and if you don't mind staying and continue with our 
questioning we very much appreciate it.
    We'll come to--we'll reconvene then at 11.
    [Recess.]
    Ms. Salazar. The committee will come to order.
    Now I recognize Congressman Huizenga for 5 minutes.
    Mr. Huizenga. Thank you, Madam Chair.
    And, Madam Chair, if you don't mind indulging me.
    I know that there's been a lot of debate about who's in 
charge of the border, who's been assigned a task to deal with 
the border. Some have used the term border czar. Maybe czarina 
would be--would be more applicable.
    For clarity's sake I do want to add, if you don't mind, a 
AP article from March 24 of 2021. The headline is ``Biden taps 
VP Harris to lead response to border challenges,'' and I'm 
going to read the very first paragraph.
    ``President Joe Biden has tapped Vice President Kamala 
Harris to lead the White House effort to tackle the migration 
challenge at the U.S. southern border and work with Central 
American nations to address root causes of the problem,'' close 
quote.
    And I'd like to submit that for the record because I think 
it is important that we have clarity about not only what has 
been happening but what the response has been and the 
responsibility of that.
    [The information referred to is located in the appendix:]
    Mr. Huizenga. I'm going to start, frankly, in a slightly 
different direction, though. I'd like to talk about China and 
the Chinese nationals.
    More Chinese nationals have presented themselves at the 
border this current Fiscal Year than in the entirety of Fiscal 
Year 2023 and I would like to hear, Secretary Nichols, is the 
administration concerned about the intent--not just numbers but 
the intent of the Chinese nationals when they arrive and is 
there any indication that they are connected to the CCP either 
overtly or covertly?
    Mr. Nichols. Well, I think the arrival of migrants from the 
PRC is a stunning indictment of the leadership of that nation.
    The PRC's economic slowdown, government repression--that's 
what's driving this increase in migrants and migrants arrive 
from all regions in China and the majority of migrants are 
middle class and professionally skilled.
    We continue working with partners to identify countries of 
concern and coordinate responses to disrupt flows whether they 
be from China or any place else.
    Mr. Huizenga. So you don't--you don't believe there's any 
nefarious intent behind this? This is just people trying to 
flee a lousy China's economic policy?
    Mr. Nichols. I think it's driven by people's deep 
dissatisfaction with the lives that they have. People don't 
pick up and leave where they are unless they are----
    Mr. Huizenga. Well, we have slightly different views of the 
PRC and the CCP and their motives, and we know that this isn't 
just happening at the southern border. I happen to be the chair 
of the U.S.-Canada, IPG. I live in Michigan. I'm very familiar 
with the northern border.
    Two-thirds of all of those who have been caught--not the 
getaways but who have been caught who have been on the 
terrorist watch list--have been actually at the northern 
border, not at the southern border.
    There's two borders that have been exploited here, and I'll 
give you another example. So my wife used to be Canadian. Has 
family in Canada. I'm sure you're familiar with what a nexus 
card is, correct?
    Okay. A nexus card is a unique joint U.S.-Canada permit 
that allows easier travel for those that sit in front of both a 
U.S. and Canadian Border Patrol at the same time. It's a very 
unique thing.
    So recently while my wife was getting her nexus card I was 
with her and was talking to one of our Border Patrol agents in 
Detroit and I said, hey, do you mind if I ask you a couple of 
questions?
    About three questions in he looked at me and said, what do 
you do exactly? Because I was fairly specific in my--in my 
questions. And he was indicating to me that as my question was 
is the northern border more vulnerable because of what's been 
happening at the southern border and he said, absolutely, sir.
    He said, we have mandatory 6-month rotations. It's 
voluntary at first but if they don't have enough spots to fill 
they are moving us off of the northern border down to the 
southern border. And he happened to be in the El Paso area for 
6 months just recently.
    He recounted a story about how a family showed up from 
Brazil. He said they were very well dressed, very nice luggage, 
and we started asking them and interrogating them, what are you 
doing and where do you plan to go?
    Well, it turns out--according to him, it turns out that 
this family--almost everybody in the family could get a visa 
except for the dad. They were trying to go to Disney World. I 
kid you not.
    So they all flew to Mexico and decided to come across the 
border. They did their vacation and then, according to him, 
presumably they left because he said, they gave us no 
indication that they actually wanted to stay in the country.
    This is how porous the border is right now and how 
ineffective, in my opinion, the enforcement of current law has 
been where we have potentially people looking to come to the 
United States for vacation purposes, not just economic 
purposes.
    But we have such a reputation for what's going on, and I 
cannot fathom--you know, this family from Brazil may not have 
had nefarious reasons to be here. They wanted to go see Mickey 
and Minnie.
    But guess what? The people from China and from a lot of 
other places may not have that same motive and what I'm trying 
to figure out is how this administration can argue that after 
hundreds of millions of dollars has been spent in Central 
America to curb migration we haven't seen that. After all of 
the other, quote, ``additional enforcement'' we're seeing a 
clearly a more porous border than we ever have, and how do I 
look at my constituents and my taxpayers and say this isn't a 
waste of your money?
    I mean, that's what we're here today to talk about, right, 
is your--the request from State about getting more money to put 
into these programs, which I would argue have not been 
effective.
    So please try to convince me here briefly.
    Mr. Nichols. So with regard to Central America and our root 
causes strategy I'll just note over the last 12 months arrivals 
from nationals from Guatemala are down 75 percent, from 
Honduras down 86 percent, and from El Salvador down 27 percent 
and they were already at a very low level.
    Mr. Huizenga. Any of that seasonal?
    Mr. Nichols. No, this is----
    Mr. Huizenga. No, none of it's seasonal?
    Mr. Nichols. This is----
    Mr. Huizenga. Come on.
    Mr. Nichols. We're at the lowest levels we have been since 
before this administration took office.
    Mr. Huizenga. Sir, we know that there's seasonality to 
border crossings. We know that.
    Mr. Nichols. The other----
    Mr. Huizenga. There are--there are--there were 400,000 
inadmissible--legally inadmissible aliens that we know about 
that has--that the mass parole program has allowed--400,000 
legally inadmissible aliens have been flown directly into the 
interior of the United States.
    I actually have a bill that would require you all to report 
to Members of Congress and to Governors when that happens 
because we're in the dark. We don't know about that until they 
land. We have had examples of that in Michigan as well.
    And by the way, Madam Chair, I'm sure you are very well 
aware of this. Numerous migrant caravans of thousands of people 
are still continuing to go.
    Monday of this week the AP reported that another migrant 
caravan left southern Mexico on foot heading for the U.S. 
border and the article states, quote, ``Some of the members of 
the group said they hoped to make it to the U.S. border before 
elections are held in November because they fear that if Donald 
Trump wins he will follow through on his promise to close the 
border,'' close quote.
    That's the AP. That does not sound like a border under 
control to me or an actual working strategy. So that is part of 
my hesitancy in granting more--hundreds of millions of dollars 
more to these programs.
    I'm well over my time, Madam Chair. I appreciate the 
indulgence, and I yield back.
    Ms. Salazar. Thank you, Congressman Huizenga.
    Now I recognize Congressman Self for 5 minutes.
    Mr. Self. Thank you, Madam Chair.
    First of all, I would point to one of your comments about 
Haiti moving toward stability. Haiti has been unstable for 
decades and I will point you to the Cubs--Chicago Cubs fans.
    They thought it was going to be different next year for 
decades. It finally was but it took decades for it to be 
different.
    I think using the word stability in the same sentence as 
Haiti is a rosy projection at best. I've heard nothing but rosy 
projections from all three of your testimoneys here and yet we 
know if every report is right that the CCP is making tremendous 
gains throughout the Western Hemisphere.
    So the first question is I want to know what kinds of 
activities does the countering PRC influence fund support in 
the region and what impact do you think that has?
    Mr. Nichols?
    Mr. Nichols. So among the things that we seek to do is 
educate populaces on the reality of the deals on offer from the 
PRC, whether that's investment or media or cultural centers, 
and educate people on what's really on offer, what the terms of 
credit that their countries might receive.
    We seek to provide financing for key infrastructure 
projects and other investments in countries in the region so 
that they have----
    Mr. Self. That's a great--that's a great point. So what is 
your percentage of the PRC spending in the Western Hemisphere?
    Mr. Nichols. Sorry, I'm not sure I understand the question, 
sir.
    Mr. Self. How does your spending compare to the DFC or 
whatever? What is our soft power spending in the Western 
Hemisphere? How does it compare to what CCP is spending?
    Yes, ma'am?
    Ms. Noyes. Sir, I could speak to that, perhaps, in the 
space of humanitarian assistance.
    Mr. Self. Well, I'm looking at a total cost. I think we are 
being vastly outspent and, frankly, in one of our previous 
hearings the State Department was bragging about being the 
chief investment partner of the Western Hemisphere instead of 
the chief trading partner, and I think that bodes us no good.
    Now, Argentina apparently has most of the rare earth 
minerals that we need and rare earth minerals, frankly, are not 
that rare. Alaska alone has 49 out of the 50 rare earth 
minerals and yet the Biden administration is trying to turn it 
into one large national park.
    But Argentina has many of them as well. So what would you 
do to try to get us rare earth minerals of which China controls 
some 90 percent around the world?
    So as long as we're talking about investment in South 
America, what would you do to try to get us rare earth minerals 
out of Argentina? Because we now have a government that I think 
would be amenable to that idea.
    Mr. Nichols. We have an excellent relationship with the 
Milei government in Argentina under the leadership of Under 
Secretary Jose Fernandez.
    We have engaged in discussions about promoting U.S. 
investment in the critical minerals sectors in countries like 
Argentina, Chile, Peru, and around the region.
    That means engaging partners, ensuring that policies are in 
place in countries that welcome foreign direct investment and 
U.S. investment.
    In the case of Argentina specifically, mineral resources--
subsoil resources are controlled by the provinces and not by 
the central government so that means working with Governors and 
our embassy engages with the Governors around the----
    Mr. Self. Okay. That's process but what are you doing to 
encourage U.S. companies to go get the rare earths that we 
need?
    Mr. Nichols. That means working with nations to create an 
environment that is welcoming to foreign direct investment, 
working with the private sector in the United States to share 
opportunities for investment.
    Mr. Self. That's generalities, though, Mr. Nichols. What 
are you doing to----
    Mr. Nichols. Leading trade delegations to countries in the 
region, working with our partners in the Department of Commerce 
to facilitate visits by businesses around the hemisphere, 
engaging with private sector organizations like BCIU, Council 
of the Americas, Chamber of Commerce.
    Mr. Self. Let me ask you--let me ask you this then. Those 
countries that you've named is China extracting rare earths out 
of those countries?
    Mr. Nichols. Yes.
    Mr. Self. And have we started?
    Mr. Nichols. Well, in some cases there are--in Chile and 
Peru there are U.S. mines that do mine critical minerals in 
those countries.
    Mr. Self. I will just make the point that I think our soft 
power has gotten a little soft. We need to be going after these 
things that our industry needs in great quantities and we need 
to be reducing the--our reliance on China.
    Mr. Nichols. I agree with you 100 percent on that point.
    Mr. Self. I yield back, Madam Chair.
    Mr. Nichols. I agree, and we need to do more. We need to 
fund DFC. We need to fund the Inter-American Development Bank 
so that the financing piece is there for these multi-billion-
dollar investments.
    Ms. Salazar. Thank you, Congressman Self.
    Now I recognize Mr. Stanton from Arizona for 5 minutes.
    Mr. Stanton. Thank you very much, Madam Chair.
    During last week's congressional delegation trip to Mexico 
I did have the opportunity to speak with President-Elect 
Sheinbaum about the security situation in Mexico and the power 
that cartels yield to inflict violence and ship fentanyl 
illegally across our border.
    We have an opportunity now to curb cartel activity. In most 
of Mexico police act as first responders but they don't 
investigate crime. That is instead led by prosecutors' offices 
that are too small to effectively investigate and prosecute 
crime.
    As mayor of Mexico City Dr. Sheinbaum allowed police to 
investigate crimes and hire more investigators, worked with the 
United States security officials and ultimately reduced crime 
by almost 60 percent.
    We need to seize this opportunity for deeper cross-border 
collaboration to combat the cartels including and especially 
stopping the flow of illicit fentanyl.
    Assistant Secretary Nichols, how does the State Department 
plan to work with the incoming administration in Mexico to 
combat the flow of fentanyl and buildupon the commitments of 
the U.S.-Mexico Bicentennial Framework for security, public 
health, and safe communities, and how do proposed budget cuts 
affect those plans?
    Mr. Nichols. We work intensively with the current Mexican 
government and we have begun to consult with the incoming 
government about our cooperation on law enforcement issues, and 
there's no issue more vital to the security and welfare of 
Americans than combating fentanyl trafficking into our country.
    That means continuing to work to identify chemical 
precursor suppliers into Mexico, identifying clandestine labs 
in Mexico, using intelligence-driven operations to disrupt the 
financing of drug cartels, training and supporting vetted 
investigative units in Mexico and making sure that that 
partnership, in addition to our bilateral engagement, works 
with other key partners around the hemisphere and around the 
world to combat this scourge.
    Mr. Stanton. This is a key moment in the relationship with 
Mexico, Central and Latin America, particularly on the issue of 
the nearshoring opportunity, this unique nearshoring moment, 
capitalizing growth with our trade partner Mexico and preparing 
for the upcoming review of the United States-Mexico-Canada 
Agreement--USMCA.
    Earlier this month this committee, in a bipartisan way, 
passed reauthorization of the BUILD Act, which allows the 
Development Finance Corporation more flexibility to invest in 
Latin America including in the semiconductor industry.
    These investments would shore up U.S. national security, 
give the United States more tools to compete with China, and 
create stable jobs in Latin America that contribute to a 
regional semiconductor ecosystem.
    Assistant Secretary Nichols, how does nearshoring bolster 
our national security and what can be done to ensure regional 
security in the Western Hemisphere, creating a more reliable 
business environment and limiting crossings into the United 
States?
    Mr. Nichols. Diversified supply chains provide greater 
security to the United States. We have already seen what can 
happen when a region of the world or international trade is 
disrupted as it was during the pandemic.
    Having supply chains closer to home means that we will have 
access to those important inputs and resources for our Nation. 
It creates good, high-paying jobs in our region, which gives 
people an incentive to stay at home rather than migrate to the 
United States.
    It creates economic growth that strengthens democracy and 
provides better trading partners for the United States. 
Recently Secretary Blinken hosted foreign ministers as part of 
the Americas Partnership for Economic Prosperity.
    Eleven other foreign ministers were there talking about how 
we can promote these measures in the Western Hemisphere 
including from Mexico as well as Central American countries 
that are attracting investment like Costa Rica and the 
Dominican Republic.
    Mr. Stanton. Safe mobility offices--they help to 
reestablish operational control at the southern border and they 
disincentivize travel to our southern border.
    To date four existing SMOs in Colombia, Costa Rica, 
Ecuador, and Guatemala have processed more than 21,000 people. 
USCIS recently told my office that strides made by the SMOs 
are, quote, ``proof of concept'' but acknowledges that there is 
room to grow, room for improvement.
    Assistant Secretary Noyes, what resources are required to 
expand the impact and reach of the SMOs and preserve regional 
security and how is the administration engaging governments 
around the world on SMO activities?
    Ms. Noyes. Thank you for the question, Congressman.
    The administration request for a safe mobility initiative 
in Fiscal Year 2025 is $300 million. Those funds would be used 
to manage the operations of the safe mobility offices but in 
addition to that we're engaging in robust diplomacy with our 
partners including through the Resettlement Diplomacy Network 
which is an informal grouping of countries to enhance refugee 
resettlement by our partners.
    We recently led a visit by a number of partners from 
Europe, the Americas, and Asia to visit the safe mobility 
office in Colombia and part of our effort will be to continue 
to expand that outreach and to expand the opportunities for 
other countries to provide lawful pathways to migrants within 
our hemisphere to their regions.
    There are a lot of countries in the world that have labor 
shortages and that could provide safety as well as labor 
opportunities for those migrants. So this is an opportunity 
that allows everyone to win.
    Mr. Stanton. Thank you very much.
    Madam Chair, I yield back.
    Ms. Salazar. Thank you, Congressman Stanton.
    And I'm going to then recognize myself for 5 minutes.
    I have a question for each one of you. I'm going to start 
with you, Mr. Nichols, about El Salvador.
    You and I, we were at the second inaugural for President 
Bukele. We agreed that the guy has done a great job, that he 
has secure and eradicated the roots of violence in El Salvador.
    Now he's starting a second phase to bring prosperity and to 
bring investments--American investments--and to be able to grow 
the economy. But they need international financing. They need 
for the United States to bless them so the international 
banking community opens up and starts giving them loans.
    Are we ready to bless the Bukele administration so they can 
start that second phase and bring prosperity--economic 
prosperity to the country?
    Mr. Nichols. So we very much want to work with the 
government of El Salvador to promote economic growth in the 
country.
    I think among the challenges to increasing the levels of 
foreign direct investment in El Salvador are ensuring that the 
system of rule of law in El Salvador is transparent and gives 
investors equitable treatment and that's something that we want 
to work with this government on, and I know from the 
conversations we had when we were in country at the same time 
that President Bukele is interested in working with us on that.
    Ms. Salazar. Are we interested in working with him?
    Mr. Nichols. Yes. Yes, we had a high level delegation to 
his inauguration and we want to work with his government on 
these issues.
    There are a number of things that we think will improve the 
economic situation in El Salvador. But the United States is not 
the only actor in this space and, obviously----
    Ms. Salazar. But you know it's always the most important 
one because everyone wants American companies to go and set up 
shop and absorb some of the labor force and bring prosperity.
    You know, the Americans--that's why we're in this hearing 
because everyone wants to deal--everyone meaning the Western 
Hemisphere--wants to deal with the Americans, not only American 
government but the American companies. Everything that says 
USA. Do you agree?
    Mr. Nichols. Let me give you a specific example----
    Ms. Salazar. Tell me.
    Mr. Nichols [continuing]. Of a concern that we express, 
which is limitations on the use of cloud servers in the 
financial services sector. So that means that the most secure 
ways of storing financial information are not available to U.S. 
companies or their customers for things like mortgages, for 
example.
    So all that information has to be stored in El Salvador 
under their current laws. Allowing cloud data services would 
allow greater security and would meet the high standards that 
U.S. and other international companies expect.
    So working with the government of El Salvador to change 
that requirement is something that would immediately improve 
the investment environment----
    Ms. Salazar. Well, those are technical details that I am 
sure there's political willingness will be able to be worked 
out. Thank you, Mr. Nichols.
    Now I'm going to ask you, Secretary Valls, could you 
explain to us the new migration policy that was negotiated 
between--negotiated between the Biden administration and the 
new president of Panama, Jose Raul Mulino?
    Why do I say that? Because right now the Darien Gap, which 
is that magic place where everyone has to go through, meaning 
everyone that is not in Central America needs to go through in 
order to get to the United States, we're only talking about 30 
miles and that's why we believe that the influx of people 
coming through the southern border has been reduced so--to the 
present numbers that we have been discussing.
    What did--what was negotiated?
    Ms. Noyes. Thank you, Congresswoman.
    During the inauguration of President Mulino in Panama the 
head of the U.S. delegation, Secretary Mayorkas, signed an MOU 
with the new foreign minister of Panama that would facilitate 
U.S. assistance, technical training, capacity building for 
Panamanian migration officials to assist them in conducting 
repatriation flights for individuals who do not have 
international protection concerns.
    It was an agreement that we had negotiated for several 
months but that satisfied the requirements or the desire to 
repatriate those who didn't have a legal basis for remaining 
but also providing protection concerns to make sure that the 
repatriations didn't include people who had fear of persecution 
or torture when they return.
    Ms. Salazar. No, I understand. But why do you think it was 
negotiated now in 1924? Why couldn't we do that in 1921 or in 
1922?
    Ms. Noyes. The negotiations began earlier and took a while 
to come to conclusion and President Mulino, upon entering into 
office, agreed to sign. So those negotiations had been going on 
for some time before that.
    Ms. Salazar. And are you satisfied with the results--the 
results up to now?
    Ms. Noyes. Yes.
    Ms. Salazar. All right.
    Now, Mr. Camilleri, when I was a news reporter USAID, oh, 
it was the star. Everyone wants to deal--every country in Latin 
America would love to have USAID help and presence and agents 
and staff.
    So it's the pretty face of the United States. It's the 
noble face. It's like the signature agency that takes 
prosperity, hope, our American values.
    So I hold the USAID in high regard. So I want to ask you--
that is our role. We know that we should be investing a lot 
more money, a lot more resources, more people, more of 
everything, because that's like the American flag when it comes 
to nonpolitical and nonmilitary aid.
    Are the Chinese--what are they doing in order to counteract 
what--that noble purpose that USAID has?
    Mr. Camilleri. Thank you, Madam Chair, for the support for 
USAID's work. I think we feel proud of the work we do in the 
region for precisely the reasons that you know so well, having 
spent so much time with the people of Latin America and the 
Caribbean.
    Certainly, the strategic environment in the Americas has 
evolved. We have strategic competitors, the PRC probably 
principal among them, and so now more than ever it is critical 
that we have the resources to invest in the things that USAID 
does so well, working with our other agency partners.
    Ms. Salazar. What are they doing?
    Mr. Camilleri. Well, they're, you know----
    Ms. Salazar. What are they doing that we're not?
    Mr. Camilleri. Their model is different than ours in a 
couple of ways. One is that they burden countries with debt so 
for every $10 that the Chinese bring to the table----
    Ms. Salazar. Nine.
    Mr. Camilleri. --$9 of it is debt and $1 of it is aid. 
We're the reverse.
    Ms. Salazar. You see right there. Look at how noble this 
country is. Out of $10, $9 we give, $1 we lend. They, the 
Chinese, they're communists, obviously. They give--they lend 
$9. That means that you got to pay me back, and $1 is given for 
free.
    Mr. Camilleri. On top of that, the--I think we're seeing 
significant----
    Ms. Salazar. That's a very--that's important for you to 
stress.
    Mr. Camilleri. It's absolutely critical and it's, I think, 
increasingly apparent to our partners in the region why the 
United States should remain the partner of choice, not just 
because we're bringing aid to the table rather than burdening 
countries with debt but the quality of what we bring to the 
table, the values that we imbue our programs with, is 
distinguishing us from what the PRC brings in terms of, you 
know, the corruption often associated with their--with their 
projects--the shoddy infrastructure, the debt burden, as I as I 
mentioned.
    So we think that our----
    Ms. Salazar. What about social programs? Like, I know that 
you have gender identity programs. You have all types of social 
programs to teach English, to learn how to put together a bank 
account, right. To teach the some of the residents of 
Guatemala, let's say, how to open up a business.
    So do they do something similar is what I'm saying. I don't 
know the answer to this.
    Mr. Camilleri. That kind of programming is more what we do 
versus the way we do. The rooted programming in local 
communities, the deep knowledge and dialog with those 
communities in areas like financial literacy, to mention one 
that you mentioned, the values--again, the democratic American 
values that imbue those programs that is a distinguishing 
characteristic of the way the United States does foreign 
assistance and, I would argue, a comparative advantage that we 
have over the PRC.
    Ms. Salazar. Yes, ma'am?
    Ms. Noyes. Chairwoman, if I could just jump in.
    Ms. Salazar. Sure.
    Ms. Noyes. The United States in terms of humanitarian 
assistance we lead with our values and I'd like to give a 
specific example. In 2022 the United States was, as it always 
is, the largest single country donor of humanitarian assistance 
funds in the world.
    In 2022, the last year for which we have statistics for 
China, the United States provided $17 billion in humanitarian 
assistance to save lives, alleviate suffering, provide 
protection to the most vulnerable people.
    In that same period the People's Republic of China provided 
$9 million. So for every $1 provided by the United--by the 
People's Republic of China the United States provided $1,200 in 
humanitarian assistance.
    I think that that shows our partners in the hemisphere who 
really cares about them and who really leads with our values 
and who is really standing by their side.
    Ms. Salazar. Thank you, and I like your phrase ``leading 
with our values.'' Long live the United States. Thank you.
    I yield back. Now I recognize Congressman Schneider from 
the State of Illinois for 5 minutes. Thank you.
    Mr. Schneider. Thank you, Chair Salazar, and let me first 
say thank you. I'm not on this subcommittee but I'm pleased to 
be here and allowing me to join you.
    I appreciate the opportunity to speak about the fiscal 1925 
budget priorities that we are here today to discuss. I was just 
in the region last week. I was in Brazil, Argentina, and 
Guatemala. The trip was an eye opener, reinforcing the critical 
importance of our engagement in Latin America.
    We had the chance to meet with President Milei and 
President Arevalo who both emphasized their appreciation for 
and commitment to a strong United States relationship.
    In Buenos Aires we commemorated the 30th anniversary of the 
AMIA Jewish Center bombing, honoring the victims of this tragic 
terrorist attack that still has not had justice served. The 
solemn event reminded us of the enduring threat of anti-
Semitism and the need for vigilance and justice.
    As many of you know, Hezbollah was responsible for the AMIA 
bombing, highlighting the group's capacity for violence and 
terror beyond the Middle East. This connection is very personal 
to me for I have a long history of working to counter 
Hezbollah's influence, including leading the original Hezbollah 
International Financing Prevention Act.
    Hezbollah's activities including money laundering and drug 
trafficking pose a serious threat not only to regional 
stability in Latin America but to United States national 
security.
    Our experiences on the trip underscore the importance of 
sustained U.S. engagement in Latin America. Specific priorities 
protecting our vital interests include addressing and promoting 
economic opportunities while addressing economic challenges, 
dealing with, as was mentioned earlier, the strategic 
competitors, in particular the PRC, dealing with the effects of 
climate change and the threats of irregular migration and other 
issues are coming from that, and last but not least, dealing 
with crime and terrorist groups in the region.
    We have to address democratic resilience. In Guatemala we 
met with the president. He talked about the efforts they're 
taking. I'd like to touch on that in a second as well.
    Economic development--our ties with Brazil are robust. Two-
way trade is reaching significant levels. Strengthening that 
relationship will benefit both nations, promoting job creation 
and sustainable development.
    Of course, migration management is an issue and I'll come 
back to that in a second, but programs are having effect. In 
Guatemala we talked about the fact that border crossings are 
down by two-thirds since 2021.
    And last, enhancing our efforts to counter Hezbollah's 
influence in the Americas is crucial.
    In conclusion, our engagement in Latin America is not just 
a matter of foreign policy. It's about building a more secure, 
prosperous, and democratic hemisphere and that's what the 2025 
budget request is all about and a step in the right direction.
    So let me start with Acting Assistant Administrator 
Camilleri. How is USAID addressing the root causes of migration 
from Central America, particularly in Guatemala?
    As I mentioned, we have seen a two-thirds decrease, other 
positive steps. But what should we be looking for?
    Mr. Camilleri. Thank you, Congressman.
    We have seen under the root causes strategy, which was 
launched in 2021, a new level of attention and resources 
committed to addressing those root causes of migration from 
Central America.
    We have now invested almost $3 billion in that strategy as 
well as mobilizing the private sector, as Assistant Secretary 
Nichols mentioned, to the tune of $5.2 billion in additional 
investment, 50 companies investing to create jobs in the 
region.
    So just to give you some examples of the impact of this 
work under the root causes strategy, in a single year USAID 
helped to create or sustain 90,000 jobs.
    We reached nearly half a million youth through support for 
primary and secondary education. We kept 175,000 children from 
growing hungry in the region through our nutrition 
interventions.
    The question, obviously, that we often get is what impact 
is this work, which is having tangible, meaningful effects on 
local communities and families, what impact is it having on 
migration, and there as you alluded to I think increasingly we 
have evidence that we are having an impact.
    We know, for example, that our workforce development 
interventions in El Salvador showed a 13 percent decrease in 
intentions to migrate. We know that in Honduras our education 
interventions kept kids in school and that those higher 
retention rates are associated with lower irregular migration 
rates.
    And more broadly speaking, as you mentioned we have seen 
since the launch of the root strategy--root causes strategy to 
today a two-thirds decline in border encounters from the 
countries of Northern and Central America.
    So when we think about the budget environment we're in and 
we hear some of the discussion about potentially significant 
cuts to USAID's budget for the region we know what that means.
    That means, you know, fewer kids in school. It means more 
kids going hungry. It means fewer jobs created. It means fewer 
women and girls protected from gender-based violence.
    More broadly in the region, you know, less support for 
public officials and civil society and journalists who are 
combating corruption and human rights violations.
    Coastal communities that are more vulnerable to storms and 
climate change, so not to mention our--you know, the space for 
transactional criminal organizations and our strategic 
competitors in the region.
    So this is tangible. This is real. This really, you know, 
puts on the table the progress that I think we have made over 
the last few years under the root causes strategy and more 
broadly in the region and would just encourage those of you who 
have the opportunity to consider these questions to think, you 
know, carefully about the impact that we have had so far, the 
impact we can continue to have appropriately resourced.
    Mr. Schneider. Great. I'm over time. If I had more time, 
Assistant Secretary Nichols, I would love to talk more another 
time about efforts to support work in the region to address 
corruption like what we were hearing in Guatemala with great 
success.
    With that, I yield back.
    Ms. Salazar. Thank you, Congressman, for your 
participation.
    Now I recognize Congressman Self from Texas for the next 5 
minutes.
    Mr. Self. Thank you, Madam Chair.
    Given the background of repression against matters of 
conscience, faith, the church in Nicaragua, I want to ask you--
and I was also struck with your comment about lead with our 
values.
    One of our--in fact, it's in the First Amendment, religious 
freedom. We have both the establishment clause and the free 
expression clause in our First Amendment.
    So and please don't wander into humanitarian, education, 
migration issues. I want to know about the Biden 
administration's support for religious freedom--matters of 
conscience, matters of faith.
    Does the Biden administration support religious liberty in 
the Western Hemisphere and I want to hear specifics about how 
they are supporting.
    And, again, I ask you not to wander into humanitarian, 
education, or migration issues. I want to hear specifics about 
the religious freedom because that is one of our leading 
values.
    So what is the Biden administration doing to support 
religious freedom in the Western Hemisphere?
    Mr. Nichols. Thank you very much.
    The Biden administration has been focused on a country that 
has--Nicaragua that has deeply abused people of faith, going 
after Mountain Gateway missionaries, for example, and jailing 
them.
    Mr. Self. What does focused on it mean? What are they 
doing?
    Mr. Nichols. We have repeatedly raised the unfair jailing 
and abuse of both evangelical and Catholic religious figures in 
Nicaragua with the Ortega-Murillo regime. We continue to 
advocate for the release of all prisoners of conscience in 
Nicaragua.
    Mr. Self. Can you provide me the proof of that? Do you have 
letters that you could give me? I would--I would like to see 
the specifics of what you've been doing rather than just a 
meeting date.
    Mr. Nichols. I'll have to consult with my colleagues in the 
department about providing any specific documentation.
    Mr. Self. Yes, please.
    Mr. Nichols. But I will absolutely stress that we have 
raised this on numerous occasions and we did secure the release 
of a number of political prisoners--222--at one time in----
    Mr. Self. Were these prisoners of faith or were they 
political prisoners of a different political party? Because, 
again, please don't--please refrain your remarks to religious 
liberty.
    Mr. Nichols. So that was a broad spectrum of prisoners 
including people of faith. One of the other things I'm very 
proud of that we have done in the Western Hemisphere is to work 
to combat anti-Semitism in our hemisphere.
    I issued a region wide policy on combating anti-Semitism 
and directed each of our Ambassadors in the field to develop 
their own anti-Semitism policies and work hand in hand with 
Ambassador Lipstadt, and we have persuaded numerous countries 
in the hemisphere, most recently Paraguay and Guatemala, to 
name special envoys to combat anti-Semitism and they signed a 
joint statement at the anniversary of the AMIA bombing.
    Mr. Self. And I appreciate that, Mr. Nichols. That is 
combating anti-Semitism.
    What I'm asking about is religious freedom for the citizens 
of the Western Hemisphere. It is related but it is not exactly 
anti-Semitism. You're combating anti-Semitism. I want to know 
what you're doing to support religious liberty. That's my 
question.
    Mr. Nichols. So we, the State Department as a whole, 
reports on international religious freedom in every country 
around the world. We raise the issues of freedom of religion 
with governments wherever we are present. We seek out 
information.
    When there are cases where people of faith or people who 
choose not to practice a faith are persecuted we raise that 
with the host governments.
    Mr. Self. Okay. I would like to know if you've got any 
documentation if you would followup on when you have actually 
done it. We can talk generalities all day long. That doesn't 
answer specifics. I would appreciate it.
    With that, I yield back, Madam Chair.
    Ms. Salazar. Thank you, Congressman Self, and I thank the 
witnesses for their valuable testimony and the members for 
their questions.
    The members of the subcommittee may have some additional 
questions for the witnesses and we will ask you to respond to 
those in writing.
    Pursuant to committee rules, all members may have 5 days to 
submit statements, questions, and other materials for the 
record subject to the length limitations.
    Without objection, the committee stands adjourned.
    [Whereupon, at 12:08 p.m., the committee was adjourned.]


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