[Senate Hearing 118-603]
[From the U.S. Government Publishing Office]
S. Hrg. 118-603
STATE, FOREIGN OPERATIONS, AND RELATED
PROGRAMS APPROPRIATIONS FOR FISCAL
YEAR 2025
=======================================================================
HEARINGS
BEFORE A
SUBCOMMITTEE OF THE
COMMITTEE ON APPROPRIATIONS
UNITED STATES SENATE
ONE HUNDRED EIGHTEENTH CONGRESS
SECOND SESSION
on
H.R. 8771/S. 4797
AN ACT MAKING APPROPRIATIONS FOR THE DEPARTMENT OF STATE,
FOREIGN OPERATIONS, AND RELATED PROGRAMS FOR THE FISCAL
YEAR ENDING SEPTEMBER 30, 2025, AND FOR OTHER PURPOSES
__________
Nondepartmental Witnesses
Strengthening American Competitiveness: Examining the Roles of the U.S.
International Development Finance Corporation, Export-Import Bank of
the United States, and Millennium Challenge Corporation
United States Agency For International Development
United States Department of State
__________
Printed for the use of the Committee on Appropriations
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]
Available via the World Wide Web: http://www.govinfo.gov
__________
U.S. GOVERNMENT PUBLISHING OFFICE
55-317 PDF WASHINGTON : 2025
-----------------------------------------------------------------------------------
COMMITTEE ON APPROPRIATIONS
PATTY MURRAY, Washington, Chair
DIANNE FEINSTEIN, California \1\ SUSAN M. COLLINS, Maine, Vice
RICHARD J. DURBIN, Illinois Chair
JACK REED, Rhode Island MITCH McCONNELL, Kentucky
JON TESTER, Montana LISA MURKOWSKI, Alaska
JEANNE SHAHEEN, New Hampshire LINDSEY GRAHAM, South Carolina
JEFF MERKLEY, Oregon JERRY MORAN, Kansas
CHRISTOPHER A. COONS, Delaware JOHN HOEVEN, North Dakota
BRIAN SCHATZ, Hawaii JOHN BOOZMAN, Arkansas
TAMMY BALDWIN, Wisconsin SHELLEY MOORE CAPITO, West
CHRISTOPHER MURPHY, Connecticut Virginia
JOE MANCHIN, III, West Virginia JOHN KENNEDY, Louisiana
CHRIS VAN HOLLEN, Maryland CINDY HYDE-SMITH, Mississippi
MARTIN HEINRICH, New Mexico BILL HAGERTY, Tennessee
GARY PETERS, Michigan KATIE BRITT, Alabama
KYRSTEN SINEMA, Arizona \2\ MARCO RUBIO, Florida
DEB FISCHER, Nebraska
Evan Schatz, Staff Director
Elizabeth McDonnell, Minority Staff Director
------
Subcommittee on State, Foreign Operations, and Related Programs
CHRISTOPHER A. COONS, Delaware, Chairman
RICHARD J. DURBIN, Illinois LINDSEY GRAHAM, South Carolina,
JEANNE SHAHEEN, New Hampshire Ranking Member
JEFF MERKLEY, Oregon MITCH McCONNELL, Kentucky
CHRISTOPHER MURPHY, Connecticut JOHN BOOZMAN, Arkansas
CHRIS VAN HOLLEN, Maryland JERRY MORAN, Kansas
BRIAN SCHATZ, Hawaii MARCO RUBIO, Florida
BILL HAGERTY, Tennessee
Professional Staff
Alex Carnes
Kali Farahmand
Sarita Vanka
Drew Platt
Paul Grove (Minority)
Katherine Bowles (Minority)
Adam Yezerski (Minority)
Administrative Support
LaShawnda Smith (Minority)
\1\ Died September 29, 2023.
\2\ Appointed to Committee October 18, 2023.
\3\ Appointed to Subcommittee November 2, 2023.
C O N T E N T S
----------
hearings
Tuesday, April 9, 2024
Page
United States Agency for International Development............... 1
Wednesday, May 15, 2024
Strengthening American Competitiveness: Examining the Roles of
the U.S. International Development Finance Corporation, Export-
Import Bank of the United States, and Millennium Challenge
Corporation.................................................... 43
Tuesday, May 21, 2024
United States Department of State................................ 101
----------
back matter
List of Witnesses, Communications, and Prepared Statements....... 287
Nondepartmental Witnesses........................................ 151
Subject Index:
Strengthening American Competitiveness: Examining the Roles
of the U.S. International Development Finance Corporation,
Export-Import Bank of the United States, and Millennium
Challenge Corporation...................................... 289
United States Agency for International Development........... 289
U.S. Department of State..................................... 289
STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR
FISCAL YEAR 2025
----------
TUESDAY, APRIL 9, 2024
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 2:31 p.m., in room SD-138, Dirksen
Senate Office Building, Hon. Christopher A. Coons (Chairman),
presiding.
Present: Senators Coons, Murray, Durbin, Merkley, Murphy,
Van Hollen, Graham, and Moran.
UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
opening statement of senator christopher a. coons
Senator Coons. I would like to call the State and Foreign
Operations and Related Programs
Subcommittee of the Appropriations Committee of the United
States Senate to order.
We meet today to review the fiscal year 2025 budget request
for the United States Agency for International Development.
I am delighted to welcome back Administrator Samantha
Power. You are a few short weeks away from your third
anniversary as USAID Administrator, making you the longest-
serving AID Administrator since Raj Shah in the past decade,
and I just, upfront, wanted to thank you and all the people of
USAID around the world.
You have been tireless. You have traveled the world. You
have advocated for change. You have been someone who has
applied your values, your capabilities, and your leadership to
an exceptionally difficult time, and I am grateful for your
service. We look forward to hearing your perspectives on the
challenges facing AID as well, as the opportunities.
I also solicited testimony from the Inspector General, Paul
Martin, given his critical role. And each Senator has in front
of them his submission which is part of the formal record.
This is this subcommittee's first fiscal year 2025 hearing
for funding, and we have a great deal to cover. I first briefly
want to reflect on fiscal year 2024. Our fiscal year 2024 bill
for State, USAID, MCC, DFC, and other related agencies, was
ultimately $58.3 billion, a 5.5 percent cut from the fiscal
year 2023 appropriated level.
In managing that cut, we made some hard decisions, limiting
the impact on workforce, trying to make sure that the people
who are at the very core of what you do were prioritized,
meeting our treaty dues and multilateral commitments to
demonstrate that we are a reliable global partner, and
protecting funding for life-saving health programs and
humanitarian assistance. That meant that funding had to be cut
from other critical efforts. Those cuts will have real impacts,
and we had to make hard choices.
I have just returned from a CODEL led by Chair Murray to
Angola, Botswana, Cabo Verde, Malawi, and Zambia, and we got to
see firsthand the increasing needs due to food insecurity, the
importance of investing in women and girls, the challenges and
opportunities associated with strategic competition on the
continent. It is critical that while we pursue new
opportunities to promote our national security like investing
in diversified and secure supply chains and competing for
critical minerals, that we also ensure that those efforts
actually benefit local communities and our national partners.
This is what makes our development model different from some of
our principal competitors.
African countries also offer growing export markets for
American companies. This is not principally about charity but
about helping our partner countries address the challenges they
face in a way that also presents opportunities for Americans.
Now, that means we have to maintain our investments in economic
growth and development, not just emergency responses, and to
strategically build resilient systems including in agriculture
to address food security.
So while we can't do more with less, we have to continue
refining our priorities and making the most of every
appropriated dollar. That is why in the fiscal year 2024 Bill,
we increased investments in agricultural R&D, we required more
Feed the Future funds to be focused in target countries, and
added a new directive for leveraging Feed the Future to
catalyze private sector investment.
Senator Graham and I are also working hard to authorize a
new Food Security Foundation to leverage public sector funding
in a way that would complement ongoing U.S. investments.
This is also why we worked to enact the Economic Resilience
Initiative that will provide $265 million in resources, across
the interagency to support economic growth and stability in
partner countries, including funding for strategic
infrastructure projects through EXIM and DFC, enhancing
critical supply chains and digital infrastructure, supporting
the Economic Resilience Programs of USAID, and supporting new
grants and loans to international financial institutions that
provide access to capital for countries that, otherwise, would
have to rely on the PRC's coercive model of lending.
I am proud those efforts have moved forward as we seek to
better leverage the private sector and to use our limited
dollars. It is important we pursue these efforts while not
undercutting traditional development. I want to discuss reforms
that we can and should make to development, and we have to
recognize the critical role that our development has played in
our global leadership.
That brings us to this year, to fiscal year 2025. The
request for staff and programs across State, AID, MCC, DFC, and
others, is $62.4 billion, that is 7 percent above the 2024
enacted but only a 1 percent increase if you refer back to the
2023 level. Last year we spoke in your hearing about the
challenges AID faces, historic levels of food insecurity, a
record number of refugees and displaced people, Democratic
backsliding, Chinese economic coercion, Russian aggression in
Ukraine, these and many other challenges persist and in some
places have worsened. But you will have less to work with than
you did even last year.
Many of my colleagues and I are deeply concerned about the
humanitarian catastrophe in Gaza where many who are surviving
the violence are facing famine, and tonight as Eid al-Fitr is
celebrated in Muslim families, again, that celebration it is a
particularly painful reality that they are on the verge of
famine.
In Sudan, there is another devastating conflict which is
inflicting an inconceivable toll on civilians, millions of
dislocated civilians. In our own hemisphere, the people of
Haiti are being terrorized by armed gangs and a lack of
governance.
All of this in combination, and more, is why the House
needs to enact the Supplemental that we passed in the Senate
that includes $9 billion for humanitarian assistance, and
additional funds for Taiwan, for Ukraine, and other partners.
Today is the start of a conversation about how we build a
2025 Appropriations Bill that accounts for the reduced funding
you received and the new challenges you face. I am proud of the
work we have done on this subcommittee on a bipartisan basis to
help you grow and better equip your workforce, apply lessons
learned from your predecessors, adapt to locally led
development and cooperation with the private sector. But we
have more work to do.
I look forward to hearing from you about your proposals
about how we can best leverage our development tools, how we
define our interests, where USAID fits in, and what you are
doing to tell the story globally and to the American people
about your leadership.
Thank you, Madam Administrator, and I look forward to your
testimony.
Senator Graham.
opening statement of senator lindsey graham
Senator Graham. Thank you, Mr. Chairman. I really enjoy
working with you and my Democratic and Republican colleagues on
the Committee.
I have never seen this many problems in the world at the
same time. Now, I wasn't around in World War II, I can only
imagine how it must have been then, but everywhere you look,
Mr. Chairman, it is just people moving around, war, famine,
rumors of war. So it seems to me that America needs to
understand not only the role we play in the world, but the role
this Committee and this budget plays in making us safe.
I am a pretty hawkish guy, but you are not going to kill
your way out of all these problems. You are not going to fight
your way out all these problems. Like food security, I am
working with you on conservation programs to protect land and
help communities. Protecting nature is good economic
investment. It is actually good for the people, and creates
jobs.
On food security, the World Food Program is under siege.
The number of people needing assistance on the food front has
doubled in 2 years with no end in sight, so starving people,
people with no hope left unattended are the terrorists'
recruiting opportunity. And pay now or pay later is the way I
look at it.
We are having our budget cut at a time of the greatest need
that I have seen. That is why I voted against this budget deal.
On the Military side, everybody talks about we need a bigger
Navy. Well, the budget we just agreed to is going to give us
fewer ships in the next decade, not more, as China is building
through the roof in this account.
You know, the ability for USAID under your leadership, Ms.
Power, is going to be more challenging. I do appreciate what
you do, and to the people under you that work throughout the
world, you are in danger every day. We rightly praise our
Military and other groups, but USAID workers, State Department
folks out on the tip of the spear, they deserve our respect,
and support, and admiration. So I don't know how this gets
better until we come up with some kind of strategy with our
partners to get ahead of it.
I will end where I began: You either pay now or you will
pay later.
Senator Coons. Thank you, Senator Graham. And thank you and
your staff for your great partnership. We have genuinely
enjoyed working together on this subcommittee, and it is an
island of productivity and positivity in an otherwise
challenging institution. And that applies across the
subcommittee, but you, in particular, have been a great
partner.
Madam Administrator.
STATEMENT OF HON. SAMANTHA POWER, ADMINISTRATOR, UNITED
STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
Ms. Power. Thank you so much, Mr. Chairman, Ranking Member
Graham, and thanks to the other distinguished Members of the
Committee, grateful for your comments, but above all, grateful
for your leadership.
And you are right in crediting USAID's teams for the
sacrifices, and the work that they do all around the world. I
would also just thank your teams. This budget process is not
easy, because so many of us here believe in everything we do
and recognize that everything is connected to everything else.
It is very hard in an environment of cuts to find places to
cut, and the collaboration that we have in thinking these
problems through together has been absolutely pivotal. So,
thanks really to the people, to you here, and to those who sit
behind you.
I want to start just by reflecting, and really speaking to,
I think, Senator Graham's comments, by reflecting on the lobby
of the Republic of Korea's Development Agency, which is their
equivalent of USAID. They actually display an old bag of flour
from the 1940s, which is marked with the words ``From the
American People'', which of course is USAID's motto today. But
this is a reminder of how the United States showed up,
supported them when they were one of the poorest countries on
the planet, to fight hunger, and disease, and to kick-start a
journey of remarkable economic growth.
Today, of course, South Korea is one of the world's richest
countries, and last year spent nearly $4 billion--and this is
the critical point- providing assistance to other countries.
And while a lot of countries are experiencing cuts at a time
when we can least afford it, I will say this coming year, Korea
plans to go up from $4 billion to $5 billion in assistance to
other countries.
The decades that the United States has invested in
supporting countries chart their own paths of development has,
in fact, notwithstanding today's problems, brought
extraordinary results, and not only for our partners, but also
for our own people. We have helped stop the spread of diseases
that threaten us all, and developed more resilient and high-
yield crops that can feed growing populations.
We have helped people and nations rise up from poverty and
in doing so invested billions in American small businesses and
opened up new markets for American products. And this is the
really important fact: eight of our top ten trading partners
today were once recipients of U.S. assistance.
Under President Biden's leadership, and in partnership with
this Committee, we are building on this legacy. In Ukraine,
such a vivid example, USAID has helped Ukrainian farmers
withstand Putin's attempts to destroy the agricultural sector.
We have done this, thanks to you all, by getting them the
seeds, the equipment, and initially the alternative export
routes that they needed. This has remarkably helped Ukraine
rebound their grain exports to very close to pre-war export
levels. That is just extraordinary when you think of the
systematic bombardment of the agricultural infrastructure by
Putin's Forces.
This, in turn, because everything is connected to
everything else, has helped bring global food prices down 26
percent from their 2022 peak.
In Nigeria, we are providing community health workers with
technologies to spot diseases like tuberculosis early, which
helped increase TB diagnoses by a third in a single year. This
allows patients to get treatment so that outbreaks don't spread
across the planet. Across Africa, we are working to connect
African and American companies and reduce barriers to trade
through the Prosper Africa initiative. Efforts that since 2019
have generated some $86 billion in trade and investment, that
builds prosperity again both for our African partners and for
businesses here at home.
Bipartisan support for these efforts make Americans safer
and more prosperous and provides a critical foundation for U.S.
leadership and influence in a world where other global powers
are working aggressively to erode U.S. alliances, undermine
democracy, and diminish basic rights and freedoms.
For example, the PRC's global lending spree has made it the
world's largest debt collector. For every dollar of aid that
the PRC provides to low-income and middle-income countries,
China has provided $9 of debt, so $1 of aid, $9 of debt. The
opposite is true here in the United States, for every dollar of
debt we provide, we provide at least $9 of aid.
The PRC's assistance tends to be negotiated behind closed
doors, fueling corruption, and can demonstrate a flagrant
disregard for human rights. One chilling example, of course, is
the PRC's Safe Cities Initiative, which provides surveillance
and facial recognition technology that can monitor critics,
journalists, and activists. And that technology has been given
to 80 countries so far, at least.
We need U.S. leadership to advance models of development
and governance that honor freedom, transparency, human dignity,
and opportunity for all, which in turn will be more
stabilizing.
The Biden-Harris Administration's fiscal year 2025 request
of $28.3 billion for USAID's fully and partially managed
accounts would give us the resources to continue that
leadership. With these funds, we will help nations around the
world strengthen food security, improve health, and drive
economic growth.
We will respond to what have already been described as
historic levels of humanitarian need. USAID teams have been
working day and night to address the catastrophic humanitarian
crisis in Gaza, where nearly the entire population is living
under the threat of famine.
Add to that, ongoing crisis in Ukraine, Sudan, and beyond,
and continued battering from a growing number of natural
disasters, and the number of people requiring humanitarian
assistance has increased by nearly a third, from 274 million in
2022 to 363 million at the end of 2023. I mean, if you think
about that time margin, and the number of people with new
needs, it is breathtaking.
To meet these needs, and this is really something that I
think we all must stress, we will need both the $10 billion in
humanitarian assistance in this budget request, as well as the
$10 billion in emergency humanitarian assistance in the pending
National Security Supplemental request. Otherwise, we will be
forced to make draconian cuts to rations in support all around
the world.
I want to be clear that the fiscal year 2025 request
recognizes the need for tradeoffs. Crucially, this budget gives
us specific resources to help us deliver even better value for
money. We inaugurated, as many of you know, a new Office of the
Chief Economist just last July, and the team is already
expanding our use of rigorous analysis across the Agency to
identify best buys, the programs with the highest impact per
dollar invested, so that they can be scaled.
They identified, for example, a poverty reduction program
in our Bureau of Humanitarian Assistance, which is being
piloted in Uganda, which is offering a sequence set of supports
like trainings and financial services that help refugees move
from requiring humanitarian assistance to earning livelihoods
for themselves.
For every dollar we invest there, households are seeing
over four times the return in economic benefits. And we are now
taking that program on the road to other nations.
I am going to wrap up here just in a minute.
Beyond maximizing our own resources through efforts like
that of the Chief Economist, we are drawing in new partners
through tools like the new EDGE Fund. And here I just want to
thank you for supporting that fund. It is an innovation, it
meets this moment, and we need to scale it. This is an
incentive fund designed to apply the private sector's unique
comparative advantages to some of the largest global
development challenges.
We are working with companies like Citibank, Walmart, and
Johnson & Johnson to boost our impact. And I want to be clear
that from fiscal year 2021 to fiscal year 2023, private sector
partner contributions to USAID activities jumped by over 60
percent. And this is something we need to make more broadly
known so people understand how we are trying to leverage
taxpayer dollars so that they go further. We also recognize
that the future of development in so many countries is going to
be driven by the private sector.
If we make these investments, we really can catalyze
change. And I have no doubt that we can continue America's
extraordinary legacy of leadership in building a more secure,
prosperous, and stable world for us all.
Thank you.
[The statement follows:]
Prepared Statement of Administrator Samantha Power, Administrator,
United States Agency for International Development
Thank you Chairman Coons, Ranking Member Graham, and other
distinguished members of the Committee.
In the lobby of the Republic of Korea's development agency--their
equivalent of USAID--they display an old bag of flour from the 1940s,
marked with the words: ``From the American People.'' It's a reminder of
how the U.S. supported them when they were one of the poorest countries
on the planet to fight hunger and disease and kickstart economic
growth. Today, of course, South Korea is one of the world's richest
nations--and last year spent nearly four billion dollars providing aid
to other nations. This year they plan to spend nearly five billion.
The decades that the United States has supported countries in
charting their own paths of development have brought extraordinary
results--for our partners and for our own people. We've helped stop the
spread of diseases that threaten us all and develop more resilient,
high-yield crops that can feed growing populations. We've helped people
and nations rise from poverty, and in doing so invested billions in
American small businesses and opened up new markets for American
products; eight of our top ten trading partners were once recipients of
U.S. assistance.
Under President Biden's leadership and in partnership with this
Committee, we are building on that remarkable legacy. In Ukraine, for
example, USAID has helped farmers withstand Putin's attempts to destroy
the agricultural sector by getting them the seeds, equipment, and
alternative export routes they need--efforts that have helped Ukraine
rebound their grain exports to near pre-war levels and helped bring
global food prices down 26 percent from their 2022 peak. In Nigeria,
we're providing community health workers with technologies to spot
diseases like tuberculosis early, which helped increase TB diagnoses by
a third in a single year--so patients can get treatment and outbreaks
won't spread across the planet. Across the African Continent, we are
working to connect African and American companies and reduce barriers
to trade through the Prosper Africa Initiative--efforts that since 2019
have generated some $86 billion in trade and investment that builds
prosperity for both our African partners and businesses here at home.
Bipartisan support for these efforts makes Americans safer and more
prosperous--and provides a critical foundation for American influence
and leadership in a world where other global powers are working
aggressively to erode U.S. alliances, undermine democracy, and diminish
basic rights and freedoms.
For example, the PRC's global lending spree has made it the world's
largest debt collector. For every dollar of aid it provides to low-
income and middle-income countries, China has provided $9 of debt,
while the opposite is true of the U.S.: for every dollar of debt we
provide, we provide at least $9 of aid. The PRC's assistance tends to
be negotiated behind closed doors, fueling corruption, and can
demonstrate a flagrant disregard for human rights. To offer one
chilling example, through the PRC's efforts to help countries build so-
called ``Safe Cities,'' they have provided surveillance and facial
recognition technology that can monitor critics, journalists, and
activists to at least 80 countries.
We need American leadership to advance models of development and
governance that honor freedom, transparency, human dignity, and
opportunity for all.
The Biden-Harris Administration's FY 2025 request of $28.3 billion
for USAID's fully- and partially-managed accounts give us the resources
to continue that leadership.
With these funds, we will help nations around the world strengthen
food security, improve health, and drive economic growth. And we will
respond to historic levels of humanitarian need. USAID teams have been
working day and night to address the catastrophic humanitarian crisis
in Gaza, where nearly the entire population is living under the threat
of famine. Add to that ongoing crises in Ukraine, Sudan, and beyond,
and continued battering from a growing number of natural disasters
during this particularly strong El Nino, and the number of people
requiring humanitarian assistance has increased by nearly a third--from
274 million in 2022 to 363 million at the end of 2023. To meet these
needs, we will need both the $10 billion in this budget as well as the
$10 billion in emergency humanitarian assistance in the pending
national security supplemental request. Otherwise, we will be forced to
make draconian cuts to rations all around the world.
The FY 2025 Request recognizes the need for tradeoffs even as
global needs are escalating. And crucially, this budget gives us
specific resources to help us deliver even better value for money.
Since we inaugurated our new Office of the Chief Economist last July,
the team is already expanding our use of rigorous data analysis across
the agency to identify the programs with the highest impact per dollar
invested so they can be scaled. For instance, they identified a poverty
reduction program our Bureau of Humanitarian Assistance is piloting in
Uganda, which is offering a sequenced set of supports like trainings
and financial services that help refugees move from requiring
humanitarian assistance to earning sustainable livelihoods for
themselves. For every dollar we invest, households are seeing over four
times the return in economic benefits. We are now expanding the program
to other nations.
And beyond maximizing our own resources, we are drawing in new
partners through tools like our EDGE Fund--an incentive fund designed
to apply the private sector's unique edge to some of the largest global
development challenges. We're working with companies like Citibank,
Walmart, and Johnson & Johnson to boost our impact and drive progress
beyond our programs. From FY 2021 to FY 2022 alone, private-sector
partner contributions to USAID activities jumped by 31 percent. To
continue to drive this progress, we need to keep investing in a
workforce that's nimble and empowered to pursue truly catalytic change.
If we do make these investments, I have no doubt that we can
continue America's extraordinary legacy of leadership in building a
more secure, prosperous, and stable world for all.
Senator Coons. Thank you, Madame Administrator.
To my colleagues, we are going to do seven-minute rounds. I
am expecting that there is a lot to dig into here. Anyone who
uses less than their 7 minutes gets a prize.
Let me start by just asking about what you were just
describing. The importance of leveraging private sector
partnerships, and making our dollars go farther, in last year's
budget hearing, we talked about the need to increase locally
led development efforts and engaging with the private sector.
Senator Ernst and I just introduced the locally led
Development and Humanitarian Response Act, which aims to
advance those same goals. Senator Graham and I are making
progress advancing bills to create public-private foundations
focused not on supplanting USAID's work but on complementing
it, leveraging philanthropic and private sector dollars.
With the limited time we have, even with 7 minutes, what
have you found to be the biggest challenge in increasing
locally led development; how are you addressing it? And how are
you best working to leverage funds from the private sector?
Where are you seeing your biggest success?
Ms. Power. Thank you so much. In brief, I would say doing
smaller grants, contracts, requires more people. Fundamentally,
it can be the same amount of work to do a $100 million contract
as to do, you know, a small grant to an organization combating
sexual trafficking, or doing job training that will--that local
organization will have a better chance probably of seeing those
gains sustained over time because fundamentally they are of the
community, they will remain in the community, even when the
grant dries up.
So we have tried to expand the number of contracting
officers at USAID. We are appreciative of you trying to protect
our operational expenses in this recent budget process. To give
some sense of how much we are spending, and how our program
budget has gone up because of the messiness of the world that
you both described, we basically have programmatic dollars that
have gone up 68 percent over recent years and operational
expenses that have gone up 27 percent.
So even with you protecting our operational expenses, we
are still seeing a 3 percent cut in the fiscal year 2024, which
is better compared to the other cuts that we will be seeing.
But that is a big issue as we seek, again, to invest the staff
time in working with local organizations and smaller
organizations.
We again seek to address the issue of growing our
contracting officer workforce, including by empowering our
local staff who can do a lot of work in that domain. It's also
just famously hard to work with USAID. We have a lot of
compliance requirements, many of which are imposed by folks up
here, but many of which we would embrace ourselves in order to
be sure that we are faithful stewards of the resources invested
in the Agency. And so we have tried to simplify the application
process so it doesn't crowd out, by definition, those who don't
have the lawyers, the accountants, you know, the armies of
people to be able to comply.
Senator Coons. I am deeply concerned about the crisis in
Gaza, as well as many other places, but that is one that seized
a lot of our attention. The prohibition on funding UNRWA is
going to make this harder and worse, and I think too little has
been done to address the impediments to delivering aid, to aid
distribution.
It has also consumed a fair amount of media attention. I
would be interested in both what USAID is doing to get other
donors to increase their contributions because many of our
partner countries have not stepped up to this challenge, and
what are you doing to address the challenges of distribution of
aid in difficult and contested spaces?
Gaza is probably at the foremost of news coverage, but
frankly Sudan is also incredibly difficult and dangerous, so is
Haiti, so is Somalia, so is Afghanistan.
Ms. Power. Thank you. So just a quick word on UNRWA, which
as you know is funded by the State Department, and not by
USAID, but is the humanitarian backbone for the work that all
of our partners are doing on the ground in Gaza. The
allegations against UNRWA staff are outrageous, horrific, and
we, like everyone, are awaiting the results of the
investigation including the independent investigation about
reviewing procedures and processes so that something like that
could never happen again where staff, potentially involved in
horrors like October 7, would be able to work for humanitarian
agencies.
So at the same time that goes forward UNRWA hasn't stopped
doing the work, and as you know many, many UNRWA staff members
who had been, before October 7, involved in providing
education, or health care, or food distribution to people
living in Gaza now have just turned to doing humanitarian
delivery full-time. And there is tremendous risk, as the
killing of more than 228 workers in IDF military operations
attest.
So you have seen countries, after initial pauses as they
waited to make sure that credible investigations were going to
be underway, unpause their funding. We are not one of them,
obviously, but we do believe that this is another reason to
press for the passage of the National Security Supplemental,
because just--and this gets to your second question too about
all the other places that are broken and in need of
humanitarian assistance, you know we are looking at a situation
now if all we have to rely on, which is our current situation,
is the fiscal year 2024 base humanitarian assistance that you
provided to us, and again you made a special effort to protect
as much of that as you could despite the cuts overall.
But you are looking at an increase of about close to 40
percent in humanitarian needs from last year to this year, and
a drop in resources of about 40 percent, between 35 and 40
percent. So that delta is staggering, and will be staggering in
its effects, and horrifying in its effects on the ground.
I mentioned that in the context of Gaza, because access is
key, access has improved in the last few days in fairly
substantial ways, it needs to improve much more, but we also
need to have the resources to fund those other organizations
even as other countries step up to continue to support the
backbone.
Senator Coons. I have more questions, but I will stop early
and defer to my colleague.
Senator Graham. Thank you. Let us just continue to talk
about Gaza, and the future. Let us assume for a moment we can
find some conclusion to this war, and somebody will take over
the Palestinian file, maybe Saudi Arabia or the UAE. I don't
know. But somebody needs to come in, and try to clean things up
a bit. Is there a plan to replace UNRWA in the West Bank and
Gaza?
Ms. Power. Not to my knowledge.
Senator Graham. Okay. So I think Israel is going to be
pretty hard over on trusting this organization after all the
abuses that we discovered. So I would encourage you, and I know
you got a lot to do, to think about: How could we do this?
So when it comes to providing assistance to folks in Gaza,
how do the Gulf Arab states, are they contributing anything?
Ms. Power. Yes. And absolutely I think you have seen,
particularly, Emirati leadership, they have been critical in
leading also for alternative routes into Gaza, helping
spearhead the effort to do maritime deliveries, indeed
partnering with the World Central Kitchen, which suffered the
horrific attack last week.
So, I think the Emiratis have definitely stepped up. I
think they and other Arab nations, and you know this far better
than I, so I won't speak to it for too long but, you know, are
very adamant about linking their longer term investments to a
viable path to a two state solution----
Senator Graham. Let us assume for a moment, that Hamas will
be destroyed, which I hope and pray it does, who is going to
take over Gaza, do we have any idea?
Ms. Power. As USAID Administrator, again my focus is on the
humanitarian operations----
Senator Graham. The only reason I mention is----
Ms. Power [continuing]. And feeding people.
Senator Graham [continuing]. Before you invest a lot money
we need a whole lot of things, like who is going to be on the
ground when the Hamas is gone? Can we trust them? What kind of
partners we will have? So that is important to me. I would like
to be an investor but I want to know what I am investing in.
How would you describe the situation in Gaza? Is it--you are
saying near famine? How would you describe that?
Ms. Power. Well, I think, as you know well, the IPC Report
indicates that famine conditions are already present in
Northern Gaza and looming for----
Senator Graham. How many trucks----
Ms. Power [continuing]. For much of the south.
Senator Graham. Do you know how many trucks are allowed in
to Gaza in terms of food delivery?
Ms. Power. Well, we have had sort of our best 48 hours
since the beginning of the war, so I think more than 400 trucks
today, more than 300 yesterday, that is after a very----
Senator Graham. And before that around 200, I think, right?
Ms. Power. Pardon me.
Senator Graham. Before this, it was around 200.
Ms. Power. Yes, and some days, yes, under 100. And to be
clear, when we talk about trucks, sometimes we blur a lot of
things together. Before the war, as you well know, there were
500 trucks getting in.
Senator Graham. Right.
Ms. Power. When we talk about trucks, that is not all food.
Senator Graham. Right.
Ms. Power. In fact, a very small percentage of what goes
in, relatively speaking, is food. And if you think about all of
the destruction of farmland, and granaries, and marketplaces,
and people's own stockpiles in their homes, we need to go way
beyond even, the 500 trucks that I hope we can approach here in
the coming days.
Senator Graham. Based on what you hear and what your people
see, do you think Israel has been using food as a weapon of
war?
Ms. Power. I think that Israel has not done enough to
facilitate the kind of humanitarian access we need to avert the
kind of food conditions that we are seeing to avert famine.
Senator Graham. And that, I guess they could always do
more. I get what you are saying. But do you think it has been
the policy, the Israeli government to use starvation as a tool
of war?
Ms. Power. Again, what we see is that there was a series,
have been a series of restrictions over many, many months where
we, as trusted partners, have tried to describe what the
effects of those restrictions are. And again, fortunately, in
over the course of the last several days, really to a week, we
are seeing being a sea change, which we hope is sustained and
expanded upon the provision of access----
Senator Graham. The State Department say they did not find
any evidence of genocide.
Ms. Power. Pardon me.
Senator Graham. Did not find any evidence of genocide on
the behalf of the Israeli Government toward the Palestinian
people, are you familiar with that?
Ms. Power. Did you mention--did you say the ICJ?
Senator Graham. The State Department.
Ms. Power. Oh. The State Department, I am not tracking
determinations of that nature.
Senator Graham. All right. So you are the head of the USAID
program we have, I just want to make sure that I understand
exactly what you are saying here. Are you uncertain as to what
the Israeli policy is toward allowing food in?
Ms. Power. Well, what I can describe is engagements with
different parts of the Israeli government that have over these
months, yielded different answers and different results. And
what is very important in the last week is that now it appears,
again, we are not in the cabinet, but it appears that there is
a consolidation of decisionmaking authority. Again, we have
famine-like conditions in Gaza and supermarkets filled with
food, you know, within a few kilometers away.
So, it is incredibly important that the food that is
available get to the people who, especially in the case of very
young children, we are getting a growing number of reports of
death by malnutrition, or diseases induced by malnutrition.
Senator Graham. So death by malnutrition. Let us know what
you find. I want to--I am very curious about that. How many
deaths do you attribute to malnutrition? Can you report to us
your findings?
Ms. Power. Well, what I can report you back to is the IPC
report, which is the gold standard. But what is very, very
challenging, in addition--which has in it, again, the
measurement of the circumference of the children in order to
show severe acute malnutrition. And then we have the reports
from our partners, and I don't have the statistic, as of today.
Senator Graham. Okay. I will check. I will check that out.
Ms. Power. Can I just make one tiny point?
Senator Graham. Yes. Real quick.
Ms. Power. Which is just that, even your question about,
can we have better data, or real data, depends on access. Again
it is allowing our partners to move around, to be not at risk
of being targeted so that they can answer questions of the
nature you are describing.
Senator Graham. I would imagine that is a pretty difficult
thing to accommodate for Israel, while they are fighting this
war. But we will try to get them to do better.
Sudan, real quickly, what is the top line on Sudan; what
should this Committee know about what is going on in Sudan?
Ms. Power. Well, I am pleased that we have--the U.S. has
appointed an envoy that is engaging with the stakeholders in
Africa and the Arab world to try to create a meaningful peace
process. But basically, you have two factions that are much
more interested in power for themselves than in ensuring that
their people have access to food. Blockage of convoys that we
are funding that could be feeding people who themselves, too,
are facing near famine conditions, particularly in the Darfur
area.
So it is a horrific situation and a place where we do not
have the resources, we don't have the access, as I have
described, but even in the places where we have access, because
of the drop in our humanitarian budget, we are going to be
funding the needs there are far less this year than we did
last.
Senator Coons. Thank you, Senator Graham. Thank you,
Administrator.
I am going to turn to Senator Murphy.
Senator Murphy. Thank you very much, Mr. Chairman. Let me
just make one addendum to this discussion about what is
happening in Gaza today. Last week, I visited Connecticut-based
emergency relief organization, Americares. They deliver mainly
emergency medicines into conflict areas. They are amongst a
number of organizations that have suspended operations in Gaza.
They are suspending those operations not because of a lack
of access, not because of overly bureaucratic process of the
ports. They are suspending their programming there because they
don't think they can keep their people safe, because of our
inability to do deconfliction in a meaningful way.
And so they are not likely to resume operations until there
is a cessation of hostilities. And so we just have to be pretty
clear-eyed about the fact that until the bombs stop dropping,
until the shooting stops, it is going to be very, very hard to
be able to do what we need to do inside Gaza, and save the kind
of lives we want to save.
Administrative Power, I wanted to turn your attention to
Haiti for a moment. We have been the biggest humanitarian
contributor to a country that continues to spiral out of
control, as gangs now control the majority of the capital. $171
million since October 2022. I think we should be proud of that
fact, but I think we all worry that Haiti is lurching into what
may be a permanent state of emergency, that is going to be a
significant drain on what we have heard today are dwindling
resources, with lots of suitors and competitors.
This is a really critical moment, and I know there is a
deep skepticism about the role that the United States has
played and should play when it comes to restoring security in
Haiti. I convened a meeting of Haitian-American leaders in my
State, and they had a variety of opinions as to what role the
United States should play.
So I want to ask you a question, not about whether we
should be a humanitarian partner and saving lives in Haiti,
but, you know, what is the proper role for the United States to
play right now in restoring security in Haiti; because this
seems to be a moment to double down on our work in that
endeavor, rather than just to sit back and let others lead
while we continue to provide the bulk of humanitarian
assistance.
Ms. Power. Well, just to embrace the premise of your
question that you can't--there is no humanitarian fix to a
complete breakdown in security as is happening in so many
neighborhoods in the capital. Look, I think the U.S. role has
been on display in several years, going around the world and
trying to find a willing partner who was willing to put
security forces, in this case police forces, on the ground in
Haiti, securing the commitment.
And huge thanks to the Kenyans and to President Ruto for
being willing to step forward. And that was, of course, in an
environment that was already unstable, already very, very
difficult, and now all the more. So, these conversations are
ongoing, but you know, mobilizing the resources that we have in
order to provide--to be in a position to support the payment of
salaries, because this is, of course, not a traditional UN
peacekeeping mission. It is blessed by the UN, but not funded
by the UN.
I think that is an important role for the United States. So
is the diplomacy, we have done to get other countries, like the
Canadians, and many of the Europeans as well, to step up and
fund and equip that force.
But the diplomacy around the three legs of the stool,
right: security, humanitarian welfare, and then governance, and
the fact that there hasn't been a legitimately elected
government in Haiti is something that has surely contributed to
the breakdown in security as well, as gangs and others use
that, at least as a pretext for their vigilantism.
So, the efforts to pull together a transition, USAID stands
ready with a lot of election support when we are in a position
to provide it, and when there is a roadmap to elections. But
you won't get security without governance, and of course you
can't get that roadmap to elections until we get a baseline of
security.
Senator Murphy. Yes, I think we have got a really short
window in which to figure out the path forward and find those
international partners.
Let me pull back and ask you one additional question about
China competition. You know, really excited about the work that
you are doing to better evaluate the impact of programs on the
ground. You know, but there is an asymmetry between how we view
our aid, and how China views its aid, right? We are looking at
the impact of our aid largely through a policy lens, trying to
impact the largest number of people possible.
China is really looking at their aid more so through a
political lens. You know, an example is, you know, often there
are pet projects that dictators or quasi-dictators have around
the world that we don't see as a, you know, have as a real ROI
for the citizens of that country, and we aren't willing to put
our dollars behind it, but China will.
And so, you know, do you see it as an exposure to the
United States that you know, our aid is more focused on how
many people we can help, and China's aid is focused more on how
many officials they can influence? How do we--how do we balance
that asymmetry?
Ms. Power. I think our budget request is, and particularly
the investments as well in the global infrastructure efforts,
are a reflection of our desire to be more competitive in terms
of the kinds of resources that we are investing. So that is
quantity.
We should be showing up. They are actually receding from,
you know, having become the world's largest debt collector.
Their investments are way down. In fact, over the last 2 or 3
years, having become overextended, not getting maybe the return
on investment that they had sought, being in that position of
being a debt collector, they are rethinking what they are
doing.
There is an opening, there is a real opening. But I do
think our comparative advantage is quality, fundamentally, and
that involves not only quality of infrastructure, transparent
procurement, you know, not having the investments we make
benefit the few rather than the many, but it is also the
quality of what, for example, an Agency like USAID can come in
with to align with infrastructure that is being built.
So you have heard a lot about the Lobito Corridor is the
flagship, initial major investment associated with the PGI, you
know, we are looking at mobile money, you know, so that small-
scale farmers can, you know, better access resources in order
to take that loan out, in order to be able to get the access to
capital they need to grow their business for when that rail
exists, and there will be--we will actually support them in
getting their goods to market, but getting them digitized is a
prerequisite for the kind of growth that they envisage for
themselves.
USAID is funding a public-private partnership with the
Department of Transportation in Angola to help them do other
concessions for their infrastructure, but again in a manner
that is transparent, that changes the enabling environment,
hopefully over time, see civil society also empowered to
scrutinize what is being done in governmental circles.
It is an entirely different model. But it reflects that my
response at least tries to reflect the toolkit that we need to
bring to bear, which is both about the hard infrastructure
which people are craving, but also aligning development, human
development along with those investments.
You know, we can build a railroad, but if we aren't
actually investing in nutrition, and education, and you know
small medium-sized enterprises in route at the same time the
return on that investment, it is going to be much more limited.
The last thing I would say just, is the polling is very
striking about public reactions in the countries that have
taken that alternate development approach, and a real souring
on, you know, seeing those big infrastructure projects that
either, you know, aren't actually of the quality that citizens
need in terms of their infrastructure. Some of them are, but
many of them are not, that are saddling publics with debt in
the longer term, but also that are bringing in workers from
outside the country rather than actually using infrastructure
as a source of employment in the countries themselves.
And so I think the polls are actually the best diagnostic
about whether we need to change, or whether we just need to
scale what we are trying to do.
Senator Murphy. Good. Thank you. Thank you, Mr. Chairman.
Senator Coons. Senator Merkley.
Senator Merkley. Thank you very much, Mr. Chairman. And
welcome, Administrator Power.
In response to Lindsey Graham's question, you noted that
there was a series of restrictions by Israel on aid entering
into Gaza.
As you are, I know, very aware of Foreign Assistance Act
Provision 620I says no assistance shall be furnished under that
Act, if a country restricts directly or indirectly the
transport or delivery of U.S. humanitarian assistance. Did the
administration start considering back in December and January
implementing 620I as a way to persuade Israel to let more aid
in?
Ms. Power. Thank you, Senator. My understanding, this is of
course, being administered and adjudicated at the State
Department, but is that 620I has been incorporated in the
National Security Memorandum 20, and as the assurances have
come in from the seven countries, including Israel, on the
provisions of NSM-20, encompassing 620I, that the State
Department is in the process of reviewing the credibility of
those issuances.
Senator Merkley. So just directly to my question, did you
advocate back in January, or others, that 620I be used by the
President?
Ms. Power. I am not going to speak about internal advocacy,
but I know that there is a report that will be forthcoming in
early May I think that assesses the credibility of the
issuance, but I certainly believe we should use our leverage.
Senator Merkley. Well, what we saw this last week, was the
President, for the first time, said to ``Bibi'' Netanyahu that
there will be consequences for our relationship and for the
delivery of assistance if we don't get more humanitarian
access; and many folks have asked why didn't the President and
Presidential team not use that same strategy, that same power,
months ago?
Ms. Power. First of all, it is very important, President
Biden's message and, you know, so much of the content of what
we are asking for is, you know, that a lot of those things are
the things that we have been asking for, as you know, for many,
many months.
Very specific and measurable steps, and again we are
hopeful that finally those steps will be taken. I think the
President's view over this period of time has been that the
combination of sustained private diplomacy, and public
diplomacy, you know, has been the best way to move Israel. If
you think again about where they were at the beginning, where
Kerem Shalom wasn't even open, Rafah wasn't even open, it has
been a too gradual process of seeing the access we need.
Senator Merkley. Let me progress to some other questions
here. Lindsey asked about children starving. WHO said that 28
children have now died of complications related to nutrition,
and that is the way people die from malnutrition. They don't
die from the lack of food, they die from infections, they die
from many medical complications. So that is the beginning of
this wave. But we also know that a tremendous number of people
have died because of lack of medical aid. We are down to 10
hospitals out of out of 34.
One of the things that many of us advocated for was for the
U.S. to directly provide assistance to these hospitals through
airdrops, which Jordan has done, the U.S. has not. Why not?
Ms. Power. On that specific question, I don't know the
answer. USAID does fund the International Medical Corps, which
treats 600 patients a day. I think it has treated more than
40,000 since the conflict began. They have done an incredible
job, but that is in the southern part of Gaza. I think the
military has been providing food, of course, MREs through its
airdrops, but perhaps it is a feasibility. You know, a belief
that it would not be a practical way to deliver the kind of
medical assistance that is needed. But I can look into it.
Senator Merkley. Well, I will tell you, that the fact that
Jordan can do it, means it can be done. The fact that you are
down to 10 hospitals that do not have antibiotics, often don't
have insulin, don't have many of the other basic supplies,
these are not the kind of the heavier things that are more
difficult to deliver by air.
Let me turn to the lens through pregnant women, and what we
have heard reports from Gaza is that there is been a
significant increase in miscarriages, and in stillbirths, and
that many women when they deliver, because there is not
communications, or power, or safe passage, can't get to a
hospital to deliver. That many women are malnourished and
therefore cannot breastfeed after a child is born, and that
there is not access, often, to clean water and formula as an
alternative. Are you familiar with those general descriptions?
Ms. Power. It is very consistent with what we hear from our
partners. Yes.
Senator Merkley. It really emphasized through that one
lens, the level of catastrophe, the cascading humanitarian
catastrophe. When Chris Van Hollen and I went to Rafah, and
talked to the hardened--experienced, hardened aid workers who
said they had served in the most difficult places in the world,
places like Somalia, and Sudan, and Yemen, and the frontlines
of Ukraine. They said the combination of factors, and by that
they were referring to lack of power, lack of communications,
lack of housing, continued military hostilities, lack of food,
lack of clean water, in combination, they said this is the
worst humanitarian catastrophe they have seen in their careers.
Does that generally fit your understanding the situation in
Gaza?
Ms. Power. I would just add, it is also the deconfliction
system that doesn't provide any assurance, that even if you can
get access to these supplies, that you can deliver them in
safety, or reliably. I traveled as well to Israel and the West
Bank last month and met with aid workers that I have worked
with all over the world, in past lives of theirs and mine, and
that is very consistent with their description,
``unprecedented'' it was a word that was used. Yes.
Senator Merkley. Thank you. After the death of the seven
World Central kitchen workers, the President, our President,
President Biden, did convey the challenge of U.S. continuing to
provide its normal relationship, unless Israel acted. And
within hours Israel was talking about opening Erez Crossing,
the use of the Ashdod Port, more trucks getting in.
Why did it take seven World Central Kitchen workers to make
that happen? 220 aid workers had died, 489 health care workers
had died, why did it take those seven from World Central
Kitchen for President Biden to make the pivot?
Ms. Power. I would distinguish what President Biden has
been pushing privately from the beginning, he has been the lead
humanitarian voice engaging every time he talks to ``Bibi'' to
Prime Minister Netanyahu, this is basically the number one
topic, number one, two, three, four, five topic. I think what
is different is the public nature of this, and again the system
that gave rise to the killing of these innocent aid workers, is
the same system that has made it so hard to bring about the
kind of civilian protection that is needed as well for
Palestinians.
And it has to be said that, these deaths, horrific and
tragic as they are, come on the heels of more than 200 deaths
of Palestinian aid workers, and then of course more than 30,000
Palestinian civilians. So, the system for so-called
``deconfliction'' where civilian sites, and civilian
gatherings, and the welfare of civilians, and including aid
workers, you know, that those are prioritized, that system is
really in need of this improvement.
Senator Merkley. Thank you.
Senator Coons. Thank you, Senator Merkley.
Senator Durbin.
Senator Durbin. Thank you. Administrator, it is good to see
you again. So if people in Illinois ask me whether USAID is
providing any help in Gaza today, what would be your shorthand
answer?
Ms. Power. Absolutely. I mean the World Food Program is
doing the bulk of the food assistance that is funded by U.S.
taxpayer, Illinois taxpayers, and if we can get more access we
will get more food, and we will prevent the worst effects of
this acute food crisis.
Senator Durbin. The Inspector General's Report we are given
for this hearing suggested a concern that when they--after the
October 7 attack, the OIG issued an alert identifying Gaza as a
high risk for potential diversion and misuse of U.S. funded
assistance. What has been our experience?
Ms. Power. First of all, I think an alert like that is
important. This is an incredibly complex operating environment,
and we are grateful for the OIG's work and--I think they are
probably surging staff and inquiries.
Our partners know that they have to report diversion as
soon as it happens, we will suspend or terminate our work with
partners if we find, again, that the food is not getting to its
desired beneficiaries, targets, in this case that need is even
greater because the food needs are so great. We have not
received reports of Hamas systematically diverting food. We
have seen, as you know, so-called ``self-distribution'', where
communities gather around trucks and the kind of organized
distributions that we are accustomed to doing give way to
desperate families, you know, lunging and trying to get access
to boxes.
With food so scarce, prices went up and that increased the
influence and the role of gangs, and other more criminal
elements. So, you know, we really look forward to flooding the
zone with resources to be in a position to do what we are
able--our partners have been able to do in other really complex
operating environments, which is organize distributions in a
manner that can be safe and dignified for civilians.
But again we think the systems that we have in place, the
trusted partners that we are working with, World Food Program,
UNICEF, International Medical Corps, these are partners we work
with all around the world, and we expect them to report, again,
anything that they are finding on the ground that is
interfering with their ability to pursue their mandates.
Senator Durbin. So I am trying to compare your answer,
which basically says nothing extraordinary has been noted in
terms of diversion and misuse of U.S.-funded goods, with the
stated policy of the Israelis, that they are slowing the flow
of goods to a trickle to verify whether or not they are being
diverted to Hamas or any other purposes.
Ms. Power. Just to step back, I think that what happened on
October 7 caused the Israeli public, and the whole world, to
look and say, ``okay, well, how did that happen? How did it
happen?'' And that led to, certainly, a level of
restrictiveness in the early days with really no checkpoints
open to be able to get food in, and a gradual building of an
infrastructure, some of the infrastructure had been destroyed
also in the attack itself.
But it was also policy, you know, real concern that
anything went in would go to Hamas. For a long time, we
couldn't get fuel in to power the trucks in order to be able to
get the food to people who needed it, because of the concern,
again, that Hamas would get the fuel.
I think that, understanding the history and how it was that
Hamas acquired the capabilities that they exhibited on October
7, that is part of, again, something that we hear a lot about
from our government of Israel interlocutors, understandably in
light of what happened October 7. But we still have to get food
in to feed a population that has no means of feeding itself, in
light of the conflict, and in the light of all that has been
destroyed.
I am not sure if I am responding exactly to your question.
Senator Durbin. Thank you for that. I am not an expert on
this, but I can recall a time when I was introduced to
something called Plumpy'Nut----
Ms. Power. Yes.
Senator Durbin [continuing]. Which is a food supplement for
starving children.
Ms. Power. It's extraordinary, yes.
Senator Durbin. There may be some new product that evolved
over time. But is that part of what we are doing in Gaza?
Ms. Power. Right now, the inability to get to the north in
a sustained way, has limited our ability to provide ready-to-
use therapeutic food, but that is absolutely part of what we
are trying to flow into Gaza to address severe acute
malnutrition that is being diagnosed.
I want to be clear about, again, if we can have a
humanitarian system whereby goods are flowing in regularly in
convoys, humanitarian aid workers are in a position to know
that they can move out without fear for their lives as well as
fear, you know, for the people to whom they are trying to get
assistance, and where we can get to the north, which has been
largely off-limits, with only a very limited supply, we are
going to want to see Plumpy'Nut, or ready-to-use therapeutic
food in those pipelines. But I could not advertise now that we
are reliably getting those resources to the very vulnerable
kids who need it.
Senator Durbin. I think that is a stunning statement. We
know children are starving to death, in the numbers, and the
most fundamental life-saving substance that we can sell--that
we can transmit or transport to this country, we can't get to
the most serious areas is what I understand you are saying.
Ms. Power. Well, we hope that is changing, with today 433
trucks, or yesterday, 433 trucks finally getting in. I will get
back to you precisely about the contents those trucks.
Senator Durbin. And can I ask you, who on the ground is
supposed to receive those, and for example if that----
Ms. Power. UNICEF is traditionally our partner as we move
ready--if that is what you are talking about, be ready-to-use
therapeutic food. We work with UNICEF, and then UNICEF would,
in turn, be relying on the UNRWA humanitarian infrastructure
that, you know, provides the trucks, and assembles the convoys.
We also work with WFP as well in providing those
But I will get back to you as to which partners
specifically we are looking to provide those resources to. Bear
in mind also though the point that was made earlier about
hospitals and clinics, again this is an operating environment
where, many of the most severely malnutrition children aren't
in a proper facility, you know, where in one stop, you can go
and again provide a flow of these resources, so it is extremely
dangerous and I can't even imagine being a parent in that
circumstance.
Senator Durbin. Nor can I. Thank you.
Senator Coons. Thank you, Senator.
Chair Murray.
Senator Murray. Thank you very much, Chair Coons. Thank
you, Administrator Power. Good to see you. Thank you for being
with us today, as we kick off our first subcommittee hearing
for the fiscal year 2025. And I hope my colleagues will indulge
me for just a moment to go over some of my thinking about this
as we start this process.
First of all I do want to acknowledge to everyone the
success we had, as a Committee, in passing all 12 of our annual
funding bills for fiscal year 2024. It was not easy by any
stretch, but we accomplished what many believed we could not do
in this Congress. We worked together in an open bipartisan
process and passed all of our funding bills.
And it was the approach that we took here in the Senate,
listening to each other, finding common ground, setting aside
extreme partisan proposals, that finally allowed us to complete
full-year bipartisan bills with the House after so many months
wasted by Republicans.
But while we have now passed all of our annual funding
bills, we are not close to being done yet with 2024, and we
won't be until we pass the National Security Supplemental and
provide desperately needed aid for Ukraine. The Senate passed
that National Security Supplemental in an overwhelming 70 to 29
vote nearly 2 months ago. There is no reason for further drama,
delay, or partisanship; it is time the Speaker put this up for
a vote.
We cannot afford to give up on Ukraine and throw in the
towel to dictators, like Putin. Not when we know that our
assistance is so consequential and has overwhelming bipartisan
support. I will not stop pushing until we finish this job and
get that bill to the President's desk.
I am also going to continue talking with my colleagues to
make sure we address other needs, including working to ensure
we reopen the Port of Baltimore, and rebuild the Francis Scott
Key Bridge, and at the same time we are getting moving right
away on fiscal year 2025, and it is no secret we have our work
cut out for us. Fiscal year 2024 was hard, 2025 will be harder.
Spending caps from the FRA increased by just 1 percent for
both defense and non-defense funding, that is an increase that
is not nearly enough to tackle the challenges we face here at
home and abroad. And we head into fiscal year 2025 without many
of the non-defense resources that were so important to passing
workable bipartisan bills just a few weeks ago.
So this Committee will again need to come together, on a
bipartisan basis, to provide adequate resources for both
defense and non-defense programs, and to make sure there is no
confusion about where I stand here, I will insist that any
agreement take care of both non-defense and defense, and I look
forward to talking with all of our Committee Members in the
coming weeks, about how we are going to do that.
Now, turning to the issue of today, our investments in
USAID, Chair Coons, several colleagues and I just returned from
a CODEL that I led to Southern Africa, where we met with
officials and leaders in a handful of countries, and saw first-
hand how U.S. investments are strengthening our political,
economic, and security partnerships, and I am very eager to
talk about how we build on that progress especially when it
comes to economic and development assistance.
At this critical moment with a severe humanitarian crisis
in Gaza, civilians in Ukraine suffering from Putin's brutal
invasion, and so many other challenges like the truly dire
crisis in Sudan where a staggering 8 million people have been
displaced. It is clear that we cannot abandon our role as a
global leader in delivering humanitarian aid. Across all of
these programs, we need to continue to do better, incorporating
women and girls, who are often the most at risk in times of
conflict, into emergency response, development programming, and
peace-building work.
And we need to keep building on our Global Health
infrastructure. Let us be clear: helping our partners around
the world overcome hardships, increase their security and
stability, and improve their economies and the lives of their
people, is not just the right thing to do; it is the smart
thing to do. These are investments that pay off for our
country.
We are helping our partners address threats across the
world, like conflict, chaos, and contagion, before they fester
and jeopardize folks here at home.
So with that in mind, I will turn to my questions. And you
have been asked several times about Gaza, so I won't reiterate
that, but just to say, I share the concerns of my colleagues
that you heard, about how we are not doing enough to get more
aid into Gaza. Airdrops and sea routes are not going to solve
this. So we have got to see consistent access across the Gaza
Strip, including the North, at a scale necessary to address the
serious threat of famine. So I appreciate your responses to my
colleagues. And it is something of concern we will all
consider--continue to push on.
Now, on my recent trip to Southern Africa, I was very glad
to see the progress we have made improving the lives of women
and girls, but we have got to do a lot more to be responsive to
their needs in every aspect of foreign assistance, as you well
know, women and girls often eat last, and eat the least, while
sacrificing for their families. The majority of community
health workers are actually women, who are frequently underpaid
or unpaid. We are still seeing a lot of barriers that prevent
girls from staying in school and getting a quality education
like early enforced marriage.
Building on our efforts in this space is essential because
we know women's empowerment and inclusion is critical for
resilient democracies and strong economies.
So Administrative Power, how can we continue to make sure
the needs of women and girls are accounted for in humanitarian
responses and development programs?
Ms. Power. Thank you so much. Well, I think, for start, to
sustain the resources invested in programs that are dedicated
to girls' education, support for female SMEs, and so forth, all
of these, again, we have sprinkled throughout the world,
including to the countries you visited. And thank you, our
teams, we are so grateful that you all took the time, to not
only to visit those countries but to actually see the programs
up close.
One example which I think needs to be a growth area is,
even in the budget-constraint environment, is on global health
workers. As the vast majority of global health workers are
women, as you know, they are underpaid. In some cases, they are
unpaid. And so even though this recent budget cycle, as you
mentioned, it is going to be very difficult for us, the fiscal
year 2024 budget, we were grateful to you for finding $10
million for the Global Health Worker Initiative. And we would
like to grow that over time. We think this is an example of the
kind of foundational investment that is needed for primary
health systems, not just for the disease-based programming that
you saw on HIV, or TB, or malaria, but really getting at
foundational health while also advancing the rights and the
welfare of women.
But in addition to these dedicated programs, you know,
really, I think women's and girls' empowerment needs to be a
design feature, and a filter through which we look at all of
our programming: agriculture, economic growth, global health,
as I mentioned, education. And I think the teams have made a
ton of progress in the last 3 years in doing that.
Senator Murray. Yes. We were able to visit health care
facilities, and a school that touched my heart with, you know,
a couple of girls that were able to go to school, and we just
have to really expand that. So I will--I want you to know I am
going to stay focused on that.
And Mr. Chairman, if you wouldn't mind, I just want to ask
one more question.
Senator Coons. Sure.
Senator Murray. We were in Zambia and Malawi, and the
Governments each made disaster declarations because of the
recent droughts. Not only are we facing, clearly, the
challenges of climate change, they are seeing it in their lost
crops, in famine, disease outbreaks, and it is really worsening
with water insecurity. That can cause a lot of tensions in
those communities and across the borders.
Water is necessary for survival. Not just for human
consumption, and cooking, and all of that, but for the farmers
and ranchers and the food production. And I want to ask you,
how is USAID investing in water rights and sustainable resource
managed to reduce the threat and the risk of conflict?
Ms. Power. Well, let me embrace the premise and the
connection you are making between water and drought, and
scarcity on the one hand, and conflict on the other. I don't
think it is a coincidence by any stretch, that we have more
conflict happening in the world today than at any time since
World War II. We also have more drought and more extreme
weather events, generally, than at any time in our lifetimes.
I am grateful for Senator Durbin, and others who have led
on water and water rights. We are shifting our focus a little
bit to focusing on governance, and working with water
ministries, municipalities, national utilities, that is on top
of the work that we have been doing building taps and toilets,
maybe you saw some of those. And that those are really
important Legacy Investments that we have made.
But in order for water to be dealt with systemically, that
is fundamentally going to require working with state
institutions, again, whether subnational or national. I think
by 2027 we are aiming to strengthen 1,000 water security and
sanitation institutions in some fashion, and last year we
supported 500-1,000 sounds like a big number, it is not that
big a number when you think about, again, how great the needs
are.
But this underscores, given our resource challenges, the
importance as well before you got here, I talked a lot about
leveraging taxpayer money to get more private sector
investment, and I am struck in the water domain that USAID's
investments in water over the last 5 years have mobilized an
additional $1.4 billion in private sector resources. So that is
more than 60 cents for every taxpayer dollar, and we are going
to have to do more of that across the board.
Senator Murray. Okay. Thank you. Thank you very much. And
thank you, Mr. Chairman.
Senator Coons. Senator Van Hollen.
Senator Van Hollen. Thank you Mr. Chairman.
Let me start by thanking Chair Murray for navigating us
through the last fiscal--long fiscal year, and for your
commitment to moving forward in a constructive way, including
mentioning replacing the Key Bridge in Baltimore. Thank you.
And to Chairman Coons, thank you for your leadership on
this subcommittee, and your commitment to humanitarian aid, and
to both of you for mentioning the need to pass the
Supplemental, which includes many elements, including
humanitarian assistance.
Madam Administrator, it is great to see you. And thank you
and your team at AID for what you do, worldwide, every day.
Many of us have had the opportunity to witness your good work
on behalf of our country, and it is ongoing, and also
responding to emergencies, including in Sudan. Haiti has been
mentioned, other places have been mentioned. And I am grateful
for all the work you are doing there.
I do want to turn to Gaza because it is a humanitarian
disaster, a man-made humanitarian disaster, a crisis that the
UN, as well as multiple international NGOs have called the
worst humanitarian disaster they have seen in 50 years, given
all the factors that are at play there.
On Sunday, we marked the 6-month anniversary of the
horrific Hamas attacks on Israel. About 1,200 people murdered,
over 250 hostages taken, and we have all said, as the President
has said, that Israel not only has the right to defend itself,
but I would argue, the duty to defend itself against Hamas.
But as you know, you have been our Ambassador to the UN,
you have written about international law, the right to self-
defense does not include the right to arbitrarily restrict
desperately needed humanitarian assistance from getting to
innocent people, including now over 2 million Palestinians in
Gaza, who have nothing to do with Hamas.
And it should not have taken the death of foreign aid
workers to get the world to really say, enough is enough here,
and to galvanize action. As you said, over 200 Palestinian aid
workers have been killed already since the beginning of this
war.
And I am glad to see the Netanyahu Government say it is
going to open the Erez Crossing. This is something those of us
on this Committee, who are here right now, have been calling
for, for months, as has the President. I am glad to see over
400 trucks crossed into Gaza yesterday. To my mind, that just
shows what has been possible all along, and every day we should
have at least 400 trucks crossing.
But as you know, in addition to getting trucks into Gaza,
we have to be able to safely distribute assistance within Gaza,
and that, of course, is why we have been calling for
deconfliction, and why the killing of the aid workers with
World Central Kitchen was, unfortunately, just another example
of a failed deconfliction process.
So getting aid distributed in Gaza since the beginning of
this war has required, as you indicated, the major UN Agency
responsible for Distributing aid, which is UNRWA. And at least,
the last I heard, the Netanyahu Government was still not
allowing UNRWA to distribute aid into northern Gaza. I am
hoping today maybe you will tell me that it has changed. Is
there any update on that?
Ms. Power. My understanding is that there has been
progress, whether it is sufficient, I think we are waiting to
see. I think it has been about a month in which that policy was
in place, and it dramatically limited what could be done given
that the transportation infrastructure is by and large, UNRWA.
So that policy carried with it the consequence of being able to
move even less to the north. But my understanding from today is
that that position is changing.
Senator Van Hollen. Well, I am glad to hear that, because
that policy, in my view, resulted in, you know, more people
suffering dramatically, and we have seen over 20 people, not
just on the verge of starvation, but die of starvation. So it
is essential that that policy that was imposed by the Netanyahu
Government change in order to make sure that we can get food to
people in Northern Gaza.
I was pleased to see the readout from the President's most
recent phone call with Prime Minister Netanyahu, where he
indicated that U.S. policy on a forward-going basis would be
determined; I think ``determined'' was his word, by whether or
not we see results in terms of preventing and stopping this
humanitarian catastrophe. And I saw Secretary Blinken
underscored the fact that we need to see results.
I just want to make sure I understand what we mean by
results, because from my perspective results means that we stop
what many say is an imminent famine, results means that we
don't have any more people dying of starvation, results means
we don't have hundreds of thousands of people on the verge of
starvation, results means that kids who are getting amputations
because of wounds they suffered can at least have anesthesia.
Is that how you would define results?
Ms. Power. I would add also that civilian protection be a
priority, and something recognizing, again, the despicable
tactics of Hamas insinuating itself in civilian populations
that doesn't lessen the responsibility to look out for
civilians in one's targeting, and be extremely mindful of the
risks in a manner that, yes, this creation of a new structure
whereby humanitarians, and officers operating in Gaza are more
closely latched up. It is something again that we have been
appealing for some time.
But you know, fundamentally as well, a view on the part of
those choosing targets that, you know, civilian harm is
something to seek to avoid in every possible circumstance. And
you know, military necessity alone, you know, cannot dictate
the targeting. Fundamentally, the military necessity, the
proportionality analysis around military necessity is very,
very important.
So again, we have laid out a series of steps that yes,
include the Erez Crossing, and the port, and a new--and a much
beefed-up corridor from Jordan. I mean, I think on the trucks
we can see a path to, you know, addressing the food crisis or
at least to flooding the zone with food. But you know, getting
food into Gaza is the first step, and that food then has to get
to people where they are.
And this underscores the importance of maintaining the
humanitarian hub such as it is in Rafah, which is something as
well the President not just in the last couple of weeks but for
months has been alert to the risk of jeopardizing what
humanitarian infrastructure does exist. And so again, our view
is that the kind of ground operation that the IDF has
undertaken in Khan Yunis in Gaza City, that it would be a
mistake to carry something like that out, given that the
provisions for the welfare of the civilians, and the
humanitarians who work there have not evidently been made.
Senator Van Hollen. Well, thank you. And you anticipated my
other questions, as is often the case, and I agree that results
have to include reducing civilian harm, results have to include
a recognition of President of the United States' position, that
an invasion of Rafah, would be a red line. In my view, all of
this has to be part of results.
And if I may, Mr. Chairman, I just want to say to the
Administrator, I want to thank her. I know that AID has played
a role with respect to the interpretation and provided input on
NSM-20, and I think it is essential that those who were
responsible in the Department for the delivery of humanitarian
aid, have a strong voice within that process since one of the
key factors of NSM-20, as you know, is whether a recipient of
U.S. Military assistance is facilitating, and not arbitrarily
restricting the delivery of humanitarian assistance.
So I hope AID will have a strong voice at the table. I
don't know if you have any comment on that.
Ms. Power. I am always for USAID having a strong voice.
Senator Van Hollen. All right. Well, please keep us posted.
Thank you.
Senator Coons. Thank you, Senator Van Hollen. We are in the
middle of a vote. I have three more brief questions if I might
which you are welcome to speak to briefly or at length, as you
wish.
Almost every Senator raised the urgency of the
Supplemental, Chair Murray, in particular, it is the unfinished
business of fiscal year 2024, what are the consequences if the
$9 billion in humanitarian aid that was passed by the Senate on
a big bipartisan margin, and the funding for Ukraine, and the
other funding, but what are the consequences both for the
humanitarian circumstances of the world, and for your 2025
budget, which is the topic of this hearing? What happens if the
House simply doesn't pass the Supplemental?
Ms. Power. The House has to pass the Supplemental, there is
so much riding on it, for starters, we have been talking about
the importance of access, and the importance of all players
doing everything they can to facilitate resources flowing into
Gaza. Imagine the United States not being in a position to even
fund food or, you know, ready-to-use therapeutic food for
infants, or for kids under five who have severe acute
malnutrition.
Maybe we would be able to do something small, again,
growing out of the fiscal year 2024. With new wars in Sudan and
Gaza that have come onto the books--in 20--between April of
2023 and now, and for us to cut or have 40 percent less
humanitarian funding to work with, it will again mean cutting
people off rations who are in desperate need of it, and not
being able to meet the needs that have arisen over the course
of the last year, except for a short period of time.
Senator Coons. As I think you know, I was in Dadaab, in
August, I think we spoke about this, and got to hear from a
whole series of parents about what it meant for them and their
children that World Food Program had cut their rations again.
Senator Booker spoke today at our Caucus Lunch about his
visit to Chad, and with refugees coming from Sudan, and the
impact of the cuts that have already been imposed before that
possible cut. So if I hear you right, it would take a tragic
situation and make it catastrophic.
Ms. Power. I mean life and death. Millions of lives depend
on the passage of the Supplemental, tens of millions. Just, I
can't go this whole hearing without talking about Ukraine and,
you know, the fact that there are men and women in the trenches
trying to defend their communities from a Russian onslaught,
and that the thing that could be holding them back is not their
courage, not their ingenuity, but simply the question of
whether the United States of America is standing with them in
providing military support. That is something we will not wish
to live with ourselves, years from now, as we look back on this
moment.
But addition the part that USAID is responsible for, is to
bear in mind that Putin is trying to do two things: conquer
Ukraine militarily, and having failed that, destroy its
economy. The resources that Congress has given USAID to work in
partnership with those same courageous and ingenious
Ukrainians, this time in the economic sector, the agricultural
sector, the energy sector, I can't think of a better return on
an investment.
Not only because the economy has not collapsed, and indeed
will grow by 5 percent this year, not only because Ukraine is
now back to feeding the world despite Putin's attempts to
destroy Black Sea Port exports, and agricultural land, and
agricultural equipment, and that that has brought down global
food prices, including food prices here in the United States,
surely, you know, not only for all of those reasons but because
this country is so much further along, economically now, in
terms of its integration with Europe, its ability, once this
war is over, to wean itself quickly, you know, from
international assistance once it has, of course, had the
initial recovery from the war.
Its tech sector grew by 5 percent in the first year after
Putin invaded Ukraine, its young people determined again to
invent, and USAID facilitating those partnerships, trade fairs,
job fairs, making those export linkages, that is what the
Supplemental also funds.
Yes, it is humanitarian assistance, yes, it is ammunition
for Ukraine, but it is development, it is economic development
that is going to put Ukraine in an incredibly strong position
to be a member of Europe, and a member of democratic
civilization that contributes and gives back.
And maybe I will just use this occasion to close where I
started because I gave the Republic of Korea example.
Senator Coons. That is where I was going to take you.
Ms. Power. You know, Republic of Korea goes from, you know,
taking flour and assistance, you know, from the United States
and other democracies, to now being an absolutely pivotal
development partner and humanitarian partner to the United
States, the Republic of Korea, while we are under you know
significant budget pressure increasing its own development and
humanitarian assistance by nearly 30 percent next year.
That is the path Ukraine is on, honestly, but if we pull
the plug on the resources needed to help thwart Putin's
ambitions to destroy the economy we will--it is something that
we will live to regret, and it is something that will be a
great gift to Putin, and it is something that will impede the
kind of contribution that Ukrainians are so desperate to make.
Senator Coons. As a friend of ours often says: From your
lips to God's ears. I think it is urgent that Speaker Johnson
have the courage to put this on the floor in the House and that
we avoid what will be--I have almost never seen in my brief 14
years here such a clear difference in outcome, allowing Russia
to roll over Ukraine, threaten the rest of NATO, destabilize
all of Europe, the wave of refugees that would come from that,
the significant loss in American standing in the world.
Or staying in the fight sustaining them, dramatically
growing their economy, rewarding their innovation, their
patience, their determination, their patriotism and their
sacrifice, and showing that a former Soviet satellite really
can choose whether to be free or subjugated, and if they are
willing to fight, can fight for freedom successfully.
You have done amazing work in dealing with the attacks on
the power infrastructure, on restarting the agricultural sector
on economic growth. Secretary Pritzker met with a whole group
of us in Munich about the impact--just in Odessa and in the
agriculture sector, and was genuinely inspiring.
I will submit some questions for the record, about economic
growth. You are doing great work there. We, when we were in
Zambia had long conversations with President Hichilema about
debt burden, and the difference between predatory lending, and
the possibility of--the DFC being a real tool and other
initiatives by different agencies to be a tool. I would love to
hear your thoughts on the interagency, and what tools we need
to sharpen.
And then Global Health, look I have been a strong supporter
of PEPFAR. It was striking that the life expectancy of the
average Zambian has increased by 50 percent, simply because of
our investment there. Botswana really has achieved pandemic
control, and there really is transition to country ownership
and a number of key Southern African countries.
I would be interested in hearing from you: Where we go
next? What is the trajectory forward? We were only able to get
a 1 year extension, something Senator Graham and I both worked
hard on trying to figure out sort of where are we going in
global public health.
But let me also run to the floor to cast a vote, and
reflect on what you said in the outset about the Arc of South
Korea, Ukraine will someday, if we are wise, if we do what we
must join that list of our top trading partners, of those who
give back to the rest of the world, of those who are a model of
development.
South Korea, for critics of development, is the single
strongest case of a country that was a basket case and is today
a basket of opportunity and growth for the rest of the world.
Our investment, our partnership, and your leadership at AID can
help make that possible.
ADDITIONAL COMMITTEE QUESTIONS
[The following questions were not asked at the hearing, but
were submitted to the agencies for response subsequent to the
hearing:]
Questions Submitted to Administrator Samantha Power
Questions Submitted by Senator Brian Schatz
Question. The Administration suspended U.S. funding for UNRWA
months ago following reports from the Israeli government that a dozen
UNRWA employees assisted Hamas on October 7. Since these reports, many
allied nations have subsequently resumed their funding, due to a lack
of evidence of the claims. Without this funding, the agency will
experience a significant budget shortfall.
1a. How will the suspension of UNRWA funding impact USAID
operations going forward?
1b. How will the suspension of UNRWA funding to UNRWA impact
work to scale up the humanitarian and medical response capabilities and
capacity?
Answer. UNRWA plays a critical role in providing lifesaving
assistance in Gaza and countries in the region. Although UNRWA was
funded by the Department of State's Bureau of Population, Refugees, and
Migration (PRM), not USAID, UNRWA is central to the entire humanitarian
response in Gaza and cannot be easily or rapidly replaced.
Humanitarian organizations rely on UNRWA infrastructure in Gaza to
deliver assistance, including by supporting fuel provision, trucking,
distribution sites, storage facilities, and community trust and
support. Suspension of UNRWA funding will likely increase the pressure
on USAID partners to fill gaps. USAID will continue to provide funding
to other international organizations, including other UN and NGO
partners, to deliver assistance in Gaza. However, even under the best
case scenario with a coherent transition plan and sufficient funds made
available to other UN agencies and NGOs, our teams assess the
likelihood of significant gaps in aid delivery if UNRWA has a shortfall
of funding and has to scale back operations in Gaza.
Humanitarian programs in Lebanon, Jordan, and Syria are also likely
to be affected by shortfalls of funding for UNRWA, but we are still
assessing potential impacts.
Question. Section 620I of the Foreign Assistance Act of 1961 states
that ``No assistance shall be furnished under this chapter or the Arms
Export Control Act to any country when it is made known to the
President that the government of such country prohibits or otherwise
restricts, directly or indirectly, the transport or delivery of United
States humanitarian assistance.''
2a. Are you aware of any instances where U.S.-provided
humanitarian assistance, through USAID or other aid programs, was
restricted by the Israeli government?
2b. Has Sec. 620I of the Foreign Assistance Act been violated,
which would require the prohibition of military assistance to Israel?
2c. Is the Israeli government doing everything in its capacity
to ensure adequate and timely delivery of humanitarian aid to civilians
in Gaza?
Answer. USAID has provided information to support the analysis of
the determination under section 620I, which rests with the Department
of State. Analysis of section 620I is an aspect of National Security
Memorandum 20, and the issue will be addressed in the Department of
State's May 8, 2024 report.
Question. USAID has been significantly expanding its footprint in
the Pacific Islands over the past year. How has the opening of the new
USAID mission in Fiji and the Country Representative Office in Papua
New Guinea changed USAID's ability to work in the region?
Answer. USAID's new Pacific Islands Mission in Fiji and Country
Representative Office in Papua New Guinea directly responds to requests
from Pacific Island leaders for a more consistent in-region presence.
They tangibly demonstrate how the U.S. is listening to the region as
well as partnering and delivering on Pacific priorities, including the
2050 Strategy for the Blue Pacific Continent. USAID's increased
presence will strengthen our relationships with individual Pacific
Island countries and regional organizations like the Pacific Islands
Forum and the Pacific Community (SPC) as well as enhance our ability to
deliver more tailored and Pacific-informed programs.
Now that there is a new USAID footprint in the region, are there
any changes to USAID's understanding of the region's top development
challenges? Does USAID have a comprehensive needs assessment for the
region? Which countries and unmet needs in the Pacific Islands are
highest priorities going forward?
Answer. In May 2022, USAID released its first-ever, 5-year
Strategic Framework for the Pacific Islands, which aims to advance a
more democratic, prosperous, and resilient Pacific Island region. A key
guiding principle of the Strategic Framework is resilience, defined as
bolstering the ability of the Pacific Islands to sustainably adapt to
and recover from various natural disasters and climate shocks and
stresses. As part of a comprehensive needs assessment of the region,
USAID consulted Pacific Island governments, regional organizations, and
communities to ensure the Strategic Framework aligns with Pacific
development priorities, including the region's development vision in
the 2050 Strategy for the Blue Pacific Continent. Pacific Island
leaders identified as their top priorities climate adaptation and
economic development. Therefore, these areas are the highest priorities
for USAID's Strategic Framework for the region.
On climate, USAID is partnering with Pacific Island countries to
support their climate adaptation goals, including by helping countries
navigate the complex and lengthy application process to secure climate
finance from various multinational institutions. In Papua New Guinea
(PNG), USAID is partnering with Australia, Japan, and New Zealand to
help PNG work towards its goal of 70 percent electrification of its
population. USAID is also working with SPC to coalesce and align
development partners and philanthropies on the Pacific-led Unlocking
Blue Pacific Prosperity (UBPP) initiative, which was endorsed by
Pacific Island leaders at the November 2023 Pacific Island Forum (PIF)
Leaders Meeting in Cook Islands. The goals include conserving the ocean
and its marine resources, increasing food security and livelihoods for
Pacific Islander communities, and scaling sustainable finance
solutions.
USAID is also working with Pacific Island countries to foster
sustainable and inclusive economic growth as well as to protect Pacific
livelihoods and the critical natural resources upon which communities
depend. This includes working with development partners like Australia
and Japan to pool resources to promote resilient and secure digital
connectivity across the Pacific Islands. USAID is supporting the
development of two separate undersea cables that will expand
connectivity and spark economic growth in Palau as well as the
Federated States of Micronesia, Kiribati, and Nauru. USAID is also
partnering with the U.S. International Development Finance Corporation
to launch an up to $50 million Pacific Microfinance Facility, which
will help micro, small, and medium enterprises access the credit they
need to expand their businesses. In the Marshall Islands (RMI), USAID
is working with a private sector company to potentially secure
investment and financing to expand its current dock infrastructure,
which will allow RMI to participate in and benefit from a sustainable
and transparent tuna industry in the region. As tuna is among the
Pacific Islands' most valuable natural resources, USAID is assessing
the opportunities to replicate this project in other Pacific Island
countries.
Question. How is USAID working with the Pacific Islands Forum to
support the 2050 Strategy for a Blue Pacific Continent?
Answer. USAID's work is designed to address what the region itself
has defined as its most pressing challenges, including the priorities
laid out in the 2050 Strategy for the Blue Pacific Continent.
Specifically, USAID is listening and partnering with the region to
solve urgent climate challenges; strengthen global health security;
strengthen democracy and counter rising autocracy; expand secure and
environmentally-sustainable digital infrastructure; and develop
stronger, inclusive economies. USAID's re-established Pacific Islands
Mission in Fiji enhances our ability to partner with the PIF on
discrete priorities, including building long-term economic resilience.
Question. How is USAID leveraging digital health to support Pacific
Island countries' delivery of primary and specialty care?
Answer. As reliable and secure digital access expands across the
Pacific Islands, it provides additional opportunity for Pacific
communities to access digital healthcare services. USAID is
strengthening global health security in PNG and Fiji as well as
additional Pacific Island countries by partnering with Pacific health
ministries to build their capacity to prevent, detect, and respond to
threats posed by emerging infectious diseases. In Fiji, USAID is
working to finalize a partnership with the Taiwan International
Cooperation and Development Fund to strengthen digital healthcare for
noncommunicable diseases and COVID-19 in Fiji. USAID is also offering
digital health training opportunities for public and private sector
stakeholders from the Pacific Island countries, demonstrating our
commitment to advancing digital health.
Question. It was your testimony last year that investing in
telehealth is challenging given that USAID Global Health is heavily
``earmarked.'' However, most countries offer some telehealth to deliver
essential services, and its value was proven during the pandemic. It is
critical to not regress on global digital health transformation gains
as the pandemic recedes and priorities shift.
How is USAID integrating telehealth across its global health
programs?
Answer. USAID strategically integrates telemedicine into its global
health programming to help increase access to quality healthcare in
partner countries. For example, in Ukraine, where over 1,400 health
facilities have been damaged by Russian forces, and over 2,500 medical
personnel have sought safety abroad, USAID funded telemedicine services
to ensure care for populations in need. These telemedicine services
provide care to patients injured by explosions and gunfire, support
vital surgery, and facilitate routine care delivery, including for
pregnant women living beyond the reach of a functioning health system.
As of late last year, the USAID-funded telemedicine program had
facilitated close to 10,000 teleconsultations, providing critical care
in medical deserts created by Russia's aggression.
Telemedicine can help address barriers to accessing quality care
for people who live in remote areas or areas without enough
professional medical personnel. USAID recognizes that effective
telemedicine services require investment in countries' digital
ecosystems. To that end, USAID actively collaborates with partner
countries to strengthen the foundational building blocks that are
essential to providing telemedicine services. This includes investing
in electrification first to ensure reliable digital connectivity,
through Power Africa's Health Electrification and Telecommunications
Alliance (HETA), a $47 million cooperative agreement funded through
integrated funding from USAID/Global Health and Power Africa. HETA is a
public private partnership that crowds in resources from the private
sector along with facilitating business models to help scale up models
for electrification and connectivity of health facilities for long-
term sustainability and operations that are critical for supporting
telemedicine solutions.
USAID's Vision for Action in Digital Health 2020-2024 outlines the
agency's strategic approach to ensure digital health investments
contribute toward strengthening the digital health enabling environment
that is crucial for impactful telemedicine services. We are currently
working on a successor policy which we anticipate launching before the
end of 2024. The updated policy recommits to the four programmatic and
10 operational priorities identified in the Digital Health Vision and
will incorporate insights from implementation and changes in global
health and digital technology since the initial policy's publication.
These policies advance USAID's commitment to the strategic digital
transformation of country health systems and programs, while supporting
the coordination of care delivery and specific digital health
interventions such as telemedicine.
Question. How is USAID working with country partners to determine
stages of telehealth implementation and needs for U.S. assistance?
Answer. The USAID Digital Health Vision encourages the assessment
of country digital enabling environments and capacity as part of health
programming. These assessments can help investments align to and grow
country digital health governance, workforce, and other capacity as
needed to effectively deliver health programs.
Since the Digital Health Vision launched, and propelled by the
COVID-19 pandemic, we have seen tremendous growth in the use of digital
health, including telemedicine, to deliver health information and
services. For example, in India, USAID has supported a variety of
aspects of the Government of India's eSanjeevani cloud-based telehealth
platform that today is in 87 percent of districts (706 of 806),
reaching over 222 million people, more than half of whom are women.
eSanjeevani is part of India's broader national digital health strategy
and architectural blueprint that leverages standards-based and open-
source digital building blocks, sometimes referred to as digital public
infrastructure. USAID has also partnered with the Government of India
to share eSanjeevani with other countries such as Fiji and Philippines.
Through a blended finance facility, USAID also supports private
telemedicine options, such as Karma Primary Healthcare and Critical
Care Hope, to extend service coverage to areas government systems do
not reach, creating a menu of options for users.
To further support country partners, USAID is developing a
telemedicine technical brief that identifies the technological, policy,
and regulatory prerequisites necessary for successful telehealth
delivery. The brief will help USAID Missions support partner
governments in developing scalable telemedicine programs and identify
key opportunities for investment. The technical brief will have cross-
cutting relevance but is targeted for the Asia and Western Pacific
region.
Question. How is USAID collaborating with other global health
funders and the private sector to expand the use of telehealth?
Answer. USAID has a number of collaborations with other key global
health stakeholders, including funders and the private sector, that
help harness the potential of digital health, including telemedicine.
During the COVID-19 pandemic, USAID supported a Digital Health
Center of Excellence (DICE) facility, which was hosted by UNICEF and
delivered in coordination with WHO. DICE, in partnership with the
private sector, including Twilio, provided expert technical assistance
to countries regarding their use of digital tools to support vaccine
delivery and other critical aspects of care.
To understand bottlenecks that local private sector actors face
when developing digital health solutions, including for telemedicine
providers in Africa, USAID funded an analysis that identified critical
challenges African entrepreneurs face in the digital health space. This
analysis included two entrepreneurs that ran telemedicine companies in
Cameroon and Rwanda, respectively. This formative research contributed
to efforts by USAID and other actors to address challenges and promote
successful businesses and localization in the digital health space.
Digital Square, an initiative focused on digital health global
goods which is funded by USAID, the Bill and Melinda Gates Foundation
(BMGF), and others, hosted a request for applications designed to
support digital innovators working in telemedicine. This application
call resulted in the identification and selection of two open source
telemedicine platforms, one in the Latin American region and another
working primarily in India and Bangladesh, for further funding provided
by the BMGF. This funding will help make these platforms interoperable
with larger health systems to enable scale and continuity of care.
Finally, USAID is also a key contributor toward developing the
capacity needed to plan and manage national digital health systems,
including for telemedicine. USAID continues to refine and deliver the
Digital Health: Planning National Systems course, which it created in
collaboration with the WHO, the International Telecommunications Union,
and Digital Square. The course is designed to provide Ministry of
Health officials with the knowledge and skills they need to proactively
manage health sector digital transformation. As a secondary audience,
the course also targets other health sector stakeholders, including
USAID and other donor staff. To date, almost 700 health leaders from
more than 90 countries have been trained through the existing course.
This includes 309 Ministry of Health or government leaders and 80 USAID
staff from 29 USAID Missions as well as Washington, DC based staff.
USAID is currently funding the creation of a new module for the
course focused on telemedicine. The module guides participants in
developing functioning telemedicine services as part of their broader
national digital health architecture and also introduces them to key
resources, such as maturity models, that help identify focus areas for
advancing country readiness for telemedicine implementation. Both new
students and course alumni will have access to the new telemedicine
module, and the initial delivery of the module will be piloted for a
cohort of course participants from Cambodia, Fiji, Kiribati, Nauru,
Samoa, Tonga, Tuvalu, Republic of the Marshall Islands, Federated
States of Micronesia, Palau, Laos, and Mongolia.
Question. What countries has USAID prioritized and why?
Answer. Most investment decisions for health funds are made by
USAID's Missions, as they are best positioned to understand the context
and needs of the countries they serve. Broadly, however, USAID tends to
prioritize telemedicine investments in countries with higher digital
health maturity levels. This is because to effectively and safely
extend the reach and convenience of the healthcare system, telemedicine
requires certain foundational building blocks, which include things
like mobile connectivity, regulatory frameworks, a digitally literate
health workforce, and access to mobile devices. As countries continue
to undergo rapid digital transformation, USAID anticipates seeing
continued growth in demand for telemedicine services, which is why
USAID's Africa and Asia Bureaus are both co-financing the Digital
Health: Planning National Systems module. This module is focused on
helping leaders planning their national system recognize opportunities
to integrate telemedicine with the other core digital services.
Question. How do you envision telehealth fitting into the primary
healthcare and health worker initiative?
Answer. Expanding the use of digital technologies by health workers
is a key area of focus of the Global Health Workforce Initiative
(GHWI). The use of digital technologies, including telemedicine, by
health workers can help expand specific access and reach of services,
critically at the frontline of primary healthcare, by making it more
likely that the right person has the right information at the right
time to make important health decisions. For example, provider-to-
provider telemedicine consultations can help address some of the
challenges presented in geographies that do not have many highly
specialized health professionals. Health workers in primary care
settings can consult with remote specialists to access advice, read
diagnostics, and tailor care. This can also help triage and
appropriately route referrals to higher levels of care, reducing
burdens on the healthcare system and addressing some of the challenges
that health workforce shortages create. USAID's Primary Impact effort,
which aims to accelerate primary healthcare outcomes across Africa and
Asia, aligns well with GHWI priorities as it recognizes health workers
as foundational to advancing primary healthcare and achievement of
health goals. Telemedicine is part of the suite of interventions the
Agency is exploring to meet context specific country needs.
Question. What funding could support USAID to execute on your
Vision for Action in Digital Health?
Answer. The Agency funds digital health activities as an integrated
component of all our health programs (e.g., TB, MCH, HIV). Digital
health is of critical importance to USAID's global health efforts and
is essential for USAID to achieve our global health sector goals and
impact.
Question. A well-organized, anti-rights movement threatens to
undermine global progress, particularly reproductive and LGBTQ+ rights.
Earlier this month, Uganda's constitutional court cited the U.S.
Supreme Court's Dobbs decision overturning Roe in its upholding of a
sweeping anti- LGBTQ+ law that criminalizes homosexuality and same-sex
marriage.
How does the budget facilitate USAID's efforts to prevent
backsliding globally and seek to expand access to sexual and
reproductive rights?
Answer. Sexual and reproductive health and rights (SRHR) are not
only women's issues--they affect everyone. Advancing SRHR is
fundamental to achieving gender equality and promoting and protecting
human rights.
The United States, through USAID, is the largest bilateral donor to
global voluntary family planning assistance, a commitment spanning more
than five decades, and is committed to investing in high-quality,
client-centered reproductive health and family planning services that
improve women's well-being, promote gender equality, and give
individuals greater control over their bodies and lives. USAID, through
PEPFAR, is also committed to the important work of delivering
comprehensive, client-centered services for key populations (including
LGBTQI+ people) that include prevention, testing, and treatment of HIV
and other sexually transmitted infections, mental health and
psychosocial support, and related health services to reduce stigma and
discrimination.
Question. It has now been more than 2 years since the Biden
Administration launched PREPARE, the ``whole of government''
international climate adaptation and resilience initiative.
Where has this initiative been deployed?
Answer. According to fiscal year 2023 data, the U.S. government has
climate adaptation activities active in 115 countries in South America,
Central America, the Caribbean, Sub-Saharan Africa, Middle East and
North Africa, Asia, and the Pacific. Fiscal year 2022 was the first
partial programmatic cycle after PREPARE was launched in November 2021.
Question. What are the indicators you have set to define its
success?
Answer. PREPARE developed a Monitoring, Evaluation, and Learning
plan to articulate how all participating departments and agencies can
collect and communicate the outputs and outcomes of U.S. government
international climate adaptation work and investments. This plan is
helping to transparently communicate to Congress and other stakeholders
the collective results from PREPARE and will allow departments and
agencies to share best practices for adaptation programming, compacts,
transactions, and activities. This Plan includes five standard
indicators for the performance of U.S. government actions on
adaptation. USAID and State Department are supporting adoption of these
indicators across the implementing agencies. The use of these
indicators is required as relevant for the types of work that agencies
conduct. The indicators include:
--Number of people trained in climate change adaptation supported by
USG assistance
--Number of institutions with improved capacity to assess or address
climate change risks supported by USG assistance
--Number of laws, policies, regulations, or standards addressing
climate change adaptation formally proposed, adopted, or
implemented as supported by USG assistance
--Amount of investment mobilized (in USD) for climate change
adaptation as supported by USG assistance
--Number of people supported by the USG to adapt to the impacts of
climate change
-- This indicator includes in fiscal year 2024, for the first
time, a disaggregate to allow USAID and State to account
for the number of people supported to adapt to climate
impacts using climate information services, including early
warning systems.
Question. Has PREPARE met any of those benchmarks already?
Answer. PREPARE has seen positive results under all three of its
pillars. For example, in Pillar 1, PREPARE has spurred interagency
collaboration between USAID, State, NOAA, NASA, and increasingly with
U.S. finance agencies MCC, DFC, and Department of Commerce on expanding
climate information services, including early warning systems to close
the gaps in access to critical, life- saving information. Under Pillar
2, USAID and State have collectively supported 75 partner governments
on their adaptation planning in critical sectors, including food and
agriculture, water, infrastructure, and health. Under Pillar 3, PREPARE
has made progress on uniting the unique financing options that USAID,
State, DFC, EX/IM, USTDA, and Commerce offer to address the challenge
of driving greater private investment into climate adaptation. This has
included the development, launch, and initial funding rounds of the
PREPARE Adaptation Window led by USAID in partnership with State and
the DFC and crowding in partner capital from Nordic governments.
PREPARE has also made significant progress with U.S. and global
companies through the PREPARE Call to Action. USAID and the State
Department will publish the second annual progress snapshot later in
2024, which will share progress against objectives.
Question. USAID's Climate Strategy rightly recognizes the
compounding relationship between violent conflict and climate change.
How is USAID prioritizing and implementing conflict prevention and
climate action, particularly in sensitive regions like the Indo-
Pacific?
Answer. USAID works in many places experiencing conflict and
climate impacts in some form--including in the Indo-Pacific. It is
critical that USAID integrates conflict mitigation and conflict
sensitivity into our climate change strategy and programming. In
practice, this requires identifying where conflicts are precipitated or
worsened by acute climate shocks and implementing measures tailored to
that specific context.
As it pertains to the Indo-Pacific, USAID is working to advance
climate resilience for communities that are in conflict-prone areas or
have experienced conflict in the past. For example, in the western
Indo-Pacific, USAID is currently working to advance climate adaptation
in both Sri Lanka and the Maldives. The Agency is helping build the
capacity of the private sector, civil society, and partner governments
to respond and adapt to climate change in ways that contribute to
sustained, inclusive, market-based growth. In the Maldives in
particular, work is focused on how to increase the amount of climate
finance available to meet the impacts of the lowest lying country on
Earth, and ultimately help communities overcome the impacts of sea
level rise and other climate impacts.
Through our commitment outlined in the Global Fragility Act in
Papua New Guinea, we recognized that drivers of conflict, such as land
ownership, access to natural resources, and the power and economic
benefits derived from both, will be exacerbated by climate change. Our
interagency 10-year strategy will help alleviate the negative
consequences of climate change by supporting innovative and alternative
approaches to doing business.
USAID is also prioritizing the recruitment and onboarding of
subject matter experts (SMEs) that provide Agency and USAID Missions
with technical leadership and assistance in the design, management, and
evaluation of climate programs; strategic planning and program
management; and coordination with the interagency and other donors.
These experts will work towards the integration of climate and water
security across other sectors as a means of advancing resilience across
the development portfolio.
USAID is doing this work around the world, for example:
--USAID's Bureau for Conflict Prevention and Stabilization has
provided over $20 million in funding to support over 10 current
peacebuilding and reconciliation activities focused on
addressing the root causes of conflicts related to climate,
natural resource management, water, land, the environment, and
sustainable agriculture. These activities are ongoing in
locations as diverse as the Kyrgyz Republic, Kenya, and the
Dominican Republic/Haiti border region, in which natural
resource availability and vulnerability due to environmental
and climate shocks is a central driver of conflict.
--USAID is also working to better anticipate and prepare for climate-
related conflict by integrating climate and food security
analysis through the Famine Early Warning System Network (FEWS
NET). With an initial focus on three Global Fragility Act
countries--Mozambique, Togo, and Haiti--this effort combines
the gold-standard climate and food security analyses that FEWS
NET is known for with new data and machine learning methods to
improve our understanding of how climate, instability, food
insecurity, and conflict interact to impact peoples' lives.
This effort will enable targeted investment and tailored
interventions that directly address climate change's impact on
conflict.
Regionally, USAID is working:
--In the Middle East and North Africa (MENA), which is the most
water-scarce region worldwide with 60 percent of its population
exposed to high water stress. In this region, addressing
climate risks and water security are critical for long-term
regional stability and reducing impacts of droughts, food
insecurity, heat stressors, and infectious diseases, all of
which are drivers of conflict. USAID has integrated climate
into our programming working in critical conflict hotspots to
empower communities to resolve conflicts over land, water, and
natural resources through increasing equitable access to land
and water, establishing sustainable natural resource management
practices, and strengthening traditional dialogue and conflict
resolution mechanisms.
--In Central Asia, USAID continues to support cooperation around
water sharing among the Central Asia Republics. A current
effort is focused on the development of and training on
software utilizing satellite data to help countries to assess
and track seasonal mountain water supplies and flows.
Recognizing that effective management of water resources relies
on precise prediction of water availability as a basis for
local, national, and transnational decisionmaking, USAID
supported the addition of a glacier monitoring and increased
temporal and spatial resolution tool that allows real-time
monitoring of Asia's snow cover, hydrological forecasting,
daily snow water equivalent, snow depth, snow melt, and short-
term forecasting of water availability. Based on increasing
demand, USAID will continue to distribute this software package
and training to countries in South and Central Asia.
Question. Does the funding in the fiscal year 2025 budget
sufficiently allow you to elevate the role of the climate priorities at
USAID and appoint senior level officials with authority to develop a
new transformational climate change strategy for foreign assistance and
development?
Answer. Yes. The President's fiscal year 2025 budget request
includes $3 billion in discretionary funding across the State
Department and USAID. If enacted, this funding would allow USAID to
better implement our ambitious eight-year Climate Strategy, which
launched in 2022, and advance key initiatives, such as the President's
Emergency Plan for Adaptation and Resilience (PREPARE). USAID continues
to make progress on our ambitious 2022-2030 Climate Strategy and has no
current plans to draft a new strategy.
With sufficient budget support, we aim to achieve the following
targets by 2030:
--Reduce global CO2 emissions by six billion tons
--Protect, restore, and manage 100 million hectares of natural
ecosystems for climate benefits
--Support 500 million people to be more climate resilient
--Mobilize $150 billion in public and private finance for climate
actions
--Support 80 countries with Nationally Determined Contributions and
National Adaptation Plans
--Increase equitable engagement with critical populations
We are also seeing significant demand from partner countries for
U.S. bilateral development assistance to address climate impacts and
enable a transition to sustainable, resilient economies. USAID's
Climate Strategy elevated climate in the Agency's programming and
operations. The Strategy, combined with other Agency priorities such as
localization, has the potential to contribute to transformational
change if fully funded.
Regarding the appointment of senior officials, USAID has benefitted
from having a Chief Climate Officer since 2021. This coincided with the
establishment of an Agency leadership council on climate change the
same year, which is composed of senior officials from every USAID
bureau. This structure provides USAID significant high-level leadership
and oversight of climate change efforts.
USAID's Climate Strategy calls on all missions to contribute to the
Strategy and appoint a senior climate champion. Engagement from across
all regions and sectors is leading to greater awareness of how climate
is impacting development and human welfare. With the funding requested
in the fiscal year 2025 President's budget request, missions will be
able to launch more holistic programming that integrates climate
resilience and environmental stewardship objectives.
______
Questions Submitted by Senator Jerry Moran
Question. For fiscal year 2024, USAID will have to cope with a
five-percent reduction in funding for global food security and
agricultural development programs like the Feed the Future initiative
as compared to fiscal year 2023.
Overall, how will this reduction affect your agency's ability to
help developing countries' agricultural sectors address long-term
problems with lack of resilience in food supply chains?
Answer. We recognize the challenging tradeoffs that need to be made
in the budget process. We are emerging from a global food crisis of
historic proportions, for reasons that are well known--including
disruptions due to COVID-19, conflicts, erratic and acute weather,
including prolonged droughts, and Russia's full-scale invasion of
Ukraine. The reduced funding in the fiscal year 2024 foreign assistance
bill included a reduction to the key accounts that fund food security,
as well as a 5 percent reduction to the directed level for food
security programs. These reductions will inevitably constrain our
ability to maintain bilateral investments we have made in years past.
It will also limit any acceleration in progress that we hope to achieve
as we support communities building back from the recent compounding
crisis and hinder our ability to respond to new crises.
Despite those challenges, we are grateful to Congress for its
longstanding and bipartisan support for Feed the Future. The data-
driven approach of Feed the Future demonstrates the success the
initiative has had. In areas where Feed the Future has worked, poverty,
hunger, and child stunting have all declined by 20 to 25 percent on
average during the first decade of the initiative.
Question. How important are USAID's agricultural development
investments in addressing the root causes of hunger and malnutrition,
and preventing humanitarian food and nutrition crises?
Answer. Investments in agricultural development have been
incredibly successful at preventing the root causes of hunger and
malnutrition. USAID did an assessment to measure the impact of Feed the
Future over its first decade and found that, in areas where we worked,
there was a 19 percent reduction in the prevalence of extreme poverty,
a 26 percent reduction in the prevalence of child stunting, and a 21
percent reduction in the prevalence of moderate and severe hunger.
Agriculture research investments through USAID also have an
outsized positive impact on our agriculture development goals.
Investments in agricultural research that lead to sustainably increased
productivity and dynamic agri-food systems alleviate poverty at higher
rates than increased productivity in any other sector. For the poorest
economies, a 1 percent increase in agricultural GDP yields roughly two
to four times the impact on extreme poverty as comparable increases in
labor productivity in industry or services. USAID's demand-led
agricultural research can simultaneously address poverty reduction,
food security, nutrition, and environmental goals.
Historically, agricultural research investments have produced a
seven- to ten-fold rate of return. For example:
--When drought hit Southern Africa in 2016, six million farmers were
able to harvest resilient yields by planting new, drought
tolerant maize varieties developed through Feed the Future
research support. Across 13 countries, small-holder farmers
grew enough to make $160 million more during the drought than
if they had grown regular maize.
--In the dry corridor in Central America, the Bureau for Humanitarian
Assistance has promoted climate smart practices that have
extended the number of months that vulnerable households have
sufficient corn to eat by 50 percent and increased bean yields
by 25 percent.
These Feed the Future investments also benefit U.S. farmers. As
diseases that threaten foreign crops and livestock make their way to
our shores, U.S. farmers and ranchers benefit from the work Feed the
Future is already doing to combat them. For example:
--Feed the Future funds multiple efforts to combat wheat stem rust, a
disease that threatens our $10 billion-a-year wheat industry.
--The Feed the Future Innovation Lab for Sorghum and Millet developed
new sorghum varieties that withstand damage caused by the green
aphid, based on what we learned in Ethiopia. A decade ago,
these aphids had reached 17 states in the U.S. and cost nearly
$8 million in losses in 2013 alone.
Question. How can we better help food insecure communities become
more self-sufficient and less reliant on US emergency assistance?
(Resilience)
Answer. The Global Food Security Strategy (GFSS) for 2022 through
2026 emphasizes strengthening resilience as a way to meet Agency food
security objectives and reduce reliance on humanitarian assistance.
USAID uses resilience-strengthening approaches to protect and
improve food security (and other measures of well-being) across our
work, with special attention given to areas of recurrent and protracted
crises where greater resilience is essential for reducing humanitarian
need and assistance.
To help food-insecure communities become more self-sufficient and
less food insecure, it is important to identify the main shocks and
stresses that might threaten food security--such as drought, disease
outbreaks, disasters, and conflicts--and invest in strengthening
multisectoral sources of resilience that could help counter or manage
those risks. These sources of resilience can include the assets,
skills/strategies, services, and relationships that individuals,
households, and communities rely on during shocks or stresses--such as
skills and knowledge, access to financial services, diversified
livelihood options, social networks and safety nets, resilient market
systems, and access to information, including disaster early warnings.
By strengthening resilience in these ways, USAID programming can
help sustain food security beyond the end of an activity, even if
future shocks and stresses occur, and avert humanitarian need and/or
disasters. Examples include:
--In the Sahel, the USAID-supported Resilience in the Sahel Enhanced
(RISE) program (2014-2019) integrated and coordinated
humanitarian and development efforts to address a vicious cycle
of crises. RISE focused on strengthening households' sources of
resilience, such as hazard insurance, disaster preparedness,
asset ownership, bridging social capital, and access to
financial resources, infrastructure, formal safety nets, and
information. The final evaluation found that, despite drought,
floods, COVID-19, and rising food prices, households that
participated in RISE had levels of food security 10 percentage
points higher and higher self-reported ``ability to recover''
than non- participants. RISE also directly prevented 1 in 5
extremely vulnerable individuals from experiencing severe food
insecurity.
--In Uganda, the Apolou and Nuyok Activities (2017-2023) are an
extraordinary example of how USAID's resilience-strengthening
approach can improve food security and nutrition. The
activities took place in the Karamoja region during mounting
shocks and stresses--such as major conflicts and market
disruptions from COVID-19. They included more than 15
interventions to strengthen households' sources of resilience,
such as expanding health facility outreach, repairing community
wells, strengthening livelihoods through a graduation approach,
and building government capacity to test the quality of
veterinary inputs. During the Apolou Activity, the percentage
of women with sufficient dietary diversity nearly doubled
(16.4% to 30.5%), despite impacts of the pandemic and increased
conflict in Karamoja.
During this Farm Bill reauthorization process, USAID is proposing
that Congress consider technical changes to the Food for Peace Act to
maximize the effectiveness of resilience programs. For example, by
shifting some U.S. commodities from Title II non-emergency programs to
emergency programs, USAID would maintain the same level of commodity
procurements from U.S. producers while offering implementing partners
the ability to fully design non-emergency programs to address the root
causes of hunger. Giving partners more choice in programming would
improve the outcomes of these programs and help decrease reliance on
U.S. assistance in the long term.
Question. Investments in agricultural research and development,
including those within the Feed the Future initiative like in the
CGIAR--the largest public agricultural research network in the world--
and the Innovation Labs like the ones at Kansas State University in my
home-state, are crucial to long-term global food and nutrition
security.
How are USAID and the State Department prioritizing these
investments in international agricultural R&D, and how do they
contribute to farmers' ability to grow nutritious foods and raise
livestock in light of the many challenges smallholder farmers in target
countries face like the high price of fertilizer, pests and diseases,
and changing weather patterns, including drought?
Answer. USAID prioritizes Feed the Future research that is
evidence-based and purpose driven, as outlined in the U.S. Global Food
Security Research Strategy. Feed the Future research investments are
informed by (i) the likelihood of advancing practices, policies,
knowledge, or technologies; (ii) the value to society of the outputs
generated from successful research; and (iii) the existence of a unique
and compelling need for the U.S. Government to fund the research. In
practice, USAID and our interagency partners combine broad stakeholder
engagement, expert consultations, and formal economic analysis to
determine the potential benefits of our research investments.
Demand-led agricultural research has historically produced a seven-
to ten-fold rate of return on investment. Research is also a powerful
driver of poverty reduction, with the long-term effect of agricultural
research and productivity growth making food cheaper. In low income
countries, cheaper food prices play a major role in poverty reduction
and economic development.
For the poorest economies, a 1 percent increase in agricultural
gross domestic product yields roughly two to four times the impact on
extreme poverty as comparable to increases in labor productivity in
industry or services.
Economic growth brought about by agricultural-led growth can also
improve nutritional outcomes. Higher incomes and more affordable, safe,
nutritious foods enable households to move to a more diverse diet that
can improve health and nutrition outcomes.
Over the past 50 years of CGIAR research investments, there has
been a 10-dollar return on every dollar invested in research and
development. Crop technologies developed with CGIAR investments have
been adopted on over 221 million hectares globally, resulting in
substantial economic welfare gains amounting to $47 billion annually.
Notably, these benefits have been accrued across a diversity of
geographies, crop varieties, and technologies leading to lower food
prices and higher incomes.
Investments in U.S. university-led international agricultural
research have also led to over $8.4 billion in economic purchasing
power parity returns on our cumulative investment of $1.24 billion over
the past 40 years. Impacts go beyond direct economic benefits--analysis
of U.S. university investments in the Collaborative Research Support
Program (CRSP) and Feed the Future Innovation Labs (FtFIL) found
improvements in overall human health, dietary quality and
diversification, and environmental impacts.
Question. How, too, has Feed the Future harnessed this return on
investment and spurred gains in ending hunger and malnutrition, even
amid the deep challenges of the last few years? For those who wonder
why we would invest in ending hunger, how does improved global food
security benefit our national security here in the U.S.?
Answer. U.S. investments in foreign agricultural research through
the Feed the Future Initiative benefit the world's poorest regions
while also providing major benefits in the United States.
Technologies developed with U.S. aid enhance global agricultural
productivity, reduce climate risks, and combat pests and diseases. For
example, many American producers of sorghum now plant improved
varieties developed since 1979 through the Sorghum and Millet
Innovation Lab and its predecessor programs. These programs developed
sorghum varieties resistant to pests like the greenbug aphid and
sugarcane aphid. A subsequent economic impact study found that USAID's
greenbug aphid-resistant sorghum varieties had saved American farmers
$389 million in 1989 alone. At that point, funding for the sorghum
program had totaled $44 million (in constant 1989 dollars). The U.S.
sorghum research generated nine times its total cumulative cost, and
the benefits can reasonably be expected to have continued for many
subsequent years.
We have similar evidence of benefit spillover in wheat and beans.
For example, the estimated impacts of international wheat research on
the U.S. is between $140 to $180 million annually, representing a
benefit-cost ratio of between 32:1 and 40:1. International bean
research investments led to the development of 40 bean varieties now
commercially grown in the United States.
Global food security contributes to U.S. national security by
improving overall global stability. By bolstering food security in
regions prone to scarcity, U.S. foreign agricultural aid programs
effectively mitigate underlying drivers of conflict, like economic
grievances and resource competition. This proactive approach is not
only cost-effective but also crucial for averting the human and
financial toll of crises on both affected populations and the
international community.
Through collaborative efforts with key stakeholders over multiple
decades, institutions like U.S. universities, CGIAR research centers,
and USAID have laid the groundwork for proactive crisis management,
highlighting the strategic importance of sustained engagement in
foreign agricultural research programs.
Question. For decades, the US government has directed humanitarian
aid to hot spots like Haiti and Sudan. In a study done by the U.S.
Government Accountability Office, published in March of 2023, it was
reported that USAID provided $2 billion dollars to support
reconstruction and development in Haiti during fiscal years 2010-2020.
Yet the situation in both regions is deteriorating. In Haiti, there's
total state collapse and violence is on the rise. In Sudan,
paramilitary forces are wreaking havoc on the population, causing mass
atrocities. In both cases, the U.S. government has relied on a network
of large government aid contractors and international organizations
that have little connection to the communities they serve to disburse
this aid. I'm not convinced our status quo approach to delivering
foreign aid is working. USAID has proposed funding both the crises in
Haiti and Sudan. What assurances can you give us that the agency plans
to spend this money in new ways that will deliver better results and
not just invest the way it always has?
Answer.
Haiti
Addressing severe food insecurity, protection, and displacement
concerns are an integral part of stabilizing Haiti, but humanitarian
assistance alone will not solve the crisis nor provide the future that
the Haitian people deserve. USAID's Bureau for Latin America and the
Caribbean provides continued investments in job creation, education,
and a healthy functioning private sector. However, the enabling factor
continues to be a secure and stable Haiti, which we believe will be
supported by the deployment of the UN-authorized Multinational Security
Support (MSS) mission. Continuing to provide targeted humanitarian
assistance in conjunction with both security and development efforts
remains critical for addressing the severe challenges facing Haiti.
At the agency level, USAID has made improvements to address the
cited concerns, including the following:
1. Awarded a new monitoring, evaluation, and learning contract to
collect and analyze data to further build the knowledge and evidence
base on USAID programs and the local context; and
2. began utilizing the Agency's new indicator data management
system, which consolidates important performance indicator data, as
well as information about each awarded activity, allowing timely
reporting and adaptive management.
In addition, USAID has an agency-wide commitment to localization
which is being realized in Haiti today. USAID's Mission in Haiti is
planning procurement that is supportive of USAID's global target of
providing at least a quarter of all funds directly to local partners by
the end of fiscal year (FY) 2025. Between fiscal year 2021 and fiscal
year 2022, USAID/Haiti increased the percentage of funding to local
partners from 10 percent to 22 percent. By the end of 2023, USAID/Haiti
had 45 program-related awards, of which thirteen are to local
organizations.
USAID's Bureau for Humanitarian Assistance (BHA) is committed to
serving the most vulnerable populations in Haiti by providing life-
saving assistance. USAID's humanitarian partners conduct needs
assessments that determine beneficiaries based upon vulnerability
criteria. We require our partners to have robust safeguards and risk-
mitigation systems in place so that humanitarian aid reaches those who
need it most and avoids fraud, waste, or abuse. USAID closely monitors
partner activities to ensure that activities are reaching
beneficiaries, including using third-party monitoring (TPM) to
complement our monitoring efforts and provide an extra layer of
independent verification that USAID-funded humanitarian assistance is
reaching intended beneficiaries.
For the humanitarian response in Haiti, USAID is providing direct
support to 28 partners--including one local NGO--and indirectly we are
supporting another 26 local partners. In addition, we support numerous
local organizations through the UN's Women Peace and Humanitarian Fund,
a pooled fund managed by the UN Development Programme and UN Women that
supports several local protection organizations throughout Haiti.
Applying for U.S. Government funding can be complex and time-intensive
for smaller organizations, so local NGOs often choose to begin by
partnering with existing USAID international partners. In addition,
USAID is advocating for and supporting a UN-led pooled fund that is
expected to begin operations soon and will prioritize funding to local
NGOs.
Sudan
In Sudan, following the outbreak of conflict in April 2023, USAID
quickly pivoted our broad portfolio of assistance in response to the
changing context, including scaling up humanitarian response in
locations of need where we had not worked before, such as urban centers
in Khartoum and new states such as Gezira and Gedaref outside of our
traditional humanitarian areas of operation.
We also shifted humanitarian assistance funds to local response
efforts. In fiscal year 2023, USAID/BHA provided an estimated $29
million to support over 40 local partner organizations, such as women-
owned local organizations, through our direct partnerships with NGOs
and public international organizations. In fiscal year 2024 we have 29
sub awardees through which we are programming $9.6 million. This is on
top of $6.8 million going towards Emergency Response Room support.
Local organizations will continue to be the bedrock of this
humanitarian response based on their flexibility, unique access,
important networks, and trust and acceptance among communities.
USAID/BHA and USAID's Office of Transition Initiatives have also
scaled up funding for local response networks at the community level.
Since the outbreak of the war in April 2023, USAID/Sudan's Democracy &
Governance office and Office of Transition Initiatives have provided
$6.7 million to support local responder networks, and USAID/BHA has
provided $6.1 million to these local organizations.
USAID has prioritized humanitarian partners that are nimble and
forward-leaning to continue to push for cross-border and cross-line
humanitarian assistance, including scaling up support for NGOs that
demonstrate their ability to pivot existing assistance to safely
respond to new emergency needs.
Question. In Darfur, attacks on civilians and communities are
occurring based on ethnicity, echoing those of the genocide that began
20 years ago, the year I last travelled to Sudan. In December 2023,
Secretary of State Blinken released a determination that members of the
Sudanese Armed Forces (SAF) and the Rapid Support Forces (RSF) had
committed war crimes in Sudan, and that the RSF and allied militias
committed crimes against humanity and ethnic cleansing. Why has USAID
recently cut funding for key atrocity prevention and peacebuilding
programs in Sudan in the wake of Secretary Blinken determining that the
parties to the conflict have and continue to commit war crimes, crimes
against humanity, and ethnic cleansing? How is USAID working to prevent
further atrocities and achieve accountability for atrocities committed
in Sudan, especially following the determination issued by Secretary
Blinken in December?
Answer. USAID has not cut overall funding for Sudan and has
significantly increased its humanitarian support to the Sudanese
people. Due to necessary programmatic pivots following the outbreak of
conflict, USAID reviewed the performance of its existing partners and
redistributed funding from partners that were no longer able to deliver
on their programs to those that can, as part of our commitment to the
effective use of taxpayer resources. The funds being redistributed will
remain in the USAID/Sudan portfolio, in the sectors for which they were
originally programmed. USAID believes that this is the most efficient
and responsible use of resources to cover our immediate key objectives
in Sudan, which includes support for atrocity documentation,
peacebuilding, and Sudanese civil society.
Question. In December 2023, I was alerted by the Food and
Agriculture Association that they were experiencing issues delivering
animal feed to Gaza. In response, I called Ambassador Jack Lew in
Israel to make him aware of this issue, and it was the first time he
had heard of the problem. The entrance of animal fodder into Gaza is
crucial to the nutrition status of the population, especially of
Children. FAO's inability to deliver the feed placed uncertainty on the
future operations of the organization and the wellbeing of Gazans. Is
your agency aware of issues delivering animal feed into conflict zones
and if so, how can Congress support the ability of USAID to ensure
animal fodder is successfully delivered to regions experiencing
conflict?
Answer. USAID is aware that animal feed had not been allowed into
Gaza for several months, despite prior written approval from the
Government of Israel authorizing 1,500 metric ton (MT) of feed to enter
Gaza. We learned from the UN Food and Agriculture Organization (FAO)
that on April 6 and 7, six trucks carrying 100 MT of animal fodder were
able to enter Gaza for the first time since October 7, with additional
trucks anticipated to cross in the coming days.
We are working closely with the Governments of Israel, Egypt, and
other partners in the region to increase the flow of both humanitarian
aid and commercial goods into and within Gaza. This includes advocacy
to reduce bottlenecks at inspection and crossing points and customs
limitations on the volume of trucks. We are also advocating to improve
deconfliction efforts, as humanitarian access is also constrained by
ongoing military operations and by increasing insecurity and civil
unrest.
While USAID does not currently fund animal fodder in Gaza, improved
access into Gaza will facilitate the delivery of the many humanitarian
and commercial items that are desperately needed in Gaza, including
support for livestock.
SUBCOMMITTEE RECESS
So thank you for your testimony and your leadership. And
the hearing record will remain open for written questions until
5:00 pm on Tuesday, April 16.
And with that, this hearing is adjourned.
[Whereupon, at 4:00 p.m., Tuesday, April 9, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]
STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR
FISCAL YEAR 2025
----------
WEDNESDAY, MAY 15, 2024
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 2:03 p.m., in room SD-138, Dirksen
Senate Office Building, Hon. Christopher Coons (Chairman),
presiding.
Present: Senators Coons, Merkley, Van Hollen, Schatz, and
Hagerty.
Strengthening American Competitiveness: Examining the Roles of the U.S.
International Development Finance Corporation, Export-Import Bank of
the United States, and Millennium Challenge Corporation
OPENING STATEMENT OF SENATOR CHRISTOPHER COONS
Senator Coons. Ladies and gentlemen, this hearing of the
Senate Appropriations Committee, Subcommittee on State and
Foreign Operations and Related Programs will come to order. I'd
like to thank our three witnesses today and the Members of this
subcommittee who will be joining us.
The subcommittee meets today to review the fiscal year 2025
budget requests for three important agencies funded by the
subcommittee that play a central role in strengthening American
competitiveness, the International Development Finance
Corporation, the Export-Import Bank, and the Millennium
Challenge Corporation.
Our witnesses are Scott Nathan, the CEO of the DFC, Reta Jo
Lewis, the president and chair of the Board of Directors of
EXIM, and Alice Albright, the CEO of the Millennium Challenge
Corporation. They each have had distinguished careers in public
service and in the private sector and have been in their
current role since being confirmed in 2022. So, you have
valuable perspectives and insights to share from your
experience.
Since I became chairman of the subcommittee one of my goals
has been to ensure we're using U.S. foreign assistance to
enhance American competitiveness. And to do this, we have to
strengthen our standing as a partner of first choice by
supporting economic resilience and growth in ways that have
mutual benefits for our partner governments, local communities
and our own domestic economic interests.
State and AID play critical roles in this effort but we
have to ensure we're leveraging other agencies under the
subcommittee's jurisdiction including the three agencies you
represent. The unique and valuable roles of your agencies will
be the main focus of our hearing.
First, the DFC, our country's development finance
institution focused on private sector led development in some
of the most critical sectors of our time for which the fiscal
year 2025 request is just over a billion dollars, an increase
of $25 million above enacted. The Millennium Challenge
Corporation, a development leader with a model that emphasizes
transparency, accountability, country commitments to fighting
corruption, economic freedom, and civil liberty, for which the
request is $937 million, an increase of $7 million over enacted
and EXIM as the U.S. Export Credit Agency with a mission of
supporting American jobs for which the request is $145 million,
an increase of $5 million above enacted.
You are all critical to advancing economic resilience and
growth in promoting U.S. interests. That's why in the fiscal
year 2024 appropriations bill we provided for a new initiative
called the Economic Resilience Initiative which provides $265
million in new and more flexible funding for investments in
strategic infrastructure, critical mineral supply chains,
energy security, digital security, and macroeconomic growth. We
have to have an acronym, it's government--provides new
authority to leverage the unique roles of the state and foreign
operations subcommittee funded agencies like DFC, EXIM, and the
Treasury Department in a more comprehensive and strategic
manner.
This funding will support our ongoing efforts to counter
malign influence and address mutual interests including in the
Pacific and Southeast Asia where for example, the Treasury
Department has just announced a plan to leverage new funding
provided through this initiative to guarantee billions in loans
for infrastructure, transportation, and energy transition work
in partner countries.
The application of this ERI is global. Chair Murray and I
recently traveled to Southern Africa to discuss the potential
strategic impact for example, of investments in the Lobito
Corridor, a project that aims to lay or improve over a thousand
miles of railroad to help transport critical minerals from
Zambia and the DRC to Port Lobito in Angola.
But this is not just about mineral extraction. Along that
quarter, EXIM and DFC are making investments including through
financing for U.S. exports to enhance sustainable development
for local communities. And the Millennium Challenge Corporation
will be soon signing a compact with Zambia to further leverage
the profound benefits of this quarter. MCC will focus on
transportation and logistics for agriculture to help increase
private sector investment in partnership with the work being
done by EXIM and DFC.
Zambia is a priority as well for USAID's economic
resilience work including through ERI, where we're helping the
government demonstrate the dividends democracy can pay while
mitigating the risks from a significant national Chinese debt
burden.
So, we're demonstrating that even in this tightly
constrained budget environment there's more we can do to
coordinate across what's called the Inter-Agency to leverage
all of our tools to enhance our economic diplomacy and
facilitate sustainable development, and your agencies play a
key role in that
Investing in emerging markets and strategic sectors
alongside our like-minded partners and allies consistent with
international best practices for environmental and social
safeguards and ensuring U.S. businesses have the chance to
compete on a level playing field is both good development
policy and an effective way to strengthen U.S. National
economic security.
That's particularly true when we're talking about
countering Beijing's monopoly on critical mineral supply chains
and processing and the need to build and secure new digital
networks or in helping our partners diversify their energy
production and sources.
We're never going to outspend the PRC dollar-for-dollar in
official development assistance but we can outmatch them when
it comes to leveraging our coalition of like-minded partners
and the incredible depth and strength of the American capital
markets in our private sector. We also differentiate ourselves
from the PRC by upholding values of transparency and
accountability, promoting local ownership, protecting human
rights and other foreign investment best practices.
So, in conclusion, I look forward to discussing how each of
you view the unique roles of your agencies, how we can help you
better align your authorities and your resources to allow you
to best bring your agencies to bear to these tasks and while we
continue to make the most of every appropriated dollar, we
cannot do more with less.
So, this is also a chance for you to discuss the challenges
you're facing and the opportunities we can seize if we increase
our investments in you. Thank you.
Senator Hagerty, would you like to make any opening
remarks?
OPENING STATEMENT OF SENATOR BILL HAGERTY
Senator Hagerty. Well, thank you, Chairman Coons. It's good
to be with you, and it's good to be with this esteemed group of
leaders here today. Mr. Nathan, I'd like to start with you, if
I might. It's good to see you again.
You and I have talked about this on numerous occasions. The
DFC has incredible potential to be a strategic tool for America
on a worldwide basis. I'm concerned though that the agency has
been distracted by ideology and that we're not offering the
clear and compelling alternative to predatory Chinese funding.
That is such an important aspect of your strategic mission.
And I'd like to start out with what I view as perhaps the
most critical geostrategic tool that we can deploy especially
in the region that I'm talking about, the Indo-Pacific. When I
served in my previous role in Japan, I worked very closely with
the Japanese to displace Russian energy from their energy
supply.
Senator Coons. Senator, if I might interrupt briefly. We
were going to let the witnesses give their opening statements
and then turn to questioning. Were you making just an opening
comment about the three agencies or launching into questioning,
sir?
Senator Hagerty. I was--I'll let this----
Senator Coons. My apologies if--I was just inviting a brief
opening comment, which is typically with the Ranking Member.
Senator Hagerty. Let me say this, welcome to all of you
again. Look forward to your testimony.
Senator Coons. Thank you, Senator. So, we'll now invite
Senator Schatz. Did you have a comment you need to make?
Unfortunately, just for the awareness of our witnesses, we will
have a two-vote series that begins in about 5 minutes. So, we
will either have to suspend and just go vote and come back or
we may have a transition to who's chairing to allow some
members to go and vote and come back. Let us worry about that,
you focus on your testimony.
The Honorable Scott Nathan, let me invite you to make, in 5
minutes or so, if you could, your testimony to the committee
today. Thank you.
STATEMENT OF HONORABLE SCOTT NATHAN, CHIEF EXECUTIVE
OFFICER, U.S. INTERNATIONAL DEVELOPMENT
FINANCE CORPORATION
Mr. Nathan. Well, thank you very much Chairman Coons,
Senator Hagerty, Senator Schatz it's a pleasure to be here and
I appreciate the opportunity. I want to thank Congress and
especially this Committee for its continued support of the
Development Finance Corporation. Since Congress established
DFC, we've used the tools you provided us to deliver on the
Build Acts Mandate to make development and strategic impact
around the world.
DFC's financing for the private sector enables reliable
access to energy and supports high quality infrastructure
including railways, ports, airports, and safe and secure
digital connectivity throughout the developing world. We're
investing to strengthen health and food systems while also
supporting the small businesses that are vital to generating
jobs and opportunity.
Unlike the development approach of the PRC or other
strategic competitors, DFC's efforts are directed towards
supporting private entities, mobilizing private capital, and
building resilient market economies. We're guided by the belief
that developing a robust private sector is the best way to
alleviate poverty over the long term and strengthen the
economic and strategic positions of our partners around the
world.
We need to show up and offer our partners a choice so they
don't feel trapped into accepting too much debt or end up with
projects that aren't needed or of poor quality. In the nearly 5
years since Congress created it, DFC has made great progress in
this regard.
Last year, DFC committed a record $9.3 billion across 132
transactions. Nearly double our fiscal year 2020 total and we
did this in a cost effective and efficient manner. We deployed
roughly $500 million into equity investments but with the
remaining $8.8 billion in transactions requiring only $110
million of appropriations, that's great bang for the taxpayers'
buck.
By mobilizing additional private capital, our investments
are making an impact, driving economic development, where it's
needed most and advancing U.S. strategic objectives. DFC is
promoting energy security by helping to diversify Eastern
European energy supplies with large scale projects in Poland,
Moldova, Bulgaria, Georgia, and Greece. All these projects have
helped the region shift away from dependences on Russian gas.
We're focused on securing the critical inputs and supply
chains for the industries of the future. Investing $150 million
in graphite production in Mozambique, $50 million in rare earth
oxides in Southern Africa and almost $1 billion for multiple
solar panel manufacturing facilities in India to ensure no one
country has a choke hold on price or availability.
Wherever we go DFC works to ensure our projects meet the
needs of local communities and we're investing to improve
public health through improvements to local health
infrastructure. And we remain committed to helping the small
businesses that are the engines of their economies get access
to capital they need to thrive.
DFC has active projects in 112 countries, but our primary
focus is the world's poorest countries. In fiscal year 2023,
nearly three quarters of our projects were in low and lower
middle-income countries.
I'm proud of the DFC team and of this track record but I
know we can do much more. The global demand for high quality,
high standard development far outstrips the supply. We want to
do more projects and have deeper collaboration, broader reach,
more meaningful impact, and better metrics.
For fiscal year 2025 the administration requests a budget
of just over a billion dollars for DFC to empower this agency
to better meet its mission. The fiscal year 2025 request
includes $763 million in program funds that would allow us to
grow our overall portfolio and continue strategic and
developmental projects around the world.
The budget request also includes administrative expenses of
$245 million. This funding underpins the work DFC does around
the world and it's our hope that the small increase in
operating budget will help us become more capable and efficient
as an organization. The request would extend our fee authority,
giving us the ability to use fees collected from clients to pay
for project specific transactional costs.
Not only is this financially beneficial but it will also
create an incentive for projects to reach completion on
schedule. The fiscal year 2025 budget requests additional
resources to attract and retain the talented and highly in
demand workforce that DFC needs.
Finally, a high priority for DFC is working with Congress
to path a reauthorization bill for the agency. We see this as
an opportunity to reaffirm the goals of the Build Act and make
improvements. These include fixing the budgetary treatment of
equity to make full use of this important tool Congress gave
us, improving the method for determining country eligibility
and raising the maximum contingent liability, so we can
increase our deal flow and better keep pace with our
competitors.
We want to use reauthorization to fix these issues and best
position DFC to meet the challenges of this current moment.
We're eager to work with Congress to chart the best path
forward for DFC.
Thanks for this opportunity. I look forward to your
questions.
[The statement follows:]
Prepared Statement of the Honorable Scott A. Nathan
Thank you Chair Coons and Ranking Member Graham, as well as all the
members of the Committee, for giving me this opportunity to discuss the
Administration's Fiscal Year 2025 budget request for the U.S.
International Development Finance Corporation.
I want to thank Congress and especially this committee for its
continued support of DFC. Since Congress established DFC, we have used
the tools you provided us to deliver on the BUILD Act's mandate to
increase the development and strategic impact of our investments around
the world.
DFC financing for the private sector enables reliable access to
energy and supports high-quality infrastructure, including safe and
secure digital connectivity. We are investing to strengthen health and
food systems while also supporting the small businesses that are vital
to generating jobs and opportunity.
We need to show up and offer our partners a choice based on our
values and on private enterprise, so they don't feel trapped into
accepting the offerings of our strategic competitors or authoritarian
governments--too much debt and projects that aren't needed or are of
poor quality. In the nearly 5 years since Congress created it, DFC has
made great progress in this regard.
Last year, DFC committed a record $9.3B across 132 transactions,
nearly double our FY20 total. By mobilizing additional private capital,
our investments are making an impact, driving economic development
where it's needed most, and advancing U.S. strategic objectives.
We are investing to build roads, ports, airports, and other large-
scale infrastructure projects in the developing world. For example, we
have committed $553M to support the construction of a new container
terminal in Sri Lanka--a critical transshipment point for the Indian
subcontinent--to promote the free flow of goods across key trade routes
across the Indo-Pacific.
DFC is also promoting energy security by helping to diversify
Eastern European energy supplies with large-scale projects in Poland,
Moldova, Bulgaria, Georgia, and Greece. All these projects have helped
the region shift away from its dependence on Russian gas.
We are focused on securing the critical inputs and supply chains
for the industries of the future, investing $150M in graphite
production in Mozambique, $50M for rare earth oxides in South Africa,
and almost $1B for multiple solar panel manufacturing facilities in
India, to ensure no one country has a chokehold on price and
availability.
Wherever we go, DFC works to ensure our projects meet the needs of
local communities. From our $20M commitment for cold-storage solutions
in Africa to our $33M loan to build grain silos in India, we met our
$1B food security objective in FY23, years ahead of schedule, and have
since doubled our goal.
We are investing to improve public health through improvements to
local health infrastructure, including our $10M loan to expand
distribution of liquid oxygen across Kenya. At the same time, we are
taking steps to boost pandemic preparedness. In December, we announced
we are expanding our $1B loan facility with Gavi to include vaccines
for routine childhood illnesses as well as potential future outbreaks.
And we remain committed to helping small businesses get access to
the capital they need to thrive, with a focus on ensuring that under-
represented groups benefit from our investments. For instance, in FY23,
$2.5B of our commitments supported economic empowerment for women and
other underserved communities.
DFC has active projects in 112 countries, but our primary focus is
the world's poorest countries. In FY23, nearly three quarters of our
projects were in low- and lower middle-income countries.
At DFC, we see the growing importance of the Indo-Pacific and have
tripled our portfolio in the region in the last 3 years. This includes
over $4B in commitments in India, but also substantial increases in
Nepal, Sri Lanka, and Indonesia, amongst others.
Africa, however, remains DFC's largest market, with over $11B in
commitments. DFC has successfully differentiated itself from the
predatory practices of the PRC and other competitors, and we are
continually on the lookout for further opportunities to work with the
private sector in the dozens of countries where we work on the
continent.
In the Western Hemisphere, DFC sees great potential for
partnership. DFC investment in this region can help create stable
economies and local jobs. Our loan portfolio guarantees extend access
to capital to small businesses, creating opportunity and local jobs,
helping to address some of the underlying causes of migration.
And in Europe, we have continued to respond to Russia's war against
Ukraine. Our over $1B in commitments in Ukraine are helping to keep the
private sector going at this critical moment while laying the
groundwork for long-term economic recovery.
To maximize impact, DFC partners with our peer development finance
institutions to advance shared priorities. Just recently, we have
reaffirmed our commitments with our counterparts in the Republic of
Korea and Japan; we have announced a new collaborative framework--the
Americas Partnership Platform--with the Inter- American Development
Bank Group's private investment arm; and entered into a new compact
with Taiwan's development finance institution.
And we work closely with our interagency partners to coordinate
efforts in support of broader foreign policy goals.
I am proud of this track record, but I know that DFC can do much
more. The global demand for high-quality, high-standard development
finance far outstrips the supply. We want to do more projects and have
deeper collaboration, broader reach, more meaningful impact, and better
metrics.
For FY25, the Administration requests a budget of $1.008 billion
for DFC, to empower this agency to better meet its mission. The FY25
request includes $763.4M in program funds, that would allow us to grow
our overall portfolio and continue supporting strategic and
developmental projects around the world.
The request would extend our fee authority, giving us the ability
to use fees collected from clients to pay for project-specific
transaction costs. Not only will this be beneficial to taxpayers by
allowing us to shift upfront costs to clients, it will also create an
incentive for their projects to reach completion on schedule.
The budget request also includes administrative expenses of $245M.
This funding underpins all the work DFC does around the world, and it
is our hope that the small increase in our operating budget will help
us become a more capable, efficient organization. DFC has already taken
many steps to improve its structure along a sector-based approach, and
we are seeking additional resources from Congress to build upon this
progress.
The FY25 budget requests additional resources to attract and retain
the talented and highly in-demand workforce that DFC needs. Growing our
deal origination, processing, and monitoring teams will enable greater
impact.
We have just begun to build out our overseas presence and we are
still massively underrepresented in the markets where we work compared
to our peers and competitors. DFC's six existing full-time-equivalent
staff overseas have proven essential to the targeted sourcing of
projects that advance sector priorities. By FY25, DFC will have fully
taken on the cost of staffing its existing overseas offices in Africa
and Asia, at an annual cost of $4.8M. With the support of Congress, DFC
hopes to prudently expand its overseas footprint.
The complexity of DFC transactions requires significant resources
to be devoted to monitoring them long after they are first originated.
This budget request will provide us with the business and legal
resources needed to keep pace with growth and perform effective
oversight.
All these improvements will put strain on DFC's IT infrastructure.
The FY25 budget includes funding to support modernization of our IT
systems and enhanced cybersecurity amid growing threats.
Finally, a high priority for DFC is working with Congress to pass a
reauthorization bill for the agency. We see this as an opportunity to
reaffirm the goals of the BUILD Act and make improvements. We have been
talking with Members and their staff and look forward to continuing the
conversation on key issues.
These include fixing the budgetary treatment of equity, to make
full use of this important tool Congress gave us; changing country
eligibility, to bring us in line with our peer development finance
institutions; and raising the maximum contingent liability, so we can
increase our deal flow and better keep pace with our competitors.
We want to use reauthorization to fix these issues and best
position DFC to meet the challenges of this current moment. We are
eager to work with Congress to chart the best path forward for DFC.
Thank you and I look forward to your questions.
Senator Coons. Thank you very much CEO Nathan, thank you
for your service and leadership. We look forward to President
and Chair Reta Jo Lewis of EXIM Bank.
STATEMENT OF RETA JO LEWIS, PRESIDENT AND CHAIR,
EXPORT-IMPORT BANK OF THE UNITED STATES
Ms. Lewis. Chairman Coons, thank you so much. And for your
distinguished members that will be joining us for inviting me
to testify in the administration's fiscal year 2025 budget
request from EXIM Bank. It is an honor to appear before you as
EXIM's Chair and President and thank you for your support in
passing our historic 7-year reauthorization in 2019.
I'm also pleased to join my counterparts from DFC and MCC
today. Like our fellow agencies, EXIM plays a vital role in
promoting and sustaining U.S. leadership around the world. But
while EXIM's activities may have development impact, as you
know, it's not a development agency. As you know, EXIM is the
official export credit agency of the U.S., our congressional
mandated mission is to support U.S. jobs by financing or
facilitating exports. The agency does that through our direct
loans, loan guarantees and insurance programs in cases where
the private sector is unable or unwilling to provide financing
or where such support is necessary to level the competitive
playing field for U.S. exporters.
A multi-year lapse in EXIM's charter, a lack of quorum on
the board of directors and the Covid-19 pandemic had a
devastating impact on morale, staffing, and operations.
Building on my predecessor's success and reopening the agency,
I have worked to rebuild and revitalize EXIM and set it up for
even greater success in our next chapter. In fiscal year 2023
because of the dedication of our talented workforce, EXIM
supported nearly $8.8 billion in authorization and an estimated
40,000 jobs across the country.
We strive every day at EXIM to fulfill our congressional
mandates by sector, size, and scope. On Sub-Saharan Africa,
EXIM approved nearly $1.6 billion in authorizations last year
including the largest renewable project in EXIM's history.
On small business, last year it marked the first time that
authorizations surpassed $2 billion since fiscal year 2020. On
our China and Transformational Exports Program, or CTAP, as we
call it, saw a nine-fold increase in year-over-year growth
since fiscal year 2022, and we authorized our first ever Make
More in America, MMIA, transaction. This initiative allows EXIM
to extend our medium- and long-term financing to domestic
projects that facilitate exports, reassure manufacturing,
rebuild the domestic supply chain, and support American jobs.
In our fiscal year 2025 request budget justification, EXIM
has requested $130.1 million for administrative resources plus
$15 million in program budget which will enable the agency to
offer competitive financing while meeting appropriate reserve
requirements. This request will support recruitment and
retention of highly trained staff required to successfully
complete very complex international financial transactions and
support underwriters in engineering.
The request will support also a projected $11.3 billion in
new authorizations and export value of $17 billion in estimated
56,000 U.S. jobs. These numbers anticipate growth in excellence
transportation program and an increase in green energy related
transactions, particularly in nuclear plant refurbishments and
hydro and solar power generation projects.
As part of the fiscal year 2025 request, EXIM is seeking a
default rate cap exemption from both--for both nuclear projects
because of their size and for CTAP, China Transformational
Export Program transactions which would allow EXIM to better
counter predatory PRC financing in transformational export
areas and higher risk markets.
Finally, while reauthorization is not the subject of our--
of today's hearing. I will be remiss if I did not mention that
EXIM's charter will expire on--at the end of 2026. When EXIM's
charter lapsed between 2015 and 2019, the world saw a 35
percent increase in the number of foreign export credit
providers. Other official credit providers evolved their
philosophy and substantially expanded their roles, and U.S.
manufacturers lost out as foreign governments promoted their
domestic industries creating a fundamentally uneven playing
field.
An early reauthorization backed by large bipartisan
majorities would send a strong signal to the world that
Congress is committed to empowering the agency to advance
American's national interests by facilitating exports and
supporting jobs. I look forward to working with you, all of
you.
Thank you, again, and I look forward to receiving your
questions, Mr. Chairman.
[The statement follows:]
Prepared Statement of Reta Jo Lewis
Chairman Coons, Ranking Member Graham, and distinguished members of
this committee, thank you for inviting me to testify on the
Administration's Fiscal Year 2025 budget request for the Export-Import
Bank of the United States (EXIM).
It is an honor to appear before you as EXIM's Chair and President
of the Board of Directors and to thank you for your support in passing
an historic seven-year reauthorization of EXIM in 2019.
I am pleased to be joined at this hearing with my counterparts at
the U.S. International Development Finance Corporation and the
Millenium Challenge Corporation.
Like our fellow agencies, EXIM plays a vital role in promoting and
sustaining U.S. leadership around the world. But while EXIM's
activities may have development impacts, it is not a development
agency.
As you know, EXIM is the official export credit agency of the
United States. Its congressionally-mandated mission is to support U.S.
jobs by financing or facilitating exports. The agency does that through
its loan, guarantee, and insurance programs in cases where the private
sector is unable or unwilling to provide financing, or where such
support is necessary to level the competitive playing field for U.S.
exporters due to financing provided by foreign governments to their
exporters.
A multi-year lapse in EXIM's charter, a lack of quorum on the Board
of Directors, and the COVID-19 pandemic had a devastating impact on
morale, staffing, and operations. Building on my predecessor's success
in reopening the agency--an effort this committee supported--I have
worked tirelessly to rebuild and revitalize EXIM and set it up for even
greater success in its next chapter.
In FY 2023, because of the dedication of our talented workforce,
EXIM supported nearly $8.8 billion in authorizations--an almost 66
percent increase over FY 2022--and an estimated 40,000 jobs across the
country. These authorizations reflect not only our commitment to
helping American businesses succeed, but also the strong, and growing
demand for EXIM's products and services.
We strive every day at EXIM to fulfill our congressional mandates
by sector, size, and scope. As it relates to our sub-Saharan Africa
mandate, since its first deal with Angola in 1942, EXIM's financing has
been a catalyst for economic growth, job creation, and greater
prosperity throughout Africa. I am very pleased to say that in FY 2023,
EXIM approved nearly $1.6 billion in authorizations for sub-Saharan
Africa.
Since FY 2022, EXIM has authorized approximately $2.2 billion of
transactions for the region. This includes two authorizations for
Ethiopian Airlines to purchase Boeing aircraft valued at more than $725
million; it also includes an authorization of more than $900 million
for the construction of solar power plants in Angola--the largest
renewable project in EXIM's history. All told, I am proud to say that
EXIM's sub-Saharan Africa exposure stands at more than $8.0 billion, an
historic high for the region.
EXIM is focused on infrastructure project opportunities in
developing markets for U.S. manufacturers and exporters. U.S. exports
of goods and services are well positioned to facilitate such important
projects around the world and align with the goals of the Partnership
for Global Infrastructure and Investment, or PGI. EXIM has authorized
deals under the PGI framework worth more than $2 billion, which also
includes a roughly $600 million rail infrastructure deal in Kazakhstan
and the previously mentioned Angola solar project.
FY 2023 also marked the first time that small business
authorizations surpassed $2 billion since FY 2020. This reflects 23
percent of our total authorizations by dollar value but almost 90
percent of our total authorizations by numeric value. In short, we do
most of our deals with small businesses in Delaware, South Carolina,
and states across America.
I am also pleased to say that the efforts of our China and
Transformational Exports Program (CTEP) team have resulted in a nine-
fold increase in year-over-year growth since FY 2022, culminating in FY
2023 CTEP authorizations totaling $2.4 billion, up from $252.9 million
in FY 2022. As a share of the agency's financing in FY 2023, CTEP
transactions made up approximately 28 percent of the agency's overall
authorizations.
Congress worked with EXIM during the 2019 reauthorization to create
CTEP, and the agency is using the mandate to support U.S. manufacturers
and exporters facing Chinese competition and to support America's
comparative leadership over the People's Republic of China (PRC) across
ten transformational export areas.
Here's one example: in March 2020, the EXIM Board unanimously
authorized a $91.5 million transaction in support of Weldy-Lamont
Associates LLC, a U.S. small business exporter that won a contract to
provide electricity in 400 rural villages in Senegal.
In early 2021, EXIM learned that a PRC-based consortium sought to
replace Weldy-Lamont by offering a more favorable financial package. In
response, EXIM's Board of Directors unanimously approved an amendment
to the transaction, extending an option of an 18-year repayment term to
cover the entire EXIM financing of the project and an option to convert
the previously approved EXIM loan guarantee to a direct loan.
In 2023, EXIM also authorized our first-ever Make More in America
(MMIA) initiative transaction, a direct loan for more than $4.7 million
to Aquatech International to modernize and expand laboratory facilities
in Wisconsin and Pennsylvania.
The Make More in America initiative allows EXIM to extend medium-
and long- term financing to domestic projects that would facilitate
exports and underscores the agency's efforts to reshore manufacturing,
rebuild the domestic supply chain, and support American jobs.
EXIM subsequently approved additional transactions supporting
electric-powered aircraft manufacturing in Vermont, and a plastics
packaging facility in the Port of Houston. In aggregate, these historic
transactions are expected to support almost 460 jobs during the
construction period and 480 new jobs at the facilities.
Aquatech's CEO wrote that the deal ``enables Aquatech to better
support Critical Minerals (Lithium) and Electric Vehicle supply chains
in the US and globally, demonstrating the power of public-private
coordination to strengthen American manufacturing competitiveness.''
I could not have put it better myself, which is why I am excited
about the robust pipeline of MMIA applications, particularly for small-
and medium-sized businesses.
We hope to work with Congress to build on these achievements and
set the agency up for even greater successes. I believe the Biden-
Harris Administration's FY 2025 budget request to Congress does just
that.
In the agency's budget justification presented to Congress in
March, EXIM requested $130.1 million for administrative resources plus
$15.0 million in program budget, which enables the agency to offer
competitive financing while meeting appropriate reserve requirements.
This request will support recruitment and retention of highly
trained staff required to successfully complete complex international
financial transactions. This includes underwriters and engineers, who
need sector-based knowledge and technical experience to speak to the
viability, compliance, and safety issues involved in potential deals.
The request will support a projected $11.3 billion in new
authorizations, an export value of $17 billion, and 56,000 U.S. jobs.
These numbers anticipate growth in EXIM's transportation program
and an increase in green energy-related transactions, particularly in
nuclear plant refurbishments and hydro and solar power generation
projects. The agency also forecasts growth in single-buyer insurance,
working capital, and supply chain programs within EXIM.
As part of the FY 2025 request, EXIM is seeking a default rate cap
exemption for both nuclear projects, because of their size, and for
CTEP transactions, which would allow EXIM to better counter predatory
PRC financing in transformational export areas and higher risk markets.
Under current law, EXIM cannot experience defaults that equal or
exceed two percent. Were that to occur, the agency's lending authority
would be frozen at its current level and the agency would be unable to
fully deliver on its mission of supporting U.S. jobs through exports
until the default rate dropped below 2 percent.
By their nature, export credit agencies like EXIM exist to take
risks the private market is unable or unwilling to take. Because EXIM
operates where gaps in the market exist, we necessarily support
transactions with higher risk profiles. Inherent in this risk-taking is
an expectation of some defaults. Put simply: EXIM cannot fulfill its
mission of supporting U.S. jobs, and cannot aggressively pursue its
mandates from Congress, if the agency is too afraid to ever fail. And
the current 2 percent trigger is significantly hampering EXIM's
willingness to incur risk, particularly in areas where Congress wants
us to lean in, like competition with the PRC.
Other U.S. government lending agencies do not face the 2 percent
constraint, nor are we aware of any foreign export credit agencies
subject to such a standard. The result is an overly conservative
underwriting culture that limits EXIM's ability to level the playing
field against foreign export credit agencies. The requested exemption
would allow EXIM to more aggressively compete against the PRC and
embrace higher risk technologies and markets, making sure U.S.
exporters can compete on equal footing in the global market.
Finally, while reauthorization is not the subject of today's
hearing, I would be remiss if I did not mention that EXIM's charter
will expire at the end of 2026.
When EXIM's charter lapsed between 2015 and 2019, the world saw a
35 percent increase in the number of foreign export credit providers.
Other official export credit providers evolved their philosophy and
substantively expanded their roles. And U.S. manufacturers lost out as
foreign governments promoted their domestic industries, creating a
fundamentally uneven playing field.
An early reauthorization, backed by large, bipartisan majorities
would send a strong signal to the world that Congress is committed to
supporting EXIM and empowering the agency to advance America's national
interest by facilitating exports and supporting jobs. I look forward to
working with you and other congressional stakeholders on bipartisan,
multi-year reauthorization legislation.
Thank you again, and I look forward to your questions.
Senator Coons. Thank you very much. I too, look forward to
an early bipartisan reauthorization vote. And to the CEO Alice
Albright of the Millennium Challenge Corporation. Thank you so
much for your leadership. We look forward to your testimony
today.
STATEMENT OF HON. ALICE ALBRIGHT, CHIEF EXECUTIVE
OFFICER, MILLENIUM CHALLENGE CORPORATION
Ms. Albright. Thank you, Chairman Coons., distinguished
Members of the Subcommittee, thank you so much for inviting me.
Thank you so much for inviting me to testify today. I also want
to thank you and your staff for ongoing support and
collaboration with MCC.
MCC has always benefited from bipartisan backing. We deeply
value this and welcome your continued counsel. I'm deeply proud
to lead an agency with a proven record of partnership,
accountability and delivering results for the American people.
MCC emerged as a bold experiment in 2004 to test innovative,
cost-effective, and data-driven approaches to ending global
poverty.
It represented a new approach, a focus on strong economic
policies, good governance, democracy, and country led solutions
and implementation. Now, 20 years later, having invested nearly
$17 billion in 47 countries benefiting and expected 400 million
people, we are no longer the experiment, but humbly the
exception, a leader in how to bring about a better life for
those people who need it the most.
MCC delivers values driven, high impact, and sustainable
infrastructure projects to meet the needs of low and lower
middle-income countries, and to support the United States'
economic and national security interests. The agency not only
responds to immediate development needs but reinforces a
network of partner countries both nascent and thriving
democracies that share the United States' belief that ruling
justly, investing in people, and upholding human rights creates
durable pathways to prosperity.
I'm reminded of this constantly when I travel. Just last
week, I was in Dallas marking our 20th anniversary with
President Bush. We hosted heads of state and senior leaders
from more than a dozen countries who offered powerful
testimonies on how MCC catalyzed democratic change and created
the conditions necessary for economic growth.
MCC also serves as an important counter to malign
influences of some other nations. In particular, as China
reduces its development aid in favor of more lending there is a
real opportunity for MCC partnerships that promote open,
sustainable, and inclusive development.
Our model of country owned development and conditioning our
investments on good governance enables us to incentivize
partners to undertake difficult reforms. Having funds on hand 9
to 12 months prior to signing assures our partners that funding
is available when they tackle these reforms. It also ensures
that projects are scoped appropriately prior to negotiations.
Without funding in advance of program signings, MCC risks
losing meaningful leverage, undermining the commitments and our
credibility when there is strong competition.
When MCC was established, the agency's budget matched its
ambitious mandate. For the past decade however, MCC's budgets
have remained largely flat while development challenges have
grown significantly. MCC is balancing a surge in portfolio of
signings and funding commitments along with increased security,
supply chain and inflationary costs.
With these rising costs combined with $1.1 billion in
rescissions over the last 3 years, MCC's available balances
have been significantly reduced heading into fiscal year 2025.
As a result, MCC requires full funding in fiscal year 2025 and
budget predictability to achieve strategic and lasting impact.
In addition to resources, the fiscal year 2025 budget
requests a legislative change that could bring MCC's impactful
model to a broader range of countries including eight in the
Western hemisphere, nine in Eastern Europe and the Caucasus and
five in the Asia and Pacific region.
This would also supercharge the MCC effect whereby
countries are incentivized to pursue reforms to qualify for MCC
assistance. I want to thank the Senators and the staff of this
subcommittee for supporting this change in your fiscal year
2024 bill report. I hope that this provision will be formally
enacted soon. MCC's fiscal year 2025 budget will build upon
more than 20 years of experience as a leader in international
development.
Although MCC is a small portion of the U.S. government's
foreign assistance spending, it is often the largest and the
most visible of U.S. government investments in countries where
the agency works. We also have earned the distinction of being
named the most transparent, bilateral donor in the world, 7
years in a row.
With a robust portfolio, MCC has built a track record of
helping democracies deliver for this--their people. This
includes a pipeline of strategic new programs that will be
ready for approval by MCC's Board of Directors in fiscal year
2025.
With your support for MCC and our fiscal year 2025 budget
request of $937 million. The agency is poised to create
building blocks for stronger and more vibrant economies around
the world and to foster greater security here at home. Thank
you so much, and I look forward to answering the committee's
questions. Thank you.
[The statement follows:]
Prepared Statement of Alice Albright, Chief Executive Officer,
Millennium Challenge Corporation
Chairman Coons, Ranking Member Graham, and distinguished members of
the Subcommittee, thank you for inviting me to testify here today. I am
pleased to participate in this hearing and share the Millennium
Challenge Corporation's (MCC) FY25 Congressional Budget Justification.
I also want to thank you and your staff for your ongoing
collaboration and support. MCC has always benefited from bipartisan
backing. We deeply value this support and I welcome your continued
counsel and engagement as we work to reduce poverty through economic
growth.
I am proud to lead such a critical agency that has a proven record
of partnership, accountability, and delivering results over the past
twenty years for the American people.
President Bush signed MCC into law on January 23, 2004, as a grand
experiment to test cost-effective and data-driven methods to address
global poverty. The approach was unprecedented--partner with low-
income and lower-middle-income countries that have demonstrated a
commitment to democratic governance, economic freedom, and investing in
their people; support sustainable country-led solutions to unlock their
greatest constraints to economic growth; and use data to drive all
decisionmaking. The experiment worked. Since MCC's founding, we have
delivered nearly $17 billion in aid to 47 low-income and lower-middle-
income countries, with programs expected to benefit nearly 400 million
people.
MCC's model of country owned program development and conditioning
our investments on good governance enables us to incentivize partners
to undertake often difficult political and regulatory reforms,
maximizing our impact prior to funds being executed. Having funding in
hand 9-12 months prior to signingensures programs are scoped
appropriately prior to negotiations. It also assures our partners that
funding is available as they make necessary political and institutional
reforms to receive an MCC grant and where possible, as they aim to
mobilize their own financing to contribute to compacts. Without funding
in advance of program signings, MCC risks losing meaningful leverage
and undermining USG commitments and credibility to our partners when
there is strong competition.
MCC delivers values-driven, high-impact, sustainable, and
transparent infrastructure and policy reform projects to meet the needs
of low- and middle-income countries and to support the United States'
economic and national security interests. The agency also reinforces a
network of partner countries--both nascent and thriving democracies--
that share the United States' belief that ruling justly, investing in
people, and upholding human rights create durable pathways to
prosperity. In addition to improving the lives of millions of people
around the world, MCC serves as an important counter to malign
influence of foreign nations by increasing U.S. Government presence, by
providing large-scale infrastructure development alternatives, building
stronger relationships and trust, and helping provide a clear roadmap
for democratic best practices through our country scorecards.
With a relatively small budget (<2% of international affairs budget
last year). MCC has proven itself a thought-leader in development and
sets the standard for transparency and use of evidence in the
development space, having earned the distinction of being named the
most transparent bilateral donor 7 years in a row. From a budget and
appropriations standpoint, supporting the MCC experiment continues to
be an excellent investment of taxpayer resources.
fy25
MCC requests $937 million in discretionary funding for FY25 to fund
compacts in Zambia, Togo, Cote d'Ivoire, and The Gambia while providing
ongoing compact development and oversight support across 20 compacts
and 8 threshold programs. In addition, the President's Budget includes
at least $200 million as a transfer to MCC from a new International
Infrastructure Fund as part of a broader mandatory proposal to out-
compete China globally.
For FY25, MCC is developing a program in Zambia focused on the
transportation and agriculture sectors. The Togo program aims to fully
integrate digital applications to administer programmatic investments
in connectivity, payment systems, new innovations, local skills-
building and education. MCC and the Government of Cote d'Ivoire are
developing a regional compact program in partnership with entities of
the Economic Community of West African States (ECOWAS), focused on
modernizing the electricity grid and improving the financial,
regulatory, and operational capacities of Ivorian and regional energy
entities. For the compact with The Gambia, MCC is exploring investments
in secondary education to increase skilled workers and in river cargo
transport to reduce transport costs. Each of these programs will
address critical development constraints in our partner countries,
helping their democracies deliver for their people, while also
showcasing the value of partnering with the United States in a
competitive geopolitical environment.
In support of MCC's programmatic work, I want to thank you for
increasing MCC's Administrative budget in the FY24 appropriations. The
FY25 Administrative Expenses request of $146 million includes a small
(2%) increase to support management and oversight of MCC's portfolio
and includes the President's 2025 Federal pay increase proposal
(+2.1%). This request represents a modest 2% of the more than $6
billion of assets under management that MCC will be overseeing in FY25.
Amidst today's difficult geopolitical and social challenges, MCC's
grant assistance is a key economic contributor to the way the United
States incentivizes good governance and democratic values globally,
and--because MCC funding does not add to a country's debt burden--a key
differentiator in how the U.S. supports partners compared to predatory
loans provided by malign actors. In FY24, MCC plans to sign compacts in
Sierra Leone ($480 million estimated)--provided the Government of
Sierra Leone continues to make clear progress to implement the
Agreement for National Unity including completing the work of the
Electoral Review Committee--and Belize ($125 million estimated), and
will implement five programs, including compacts in Indonesia ($649
million), Kosovo ($202 million), Lesotho ($300 million), and Malawi
($350 million), and the Kenya threshold program ($60 million). At the
same time, MCC is continuing to develop programs with multiple
countries, including four partners selected in early FY23 and MCC's
most recent selectees (Cabo Verde, Tanzania, and the Philippines)
announced in December 2023.
The United States must have a robust foreign assistance toolbox
that responds to both short and long- term challenges and reinforces
country ownership and a network of partnerships with countries that
share our democratic values. This is not only in the best interest of
the global community, but also is necessary for the United States. We
recognize that the challenges of today are not the same as they were
when MCC first started. In order to meet the moment, it is important
that the United States use all of the tools in its toolbox to be the
partner of choice for countries looking to develop future partnerships.
This means MCC must go broader and deeper to bring our tools to
bear in more places around the world--whether that's a program focused
on regional integration or an urban investment or a pocket of poverty
in an upper middle-income country. MCC will continue to apply its data-
driven model to identify the greatest opportunities to reduce poverty
through economic growth. Guided by MCC's framework for selectivity and
accountability, we will meet countries where they are on their
development journey with effective partnerships by embracing a broader
range of interventions to address new challenges and opportunities. We
will respond to countries' needs by adjusting and adapting the tools
within MCC's model--whether that's a focus on the digital economy or
public financial management--and bolster our processes and operations,
while investing in our people and our partnerships to improve MCC's
efficiency, speed, and impact. By applying nearly two decades of
lessons learned, we will use these innovative approaches to deploy MCC
resources that are fit for purpose.
legislative change
The FY25 Budget repeats a request in the FY24 Budget for
legislative changes that would reform MCC's candidate country pool to
include countries below the threshold for starting graduation from the
International Bank for Reconstruction and Development (IBRD). Senators
Risch and Menendez introduced legislation--S.1240 the Millennium
Challenge Corporation Candidate Country Reform Act--at the beginning of
the 118th Congress to address this change. I want to thank the Senators
and staff of this subcommittee for supporting this change in your FY24
Bill Report.
This legislative change would apply MCC's impactful model in a
broader range of places. For instance, under current law, only four
countries in the Western Hemisphere can be considered. This legislation
would add nine additional countries, including Colombia, Guatemala,
Ecuador, and Peru to MCC's candidate pool. In the Eastern Europe/
Balkans/Caucuses regions, nine countries would be added, including
Armenia, Bosnia, Georgia, and Moldova, while five countries would be
added in the Asia and the Pacific region, including Fiji, Tonga, and
Tuvalu.
This legislative change would supercharge the ``MCC Effect.'' MCC's
scorecards--which are used by our Board of Directors to select our
partner countries--provide an objective measure of a country's
commitment to ruling justly, promoting economic freedoms, and investing
in their people. Since our founding, we have observed a phenomenon
referred to by many as the ``MCC Effect,'' which is the clear
incentivizing effect of MCC's transparent eligibility criteria, whereby
countries pursue specific policy reforms to both qualify for, maintain
eligibility for, and ultimately compete for MCC assistance.
For example, post-conflict Cote d'Ivoire went from passing five out
of 20 indicators on the MCC scorecard in FY12 to ten in FY15, and then
14 in FY19. This impressive progress in a relatively short amount of
time was led in large part by a dedicated committee created by
President Ouattara in 2011 and chaired by the Prime Minister. The
committee was focused solely on becoming eligible for MCC assistance.
This focus on the scorecard has had tangible benefits for the people of
Cote d'Ivoire as exemplified by the country's efforts to enhance gender
equality in the economy. In response to MCC adding this indicator on
the scorecard, the government passed a revised family code, which
removed discriminatory measures that prevented women from obtaining
passports, choosing jobs freely, and from being the heads of household
in the same way as a married man. Because of these reforms, millions of
women in Cote d'Ivoire gained the right to basic economic
participation.
This is just one example. We have heard from numerous governments
that the data-driven insights that MCC and its scorecard offer can help
countries identify their reform priorities and pave the way for
accelerating economic growth and prosperity in a country. This is why,
in July 2022, President Tshisekedi of the Democratic Republic of Congo
announced his intent to use the MCC scorecard as the country's roadmap
for its ambitious development and reform agenda.
Another key area where we see the incentivizing effect of MCC's
model is in applying our Suspension and Termination Policy. If
countries fail to adhere to MCC's model and statutorily mandated
eligibility criteria at any point, MCC can take action to pause,
suspend, or terminate eligibility for MCC assistance. In fact, MCC has
ended 25% of its partnerships due to eligibility concerns. Prior to
taking action, in the spirt of partnership and transparency, MCC has
routinely engaged in dialogue with its partner countries to convey
concerns and encourage reform. This has led to governments taking
concrete action on a range of issues from strengthening the fight
against trafficking in persons, enhancing democratic protections, or
redoubling efforts to combat corruption, in order to maintain
eligibility for MCC assistance.
Thus, MCC can be thought of as a powerful projection of soft
power--the MCC Effect incentivizes good governance reforms in countries
before a single program dollar is spent as countries adopt reforms to
pass the MCC scorecard. Modifying MCC's candidate pool--as outlined in
S.1240--to incorporate a subset of vulnerable upper middle-income
countries, expands this effect without incurring any program costs.
conclusion
I am proud to lead an agency built on the pillars of effective
development. Our FY25 budget will build upon more than 20 years of
experience as a leader in how the international community approaches
development. MCC is a uniquely impactful that punches above its weight
to reduce poverty through inclusive and sustainable economic growth. In
this constrained budget environment, you can be assured that MCC's
catalytic investments are used efficiently and deliver high impact
programs. We also contribute to systemic changes that go well beyond
specific investments thanks to a strong emphasis on supporting the
policy and institutional reforms and good governance that will allow
developing countries to reduce poverty through economic growth. In an
increasingly globalized economy, MCC's programs are a down payment on
poverty reduction, increased growth and stability, as well as expanded
market opportunities for American businesses.
MCC's model is a counterweight to other development actors and
stands in contrast to predatory financing from other sources, such as
the People's Republic of China (PRC). We have a proven track record of
effectively building infrastructure in countries of strategic
importance to the United States. The MCC model encourages country
partners to double down on good governance, democratic rights, and
anti-corruption as prerequisites to investments. Once we select a
partner, MCC responds to countries' real needs with grant financing,
including to support policy reforms and transformative infrastructure
investments that our partner countries have shaped. MCC's model and
grant financing differentiate us from other donors' approaches and
increased reliance on lending.
In particular, as the PRC reduces its development aid in favor of
more lending, there is a real opportunity for MCC partnerships that
promote open, sustainable, and inclusive development. Although MCC is a
small portion of USG foreign assistance spending, it is often the
largest and most visible USG investments in the countries where the
agency works.
Most of MCC's current partners are among the poorest countries in
the world, and MCC works with them because they pass a high bar for
their commitment to democratic governance, to investing in their
people, and to sound economic policies that are critical to reducing
poverty among their citizens. MCC incentivizes this commitment through
our competitive standards. We back countries' commitment through large,
predictable grants that do not add to a country's debt burden. We seek
to embed a culture of accountability, transparency, and responsible
stewardship that helps sustain and scale progress.
Through their support for MCC and our FY25 budget request of $937
million, the American people are creating the building blocks for
stronger and more vibrant economies and societies around the world.
This means better governance, less poverty, and more economic
opportunity--vital elements of peace and stability around the world and
at home.
Senator Coons. Thank you to all of you. My colleagues I
know are currently voting and so I'm waiting for clarity from
my staff on when I have to go vote. So, I'm going to enjoy an
open field and a chance to just question you all. We are going
to conduct this hearing in 7-minute rounds so I would expect
that each Senator who comes will really just get one round, we
won't do a second round likely.
Let me just first start about the sort of broader unifying
theme in some ways is leveraging the approach, the values, the
priority of the private sector both metrics based and
facilitating economic engagement and crowding in private
capital. Broadly speaking, over the, I guess 14 years I've been
here, private capital is significantly outpacing official
government to government development loans or grants.
And that's a good thing because global development needs
far outweigh available government funding, particularly U.S.
government funding. And this subcommittee is facing severe
budget constraints as we did last year. I'd be interested in
hearing whether you're confident that you have all the tools
you need to maximize your ability to leverage private capital
and how we can be more helpful as you try to advance your goals
of sustainable development and creating more U.S. jobs by
expanding U.S. exports and providing investments in developing
countries, if you would, Mr. Nathan?
Mr. Nathan. Well, thanks for the question, Mr. Chairman. We
do have the tools we need, the Build Act gave us them. We just
need to unleash them in the appropriate way in order to really
fulfill our mandate as you mentioned which is to mobilize
private capital and tap into the deep pools of private capital
that will be necessary to fill the global infrastructure
finance gap.
So, for us that means fixing the budgetary accounting of
equity whether that's before reauthorization or in
reauthorization in order for this tool to be used the way I
understand Congress intended it, we need to have a fix that
takes into account the net present value of our investments.
Currently, it's as if we're making grants or going to lose
100 percent of every dollar we invest in while I don't expect
that DFC will be the best equity investor, it's not going to be
that bad where we are guaranteed to lose a hundred cents on
every dollar. So, something that----
Senator Coons. If I may interrupt, just put a dollar value
on this roughly. You made $500 million in equity investments I
think this past year. What would the impact actually be? What
more might you be able to do if this were fixed?
Mr. Nathan. So, I think it's instructive to look at the
other part of our portfolio. We did $9.3 billion total in
transactions, $500 million of that was in equity that cost $500
million of appropriations. The remaining, if you subtract $500
million from $9.3 billion, you get $8.8 billion of transactions
that are debt and insurance. That cost $110 million of
appropriations.
The leverage effect, the cost savings to the taxpayer, the
impact with the dollars that this committee can allocate using
an MPV model and the subsidy model that is then resulting in
order to account for appropriations gives enormous leverage.
So, somewhere in between that leverage ratio, the, you
know, basically 85:1 and 1:1, has got to be the right answer. I
would expect we'd probably get to 4:1 that could allow us to
make $2 billion of investments with equity. We can invest in
infrastructure, in energy, in nuclear with that tool unleashed.
If I could really briefly just mention two other
authorities that would be great to have unleashed, our full
guarantee authority and our ability to make political risk
insurance contracts on debt investments or on to lenders.
I think this authority needs to be clarified we're in on
ongoing discussions in the inner agency to make sure that we
have that tool. These are critical tools for being able to
mobilize capital in the way that you mentioned.
Senator Coons. Thank you, Mr. Nathan. Ms. Lewis.
Ms. Lewis. Senator, Mr. Chairman the tools that we
expressed that--I expressed in our opening to this statement
about the fact that as it currently stands, EXIM loses our
ability to conduct new business if our default rate equals or
goes over 2 percent. So, we have been working diligently with
members as well as the administration, as we have seeking an
exemption especially around very large projects like nuclear
and very large projects that are somewhat riskier, like CTAP.
We believe that that exemption would allow us to also
continue to send a signal to the market that EXIM is continuing
to seek those types of transactions. But it also gives us an
opportunity with that exemption for our underwriters to be able
to take bolder and riskier opportunities because that's who we
are. We believe that rather than having that exemption of
that--from that 2 percent gives us a greater cushion and
enables us to take advantage of some other calculated risks.
And then finally Senator, we have seen the convening power
that three different Senate Committees have done in bringing
together the private sector with all of us in government who
are in the economic cone. And it has, I believe, yielded some
great results, especially around sectors like nuclear, digital,
and critical minerals.
Senator Coons. Thank you. I'm particularly interested in
our engagement in nuclear power and refurbishment in Eastern
Europe, in the developing world and look forward to hearing
more from you about that. Ms. Albright?
Ms. Albright. Thank you, Chairman Coons, we have great
tools and for this topic in particular, grant financing. Grant
financing with no time limits on it is a significant advantage
for the agency and I think for the U.S. I will say there's a
couple points on timing. One of the things that we do is work
with countries to put in place different types of regulatory
changes that set the table and set the stage for private sector
companies to come in.
We spend a lot of time out on the road in the U.S. meeting
with private sector companies and doing road shows with
chambers of commerce. I was in Texas last week doing one,
encouraging them to bid on our business. But if we don't have
the funding well in advance of when we need to start engaging
in contract discussions it tends to have a chilling effect on
whether or not we're actually going to be able to go ahead.
So, we do face timing challenges and I would appreciate the
opportunity to follow up with your staff on that. I also want
to come back to this Candidate Country Reform Bill that we
mentioned earlier. If we add another 30 countries with whom MCC
could work--if they become eligible--it will introduce a whole
new range of countries that private companies may also be
interested in working in.
So, I think it provides significant opportunity for us to
begin to work with the private sector in different parts of the
world. We're particularly interested in Central and Latin
America, in Eastern Europe and out in the Pacific. And think
for example, in Eastern Europe with some of the energy issues
that are there that we could really make a difference.
Senator Coons. Thank you and I duly noted the impact that
rescissions have had on your ability to deliver advanced
commitments and the importance for reliability as you enter
compact, well stated. Thank you. Senator Hagerty.
Senator Hagerty. Thank you, Senator Coons. Mr. Nathan, I'll
go back to you now and back to the point about I think one of
the most important strategic elements of your mission and that
is to effectively counter the predatory practices of China. The
CCP I should say. I think that's one of the most incredible
geostrategic opportunities that we have is the use of U.S. LNG.
And I've mentioned this to you before but in my prior role
as U.S. Ambassador to Japan, I worked very closely with the
Japanese to displace Russia from their energy supply chain. And
the discussion certainly centered around economic security and
energy security but it was always aimed toward national
security. And as I think about the entire region of the Indo-
Pacific where China's behaving in such a predatory fashion.
That region consumes 70 percent of the world's LNG, 80
percent of whom are using coal out there now. It strikes me
that there is a tremendous opportunity before us with American
LNG that would provide them with a safer, cleaner, more
economic alternative and it would create a geostrategic linkage
that's continuous, better than any piece of infrastructure.
It's a relationship that becomes extraordinarily powerful for
us.
So, I want to ask you if you could just clarify for me how
the DFC approaches LNG projects and how you think about them in
terms of economic and national security.
Mr. Nathan. Well, thanks for the question. And I mentioned
in my testimony the work we've done, particularly in Europe
since February 24, 2022 and Russia's outrageous, illegal
further full-scale invasion of Russia to help Europe diversify
from gas prom and Russian gas. And I can run through some of
those projects for you----
Senator Hagerty. I took the countries down but I'm very
focused on the Indo-Pacific region right now.
Mr. Nathan. Yes. So though--there were the countries in
Europe, Moldova, Bulgaria, Poland, Greece, that we helped,
we've done projects in Africa. Our board just approved $412
million of financing for a project to generate power from gas
in Sierra Leone, one of the poorest countries of the world. We
did a project in Southern Africa for Helium which is produced
in association with LNG that will eventually account for 7
percent of the global supply of helium, a critical material for
defense, for aerospace, for medicine, for semiconductors.
We're open to doing projects in the Indo-Pacific. We don't
currently have any on the table. We do have other energy
projects we did in the last year in Indonesia, a geothermal
project. It took years and years to get that project in place
but we're very pleased to be able to get it across the finish
line. That's a huge resource for Indonesia to provide base load
power and take advantage of their geographic position----
Senator Hagerty. If we could specifically come back to LNG
though because this is where I see the most immediate
opportunity and frankly the greatest geostrategic leverage for
us.
Mr. Nathan. Yes, yes.
Senator Hagerty. We have the capacity right now to produce
more. There are mixed messages I think coming from the United
States on this but I want to make certain that there's no
limitation on what the DFC does----
Mr. Nathan. Yes. That's why I wanted to go into the
projects in Europe for example in Poland we made a $500 million
guarantee to PKN, Orland, the largest utility there precisely
to help them buy U.S. LNG in response to their dependency on
Russian gas.
This was because they ran out of hedging capacity to hedge
between Henry Hub and Antwerp, the basis risk. And our
guarantee provided more hedging capacity so that they could
purchase U.S. LNG. In Bulgaria, we're making a $250 million
loan to Bulgar Trans Gas to provide a store--more than a
doubling of their storage facility. This enables them to buy
gas--U.S. LNG cargos from Greece or from other places in the
Southern European network to then provide wheeling of that gas
to their neighbors in a way that helps diversify.
And in Greece we provided $125 million and--I had the
pleasure of visiting this facility--for the rehabilitation of a
shipyard. This prevented a PRC entity from doing that shipyard,
but the shipyard will be doing floating storage and
regasification units. So again, it's part of the ecosystem of
enabling these countries to diversify their energy supplies by
buying U.S. LNG or other LNG cargoes but not be dependent on
getting it from the east.
Senator Hagerty. So, I get what you're saying right now but
I'm coming back----
Mr. Nathan. Yes.
Senator Hagerty. Again, to the immediate opportunity and my
question is very specific now. Is there anything that causes
you to dissuade projects to disfavor LNG projects?
Mr. Nathan. There's nothing that I'm aware of. We have to
analyze them, they have to go through all of our high standard
screening process. There is a process for greenhouse gas
emissions accounting and for guidance on that. But all of the
projects I just mentioned----
Senator Hagerty. Do you take into account the greenhouse
gas reductions of displacing coal when you do that sort of
analysis?
Mr. Nathan. Well, it goes into the discussion around it in
terms of the exact accounting, the displacement effect does not
go into the exact accounting. We use the international
accounting standards for that. But what I was going to say is
that none of that dissuaded us from doing the projects I just
mentioned all of which are directly in the zone of the type of
projects you mentioned----
Senator Hagerty. I hear you. Without the immediacy of the
crisis in Ukraine with Russia though I'd still like us to be
looking longer term strategically at projects where we could
really provide a very real counterweight----
Mr. Nathan. Yes.
Senator Hagerty. To the Belt and Road Initiative. So I
would look forward to finding ways to continue to work
together. And if you sense anything that's forcing a
deprioritization of these projects or something that we could
adjust that would allow us to be more aggressive, the
geostrategic value is quite obvious.
Chair Lewis, I want to come to you as well. Does EXIM Bank
have any practices that discourage or in any way--what's the
right word, discourage LNG projects?
Ms. Lewis. Senator, EXIM, we believe have a very important
role to support all of the industries and workers in accordance
with all of our statutory, regulatory and policy requirements.
As an independent agency, you know we have a prohibition clause
that does not allow us to discriminate against any size or
sector or region in the world. And so, we see----
Senator Hagerty. In practice, is that the case?
Ms. Lewis. That is definitely the case Senator. We seek to
definitely align with other--with administration initiatives.
But in----
Senator Hagerty. Have you financed any LNG projects in the
past 2 or 3 years?
Ms. Lewis. LNG projects, we have been involved in a number
of projects with commodities. And one of the things that we are
really----
Senator Hagerty. I'm not asking about commodities broadly.
I'm asking specifically about what I think is the most
important geostrategic opportunity we have, that's LNG?
Ms. Lewis. We have--we received all of our projects on--and
transactions on a case-by-case basis. And over the years, EXIM
has invested in those. I would be--would love to be able to get
back to give you a list of what those----
Senator Hagerty. If you could do that--if you could give me
a roster of the LNG projects that have been undertaken over the
past several years. I'd love to see that, in the past 5 or 10
years, I'd just like to see how that trend is going because
again this is a really important opportunity for us. And the
immediate benefit for this is rather obvious. Thanks.
Senator Van Hollen. Thank you, Senator Hagerty. Senator
Coons had to go vote. I will chair in his absence. And Senator
Schatz is recognized.
Senator Schatz. Thank you very much to all of the
testifiers. Thanks for all of your public service. Ms.
Albright, it will not surprise you to know that I am extremely
enthusiastic to see you in this role and at the testifiers
table. I'm glad to see that MCC is working in the recently
overlooked Pacific Islands.
And I'd like you to say a little more about the potential
for additional projects in the region and how especially this--
small investments can provide big returns economically and
geopolitically.
Ms. Albright. Thank you so much Senator Schatz for the
question. So, we very much agree that the Indo-Pacific and in
particular the Pacific Islands are a great opportunity for our
government's development dollars. And in particular for MCC.
Right now, we are working on program in Carabas. $29.1 million
that will work on helping young people in that country get
better skills and opportunities for the jobs of the future, and
that's a program that was very much designed with that
country's government.
We're also working on a program in the Solomon Islands.
We--if we're able to expand our candidate pool we could include
other countries if they are qualified. Fiji, Tonga, Tuvalu for
example. It's slightly different part of the region but we're
also working on a big program in East Timor on water and
sanitation and also education.
And those are all programs that are part of our--about a
third of our work is in the Indo-Pacific area. And I just made
myself a list. We're doing programs right now in the
Philippines, Nepal, Mongolia, Indonesia, East Timor, Carabas
and the Solomons. And if we're able to expand our footprint we
could add to that. And one thing that's--just last point I'll
make is that, you know, we're able to do small programs in
these huge compact programs.
One of the things that's a real standout for the smaller
islands is that the $29.1 million for Carabas is the largest
piece of international aid that country will have gotten. And
we're going to make a huge difference for the young people
there. So, we can make a big difference with a reasonably
modest amount of money.
Senator Schatz. That's exactly the point here. And for us
as appropriators I think that's where we ought to think about
how to deploy the Federal dollar most efficaciously. And in
these Pacific Island Nations, you know, $29 million is a
rounding error for the Department of Defense and arguably for
the Department of State in other contexts. $29 million is the
most money that Carabas has seen in maybe ever--
Ms. Albright. Ever.
Senator Schatz. Externally. And this is a--this has a major
impact and I have--I want to praise the State Department more
generally. We've had these convenings over the last 3 or 4
years with Pacific Island leaders, foreign ministers and prime
ministers and defense ministers. And you know, the first couple
were a little rough. They were--I wouldn't say gripe sessions
because that's unfair to them but there were a series of
complaints that were--that could be summarized by you guys are
never around until you need something.
But they were very specific in their asks and the State
Department along with the SFOP's Committee sort of made good on
a bunch of those promises. And it is gratifying to see that
these subsequent meetings have not only increased in attendance
from around three or four Senators to I think last time 15, 16
Senators including the chairman of the Intelligence Committee,
bipartisan participation from SFRC.
I wouldn't call it a love fest but it was a huge
improvement in the tone and the tenor of our partnership. So,
when Secretary Blinken says, you know, allies, friends,
partners you are on the front lines of making that true and so
I just wanted to recognize that.
I have a question for you about digital health tools. You
just made a big announcement, a $300 million partnership. And
I'm wondering if you can just talk through what that is going
to mean and the kind of leveraged impact that's going to have
both in terms of our good standing around the world but also
real-world impact for people who need it?
Ms. Albright. So that program I believe is in Lesotho. We
signed the program a couple of years ago and it will build on a
previous investment that we made in health clinics. And we all
know that one of the big vulnerabilities in global health is
the inavailability of data, because it really eats at a
system's ability to anticipate where the problems are.
So, with our new Lesotho program which will also focus on
horticulture, we're going to be investing in data systems in
that country to help their health clinics really get up to
speed and figure out how they can anticipate where the issues
are. And in a country that's had on a per capita basis a
significant history with AIDS, we think that's a very important
thing to help that country with, and we're very much looking
forward to working with them and we can follow up with your
office Senator Schatz to let you know how it's going.
Senator Schatz. Thank you very much. I would love for us to
be on a first name basis outside of this Committee, Ms.
Albright. Thank you very much. Mr. Nathan, I've repeatedly
heard from leaders in the Indo-Pacific about the threats that
they face from sea level rise and disasters.
How are you implementing the President's Emergency Plan for
Adaptation or the PREPARE in the Indo-Pacific? And are there
any additional tools that you need?
Mr. Nathan. Well, thank you very much for the question.
We're a key implementing agency for the PREPARE Act. We've done
since the inception of DFC, a little over $600 million of
financing transactions for adaptation within our climate
finance bucket. That's everything from regenerative
agriculture, helping prevent waste of food by helping with cold
storage, water system management and hardening infrastructure.
So, we are helping.
In the Pacific Island Nations that you were asking about
before, we're looking for projects that could specifically help
in this area. They're challenging places for us to work to find
private sector projects, nonetheless we have a $50 million
microfinance facility specifically targeted at the Pacific
Island Nations in cooperation with our colleagues at USAID
which I think might be able to find some of these kind of
adaptation----
Senator Schatz. Just because I only have 30 seconds left,
does that microfinance facility--is that like the first cousin
of the Pacific Resilience Facility? Like how are those two
things going to interact?
Mr. Nathan. No--well this is specifically a private sector
facility to help get money into the hands of individual
businesses. So, they can definitely cooperate, but it's a
separate facility.
Senator Schatz. Okay and--but I guess my question is are
you in conversations about how to sort of make sure that
these----
Mr. Nathan. Absolutely, I mean the idea is to find deal
flow and by cooperating with our colleagues managing the
resilience fund, that's one way to do that.
Senator Schatz. Great, Thank you very much.
Senator Van Hollen. Thank you, Senator Schatz and let me
add my thanks to all of you for your service and your testimony
here today. All your agencies are great examples of different
tools available to the U.S. government to do everything from
supporting American jobs to supporting our strategy around the
world and I'm grateful for your service.
Ms. Lewis, it's great to see you again. I know we've talked
about this in the past but I think we all share a concern about
the PRC's dominance in the critical mineral supply area and the
supply chains related to that. So, from acquisition of raw
materials to processing.
And my question is are there ways that EXIM could be more
effective in financing critical mineral projects that diversify
our supply chains? And as part of that question are the China
and Transformational Exports Programs sufficiently flexible for
critical mineral projects? And if not, are there changes you
would like to see that provide for that flexibility?
Ms. Lewis. Thank you so much, Senator for that, great to
see you again. As you mentioned, we have been before you in
other committees calling regarding the convening power that the
Senate has to bring together the private sector players along
with government agencies like ourselves to discuss and make
sure that they understand the resources that EXIM has.
As I had mentioned and in some previous conversations that
you and I had, the exemption from--of having CTAP, the
Transformational Export Program from our 2 percent default rate
would be really, really critical for this agency. It would
allow us to be able to take a little bit more risk. It would
allow our underwriters to not be as cautious, because primarily
when you look at these kind of critical minerals projects which
are not a part of the 10 transformational exports that Congress
had passed in 2019, but it is really critical that we have been
able to tuck the critical minerals work and transactions
underneath CTAP.
We know that you would like to see us take some bolder
actions as a part of a strategy to counter the PRC's unfair
trade and export practices. At EXIM, you know we require that
reasonable assurance and repayment for every transaction that
we do. And so, to be able to ask you for that type of change,
we think that that would allow us to have a lot more
flexibility and to be able to take a lot more risk and for us
to continue to do those types of deals.
As well as you should know, from the convening that you
participated in and allowed us to be with, we have been able to
put out a Federal notice in our Federal registry to ask the
industry and ask those in the market to give us some ways that
they think that EXIM can be--can do more in this space.
And we are very excited also that we have been able to use
our MMIA deal authority that we have providing direct loans
that we recently did for $4.7 million of an expansion of a
facility for a company called Aquatech that happens to be in
Wisconsin and Pennsylvania. And it is better for them to be
able to support critical minerals like lithium and EV supply
chains.
Senator Van Hollen. Got it. Well, thank you. I look forward
to continuing to work with you on this, and Senator Warner, and
Senator Rubio, and I and others are working on legislation to
expand some of these authorities in a targeted way.
Mr. Nathan, it's great to see you again and thank you for
all your good work and I hear you loud and clear on fixing the
scoring issue. This is a self-inflicted wound. I think it's
just malpractice that we have not resolved this yet because it
makes no sense as you said to count every dollar that you
invest as a grant dollar. So, we look forward to trying to
finally get this done.
You know as I think about, you know, how American
businesses might be looking at the U.S. government and how
we're organized, they might see it as a little stove piped,
right? I mean each of your agencies has very important
authorities. In some areas especially between the EXIM Bank and
DFC there could be room for collaboration.
So, I guess my question for you, Mr. Nathan is, to what
extent are you sort of operating in a more coordinated, maybe
not seamless way but a more coordinated way to make sure that
we use all our tools? I mean some of the things that you
provide or can be complimentary obviously to EXIM Bank. So, do
you have some examples of where there's collaboration?
Mr. Nathan. Well, thanks for the question and I as always
appreciate your input and support. I'd say we definitely
collaborate with our colleagues, my colleagues at the table and
their agencies as well as USTDA, of course, our colleagues at
the State Department, Commerce Department and USAID as well.
The way we collaborate mostly is by participating in various
interagency processes to identify foreign policy priorities
that can be benefited from our activity.
With MCC, we have a formal agreement to try to find ways to
collaborate. And we've come at it from different ends but it's
complimentary. MCC did a compact in Sierra Leone that worked on
the power sector. We're funding a power plant there that will
free them from the dependence on a barge with four diesel
gensets that is unreliable and has led to severe political
problems.
With EXIM, we frequently have discussions but we're coming
at these projects from the--almost the exact opposite end.
Whereas EXIM is supporting U.S. business and their exports.
We're in country supporting the company or the project with
local financing. So, there are places where it can be
collaborative. It'd be great if we had some good examples of
projects. We're obviously both focused on the critical minerals
area. We made $740 million of investments in critical minerals
and key inputs last year. I foresee this being an area where we
will likely collaborate in the future given the high priority
and the opportunity to both support mining and processing.
At the moment, our graphite investment last year in
Mozambique ultimately, we're hoping that will have as an off
taker a plant in Louisiana that will be supported by a
Department of Energy grant and loan. So, there is plenty of
opportunity for collaboration, and I agree with you. It's
bewildering sometimes from the inside what each agency's doing
from the point of view of our partners and allies, it's very
hard to figure out.
Senator Van Hollen. Right. No--I appreciate that and that's
why a number of us had that sort of convening of the different
agencies. If I could just finish up, Mr. Chairman, with a
question to Ms. Albright and thank you for your service and
when we met, I told you I was very happy to be in Kathmandu
last year, the day after the MCC deal was finally being
implemented. And as you know, it took years because a lot of
disinformation from the PRC but I want to applaud not only the
MCC but the government of Nepal for making the decision to move
forward.
Many of us are big supporters of the legislation that you
mentioned. As you know, it passed the Foreign Relations
Committee with a unanimous vote. I believe it was unanimous and
we hope advance it. Could you just give one specific example of
how passage of that legislation could make a big difference in
advancing the mandate of the MCC and the goals of the United
States?
Ms. Albright. Thank you so much, Senator Van Hollen--
whoops, let me push the button--for the question and I'm
delighted that you were in Kathmandu the day after that was
passed. It was a very important project for us. It's a $500
million program that will help completely upgrade the energy
capability of Nepal or off to the races on it. So, we're very
excited about that.
So, I keep this map on my desk which shows all the
different countries that we could work in. And the one I'm
going to zero in right now is Moldova. Because I would imagine
that many of us in this room are concerned about what's going
to happen to Moldova as a result of what Putin is doing in the
region. And we can't work in Moldova right now, but if we were
able to get the legislation passed, of course, it's a small
country but it's a very strategic country. And that's one where
we certainly could begin to work. There's a number of others in
the region.
There is also some interesting ones in Latin and Central
America where we are not able to work. So, what's interesting
about the legislation is not just the specificity of the
countries, but it would enable us to work in regions some in
Central America, some in Europe, Eastern Europe, some in the
Pacific. And there are certainly different geostrategic
interests that the United States has in all three of those
regions over and above what the individual sort of countries
have to what need in terms of working with MCC.
So, there's just many opportunities here which is why we've
been up here a lot visiting with you all to try to get the
legislation passed but we'd be very enthusiastic and we think
that a number of countries would qualify immediately and we
could do some good work.
Senator Van Hollen. Well, thank you. I know that the
Chairman supports that legislation strongly as well as the
legislation that Mr. Nathan emphasized with respect to the
scoring rules. Thank you all for your testimony and for your
service.
Senator Coons. Thank you, Senator Van Hollen.
We understand Senator Merkley will arrive in a few
moments. If I might, I'm just going to go into another question
or two and appreciate your answers to my colleagues.
Accountability and transparency is a key part of the work of
all three of your agencies. I think it's a central part of what
makes the MCC model of development so powerful.
I think you've done important work at the DFC in order to
strengthen your internal transparency and accountability
mechanism. And I think in EXIM it's important that we focus for
a minute on workforce retention and competitiveness in order to
ensure that you're functioning at the level you need to.
So, if you could just each of you, if you'd speak about in
what ways your agencies work to ensure transparency and
accountability both internally and then competitively with
other like-minded--other nations that are trying to do the same
sorts of things you're doing. How do we promote transparency
and accountability?
Mr. Nathan. You want me to start?
Senator Coons. Yes, please.
Mr. Nathan. Okay. Thanks.
Senator Coons. Forgive me, Mr. Nathan.
Mr. Nathan. In regard to transparency, we too have been
ranked high on transparency indices compared to our DFI
counterparts. I think the last ranking, we were the highest but
it still wasn't a high grade. So, if we're graded on a curve,
we're doing well but we have a long way to go. We try to
provide as much information as possible to the public, to the
NGO community and obviously we provide all the information
required by Congress.
We have many different oversight mechanisms. We have a
robust office of the Inspector General. We have the office of
accountability, Public Office of Accountability that has
recently changed leadership, and I'm very optimistic about the
robust leadership there and the resources that office is
getting in order to have the ability to fulfill its mandate. We
want to cooperate with them as much as possible.
Internally, we try to share information you know, we're a
rapidly growing agency. In just the last 2 years we've gone
from 440 people to 670, and that has a material impact on our
culture, against the backdrop of the pandemic and changes to
work patterns there have been some challenges in creating a new
culture that's also I think, natural for an agency that
launched only 5 years ago and built on a smaller team that
really was serving a different mission and a different mandate,
with different tools and a different process.
So, reorienting it has involved some changes internally to
how we're organized that I think going forward will really
begin to bear fruit, but change is hard and that has led to
some issues that we've tried to work through. But from the
point of view of leadership of the agency, openness and sharing
of information is a key element to that and I think we're
making progress.
Senator Coons. How do you ensure that your office of
accountability which if I understand right, is still one person
may soon be two?
Mr. Nathan. Yes, and then potentially to triple, to three--
--
Senator Coons. Is actually accessible, open, responsive to
concerns of communities that are impacted by projects you're
helping finance?
Mr. Nathan. So, one way is to make sure that there's great
visibility on how to approach the office of accountability and
we've worked with the new person who's in charge to make sure
that whether it's through website, through constant
communication with the NGO community which is really critical
in this regard, that that's something he's aware of.
We have a public hearing of our board two times a year, in
which members of the public or NGOs can make statements, and
that's another way for the Office of Accountability to be aware
of what is in the flow of that information. And then obviously
there's reports and letters sent directly.
Senator Coons. And how do you contribute to greater
transparency and accountability for the deal flow and the loans
that you're actually involved in as opposed to our competitors
from other countries who are also active in development
finance?
Mr. Nathan. Well, we make a public information statement
about every deal that we do. We post that on our website. We
have information about our deals on our website. That is
certainly different than our strategic competitors which
actually bind most counterparties with non-disclosure
agreements to keep their loan agreements opaque, what kind of
strings are attached or security arrangements are made. So,
that's not the way we manage things.
Senator Coons. Thank you. Ms. Lewis, tell us for a minute
if you would, about EXIM and how you both ensure accountability
internally and then compared to your strategic competitors.
Ms. Lewis. From an internal perspective Senator, one of the
things that we've been very clear is that we've seen that when
having an agency that was closed from 2015 to 2019 and then
COVID happened as well as the loss of a board quorum actually
definitely changed the culture, I believe at EXIM Bank that we
are striving every day to bring back.
Our scores have definitely been low, Senator. And we have
most recently over the last year hired a permanent chief human
capital officer, chief management officer who has been really
helping to lead the charge in the support of increasing morale
as well as engagement.
We've done a significant amount of work using an external
consultant, one of the Big 4 to assist us in the different
types of programs we have done from training, from leadership
training, we've expanded our retreats from just the central 20-
plus senior leaders to all of our managers which total about
40. We have also been doing a numerous more recognition award
programs as well as having offsite retreats that we have had.
I'm very pleased to say that in the last one we had mostly
about a week ago, we had over 80 percent participation of our
team because I think people are just very interested in the
work that we are doing so we have also re-upped the internal
communications that we do for all of us to know what's going on
at EXIM----
Senator Coons. And what kind of initiatives do you take to
ensure the transparency of the loans and loan terms?
Ms. Lewis. Yes. Well as Scott also mentioned, we have a
very--we've been working very closely and open with our IG to
ensure that--we've seen a number, I would say the open cases
that we have about 70 percent of them have only been done--
issued in the last year. And so, we're working very closely to
address them.
As it relates to transparency and accountability we
frequently, on a regular basis with our different transactions
are noticed in the Federal register so that those can--seeking
comments on those. We definitely published--when we complete
every transaction on our deals, we also work very closely with
other international bodies like the OECD because we all are
part of the arrangement and there are things that we all have
to report when we are doing different types of transactions.
And so, we--and then most recently working with off of a
recommendation, we have created a new Office of Compliance that
coincides alongside Ethics and Ethics Officer. We believe it's
going to be those types of engagements and developments at EXIM
that's going to allow us to continue to be more transparent and
more accountable to the American people as well as to the
borrowers that come to EXIM.
Senator Coons. Thank you, Ms. Albright. I think
accountability transparency is sort of in the very DNA of the
MCC. I'd be interested in how you think both internally and
externally, you focus on transparency and accountability at
MCC?
Ms. Albright. Thank you, Chairman Coons for the question.
Yes, there's many aspects we can point to. Let me talk first
about our internal decisionmaking processes whether or not it's
with our board, with partner countries, with regards to how we
do a monitoring and evaluation of every single program.
We are dedicated to transparency at every step along the
way, whether or not it's our scorecards which you're familiar
with which are on the Internet. So, every country can see how
they rank in terms of whether or not they're going to become
eligible for MCC's support.
We also have--are very happy to have a very active dialogue
with Congress on congressional notifications at every step of
the way. We also evaluate every single program that we do. We
look at the lessons that we can learn so we can learn how to do
things, continue to learn how to do things better. All of those
reports are also published publicly. So, that's with regard to
our decisionmaking internally.
A key part of how we think about accountability is whether
or not countries remain eligible. As you know, it's very
difficult for countries to become eligible for MCC support
principally on the question of whether or not they're on a
democratic trajectory.
We then continue to watch that once a country is actually
selected. And if a country begins to divert from that we start
having serious conversations with the country about whether or
not we ought to continue and that's really at the heart of how
we operate.
Very sadly, from time to time, we do have to actually
completely discontinue our work as we did recently with Burkina
Faso. We've also suspended our work in Niger.
So, that's also--I think runs right the way through MCC's
DNA. We too have an office of--we work with the IG from USAID
and have a very transparent and productive relationship with
them.
Senator Coons. Describe briefly, if you would, the MCC
effect. I've had the chance to see it on the ground, out in the
world and talking to heads of state but I'd just be interested
in how you understand it?
Ms. Albright. So, the MCC effect is the function of
publishing the scorecard. So, we publish a scorecard on the
Internet every year. The next round will come out sometime this
fall of how each country scores against 20 different
indicators. The indicators fall into basically three different
policy buckets. Is a country running its economy well? Is it
investing in its people? And is it a democracy in trying to
fight corruption. And countries study their scorecards whether
or not they are close to becoming eligible or not.
And so, what--in being able to see that public data which
is all third-party data, countries often make a decision that
they want to use that framework to make decisions about
reforms. So, there's two good examples I can point to. One is
in the Cote d'Ivoire where a number of years ago the country
was only passing 5 of the 20 scores, and President Ouattara, at
the time, set up a specific division to specifically make
decisions to become eligible. And now they're passing, and I
will double-check this for you, at least 14, and they're plenty
eligible and we're doing a lot of work with them.
The Democratic Republic of the Congo has a--they're only
passing five or six maybe seven scores. But they've set up also
an entity within their Ministry of Finance without paying a
single dollar of MCC's program budget to actually also make
decisions to reform how things are going in the DRC.
So, it is a powerful tool for incentivizing reform and we
see it in--there's lots of other examples I can share with you,
but it's one of the--now that we're 20 years into our history,
I think it's one of the most efficient high ROI aspects of the
agency because a country starts making the reforms that they
need you to become eligible without us spending a single dollar
of U.S. taxpayer dollars on the program side. Our economists
are in touch with them, but we're not spending program money
until countries become eligible.
Senator Coons. I've seen that directly. In fact, Cote
d'Ivoire was the concrete example I had in mind even though our
strategic competitors were offering multiples of U.S.
investment, President Ouattara and the Prime Minister were very
engaged in achieving the compact and so that's not the only
country but probably the signal country.
I understand Senator Merkley's mere steps away. So, I'll
simply just say, each of you had a chance to touch on a
legislative priority, reauthorization, equity fix, expanding
the number of eligible countries, default rate. Is there
something you didn't get to speak about that would be helpful
to briefly address in terms of legislative action you'd like to
see from Congress that would help strengthen your ability to
execute on your core mission?
Please, if you might, Mr. Nathan.
Mr. Nathan. So, within our reauthorization process there
are a couple of other elements I'd love to just briefly touch
on. One is very similar to the issue facing MCC in terms of
country eligibility. We're currently dependent on the World
Bank income classifications. It's a crude tool that even the
World Bank doesn't use for lending eligibility. And it leads to
annual volatility when the countries move categories every
year, that's very difficult to be working on a private sector
deal and then July 1 have to put your pencil down.
I think it would make sense to broaden out the group if we
used World Bank categories, it would add some Caribbean
Nations, some Pacific Island Nations, it would add countries in
Central and South America that aren't currently eligible. And I
think it would do it in a systematic fashion as opposed to a
targeted fashion. So that's one element.
There are other things in reauthorization that could help
us be more efficient and utilize our resources better. Raising
our annual lending cap, making the fee authority, I mentioned
permanent, increasing the threshold for congressional
notification. We're right now doing about 80 plus percent of
our transactions require notification. That was around a
hundred last year. It would be great if we could find a way to
still notify in a majority but have it be fewer.
And then ways to help incentivize our workforce really
important to--in this very competitive labor market for
transaction lawyers and other in demand transaction officers
and otherwise to find ways to support them.
Senator Coons. I suspect that's true across all three of
you. You're looking for skill sets that are unusual and in high
demand and in a very tight labor market of being able to
incentivize and retain the very best. I mean, there are
complaints I hear occasionally about the time cycle, how long
it takes to work with all three of your agencies.
And I often say that's partly because of the demands on
your workforce that you're trying to move a lot of transactions
and very complex transactions and monitor them for a long
period of time. So, I'm very sympathetic to those concerns.
Ms. Lewis, if you might.
Ms. Lewis. Senator, you're absolutely right, Mr. Chairman.
It's just not just monitoring. It is about how we continue to
recruit and how we continue to retain is critically important
and to be able to additionally see some types of awards that we
could also incentivize our teams would be helpful.
I want to just continue to emphasize the seeking of that
default rate cap, the exemption on nuclear as well as for CTAP
so that we can better counter you know, PRC financing on--
especially in the 10 export areas. But more importantly, I
think early reauthorization is really critical for EXIM Bank
especially since we were out of the market for those years,
we've had an ability to reset and rebuild and renew so many
relationships.
I think an early reauthorization with a strong bipartisan
support would continue to send the right signal to the
industry, to the market and to our countries that America is
there and that we will be there with our EXIM Bank so that they
can not only compete but they can actually win these awards
around the world.
Senator Coons. Ms. Albright.
Ms. Albright. Thank you, Chairman Coons. Our two priorities
are our budget, our robust budget and also our candidate pool
legislation. Thank you.
Senator Coons. Can I ask in this open setting, the
President of Kenya will be here next week?
Ms. Albright. Yes. We are going to be involved in those
proceedings. We're very excited about it. We have signed a $60
million threshold program with Kenya and it will be principally
designed to work on some of the transportation and safety
issues in Nairobi which anyone who's been to Nairobi knows how
difficult getting around Nairobi can be.
We're very enthusiastic about it, and if things go well
with that threshold and if they continue to make advancements
on overall eligibility, we will also be in a position to
consider them from a compact. But we have to get through the
threshold well first.
Senator Coons. I'd welcome any chance to further
conversations. I'll be meeting with the President next week.
Mr. Nathan, if you might, and then I'll hand it over to Senator
Merkley, with my thanks to all three of these great witnesses
today.
Mr. Nathan. Well, thank you. Just briefly on really the
historic state visit that President Ruto will be making next
week. We've had the opportunity to meet with President Ruto
multiple times and find he and his team very constructive. We
have a package of several hundred million dollars, probably
around $300 million, of deals to announce during the state
visit, and I'm very proud of the work the DFC team did to get
us there. That will mean we have more than $1 billion of
current projects in Kenya.
We also and it relates to one of the things that we're
looking for additional budget support which is expanding our
overseas presence. Nairobi is a critical place both for
projects in Kenya, but also regionally for us to have
transaction officers or DFC staff on the ground.
Senator Coons. Thank you. I very much look forward to
continuing to work with you both during the state visit and in
the year and years ahead. Thank you for your leadership and for
your testimony here today.
I'll defer to Senator Merkley who in the absence of another
member arriving will close out the hearing when he's done
questioning. Thank you all very much today.
Senator Merkley. [Presiding.] Thank you very much, Chairman
and thank you all for coming in and sharing your experience and
expertise. Ms. Lewis, I wanted to try to understand better the
charter for EXIM. Isn't the charter actually passed by law?
Ms. Lewis. The charter is passed by law, yes. Yes, Senator.
Senator Merkley. Am I correct that in that law it says EXIM
reaffirmed the responsibility to review projects for
environmental impacts including ``effects upon the Global
Commons?''
Ms. Lewis. Senator, you know, first of all, I just really
appreciate the work that you've been doing as you call
attention to these types of issues. We look and evaluate each
of our transactions against our charter and our statutory
requirements and they're all done on a case-by-case basis.
Senator Merkley. Yes, but you didn't answer my question.
Are those four words in your charter that has been passed by
law that you shall consider ``effects upon the global
commons?''
Ms. Lewis. Well, our team does extensive due diligence,
Senator.
Senator Merkley. No, I'm just asking is that in your
charter or not?
Ms. Lewis. If it--from a legal perspective our charter is
very clear that Congress has given us.
Senator Merkley. You don't know if those words are in your
charter or not.
Ms. Lewis. Those words are in the charter, yes.
Senator Merkley. Okay, they are in the charter. Thank you,
that's what I was asking. Does it also say in your charter that
your procedure is ``shall permit the board of directors in its
judgment to withhold financing from a project for environmental
reasons?''
Ms. Lewis. Senator, it also tells us that we cannot
discriminate against applications----
Senator Merkley. I know, that wasn't my question. I am just
asking you about this particular clause.
Ms. Lewis. Congress has definitely made it very clear about
the statute and charter of EXIM Bank.
Senator Merkley. So, it shall permit the board of directors
to withhold financing from a project for environmental reasons.
That's in your charter, yes or no?
Ms. Lewis. The charter basically, Senator allows us to----
Senator Merkley. Why can't you just answer the question? Is
it in your charter or not?
Ms. Lewis. It does have it in our charter.
Senator Merkley. Thank you, very much. Now, you have this
non-discrimination language in your charter as well and it says
the non-discrimination prohibition starts with ``except as
provided in this act.'' Now, those other two clauses I just
read to you are provided in this Act. Is that not right?
Ms. Lewis. Senator, you know, one of the things that has
occurred----
Senator Merkley. I'm fascinated----
Ms. Lewis. I don't have the authority to make changes of
any magnitude, unilaterally----
Senator Merkley. I'm just fascinated that you won't
actually answer the question. I'm just reading you from your
own charter and you're head of the operation. You--I'm just
trying to establish for the record that this is what the
charter says.
Ms. Lewis. Our charter also gives us other explicit things
that the EXIM Bank has to do about non-discrimination and no
prohibition against size, sector or industry.
Senator Merkley. So, I just read to you except this
provided in this act, is that not the qualification on the non-
discrimination clause. Okay. I know you don't want to cooperate
in this line of questioning, and I'm really puzzled as to why
that is the case because the charter's very clear. It gives you
the power to approve or disapprove projects according to the
impact on the global commons.
It says that the non-discrimination clause is subject
except as provided in this Act and the environmental provisions
are provided in this Act. It says that explicitly shall permit
the board of directors to withhold financing for a project for
environmental reasons.
I believe that you all are deliberately evading the
responsibilities you have under this charter as written and I'm
extremely disturbed about that. Are you aware of how much
damage carbon pollution and methane pollution are doing to the
global commons?
Ms. Lewis. You know, Senator, I truly understand the
concerns that you have. I will continue to--would love to work
with you and your staff on these concerns to outline for you
how EXIM looks at all of our statute changes.
Senator Merkley. So, you're aware of my concerns but my
question was are you familiar with the damage that carbon
pollution and methane are doing to the Global Commons?
Ms. Lewis. You know, one of the things, Senator, that I
have done repeatedly at EXIM is how we have sought to work very
closely understanding how climate change is a real threat. We
understand the work that we have to do and we have been moving
very aggressively in that work.
Senator Merkley. So, you do understand the damage that
carbon and methane are doing to Global Commons? That's a yes?
Ms. Lewis. I understand that how we have at EXIM Bank
supported very large green energy projects, some of the largest
ones in the history of EXIM. I totally share, I understand the
concern that you have----
Senator Merkley. Why is it so hard? If you actually know
the science, why is it hard to say yes, I understand the damage
that carbon and methane are doing to Global Commons. Why is it
that--why is that----
Ms. Lewis. Senator, I can't comment on the science.
Senator Merkley. You can't comment on the science. Do you
ignore the science?
Ms. Lewis. No, EXIM looks at each transaction, Senator, on
a case-by-case basis.
Senator Merkley. Well, by case-by-case, some do a lot of
environmental damage and one of the great mysteries is why EXIM
is proceeding to explore financing for an LNG development in
Northern Mozambique.
Now, LNG is interesting because we call it liquified
natural gas. That's the industry term but anyone familiar with
the chemistry of it as this is methane that's liquified. You're
familiar with that?
Ms. Lewis. I'm familiar with that.
Senator Merkley. You're probably also familiar that methane
gas has a much higher heat absorbing, heat trapping power,
ounce for ounce than carbon dioxide?
Ms. Lewis. I cannot comment on the science----
Senator Merkley. I really encourage you to learn the
science then because you have a responsibility under your
provision to weigh environmental reasons on projects and to
interpret or understand the effects on the Global Commons and
that you have to educate yourself about----
Ms. Lewis. Yes.
Senator Merkley. If you're not educating yourself about
that, you're going to----
Ms. Lewis. Our team does educate us very well, Senator.
They do exceptionally due diligence, our engineers on all of
the projects that we do. On the one that you're specifically
speaking about, there has been no decision on that particular
transaction, and also that was a transaction that was done long
before I came into office. And no final decision has been made.
I definitely commit, Senator, to reviewing any of these
transactions with you in a confidential manner.
Senator Merkley. Well as we review it, I hope you'll take a
chance to actually pay attention to the science that you say
you don't like to weigh----
Ms. Lewis. I'm sorry.
Senator Merkley. No, go ahead.
Ms. Lewis. No, I was just going to say that our team does
exceptionally due diligence in all manners of these particular
projects and as they pass review, they're done in accordance
with our EXIM----
Senator Merkley. So, they do weigh the science and impact
on the environment?
Ms. Lewis. Our team would--I would love to make our
engineers and environmental people available to you, Senator,
to go with exactly how on that particular project.
Senator Merkley. Well, of course you're in charge. You're
the head of this operation. The buck doesn't pass down to say
I'm going to ignore the science and let my engineers tell me
that do whatever. Not when you have responsibilities on this
charter that you're ultimately the person accountable for.
Ms. Lewis. Yes, we do.
Senator Merkley. So, let me explain a little bit about
methane since it seems to be a mystery here. When it's produced
out from under the ground it leaks all over the place and we
have massive observations of those leakages. We have onsite, we
have UAV observations, we have satellite observations that
leakage makes it extremely damaging for the amount of energy
that it delivers.
It's estimated that if it replaces local coal, it's equal
in its climate damage to coal. However, when you spend extra
energy, turn it into a liquid, you've now spent a huge amount
of extra energy. You then spend a lot of extra energy
transporting it overseas. You then put it into a leaky gas
system somewhere around the world because all these systems
leak.
It's estimated by one study that if you have even 0.2
percent leakage it's equal to local coal. Most systems leak far
more than 0.2 percent. All of this means that this LNG is far
worse than local coal. That's the basic understanding of
scientists around the world. So, you're supporting, potentially
because you said it's under consideration, a proposal to
establish a huge American investment in something that's worse
than local coal and has massive impacts upon to quote your
charter, ``the global commons'', are you going to take into
account the enormous climate change impact of liquified methane
gas when you consider financing this project?
Ms. Lewis. There are numerous things, Senator, that our
team--our technical and our legal team take into consideration,
our environmental team and we would be happy to come and brief
you on that--on those specifics.
Senator Merkley. So, you're saying yes, that is one factor
not the sole factor but one of the factors you'll be taking
into account?
Ms. Lewis. It is numerous factors that we take and at this
juncture----
Senator Merkley. Well, there are numerous excluding this or
numerous including the climate impact?
Ms. Lewis. I cannot--since we look at each transaction on a
case-by-case basis, I would be remiss to be able to sit here
and say yes to that. I just know that our team----
Senator Merkley. Such a mystery to me. Your charter says to
consider the impact on the Global Commons. It says you have the
power to withhold financing for environmental reasons. LNG has
huge environmental impacts, worse than local coal and I can't
even get you to say it's even be one of the factors you'll
consider. Not the exclusive factor, but one of the factors.
Ms. Lewis. I can say, Senator, we do an exceptional due
diligence on all of ideals, and would love to come and brief
you about them.
Senator Merkley. When you brief me, are you going to tell
me that this is one of the factors that you'll take into
account?
Ms. Lewis. When the--our technical, legal, and
environmental team and experts come, we would love to be able
to, in a confidential setting, brief you on any of the
specifics.
Senator Merkley. Why did President Biden pause the approval
of more LNG export facilities here in the United States?
Ms. Lewis. Why?
Senator Merkley. Yes.
Ms. Lewis. Senator, I basically stay focused on the
transactions that EXIM has to do and follow the rules that
Congress has put before us in order to evaluate any type of
transaction.
Senator Merkley. So, the President's team said we're
enacting this pause in order to give due consideration for the
environmental impacts of LNG. You weren't aware of that?
Ms. Lewis. I'm aware of the--what the President put out,
yes. We seek----
Senator Merkley. So, if the President of the United
States----
Ms. Lewis. We seek to align with the President on all of
our transactions.
Senator Merkley. The President's environmental team is
saying that these impacts are so clear and solid. We have to
really weigh how they're evaluated. I think that's context for
also considering of this project and others. I'm going to spare
you any more questioning along this line.
Ms. Lewis. I'm fine.
Senator Merkley. I hope you've heard that we put this into
the charter for a reason. Ignoring it is not an option. Failing
to consider environmental impacts is not an option. Doing
additional damage to the world on the most important issue
facing humanity is really a crime against this planet and for
you to consider the possibility of continuing to fund massive
global climate damaging projects is completely at odds with the
protection of the Global Commons in your charter.
It's at odds with your power to withhold financing from a
project for environmental reasons and I hope the EXIM Bank will
become part of the solution instead of part of the problem.
ADDITIONAL COMMITTEE QUESTIONS
The Chair has asked me to close with the following notes.
Thank you all for joining us. We look forward to continuing our
work together as we move forward in fiscal year 2025 budget
process.
[The following questions were not asked at the hearing, but
were submitted to the Agency for response subsequent to the
hearing:]
Questions Submitted to the U.S. International Development Finance
Corporation
Questions Submitted by Senator Jeff Merkley
Question 1. Staffing the Office of Accountability--The U.S.
Development Finance Corporation has an Office of Accountability which
hears complaints about human rights and environmental impacts that can
undermine the sustainability of DFC projects and harm the very
communities that are meant to benefit from DFC's work. However, the
office is currently understaffed, and civil society organizations have
complained that impacted communities often only find out about high-
risk projects after approval.
1a. In your view, what is the role of DFC in providing remedy when
DFC projects harm the environment and communities?
Answer. The role of DFC, or any entity providing financial support
to a project, such as DFIs, ECAs, or commercial lenders, is to seek
effective remedy by those who cause or contribute to harm in the
supported project.
1b. What resources does the agency need from Congress to support
these efforts?
Answer. DFC's budget for administrative expenses supports staffing
and resources for the Office of Accountability. The Office of
Accountability currently has one full-time employee, and DFC intends to
hire two additional FTEs for that office.
Question 2. LNG in Mozambique--In 2020, EXIM approved $4.7 billion
in financing for the liquefied natural gas development (LNG) in
northern Mozambique. However, in 2021, Total--the energy company behind
the project--pulled back from the project due to the security situation
and increasing violence. The United States has put in place a pause on
LNG exports while it examines the climate, consumer and environmental
justice impacts of those facilities. In 2024, it seems that Total is
trying to move forward with the project and that EXIM is considering
supporting this project again.
2a. Why is DFC not reconsidering support for this project?
Answer. DFC issued a commitment to provide political risk insurance
for the ExxonMobil natural gas project in Rovuma, Mozambique (Area 4).
This project is on hold due to decisions taken by the sponsor to halt
progress towards a final investment decision. In these circumstances,
DFC is not in a position to take any steps related to this project as
approved by its Board.
2b. What are the conditions under which DFC does reconsider its
support for a project?
Answer. Once DFC has entered into a legally binding commitment, it
is generally obligated to move forward to closing the transaction.
Decisions to reconsider support for a project are based on the specific
facts and circumstances for the relevant transaction. But in general,
once DFC has entered into a commitment, it can only decline to sign
definitive documentation and proceed with a project for certain
specified reasons, including for material adverse changes, the
inability of the counterparty to perform project obligations, an
inability to complete due diligence to DFC's satisfaction, and failure
to satisfy relevant conditions precedent by specified deadlines.
______
Questions Submitted by Senator Chris Coons
Question 1. Countries around the world are increasingly turning to
nuclear as a carbon-free, reliable source of electricity that can help
promote energy security. The United States is actively competing with
Russia and China, among others, to establish these long-term commercial
and geostrategic relationships. Partners around the world are looking
for the United States to bring even small amounts of financing into
these projects to demonstrate the backing and support of the U.S.
Government.
1a. To what extent is DFC supporting investments in nuclear power
projects and how does DFC intend to support the U.N. Declaration to
Triple Nuclear Energy by 2050, which the United States endorsed last
year?
Answer. DFC is committed to supporting nuclear energy where we
identify projects that meet our investment criteria and fulfill our
mandate. DFC is in early-stage project discussions with several nuclear
energy project sponsors, which is a reflection of a concerted business
development effort undertaken over the course of the past 3 years. DFC
has signed several letters of interest (LOIs) to consider applications
for financing for those nuclear energy projects. This includes three
LOIs signed with nuclear technology developer NuScale Power for
projects in South Africa, Indonesia, and Romania. The Romania LOI was
later updated to include the project sponsor, RoPower, as DFC's
potential counterpart and noted DFC's interest in reviewing
applications for financing for this project. DFC also signed an LOI
with a Polish company, OSGE, for two small modular reactor projects
using GE/Hitachi technology, and is expressing interest in reviewing
applications for financing for these projects in the future. DFC has
had exploratory discussions on various potential conventional nuclear
projects in the region as well.
1b. How do DFC investments in nuclear power projects support job
creation and economic activity domestically?
Answer. DFC is in early-stage project discussions with several
nuclear energy project sponsors and has not yet completed any
investments to support nuclear power projects. Therefore, the requisite
information on any specific projects' contributions to job creation and
economic activity is unavailable.
1c. What challenges exist to expanding financing for such projects?
Answer. DFC's ability to provide financing for nuclear energy
projects faces several key challenges:
First, many conventional projects in DFC's target markets have not
reached a stage of maturity where DFC could consider providing
financing. Emerging technologies like small modular reactors have not
been deployed commercially to date and lack full licensing and
regulatory approvals in the United States and abroad. Underwriting a
technology that has not been deployed commercially or fully developed
in the United States is a significant challenge.
Second, although DFC has established an initial internal due
diligence framework for nuclear energy projects, due diligence of large
investments with substantial environmental and social risks, legal and
regulatory complexities, and commercial risks requires significant
staff time and resources.
Third, DFC's opportunity to invest at earlier stages in the project
lifecycle would require the use of its equity or technical assistance
products, both of which consume significant amounts of limited annual
appropriations. DFC support for nuclear energy would therefore limit
the amount of resources available for DFC's other priorities.
And finally, DFC's limited maximum contingent liability--
effectively a cap on the size of DFC's portfolio--is also a challenge,
because high-cost investments using technologies in early stages of
deployment with long development timelines may cause DFC to reach this
limit quickly and prevent it from pursuing transactions in lower-risk
sectors with significant development and foreign policy impacts. DFC
intends to ask Congress to raise the maximum contingent liability from
$60 billion to $120 billion through legislation to reauthorize DFC.
Question 2. One of DFC's tools, political risk insurance (PRI), has
proven critical in supporting so-called ``debt-for-nature swaps'' in
which countries receive debt relief backed by PRI in exchange for
commitments to conservation and sustainable development. I want to be
sure we are maximizing DFC's investments in these and other
conservation-related projects.
2a. How is DFC identifying and supporting projects that conserve
nature and biodiversity while also contributing to sustainable
development? What types of innovative models is DFC using to finance
such investments?
Answer. DFC is well-established as a leading provider of the
political risk insurance that is core to debt conversion transactions.
However, DFC uses its entire set of tools in supporting other private-
sector driven nature-based projects, such as providing sustainability
linked loans to a timber and reforestation operation in South America.
This type of transaction enables improved resiliency for smallholder
farmers, ethically produced timber and other agricultural products, and
ecosystem services such as the provision of clean water to local
communities. The sector is quickly emerging and highly innovative and
DFC is supporting some of the leading sponsors and developers who are
finding ways to profitability conserve land and natural resources.
2b. Are there changes you are looking to make to advance more
nature conservation finance? Specifically, how can DFC scale its debt
conversion work to do more of these types of transactions for nature at
a faster pace to meet the need?
Answer. DFC is constrained by the capacity of our personnel and by
the numerous demands upon the agency, and we are working to develop our
workforce to be able to work on more of these transactions. Debt
conversions are highly complex, requiring simultaneous negotiation
among multiple stakeholders from the NGO, financial, and public
sectors. They therefore require highly skilled personnel.
Legislative changes would help DFC support more transactions that
drive economic development and U.S. foreign policy interests, including
debt conversion transactions, and do so at a faster pace. For example,
changes to DFC's country eligibility framework could open additional
countries to DFC investment, including several with significant debt
burdens and ambitions for dedicating additional resources to
environmental conservation. Raising DFC's Maximum Contingent Liability
from $60 billion to $120 billion would also provide an opportunity to
expand DFC's debt conversion work further. DFC intends to ask Congress
to make changes to country eligibility and maximum contingent liability
through legislation to reauthorize DFC.
Even without Congressional action, DFC has been using its existing
tools and resources to do more. At COP28, DFC announced, along with the
Inter-American Development Bank, a task force to create a debt-for-
nature accelerator. This effort will help more DFIs and MDBs
participate in future debt-for-nature conversion transactions, scaling
the model that DFC has helped create.
Question 3. DFC undertakes underwriting and due diligence reviews
to determine whether to move forward with financing a given project.
Unfortunately, these processes can take more time and lead to higher
costs, which can potentially place U.S. technologies at a disadvantage
compared to our international competitors.
3a. What steps can DFC take to improve and streamline their
internal processes, shorten review timelines, and reduce burden for
projects?
Answer. Much of DFC's work is in challenging jurisdictions, which
adds complexity to supporting private sector projects. Ensuring that
projects meet our requirements, such as bankability, environmental and
social, integrity and reputation standards can take time to assess and
resolve. The principal objectives of DFC's recent realignment to sector
teams included strengthening business development, developing sector
expertise, and deepening client relationships to support origination
efforts, which should enable more rapid identification and processing
of projects. DFC is also ramping its investment in personnel and
refining its internal processes and structures with the goal of
reducing timelines, including by investing in people and information
technology infrastructure to better serve clients and manage DFC's
portfolio. DFC is committed to streamlining the collection of
information from project sponsors and modernizing the DFC forms portal
facing the public.
Question 4. While DFC and EXIM have different mandates, there are
opportunities for greater collaboration on projects between the two
agencies.
4a. How are DFC and EXIM currently collaborating on projects? What
internal or external barriers exist to enhancing cooperation?
Answer. DFC and EXIM have distinct programs, tools, and authorities
that are not duplicative of each other. At the staff level,
collaboration exists to refer projects to each other where a project
sponsor may come to the wrong program. The ability to jointly support
larger projects only exists in certain sectors. For example, in an
infrastructure project, there may be significant exports that EXIM
would support, while DFC would support the in-country project itself.
The main barrier is the limited number of projects and sectors that are
in need of both types of support.
______
Questions Submitted by Senator Brian Schatz
Question 1. Analysis from the International Monetary Fund
highlighted that dozens of developing countries that are most
vulnerable to risks such as intensifying droughts and storms are also
significantly burdened by debt \1\--limiting the resources available to
invest in resilience and conservation. The U.S. International
Development Finance Corporation (DFC) has taken an innovative approach
to addressing these dual challenges, such as its role in the Galapagos
Marine Bond.
1a. What additional opportunities exist for DFC to support debt-
for-nature conversions and other innovative forms of nature finance?
Answer. DFC has a growing pipeline of debt-for-nature projects in
Africa, the Western Hemisphere, and Asia. DFC is also underwriting debt
conversion projects for other impacts, such as food security and
resilience through regenerative agriculture, and is considering debt
conversion projects for health impacts. These transactions help
countries to lower their debt burden, which makes them more resilient
against economic coercion. While debt-for-nature projects could present
excellent opportunities for Small Island Development States, DFC is
unable to provide such support in many of these due to their high-
income status. Finally, DFC is also supporting carbon credit-generating
mangrove reforestation projects in Sub-Saharan Africa.
1b. What role can Congress, the private sector, and philanthropic
partners play in supporting these additional opportunities?
Answer. Congress, private sector actors, and philanthropic players
are welcome to share project opportunities with DFC for consideration
to help scale DFC's project pipeline.
Where philanthropies are able to take risks and costs, DFC believes
it is possible to blend such support with DFC's programs to magnify the
reach of DFC's products.
Congress can support DFC's efforts by addressing current
constraints in its pending reauthorization. Reauthorization should
provide DFC with the risk capacity to match the policy objectives and
risk appetite for this class of large projects. DFC will be able to
support additional debt-for-nature opportunities using DFC's PRI
authority by increasing DFC's Maximum Contingent liability from $60
billion to $120 billion and codifying DFC's ability to collect and use
fees paid by its clients.
---------------------------------------------------------------------------
\1\ Swapping Debt for Climate or Nature Pledges Can Help Fund
Resilience (imf.org).
______
Questions Submitted by Senator John Boozman
Question 1. What specific steps is the DFC taking to increase U.S.
presence in the Indo-Pacific and prove that the U.S. is a better
alternative to coercive PRC investment?
Answer. DFC's model of private sector partnership and financially
sustainable growth is in particular demand in the Indo-Pacific. It
stands in clear contrast to the PRC's statist and sovereign debt-fueled
approach.
In the Indo-Pacific region, DFC has increased its investments from
$4 billion in 2022 to more than $9.6 billion cumulatively by the end of
2023. At $3.8 billion of investments, India, a like-minded partner, is
DFC's largest market and comprises almost 10 percent of DFC's global
portfolio.
DFC also announced more than $700 million in new investments in the
Association of Southeast Asian Nations (ASEAN) countries last year.
DFC's portfolio in Indonesia has expanded to include investments in
geothermal energy and support for small businesses and is now over $562
million. In Vietnam, with whom the United States has a Comprehensive
Strategic Partnership, DFC has grown its portfolio from under $50
million in 2022 to more than $700 million by September 2023.
DFC recently finalized its partnership with Japan and Australia to
support Telstra's acquisition of Digicel's telecommunications assets in
the Pacific. This strategic transaction materially advanced DFC's
partnership with these two key allies. DFC further expanded regional
partnerships by signing a trilateral MOU with Japan and the Republic of
Korea in September 2023. DFC also signed a bilateral MOU with Taiwan
International Cooperation and Development Fund in February 2024.
In addition to its existing offices in Indonesia, India, Singapore,
and Thailand, DFC is working to open offices in Vietnam and the
Philippines to expand our regional presence and advance private sector
investment in the region.
a. Can you share any challenges or obstacles the DFC has
encountered implementing its projects in the Indo-Pacific, and ways it
has or currently is overcoming them?
Answer. DFC faces a variety of challenges in the Indo-Pacific. DFC
can only work where its financing is additional to private sources of
financing. Many countries across the Indo-Pacific region have
relatively sophisticated local bank and capital markets, which can
supply attractive financing for commercially viable investments.
Additionally, the infrastructure sector in this region often has heavy
state involvement. Because DFC focuses on private sector opportunities,
this limits opportunities for DFC to find viable projects in that
sector.
DFC is making progress in overcoming these challenges by--
increasing its on-the-ground presence in the region to identify more
opportunities to catalyze private investment and expand our regional
portfolio. This expanded footprint is helped by DFC's regional
collaborations and partnerships. By expanding our presence and
collaborating closely with partners, we are better equipped to advance
private sector investment opportunities and offer quality, standards-
based alternatives to PRC-backed financing.
b. Are there any specific types of projects DFC is prioritizing,
and why?
Answer. DFC focuses its efforts to source commercially viable
projects in five strategic sectors: infrastructure (including digital
and critical minerals), energy, agriculture, health, and support for
small businesses. These are not only DFC's broad priority sectors, but
they also represent the biggest needs throughout the Indo-Pacific.
Question 2. Can you elaborate more on some of the over $1 billion
in commitments made in Ukraine?
Answer. DFC committed more than $425m in new deals since February
2022, which brought overall exposure past $1bn in country. Over half of
DFC's exposure in country is political risk insurance, an important
tool that is helping to de-risk investments while the conflict is
ongoing. Food security, support for small businesses, and healthcare
are some of DFC's priorities in supporting the private sector in
Ukraine.
A few highlights of DFC's portfolio.--DFC committed three separate
deals for a total of $75 million with Ukrainian banks to help mobilize
capital for small businesses in Ukraine, with a focus on the
agricultural sector. DFC also committed to a $25 million equity
investment in an investment fund that is providing growth capital to
fast-growing, technology-enabled small and medium size businesses
primarily in Ukraine.
a. Do any of these commitments involve strengthening global food
security, and are projects such as these a priority of the DFC?
Answer. Food security is a priority for DFC globally and in
Ukraine. In addition to DFC's support for Ukrainian banks, which has a
focus on the agricultural sector, one of DFC's key projects in Ukraine
is DFC's $250 million loan to MHP SE. This project has allowed the
Ukrainian poultry and grain producer to refinance maturing debt and
support the continued maintenance and war-related expenditures of its
poultry and grain production. The loan will also support the company's
ability to increase food production and storage and support its export
capacity. DFC is also focusing on logistics investments that support
the agricultural sector.
______
Questions Submitted by Senator Bill Hagerty
Question 1. Mr. Nathan, you shared with me during the hearing that
you were not aware of any DFC policies that disfavor LNG projects.
1a. Can you provide me a full list of LNG projects that the DFC has
supported?
Answer. The following list includes all projects involving natural
gas (rather than limited to liquified natural gas [LNG] only) approved
by DFC:
--------------------------------------------------------------------------------------------------------------------------------------------------------
Project Name Country Product Amount FY Description
--------------------------------------------------------------------------------------------------------------------------------------------------------
Central Termica de Temane........................................ Mozambique Direct loan $200,000,000 FY20 450MW gas-fired power
plant
ERU Gas Trading.................................................. Ukraine Insurance $62,000,000 FY20 Expansion of a
previously insured gas
storage, transportation,
and trading business
Pearl Petroleum Company Limited.................................. Iraq Direct loan $250,000,000 FY21 Development,
construction, and
operation of a natural
gas processing facility
and associated
infrastructure and
drilling of up to 5
wells in the Khor Mor
gas field
Rovuma LNG Phase I............................................... Mozambique Political risk $1,500,000,000 FY22 Development of offshore
insurance gas production to
process liquefied
natural gas
ERU Moldova...................................................... Moldova Political risk $400,000,000 FY22 Non-construction
insurance elements of natural gas
trading to support the
purchase of natural gas
as Moldova diversifies
energy sources away from
Russia
Tetra4........................................................... South Africa Direct loan $535,000,000 FY23 Development and
commercialization of a
helium and natural gas
field including the
construction of a new
helium liquefaction and
liquefied natural gas
plant
ONEX Elefsis Shipyards and Industries............................ Greece Direct loan $125,000,000 FY23 Acquire, rehabilitate,
and expand a shipyard in
Elefsina, Greece, that
is projected to provide
shipping services for
energy-sector vessels
(including LNG tankers)
and other commercial
ships
PKN ORLEN........................................................ Poland Loan g$500,000,000 FY23 Loan guaranty to enable
the Polish energy
company to effectively
limit its commodity
price risk and reduce
liquidity constraints
associated with sourcing
natural gas from
alternative suppliers
Bulgartransgaz................................................... Bulgaria Guaranty $365,000,000 FY24 Expansion of the Chiren
underground gas storage
facility in Bulgaria
CECA SL Generation Limited....................................... Sierra Leone Direct loan $292,000,000 FY24 105MW liquified
Political risk $120,000,000 FY24 petroleum gas/liquified
insurance natural gas power plant
--------------------------------------------------------------------------------------------------------------------------------------------------------
1b. Which of these projects are unrelated to providing alternatives
to Russian gas in Europe?
Answer. (1) CECA Sierra Leone Generation, (2) Tetra 4, (3) Rovuma
LNG, (4) Pearl Petroleum, and (5) Central Termica de Temane are
unrelated to providing alternatives to Russian gas in Europe.
1c. Please provide a full list of LNG projects that have come to
the DFC's attention, but which the DFC has declined to support. Please
provide the justifications used in each case to deny support.
Answer. DFC begins tracking project inquiries at the stage at which
potential clients submit applications. Though DFC has supported several
gas or LNG projects (see list in response to question 1), DFC has
declined to support four gas or LNG projects which submitted complete
applications for DFC support (see list below). Full project names and
some identifying details are not included due to business
confidentiality reasons.
Prior to submitting applications, potential clients often seek
informal feedback from DFC staff to understand whether their projects
are likely to meet DFC's investment criteria. Where DFC provides
feedback that a project is unlikely to meet these criteria, potential
clients may decide not to submit an application and these projects
would not be formally tracked. Reasons why projects could fail to
attract DFC support include lack of project maturity, unclear impact,
poor commercial viability, lack of alignment with U.S. government
policies, or lack of compliance with DFC standards (including legal,
environmental, or social requirements). DFC does not currently track
concepts or similar early interactions and is unable to provide a full
list of such concepts.
However, below is the list of projects for which applications have
not moved forward:
----------------------------------------------------------------------------------------------------------------
Project Description Region Year Reason for DFC declining to support
----------------------------------------------------------------------------------------------------------------
LNG production facility with compression and Sub-Saharan Africa 2024 Not aligned with DFC environmental
storage infrastructure..................... standards
Energy investment fund with portfolio Sub-Saharan Africa 2021 Withdrawn by applicant
including LNG/natural gas power plants.....
Development of offshore gas field........... Sub-Saharan Africa 2021 Not aligned with focus area in
project country
Development of a gas power plant............ Europe 2021 Sponsor seeking equity. DFC did not
have sufficient equity capacity to
pursue this kind of project
----------------------------------------------------------------------------------------------------------------
Question 2. You stated in your testimony that a key aim of DFC
financing is to enable ``reliable access to energy.''
2a. Can you please tell me the number and dollar value of energy
projects the DFC has undertaken during your tenure, compared with the
number and dollar value of projects that could be categorized as ESG-
related projects?
Answer. DFC does not categorize any projects as ESG-related; DFC
requires all projects to comply with DFC's Environmental and Social
Policy and Procedures (ESPP).
DFC's energy generation commitments in FY22 and FY23 totaled $3.6
billion across 30 transactions.
2b. Of the energy projects the DFC has undertaken during your
tenure, what is the dollar value of hydrocarbon-based projects compared
with non-hydrocarbon energy projects?
Answer. Of the $3.6 billion of energy generation projects committed
in FY 22 and FY 23, $1.7 billion are hydrocarbon based.
2c. Can you please provide a full list of the projects that the
DFC's ESG advisory team has recommended against supporting?
Answer. DFC's Office of Development Policy (ODP) is responsible for
evaluating environmental and social risk. This office includes staff
that review all projects against DFC's ESPP to evaluate their ability
to meet the requirements of the ESPP, including internationally
recognized environmental and social standards (IFC Performance
Standards). The ESPP includes a list of DFC's Categorical Prohibitions,
which do not include prohibitions around fuel type.
Question 3. You mentioned in the hearing that the DFC does not
currently have any LNG projects in the Indo-Pacific.
3a. What Indo-Pacific countries have communicated with the DFC
about LNG projects?
Answer. DFC has informally communicated with various Indo-Pacific
Government representatives and companies about LNG projects. However,
projects have not advanced to due diligence. Common reasons for
projects not proceeding to due diligence include lack of project
maturity, unclear development or strategic impact, lack of alignment
with DFC's investment criteria (including commercial, legal,
environmental, or social factors), or lack of staff bandwidth to accept
new projects. Projects must be commercially viable to receive DFC
support.
3b. Specifically, what discussions have the DFC had with Vietnam
about LNG projects?
Answer. DFC's investment staff has had general discussions about
natural gas projects in Vietnam. However, none of these resulted in
projects that proceeded to applications or due diligence. Common
reasons for projects not proceeding to due diligence are outlined in
the response to question 3a.
3c. If any Indo-Pacific LNG projects have been discussed, please
provide the specific reasons for which the DFC did not pursue them.
Answer. Common reasons for projects not proceeding to due diligence
are outlined in the response to question 3a.
______
Questions Submitted by Senator Marco Rubio
Question 1. Last year, shortly before you testified before this
committee, the DFC announced it would be restructuring the organization
into five major issue areas: infrastructure and minerals, energy,
health and agriculture, small business support, and funds, rather than
a previous structure around investment instruments. How has this
restructuring reoriented DFC to better compete with Beijing's Belt and
Road Initiative (BRI)?
Answer. DFC investment teams are now realigned into six new teams:
health and agribusiness, infrastructure, energy, small business and
financial services, funds, and catalytic investments. All DFC products
(debt, insurance, funds investments, equity, and technical assistance)
will be available across all sectors. Our new structure will allow us
to deliver all our products to our clients more effectively to better
serve them. The realignment will also enable us to better understand
market needs, conduct more targeted business development, and deliver
high-standard, high-quality offerings as an alternative approach to
that of our strategic competitors without adding unsustainable
sovereign debt.
1a. Will the restructuring include a reduction in force at the DFC?
Answer. No. Since the realignment, we have continued to add staff
to the DFC workforce.
1b. There was no mention of major restructuring in your FY2024 or
FY2025 congressional budget justifications. Why was this omitted from
the budget?
Answer. The FY2024 CBJ was written and submitted in April 2023. The
realignment was notified to Congress in September 2023. The realignment
was formalized in January 2024, and the new sector areas are mentioned
in the executive summary of the FY2025 CBJ, which we submitted in March
2024. DFC did not need additional funding to implement realignment.
1c. Have you consulted with Congress, and its relevant committees,
on the significance of this restructuring?
Answer. Yes. Consulting with Congress remains important to us. DFC
senior leadership began offering briefings on DFC's proposed
realignment to SACFO, SFRC, HACFO, and HFAC Chairmen, Ranking Members,
and committee staff in June 2023. During these briefings, DFC presented
a vision for what the realignment looked like noting that some final
decisions were pending, but the desire to bring Congress to the table
early outweighed other concerns. In August 2023, before the
Congressional Notification went to the Appropriations Committees, DFC
leadership held prior consultations with core committee staff as
required per the FY23 appropriations bill language. During these
consultations, DFC leadership consulted with Hill stakeholders as well
as previewed the then draft Congrssional Notification, including
explaining anything that changed since the previous engagement.
1d. The BUILD Act states the DFC must consider the national
security interests of the U.S. To that end, how many investments
focused on national security projects have been completed?
Answer. DFC carefully considers the foreign policy impact of all of
our investments. Some deals have a particular focus on strategic
competition or other national security considerations, such as those to
build or modernize ports, ICT networks, and other strategic
infrastructure such as roads and airports. These are often located in
particularly strategic locations as well, including major trade and
communications corridors, and strategically important partners such as
Vietnam, India, the Philippines, Sri Lanka, and Brazil, among many
others. However, all of our projects support the national security
interests of the United States by promoting economic development, which
helps strengthen stability and deepen economic relationships between
the United States and host countries.
1e. How does the DFC adapt to the ever-changing national security
risk environment?
Answer. DFC has prioritized the expansion of its Policy
Coordination Group (PCG), which provides connectivity between DFC and
the interagency through the White-House-led national security and
foreign policy interagency planning process and serves as the
interagency liaison into the Corporation for all key foreign policy
making agencies--including the National Security Council, Department of
State, and other departments and agencies as appropriate. PCG staff
maintain regular channels of communication with diplomatic posts in the
field, as well as with State, Commerce, DoD, USAID, USTDA, the NSC, and
many others. This close connectivity ensures that our tools are well
integrated into relevant policy processes, so DFC can best support the
administration's foreign policy objectives. This connectivity also
enables us to adjust to a constantly changing national security
environment that identifies opportunities and risks for deploying DFC
tools. From a risk management perspective, our due diligence processes
consider the potential national security implications of a project's
host country political and security environments.
1f. Can you describe the type of infrastructure, mineral, and
energy investments the DFC will prioritize after its restructuring?
Answer. DFC will continue to prioritize making transparent,
sustainable, private sector-driven investments in hard infrastructure,
including roads, railways, ports, and airports; digital infrastructure,
including trusted telecommunications; and energy and critical minerals,
including the diversification and resilience of supply chains.
In hard infrastructure, DFC will continue to prioritize making
investments such as the $553 million loan to construct and operate the
Western Container Terminal in Sri Lanka; the $125 million loan to
acquire, rehabilitate, and expand the Elefsina Shipyard in Greece; the
$150 million loan to modernize and expand the Puerto Bolivar container
port in Ecuador; and the $150 million loan to renovate, expand, and
operate the Freetown International Airport in Sierra Leone.
In digital infrastructure, DFC will continue to prioritize making
investments such as our $50 million guarantee to support trusted
Australian operator Telstra's acquisition of Digicel Pacific's telecom
network and assets, which ensured the continued provision of open,
safe, and secure mobile service to about 60 percent of Pacific telecom
users. Additionally, DFC will continue to prioritize making co-
investments with our allies and partners. (In this case, DFC co-
invested with our Japanese partner JBIC and our Australian partner EFA
under our Trilateral Infrastructure Partnership.)
In energy and critical minerals, DFC will continue to prioritize
making investments that advance development and foreign policy goals,
including those that displace potential or actual financing from our
strategic competitors. Examples of such projects include our $500
million loan to produce solar panels using cadmium (instead of PRC-
sourced polysilicon) in India; a $126 million loan to produce
geothermal power in Indonesia; a $550 million loan to an energy-
efficient polypropene plant in Turkey; and a $292 million loan and $120
million in insurance for the construction of a gas-fired electric power
plant in Sierra Leone.
1g. Congress has previously passed legislation to allow investment
in upper-income countries in Central and Eastern Europe, but only for
energy projects. Do you recommend DFC do the same for telecoms, energy,
or infrastructure projects in Latin America, Africa, and Asia?
Answer. DFC is able to support telecom, energy, and infrastructure
projects in countries that are classified by the World Bank as upper-
middle-income countries. By law, DFC is not able to support such
projects in high-income countries, with the exception of energy
projects in Europe. The current country eligibility framework has made
it more difficult for DFC to effectively counter strategic competitors
and support developmental projects in certain jurisdictions because of
the volatility of country classifications from year to year, and
because the current framework does not take into account that some
countries that are classified as high-income may still struggle to
attract private capital. DFC intends to ask Congress to change the
country eligibility framework through legislation to reauthorize DFC.
DFC will ask that Congress authorize DFC to pursue transactions in high
income countries in strategic sectors and for strategic purposes,
subject to Presidential certification.
1h. What programs do you have in the Western Hemisphere? Can you
provide the status of each of those programs?
Answer. The Western Hemisphere remains an important market for DFC,
with $9.4 billion in exposure at the end of FY2023. Its portfolio of
investments across the region are spread out across the region's major
economies, in countries like Brazil, Mexico, and Colombia, as well as
smaller but strategically important markets like Ecuador and the
countries of Northern Central America.
As in the rest of the world, DFC is focused on supporting projects
aligned with its sector priorities, including infrastructure and
critical minerals, energy, health and food security, small business
support, and investment funds. DFC's investments in the region include
support for strategic infrastructure such as ports and small cities,
renewable energy generation and e-mobility, critical minerals
investments, affordable housing, health, financial inclusion, and
support for small and medium businesses. These investments provide
financing alternatives to those provided by our strategic competitors
and support other priorities, such as reducing migration.
DFC has also opened an office in Sao Paulo, Brazil, and has
announced plans to open an office in Santo Domingo, Dominican Republic.
It expects its new on-the-ground presence to help identify additional
opportunities for private sector support in the region.
Question 2. The DFC has said that it ``applies a gender lens to
every project it considers'' and is committed to spending billions to
fight the ``climate crisis.'' Which part(s) of the BUILD Act do these
concerns respond to?
Answer.
--BUILD Act Sec. 1451 (f): DFC should invest so as to drive women's
economic opportunities and prioritize the reduction of gender
gaps.
--BUILD Act Sec 1421 (g.3.A): DFC should promote the development of
small and medium-sized enterprises.
--BUILD Act Sec 1421 (g.3.C): DFC should promote policies and
practices conducive to economic freedom.
--BUILD Act Sec 1445 (a.4): DFC should pursue projects of all sizes
that are designed to work in the most underdeveloped areas,
including countries with chronic suffering as a result of
extreme poverty, fragile institutions, or a history of
violence.
2a. Do these concerns override the BUILD Act's directive that DFC
``provide countries a robust alternative to state-directed investments
by authoritarian regimes and United States Strategic competitors''?
Answer. No. Not all DFC projects have gender or climate benefits,
and DFC does not require them to. For those that do, the gender and
climate benefits are accretive to the economic development and
strategic impacts of a project. Fundamentally, DFC investments that
support women-owned, women-managed, or women-serving businesses
contribute to economic growth, security, and resilience in host
countries and therefore help advance U.S. strategic interests. Beyond
that, projects in highly strategic sectors like energy or
infrastructure may have ancillary gender or climate benefits. The
agency's 2X Women's Initiative was launched in 2018 by OPIC under the
previous administration and has continued through active partnership
with our G7 allies.
2b. Has the DFC rejected an investment project that could
potentially compete with a Chinese-led investment bid because that
project did not advance gender equality or combat climate change in a
partner country?
Answer. No. DFC projects are not required to advance gender
equality or combat climate change.
______
Questions Submitted to The Honorable Reta Jo Lewis President and Chair,
Export-Import Bank of the United States
Questions Submitted by Senator Jeff Merkley
Question 1. LNG in Mozambique.
In 2020, EXIM approved $4.7 billion in financing for the liquefed
natural gas development (LNG) in northern Mozambique. However, in 2021,
Total--the energy company behind the project--pulled back from the
project due to the security situation and increasing violence. The
United States has put in place a pause on LNG exports while it examines
the climate, consumer, and environmental justice impacts of those
facilities. In 2024, Total is trying to move forward with the project
and that EXIM is considering supporting this project again.
1a. What is EXIM's process for reconsidering support for this
project and what conditions must be met for EXIM to reapprove support?
Answer. EXIM does not reconsider previously approved transactions.
If parties to a transaction make material changes to the substance of
the agreement, EXIM's Board must approve those material changes. The
Mozambique project represents a rare instance where, following EXIM
Board approval, the sponsor paused the project because of a force
majeure situation. The sponsor has signaled its intent to resume the
project, which would represent a material change to the timeline, and
would require an amendment to change the timeline.
Question 2. Greenhouse Gas Emissions
Please provide responses to the following clarifying questions:
2a. How does the EXIM Board of Directors consider the impact of
greenhouse gas emissions of projects it supports?
Answer. Upon receipt of an application, EXIM staff assess the
project in accordance with our ESPGs, which reference the International
Financial Corporation (IFC) Performance Standards and the Equator
Principles (EP4)--the standards used by global lenders in international
project financing. In accordance with these standards, project sponsors
assess and quantify project-related greenhouse gas emissions, which are
reviewed by EXIM staff and independent consultants. Where EXIM staff
identify gaps, they include them in the presentation to the Board for
consideration. And for high carbon intensity projects, staff also
develop and submit to the Board a detailed description of project-
related greenhouse gas emissions mitigation measures, including
additional feasible options.
EXIM also posts the projected project-related emissions for
projects with annual emissions of at least 25,000 metric tons on its
website and reports the emissions related to its authorizations on its
website prior to Board consideration and within its Annual Report.
More broadly, I have directed EXIM staff to review and update the
ESPGs, consistent with our Charter and applicable laws. This review
will consider current international environmental review standards and
the latest climate science. As we move this process forward, it is
essential that we get input and feedback from Congress, stakeholders,
and the public on how to ensure we are striking the right balance so
that the agency can fulfill its core mission of facilitating exports
and supporting U.S. jobs, while taking into full account the potential
adverse environmental impacts associated with applications for agency
financing.
2b. How many business development and underwriting staff are
specialized in fossil fuels (oil and gas, mining, etc.)?
Answer. EXIM staff are assigned to projects based on pipeline needs
rather than sector. EXIM's Structured & Project Finance Division
includes a Power Group and a Commodities Group, each of which has three
underwriters who analyze and negotiate both fossil and non-fossil
projects, including renewable energy, nuclear energy, metals and rare
earth/critical minerals mining projects. EXIM's Global Business
Development staff have a regional focus and cover all industry sectors
with a priority towards EXIM mandates from Congress: CTEP, small
business, sub--Saharan Africa, environmentally beneficial, and
renewable energy.
2c. What steps are EXIM staff taking to develop fossil fuel
transactions, including outreach to industry, having staff located near
key hubs and speaking at conferences?
Answer. As a demand-driven agency, EXIM does not initiate projects.
EXIM staff focus on transactions in our statutorily mandated areas--
renewables, small business, transformational exports, MMIA, etc.--the
Structured and Project Finance Division includes a Power Group and a
Commodities Group, each of which has three underwriters who analyze and
negotiate both fossil and non-fossil projects, including renewable
energy, nuclear energy, metals and rare earth/critical minerals mining
projects.
2d. What steps are EXIM staff taking to develop renewable energy
transactions, including outreach to industry, having staff located near
key hubs and speaking at conferences?
Answer. As a demand-driven agency, EXIM does not initiate projects.
However, EXIM is taking steps to facilitate greater opportunities in
renewable energy. For example, EXIM led the charge to expand the OECD
Climate Change Sector Understanding (CCSU) to provide additional
incentives for project sectors that facilitate foreign adoption of
renewable energy projects or that otherwise support investment in
projects that reduce greenhouse emissions.
EXIM is also looking to bring on more staff to support
transactions. We recently hired an experienced professional who
specializes in renewable energy transactions and has underwritten green
hydrogen, solar, biofuels, wind, and geothermal transactions. EXIM's
recently appointed Vice President of Structured & Project Finance has
more than 20 years of experience in the renewables sector. Both are
well connected in the renewables sector and are continuously being
invited to speak at conferences and workshops to promote EXIM
financing. Last year, we hired a second engineer with appropriate
subject matter expertise to facilitate efficient processing of
renewable energy related project applications. These and other EXIM
staff participate in a variety of intergovernmental initiatives in the
renewables sector including the Department of Energy's Federal
Consortium for Advanced Batteries, Power Africa, and Clean Edge Asia.
These initiatives help promote U.S. exports overseas to specific
projects that are being tracked and developed by our sister agencies.
2e. How many fossil fuel industry conferences has EXIM board and
staff attended since January 20th, 2020?
Answer. Our records indicate that since January 20, 2020, EXIM
Board members and staff have attended at least 30 conferences with at
least a partial focus on fossil-fuel energy.
2f. How many speeches has EXIM board and staff given at fossil fuel
industry conferences since January 20th, 2020?
Answer. Our records indicate that since January 20, 2020, EXIM
Board members and staff have given at least five speeches at
conferences with at least a partial focus on fossil-fuel energy.
2g. How many renewable energy conferences has EXIM staff and board
attended since January 20th, 2020?
Answer. Our records indicate that since January 20, 2020, EXIM
Board members and staff have attended at least 39 conferences with at
least a partial focus on renewable energy.
2h. How many speeches at renewable energy conferences has EXIM
staff and board given since January 20th, 2022?
Answer. Our records indicate that since January 20, 2020, EXIM
Board members and staff have given at least nine speeches at
conferences with at least a partial focus on renewable energy.
Question 3. Greenhouse Gas Emissions
EXIM's Charter sets ``a goal of the Bank to ensure that not less
than 5 percent of the applicable amount (as defined in section 6(a)(2))
is made available each fiscal year for the financing of renewable
energy, energy efficiency (including battery electric vehicles,
batteries for electric vehicles, and electric vehicle charging
infrastructure), and energy storage technology exports.'' Please answer
the following:
3a. What specific steps is EXIM taking to meet this goal in future
fiscal years?
Answer. I have encouraged EXIM staff to increase their outreach in
the renewable energy sector to increase awareness of the tools at
EXIM's disposal to help business.
Because many clean energy transactions, like other transactions in
emerging sectors, carry higher rates of risk, EXIM is asking Congress
for flexibility around the statutory default rate cap. EXIM has
previously asked Congress to raise the cap from two to four percent,
and as part of the FY 2025 budget request, EXIM is seeking a default
rate cap exemption for CTEP transactions. Greater flexibility would
allow EXIM to compete more aggressively against the PRC and embrace
higher risk technologies and markets, ensuring U.S. exporters can
compete on more equal footing in the global market.
EXIM is also hiring more staff with experience in renewable energy
transactions to take advantage of current and future opportunities.
EXIM recently hired an experienced professional who specializes in
renewable energy transactions and has underwritten green hydrogen,
solar, biofuels, wind, and geothermal transactions. We also recently
appointed a Vice President of Structured & Project Finance who has more
than 20 years of experience in the renewables sector.
3b. How many business development and underwriting staff are
specialized in renewable energy (not including critical minerals)?
Answer. EXIM staff are assigned to projects based on pipeline needs
rather than sector. EXIM's Structured & Project Finance Division
includes a Power Group and a Commodities Group, each of which has three
underwriters who analyze and negotiate both fossil and non-fossil
projects, including renewable energy, nuclear energy, metals and rare
earth/critical minerals mining projects. EXIM also has two engineers on
staff with appropriate subject matter expertise to support the
technical due diligence of renewable energy projects.
3c. Given the Congressional goal for renewable energy in EXIM's
charter, how many staff does EXIM plan to hire in the next 12 months
dedicated to developing and underwriting renewable energy projects?
Answer. EXIM has requested $140 million in administrative expenses
for FY 2025, an increase of $5.1 million over the FY 2024 level, which
would help support an increase in full-time staff and better equip the
agency to work through its pipeline of transactions. EXIM is looking to
hire more staff with knowledge and expertise in clean energy
transactions to take advantage of the growing number of opportunities
in this sector.
Question 4. EXIM ESPGs
EXIM's Environmental and Social Procedures and Guidelines (ESPG)
are over 10 years old.
4a. What are the barriers to EXIM updating its ESPG? How will EXIM
bring its outdated Environmental and Social Procedures and Guidelines
(ESPGs) in line with the latest climate science? When will EXIM update
the guidelines? Do you commit to soliciting stakeholder input in the
update?
Answer. EXIM staff members are actively working to review and
update the ESPGs, consistent with our Charter and applicable laws. Such
review will consider current international environmental review
standards and the latest climate science. EXIM will solicit input and
feedback from Congress and other EXIM stakeholders on any proposed
changes before they are finalized.
Question 5. EXIM Ignoring Corruption
Last week, EXIM's Office of Inspector General (OIG) released a
report finding that EXIM appeared to fail to act on fraud-related
information OIG provided concerning fraud by Trafigura. Trafigura plead
guilty in U.S. District Court on March 28, 2024, for violations of the
Foreign Corrupt Practices Act, specifically, conspiracy to violate
anti-bribery provisions in Brazil. Separate corruption charges are
under consideration against Trafigura in Switzerland.
5a. Will EXIM terminate its relationship with Trafigura now that
the company has pled guilty to conspiracy and bribery charges? Did EXIM
consider the investigation against Trafigura when considering
Trafigura's application?
Answer. We are reevaluating Trafigura after the U.S. Department of
Justice unsealed the details of a settlement agreement in March 2024.
EXIM did consider the allegations against Trafigura as part of the
application. However, EXIM was unable to find additional evidence to
substantiate the allegations before the EXIM Board approved the
Trafigura transaction in July 2023. Indeed, formal charges against
Trafigura were not made public until the Department of Justice
announced its plea agreement with Trafigura on March 28, 2024, more
than 8 months after EXIM's Board approved the Trafigura transaction.
Question 6. EXIM Grievance Mechanism
Communities affected by EXIM's financing must have an independent
and robust channel to raise concerns about environmental and human
rights impacts. EXIM's current grievance process does not meet the
baseline standards of an effective independent accountability
mechanism, such as is found at the U.S. Development Finance
Corporation.
6a. Do you commit to receiving public comment on the creation of an
independent accountability mechanism?
Answer. In 2002, Congress established a fully independent EXIM
Office of the Inspector General (OIG), which examines EXIM policies,
programs, and transactions. EXIM also requires all projects receiving
support to establish a grievance mechanism. EXIM routinely assesses
these mechanisms' accessibility and functionality and our projects'
capacity to properly manage the mechanisms. Finally, EXIM has
established an internal accountability mechanism through the
Environmental and Social Project Information and Concerns webpage
(``the portal'') and the Environmental and Social Review Committee. The
portal includes an online registry to increase transparency regarding
complaints received from affected communities and stakeholders. EXIM
believes these existing accountability mechanisms are adequate.
Question 7. Non-discrimination clause
EXIM's charter was enacted by Congress. The non-discrimination
clause in EXIM's charter begins with ``except as provided in this
Act.'' EXIM's charter also has environmental policies and procedures
clause that do not have the clause ``except as provided in this Act.''
That clause says that EXIM shall develop procedures to ``permit the
Board of Directors, in its judgment, to withhold financing from a
project for environmental reasons.''
7a. Do you interpret the non-discrimination clause in EXIM's
charter to supersede its Environmental Policy and Procedures? Do YOU
believe that EXIM's Environmental Policy and Procedures should apply to
climate change impacts?
Answer. The non-discrimination clause in Section 2(k) of EXIM's
Charter does not supersede Section 11 of EXIM's Charter, which requires
EXIM to ``establish procedures to take into account [the] potential
beneficial and adverse environmental effects'' and for such procedures
to ``permit the Board of Directors, in its judgment, to withhold
financing from a project for environmental reasons,'' but the two
provisions must be interpreted in a way that renders them compatible.
______
Questions Submitted by Senator Chris Coons
Question 1. Given the national security imperative for U.S.
leadership in global commercial nuclear markets, I am interested in how
Congress can improve the Bank's competitiveness on nuclear export
financing.
1a. What feedback does EXIM hear from potential customers of U.S.
nuclear exports about U.S. financing options?
Answer. EXIM's customers look for EXIM to come as close to matching
what other countries with nuclear sector manufacturers and service
providers can offer, including competitive rates and an all-in-one
solution that combines debt and equity. EXIM can provide the debt
component of that solution but is statutorily prohibited from providing
equity. EXIM's customers have indicated that our Engineering Multiplier
Program loans for early-stage Front End Engineering and Design studies
and other engineering studies are of particular use as a competitive
tool. EXIM has also received expressions of significant interest in the
agency's Make More in America (MMIA) initiative loans for the financing
of manufacturing capacity, especially in the new Small Modular Reactor
sector.
1b. What changes does EXIM need so potential customers are more
likely to choose United States suppliers--not just over Russia and
China--but also South Korean and France?
Answer. Under current law, the agency's authority to authorize new
business is frozen if defaults meet or exceed two percent. While this
has never occurred, the consequence is so severe that the threat alone
is enough to dampen risk appetite. This is particularly true for
nuclear- related transactions, which are sufficiently large that a
single default would push the overall default rate past the two-percent
cap. In light of this, the agency has requested, as part of the FY 2025
budget submission, to exclude nuclear-related transactions from the
default rate cap. In addition, as large-scale nuclear project loans can
range from $10 billion to $20 billion, there is concern that if
requests are received for multiple projects the agency will not have
the lending capacity to support such financing requests and also make
available the capacity required to meet its other mandates.
Question 2. EXIM undertakes underwriting and due diligence reviews
to determine whether to move forward with financing a given project.
Unfortunately, these processes can take more time and lead to higher
costs, which can potentially place U.S. technologies at a disadvantage
compared to our international competitors.
2a. What steps can EXIM take to improve and streamline their
internal processes, shorten review timelines, and reduce burden for
projects?
Answer. EXIM applies commercial lending due diligence standards as
supplemented by environmental standards mandated by EXIM's Charter. The
agency also hires external advisors and outside counsel to assist in
the necessary legal, technical, safety, environmental and social due
diligence. Increasing EXIM's ability to add additional experts such as
engineers, environmental specialists, attorneys, and financial
underwriters would help to increase efficiency. EXIM is also seeking
support for independent pay authority, which is the standard at other
financial agencies, and which would allow EXIM to recruit and retain
the workforce necessary to support U.S. exporters and American jobs.
Question 3. While DFC and EXIM have different mandates, there are
opportunities for greater collaboration on projects between the two
agencies.
3a. How are DFC and EXIM currently collaborating on projects? What
internal or external barriers exist to enhancing cooperation?
Answer. EXIM and the U.S. International Development Finance
Corporation (DFC) have worked together as co-lenders and on a number of
initiatives. Angola presents one recent example, where through
President Biden's Partnership for Global Infrastructure and Investment
(PGI), DFC is supporting refurbishment of the Lobito Atlantic Railway
line and EXIM is supporting solar projects and Acrow Bridge's
prefabricated bridges. In the nuclear sector context, DFC has already
consulted with EXIM staff on several occasions, and the two agencies
are committed to coordinating and working closely on any nuclear sector
matters that DFC may become involved in.
Question 4. EXIM's Environmental and Social Procedures and
Guidelines (ESPGs) are over 10 years old. Is EXIM planning to update
such guidelines, and if so, which sections of the policy does EXIM plan
to review?
Answer. EXIM staff members are actively working to review and
update the ESPGs consistent with its Charter and with a view toward the
Organization for Economic Co-operation and Development (OECD) Common
Approaches and Equator Principles, the international standards under
which EXIM competes. EXIM will also incorporate programs--like the Make
More in America (MMIA) domestic export facilitation loan initiative--
into the procedures to address the standards for an environmental
review of projects located in the United States, including the
application of domestic environmental laws and regulations. EXIM will
solicit input and feedback from Congress and other EXIM stakeholders on
any proposed changes before they are finalized.
______
Questions Submitted by Senator Brian Schatz
Question 1. The Export-Import Bank of the United States (EXIM)
Environmental and Social Due Diligence Procedures and Guidelines have
not been updated since 2013, and a recent review
(EXIM_FossilFuel_2pager--final.pdf) of EXIM's energy ?nance suggests
that the majority of EXIM's energy finance between 2014--2022
benefitted fossil energy projects. With the global market for clean
energy technologies expected to reach $23 trillion by 2030, it's
critical that agencies such as EXIM have the appropriate tools to help
U.S. businesses compete in the clean energy economy.
1a. What modifications have been or will be made to EXIM's
Environmental and Social Due Diligence Procedures and Guidelines?
Answer. EXIM staff members are actively working to review and
update the ESPGs, consistent with our Charter and applicable laws. Such
review will consider current international environmental review
standards and the latest climate science. EXIM will solicit input and
feedback from Congress and other EXIM stakeholders on any proposed
changes before they are finalized.
Separately, EXIM has tools for supporting clean technology through
our Environmental Exports Program (EEP), which provides incentives for
Environmentally Beneficial exports, including clean technology exports.
The EEP also implements the OECD's Climate Change Sector Understanding
that provides financing enhancements for a variety of project
categories that support the reduction of greenhouse gas emissions or
mitigate climate change impacts. In addition to the incentives of the
EEP, EXIM's China and Transformational Exports Program provides
additional incentives and financing flexibilities in clean tech related
Transformational Export Areas such as Renewable Energy, Energy
Efficiency and Energy Storage.
1b. Does EXIM need additional tools to support clean energy
exports?
Answer. Many clean energy transactions, like other transactions in
emerging sectors, carry higher rates of risk. As part of the FY 2025
budget request, EXIM is seeking a default rate cap exemption for CTEP
transactions. This would allow EXIM to compete more aggressively
against the PRC and embrace higher risk technologies and markets,
ensuring U.S. exporters can compete on a more equal footing in the
global market.
______
Questions Submitted by Senator Senator Chris Van Hollen
Question 1. I understand EXIM bank has a long pipeline of projects
waiting for consideration for funding.
1. What are you doing to work through the pipeline to meet EXIM's
mandate to support U.S. exports?
Answer. EXIM staff regularly meet with U.S. manufacturers and
service providers to discuss the current projects pipeline, projected
new business, and what EXIM can do to be supportive of their efforts.
We take very seriously our obligations to work through our pipeline and
to protect the interests of U.S. taxpayers. EXIM has remained below its
default rate cap of 2 percent because of the care and thoughtfulness
that goes into the review and structuring of these transactions.
Additionally, EXIM has requested $130.1 million in administrative
expenses for FY 2025, an increase of $5.1 million over the FY 2024
level, which would help support an increase in full- time staff and
better equip the agency to work through its pipeline.
EXIM is also seeking support for independent pay authority, which
is the standard at other financial agencies, and which would allow EXIM
to recruit and retain the workforce necessary to support U.S. exporters
and American jobs.
______
Questions Submitted by Senator John Boozman
Question 1. Can you describe in what ways the China and
Transformational Exports Program has been successful in bringing
American companies into robust competition with PRC predatory lending?
a. Can you explain the challenges encountered thus far in
increasing the program's effectiveness?
Answer. Under my tenure, CTEP authorizations have jumped from $253
million in FY 2022 to $2.4 billion in FY 2023. As of the drafting of
these responses, FY 2024, the dollar amount in authorized CTEP
transactions is greater than at this point last year. In total up to 31
May 2024, EXIM has approved $3.6 billion in CTEP transactions since the
program's inception. That is below the 20 percent goal set by Congress
and below where the agency wants to be. We are working hard to raise
this number, and we have asked Congress for additional tools to help us
get there.
Our CTEP transactions are still subject to EXIM's 2 percent default
rate cap: under current law, EXIM cannot experience defaults that equal
or exceed two percent. Were that to occur, EXIM would be unable to
authorize any new loans until the default rate was brought back below
two percent.
By their nature, export credit agencies like EXIM exist to take
risks the private market is unable or unwilling to take. Because EXIM
operates where gaps in the market exist, the agency ends up supporting
transactions with higher risk profiles. Inherent in this risk-taking is
the possibility of some defaults.
The default rate cap poses a significant challenge to EXIM's
ability to support U.S. exporters, particularly because other export
credit agencies are not bound by these constraints. As part of the FY
2025 budget request, EXIM is seeking a default rate cap exemption for
CTEP transactions. This would allow EXIM to compete more aggressively
against the PRC and embrace higher risk technologies and markets,
ensuring U.S. exporters can compete on a more equal footing in the
global market.
Question 2. Of the 10 Transformational Export Areas identified by
EXIM, in what areas does China have a significant hold on the markets?
a. What specific steps is EXIM doing to help U.S. exporters
increase its presence in these markets in regions like the Indo-Pacific
and Africa and promote U.S. foreign policy interests?
Answer. Of the ten transformational export areas (TEA), China has a
significant hold on the markets in four: energy storage, renewable
energy, wireless communications, and semiconductors.
EXIM is working to help U.S. exporters increase their presence in
these markets and has seen some successes in the past few years,
including:
--In September 2022, EXIM approved its first authorization for U.S.
energy storage exports in the form of a $6.9 million loan
guarantee for the Nigeria Sapele Energy Storage Project to
support power storage equipment made in the United States and
sold by ESS Tech: iron flow batteries that will allow Sapele
Power to effectively manage intermittent power demand from its
customers, enable load-smoothing, peak demand shifting, and
potential voltage level regulation for and with the main
turbines.
--Also in September 2022, EXIM approved a $52 million loan guarantee
to Banco Atlantida in Honduras for the purchase of First
Solar's Perrysburg, Ohio-made solar panels, Nextracker solar
tracking systems, Shoals Technologies Group equipment, and
solar cable management equipment supplied by Cambria County
Association for the Blind and Handicapped. JP Morgan is the
guaranteed lender funding these exports with the cover of
EXIM's guarantee. This equipment powers a 53.4-megawatt solar
power project in Olanchito, Yoro, Honduras. The transaction was
the largest- ever solar project EXIM financed in the Americas.
--In December 2022, EXIM approved a $407 million financing to the
UK's Viasat Technologies Ltd. with the guarantee of its U.S.
Parentco, Viasat, Inc. Viasat is a well-established provider of
high-speed broadband services, advanced satellite and wireless
networks and secure networking products, and services to
government, commercial and satellite markets. EXIM financing
will be used to fund rocket launches supplied by Space
Exploration Technologies of Hawthorne, CA, and United Launch
Alliance of Centennial, CO, as well as U.S.-brokered launch and
initial in-orbit insurance services to support the deployment
of two satellites. An estimated 2,200 U.S. jobs in California
and Colorado are expected to be created or supported with this
transaction.
--In June 2023, EXIM authorized $907 million in financing to support
construction of two photovoltaic solar energy power plants in
Angola. The project will generate more than 500 megawatts of
renewable power; provide access to clean energy resources
across Angola; help Angola meet its climate commitments; and
support exports of U.S. solar panel mounting systems,
connectors, switches, sensors, and other equipment. The
transaction is estimated to support 1,600 jobs.
--Also in June 2023, EXIM's Board approved a preliminary commitment
demonstrating EXIM's willingness to finance a $300 million
credit to the Government of Costa Rica's Instituto
Costarricense de Electricidad & Subsidiaries (ICE) for
procuring equipment and supporting materials and services from
trusted vendors to deploy a 5G network across Costa Rica.
Huawei has filed legal challenges to the Costa Rican
government's vendor tender process, but when those conclude,
EXIM is optimistic about prospects for turning the preliminary
commitment into a ?nal commitment.
______
Questions Submitted by Senator Bill Hagerty
Question 1. Chair Lewis, you shared in the hearing that the Export-
Import Bank does not discriminate against hydrocarbon-based energy
projects, and LNG projects in particular.
1a. During your tenure, how many hydrocarbon-related applications
have been received by EXIM, and how many are in your current pipeline?
Answer. Since I was sworn in, EXIM has authorized approximately
$1.5 billion in financing to support exports related to conventional
power generation, distribution equipment, and other equipment such as
oil well analysis probes, pipes and gauges, and inspection equipment
for existing drilling operations. Please note that this amount is based
on information readily available to EXIM at the time of authorization
and does not include financing of other goods or services in which the
end use may be related to an existing conventional power project. EXIM
does not publicize information related to potential transactions
because of business confidentiality.
During the hearing, you asked for a list of the LNG projects EXIM
financed over the past five or 10 years. The chart below shows EXIM's
authorized LNG projects since 2010.
While not projects, as such, EXIM has also authorized guarantees to
support U.S. LNG exports in 2020, 2023, and 2024.
1b. Is EXIM, the White House, or any part of the Federal government
``slow walking'' or delaying the consideration of any of these
applications?
Answer. EXIM is not purposefully delaying consideration of any
applications.
1c. Are there hydrocarbon-related projects that have made it out of
the EXIM Transaction Review Committee (TRC) and have been presented to
you or your staff but have not yet been scheduled for an EXIM Board of
Directors vote? If so, how many? Could you please provide the details
for each of these projects?
Answer. EXIM does not publicize information on where projects are
in the underwriting process because of business confidentiality. More
broadly, EXIM does not set a specific timeline for transactions to be
considered by the Board of Directors. Rather, transactions are added to
the agenda for meetings shortly after transactions have been vetted by
the Transaction Review Committee and determined to satisfy all
statutory and policy requirements.
Additionally, financing for exports related to the development of
large projects (including fossil fuel projects) have historically taken
a significant amount of time to process due to the complexity of a
specific project and the volume of analysis that must be completed to
evaluate all risks that could affect the success of the project.
Furthermore, finalization of the underwriting process may be contingent
on a wide variety of factors, such as foreign governmental approvals,
which are outside EXIM's control.
Question 2. A New York Times report in February said that two of
your climate advisors--who sit on the board the Administration created
to advise EXIM on climate issues--quit in protest over an EXIM project
in Bahrain. The story says that John Kerry even called you ``to try to
delay a vote on the project but the board moved ahead.'' Other news
articles have suggested that President Biden has voiced disagreement
with energy projects EXIM is considering.
2a. Can you please tell me which government and non-government
persons have pressured or encouraged you not to support hydrocarbon-
related projects?
Answer. EXIM's Charter requires the Bank to seek comments on
transactions from interagency and congressional stakeholders. More
broadly, because I believe organizations are stronger when they solicit
input from the public, partners, and stakeholders, I seek out an array
of opinions on how EXIM should conduct its business on behalf of the
American exporter. I welcome positive and negative feedback from a
variety of project stakeholders, including government and non-
government persons.
2b. How have you responded?
Answer. EXIM reviews each transaction based on a number of factors,
including bankability, a reasonable assurance of repayment, impact upon
the environment, technical and safety, and compliance with applicable
laws.
Question 3. U.S. exporters should be able to expect timely EXIM
Board votes after due diligence has been completed on their
applications.
3a. Will you commit to taking actions to schedule these pending
transactions for a timely Board vote?
Answer. EXIM does not set a specific timeline for transactions to
be considered by the Board of Directors. Rather, transactions are added
to the agenda for meetings shortly after transactions have been vetted
by an internal transaction review committee and determined to satisfy
all statutory and policy requirements.
Additionally, financing for exports related to the development of
large projects (including fossil fuel projects) have historically taken
a significant amount of time to process due to the complexity of some
of these projects and the volume of analysis that must be completed to
evaluate all risks that could affect the success of the project.
Furthermore, finalization of the underwriting process may be contingent
on a wide variety of factors, such as foreign governmental approvals,
which are outside EXIM's control.
3b. Please tell me what updates have occurred or are still under
consideration as part of the agency's environmental due diligence
procedures.
Answer. EXIM's Environmental and Social Procedures and Guidelines
(ESPGs) have not been updated since 2013 and need to be revised. EXIM
staff members are actively working to review and update the ESPGs,
consistent with its Charter and applicable laws, with a view toward the
Organization for Economic Co-operation and Development (OECD) Common
Approaches and Equator Principles, the international standards under
which EXIM competes. EXIM will also incorporate programs--like the Make
More in America (MMIA) domestic export facilitation loan initiative--
into the procedures to address the standards for an environmental
review of projects located in the United States, including the
application of domestic environmental laws and regulations. EXIM will
solicit input and feedback from Congress and other EXIM stakeholders on
any proposed changes before they are finalized.
Question 4. EXIM has a statutory lending authority of $135 billion.
4a. How much of that $135 billion is obligated now, and how much
more could EXIM obligate before reaching the $135 billion ceiling?
Answer. As of April 30, EXIM had obligated $32.6 billion, leaving
$102.4 billion in available capacity. Because EXIM transactions range
from extremely small amounts to multi-billion-dollar projects, we
cannot predict how many transactions it would take to reach the $135
billion ceiling.
Question 5. Part of your responsibility is to oversee the Program
on China and Transformational Exports (CTEP). You noted in your
testimony that EXIM's FY23 CTEP transactions totaled $2.4 billion.
5a. Do you understand that to be consistent with Congress's intent
for 20% of EXIM's total financing authority to be focused on this goal?
Answer. Under my tenure, CTEP authorizations have jumped from $253
million in FY 2022 to $2.4 billion in FY 2023. As of the drafting of
these responses, FY 2024, the dollar amount in authorized CTEP
transactions is greater than at this point last year. In total, EXIM
has approved $3.6 billion in CTEP transactions since the program's
inception. That is below the 20 percent goal set by Congress and below
where the agency wants to be. We are working hard to raise this number,
and we have asked Congress for additional tools to help us get there.
5b. What is your strategy for growing CTEP transactions?
Answer. Our CTEP transactions are still subject to EXIM's 2 percent
default rate cap: under current law, EXIM cannot experience defaults
that equal or exceed two percent. Were that to occur, EXIM would be
unable to authorize any new loans until the default rate was brought
back below two percent.
By their nature, export credit agencies like EXIM exist to take
risks the private market is unable or unwilling to take. Because EXIM
operates where gaps in the market exist, the agency ends up supporting
transactions with higher risk profiles. Inherent in this risk-taking is
the possibility of some defaults.
The default rate cap poses a significant challenge to EXIM's
ability to support U.S. exporters, particularly because other export
credit agencies are not bound by these constraints. As part of the FY
2025 budget request, EXIM is seeking a default rate cap exemption for
CTEP transactions. This would allow EXIM to compete more aggressively
against the PRC and embrace higher risk technologies and markets,
ensuring U.S. exporters can compete on a more equal footing in the
global market.
5c. Is President Biden's budget request sufficient to achieve this?
Answer. The President's FY 2025 budget request contains resources
for EXIM to fulfill its mission and, critically, it asks Congress to
exempt CTEP transactions from the default rate cap. This would allow
EXIM to compete more aggressively against the PRC and embrace higher
risk technologies and markets, ensuring U.S. exporters can compete on a
more equal footing in the global market.
Question 6. With respect to competitiveness, on September 29, 2023,
the EXIM Inspector General issued a report entitled ``Comparative
Analysis of U.S. and OECD Arrangement Export Credit Agencies.''
6a. How are you implementing these IG recommendations to help U.S.
companies and workers?
Answer. EXIM concurred with all 14 Inspector General
recommendations and has closed two of the 14 recommendations as of May
15, 2024. EXIM staff are working diligently to close the remaining open
recommendations.
______
Questions Submitted by Senator Marco Rubio
Question 1. EXIM plays an important role in countering Communist
China's efforts to provide easily accessible credit to countries around
the world. Recently, EXIM has experienced significant growth,
supporting 66 percent more authorizations in FY2023 than it did in
FY2022. What allowed EXIM to increase its number of authorizations by
such a drastic amount? Did the criteria for granting authorizations
change?
1a. If the criteria for granting authorizations changed, how has
that affected credit recipients' default rate?
Answer. EXIM's China and Transformational Exports Program (CTEP)
authority is too new to be able to determine if it will have any impact
on affected credit recipients' default rate. Having said that, EXIM
staff applies the same rigorous credit underwriting standards to CTEP
matters as to any other credits.
Question 2. Argentina, one of America's closest allies in the
region, is undergoing a severe economic crisis with elevated inflation
that prevents access to international loans. How does EXIM facilitate
loans to partner countries that have difficulty accessing other
international credit lines?
2a. Do you believe EXIM should focus on partner countries with poor
credit that present ripe opportunities for China to offer easy loans?
Answer. EXIM is a demand-driven financial agency and must have a
reasonable assurance of repayment to consider a transaction, so it
cannot pick partner countries the same way development agencies can.
However, EXIM collaborates closely with interagency partners to
identify opportunities where the agency's financing tools can
facilitate U.S. exports in high priority, geostrategic markets and
sectors.
In the case of Argentina specifically, EXIM has determined that
public and private transactions in Argentina do not currently offer a
reasonable assurance of repayment, as required by our Charter. As such,
EXIM is not able to provide support for such transactions at this time.
______
Questions Submitted to Millennium Challenge Corporation
Questions Submitted by Senator John Boozman
Question 1. Can you discuss some of the agricultural projects the
Corporation is pursuing?
Answer. MCC has funded a wide range of agricultural interventions
in response to the identified constraints to sectoral growth during
project development. In many partner countries, MCC's support takes the
form of physical infrastructure such as rural roads to expand farmers'
market access, irrigation systems to increase production, and
electrification for processing of agricultural goods. Other recent
agricultural interventions include national livestock herd vaccination
campaigns and significant policy reforms such as the modernizing of the
fertilizer sector in Niger and fiscal reforms to incentivize investment
in agriculture in Mozambique.
a. Of the projects mentioned, can you provide how effective these
have been in reducing hunger and in strengthening or building new
markets?
Answer. MCC's model for targeting the reduction of poverty through
economic growth complements the work of other USG programs that target
emergency and humanitarian relief by providing opportunities to raise
incomes for vulnerable populations in its partner countries. Many of
our investments play a role in increasing agricultural production, such
as by providing over 500,000 acres of irrigation. Likewise, MCC's
investments in electrification and roads helps ensure that agricultural
production can be processed and reach markets. This combination of
augmenting production and increasing rural incomes along with
facilitating market access means that food is more accessible, and the
agricultural economy is more resilient. Policy interventions equally
contribute to food security by augmenting the private sector's
participation for long term growth in the sector.
Question 2. Could you discuss the main challenges the Corporation
is currently facing in implementing its primary mandate?
Answer. MCC's mission is to reduce poverty through economic growth,
but we currently face significant challenges in doing so.
Amidst today's difficult geopolitical and social challenges, MCC's
grant assistance is a key economic contributor to the way the United
States combats growing challenges and incentivizes good governance and
democratic values globally. However, MCC faces statutory restrictions
that limit its ability to apply its impactful model in a broader range
of places, including upper middle-income countries that are facing more
challenges than they did when MCC was founded. This is particularly the
case, as the decades-long trend of global poverty reduction has
reversed in recent years, leaving many countries vulnerable to losing
years of economic progress.
As such, in MCC's FY 2025 Congressional Budget Justification, we
are asking Congress to reform our candidate country pool to include
countries below the threshold for starting graduation from the
International Bank for Reconstruction and Development (IBRD). The IBRD
Graduation threshold is the gross national income (GNI) per capita
threshold at which point the World Bank begins the process of
discussing with countries the possibility of their graduating out of
being eligible for IBRD lending. Senators Risch and Senator Menendez
introduced legislation--S.1240 the Millennium Challenge Corporation
Candidate Country Reform Act--at the beginning of the 118th Congress to
address this change.
This would allow MCC to work in countries that face substantial
vulnerabilities due to conflict, migration, and climate.. It would also
help nascent and fragile democracies facing these tipping points to
reverse or prevent backsliding and to deliver sustainable economic
growth for their populations. The legislation would substantially
increase the regions MCC could work in, adding nine countries in Europe
and the Caucuses and another nine in Latin America and the Caribbean.
Additionally, over the past 3 years, MCC received appropriations
which included $1.1 billion in rescissions, while simultaneously
demonstrating a significant ramp up in execution ($3 billion in signed
commitments across 12 programs over the past 2 years). This has created
budget uncertainty during critical stages of compact development and
negotiations, creating a less efficient and ideal development process.
Without receiving MCC's FY 2025 budget request, downsizing or delays in
programs where USG and country counterpart time and resources have been
expended may have significant implications to U.S. credibility.
______
Questions Submitted by Senator Marco Rubio
Question 1. The MCC is unique in that it provides grants, as
opposed to loans. How do the criteria for receiving an MCC grant differ
from the criteria for receiving a loan from other international
financial institutions?
Answer. MCC's criteria for selecting country partners is unique
among development organizations. By statute, countries must be
classified as either low income or lower middle income by the World
Bank and not be prohibited from receiving assistance by Federal law.
Additionally, MCC must consider a country's demonstrated commitment to
(i) just democratic governance, (ii) economic freedom, and (iii)
investing in its people. Each December, MCC's Board of Directors
selects countries as eligible for MCC assistance. The MCC scorecard is
an important tool the Board uses to assess a country's policy
environment. When considering countries for assistance, the Board
considers a country's policy performance, the opportunity to reduce
poverty and generate economic growth, and the availability of funds to
MCC. The selected countries, if they agree to participate, then develop
a program proposal in partnership with MCC. The international financial
institutions, such as the World Bank, do not require countries to
demonstrate a commitment to good governance as outlined in MCC's
founding statute.
1a. When issuing grants, do you assess a given country's needs or
the interests of the United States in providing assistance to that
country?
Answer. By statute, MCC's Board of Directors consider the following
factors when determining a country's eligibility for MCC assistance:
(1) a country's policy performance (primarily as measured by the annual
MCC country scorecards), (2) the overall opportunity to reduce poverty
and generate economic growth in the country, and (3) funding available
to MCC. Each year, more countries pass the MCC scorecard than MCC has
the resources to assist. As a result, selection is highly competitive
and the MCC Board considers a wide range of supplemental information
when determining selections, including assessments of any previous
programs MCC has had with a country and whether those investments are
being sustained. These considerations are further described in the MCC
Selection Criteria and Methodology Report, which MCC's Board approves
and that the agency submits to Congress each September. The MCC Board
is comprised of the Secretary of State, Secretary of the Treasury,
Administrator of the U.S. Agency for International Development, the
U.S. Trade Representative, MCC's Chief Executive Officer, and four
private sector members.
Question 2. Argentina is a close regional ally that is undergoing a
severe economic crisis with elevated inflation that prevents access to
international loans. Does Argentina currently receive any grants from
the MCC?
Answer. No. Argentina has never been a candidate country for MCC
assistance due to its classification as an upper middle-income country
by the World Bank. By statute, only low income or lower middle-income
countries can be considered as candidate countries for MCC assistance.
2a. Is the MCC providing grants to any countries in the Western
Hemisphere? Why were those countries targeted?
Answer. Yes. MCC is currently working with Belize. The MCC Board of
Directors selected Belize as eligible to develop a compact in December
2021 in recognition of the country's clear commitment to democratic
governance and its ongoing and pressing development need characterized
by rising poverty rates, challenges to sustained economic growth, and
vulnerability to external shocks. The proposed $125 million MCC Belize
Compact aims to support Belize's growth by catalyzing increased
investment in post-primary education and energy. The Education Project
aims to equitably increase the number of post-primary graduates with
the competencies relevant to labor market demands, while the Energy
Project aims to reduce the cost of electricity.
MCC's ability to partner with more countries in the Western
Hemisphere is currently limited by the statutorily prescribed income
threshold for MCC candidacy. Reforming the candidate pool--as outlined
in S. 1240 the Millennium Challenge Corporation Candidate Country
Reform Act--by changing the income threshold would recognize the
substantial challenges facing the development paths of countries that
MCC cannot currently consider while also enabling MCC to bring its good
governance selectivity model to a broader range of countries. In the
Western Hemisphere, the Candidate Country Reform Act would allow MCC to
newly consider countries such as Colombia, Ecuador, Guatemala, and
Paraguay.
SUBCOMMITTEE RECESS
Senator Merkley. The hearing record will remain open for
written questions until 5:00 p.m. on Wednesday, March 22, 2024,
and the hearing is adjourned.
[Whereupon, at 3:33 p.m., Wednesday, May 15, the
subcommittee was recessed, to reconvene subject to the call of
the Chair.]
STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR
FISCAL YEAR 2025
----------
TUESDAY, MAY 21, 2024
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 2:39 p.m., in room SD-138, Dirksen
Senate Office Building, Hon. Christopher Coons (Chairman),
presiding.
Present: Senators Coons, Murray, Durbin, Van Hollen,
Schatz, Graham, Collins, Boozman, and Moran.
UNITED STATES DEPARTMENT OF STATE
OPENING STATEMENT OF SENATOR CHRISTOPHER COONS
Senator Coons. Ladies and gentlemen, this hearing of the
Senate Appropriations Committee, Subcommittee and State, and
Foreign Operations, and Related Programs, will come to order.
The subcommittee meets today to review the fiscal year 2025
budget request for the Department of State. And we are please
to welcome back Secretary Tony Blinken.
I have also solicited testimony from the State Department's
Inspector General, Cardell Richardson, given the OIG's critical
oversight work, which each Senator has in front of them, that
will be a part of the formal record.
I am also going to acknowledge at the outset, we have some
controversial topics to cover, and ask that everyone in the
Chamber respect the right of the subcommittee to conduct its
work without verbal or visual instruction, which, if it
interrupts our work, will cause us to have to have individuals
removed.
With that said, Mr. Secretary, it is great to have you
here. We have a lot to cover. I want to just briefly reflect
back on fiscal year 2024, our Enacted Bill for the State
Department, USAID, MCC, DFC, and other agencies, was $58.3
billion, which was a 5.5 percent cut compared to fiscal 2023
enacted.
As Senator Graham, noted in our hearing with USAID
Administrator Power last month, we are having this
subcommittee's budget cut at the time of great and growing
need. That means fewer opportunities to prevent and mitigate
crises, and more deferred costs later.
In managing this tight budget environment, we, on this
subcommittee prioritized limiting the impact on the State
Department Workforce, meeting our treaty dues, and multilateral
commitments to sustain U.S. global leadership, enhancing your
tools for economic state craft, and protecting funding for
critical and life saving, health programs and humanitarian
assistance. That meant that funding had to be cut, in some
cases deeply, that will have negative impacts on our ability to
compete overseas, to serve real human needs, and our national
interest.
But like every other subcommittee, we made hard choices,
and as a result of we were able to take important steps to help
you modernize and innovate, to better leverage the private
sector, to advance your efforts to strengthen partner economic
growth, and stability.
One of those efforts is a new economic resilience
initiative which builds on existing efforts to support
strategic infrastructure, including through the DFC and EXIM,
allowing them to leverage billions of dollars, enhance critical
supply chains, expand secured digital infrastructure, support
new grants and loans to international financial instructions,
and compete with the PRC's opaque and coercive lending
practices.
The result will literally be billions in new lending in the
Indo-Pacific this year alone. We also enacted critical
supplemental funding for urgent military and economic
assistance to Ukraine, to strengthen deterrence in the Indo-
Pacific, and to support our partner, Israel, and to provide
life-saving humanitarian assistance in Gaza, Sudan, and
elsewhere around the world.
And I want to thank the Chair, and Vice Chair, for their
determined leadership in achieving that critical result.
Now, while we delivered on these priorities the needs
outpaced our appropriations, and we are seeing historic levels
of food insecurity, record numbers of refugees, and displaced
people, democratic backsliding, Chinese economic coercion, and
Russian aggression in Ukraine and elsewhere.
In the intervening months, the war in Gaza continues to
contribute to a humanitarian catastrophe, and threatens to
escalate into a broader regional conflict.
Here in our own hemisphere the people of Haiti are being
terrorized by armed gangs, and a lack of governance, as we look
ahead to fiscal year 2025, the House Appropriations majority is
again proposing to slash our funding, just as they proposed
last year, which ultimately led to the cuts we enacted.
I am fortunate to have Senator Graham as Ranking Member,
and strong subcommittee membership on both sides of the aisle,
so I am confident we will maintain bipartisan support to
address the most critical challenges, and advance America's
interest. As I frequently point out, we can't do more with
less, whether in supporting Ukraine's brave fight against
Russia, countering the threat posed by China, or leveraging
economic tools.
We have a lot to discuss, so I will stop there. The bottom
line is what I told you, what I told you last year remains as
true today. Your task is daunting. And we have a responsibility
to ensure you and your colleagues are equipped with the tools
and resources you need to strengthen our national security, and
advance our interests. Thank you.
Ranking Member Graham.
OPENING STATEMENT OF SENATOR LINDSEY GRAHAM
Senator Graham. Thank you, Mr. Chairman. Welcome, Mr.
Secretary.
So a statement was made yesterday offering condolences to
the passing of the President of Iran, Mr. Raisi, who died in a
helicopter crash. He was the protege of the Supreme Leader who
earned his nickname, the ``Butcher of Tehran'', for his role in
mass executions of thousands in 1988, his tenure as President
was marked by the brutal repression of women and girls, and the
enrichment of uranium, a violent crackdown of mass protest in
2022, and direct attacks on Israel from Iranian soil.
I would like to offer my condolences to the victims of the
``Butcher of Tehran''. To the Iranian people, we stand with you
and hope and pray for the day your liberation comes from the
Ayatollah and his henchmen.
As to the world, it is pretty much on fire. It seems to me
not a good time now to take resources off the table that can
prevent things from getting worse. The World Food Program has
doubled the number of people it serves in 2 years. Now, does
that matter to you at home? Yes, it does.
If people can't eat, and can't feed their family, they are
likely to do almost anything. What would you do to feed your
family? I don't want to help the terrorists, I want to make
their life more difficult. This is a very small percentage of
overall Federal spending, and every time I turn around, we seem
to want to cut this account.
You know I am pretty hawkish guy, but soft power matters. I
have been all over the world, and a little bit of money spent
well goes a long way. Feeding people keeps them from moving
around and migrating, and creating pressure on neighboring
countries. You are either going to pay now, or you are going to
pay later.
So I am hoping that the Congress will recognize that the
investments we make in this account are national security in
another form. And if you don't get that by now, you have missed
a lot.
As to the war in Israel, I stand with Israel, without
apology. I hope one day to be able to end this conflict, in a
way where the Palestinian people have hope they don't have
today, and Israel will have security it deserves, and maybe we
can integrate the region, with a deal with Saudi Arabia and
Israel.
And I have enjoyed working with you, Mr. Secretary, on
trying to find a way to normalize between Saudi Arabia and
Israel to have a Palestinian component, and I look forward to
that.
In the middle of all this, the International Criminal
Court, out of nowhere, decided to indict, or issue an arrest
warrant for the Prime Minister of Israel, an elected leader, of
one of the most robust democracies on the planet. If you don't
like the Government of Israel, stick around, they change every
3 or 4 months.
They have one of the most robust judiciaries anywhere on
the planet, known for their independence. I have been working
with many members of this committee to talk with the
International Criminal Court. Number one, we believe that you
have overstepped your mandate. Where is the complementarity?
Israel is not a member of the ICC, for some reason the ICC
granted state status to the Palestinians in 2015, when nobody
else has. And they are now claiming jurisdiction over the State
of Israel. Under the Rome Statute, before the ICC can act, it
limits the action--ICC actions, situations when a nation is
unable, or unwilling, to proceed with an investigation, or if
the investigation is conducted in bad faith.
Now, you must have concluded that the judiciary in Israel
is--they don't act in good faith. I would assure you, that if
you do wrong in the Israel Defense Forces, you can get court-
martialed, like you can here. The ICC was never meant for
missions like this. There was a meeting to be discussed
yesterday. May 20, a representative of the ICC was supposed to
land in Israel at 6:00 o'clock, to set up a meeting between
Israel and the ICC Prosecutor, to talk about what Israel is
doing, what concerns the ICC has, to invoke complementarity.
Well, what happened? Israel was informed that the people
from the ICC never boarded the plane, and we find out that the
ICC Prosecutor, Mr. Khan, had done an interview with CNN days
before, or hours before, I think it is days before, saying he
was going to issue arrest warrants for the Defense Minister,
and the Prime Minister. That is not good faith.
I was on a phone call with eight members of the United
States Senate asking the ICC, at least to talk to Israel before
you move forward. They gave Venezuela 9 months. Clearly we were
lied to and misled. You have done an interview with CNN before
the plane departed. The idea you are going to collaborate
apparently was a sham.
We, hopefully, together will find a way to raise our
displeasure with the ICC, because if they will do this to
Israel, we are next. This group tried to come after our
soldiers----
[Applause.]
Senator Graham. Yes, you can clap all you want to. They
tried to come after our soldiers in Afghanistan, but reason
prevailed. At the end of the day here, what I hope to happen is
that we level sanctions against the ICC for this outrage, to
not only help our friends in Israel, but protect ourselves over
time.
Mr. Secretary, your statement yesterday was excellent. The
President's statement was excellent. Senator Schumer's
statement on the floor was excellent, about the outrage here.
They have destroyed the notion of complementarity. They have
misled people in the United States Senate about their
intention, and they shall and will pay a price.
Mr. Secretary, I appreciate what you have said: It is now
time for us to act.
Thank you.
Senator Coons. Thank you, Ranking Member Graham.
With that, Mr. Secretary, the floor is yours.
Secretary Blinken. Mr. Chairman, Ranking Member Graham,
Vice Chair Collins, Chair Murray, very good to be with all of
you today on this Committee. I thank you for the opportunity to
testify before you, and----
[Audience outburst.]
Senator Coons. I recognize people feel passionately. We
must have order in this room. We are going to proceed with this
hearing. Mr. Secretary, you may resume.
Secretary Blinken. Thank you, Mr. Chairman. I wanted to
thank you also for your partnership in working together to
advance American leadership in the world, leadership that is so
essential for delivering on the priorities that matter to our
people at home. I think the need for our global leadership and
cooperation with allies and partners----
Senator Coons. The witness will suspend until the room is
cleared of protesters.
[Audience outburst.]
Mr. Secretary, you may proceed.
Secretary Blinken. Chairman, thank you.
So I was saying, the need for our leadership, and
cooperation with allies and partners, has never been greater.
The People's Republic of China is pursuing military, economic,
and geopolitical preeminence, challenging our vision for a
free, open, secure, and prosperous international order. Russia
is committing aggression not only against Ukraine but against
the principles at the heart of the UN Charter, independence,
territorial integrity, and sovereignty that are the building
blocks for global peace and security.
In the Middle East, we are standing with Israel in its
efforts to ensure that what happened on October 7 never happens
again, as we do everything we can to bring to an end the
terrible human suffering in Gaza and prevent the conflict from
spreading.
U.S. leadership is needed to address humanitarian crises
elsewhere around the world.
[Audience outburst.]
Senator Coons. The witness may suspend until we can clear
the room.
Mr. Secretary, you may resume.
Secretary Blinken. Thank you. Our leadership is needed to
address humanitarian crises elsewhere around the world,
including in Sudan, and Haiti, where millions have been
displaced, many killed, and to address global issues that no
country can solve alone, including food security, the changing
climate, transnational corruption, and the fentanyl crisis.
But with the support of Congress, we can, and we are,
approaching these challenges from a position of strength.
Because of the actions we have taken, the United States is
stronger economically, diplomatically, and militarily than we
were a few years ago.
We have made historic investments here at home in our
competitiveness, in our innovation, in our infrastructure. We
have renewed our alliances, and we have built new ones. We have
secured unprecedented alignment with key partners in Europe, in
Asia, and beyond.
We have delivered essential American aid to Ukraine, and we
have rallied the international community to share the burden.
For every dollar that we have spent in economic and development
assistance, others have collectively invested three more.
Now, many doubted that bipartisan support for Ukraine and
other urgent national security priorities could endure, but
last month Congress demonstrated, demonstrated to the world
that we would not pull back. You passed the President's
Supplemental Funding Bill by an overwhelming margin and on a
bipartisan basis.
Our investment abroad does not come at the expense of our
strength at home, far from it. Most of the supplemental is
being spent here in the United States, building up our own
defense industrial base, supporting thousands of American jobs.
We need to keep up this momentum, and that requires a State
Department and a budget that we fully resource so that we can
meet the challenges of our time.
And I think, as Senator Graham put it, in effect, an ounce
of prevention is worth more than a pound of cure. We know that
if we don't get these problems on the takeoff, we are going to
have to deal with them on the landing, but in much more costly
and difficult ways.
The fiscal year 2025 budget, the President is putting
forward, requesting $58.8 billion for the State Department and
USAID, does this in two ways. First, it funds the essential
missions of our department and USAID. The budget will ensure
that the United States continues to be the partner of choice
that countries can turn to when they need to solve big
problems, the problems that also affect us. In an era of
renewed great power competition, we have got to present the
strongest possible offer, one that is relevant and responsive
to the country's needs, and that advances our security and
economic interests.
That is why, for example, we are requesting $2 billion for
a new fund to build high-quality, sustainable infrastructure
around the world. Crucially, these kinds of investments create
jobs for Americans and expand markets for our businesses
overseas.
We are requesting resources for the World Bank, with $1
billion in U.S. funding we can unlock another $36 billion in
development fund capacity to direct to the top priorities of
emerging economies. That is a huge return on our investment and
essential, again, for competing with China around the world.
The budget also includes $1.7 billion for international
organizations, including the United Nations, APEC, and the
Inter-American Development Bank, to help shape them in ways
that reflect our interests and values.
We are asking for $500 million to give more people around
the world access to secure Internet and digital technologies.
Doing so will support the U.S. economy through the export of
our technology products. It will help us ensure that we and our
fellow democracies remain the leaders and standards-setters in
key technologies, like artificial intelligence.
The budget includes funding to address global issues that
affect the lives and livelihoods of the American people, as
well as people around the world, especially the synthetic drug
crisis. It also funds our response to irregular migration,
global food insecurity, public health, climate, and energy
security. And again, if these problems are not addressed
upfront, inevitably, they are going to have an impact on us
down the road.
We are also asking Congress to fully fund the State
Department's Educational and Cultural Exchanges. These are
really one of our best and most cost-effective tools for
advancing U.S. values and interests around the world. And they
support the students, the researchers, the young professionals
from our communities who study and work abroad.
To out-compete our strategic rivals, we also need to invest
in the foundation of our strength abroad, our diplomatic corps.
And that is the second pillar of the budget. Our budget makes a
strong investment in expanding our overseas presence, opening
posts in the Pacific Islands, and the Eastern Caribbean. It
will also continue our modernization of American diplomacy. We
are reorganizing the Department to make sure that it is ready
to face the challenges of this time.
We are attracting and working to retain the best possible
talent. We are investing in our people in Washington and posts
overseas with training, with technology. We are promoting more
agility, more innovation, more efficiency in the processes that
we bring to bear.
Last year's enacted budget level represented a 5 percent
cut from the year before. That challenges our efforts to
deliver the results that Congress and the American people
deserve.
So I urge you to support this budget, which helps us
address the most pressing foreign policy priorities for the
coming year, and lays the foundation for strong American
leadership in the years beyond.
With that, I am happy to take any questions.
Thank you, Mr. Chairman.
STATEMENT OF HON. ANTHONY J. BLINKEN, U.S. SECRETARY OF
STATE
Senator Coons. Thank you, Mr. Secretary. As I mentioned in
my opening remarks, we are working with your Department to
increase investments in energy security, digital security,
economic growth, strategic infrastructure, and your workforce.
Given the difficult cut of fiscal year 2024, a 5 percent cut,
and that fiscal year 2025 will likely again be a very
challenging overall budget environment, any increased
investments you will have the chance to do will likely come at
the expense of other efforts. What are some examples of what
you will have to scale back, and the impact of doing so, if
your budget does not increase?
Secretary Blinken. Well, first and fundamentally, there are
some huge tradeoffs that we would have to bring to bear on some
of the big strategic issues that we are working on. So if we
have to look at how do we do the trade-off between funding for
strategic ports and transportation projects that we are engaged
in, for example, the Luzon Corridor in the Philippines, for
example, the Lobito Corridor in Africa, that is critical.
But at the same time, can we do that and then continue to
fund the necessary programs to counter Russian aggression
against Ukraine? What about our ability to meet all of the
global challenges that, again, are going to have inevitably an
impact back home: irregular migration, fentanyl, pandemic
preparedness, food security.
As we have looked at it, we have to make--we would have to
make fundamental trade-offs among these big-ticket items. But
let me be even a little bit more parochial. What does it
actually mean if we are dealing with a world in which we have a
5 percent cut or, as some in the House have proposed, an 11
percent cut? We are going to have to reduce passport and
consular services that we have managed to build back after
COVID.
We have plans to open new passport centers in this country.
They would stall out, and that would be to the detriment of the
ability of Americans to travel around the world, see family, do
business, in education, we would have to decrease the Embassy
security programs that we have. We are trying to add new posts,
so that we are present around the world. Not only would we have
trouble adding those posts, we would also have to look at
cutbacks to security for existing posts. And even if we were to
insulate that particular program, well, those reductions would
get passed on to everything else.
Senator Coons. You were recently in Ukraine, and you
forcibly underscored the message that the United States
continues to stand with Ukraine, and as I said, I am grateful
for the leadership of the Chair and Vice Chair, in finally
delivering on critical and needed assistance, that additional
security, economic, and humanitarian assistance needs to be
delivered as soon as possible.
You mentioned in your opening statement, for every dollar
that we have delivered, in terms of economic and development
assistance, our partners have delivered three.
Secretary Blinken. Right.
Senator Coons. I would just be interested in how you are
continuing to engage partners and allies in ensuring that they
are continuing to contribute, in fact, exceeding our
contributions, and what you see as the prospects for the year
ahead in Ukraine?
Secretary Blinken. Well, first I have to tell you that
thanks to the leadership here in getting the supplemental done,
that was the biggest difference-maker. The biggest difference-
maker, practically speaking, in Ukraine as that assistance is
now getting delivered, but also in making sure that we keep our
allies and partners moving forward with us in making the
necessary investments for Ukraine to continue to defend against
the Russian aggression.
But also this: to set Ukraine up in a way that, as I
believe strongly, it will be a success, militarily,
economically, democratically, able to stand strongly on its own
feet, without the same level of investment that we have had to
make in these few years. We have programs underway in each of
those areas, and you can see the single best rebuke to Putin is
a strong, successful, thriving Ukraine.
We have the means now to make the necessary investments to
do that. Our partners remain fully on board. But again, the
supplemental was a big shot in the arm both for Ukraine, and
European, and other partners on this.
Senator Coons. Thank you. Since the horrific attacks by
Hamas on October 7, I have strongly supported Israel's right to
defend itself, like many of my colleagues, I am also deeply
concerned about the humanitarian crisis in Gaza, which has
become more dire in recent weeks given operations and the
threat of further operations in Rafah.
What are you seeing in terms of assistance and the delivery
of humanitarian relief? What impact is the new pier having in
Gaza that has been constructed by the United States? What
diversion are you seeing by Hamas of assistance we are
delivering? What diversion are you seeing by Israeli settlers
and other protesters? And what do you think are the prospects
for some positive path forward for a day after in Gaza?
Secretary Blinken. The people of Gaza, children, women, and
men are experiencing a humanitarian crisis. Food, water,
medicine, shelter all remain in far too short supply. We have
been working on this from day one to try to get the necessary
access to Gaza so that supplies could get in, to try to get
adequate distribution within Gaza, to try to get proper
deconfliction so the humanitarians can go about their work
safely and securely. And this remains absolutely essential work
that we are at every single day.
In recent weeks, we made important progress because of
openings of access points in the north, because North Gaza was
particularly aggrieved. But now we see the situation to some
extent reversed, because of the conflict taking place in and
around Rafah. Those access points, Rafah itself as well as to
some extent Kerem Shalom, have either been shut down or not
operating at full capacity. So we have that challenge, and it
is imperative that those access points be fully operational.
At the same time, even as we have seen progress in getting
areas open, in getting the route from Jordan moving with
trucks, those trucks have been disrupted in Israel by
protesters, and that is imperative that that stop and be
brought to order so the trucks can move freely. We did have a
convoy yesterday that went through without impediment. In Gaza
itself, there remain problems of deconfliction with the
humanitarians.
It is better at a sort of strategic level; there are good
procedures in place, but we continue to see some problems at
the operational level, at the tactical level, where a given
unit may not know, in real-time, that a convoy is supposed to
go through. So we are working on significantly improving that,
finally fixing that to make sure that humanitarians can proceed
safely, getting designated corridors, if necessary designated
times, getting real-time communication between those providing
the assistance and those on the ground who are engaged in
military activities. All of this is a day in, day out work in
progress, but we have to do better by the people of Gaza.
Senator Coons. Thank you. I want to thank Senator Graham
and Senator Cardin who led, as you know, a bipartisan
delegation of ten of us to the region right after October 7.
You have been working tirelessly to try and move forward some
sort of reconciliation between the Saudis and Israelis, and I
hope we will get a chance to turn to that.
Senator Collins.
Senator Collins. Thank you, Mr. Chairman. Secretary
Blinken, I share your relief that the National Security
Supplemental Appropriations Bill that provides aid to Ukraine,
Israel, and our allies in the Indo-Pacific region is finally
law. Unfortunately, this is not the first time since Russia's
invasion of Ukraine that Ukraine has had to wait for vital
security assistance from the United States.
On numerous occasions, President Biden's administration has
blocked the transfer of weapons and equipment to Ukraine until
sufficient pressure from Congress and our NATO allies led to a
change in course, in some cases, after the point in the war
when those weapons would have made the most difference.
For example, the Ukrainians requested Abrams tanks in early
2022. The administration did not approve that transfer until
January of 2023, and the first tanks didn't arrive in Ukraine
until October of last year. Long-range ATACM missiles are
another critical capacity that was requested early in 2022. It
took more than 18 months for the administration to approve a
shorter-range version of ATACMS, and the longer-range version
was approved only last month, nearly 2 years after the request.
F-16s are another example.
My point is, had the administration acted when Ukraine
first requested these weapon systems, Ukraine would have been
able to benefit sooner from the technological advantage these
weapon systems provide. What I am seeking from you is a
commitment to speed up the delivery of weapons, of munitions,
of other technology at this very critical time during Ukraine's
war with the aggressor Russia.
Secretary Blinken. Thank you, Senator. First, I can assure
you that we are doing everything we can to accelerate the
actual delivery of the assistance to the Ukrainians so that
they have it in their hands, and can use it to deal with the
ongoing Russian aggression.
Second, look, I have a different perspective on this than
the one you just--the one you shared. Of course, the fact that
well before the Russian aggression, President Biden made sure
in Presidential drawdowns in the fall before the aggression,
Christmas before the aggression, that the Ukrainians had
stingers, javelins, and other things in their hands. We did it
quietly; we did it effectively. They were able to prevent the
takeover of Kyiv, and pushed back the Russian aggression.
Every single step along the way, we have worked to get them
what they need when they need it. But as you know, it is not
just the weapon systems that count. You have got to make sure
that people are trained on them, because if they are not
trained on them, it doesn't do you any good to have an Abrams
tank if you can't drive it, if you can't maintain it, which is
particularly complicated with some of this technology. Again,
it doesn't do you much good to have it.
So I think the way that the Department of Defense, for
example, has looked at this is to make sure that if we are
providing things, we do it in a comprehensive way so that it is
actually usable and sustainable because, again, otherwise it is
not going to do you much good. And certainly that was the case
with the Abrams tanks. F-16s, there are no pilots to actually
fly them, so we are training. Others are training the pilots.
So all of these things do have a, you know, a timeline to
them. You are right, but I think it is not simply a matter of
providing the tank, or the plane, or the missile, it is making
sure that the entire infrastructure is there, from the ability
to use them, the ability to maintain them, and then, of course,
to have a concrete plan to make sure they are used effectively.
Senator Collins. Well, from my perspective, there has been
slow-walking of certain weapons and munitions, which I hope we
can overcome. I want to switch to a different issue, and that
is that just yesterday, the Special Inspector General for
Afghanistan Reconstruction released a report that found that
since August of 2021, at least $10.9 million in U.S. taxpayer
dollars has been provided to the Taliban-controlled Government
by 38 implementing partners of the Department of Defense,
USAID, and the U.S. Agency for Global Media. How does the
Department explain the Inspector General's assertion that U.S.
assistance is going to the Taliban through taxes, fees, and
duties?
Secretary Blinken. Yes. Well, two things, Senator. First, I
haven't seen the report, but I promise you I will look at it
promptly. We are engaged with the Inspector General on this on
a daily basis. We are responding to inquiries. We have, I
think, dedicated something like 13,000 staff hours since we
left Afghanistan, to working with the Inspector General's
Office, and we are committed to doing that.
I want to make sure that we are responsive, and responsive
in real-time. So I will look at this as soon as possible. Are
there, fees, taxes, and things that get collected by the
Taliban? That sounds, unfortunately, logical. And maybe there
is, in this case, I don't know. I don't want to speak to it not
having seen the report. Maybe there is, unfortunately, a cost
of doing business by some of these organizations that are
trying to provide desperately needed assistance to people in
Afghanistan.
Senator Collins. I hope you will get back to me on that.
Finally, Mr. Secretary, illegal marijuana grows in Maine and
elsewhere, pose a significant national security and public
health risk. According to the Drug Enforcement Administration's
2024 Assessment, there has been a notable uptick in the number
of illicit marijuana cultivation sites linked to Chinese and
other Asian organized crime groups. That includes my State of
Maine, where between 100 and 200 sites have been identified.
Mr. Secretary, are these Chinese criminal syndicates
operating these illegal marijuana grows in our country with the
knowledge and consent of the Government of China?
Secretary Blinken. Senator, first of all, let me defer to
DEA on this, because they have the expertise about what is
going on in the United States. But I would welcome working with
you on this. Dealing with countering narcotics is a big part of
our engagement with China. We are, of course, very focused on
synthetic opioids, fentanyl, but any drug that poses a problem
and is threatening our communities is something that we are
deeply concerned with. So I would welcome following up with you
on this.
Senator Collins. Thank you.
Secretary Blinken. Thanks.
[The statement follows:]
Prepared Statement of Secretary of State Antony J. Blinken
Chairman Coons, Ranking Member Graham, distinguished members of the
Committee: Thank you for the opportunity to testify before you.
And thank you for your partnership to advance American leadership
in the world that is so essential for delivering on the priorities that
matter to our people at home.
The need for U.S. global leadership--and cooperation with allies
and partners--has never been greater.
The People's Republic of China is pursuing military, economic, and
geopolitical preeminence, challenging our vision for a free, open,
secure, and prosperous international order.
Russia is committing aggression not only against Ukraine, but
against the principles at the heart of the UN Charter--sovereignty,
territorial integrity, independence--that are the building blocks of
global peace and security.
In the Middle East, we're standing with Israel in its efforts to
ensure what happened on October 7th never happens again, as we do
everything we can to bring an end to the terrible human suffering in
Gaza and prevent the conflict from spreading.
U.S. leadership is needed to address humanitarian crises elsewhere
around the world, including in Sudan and Haiti, where millions have
been displaced and many killed . . . and to address global issues that
no country can solve alone, including food security, the changing
climate, transnational corruption, and the fentanyl crisis.
But, with support from Congress, we can and we are approaching
these challenges from a position of strength. Because of the actions
we've taken, the U.S. is stronger economically, diplomatically, and
militarily than we were 3 years ago.
We've made historic investments at home in our competitiveness,
innovation, and infrastructure. We've renewed our alliances, built new
ones, and secured unprecedented alignment with key partners in Europe,
Asia, and beyond.
We've delivered essential American aid to Ukraine . . . and we've
rallied the international community to share the burden. For every
dollar we've sent in economic and development assistance, others have
collectively invested three more.
Many doubted whether bipartisan support for Ukraine and other
urgent national security priorities could endure. But last month,
Congress demonstrated to the world that we will not pull back, when you
passed President Biden's supplemental funding bill by an overwhelming
margin.
Our investment abroad does not come at the expense of our strength
at home--far from it. Most of the supplemental is being spent here in
the United States, building up our defense industrial base and creating
and supporting thousands of American jobs.
We need to keep up this momentum. That requires a State Department
budget that will fully resource our response to the challenges of our
time.
The President's FY 2025 budget--requesting $58.8 billion for the
State Department and USAID--does that in two key ways.
First, it funds the essential missions of our Department and USAID.
The budget will ensure the United States continues to be the partner of
choice that countries turn to when they need to solve big problems. In
an era of renewed great power competition, we must present the
strongest possible offer: one that is relevant and responsive to
countries' needs, and that advances our security and economic
interests.
That's why we're requesting $2 billion for a new fund to build
high- quality, sustainable infrastructure around the world. Crucially,
investments like these create jobs for Americans and expand markets for
our businesses.
We're requesting resources for the World Bank. With $1 billion in
U.S. funding, we can unlock another $36 billion in development fund
capacity to direct to the top priorities of emerging economies. That's
an enormous return on our investment--and essential for competing with
China around the world.
The budget also includes $1.7 billion for international
organizations, including the United Nations, APEC, and the Inter-
American Development Bank, to help shape them in ways that reflect our
interests and values.
We're asking for $500 million to give more people around the world
access to secure Internet and digital technologies. Doing so will
support the U.S. economy through the export of our technology products
. . . and it will help ensure we, and our fellow democracies, remain
the leaders and standard-setters in key technologies like artificial
intelligence.
Our budget includes funding to address global issues that affect
the lives and livelihoods of the American people, as well as people
around the world--especially the synthetic drugs crisis. It also funds
our response to irregular migration, global food insecurity, public
health, and climate and energy security.
We're also asking Congress to fully fund the State Department's
educational and cultural exchanges. They are one of our best and most
cost-effective tools for advancing U.S. values and interests around the
world--and they support the students, researchers, and young
professionals from our communities who study and work abroad.
To outcompete our strategic rivals, we need to invest in the
foundation of our strength abroad: America's diplomatic corps. That's
the second pillar of this budget.
Our budget makes a strong investment in expanding our overseas
presence, opening posts in the Pacific Islands and Eastern Caribbean.
It will also continue our modernization of American diplomacy. We
are organizing the department and attracting and retaining the talent
needed to take on 21st century challenges . . . investing in our
people in Washington and at posts overseas, with training and
technology . . . and promoting agility, innovation, and efficiency in
our processes.
Last year's enacted budget level represented a 5 percent cut from
the year before. That challenges our efforts to deliver the results
Congress and the American people deserve.
I urge you to support this budget, which helps us address the most
pressing foreign policy priorities of the coming year . . . and lays
the foundation for strong U.S. leadership in the years ahead.
I'm grateful for this committee's partnership and your time. And I
look forward to answering your questions.
Senator Coons. Senator Murray, Chair Murray.
Senator Murray. Thank you very much, Chair Coons, and thank
you, Secretary Blinken, for joining us.
As I think every Member of this Committee would agree, this
is an extremely challenging moment across the world, and amid
these challenges, your Department's work couldn't be more
important. Our strength at home and across the world isn't just
measured by the strength of our military; it is measured by our
diplomacy, our influence abroad, and our strategic investments,
like supporting our allies, building partnerships,
strengthening trade and supply chains, and protecting
civilians.
That is why these types of investments were a key part of
the National Security Supplemental that I worked so hard to
pass earlier this year. We proved Congress can still come
together to stand by our allies, like in Ukraine, and show
American leadership is still strong. We know there is a lot
more work to do.
So when it comes to America's national security, it is
absolutely critical we ensure that your Department has the
resources needed to fulfill its essential mission. After all,
Vladimir Putin is not operating his brutal invasion by a CR.
And President Xi, certainly, is not cutting investment in
diplomacy, or military, or economic assistance, or
international development
The lesson should be clear: when we fail to properly invest
in the State Department and the powerful diplomatic tools we
have, our adversaries fill the gap. So I am delighted you are
here today and look forward to the conversation.
Mr. Secretary, U.S. foreign policy should reflect our
interests, and that means being consistent with our values.
That includes protecting human rights and upholding the rule of
law. We have to stand by our allies in time of need, and at the
same time we have a responsibility to make sure weapons we
provide do not contribute to violations of international
humanitarian law, which exists to limit the suffering caused by
warfare even when the war itself is justified.
In May, the administration transmitted its first report
under National Security Memorandum 20 to Congress. This report
found it was reasonable to assess some partner countries are
using U.S.-provided weapons in a manner that is inconsistent
with international law. Clearly, more needs to be done to
ensure human rights and the rule of law are central in our
decisions regarding to what extent and under what conditions we
provide security assistance to partner countries. What steps
are you taking to ensure security assistance, legal
requirements, and policies are being fully implemented?
Secretary Blinken. Thank you very much, Chair. And let me
first say I fully agree with you. And it is imperative that as
we provide security assistance, defense support to other
countries, to allies, and partners, that it be used in a way
that upholds international humanitarian law, the law of armed
conflict, et cetera.
And we have processes in place, in fact, newly established
in this administration, to try to make sure that we are doing
that, particularly when it comes to the Conventional Arms
Transfer Policy, something we call the CHIRG process, which
tries to assess whether, in any given incident involving
civilian casualties, American weapons were used. And those
processes are actually underway.
We have multiple inquiries going on with regard to specific
incidents. I am referring here to Gaza, the challenge, and I
think it is reflected in the NSM Report that you referred to,
the challenge is making final determinations in the midst of a
war, in the midst of conflict. It is very hard to get all of
the dispositive information. We are not on the ground. We don't
have access. In the case of Gaza, you have an extraordinarily
complicated battlefield where Hamas, a terrorist organization,
hides behind, and underneath civilians, and apartment
buildings, and hospitals, and mosques, making it very, very
difficult to make final real-time assessments.
But as you have noted, and as the report concluded, given
the totality of the damage that has been done to civilians in
Gaza, and given the fact that there is American weaponry is
there, it was reasonable to assess that in some instances it
had been used in ways that are not consistent with
international humanitarian law.
These instances are under investigation. They are under
investigation by us. They are also under investigation by
Israel. There are hundreds of open inquiries in Israel. There
are criminal investigations that are underway in Israel. And
our own process, I take very seriously. We can't have double
standards, whether it is Israel or any other country that we
provide weapons to, in making sure, to the best of our ability,
that they are used consistent with the requirements of
International Humanitarian Law.
Senator Murray. Do you have sufficient staff and resources
to meet that objective?
Secretary Blinken. It is a very good question, and it is
something that we are looking very hard at, because I think in
order to do something like this in real-time, the answer is
probably no. It is incredibly labor-intensive. And even with
that, not having access in the midst of a war makes it even
more difficult. We are looking at ways that we can better
resource what we are doing. And that is certainly something we
will come to you with because I want to make sure that we do it
as thoroughly and as effectively as possible, even given the
conditions in which we are doing it.
Senator Murray. Okay. Thank you. And let me turn to
Ukraine. I really appreciated your update on where you are
deploying new weapons and non-military aid to Ukraine. But
despite our tireless efforts here in the Senate, the National
Security Supplemental was significantly delayed. And I am very
worried about the window that has now given Putin and Russia to
build up their forces and make the advances that we have seen
in the last few weeks. I am also really concerned about reports
of Russia's increased weapons production and the challenges the
U.S., our European partners, and Ukraine will have in keeping
up with them.
You were just in Kyiv.
Secretary Blinken. Um-hum.
Senator Murray. Given the recent gains on the battlefield
by Russia, what is your assessment of how quickly the aid and
support alongside our allies could translate to the Ukrainians
holding the line or, in fact, regaining territory?
Secretary Blinken. So I think it is translating into that
right now. Items that were funded or supported by the
supplemental are already there, and much more is flowing. But
we have already seen that arrive. I think it has had two
impacts: clearly a psychological impact, which Ukraine very
much needed in this moment, and it really bucked them up to
know that all of this was on the way. But we are also starting
to see a practical impact in terms of these necessary pieces of
equipment, and arms getting into the hands of Ukrainians when
they need it most.
Now, what is going on in the northeast, you primarily have
a challenge of making sure that in the first instance,
Ukrainians have effective defenses against the attempt by the
Russians to create a buffer zone and to challenge Kharkiv. But
I think we are getting to a point where that is starting to
come into effect.
So my hope and expectation, based on what we have seen, is
you will see a stronger and stronger resilience to what Russia
is trying to do as a result of the supplemental, as a result of
things that Europeans are providing. But I have to tell you,
there was real damage done over the last 8 months, and that
gap, unfortunately, was filled to some extent by the Russians
pushing forward. Now, I think the Ukrainians have the means to
more effectively deal with that.
Senator Murray. Okay. Thank you. Thank you very much, Mr.
Secretary.
Senator Coons. Thank you, Chair Murray.
Ranking Member Graham.
Senator Graham. Thank you, Mr. Chairman.
Mr. Secretary, I believe the money in this account is about
1 percent of all Federal spending; is that correct?
Secretary Blinken. That is correct, yes.
Senator Graham. And out of that pot of money, we provide
security for personnel, State Department officials all over the
world, right?
Secretary Blinken. That is right.
Senator Graham. Have you ever seen more threats to us than
you do today?
Secretary Blinken. Senator, we are operating in an
incredibly dangerous world, but we to be out there.
Senator Graham. Right. So it is hard to get out there if
you can't get off the compound. So this is 1 percent of the
Federal budget. If you eliminated the entire account, you are
not doing anything to balance the budget. We need Overseas
Contingency Operations funding, in my view, for the Navy, and
we need OCO for this account to deal with the threats we face,
because the topline numbers--hats off to Senator Murray and
Collins--are just insufficient to the threats we face. Do you
generally agree with that, that the amount of money we are
dealing with is insufficient to the threats we face?
Secretary Blinken. Yes, I do.
Senator Graham. Let us talk about money. In the
supplemental, which I supported, there was a provision that
allowed--it is called REPO (Rebuilding Economic Prosperity and
Opportunity for Ukrainians Act)--allowing us to go after
Russian sovereign wealth funds; is that correct?
Secretary Blinken. Yes.
Senator Graham. Are you having good luck in doing that?
Secretary Blinken. We are starting to. And first of all, I
want to thank you for that. I think that was a very important
initiative. Just today, the European Union came to an agreement
to use the interest from the sovereign assets and just to be
able to use it for Ukraine.
Senator Graham. What about the principal?
Secretary Blinken. So the principal is the next challenge,
and we are working hard on that. I think here is where we are.
My hope is that we can come to an agreement, at the very least,
on an arrangement by which the principal would, in effect,
serve as collateral against a significant loan or bond that
would free up a lot of money for the Ukrainians.
Senator Graham. Count me in, and I think all of us are
pushing our European allies to go after Russian assets to open
up another front, to hit Putin and his cronies in the
pocketbook. So I want to help you there. Do you support Russia
being designated a state sponsor of terrorism?
Secretary Blinken. So this is, I know, an ongoing
conversation we have had and one that----
Senator Graham. Well, I just got a few minutes, so.
Secretary Blinken. Yes. So very quickly, look, I think my
perspective is this. We have and we are using many other
authorities that I think are more clearly applicable----
Senator Graham. Well, we will talk offline. I would urge
you to do this. We need to send a signal to Russia, we are
serious at every level, and they deserve to be a state sponsor
of terrorism. I got a list of people that died that is too long
for me to run off and I can't say half their names. So it is
just time for Putin to be labeled a state sponsor of terrorism.
They have just wreaked havoc.
Now let us get to the ICC. Did you reach out to the
Prosecutor's Office about your concerns of bringing a case
against Israel?
Secretary Blinken. Yes.
Senator Graham. Did you talk about the concept of
complementarity?
Secretary Blinken. That is exactly what I talked about
because it is exactly as you said. My understanding of the
Court's intent----
Senator Graham. I want to, you know, we have a lot of
differences, I want to thank you. I want to thank President
Biden for issuing a strong statement. Your statement was
terrific, Mr. Secretary. Senator Schumer was very, very good.
I, along with many others, engaged the ICC to engage Israel
before you made a final decision. At least listen to them and
see if you could find common ground.
Again, I want to repeat. The ICC were supposed to be on the
ground yesterday; is that correct?
Secretary Blinken. That is my understanding, yes.
Senator Graham. And they informed the Israelis basically
after the flight left, they were not coming; is that correct?
Secretary Blinken. That is my understanding.
Senator Graham. And there was a CNN interview with the
Prosecutor General announcing the arrest warrant; is that
correct?
Secretary Blinken. That is my understanding, too.
Senator Graham. Which was filmed before the flight was due
to leave.
Secretary Blinken. I believe that is----
Senator Graham. I think that is bad-faith, folks. So I want
to take actions, not just words. Will you support a bipartisan
effort to sanction the ICC, not only for the outrage against
Israel but to protect in the future, our own interests?
Secretary Blinken. I welcome working with you on that.
Senator Graham. Okay. Let it be said that we are going to
work together to send a signal to the ICC: What you did was not
only outrageous, you destroyed the rule of law as we know it,
and you have given, like Venezuela, 9 months. And I have never
been more disappointed. We worked together to help the ICC
against Russia. Ungoverned spaces and rogue nations are the
point of ICC, not Israel.
So let us talk about the deal. Are you optimistic that the
normalization between Saudi Arabia and Israel is still
possible?
Secretary Blinken. I am. And I have to, first of all,
applaud the work that you have done on this over many, many
months in helping carry this forward. And I think we are at a
point where the necessary agreements between the United States
and Saudi Arabia are very well within reach, and of course, we
would bring all of this before Congress. But then the question
will be, if those agreements are able to be concluded, it still
requires Israel to do certain things in order to proceed with
normalization.
Senator Graham. I have heard the statement the ball is
about to be in Israel's court. Is that fair to say?
Secretary Blinken. That is my assessment, yes.
Senator Graham. Okay. So as I understand it, here is what
is non-negotiable: nobody expects Hamas to be standing
militarily when this war is over, right?
Secretary Blinken. As I said----
Senator Graham. We share Israel's view they must know
militarily----
Secretary Blinken. We share Israel's view that Hamas cannot
be governing Gaza.
Senator Graham. Right. And they cannot be a military threat
to Israel. We all agree with that.
Okay, now as to the Palestinian future, we were on
television last week and I thought you laid out pretty
eloquent: What is going to happen once the battalions are
destroyed? What does the day after look like? Do you believe a
military occupation of Gaza by Israel is sustainable?
Secretary Blinken. No.
Senator Graham. You know, I have real doubts about that
myself. Do you believe that Saudi Arabia and the UAE have the
capability, if they have the will, to turn Gaza and West Bank
around?
Secretary Blinken. I believe a number of countries could
play an instrumental role in, at least on an interim basis if
necessary, helping to provide security, helping to provide
governance, to govern to themselves----
Senator Graham. It could be a coalition of people.
Secretary Blinken. Yes.
Senator Graham. Do you believe Mohammed bin Salman is
sincere in wanting to normalize with Israel?
Secretary Blinken. Yes.
Senator Graham. Do you believe that the Palestinian
component is not the establishment of a Palestinian State on
day one, but a process that may get to there?
Secretary Blinken. There has to be a clear, credible
pathway to state.
Senator Graham. Right, but not the establishment of state
on day one.
Secretary Blinken. Well, day one is virtually impossible.
Senator Graham. Yes, right.
Secretary Blinken. But getting to a state in a time now
where----
Senator Graham. That is one of the things he wants. That is
one of the things he wants, to recognize Israel.
Secretary Blinken. Right. It has to be credible. It has to
be clear, in my judgment we need to have something that is
time-bound, and of course, it has to have the necessary
security guarantees for Israel.
Senator Graham. So you are not advocating any agreement
between normalization that would compromise Israel's security
regarding the Palestinian file?
Secretary Blinken. No. And the whole point of
normalization, but also the whole point of the establishment of
a Palestinian State, is to make sure that Israel's security is
better insured.
Senator Graham. I have been over there several times,
Senator Collins went, a lot of people here went--I know my time
is up. I cannot see a better time than now, the need to come up
with a plan for Gaza and the West Bank after Hamas falls, and
it will, is real. The opportunity is historic. Do not let this
moment pass. To my friends in Israel, I will never abandon your
security, but we are going to have to sit down as a world to
make some hard decisions.
So Mr. Secretary, I have enjoyed working with you and
National Security Advisor Sullivan, and the President. I have
said publicly I think this needs to be done on your watch, and
I want to say again publicly, as a Republican, I think most of
my colleagues would embrace a security agreement between the
United States and Saudi Arabia if it would lead to
normalization and a brighter future for Israel and the
Palestinian people. I believe that is the position of most
people on my side of the aisle, and we want to help you.
Secretary Blinken. Thank you, Senator.
Senator Coons. Thank you, Senator Graham, and thank you for
your dedicated and persistent pursuit of a path forward that
would actually deliver the end of the Arab-Israeli conflict,
recognition of Israel by Saudi Arabia, and a path towards self-
governance for Palestinians. That is something so many of us
hope we can see. And thank you, Mr. Secretary. Senator Durbin.
Senator Durbin. Thank you, Mr. Chairman. Mr. Secretary, it
is good to see you. And thank you for your tireless efforts on
behalf of this Nation. I appreciate it.
I would like to mention two political prisoners in
different parts of the world that we have reached out to and
been in contact with, a Cambodian-American, Democrat activist,
Terry Singh, who is serving a 6-year sentence on nonsense
charges. And Gulshan Abbas, a Chinese Uyghur doctor languishing
in a Chinese prison on a 20-year dubious charge. I hope you
will continue to advocate for these two.
Secretary Blinken. The short answer is yes, we will, and we
are.
Senator Durbin. I want to reiterate something I said on the
floor last week, specifically supporting President Biden, in
suspending key weapons deliveries to Israel that could be used
for a full assault on Gaza and Rafah. Our President has stood
in solidarity with the Israeli people since the horrific
October 7 Hamas attack, which I might add included taking
hostage someone with ties to my State, Hersh Goldberg-Polin,
there is recent evidence of life and survival, so we are
anxious to see his return.
But like President Biden, and like many of us, I have had
enough with Prime Minister Netanyahu's strategy in Gaza that
has caused the deaths of thousands of innocent Palestinians,
many of whom are women and children. How can we, in good
conscience, continue to supply Netanyahu with weapons for a war
where he restricts access to humanitarian aid like food,
medicine, and fuel, at the expense of women and children?
Secretary Blinken. Senator, we have been determined from
day one to do two things. One, to make sure that Israel had
what it needs to defend itself, to make sure that October 7
couldn't happen again. But also in so doing, to look out for
the protection of civilians and their needs, their humanitarian
needs. And from day one, we have been pushing, pressing Israel
to make sure that access was there, supplies were there,
distribution was there, deconfliction was there.
And that has been virtually every single day of the last 8
months, working on that to try to improve the conditions for
those who are caught in this horrific crossfire of Hamas'
making. And particularly the children, the women, the innocent
men who are suffering terribly every single minute of every
single day.
Senator Durbin. We have heard over and over that there is
an Israeli strategy to restrict access to humanitarian aid in
Gaza, and as a consequence, children are starving to death and
people are in desperate situations. I have personal friends of
mine who have been there, medical doctors, the reports are
horrific of what deprivation has been caused there. Is that at
the hands of Israel's strategy, or is that a part of it?
Secretary Blinken. In our judgment, this is not, and has
not been a deliberate attempt to deny people what they need,
but this has not been the priority that it should have been and
needs to be in terms of what Israel is doing in Gaza. It is, as
we know, an incredibly complicated terrain in which to operate,
given the nature of the enemy and what it does.
But we have said for some time, for a long time, that in
our judgment, the needs of the civilian population need to be
put front and center and to design everything else around that,
not the other way around. Over these many months, as we have
gotten different access points open, starting with Rafah back
in October, to Kerem Shalom some weeks later, to other crossing
points, whether it was Erez or the 96 Crossing, the route from
Jordan with trucks, now our own maritime pier.
All of this has been designed, and with Israel's
cooperation, to get assistance to people who desperately need
it. But it has not been enough. It has not been effectively
distributed, and people continue to suffer grievously. So we
are working to do everything we can to maximize what they get.
Deconfliction remains a real problem as well.
Senator Durbin. So I understand the administration's
position and agree with it, that when it comes to denying them,
for example, access to 2,000-pound bombs, which may destroy the
lives of innocent people and certainly would in these confined
circumstances, that is an express statement by the United
States that any policy of the Israelis that includes those
bombs, we are not going to be complicit. Is that true?
Secretary Blinken. To be clear about what the President
said, and we have shared this for some time, we have deep
concerns, and in fact cannot support a major military operation
going into Rafah absent a credible plan to protect civilians.
We haven't seen such a plan. We have deep concerns in a dense
urban environment, like Rafah, with the use of something like a
2,000-pound bomb. That is why we have been engaged in a
discussion with the Israelis about it.
Senator Durbin. So the point I am getting to though is when
you look at the interdiction or denial of humanitarian aid and
the deaths of innocent people, particularly women and children,
what are we doing to put the pressure on Israel to stop that?
Secretary Blinken. I think that is there every single day.
The President has been very clear with Prime Minister Netanyahu
about that. I have done the same with my various counterparts.
We have commitments from Israel, including in writing, about
the steps that haven't been taken that need to be taken, that
they say they will take and are taking, and we are working to
hold them to those steps. We have to make sure that more aid
gets into more people more effectively.
Senator Durbin. When I see this television coverage of
miles and miles of trucks waiting to bring humanitarian aid,
and I am thinking while there----
[Audience outburst.]
Senator Durbin. At the same time that these children are
starving and being denied basic medical assistance, it strikes
me that we are building extraordinary piers, temporary piers,
at a cost of millions of dollars because the Israelis will not
open up the gates to let the trucks in. Am I drawing----
Secretary Blinken. No, the pier, the pier which is now
functional, was designed to be a complement to, and not a
substitute for these gates.
Senator Durbin. So the gates are open?
Secretary Blinken. So in the north, we have Erez and Zikim,
which were recently opened. We have routes in the south though,
and this is what has happened in the last couple of weeks, with
the operations now taking place in the area of Rafah, and
particularly the Rafah gate that was shut down. Kerem Shalom
was operating at much less capacity than before because of the
military operations that Israel is engaged in, in the last few
weeks.
So what we don't--what we don't want to see is a reversal.
We had terrible problems, particularly in the north, in getting
aid in, and the north was a particularly acute disaster area
for the people that were still there. That has been improved,
again not sufficiently, in opening these crossings from the
north. We have convoys coming in from Jordan as well that are
going directly to the north, Ashdod Port. But now the situation
in the south is deeply, deeply, deeply concerning because these
gates have either been shut down, or they are not operating as
efficiently as they should.
Senator Durbin. I hope that the United States, through the
President, will take the same resolute, determined stand when
it comes to the interdiction of humanitarian aid. We have been
briefed by credible sources that there is little or no
smuggling taking place into Hamas, and that the basic
foodstuffs and medicine and fuel that are needed for these
families that are struggling to survive there is being stopped,
and it trickles in instead of coming in at full force. I hope
we show the same level of determination for that as we did with
these 2,000-pound bombs.
Secretary Blinken. We do. Thank you.
Senator Coons. Thank you, Senator Durbin. Senator Boozman.
Senator Moran, my apologies.
Senator Moran. Thank you, Senator Boozman. Thank you, Mr.
Chairman.
Mr. Secretary, the introduction of Russian troops into
Niger, the same base as where American personnel, including
Kansas Members of the National Guard, are stationed. What is
being communicated to the Junta in Niamey to make certain our
service members are protected, and what can you assure me about
our pending withdrawal, that it will be safe and responsible?
Secretary Blinken. Thank you, Senator. My number one
priority, the number one priority as the Secretary of Defense
in this case, is Force protection or personnel protection. And
particularly in a situation like Niger, where, yes, we had a
coup, we sought to reach an agreement with the junta or the
government that exists now about staying. We haven't been able
to reach an agreement that meets our needs.
But we have been absolutely clear with them about the
imperative of making sure that as we pull forces out, we do it
in a way that is safe and secure for those forces, just as our
Embassy personnel needs to be protected. We have assurances
from the Government about that, but my number one priority is
making sure that whatever happens as we proceed with bringing
forces out, it is done in a way that protects them.
Senator Moran. I think I read in the general press about a
September 15 date for departure.
Secretary Blinken. That is correct.
Senator Moran. What is that based on? Why from now until
then?
Secretary Blinken. Basically, the amount of time it takes
to do it safely, securely, to retrograde all of the material
that is there. Again, to your point, we also want to make sure
that we not only bring our people home, we bring all of the
equipment home, technology home, because we certainly don't
want Russians or Russian proxies getting a hold of that.
Senator Moran. Related but concerning is we have spent
billions of dollars in security assistance for countries across
the Sahel, including training their militaries. I think we have
seen five coups by the very military that the U.S. is training,
since 2020, and the numbers I have seen suggest that terrorism-
related activities grow by 2000 percent in the last 15 years.
What is it that we need to do to change our policies? And where
do we go; emphasis on security assistance versus governance,
peace building, conflict resolution?
Secretary Blinken. Yes. I think you put your finger on
something critical, which is that as necessary as the security
and military assistance is, it is not sufficient. And a more
comprehensive approach that gets at trying to build government
capacity, institutions, transparency, economic development,
social needs, all of those things are imperative if we are
actually going to have something that is sustainable.
So we have some comprehensive plans in place to do that
with some of the countries surrounding the Sahel. We have the
Global Fragility Act, thanks to Congress, and indeed many
Members of this Committee, that gives us both the means and the
long-term approach to try to help build that up. Because I
think if we don't, all the security assistance in the world is
probably not going to work, and we are going to be on the wrong
end of what you have just described.
Senator Moran. Mr. Secretary, I think in last year's
hearing, I raised this topic and asked this question. There are
lots of reasons that this is important, but we have an average
400-day wait time to receive a visitor's visa to the United
States. Senator Klobuchar and I have introduced the Visa
Process Improvement Act. I am reminding you that we have the
Olympics coming to the United States, FIFA World Cup in 2026.
Eleven cities, including Kansas City, are hosting this event--
these events. It is expected to attract eight million
international visitors. What is the plan? Is there changes that
we have not yet seen that improve the situation for the visa
processing system to address this 400-day average wait?
Secretary Blinken. Yes. In short, yes. And we have been on
this relentlessly. And the fact is, right now, more visitors
can travel to the United States than ever before. As a result
of visas, for fiscal year 2023, we issued 10.5 million
nonimmigrant visas, and that exceeds what we issued before the
pandemic, which is when we got into a great deal of difficulty.
It exceeds it by 20 percent.
We have, with a high standard for security and vetting,
which of course remains critical in what we are doing. We have
reduced interview wait times across the board. They are now at
pre-pandemic levels in every single category, except for first-
time visitors to the United States from non-visa waiver
countries. So this is an area that we are putting particular
focus on because every other wait time is actually below now
pre-pandemic wait times.
The processing times that are most impactful to our
economy, whether it is students, temporary workers, business
travelers, all of those wait times are actually down. So we
have to focus on, and we are focused on, the first-time
travelers who are not coming from visa waiver countries. We
have dedicated extensive resources to this to make sure that
both in our embassies and back home, we can do what is
necessary to process people and process them quickly.
Senator Moran. Is there any evidence, Mr. Secretary, that
China has taken steps, tangible steps, to reduce the flow of
fentanyl and precursor chemicals into the United States?
Secretary Blinken. Yes. A good start, but not enough. By a
``good start'', I mean this: after the meeting between
President Biden and President Xi, President Biden secured an
agreement by China to act, and act more effectively on this.
And what we have seen since then is the promulgation of new
regulations to their chemical-producing companies. We have seen
them take down some companies that were engaged in the illicit
transfer of chemical precursors. And in addition, they
established with us a working group so that we are working on
this regularly, and we can bring information to them about
things that we are seeing.
Having said that, we believe that to really have an impact
on the flow of these precursors that typically would go to
Mexico, synthesized into fentanyl, coming to the United States,
there are a few things that we really need to see. One is very
public law enforcement, with prosecutions and convictions of
people or enterprises that are engaged in this.
Two, there are a number of chemical precursors that should
be scheduled that China, at least theoretically, has agreed to
schedule, that they still haven't, thus making it more
difficult for companies to divert them.
And third, there is a financial nexus between some actors
and entities in China and criminal organizations, in Mexico in
particular, that they need to act on.
Senator Moran. Is China ambivalent, or it actually gains
benefit from supporting the trade?
Secretary Blinken. I think from what we have seen, they saw
it before as principally a problem for us, and a demand problem
that we were not addressing effectively. We have made it clear
to them that: One, this is a number one priority for us. As you
know well, Americans between the ages of 18 and 49, the number
one killer is fentanyl, synthetic opioid . So this is a
national emergency.
Second, what we have seen is that even as our markets have
become saturated, these criminal enterprises are making markets
elsewhere around the world, in our own hemisphere, in Europe,
in Asia. And we made it clear to China there is going to be a
growing demand signal on you to act responsibly in dealing with
this. You may not care so much if it is coming from us. You are
probably going to care more if it is coming from a lot of other
countries. We put together a coalition now of almost 150
countries and organizations to deal globally with the synthetic
drug crisis. And I think China is hearing those demand signals,
and we are seeing action. But again, it is a start, but it is
not enough.
Senator Moran. Thank you.
Senator Coons. Senator Van Hollen.
Senator Van Hollen. Thank you, Senator Schatz, and good to
see you again, Mr. Secretary. I do want to follow up here where
we left off earlier in this morning's Senate Foreign Relations
Committee hearing. I did hear your exchange with Senator
Murray, where you indicated that in the middle of a conflict,
it would be difficult to reach any final conclusions about
whether or not U.S. weapons were used in violation of
International Humanitarian Law. I would just point out that
there are many other conflicts where we are able to quickly
make and do issue those kinds of judgments.
But what I don't think is complicated at all is if you look
at the period of time from October 7, the terrible Hamas
October 7 attacks, to the present, I don't think it is
complicated to conclude that the Netanyahu Government has
complied with international norms with respect to the delivery
of humanitarian assistance, along that continuum of time.
Is it your testimony today that the Netanyahu government
has complied with international norms when it comes to
delivering humanitarian assistance to desperate people in Gaza
since October 7 until today?
Secretary Blinken. I think there has been a huge gap
between stated intent and actual results. And that is a gap
that we have been trying to close every single day. And I think
that is what we have been seeing for many months.
Senator Van Hollen. Mr. Secretary. I get that. You know,
obviously my question was whether or not there have been
violations of international norms, which I think to any person
with eyes to see and ears to hear, there have been. And as you
know, there are many people in the U.S. Government who have
reached similar conclusions, and actually it has been well
reported on. So I think that does hurt our credibility when we
are not able to make that clear call.
Let me move on to the issue where we were in agreement, I
think, this morning, which is that it is in our national
security interest to have a durable end to the conflict in Gaza
and to the larger Israeli-Palestinian conflict. And that we can
only achieve security, and self-determination, and dignity and
justice for Israelis and Palestinians alike by securing a
normalization of relations with Israel and Saudi Arabia and
other states, as well as a clear plan, I think you said a time-
bound plan, to establish a Palestinian state. Am I paraphrasing
that fairly?
Secretary Blinken. That is correct.
Senator Van Hollen. And you agree that it is not possible
to achieve a secure and just end to the Israeli-Palestinian
conflict by jumping over the equities of the Palestinian
people; is that right?
Secretary Blinken. Absolutely not. That is impossible. It
would be self-defeating.
Senator Van Hollen. I want to emphasize that point because,
you know, Mr. Secretary, you have been around Washington for a
long time, and it has been fashionable, in some foreign policy
circles, to believe that you could do that, that you could
somehow achieve peace and stability and security by jumping
over the Palestinian issue.
And I want to emphasize this because you have said that the
Saudis are insistent on a clear path to a Palestinian state and
a time-bound path, but it is also in our national security
interest. So are we also insistent on that?
Secretary Blinken. Yes, we are. And again, it is
interesting and I think instructive to note that perhaps the
two most vicious and vociferous enemies of a two-state solution
are Hamas and Iran. That should tell you something. And it also
should tell you what a rebuke to both Hamas and Iran it would
be if we could finally get on this pathway in a credible and
time-bound way. And I think certainly everything we have heard
from the Saudis in the context of having these normalization
discussions makes it clear that they feel the same way.
Senator Van Hollen. Well, I am glad you raised that because
there is one other party, right, in addition to the two that
you mentioned, that has been dead set against a Palestinian
state and a two-state solution. In December of 2022, just the
day before the new Netanyahu government was sworn in, Netanyahu
issued a list of priorities for this new very extreme
government, and I am quoting, one of his guiding principles
was, ``The Jewish people have an exclusive and inalienable
right to all parts of the land of Israel,'' meaning including
all the West Bank.
So I want to read to you something else that Prime
Minister--now Prime Minister Netanyahu said back in 2019 at a
Likud Meeting, and this has been well reported, and I quote,
``Anyone who wants to prevent the creation of a Palestinian
State needs to support strengthening Hamas. This is part of our
strategy to divide the Palestinians between those in Gaza, and
those in Judea and Samaria.''
So Mr. Secretary, you mentioned some of the other opponents
of a two-state solution, and it is absolutely true that Hamas
believes in one state, right? Their despicable endgame is one
state where they wipe out the state of Israel, right? And so
can you be really clear as to why Prime Minister Netanyahu is
simply misrepresenting the case when he says that a Palestinian
state and a two-state solution would be, quote, ``A reward for
Hamas''; isn't it exactly the opposite?
Secretary Blinken. I believe it is exactly the opposite.
Now, of course, a Palestinian state has to come with the
necessary security guarantees for Israel. No one wants to see a
state emerge that would become a threat to Israel, and I think
there are effective ways to make sure that that doesn't happen.
But yes, to your point, again, I think the biggest rebuke
to Hamas and to Iran would be the realization of a Palestinian
state alongside a Jewish and democratic Israel.
Senator Van Hollen. And I agree with you 100 percent, Mr.
Secretary. I just want us to be clear-eyed about all the forces
that are arrayed against us. Part of the effort to undermine
the PA, or the two-state solution has been undermining the
Palestinian Authority.
As you know, Finance Minister Smotrich has been withholding
funds for the PA, which is weakening the PA and creating an
even more unstable security situation on the West Bank. Today,
Ben-Gvir talked about reoccupying Gaza. He said he would like
to live in Gaza. This is today reported. So my question, Mr.
Secretary, is what are we willing to do when people like
Finance Minister Smotrich hold up funds for the PA, weakening
security? And at what point do we say that our continued
support is contingent on more cooperation?
Secretary Blinken. I think if you ask the Israeli security
forces, whether it is the intelligence forces, Shin Bet,
whether it is the IDF, they will tell you that the PA plays an
absolutely critical--essential role in trying to preserve
security and stability on the West Bank. They do it in an
incredibly difficult environment, precisely because they are
constantly being starved for funds.
They are doing work that is actually vital to Israel's
security. And so it is manifestly against the interests of
Israel, and it is against our own interests to see the PA
undermined in the fashion that some are attempting to undermine
it.
Second, in terms of governance going forward, it is
imperative that not only the conflict in Gaza end as soon as
possible, but that Israel come forward with a clear plan for
how Gaza is going to be governed, secured, and redeveloped,
because the trajectory we are on right now, in the absence of
such a plan, is either Israel stays and occupies the Gaza,
which is unacceptable to us, and should be unacceptable to
them, because they will be inheriting an insurgency that will
bleed them for a long time.
Or if they are not going to do it, then Hamas will come
back. And we have seen already in areas that have been
``cleared'' by Israel, the return, in some cases, of Hamas. Or
you will simply have anarchy, lawlessness, which we see in most
parts of Gaza right now, and that eventually will be filled
almost certainly by something bad, even worse than the
lawlessness.
So there is an imperative, an absolute imperative for that.
We believe strongly that, of course, Palestinians must be
governing themselves, whether it is in Gaza, whether it is the
West Bank, and whether it is ultimately, of course, in a
Palestinian State. And right now, for all of its deficiencies
and challenges, the Palestinian Authority is the best vehicle
for that. They have a new Prime Minister, they have a new
government, they have a reform plan which needs to be
implemented.
In our own engagements with the Prime Minister, he struck
us as someone who is serious and focused on actually trying to
reform the PA, so it is responsive to the needs of the people,
and that it roots out corruption. But of course, if it has no
resources to work with, it is going to be impossible to do the
job. So we are at this constantly, including trying to make
sure that the revenues that the PA is entitled to actually get
to the PA.
Senator Van Hollen. Thank you. And I do think this is sort
of the last gasp, the coming year, for a two-state solution,
and it is going to require strong U.S. leadership. Thank you.
Secretary Blinken. Thank you, Senator.
Senator Coons. Senator Schatz.
Senator Schatz. Thank you, Chairman. Thank you, Secretary.
I want to follow up on Senator Van Hollen's line of
questioning.
The Israelis' Defense Minister called on Prime Minister
Netanyahu to quote, ``Make a decision and declare that Israel
will not establish civilian control or military governance in
Gaza'', and that quote, ``A governing alternative to Hamas in
the Gaza Strip be raised immediately.'' Can you comment on
that?
Secretary Blinken. We agree with what the Defense Minister
has said, and other members of the cabinet have said. And it is
just as I said: in the absence of such a plan, the trajectory
is very negative in terms of Israel's own interests. So it is
imperative that we see that.
Now, we have not been standing still. We have been working
very, very intently with many Arab partners over the last 3
months, 4 months, on developing possible plans for Gaza, for
post-conflict Gaza, because we also see that as a means of
speeding the end to the conflict which we very much want to see
as soon as possible, so that the suffering of people stops.
Now, of course, and it is unfortunate, more than
unfortunate, this has gotten lost from the conversation. Hamas
could have arranged that--for that on day one by surrendering,
giving up the hostages, putting down its arms, stop hiding
behind people, and using them as human shields. Of course, it
has not done that, and the fact that there has been virtual
silence on that these many months, also is deeply unfortunate.
But there, it is imperative that there be a clear plan and
that Israel is ready to move on it. Otherwise, we are going to
wind up exactly where I described to Senator Van Hollen.
Senator Schatz. Yes. That is right. I mean no decision is a
decision, right? Sort of sandbagging this ends us, inevitably,
in a place where there are no two states, and there is some
version of chaos. But I am glad you said that about Hamas,
because I do think that, you know, one of the things that
Members of this Committee, Members of Congress, even in
American society, go straight to, is that we do criticize
Israel, and I think they are worthy of criticism.
But one of the reasons we criticize Israel is because they
will listen sometimes, and it is not common for a Member of
Congress to criticize Hamas, and it is not like as similar as
reading a statement worried about whether or not they are in
good standing with the American public. And so, I do think it
is worth reiterating that without a partner for peace, it is
going to be incredibly difficult.
I want to pursue the question of normalization. You have
talked to Senator Graham and others about where we are. It
seems to me that we have many of the partners ready to go and
the Prime Minister is the sort of last piece of that; is that a
fair characterization of where we are?
Secretary Blinken. Well, look, in fairness, we have had a
lot of work to do to try to get as close to final as possible
agreements on normalization between us and Saudi Arabia that
are part of this--that would be part of this Arrangement, and
of course, those are agreements if we reach them in principle,
that we will bring to Congress. But I think we are at a point
now where those Agreements are very much within reach, very
close reach, and that suddenly turns what has been a
theoretical or hypothetical into an actual question, to get the
answer.
Senator Schatz. I guess the question I am trying to figure
out is, when you talk about how sort of vanishingly close, and
that is what the public reporting has been, is that things are
actually going reasonably well in the kind of ``bilat'' piece.
Secretary Blinken. Um-hum. Yes.
Senator Schatz. The problem is that this is not a bilateral
negotiation; so where are we with that?
Secretary Blinken. So I think, my point is this: For
Israel, in talking about this until now, it has been a sort of
theoretical or hypothetical conversation, assuming we reach
conclusion on these agreements with Saudi Arabia, all of a
sudden that becomes a real question. We are in effect calling
the question. And I can't tell you what the answer will be. But
actually having to answer the question as opposed to answering
something that might happen is a very different thing.
I can't tell you whether Israel, whether it is the Prime
Minister or the country as a whole, is prepared to do in this
moment, what would be necessary to actually realize
normalization, because that requires an end to Gaza, and it
requires a credible pathway to a Palestinian State.
Are they able and willing to do that in this moment? I
don't know, but until you actually pose the question in a
concrete way, we are not going to find out.
Senator Schatz. I want to go back to the humanitarian aid
question, and the sort of throughput of the various crossings,
and the pier and all the rest of it. We all know we want more,
we all know that we are dissatisfied with both Hamas, and IDF,
and the Israeli Government on the throughput. My question is
rather specific: Where are we on numbers? How close are we to a
sort of steady state of obviously still not a good situation
but alleviating suffering?
I know there was a number thrown around between 500 and 600
trucks. You know these crossings get open. The numbers are
getting fuzzy, so that all we do is sort of point our finger in
the air, and say you ought to do more. How much more do we need
to accomplish? And what specifically needs to happen in order
to accomplish that?
Secretary Blinken. I think, Senator, the all is two-fold.
First, we tend to get fixated on the number of trucks. That is
probably the wrong metric, but it is an input metric at least
that is visible and countable. But what we really need to be
focused on is this, and we are: What is the actual amount of
assistance, however many trucks it takes, that is getting in
sufficient to meet the basic needs of the people? But then not
just getting in, getting distributed?
So for example, we have had days where we have had 400
trucks get to the crossing, but then there is nothing effective
on the receiving end to pick them up and take them out and
about in Gaza. Or there is, but then something gets bogged down
because there is a deconfliction problem, and trucks get stuck
at checkpoints. That is one piece.
The other piece, very quickly, is this: it is not just as
central as it is the food, it is the water system, it is
sanitation, it is medical supplies. We have gotten repairs done
to now two of the three major pipelines that go from Israel
into Gaza.
Now, the second challenge was the distribution network
inside of Gaza had been heavily damaged, so we needed to get
that repaired. And up until recently a number of dual-use items
that were necessary to do that the Israelis were holding back
on, because it turned out that in the past pipes, chlorine that
you need for both of these things, had been misused and turned
into tunnels or turned into weapons. But now we have agreements
on those items going in so that the repairs can be made to the
distribution network inside of Gaza.
Senator Schatz. I think the challenge for us is that, you
know, look, you are right, all these trucks sort of crossing a
border and ending up at a--in a base yard somewhere not to be
distributed to actual people is missing the point, and we need
a logistics chain as if we are coming in for a natural or man-
made disaster.
The challenge is that recognizing those logistical
challenges, and recognizing how hard this is to deconflict, and
then just to have basic sort of humanitarian infrastructure,
can be used as an excuse to sort of throttle the inputs and
say, look, we would be doing this but these guys can't even get
it to the people. And so I think that we have to be careful
about how we characterize these problems, very real issues.
I know that the Secretary of Defense had a spokesperson
today saying a lot of this stuff is not even--even when it
crosses doesn't get in to the humans. But I also think that we
shouldn't use that as an--or allow anyone to use it as an
excuse to throttle the throughput at the borders or any of the
crossings.
Secretary Blinken. Right, exactly. Thank you.
Senator Schatz. Thank you Chairman. Thank you Secretary.
Senator Coons. Thank you, Mr. Secretary. If you don't mind,
I am going to ask two or three more questions. I don't know if
any of the other remaining members have any additional
questions they would like to ask before we conclude.
In terms of economic statecraft, the PRC is the world's
largest creditor just by raw volume, and has grown its
influence through the Belt and Road, and lots of other ways of
giving loans, but often behind a very opaque and needlessly
coercive set of terms.
It is increasingly important we work with like-minded
governments to create alternatives. And last week this
Committee held a hearing with DFC, EXIM, and MCC, and I just
welcome your thoughts on what more we could be doing to
strengthen our efforts to provide alternatives to PRC lending,
and the work we are doing together, and the whole-of-government
is doing together. I will soon go to the Philippines in part to
talk about the Luzon Corridor.
Secretary Blinken. Right.
Senator Coons. And Chair Murray recently led a trip to
Angola where we were largely looking at the Lobito Corridor;
what more could we be doing?
Secretary Blinken. So I think, Senator, what you are
putting the spotlight on, Senator Murray is putting the
spotlight on, are extraordinarily positive examples of what we
can do when we effectively marshal our resources, both the
resources of the U.S. Government, so that everyone is rowing
together in the same direction, notably DFC along with USAID,
along with the State Department, along with Commerce, Treasury,
you name it.
Also, our ability to catalyze private-sector investment
because as we were discussing earlier, that really is, for us,
the comparative advantage that we bring to the table. But
government is critical in particularly challenging investment
environments to be able to do things to secure investments in
ways that bring the private sector in, and then to also do this
in a way where we are working with allies and partners so that
we can take advantage of their own investments and focus.
So the President put together PGI at a G7 Meeting at the
beginning of the administration, where we are mobilizing
together resources with G7 Partners to direct them at specific
investment opportunities.
Similarly, we have this Mineral Securities Partnership,
where we now have 14 countries that are prepared to make
coordinated investments in developing critical minerals, rare
earths, and to match them up with countries that have these
things, and to do that in a coordinated way where we get a much
bigger impact because we are managing to get other governments,
other countries working with us.
I think Luzon is a really good example of what we are
doing, in this case mostly bilaterally with the Philippines,
where it is the first PGI project in the Indo-Pacific. We have
Subic Bay, we have Clark, we have Manila, we have Batangas,
these are economic hubs that are all being joined with an
effective infrastructure corridor, a rail, port modernization,
agribusiness, semiconductor supply chains, and then the
project, the Lobito Corridor which I saw as well, is truly
extraordinary, where you now have the infrastructure starting
to come in place, linking Angola, Zambia, the DRC, right across
the Continent in ways that are creating tremendous
efficiencies, but that are in the same corridor bringing
together the transportation, primarily rail, the
communications, the agribusiness, all of that coming together
in ways that are benefiting the communities along that
corridor, and that are moving things much more efficiently and
more effectively than ever before when it is fully realized.
So for us, having the tools to start these projects,
obviously the diplomatic resources to go around and about
identify them, bring countries together on them, bring the
private sector in, the tools then to finance, not the full
projects, but for example the feasibility studies, delivering
government capacity to the host governments to be able to
manage them on their side. All of these things are critical to
their actual realization. And that is where things like our own
budget, DFC; is essential.
Senator Coons. Thank you. You have been doing this work a
lot longer than I have, but one of the things I have noticed
in, I guess, 14 years now of going and visiting posts and
asking Foreign Service officers about their work-life balance,
their experience, their career.
Knowledge transfer, it is completely understandable that
there is a structure whereby partly because of needing to move
on to the next post, partly because of family, and school
schedules, often someone will be at a post 2 or even 3 years,
build a lot of relationships, connections, and have the best of
intentions to write a very long and detailed memo, and leave
behind all sorts of numbers, and pictures, but they end up
leaving.
And then their successor at post arrives weeks later and
there is not a warm handoff, and particularly in cultures where
personal relationships matter, and saying the sorts of things
that you might not want to write down about; you can really
trust this person, you really can't trust that person.
I would just be interested in what you think we might be
able to do together to provide more resources and strengthen
the ability within the Department for there to be engagement
from the departing officer to the incoming officer.
I would think in the age of Zoom, and social media
platforms, and iPhones, it would be easier than it may have
been in decades past, but as we are about to take up the State
Authorization Bill I wondered what your thoughts were on this
topic generally and what we might be able to do.
Secretary Blinken. Yes. Look, it is a great point and one
of the things that we hate to see is reinventing the wheel,
because someone has been at something for a while, they leave,
the knowledge doesn't get shared effectively, and then someone
has to pick up from where they started. So we do try to correct
for that, and so for example we want to--we try to make sure
that in a given Embassy if someone from one unit is leaving, it
is staggered with other people in that unit so that, to the
extent we actually have all those resources, which is another
question, that there is some continuity.
And that if there is not overlap between the incoming and
the outgoing, that at least the outgoing has shared a lot of
that with other folks, or maybe his or her boss, in ways that
get passed on as effectively as possible to whoever is coming
in.
But you raised a really interesting question which I think
we should look at about whether there is more we can or should
do, to have some kind of more sustained connections between
someone who has left, and has built up tremendous expertise,
and maybe somewhere else, but whose knowledge is still
essential to whoever is coming in. And that is, I want to go
back and look at that, because it is an interesting idea.
Senator Coons. I think it would help both with the
effectiveness of the incoming officer in terms of how quickly
they get up to speed, but also improve work satisfaction,
career satisfaction for the outgoing because you spent years
building these relationships.
Secretary Blinken. Yes.
Senator Coons. And then to feel like you now have to go on,
and maybe it is because I visit more posts in Africa than
anywhere else, and they tend to be understaffed they tend to be
stretched a little thin.
Secretary Blinken. Yes. And this is another challenge that
we are facing which is understaffing. And by the way it is it
is interesting, it is not just in Africa we have the critical
midlevel positions including, for example, in our European
Affairs Bureau that are open and understaffed. We have had two
of the largest incoming classes of Foreign Service officers in
a decade, which is very gratifying, but it takes a while for
people to work their way through to a point where they are
taking on these very important positions, and we do have real
gaps that we are trying to rectify.
And now we have got new authorities also to bring in people
mid-career that has helped. But ultimately we have to have a
Department that not only continues to attract the talent but
that retains it and supports it as it goes up the ladder in
these jobs.
Senator Coons. That is something I am passionate about
supporting you and helping you achieve. Last question, promise;
the Global Fragility Act, we have talked about it a number of
times. It was signed into law back in 2019. I have talked to
the Secretary of Defense about it, earlier today I talked to
the Secretary of the Army, and Chief of Staff about it, you
know, bluntly it is a lack of involvement by the Department of
Defense that concerns me most.
The State Department has the lead, AID has been a good
partner, there is a number of identified countries for
implementation that I think are outside the mandate of the Act,
but at the very least Papua New Guinea, Mozambique, Coastal
West Africa, strike me as great examples of where we should be
able to demonstrate a strategy that is State-led, AID partner,
DOD partner, with a common agenda, common priority to prevent
fragile States from becoming failed States.
I just would be interested in how you see the State
Department's efforts in ensuring we actually can move ahead
with meaningful implementation.
Secretary Blinken. Yes. Look, I have got to tell you, I
think the importance of the Act, and actually implementing it
effectively, has only been reinforced by what we have seen in
the Sahel, which is the countries of course are not part of the
Act, but countries adjacent to the Sahel, the ones you have--in
some cases the ones you have cited are, and it just reinforces
the fact that whatever we are doing in terms of security
assistance to countries, that may be necessary but it is
certainly not sufficient in allowing these countries, not only
to remain stable but actually to move forward.
And in the absence of that, then you are likely to see what
we have seen in the Sahel, which is coup after coup. And at the
same time when these coups happen, and our military which may
have been helping deal with violent extremism and terrorism
leave, we know what comes in typically afterward, including,
for example, Russian proxy forces make things worse, not
better. And so countries find out the hard way that this is not
a good development. But I think it just places an emphasis on
trying to make this work and work effectively.
We are reviewing, on a yearly basis, how this is working,
we are assessing the different commitments that that partners
have made to it, the availability of resources the actual
status of the program so that we are in real time, judging
whether is it--are we actually doing this, is it being
implemented, or not effectively, is it, even though these are
of course 10-year programs, are we starting to see, you know,
movement and progress, and will be sharing our own thoughts on
that.
I think it has helped us leverage multi-donor mechanisms,
to some extent. We need to do more of that. I think it has
helped us start at least to more effectively align assistance
across the government, which was one of the big intents, but it
is not yet where it needs to be in terms of implementation.
So here again, given your leadership on this, this is
something we should really work on, and I think the Sahel has
just reinforced the importance of it.
Senator Coons. My core concern is that DOD doesn't really
focus or respond until there is a profound security crisis, and
then when they do they tend to respond massively, and Coastal
West Africa, their national leadership has been here
repeatedly, some of our leaders have been there, and they are
calling, and calling, and calling for more significant
partnership. And I think if we fail to deliver on that we will
be disappointed at the choices they may make.
Secretary Blinken. Yes.
Senator Coons. I am, in closing, grateful that we are
hosting President Ruto this week for what I think is an
important State Visit. You, and the Vice President, obviously
the President, and many other cabinet officials, some
Congressional leaders, I think it is important for us to
highlight the centrality of partners that are democracies that
share both economic, and public health, and climate, and
security goals. So thank you for everything.
Secretary Blinken. Thanks, Mr. Chairman.
Senator Coons. Mr. Secretary thank you for what has been a
very full day for you, of testimony before two committees. I
appreciate your service.
[The information referred to follows:]
Prepared Statement of Cardell K. Richardson, Sr., Inspector General
Chairman Coons, Ranking Member Graham, and distinguished Members of
the Subcommittee, thank you for the opportunity to provide testimony
today for this hearing on the U.S. Department of State's fiscal year
2025 budget request.
I was confirmed by the Senate on May 2, 2024, as the Inspector
General of the Department of State (Department or State) and the U.S.
Agency for Global Media (USAGM). This is my first congressional
testimony in that capacity. I am delighted to join the State Office of
Inspector General (OIG) team, which has done a remarkable job remaining
focused on its important oversight mission despite the absence of a
Senate-confirmed inspector general for approximately 4 years. I look
forward to leveraging my decades of public service experience-- most
recently as inspector general of the National Geospatial-Intelligence
Agency--to lead State OIG and ensure that it remains an independent,
objective organization that provides robust oversight, transparency,
and accountability to the programs and operations of the agencies it
oversees.
OIG inspects embassies and diplomatic posts throughout the world to
determine whether policy goals are being achieved and whether the
interests of the United States are being represented and advanced
effectively. OIG performs specialized security inspections and audits
in support of the Department's mission to provide effective protection
to our personnel, facilities, and sensitive information. OIG also
audits Department operations and activities to ensure that they are as
effective and efficient as possible. Finally, OIG investigates
instances of fraud, waste, and mismanagement that may constitute either
criminal wrongdoing or violations of Department regulations. In short,
OIG plays a crucial role in overseeing the funds Congress appropriates
to the Department for its many programs and activities and we believe
that our work can play an important role in assisting Subcommittee
Members with funding decisions.
OIG concentrates a substantial portion of its oversight on the
sustained major management and performance challenges confronting the
Department. Beyond this important work, a growing element of our
mission involves oversight of U.S. responses to global emergencies and
emerging risks. Often these take the form of complex crises and
contingency operations that have triggered whole-of-government
responses. In recent years, for example, OIG has surged to provide
oversight of the U.S. withdrawal from Afghanistan, including the
evacuation of Embassy Kabul, and worked closely with oversight
counterparts to ensure comprehensive oversight of the more than $174
billion in supplemental funding that has been appropriated in response
to the war in Ukraine. We are also directing oversight toward the
Department's response to risks emerging from conflicts in the Middle
East, strategic competition with the People's Republic of China, and
responses to unauthorized migration and transnational crime arising
from countries in the Western Hemisphere.
In this testimony, I will discuss the nature and scope of our
oversight mission, major management challenges confronting the
Department, and our work to drive improvements reflected in various
projects related to Ukraine and other high priority countries. I will
conclude by reflecting on our financial standing and OIG's ability to
deliver on our mandate from a resource and staffing perspective.
mission and results
OIG's mandate covers both Department and USAGM programs and
operations, which include more than 80,000 employees and more than 270
overseas missions and domestic entities. We also oversee the U.S.
Section of the International Boundary and Water Commission, a Federal
agency that operates under the foreign policy guidance of the
Department. In terms of dollars, we are responsible for the oversight
of more than $87 billion in Department, USAGM, and foreign assistance
resources.
In pursuit of this mission, OIG provides valuable return on
investment through its audits, evaluations, inspections, and
investigations. For example, in FY 2023, OIG identified approximately
$245 million in questioned costs and taxpayer funds that could be put
to better use, and OIG's criminal, civil, and administrative
investigations produced an additional $13.8 million in monetary results
(including fines, restitution, and recoveries).
Our work consistently results in findings and recommendations that
significantly improve the programs and activities we oversee--including
improvements that are not easily quantifiable, such as our work related
to safety and security. Our recommendations frequently address
inadequate compliance with emergency planning standards and facility
safety and security deficiencies. By helping the Department improve its
security, OIG's work safeguards the lives of the thousands of people
who work in or visit U.S. posts abroad and at home.
Further, our investigative work consistently holds employees,
contractors, and grantees accountable. In FY 2023, OIG obtained 7
indictments, 5 informations \1\, and 17 convictions. In one recent
case, our investigative work led to a 10-year prison sentence for a
construction company president who was found to have fraudulently
obtained more than 25 government contracts worth more than $125
million.
major management and performance challenges
OIG focuses substantial resources on oversight projects that
address the Department's major management and performance challenges.
For FY 2024, we assessed those challenges to be primarily threefold:
safety and security, stewardship, and staffing.
Safety and Security
Safeguarding people, facilities, property, and information is a
continual challenge for the Department. Physical security and safety
deficiencies at diplomatic facilities combine to form one aspect of
this challenge. Some of our findings from a recent inspection of
Embassy Lilongwe, Malawi, illustrate the issue well.\2\ We found that
approximately 93 percent of the Embassy's non-residential properties
were not properly certified to ensure that safety, health, and
environmental hazards were mitigated. We also found the Embassy's fire
protection program did not fully comply with Department standards, and
that 67 percent of its outstanding fire and life safety recommendations
(issued by the Department's Bureau of Overseas Buildings Operations)
remained unaddressed. These failures to comply increase the risk of
injury and loss of life for Department personnel at this post.
We also conducted an audit related to the Department's
implementation of physical security standards for temporary
structures--such as containerized housing units, hardened alternative
trailers, and shipping containers--that serve as residential or
functional space at overseas posts when permanent structures for these
purposes are unavailable. We found that the Department could not
provide an accurate or complete inventory of temporary structures at
the posts we audited. Moreover, we identified some temporary structures
that did not comply with the Department's physical security standards
and did not have required waivers or exceptions to those standards,
which gives the Department limited assurance that physical security
mitigation actions have been taken to address security and life safety
concerns.\3\ We also found that overseas posts were generally not
complying with Department guidance regarding the use of shipping
containers.
Another health and safety risk our work often highlights relates to
emergency action planning. We continue to find that the Department
struggles to meet its own standards and inspections of posts often find
failures to implement emergency exit plans in non-residential
facilities, regularly conduct drills, and stay current with consular
crisis preparedness activities.\4\
In addition to the security of people and property, we often focus
on information security, and our oversight of the Department's IT
security program continues to identify numerous control weaknesses. The
FY 2023 Federal Information Security Modernization Act (FISMA) audit
concluded again that the Department did not have a fully implemented
information security program based on evidence of security weaknesses
identified in eight of nine domains, including risk management,
configuration management, identity and access management, and security
training. The information security standards that form the criteria for
this audit represent foundational guidelines for managing and reducing
cyber risk by protecting networks and data. The Department's persistent
inability to comply with those standards creates significant risk.\5\
Stewardship
Efficiently and effectively managing its significant resources is
another longstanding challenge for the Department. OIG's work
demonstrates that the Department could enhance its stewardship of
taxpayer resources by improving its ability to identify and address
weaknesses in financial and property management and oversight of its
contractors and other implementers of its worldwide programs.
Weaknesses in property and equipment management were initially
reported during the audit of the Department's FY 2005 financial
statements and have persisted since then. In FY 2023, the Department's
internal control structure continued to exhibit several deficiencies
that negatively affected the Department's ability to account for real
and personal property in a complete, accurate, and timely manner. An
independent contractor concluded that the combination of property-
related control deficiencies was a significant deficiency. The
individual deficiencies identified were related to overseas real
property, construction projects, leases, personal property, software,
and heritage assets. The audit also identified internal control
deficiencies related to unliquidated obligations and financial
reporting.\6\
Regarding Department oversight of its contractors and other
implementers, we conducted an audit to determine whether selected
recipients of cooperative agreement funds supporting refugee
resettlement support centers--overseas centers that assist in the
processing of refugee applications--adhered to applicable Federal
requirements. We looked specifically at three centers with offices in
Bangkok, Thailand; Kuala Lumpur, Malaysia; Istanbul, Turkey; and
Nairobi, Kenya. We found that the recipients audited did not always
comply with requirements, due in part to insufficient oversight by the
Department's Bureau of Population, Refugees, and Migration, which could
result in inconsistent refugee application information being processed.
In addition, refugees can wait years for the adjudication process to be
completed, and inconsistent refugee application information could delay
the already lengthy process. Additionally, selected award recipients
did not always spend funds in accordance with Federal requirements and
award terms and conditions, which led to questioned costs.\7\
In another audit, we sought to determine whether the Department's
contract administration of the new Embassy compound in Mexico City was
in accordance with Federal regulations and Department guidance.
Regarding contract modifications processes, we found the project
director did not assess the impact that such modifications would have
on the overall project timeline. Moreover, the Department did not
always perform required activities to determine fair and reasonable
pricing, and the contracting officer did not always obtain required
contractor release statements to avoid exposing the Department to
increased financial risk. As a result of these deficiencies, the
Department executed contract modifications without full awareness of
potential consequences to the construction project timeline and
associated project costs.\8\
Staffing
The Department expends substantial resources on recruiting,
training, and retaining a diverse, talented workforce that can advance
the Department's foreign policy mission and priorities. Nonetheless,
our work suggests managing its human capital and designing and
maintaining an organizational structure that conveys clear lines of
authority is a continuing challenge for the Department.
The kinds of workforce or human capital management issues that
OIG's work identifies varies widely, but it tends to include staffing
gaps, frequent turnover, and inexperienced and undertrained staff. Our
work also often highlights structural issues that confuse staff, lead
to gaps or overlap in authority, and ultimately weaken accountability.
Examples are found in our audit of the management and
administration of the Consular Systems Modernization program, which was
conceived to modernize and consolidate approximately 90 discrete
consular legacy IT systems into a common technology framework for the
Bureau of Consular Affairs. Deficiencies in managing this program are
highly problematic because the program is expensive and has broad
implications for the bureau's ability to meet its mission, which, among
other important duties, includes issuing passports, visa, and other
documents to citizens and foreign nationals to facilitate travel to and
from the United States. We found that bureau leadership did not ensure
that the program was properly designed to meet its goals. Furthermore,
insufficient management oversight from key Department bureaus
contributed to problems with the program.
Among other factors, we found that unqualified project managers
contributed to the deficiencies we identified with the program. Of the
seven project managers appointed to projects within the Consular
Systems Modernization program, we found that none could provide a
record of having taken the required training, none could provide a
record of having met the annual continuing professional education
requirement, and three stated that they did not believe they had
received sufficient training to successfully execute the
responsibilities of their respective positions. Moreover, we found that
bureau leadership did not consider the experience of personnel before
assigning them to project management positions.\9\
response to crises and emerging risks
Ukraine Response Oversight
Given the scale, scope, and stakes of the U.S. government's Ukraine
response, related oversight remains State OIG's top priority. We, along
with the Department of Defense (DoD) and U.S. Agency for International
Development (USAID) OIGs, and other U.S. government oversight
organizations, have adopted a collaborative approach to ensure that our
oversight of the U.S. government's response to Russia's war against
Ukraine is comprehensive, relevant, timely, and transparent, and
preemptively identifies and mitigates gaps in coverage or duplication
of effort.
Over the past few years, about one-third of State OIG's workforce,
including some State OIG staff located at Embassy Kyiv, has been
contributing to the Ukraine response oversight mission on a full- or
part-time basis. Congress has provided us with $21.5 million in
dedicated funding to support this effort. We are grateful for this
essential support, which we have applied toward a body of work that
currently focuses on four leading risk areas for the Department:
--Strategy and Coordination.--Since an effort of the scale and
complexity of the Ukraine response can only be successful with
a clear strategy and effective coordination, this has been a
major emphasis in our work. In 2022, we shared oversight
observations to inform the Department's Ukraine response,
drawing on our past work to flag the strategic challenges it
was likely to encounter as well as highlighting effective
responses to the same types of challenges that had been
successfully applied elsewhere in the past.\10\ Last summer, we
issued a report detailing the Department's efforts to establish
a strategy to guide foreign assistance programs and coordinate
these efforts across the U.S. government.\11\ Working with
USAID OIG, we also reviewed the execution of roles and
responsibilities for providing direct financial support to the
government of Ukraine.\12\ In addition, we have begun a joint
audit with DoD OIG on Foreign Military Financing funding
provided in response to the invasion of Ukraine. Because the
response to Russia's war against Ukraine is not limited to the
U.S. government, we have also examined the Department's
coordination and engagement with pertinent multilateral
institutions like the North Atlantic Treaty Organization,
European Union, the Organization for Security and Cooperation
in Europe, as well as several United Nations agencies.\13\
--Establishing Effective Operations.--Managing, coordinating, and
supporting a robust response effort in Ukraine requires strong
core systems and support. Accordingly, OIG examined a range of
key questions related to Embassy Kyiv operations, including
those relating to security, staffing, facilities, equipment,
and emergency planning.\14\ We have also inspected other
diplomatic posts in the region that provide support to Embassy
Kyiv and that play a key role in the wider Ukraine response
effort, and we have plans for more work in this vein in the
months ahead.\15\
--Monitoring and Evaluation.--Given the nationwide reach of the
conflict, U.S. government personnel in Ukraine are subject to
constraints on movement; conditions accentuated by the lack of
U.S. military logistical support, which has been provided in
other conflict settings. The quality and extent of monitoring
and evaluation for Department-funded programs and activities is
key in this context. In response, we reviewed the Department's
end-use monitoring activities in Ukraine,\16\ and audited the
Bureau of International Security and Nonproliferation's
monitoring plans and practices.\17\ In addition, we are
completing an audit that covers the Department's monitoring and
evaluation related to humanitarian assistance programming in
and around Ukraine as well as an ongoing review of Department
efforts to counter illicit diversion of advanced conventional
weapons in Eastern Europe.\18\
--Anti-Corruption and Counter-Fraud.--Anti-corruption reforms in
Ukraine and wider efforts to counter fraud are key to the
success of U.S. assistance in Ukraine. As a result, OIG is
currently conducting an audit of Department anti-corruption
programming and activities in Central and Eastern Europe,
including Ukraine. In addition, OIG maintains a dedicated
Ukrainian- and Russian-language hotline to receive and process
allegations of fraud, waste, abuse, and mismanagement affecting
Department programs and activities in Ukraine. This hotline is
an important source of information that has not only triggered
investigative activities but has also formed the basis for
audit work to respond to risks and vulnerabilities impacting
the Department's Ukraine response. Finally, by establishing
memoranda of understanding with anti-corruption authorities in
Ukraine, we have set a framework that allows us to share
information necessary to advance cases of mutual interest with
a connection to U.S.-provided resources.
Our intensive focus on Ukraine has yielded a rapidly expanding body
of work. We have issued 24 reports with 106 recommendations to improve
critical aspects of the Ukraine response. We also have 17 ongoing and
planned projects, and the list of our planned Ukraine-related work
continues to grow. Our recommendations have triggered some important
Department action. For example, because of our work, the Department
completed the strategic framework needed to guide U.S. government
assistance activities in Ukraine and evaluated the effectiveness of the
alternative end-use monitoring practices it has been using in place of
in-person monitoring in Ukraine.
Other Oversight Priorities and Emerging Risks
For the past 2\1/2\ years, State OIG has devoted substantial time
and resources to oversight of the 2021 suspension of U.S. Embassy
operations in Afghanistan and its aftermath. Following the U.S.
withdrawal from Afghanistan, State OIG developed and executed an
extensive workplan to provide needed oversight coverage of the
Department's role in supporting Afghan evacuees and re-establishing a
diplomatic mission outside of Afghanistan. In October 2021, State OIG
also coordinated with the Department of Homeland Security OIG and
Department of Defense OIG to establish an interagency OIG Afghanistan
Project Coordination Group to coordinate and facilitate oversight of
Operation Allies Welcome, deconflict when one OIG's review overlapped
with another's responsibility, and promote comprehensive coverage of
issues relating to the screening, vetting, and relocation of Afghan
evacuees.
To date, State OIG's Afghanistan response oversight efforts have
resulted in the publication of 22 oversight products that have
addressed topics that range from the Afghan special immigrant visa
program and resettlement efforts to Embassy evacuation efforts and
current diplomatic operations. Included in this number are several
joint quarterly reports with a focus on Operation Enduring Sentinel,
the continuing counter-terrorism effort relating to Afghanistan. Our
oversight work in this area has led to changes in the Department's
guidance for future evacuations and yielded improvements in the
Department's handling of visas for Afghans at risk who worked in
support of U.S. military, diplomacy, and development efforts.
While OIG's Afghanistan-related oversight work continues,\19\ we
are also pivoting to meet emerging oversight requirements in other key
areas:
--Israel and Gaza.--Challenges to U.S. Middle East policy have
multiplied since October 7, 2023. OIG is planning audit and
inspection work to provide oversight of Department programs and
operations in the region and has recently launched an audit of
Department efforts to counter Iran-backed groups.
--People's Republic of China.--Last year, OIG completed an inspection
of the American Institute in Taiwan \20\ and has plans for more
oversight projects examining the Department's response to
China's influence. We are also taking steps to establish an OIG
office in Bangkok, Thailand, reflecting our increasing focus on
work in the region.
--Western Hemisphere Concerns.--OIG is developing plans for several
inspections and audits of Department operations and programs
related to migration in the Western Hemisphere, counter-
narcotics, and security at the southern border.
Against the backdrop of ongoing work to meet mandates and drive
measures that will improve the Department's ability to address major
management challenges, OIG will continue to assiduously work to address
emerging areas of risk with available resources.
resources
We greatly appreciate the Subcommittee's ongoing support of our
work and are grateful for the much-needed FY 2024 increase in our base
appropriation and the substantial supplemental funding over the past 2
years. Our FY 2025 request is nearly $108 million, which will allow us
to keep pace with training and travel costs, pursue upgrades to support
our IT network's resilience against cybersecurity attacks, and maintain
a staff presence in Embassy Kyiv.
However, the most pressing challenge we face are the restrictions
related to selection and appointment requirements, which add months to
the onboarding process for new hires. In the context of our efforts to
meet emerging oversight demands, these restrictions not only delay our
ability to meet staffing requirements, but also make it difficult to
effectively utilize our supplemental funding. To address this challenge
and meet the long-term and critical hiring requirements associated with
Ukraine-related oversight, we would like to secure selection and
appointment flexibilities consistent with direct hire authority.
A second resource concern for us is the escalating costs associated
with maintaining the security of our IT systems. OIG established an
independent IT system in 2017 to create a firewall between the
Department and our oversight information. This risk-mitigation effort
has proven costly to continue to execute and we are currently studying
potential options to address these costs. However, it is foreseeable
that we will be requesting additional resources related to IT security
in coming months.
conclusion
I am incredibly proud of the work of my State OIG colleagues and
the value we provide to the Department, USAGM, Congress, and taxpayers.
Team State OIG includes talented, committed professionals dedicated to
helping the Department and USAGM successfully accomplish their
respective missions through robust oversight and well-designed,
practical recommendations. I thank my team for their resilience,
ingenuity, integrity, and tenacity in promoting efficiency and
effectiveness in Department programs and operations.
I also want to conclude by thanking Chairman Coons, Ranking Member
Graham, and distinguished Members of the Subcommittee for your support
of State OIG's mission. I take seriously my statutory requirement to
keep Congress fully and currently informed, and I appreciate your
enduring interest in our work.
---------------------------------------------------------------------------
\1\ Per Black's Law Dictionary 772 (6th ed. 1990), an information
is an accusation exhibited against a person for some criminal offense,
without an indictment.
\2\ OIG, Inspection of Embassy Lilongwe, Malawi (ISP-I-24-15, March
2024).
\3\ OIG, Audit of Physical Security Standards for Department of
State Temporary Structures at Selected Overseas Posts (AUD-SI-23-30,
September 2023).
\4\ See e.g., OIG, Inspection of Embassy Cotonou, Benin (ISP-I-23-
20, July 2023).
\5\ OIG, Audit of the Department of State FY 2023 Information
Security Program (AUD-IT-23-31, September 2023).
\6\ OIG, Independent Auditor's Report on the U.S. Department of
State FY 2023 and FY 2022 Financial Statements (AUD-FM-24-07, November
2023).
\7\ OIG, Audit of Selected Cooperative Agreements Supporting
Department of State Refugee Resettlement Support Centers (AUD-SI-23-28,
September 2023).
\8\ OIG, Audit of Select Contract Administration Processes Related
to the Construction of New Embassy Compound Mexico City, Mexico (AUD-
CGI-24-09, January 2024).
\9\ OIG, Management and Administration of the Consular Systems
Modernization Program (AUD-CGI-23-20, July 2023).
\10\ OIG, Information Brief: Oversight Observations to Inform the
Department of State Ukraine Response (OIG-23-01, December 2022).
\11\ OIG, Review of Ukraine Foreign Assistance Coordination and
Oversight (ISP-I-23-18, July 2023).
\12\ In January and March 2023, State and USAID OIG jointly
reported to congressional oversight committees on the required
monitoring mechanisms and safeguards that the Department and USAID OIG
had put in place surrounding direct financial support to the Ukrainian
government.
\13\ See for example: OIG, Inspection of the U.S. Mission to the
North Atlantic Treaty Organization (ISP-I-23-16, May 2023); OIG,
Inspection of the U.S. Mission to the European Union (ISP-I-23-15,
April 2023); OIG, Inspection of the U.S. Mission to the Organization
for Security and Cooperation in Europe (ISP-I-24-05, January 2024); and
OIG, Inspection of the U.S. Mission to International Organizations in
Vienna, Austria (ISP-I-24-04, December 2023).
\14\ See e.g., OIG, Audit of Technical Security Following
Reestablishment of Operations at U.S. Embassy Kyiv, Ukraine (AUD-MERO-
23-24, August 2023) and OIG, Review of Embassy Kyiv's Operating Status
(ISP-S-24-01, October 2023).
\15\ See e.g., OIG Classified Inspection of Embassy Warsaw and
Constituent Post, Poland (ISP-S-24-18, April 2024) and OIG, Inspection
of Embassy Chisinau, Moldova (ISP-I-23-19, July 2023).
\16\ OIG, Review of Department of State End-Use Monitoring in
Ukraine (ISP-I-24-02, November 2023).
\17\ OIG, Audit of the Bureau of International Security and
Nonproliferation Administration of Assistance to Ukraine (AUD-GEER-24-
14, March 2024).
\18\ OIG, Ongoing Work for Office of Audits, Evaluations and
Special Projects, Office of Inspections, and Office of Overseas
Contingency Operations.
\19\ OIG has seven ongoing and planned Afghanistan-related
oversight projects. information on each project is available on State
OIG's Afghanistan oversight website.
\20\ OIG, Inspection of the American Institute in Taiwan-Taipei and
Kaohsiung (ISP-I-24-07, November 2023).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
ADDITIONAL COMMITTEE QUESTIONS
[The following questions were not asked at the hearing, but
were submitted to the witnesses for response subsequent to the
hearing.]
Questions Submitted to Honorable Anthony Blinken, Secretary of State
Questions Submitted by Senator Brian Schatz
Question. Secretary Blinken has stated that, ideally, an effective
and ``revitalized'' Palestinian Authority will have governance and
security authority for Gaza. Debate over such a ``day after'' plan
continues amongst various Israeli officials. A sustainable ``day
after'' plan will require alignment and support of regional leaders,
yet the extent of the financial or political commitment of other
regional partners is not clear and relatively limited. The absence of a
post-war governance plan leads the risk of default to an Israeli
military occupation of Gaza. a. Does the State Department assess that
it is in Israel's long-term foreign policy and security interests for
Israel to reoccupy Gaza? b. Is it in the foreign policy and security
interests of the United States for Israel to reoccupy Gaza? If not,
what is the State Department doing to ensure that Israel does not
reoccupy Gaza upon the conclusion of major operations? c. What
commitments does the U.S. government have from regional allies and
partners, including Saudi Arabia, that they will tangibly and
substantially support the responsible administration of the Palestinian
territories, the rebuilding of Gaza, and a credible pathway to a
Palestinian state? d. How does the State Department define ``time-
bound'' in reference to a ``concrete, time-bound and irreversible
path'' to a Palestinian state?
Answer. We are committed to advancing enduring peace and security
for Israelis and Palestinians--including through practical, timebound,
and irreversible steps to establish a Palestinian state. To realize
this the Palestinian Authority must continue to improve its governance,
and there should be no Israeli reoccupation of Gaza. Key regional
partners have put forward ideas for Gaza post-conflict governance and
security arrangements. We are engaging on these with an open mind,
sharing our perspective in line with U.S. interests, and seeking areas
of consensus.
Question. Saudi Crown Prince Mohammed bin Salman stated that, ``if
Iran developed a nuclear bomb, [Saudi Arabia] will follow suit as soon
as possible.'' This statement comes as the United States continues
negotiations with Saudi Arabia on the pending peaceful nuclear
cooperation agreement. a. Are you concerned that Saudi Arabia might try
to develop a nuclear weapons program given the crown prince's comments?
b. Would a nuclear-armed Saudi Arabia be in U.S. foreign policy and
security interests? c. To what degree is the State Department,
including through information and assessments provided by the Bureau of
Intelligence and Research, factoring the potential for Saudi Arabia to
develop an illicit nuclear weapons program openly, rather than a
potential attempt at covert development, into its support for a
civilian nuclear agreement?
Answer. The United States has engaged in periodic negotiations with
Saudi Arabia on a peaceful nuclear cooperation agreement since 2012,
and we will continue to seek the strongest achievable nonproliferation
terms in the negotiations. Saudi Arabia is a party to the Nuclear Non-
Proliferation Treaty (NPT) and has a Comprehensive Safeguards Agreement
with the IAEA in force. It is obligated never to acquire nuclear
weapons and to apply IAEA safeguards to all peaceful nuclear
activities. We attach great importance to Saudi Arabia's continued
implementation of these obligations.
Question. UNRWA remains essential for aid distribution in Gaza, and
the instability caused by the conflict and discontinuation of U.S. and
UK funding have endangered UNRWA's ability to operate. UNRWA's future
solvency, ability to sustain operations on the ground in the present
conflict, and obligations to implement recommendations of the Colonna
report are crucial to meeting the needs of Palestinian civilians and
creating the foundation for U.S. interests in the Middle East.
a. How has the discontinuation of U.S. funding to UNRWA impacted
the size of contributions from donor nations that have resumed funding?
Has the United States asked other donor nations to provide more funding
while ours remain paused?
Answer. Other donors have made their own decisions based on their
own assessment of need and their level of confidence in UNRWA. We
coordinate with other donors on assistance operations, including access
challenges and urgent needs for the affected communities in Gaza.
Question. b. What requirements would UNRWA need to meet for the
Department to advocate for the resumption of UNRWA funding? How is the
Department vetting and verifying Israel's accusations of Hamas'
infiltration of UNWRA?
Answer. We will continue to comply with all relevant statutory
restrictions on U.S. funding to UNRWA and support the recommendations
of former French Foreign Minister Colonna's independent review of UNRWA
neutrality mechanisms and procedures. I take the allegations of UNRWA
employee involvement in the October 7 attacks seriously, look forward
to UN investigation results, and fully expect UNRWA to take steps to
fire and prevent hiring staff with ties to Hamas or other terrorist
organizations and support accountability for anyone involved in the
attacks.
Question. c. How would UNRWA's successful implementation of the
Colonna report impact the administration's assessment to recommend
resuming UNRWA funding? Does the Department expect the full
implementation of the Colonna report before the U.S. considers resuming
support for UNRWA, irrespective of how long implementation of Colonna
takes?
Answer. The Department has publicly called for UNRWA's full
implementation of the Colonna Report's 50 recommendations, and we are
aware that UNRWA has developed and is beginning to carry out an
extensive internal action plan responsive to the report. Prior to the
suspension of U.S. funding of UNRWA, we required accountability from
UNRWA on neutrality of its teaching materials, facilities, and staff
behavior, and the Colonna report recommendations reinforce many of
those efforts.
Question. d. Will the United States advocate for sustained UNRWA
funding from Saudi Arabia as a part of an agreement for Israel-Saudi
normalization?
Answer. I cannot comment on the substance of ongoing negotiations
between Saudi Arabia and the United States on normalization. Saudi
Arabia has been one of the largest donors to UNRWA and has contributed
nearly $1 billion to UNRWA this past decade, including $40 million for
Gaza in March.
Question. e. How is the United States working with Israel to ensure
that aid delivered to the Gaza humanitarian pier is successfully
delivered to UN depots for distribution?
Answer. While the use of the pier has now concluded, there was
close coordination between CENTCOM and the Israeli Defense Force's
Coordination of Government Activities in the Territories to
successfully deliver aid shipments via the humanitarian pier to UN
depots. Given how dire the humanitarian situation in Gaza is, the
United States continues to explore all avenues to get more aid to all
in need there. The pier played a key role in advancing that goal.
Question. f. What is the responsibility of the IDF for the secure
delivery of humanitarian aid to UN depots in Gaza?
Answer. There was close coordination between CENTCOM and the
Israeli Defense Force's (IDF) Coordination of Government Activities in
the Territories to enable delivery of aid shipments via the
humanitarian pier to UN depots. The IDF provided security and logistics
support for the operation of the temporary Joint Logistics Over-the-
Shore initiative and participated in the convoy monitoring board under
leadership of a U.S. three-star Army general. The board included
representation from the IDF's Coordination of Government Activities in
the Territories, the UN, and other partners.
Question. The global backlash to the war in Gaza continues to grow.
Shifting sentiment within populations, including in Southeast Asian
countries with large Muslim populations, could negatively impact U.S.
partnerships with countries in the region. a. What is your assessment
of how the war in Gaza is impacting U.S. relationships and strategy in
Asia, especially in Muslim-majority countries like Indonesia--the
world's most populous Muslim-majority country--and Malaysia, where we
are trying to strengthen our ties?
Answer. The crisis in Gaza is impacting relations with Muslim-
majority nations in Southeast Asia. While most criticism has been
directed at Israel, there has been an effect on U.S. interests,
including protests at our embassies, boycotts, and a decline in
regional favorable public opinion of the United States. On a policy
level, the United States and our partners in the region share goals for
a ceasefire, release of all hostages, and a durable peace through a
two-state solution. We are engaging Southeast Asian partners
bilaterally and through ASEAN to build support for U.S.-led peace
efforts.
Question. In April 2024, the United States, UK, and Australia
announced the consideration of including Japan into Pillar II of the
AUKUS defense partnership. As one of our closest allies, Japan's
inclusion could assist the joint development of advanced capabilities
necessary to secure a free and open Indo-Pacific. What are the
potential benefits of Japan joining AUKUS Pillar II?
Answer. Collaboration with Japan on individual projects under AUKUS
Pillar II could further the delivery of advanced defense capabilities
to our respective forces in support of peace, security, and stability
in the Indo-Pacific region and around the world. We are examining
multiple factors as we consider collaboration with Japan and other
potential partners, including technological innovation, financing,
industrial strengths, ability to adequately protect sensitive data and
information, and impact on promoting regional peace and stability.
Question. Recent developments at Second Thomas Shoal demonstrate
the need for the United States to fully support the Philippines against
aggressive actions by the People's Republic of China (PRC). While a
vast majority of U.S. foreign military financing is devoted elsewhere,
it is essential for the United States to support its Pacific allies and
partners to help deter problematic PRC actions in the region. a. What
is the State Department's analysis of the defensive capabilities of the
Philippines? Does the Philippines require additional military
capabilities to better deter hostile and threatening PRC actions? b.
What efforts is the State Department, including in conjunction with
other departments and agencies such as the Department of Energy, the
U.S. Agency for International Development and the U.S. Trade and
Development Agency, undertaking to explore the potential for expanding
geothermal power generation in the Philippines given its potential
benefits for national security, U.S. business, and for the climate?
Answer. Modernizing the Philippines' defense capabilities is
crucial to ensuring individual and collective security. We will strive
to invest in enhancing the capability of the armed forces of the
Philippines, including the Philippine Coast Guard, to fulfill their
missions and contribute to regional security. We will also continue to
advance renewable energy deployment, including through the U.S. Trade
and Development Agency Geothermal Power Project to support development
in the Philippines, energy access, and energy security efforts with
interagency partners.
Question. The U.S. government has made some important progress in
addressing unexploded ordnance in the Pacific. However, large amounts
of unexploded, U.S.-dropped, WWII-era bombs exist in numerous Pacific
Island countries, including the Solomon Islands, Papua New Guinea, and
Kiribati and the full extent of the problem is unknown. a. Does the
United States bear some responsibility for helping locate and clear UXO
in the Pacific Islands, including in locations where U.S. WWII-era
bombs still exist? b. How does the State Department plan to address UXO
concerns through its fiscal year (FY) 2025 budget request?
Answer. As was announced at the 2022 and 2023 U.S.-Pacific Island
Forum Leader's Summits, I remain committed to unexploded ordnance (UXO)
WWII war legacy priorities throughout the Pacific. The Department has
UXO programs in Fiji, the Federated States of Micronesia, the Marshall
Islands, Palau, and Solomon Islands and has a UXO program starting in
Papua New Guinea in early 2025. Our FY 2025 budget request for NADR-CWD
funding includes continuing these war legacy UXO priorities in
Cambodia, Laos, Vietnam, and throughout the region.
Question. What efforts is the State Department, including in
conjunction with other departments and agencies such as the Department
of Energy, the U.S. Agency for International Development and the U.S.
Trade and Development Agency, undertaking to explore the potential for
expanding geothermal power generation in Taiwan given its potential
benefits for national security, U.S. business, and for the climate?
What efforts is the State Department, including in conjunction with
other departments and agencies, undertaking to explore the potential
for expanding collaboration and exchange on indigenous issues with
Taiwan, since both the United States and Taiwan have vibrant indigenous
populations and cultures?
Answer. Taiwan has 24 geothermal projects under development, and we
are exploring opportunities for collaboration through expert exchanges
and private sector engagement as Taiwan further develops plans to tap
its geothermal energy potential in support of energy security and
resilience. Through exchange programs on entrepreneurship, the arts,
language, sport, media, and other sectors, we have worked with Taiwan
to leverage its support for its diverse indigenous communities to
preserve and expand its role in the Indo-Pacific region and the
international community.
______
Questions Submitted by Senator Chris Van Hollen
Question. Israel's Compliance with IHL.--Since the October 7th
attacks on Israel by Hamas, Israel's military operation in Gaza has
resulted in hundreds of airstrikes, some of which have been considered
by credible human rights organizations to be violations of
international humanitarian law. According to a report sent to Congress
on May 10, 2024, as required by National Security Memorandum 20,
``Israel has, upon request, shared some information on specific
incidents implicating IHL, some details of its targeting choices, and
some battle damage assessments. Although we have gained insight into
Israel's procedures and rules, we do not have complete information on
how these processes are implemented.'' Does the Department know how
Israel implements its legal obligation to ensure that the expected
civilian harm of a military strike is not excessive relative to its
military value? If so, please provide an explanation.
Answer. The U.S. Government has engaged Israel to further our
understanding of how it integrates international humanitarian law (IHL)
compliance into its combat operations and civilian protection. Israel
has identified processes for ensuring IHL compliance at all levels of
military decisionmaking, including adherence to proportionality. Israel
has published analysis of its legal positions relating to targeting,
civilian harm mitigation, and IHL compliance. Although we have gained
insight into Israel's procedures and rules, we do not have complete
information on how they are implemented.
Question. In making such assessments, does Israel weigh the
expected civilian harm of striking a given target against the value of
hitting that specific target, or in relation to the importance of its
overall operation in Gaza?
Answer. The USG has engaged the Israeli government to further our
understanding of its procedures and mechanisms to integrate
international humanitarian law (IHL) compliance into its approach to
combat operations and civilian protection. Israel identified several
processes for ensuring IHL compliance is embedded at all levels of
military decisionmaking, including adherence to proportionality. Israel
also published written analysis of its legal positions, posted on the
Israel MFA website, relating to targeting, civilian harm mitigation,
and IHL compliance.
Question. If Israel judges that a given strike will not cause
excessive civilian harm relative to its military value, does it
recognize that it still has an obligation to take all feasible
measures, including in the types of weapons it chooses to conduct a
strike, to reduce that harm? If so, has it done so in practice?
Answer. The USG has engaged the Israeli government to further our
understanding of its procedures and mechanisms to integrate
international humanitarian law (IHL) compliance into its approach to
combat operations and civilian protection. Israel identified several
processes for ensuring IHL compliance is embedded at all levels of
military decisionmaking, including adherence to proportionality and
feasible precautions. Israel also published written analysis of its
legal positions, posted on the Israeli MFA website, relating to
targeting, civilian harm mitigation, and IHL compliance.
Question. Has Israel's use of high yield munitions, such as 2,000-
pound bombs, in populated areas comported with established best
practices to reduce civilian harm in this regard?
Answer. The USG has engaged the Israeli government at all levels to
further our understanding of its procedures and mechanisms to integrate
international humanitarian law (IHL) compliance into its approach to
combat operations and civilian protection. During the conflict, we made
clear to Israel that it matters how it conducts operations. We have
paused shipment to Israel of 1,818 2,000-lb bombs out of concern for
their end-use in dense urban settings. Israel has published written
analysis of its legal positions relating to targeting, civilian harm
mitigation, and IHL compliance.
Question. CHIRG Implementation.--The State Department established a
mechanism in September 2023, known as the Civilian Harm Incident
Response Guidance (CHIRG), to track potential cases of civilian harm
incidents committed through the use of US-origin munitions. This
process represents the first formal system for monitoring and
potentially penalizing reported civilian harm involving foreign forces
and U.S.-origin arms. According to a report sent to Congress on May 10,
2024, as required by National Security Memorandum 20, ``85 alleged
incidents of civilian harm involving Israeli military operations in
Gaza have been submitted to the CHIRG for evaluation, and approximately
40 percent of those cases have been closed.'' What criteria are used to
assess whether a foreign government's use of U.S.-furnished or
authorized arms has resulted in civilian harm?
Answer. The CHIRG defines civilian harm as incidents resulting in
deaths or injury of civilians, or significant damage to civilian
objects. When an incident is submitted into the CHIRG, PM and DRL work
jointly, in coordination with our lawyers, regional and functional
bureaus, embassies, DoD and others to gather information on an
incident. These assessments aim to answer two questions: (1) Is it more
likely than not that civilian harm, as outlined by this guidance,
occurred; and (2) Is it more likely than not that U.S.-furnished or
authorized end-items were involved in a reported civilian harm
incident?
Question. What criteria were used to assess the 40% of Civilian
Harm Incident Response Guidance (CHIRG) cases involving Israeli
military operations in Gaza that were closed, as indicated by the NSM-
20 report?
Answer. CHIRG cases are closed when the Department of State
determines an incident does not meet the scope of the guidance. The
CHIRG scope includes incidents where it is more likely than not that a
U.S.-furnished or authorized end-item was involved in an incident of
civilian harm. Cases can also be closed if the source of a report is
deemed not credible based on a variety of considerations, including
past inaccuracy and unreliability, how the source obtained the
information, any known political agenda that might lead to bias, and
inclusion of information that contradicts the initial report.
Question. Did any CHIRG cases involving Israeli military operations
in Gaza from this 40% result in a determination that civilian harm
occurred?
Answer. While we cannot comment on specific incidents, there can be
cases where the Department of State determines that it is more likely
than not that civilian harm occurred, but it does not meet the
threshold that it is more likely than not that a U.S.-furnished or
authorized end-item was involved in the incident. A reported incident
must meet both criteria to progress through the CHIRG.
Question. What is the status of the approximately 60% of the
remaining CHIRG cases involving Israeli military operations in Gaza?
Answer. Pending CHIRG cases are undergoing in-depth incident
analysis and policy implication assessments. Incident analysis includes
robust information gathering to compile and corroborate information on
an incident. Policy implication assessments include an analysis of any
potential violations of legal obligations, IHL/IHRL, end-use
agreements, or other relevant agreements. Once these assessments are
made, the Department creates an action plan outlining steps to respond
to the incident and to mitigate civilian harm in the future.
Question. Israel's Investigations into IHL Violations & Civilian
Harm.--Throughout the war in Gaza since Oct. 7th, credible human rights
and humanitarian organizations such as Human Rights Watch, Amnesty
International, and Oxfam have stated that Israel is violating
international humanitarian law (IHL). According to a report sent to
Congress on May 10, 2024, as require by National Security Memorandum
20, ``Israel has confirmed that it has opened a number of criminal
investigations, which are ongoing, including into allegations related
to deaths and treatment of detainees and allegations of violations of
IHL. The [fact-finding assessment mechanism] FFAM also continues to
examine hundreds of incidents to consider possible misconduct in the
context of ongoing military operations.'' Since being made aware of
these investigations, has the State Department asked Israel for
additional information on the status of these investigations?
Answer. We continue to make clear to the Government of Israel that
we expect them to, not only behave consistent with the law of armed
conflict and to adhere to their own rules of engagement, but to take
all possible precautions to protect civilians. We have engaged the
Government of Israel on its open investigations and urged swift
assessments that ensure accountability for any abuses or violations.
Question. How many cases has Israel opened related to deaths and
treatment of detainees in Gaza and what is the status of these
investigations?
Answer. We have been clear and consistent with Israel that it must
treat all detainees humanely and with dignity and in accordance with
international law, must respect detainees' human rights, and must
ensure accountability for any abuses or violations. We defer to Israel
for the exact number of cases opened and their status; however, Israel
has confirmed that it has opened a number of criminal investigations,
which are ongoing, including into allegations related to deaths and
treatment of detainees and allegations of violations of IHL.
Question. How many cases has Israel opened concerning allegations
of violations of IHL and what is the status of these investigations?
Answer. We continue to make clear to the Government of Israel that
we expect them to not only behave consistent with the law of armed
conflict and to adhere to their own rules of engagement, but to take
all possible precautions to protect civilians. We continue to believe
that Israel needs to do more on this front; however, Israel has
confirmed that it has opened a number of criminal investigations, which
are ongoing, including into allegations related to deaths and treatment
of detainees and allegations of violations of IHL.
Question. Have any of Israel's investigations lead to remedial
action or prosecutions for treatment of detainees, violations of IHL,
or civilian harm since October 7th?
Answer. We have stressed to the Government of Israel that
investigations must proceed swiftly, and if the alleged perpetrators
are determined to be in violation of criminal laws or the IDF's code of
conduct, then they must be held accountable. We understand that a
number of investigations are ongoing.
Question. Use of AI in Gaza.--According to reporting in +972
Magazine and Local Call, the IDF has been using an AI system called
``Lavender'' to develop a kill list of as many as 37,000 Palestinians
in Gaza who allegedly had some connection with Hamas and who were
targeted for assassination. The reports also indicate that the IDF did
not require their personnel to robustly examine why these systems
included certain individuals and targets on the list, essentially
removing humans from the creation and use of targeting lists used in
the IDF's bombing campaign in Gaza. The reports also assert that the
``Lavender'' system was known to make errors in approximately 10% of
cases, making targets of individuals who have a loose or no connection
to extremist groups. According to the reports, a second AI and
automated system called ``Where's Daddy,'' tracked Palestinians on the
Lavender kill list and was designed to target them at home despite the
likelihood that their families would be there. The reports indicate
that, especially for ``low-ranking'' members of Hamas, the IDF dropped
so-called ``dumb bombs'' on their homes so as not to ``waste'' a more
expensive precision guided munition on low value targets. The reporting
indicates that, even for very low value Hamas targets, the acceptable
civilian death toll was 15 to 20 people, including women and children.
This explains, according to the reports, why so many Palestinians in
Gaza have had their entire families wiped out. The reports indicate
that for higher value targets as many as 300 civilian deaths were
authorized. Does the State Department dispute the findings presented in
these reports? If so, please explain in detail which, if any, parts of
the reports are disputed and the basis for such assessment.
Answer. The Department is aware of the reports but cannot speak to
their validity or confirm their sources. The USG position remains
consistent across all Israeli military operations and other activities
in Gaza: Israel's use of AI must be carried out consistent with
applicable international law, including law of armed conflict, and
internationally recognized privacy rights. Military use of AI needs to
be accountable, including during military operations within responsible
human chain of command and control.
Question. Was the State Department aware of the AI and automated
systems described in the reports? If so, does the State Department know
when and how they were used in Gaza?
Answer. The Department is aware of the reports but cannot speak to
their validity or confirm their sources. The IDF has publicly stated
that these AI tools assist analysts with target development and the
analysts must conduct independent reviews to verify identification.
Question. If the reports are accurate, do you consider the
targeting systems described therein and their use in Gaza to violate
any part of international humanitarian law? Please explain your
reasoning.
Answer. The USG position remains consistent across all Israeli
military operations and other activities in Gaza: Israel's use of AI
must be carried out consistent with applicable international law,
including law of armed conflict, and internationally recognized privacy
rights. Military use of AI needs to be accountable, including during
military operations, within responsible human chain of command and
control.
Question. Has the State Department requested additional information
from the IDF concerning these reports? If so, what has been their
response?
Answer. The Department is in regular communication with Israel
regarding the conduct of military operations in Gaza. The IDF has
publicly stated that these AI tools assist analysts with target
development and that the analysts must conduct independent reviews to
verify identification.
Question. Sudan Sanctions.--In December 2023, the State Department
found that ``members of the Rapid Support Forces (RSF) and allied
militias have committed crimes against humanity and ethnic cleansing.''
The Biden administration has also recently increased the number of
sanctions against the RSF. This includes sanctions against Ali Yagoub
Gibril and Osman Mohamed Hamid Mohamed, for leading the RSF war
campaign, as well as Abdelrahim Hamdan Dagalo, who is the brother of
the RSF commander, Mohamed Hamdan Dagalo, known as Hemedti. However,
despite Hemedti's leading role in the RSF's military campaign and the
aforementioned atrocities, the State Department has yet to sanction
him. Why hasn't the administration sanctioned Hemedti to date? Please
provide a detailed explanation.
Answer. We continue to consider additional designations to advance
our strategic goals. At this time, and in the context of ongoing
diplomatic efforts, we have not assessed that imposing such a
designation would advance our policy objectives of achieving a
ceasefire and could undermine planned negotiations. We will update this
assessment, and consider additional actions, based on the belligerents'
actions related to achieving a negotiated solution to the conflict in
Sudan, among other factors.
Question. Pursuant to a letter sent on April 19 from SFRC and HFAC
leadership to President Biden requiring an assessment on Hemedti's
eligibility for Global Magnitsky (GLOMAG) Act sanctions, does the State
Department believe Hemedti is sanctionable under GLOMAG authorities?
Answer. We continue to review and evaluate all sources of
information that identify potentially sanctionable conduct under our
authorities, as well as consider how best to use designations under
Global Magnitsky and other authorities to advance our policy
objectives. Per your letter, we are also assessing how imposing a
sanction under the Global Magnitsky sanctions program would affect
ongoing diplomatic efforts.
______
Questions Submitted by Senator Susan Collins
Question. ICC arrest warrants for Israeli officials: Mr. Secretary,
one of the reasons the Senate has never ratified the Rome Statute that
created the International Criminal Court (ICC) is because we feared it
would inevitably be used for politicized prosecutions of U.S. troops
conducting military operations overseas, which is exactly what
happened. But in April 2021, the Biden administration reversed the
previous Administration's imposition of sanctions against certain ICC
personnel who had initiated a bogus investigation into alleged U.S. war
crimes in Afghanistan. At the time, you said that while you continued
to object to the ICC's efforts to assert jurisdiction over the U.S. and
Israel, you thought those ``cases would be better addressed through
engagement with all stakeholders in the ICC process.'' You also said
you were encouraged that the State parties to the ICC were considering
``a broad range of reforms to help the Court prioritize its resources
and to achieve its core mission of serving as a court of last resort.''
So, it won't surprise you to learn how outraged I am by the
announcement by the ICC that it is pursuing arrest warrants for Israeli
Prime Minister Netanyahu and Israel's defense minister. To accuse the
leaders of Hamas and the leaders of Israel of war crimes together in
the same breath shreds whatever credibility the ICC had left. In light
of the ICC's announcement yesterday, will the Biden administration
consider re-imposing sanctions on ICC officials in response to this
frivolous and outrageous effort, as the United States did in 2020?
Answer. The Administration is deeply concerned about the ICC
Prosecutor's rush to apply for arrest warrants for senior Israeli
officials. However, the Administration opposes any effort to sanction
the ICC, its staff, its judges, or those who support it. Sanctions
impede our ability to effectively support and defend Israel at this
early stage and ahead; undermine our ability to defend U.S. citizens,
including servicemembers; undermine accountability efforts for Ukraine
and Darfur; and alienate and isolate the United States from our
strongest allies.
Question. Fentanyl.--Mr. Secretary, when you appeared before this
Subcommittee last year we had a productive discussion on efforts to
counter fentanyl in which nearly all Members who were present
participated. That conversation was the basis for the enactment of a
new general provision in the FY 2024 Department of State, Foreign
Operations, and Related Programs Appropriations Act entitled Countering
the Flow of Fentanyl and Other Synthetic Drugs and the first-ever
funding directive for such activity--$125 million. Since you last
testified before this Subcommittee, how would you describe your
engagement with the People's Republic of China and Mexico on countering
the flow of fentanyl, other synthetic drugs, and precursor chemicals:
do we have willing partners to stop this scourge?
Answer. We continue to engage at the highest levels with the
Mexican government. Last year, the Mexican government committed to
continue joint efforts to dismantle the fentanyl supply chain and
disempower cartels on both sides of the border. While we believe the
PRC can do more, as a result of U.S. diplomatic engagement, the PRC has
taken steps to curb illicit sales of fentanyl precursor chemicals,
issued a notice to its domestic industry, scheduled over 40 substances,
including three fentanyl precursors, and arrested an individual based
on U.S. law enforcement information.
______
Questions Submitted by Senator Lindsey Graham
Question. Mexico/Vulcan Materials.--What specific actions has the
Department of State taken to deter Mexican President Lopez Obrador from
seizing Vulcan Materials property?
Answer. We are following this dispute closely. We speak regularly
with Mexican officials about our expectation that U.S. companies be
treated fairly and in accordance with trade obligations, which provide
trade and investment certainty in Mexico. While the United State does
not take a position on the merits of an ongoing investment dispute, we
have underscored to Mexican officials that cases like these can
negatively impact Mexico's efforts to attract future investment.
Question. Mexico/Vulcan Materials.--Why is it important to protect
U.S. commercial interest abroad, and what additional steps can the
Department take if President Lopez Obrador expropriates Vulcan's
assets?
Answer. We are always concerned about the fair treatment of our
companies abroad, including in Mexico. Cases like these can undermine
our efforts to create robust and resilient North American supply
chains. The Department of State and our Embassy are aware of this
dispute and are following it closely.
Question. Hong Kong.--Given the arrests of individuals working at
the Hong Kong Economic and Trade Office (HKETO) in London, England and
the Hong Kong Trade Development Council in Berlin, Germany on charges
of espionage, is the Department of State or other appropriate Federal
agency investigating possible acts of espionage by individuals at the
HKETO in Washington, D.C.?
Answer. Consistent with longstanding Executive Branch and
Department of State policies and practices, the Department does not
comment on the existence of such investigations.
Question. Hong Kong.--Have any Chinese officials working at HKETO
in Washington, D.C. been involved in acts of espionage or other
activities that threaten our national security?
Answer. Consistent with longstanding Executive Branch and
Department of State policies and practices, the Department does not
comment on the existence of such investigations.
Question. Hong Kong.--Has the Department of State been briefed by
the appropriate officials in London and Berlin on their respective Hong
Kong espionage cases?
Answer. Consistent with longstanding Executive Branch and
Department of State policies and practices, the Department does not
comment on the existence of such investigations.
Question. Hong Kong.--Why should the HKETO be allowed to continue
to operate in the United States?
Answer. Consistent with provisions in the Hong Kong Policy Act of
1992, the United States has permitted Hong Kong to maintain and operate
three Economic and Trade Offices in Washington, DC; New York; and San
Francisco. We are closely monitoring proposals to change the legal
status of those offices and share concerns about the deteriorating
human rights and rule of law situation in Hong Kong. When considering
any possible changes to the offices' status, we would need to consider
various elements of the U.S. national interest.
Question. Disinformation.--According to press reports, the
Department of State funded the Global Disinformation Index (GDI) that
blacklisted certain conservative media websites for alleged
disinformation and provided the names of such websites to major
advertising companies for defunding. What methodology did GDI use to
determine which entities to include on its ``dynamic exclusion list''?
Answer. The Department is unable to comment on ongoing litigation.
The Global Engagement Center (GEC) is focused on countering foreign
disinformation and propaganda abroad. Some organizations that receive
GEC funding for countering foreign disinformation overseas may also
have their own domestic operations or programs in the United States;
the GEC does not fund those organizations' domestic programs.
Question. Disinformation.--What steps has the Department of State
taken to ensure that no appropriated funds are provided to entities
involved in countering disinformation that violate the First Amendment
rights of U.S. citizens?
Answer. All GEC grants or cooperative agreements incorporate the
following provisions: ``Activities analyzing U.S. persons, whether
located in the United States or abroad, are outside the scope of this
award. Moreover, no activities supported under this scope of work shall
be intentionally targeted toward U.S. audiences, whether in the United
States or abroad. Any such activities may constitute grounds for
termination for cause of this award.'' The GEC also conducts regular
oversight to ensure grant recipients are not using GEC funds to engage
in any activities in the United States.
______
Questions Submitted by Senator John Boozman
Question. Recent reporting has indicated that there has been an
influx of leaks from within the State Department containing classified
information regarding the Israel-Hamas conflict, including material
involving hostage negotiation proposals. Would you agree these leaks
only complicate hostage negotiations and what is the State Department
specifically doing to ensure leaks involving this classified
information stop?
Answer. I have made clear to my team that leaks about sensitive
diplomatic discussions do not advance the interests of the United
States and can make it difficult to engage in the sort of broad
internal consultations that enrich the policymaking process.
Question. Why would President Biden decide to halt the shipment of
weapons to Israel needed to defend itself if support for Israel is
``ironclad?'' Would you agree it sends the wrong message to our
adversaries?
Answer. The President's commitment to Israel's security is
unwavering. Since October 7, the Administration has surged billions of
dollars of security assistance to Israel, passed a historic
supplemental appropriation, and led an unprecedented coalition to
defend against Iranian attacks. To date, we have paused only one
shipment of munitions to Israel consisting of 1,818 2,000-lb bombs per
our concerns regarding their end-use in dense urban settings as we have
seen in other parts of Gaza. No other deliveries of weapons, munitions,
equipment, or other services are paused at this time.
Question. Recent reporting has indicated that undersea fiber-optic
cables in the Pacific Ocean, which carries sensitive commercial and
military data, are at risk of tampering by Chinese companies that
employ repair ships due to these cables relying on these specialized
foreign construction and repair companies. Can you elaborate more on
the risk of this security threat and what the Administration is doing
to ensure these cables are secure from threats?
Answer. The security of commercial undersea cables, an essential
part of the global information and communications technology
infrastructure, is a high priority for the United States. Together with
likeminded partners, such as Australia and Japan, we are supporting
digital infrastructure development across the Pacific, including by
funding the East Micronesia Cable and working with partners on the
Pacific Connect undersea cable system. We continue to encourage the use
of trusted vendors at all points in the cable laying, connection, and
maintenance process.
Question. I've heard from Pacific Island nations one of their top
priorities is building their digital connectivity, but to do so, they
must have the physical infrastructure in place to support it, including
cybersecurity capabilities to complement it. Can you provide an update
on what the Administration has and is doing to bridge this gap, and the
current challenges it's facing to effective implement this?
Answer. The Department, with the interagency, supports programs to
advance meaningful connectivity needed for economic growth. We are
working directly with U.S. industry and more than ten international
partners to connect multiple Pacific Island nations with trusted
undersea cables. That effort is advanced by building capacity of local
governments and industries to absorb technical assistance; enhancing
regulatory environments; promoting cybersecurity through secure cloud
services; and demonstrating the commercial viability of such services
in remote locations.
Question. As you know, Russia's invasion of Ukraine has unleashed
an unprecedented food crisis. Russia's invasion of Ukraine has severely
hurt Ukraine's ability to produce and export grain and other
foodstuffs, which are desperately needed for many low- and middle-
income countries. Putin has exploited and manipulated the through its
own exports, increasing its own agricultural export profits at the
expense of increasing hunger worldwide. Can you elaborate more on the
status of the humanitarian corridor Ukraine formed and what the
Administration is doing to help it remain successful?
Answer. Ukraine has demonstrated ingenuity to increase agricultural
exports through Danube River ports, overland routes, and a Black Sea
corridor created by pushing back Russia's fleet. This corridor has seen
agricultural shipments exceed monthly volumes during the Black Sea
Grain Initiative, supporting Ukraine's economy and global food
security. USAID played a critical role in expanding Danube River ports
and land border crossings and continues to mobilize investments into
Ukraine's agricultural sector. We are also working to make war risk
insurance more affordable and available.
Question. Is the State Department working with other U.S. agencies,
such as the Department of Defense and Department of Commerce, to
develop a comprehensive strategy for ensuring maritime shipping lanes
are more resilient from conflict-related disruptions?
Answer. The U.S. Department of State is working with other Federal
agencies, such as the Departments of Defense, Transportation, and
Homeland Security, to enhance the resilience of maritime shipping lanes
against conflict-related disruptions, including the ongoing disruptions
in the Red Sea. The Department of State closely coordinates with the
interagency to share critical threat-related information with partners
and allies through diplomatic channels and with U.S. maritime
stakeholders through interagency processes including the Maritime
Alerts and Advisories system.
______
Questions Submitted by Senator Bill Hagerty
Question. Since May 2022, U.S.-headquartered Vulcan Materials
Company's operations in Quintana Roo, Mexico, have been harassed and
intimidated by the Mexican government, including a March 2023 military
occupation of the company's property. This is all part of a systematic
effort to rob Vulcan of its legally-held land and deepwater port. It
has now been 17 months since Vulcan was last able to operate its
business in Mexico. During that same time period, Vulcan's property has
twice been illegally occupied by Mexican military and law enforcement
forces. What has the Biden Administration done to deter these types of
actions?
Answer. We are following this dispute closely. We speak regularly
with Mexican officials about our expectation that U.S. companies are
treated fairly and in accordance with trade obligations, which provide
trade and investment certainty in Mexico. In 2018, Vulcan Materials
Company filed an arbitration claim, which is still pending. While the
United States does not take a position on the merits of the ongoing
investment dispute, we have underscored to Mexican officials that cases
like these can negatively impact Mexico's efforts to attract future
investment.
Question. Mexican President Andres Manuel Lopez Obrador has
threatened to imminently expropriate Vulcan's property by turning it
into what he claims will be ``an environmentally protected area'' if
the company does not accept his offer to purchase the property for a
fraction of its fair-market value. If President Lopez Obrador follows
through on his threat to expropriate Vulcan's assets, what will the
Biden Administration's specific response be?
Answer. We are always concerned about the fair treatment of our
companies abroad, including in Mexico. In 2018, Vulcan Materials
Company filed an arbitration claim, which is still pending. The
Department of State does not take a position on the merits of an
ongoing investment dispute.
Question. If President Lopez Obrador follows through on his threat
to expropriate Vulcan's assets, how will this impact the Biden
Administration's review of the United States- Mexico-Canada Agreement
(USMCA)?
Answer. The Administration is preparing carefully for the upcoming
2026 review of the United States-Mexico-Canada Agreement. I refer you
to the Office of the United States Trade Representative for more
details on the 2026 United States-Mexico-Canada Agreement review.
CONCLUSION OF HEARINGS
Senator Coons. And with that the record will stay open one
week for any Member of the Committee who wants to submit a
question for the record.
Otherwise, this hearing is hereby adjourned.
[Whereupon, at 4:14 p.m., Tuesday, May 21, the subcommittee
was recessed, to reconvene subject to the call of the Chair.]
STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR
FISCAL YEAR 2025
----------
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
NONDEPARTMENTAL WITNESSES
[Clerk's note.--The subcommittee was unable to hold
hearings on nondepartmental witnesses. The statements and
letters of those submitting written testimony are as follows:]
Prepared Statement of Alliance for International Exchange
As Executive Director of the Alliance for International Exchange, I
appreciate the opportunity to submit testimony supporting funding of
$808.6 million in Fiscal Year 2025 for educational and cultural
exchange programs administered by the U.S. Department of State's Bureau
of Educational and Cultural Affairs.
The Alliance comprises U.S.-based nongovernmental organizations
representing the international educational and cultural exchange
community in the United States. We greatly appreciate our productive
working relationship with the subcommittee and its strong and
consistent support for exchange programs.
The requested appropriation will allow the Department of State to
maintain, and even slightly expand U.S. funded educational and cultural
exchange programs, a cost-effective public diplomacy tool with unique
capacities to adapt rapidly and effectively to foreign policy and
national security priorities, while building relationships with
strategic audiences in key countries and equipping young Americans with
critical skills. A modest increase in funding would provide more
opportunities for qualified Americans to participate in upskilling
opportunities that help build their career skills and global abilities.
It would further allow U.S. Department of State exchange programs to
keep pace and meet at least a small fraction of unmet demand and allow
the U.S. to engage more rising young leaders at home and abroad. The
requested funding would assist in expanding programming to increase
U.S. foreign policy effectiveness in critical regions, meet significant
American and global demand for current programs, and allow for the
integration of technology to reach those who cannot participate in in-
person exchange.
Due to the greater global challenges the U.S. is currently facing,
it is more important than ever to sustain international people-to-
people exchanges and expand the geographic scope, so that these
programs may reach new audiences and participants and share American
values. The requested funding would allow the Department of State to
provide opportunities for young Americans to study and research abroad,
equipping them with the skill-set they need to succeed in today's
global marketplace. These programs build language and intercultural
competencies for American citizens and future world leaders, allowing
them to better solve important problems in the U.S. and around the
world, and achieve greater understanding in both the private and public
sectors. Additionally, international exchanges raise the profile and
prestige of U.S. educational institutions and partners who interact
with them, creating long-lasting cultural and business relationships.
An increased investment in these programs will send a strong, united
message of cohesion and dedication to international partnerships.
Additional funding will make it possible for existing programs to
invest in and build the infrastructure and outreach models needed to
reach underserved communities and partner with organizations that serve
minority, rural, first-generation Americans, and others who have not
traditionally engaged in exchanges. By doing so, the U.S. ensures that
its foreign policy delivers for Americans by including all Americans
front and center through its people-to-people diplomacy.
We believe funding for educational and cultural exchange programs
should be balanced and strategic by reaching a range of people from
many different countries and backgrounds. Our country is very well
served by supporting initiatives to discover and cultivate emerging
leaders; language and area studies programs that prepare U.S. citizens
for the workforce; capacity development for women; youth engagement;
exchanges of cultural and artistic expression; interactions with
international athletes; and virtual exchanges that connect people who
are unable to travel. This comprehensive approach to exchanges has been
very effective in advancing our Nation's strategic interests and should
be maintained.
supporting u.s. national security
U.S. Department of State exchange programs allow the U.S. to engage
with wide and diverse audiences and emerging leaders from over 110
countries around the world, many of them from countries key to our
National security interests (e.g. Brazil, China, India, Russia, Turkey,
and Ukraine). American students studying abroad through U.S. Department
of State exchange programs are ambassadors of the next generation of
American leaders, highlighting our most promising young people and
promoting American values around the world. U.S. Department of State
evaluations repeatedly show that international exchange participants
who visit the United States complete their programs with a better
impression of our country, the American people, and our values. U.S.
ambassadors around the world consistently rank exchange programs among
the most useful catalysts for long-term political change and mutual
understanding. Notable exchange alumni include: 721 current and former
heads of foreign governments, 87 Nobel Prize winners, 75
representatives to the United Nations, and 39 current and former heads
of international organizations.
Furthermore, it is critical that the U.S. both maintain and expand
the human networks needed to successfully tackle these and future
challenges. Building and sustaining networks is important for creating
ongoing connections and is also a cost-effective way to enhance the
impact of exchanges.
strengthening the u.s. economy
U.S. Department of State exchange programs are a cost-effective
investment that not only enhance America's long-term competitiveness
but also provide significant and immediate economic impact in
communities across the country. 90% of the Bureau of Educational and
Cultural Affairs' appropriation is spent in the United States or
invested directly in American citizens or American organizations. Among
others, this appropriation supports 430+ EducationUSA Student Advising
Centers worldwide, fostering the flow of 1,057,188 international
students to U.S. universities and colleges in the 2022-23 academic
year. These students who were enrolled at U.S. colleges and
universities across the U.S. contributed $40.1 billion to the U.S.
economy and supported over 368,000 jobs, according to NAFSA:
Association of International Educators. A series of BridgeUSA program
reports found that participants from the Au Pair, Camp Counselor,
Intern/Trainee and Summer Work Travel programs contribute approximately
$1.5 billion annually to the U.S. economy. All 50 States host
international exchange visitors, who support the local economy during
their stay.
increasing mutual understanding
Exchange programs have a proven track record of building respect
and increasing mutual understanding between Americans and citizens of
countries around the world. For example, 94% of exchange students from
Muslim-majority countries reported having a deeper, more favorable view
of American culture after their stay in the United States, according to
a U.S. Department of State evaluation of the Kennedy-Lugar Youth
Exchange and Study (YES) Program.
Support from Congress allows the U.S. Department of State to
strategically align its programs with key U.S. foreign policy interests
and to facilitate exchange experiences for more than 55,000 American
and international exchange participants each year, including:
--Bringing emerging and future leaders to the U.S. on programs like
the Kennedy-Lugar Youth Exchange and Study (YES) Program
between the U.S. and countries with significant Muslim
populations; the Future Leaders Exchange (FLEX) Program for
high school students from Eurasia; the Young Leaders
Initiatives in Africa, Southeast Asia, and the Americas; and
the International Visitor Leadership Program (IVLP);
--Expanding opportunities for young Americans to study abroad through
programs like the Benjamin A. Gilman International Scholarship
Program;
--Continuing to engage students and scholars through the renowned
Fulbright Program;
--Engaging and training young professionals through programs such as
the Congress-Bundestag Youth Exchange (CBYX); and
--Broadening engagement with youth, women and girls, as well as
program alumni.
Increasing mutual understanding also requires expanding exchanges
to include new audiences. With this appropriation for educational and
cultural exchanges, program implementing partners could achieve
objectives like the following: meeting a fraction of unmet demand from
both Americans and those abroad to participate in these programs;
expanding programs that prioritize underserved communities in the U.S.;
expanding domestic outreach and recruitment of host families and
students; and building relationships with other regions of the world to
diversify inbound exchange programs.
Additionally, a critical part of incorporating new audiences is
successfully integrating technology. Learning from the lessons of the
pandemic, implementing partners are continuing to incorporate virtual
elements or fully virtual programs where appropriate. Although virtual
programming helps reduce costs for participants, it comes with higher
administrative costs to build necessary virtual infrastructure, hire
and train staff to intentionally develop programming, and effectively
use virtual tools, and acquire reliable virtual platforms. This
appropriation should allow for virtual activities to successfully
complement traditional in-person exchanges and expand access for those
who otherwise would not have the opportunity to participate, furthering
the reach and impact of these programs worldwide.
Again, thank you for the opportunity to express our support for
funding of $808.6 million in Fiscal Year 2025 for U.S. Department of
State educational and cultural exchange programs. We look forward to
working with the subcommittee to ensure that international exchange
programs continue to play a vital role in supporting U.S. national
security, strengthening our economy, and increasing mutual
understanding between the U.S. and countries around the world. Thank
you for your consideration.
[This statement was submitted by Mark Overmann, Executive
Director.]
______
Prepared Statement of American Academy of Pediatrics
The American Academy of Pediatrics (AAP), a non-profit professional
organization of 67,000 primary care pediatricians, pediatric medical
subspecialists, and pediatric surgical specialists dedicated to the
health, safety, and well-being of infants, children, adolescents, and
young adults, appreciates the opportunity to submit this statement for
the record in support of strong Federal investments in foreign
assistance to support children's health and wellbeing in Fiscal Year
(FY) 2025 and beyond. AAP urges all Members of Congress to put children
first when considering short and long-term Federal spending decisions
and supports funding levels for the following programs under USAID: $35
million for the Vulnerable Children account; $4,850,000,000 for
International Disaster Assistance; $1,150,000,000 for the Maternal and
Child Health budget line; and the following programs under the
Department of State: $4,211,188,000 for Migration and Refugee
Assistance; and $6,860,000,000 for Global HIV/AIDS programs.
vulnerable children (usaid)
FY 25 Request: $35 million; FY 24 Level: $31.5 million.--In passing
the Global Child Thrive Act in 2021, Congress recognized the need to
integrate early childhood development interventions into U.S. foreign
assistance programs to make sure that children have the tools they need
to survive and thrive. The AAP appreciates an increase of funding in
FY24 for the USAID Vulnerable Children account, which supports the care
and protection of vulnerable children around the globe. This account
funds three priorities: early childhood development programs, keeping
children in family-based care, and supporting interventions that
prevent violence against children. In 2022, with this funding, USAID
provided 28.6 million children with services such as family tracing and
reunification or other child development, protection, safety, and well-
being services. Increased funding would allow the U.S. government to
reach more children and families with child development, social
services, and other key support to further its goals with the USAID
strategy for Advancing Protection and Care for Children in Adversity
(APCCA).
international disaster assistance (usaid)
FY 25 Request: $4.85 billion; FY 24 Level: $4.779 billion.--In
2023, the world saw an increase in global conflicts and natural
disasters. In 2022, an estimated 468 million children--more than one in
six children worldwide--lived in areas affected by armed conflict. The
USAID International Disaster Assistance (IDA) account provides critical
humanitarian assistance to civilian populations in response to natural
disasters, conflict and insecurity, and other sudden-onset emergencies,
and supports a range of humanitarian assistance to save lives including
emergency food assistance, nutrition, water, shelter, health care,
protection, and agricultural rehabilitation. Complex conflicts and
natural disasters are increasing in frequency and severity, and because
of this, more funding for the IDA account is needed to reach the same
number of people who were reached previously.
maternal and child health budget line including gavi, the vaccine
alliance and polio (usaid)
FY 25 Request: $1,150,000,000 including $340 million for Gavi, the
vaccine alliance and $165 million for polio eradication; FY 24 Level:
$915 million including $300 million for Gavi, the vaccine alliance and
$85 million for polio eradication.
The AAP appreciates an increase in funding for Gavi, the Vaccine
Alliance, which was appropriated at $300 million for FY24. The pandemic
significantly set back gains for maternal, newborn, and child survival
by several years because of disruptions to the delivery of essential,
lifesaving health services, such as routine immunizations, antenatal
care, and breastfeeding counseling. There are currently 4.9 million
children and 287,000 women who die each from mostly preventable causes.
Between 2019-2021, 67 million children missed out on routine
immunizations, which is leading to outbreaks of vaccine preventable
disease across the globe. Funding of $1.15 billion for USAID's Maternal
and Child Health budget line would expand programs that support
pregnant mothers and newborns before, during, and after childbirth as
well as support training community health workers to diagnose and treat
key childhood illnesses and improve access to routine childhood
immunizations.
Additionally, the first-ever malaria vaccines are now available and
have shown to reduce all-cause mortality by 13 percent. An increase of
$40 million in funding to Gavi, the Vaccine Alliance would allow Gavi
to support the rollout of the new malaria vaccines, reach millions more
children with vaccinations and regain lost ground in vaccine coverage,
and prevent outbreaks at their source. An additional $80 million to
support USAID's bilateral polio program would strengthen surveillance
and outbreak response.
migration and refugee assistance (department of state--bureau of
population, refugee, and migration)
FY 25 Request: $4,211,188,000; FY 24 Level: $3.928 billion.--In
2022, an estimated 468 million children--more than one in six children
worldwide--lived in areas affected by armed conflict. Over 43 million
of these children were forcibly displaced. The Department of State's
Migration and Refugee Assistance (MRA) account helps meet the basic
needs of displaced people, supports sustainable and dignified solutions
to their displacement, and assists the countries hosting them. With the
increase of frequency and severity of conflicts, coupled with rising
operational costs, more MRA funding is required to reach the same
number of people who were reached previously. Additionally, MRA funds
help manage migration in the Western Hemisphere, including irregular
migration from Central America to the United States.
global hiv/aids programs including pepfar, global fund, and unaids
(department of state--global health programs)
FY 25 Request: $6,860,000,000 for Global HIV/AIDS programs,
including $5.15 billion for PEPFAR, $1.65 billion for the Global Fund,
and $60 million for UNAIDS; FY 24 Level: $6.045 billion.
The Department of State's Global HIV/AIDS programs including
PEPFAR, the Global Fund, and UNAIDS, support programs that expand
access to HIV prevention, treatment, and care interventions. Each year,
1.3 million people become newly infected with HIV and 630,000 people
die of AIDS-related illnesses worldwide. Funding for PEPFAR has
remained stagnant for over a decade in dollar amounts, resulting in an
effective $1.5 billion decrease in purchasing power from 2009 to 2021.
PEPFAR, the Global Fund, UNAIDS, and other multi- and bilateral U.S.
investments in global HIV/AIDS are a cornerstone platform for U.S.
global health programs and one of the major public health successes of
this generation. Since the inception of the program, PEPFAR has saved
more than 25 million lives. The program has provided over 20 million
people with to access lifesaving antiretroviral treatment and supported
5.5 million babies to be born HIV-free. Increasing investments in
global HIV/AIDS programs are essential to ending AIDS as a public
health threat and achieving an AIDS free generation.
The American Academy of Pediatrics looks forward to working with
Members of Congress to prioritize the health and well-being of
children, globally, in FY2025 and beyond to adequately fund life-saving
foreign assistance programs for vulnerable children and their families.
[This statement was submitted by Mandy Slutsker, Director, Global
Child Health Advocacy, American Academy of Pediatrics.]
______
Prepared Statement of American Councils for International Education:
ACTR/ACCELS
Regarding Department of State Programs
Mr. Chairman,
Thank you for the opportunity to provide testimony to the
subcommittee on behalf of American Councils for International
Education. Exchange programs funded through the Educational and
Cultural Exchange programs are a vital component to strengthening the
National security of the United States and supporting U.S.
international leadership. I am requesting that the subcommittee
recommend funding in the fiscal year 2025 State, Foreign Operations
bill of at least $800 million for programs under the Department of
State's Bureau of Educational and Cultural Affairs (ECA). Further, I
ask that funding within ECA be provided at the amount of $115 million
for Citizen Exchange Programs and that the Critical Languages
Scholarship program be funded at a level of $11 million. I also ask
that funding of at least $3.0 million be included for Research and
Training for Eastern Europe and the Independent States of the Former
Soviet Union Program.
The complexities of the current geopolitical crises in Ukraine,
Belarus, Afghanistan and the Middle East and the ongoing political
unrest in South Asia and the Horn of Africa demonstrate the critical
importance of exchange programs and the vital channel they provide the
United States for engaging people and communities throughout the world
in constructive dialog and the pursuit of mutual understanding. Surveys
of academic year program alumni show that most remain in touch with
Americans that they met on their programs in the U.S., and overall, 96%
have positive impressions of Americans.
Exchange programs funded through the Educational and Cultural
Exchange Programs account are a vital component to strengthening the
National security of the United States and supporting U.S.
international leadership.
Americans who have benefited from State Department funding go on to
careers using those languages, including many who subsequently work in
the State Department, Department of Defense, Department of Homeland
Security, and other Federal employers. Exchange programs have been
clearly shown to be an important, highly cost-effective public
diplomacy tool as well as a training opportunity for those who
represent and defend our country.
These programs promote America's business and political interests
abroad and advance U.S. democratic values abroad, reaching a wide range
of students, educators, and young professionals.
The U.S. is a global leader in delivering programs that create deep
and long-lasting bonds between individuals. However, the U.S. is not
without competition in this arena. China actively promotes competing
outreach initiatives around the world. The U.S. must maintain its
primacy in this area.
As President of American Councils for International Education, I
have the privilege of overseeing one of the leading nonprofit
organizations administering U.S. Government and privately funded
exchange and educational development programs in areas critical to U.S.
interests around the globe. Exchange programs promote the qualities of
democracy in the United States and work to build positive, productive
relations between the people of the United States and the people of
other countries.
Leaders in more than 120 countries around the world, in both
government and business, have come to share strong pro-Western values,
thanks to exchanges.
educational and cultural exchanges (ece)
No instrument is more cost-effective than American outreach through
exchanges to the rising generation of young leaders and professionals.
Exchanges provide a significant long-term multiplier effect at
relatively low cost, as alumni later rise to increasingly important
roles in government, the private sector, and the NGO community.
Exchange opportunities are financially out of the reach of most U.S.
families.
Without a doubt, these programs benefit not just the countries on
which they focus; they also benefit the U.S., which must strategically
engage with the global community.
Citizen Exchanges give American and foreign participants the
opportunity to gain knowledge and share their expertise and experience
through professional, youth, cultural, and sports exchange programs.
The Critical Language Scholarships program is an essential part of
the U.S. national security effort to expand the number of Americans
studying and mastering foreign languages. These languages are less
commonly taught in the United States but are essential to America's
engagement in the world. Languages include Russian, Chinese, Farsi,
Arabic, Korean, Indonesian, and others. More than 90% of participants
indicate an increase in job skills as a result of participation in
Critical Language Scholarships programs.
The State Department has expanded the number of critical languages
offered by the CLS from the original 10 to the present 16 languages,
without any corresponding increase in funding. The result is that
competitive positions for training in languages such as Russian,
Chinese, Farsi, and Arabic have been reduced over this period.
Overseas foreign language capability dramatically boosts U.S.
capacity to operate around the world, both in collaboration with our
friends and allies and, where necessary, in competition with our
adversaries.
Funding at a level of $11 million annually will enable CLS program
resources to match in constant dollar support the level of funding of
the program's initial implementation. The need for these resources is
evident, both in terms of the additional languages deemed critical by
the State Department and the increasingly challenging global
environment in which State Department and other U.S. government
national security professionals operate around the world.
The Future Leader Exchange (FLEX) program brings about 800 students
from countries of the former Soviet Union, Ukraine and Central and
Eastern Europe through a merit-based competitive process to the U.S.
for a high school academic year. With over 28,000 alumni in positions
of responsibility in government, business, and education, FLEX plays an
essential and critical role in fostering democratic values and positive
views toward the United States.
The Youth Exchange and Study Program (YES) fosters greater
understanding between the United States and countries with significant
Muslim populations and is an important part of U.S. foreign policy. The
YES program brings approximately 800 students from almost 40 countries
to the U.S. each school year and plays a critical role in achieving
this objective.
research and training on eastern europe and the independent states of
the former soviet union
I am requesting the Committee provide report language and funding
at the previously Congressionally recommended level of $3.0 million for
the Program for Research and Training on Eastern Europe and the
Independent States of the Former Soviet Union. The request is also to
continue current bill language under the section for ``General
Provisions.''
The Research and Training on Eastern Europe and the Independent
States of the Former Soviet Union Title VIII program was enacted into
law in 1983. These programs provide American advanced research,
fieldwork and essential linguistic capacities for policymaking
challenges emanating from Russia, Ukraine, and the turbulent border
regions.
The purpose of the Research and Training on Eastern Europe and the
Independent States of the Former Soviet Union (referred to as Title
VIII programs) is to raise the readiness levels of U.S. civilian and
prospective government personnel for understanding, analyzing, and
dealing effectively with a new generation of cyber, environmental,
geopolitical, military, technological and political challenges
emanating from Russian aggression and in the region as a whole.
Research and Training on Eastern Europe and the Independent States
of the Former Soviet Union programs ensure that American scholars and
government officials cultivate and maintain vital area expertise,
linguistic capabilities, and knowledge of the region's increasingly
diverse societies to ensure that our policymaking, conduct of
relations, and engagement with this vital region are informed and based
on an up-to-date understanding of the situation on the ground across
the region.
In conclusion, Mr. Chairman, exchanges are a critical, national
security foreign policy tool. They are a cost-effective tool in
promoting democratic values. These programs provide a significant
return on investment, particularly in a time of limited resources.
Therefore, I urge the subcommittee to provide the funding and
report language I have outlined in this statement for the Bureau of
Educational and Cultural Affairs and for the program of Research and
Training for Eastern Europe and the Independent States of the Former
Soviet Union.
Thank you for your consideration.
[This statement was submitted by Lisa Choate, President and CEO.]
______
Prepared Statement of The American Foreign Service Association (AFSA)
The American Foreign Service Association (AFSA) is concerned about
the 6 percent decrease to the Fiscal Year (FY) 2024 International
Affairs Budget from the FY23 enacted level. In FY25, AFSA hopes this
trend is reversed and significant hiring increases in the Foreign
Service can resume with a corresponding boost in funding. Specifically,
this testimony will address AFSA's appropriations requests for the U.S.
Department of State and the U.S. Agency for International Development.
In the FY25 State, Foreign Operations, and Related Programs (SFOPS)
Appropriations bill, AFSA is seeking an increase in funds for the State
Department's ``Human Resources'' account to hire and continue to fill
Foreign Service positions. AFSA also requests an increase in funds for
USAID's ``Operating Expenses'' account to hire and continue to fill
Foreign Service positions. Additionally, these operational accounts aid
in retention efforts for members of the Foreign Service. AFSA strongly
opposes any proposed cuts to the operational accounts of foreign
affairs agencies, which enable the hiring and retention of career
members of the Foreign Service.
Maintaining a robust diplomatic capability is vital to preserving
America's global leadership role. Our leadership was built on a
foundation of military might, economic primacy, good governance,
democratic values, tremendous cultural appeal-and the diplomatic
prowess to channel all that power, hard and soft, into global
leadership and multilateral alliances that have kept us safe and
prosperous at home. We would like to partner with our congressional
supporters to ensure that today and for years to come, the full
complement of U.S. diplomats is in the field, deployed around the world
to promote and protect our interests. For a tiny percentage of the
overall budget, the Foreign Service is America's first line of defense.
Its members build the relationships that enable Americans to conduct
business all around the world, keeping threats at bay and reducing the
need for military action.
If the United States retreats diplomatically, we leave a vacuum
that will be filled by others. According to an April 2, 2024,
``People's Republic of China (PRC) Influence and Confirmations''
presentation from the State Department, ``susceptibility to PRC
influence is high in countries without Senate-confirmed ambassadors.''
In the face of aggressive competition from countries such as China, the
opportunity costs of leaving American embassies short staffed and
without confirmed, empowered ambassadors are rapidly increasing. Doing
so erodes our Nation's diplomatic power at our own peril.
Growing cost-of-living concerns have also become a challenge in
retaining members of the Foreign Service, as evidenced by an AFSA Fall
2023 survey. Given the very mobile lifestyle and thus frequent
relocations, our members cite moving and re-establishing households
every few years, especially with domestic transfers, as growing
expenditures. These costs are made even more onerous due to frequent
career disruptions for partners and spouses of Foreign Service members
and the challenge of looking for housing, childcare, eldercare, and
setting up commuting routines every time a move is made. Thus, many
Foreign Service households rely on just one income, or with one spouse
earning well below their potential, throughout most of a Foreign
Service career. Our members also overwhelmingly identified the cost of
housing in the Washington D.C. region to be the most significant
challenge of serving in domestic positions. Ensuring that we can hire,
and then retain, U.S. Foreign Service members serves as another reason
for our ask to increase funding of operational accounts.
state department
An increase in the number of members of the Foreign Service will
help accomplish three major goals: help facilitate a training float so
that members of the Foreign Service are better prepared for their jobs,
allow expanded intake from an increasingly diverse U.S. population, and
enable the Department to meet expanding mission requirements.
1. Members of the Foreign Service receive quality training on the
front end and on the basics of diplomatic work before they go
to their first assignment, including language and functional
training. However, limited funding for leadership and other
specialized training hamper career-long training opportunities
for our Foreign Service members. The officers are usually
shuttled between language training and their next post, without
the opportunity to simply study their lessons learned or gain
new leadership skills in the classroom setting. A sustained and
fully funded training float will enable members of the Foreign
Service to perform higher quality work, accelerate out-of-cone,
cross-functional skills building, and provide temporary duty
officers to perform jobs while others attend training. An
increase will help ensure that enough personnel are in place to
support a training float for the Foreign Service.
2. A significant increase in the number of Foreign Service members
provides the opportunity to expand representation to
traditionally underrepresented groups. General expansion of the
Foreign Service aids in both the recruitment and retention of a
more diverse Foreign Service. While there has recently been
greater intake from traditionally underrepresented groups,
which should continue to expand, retention remains an ongoing
concern. While U.S. Foreign Service members identify as being
from or growing up in all 50 States, according to an AFSA June
2023 survey, expanded intake would also allow for even more
geographical and socioeconomic diversity.
3. Today, the U.S. is facing new threats and issues diplomats did
not have to reckon with 10 years ago. Russia has re-emerged as
a major national security threat, especially after its invasion
of Ukraine in early 2022. China now has a larger diplomatic
presence than the U.S. It has more posts overseas and
outnumbers American diplomats five to one in African countries.
Additional hiring and greater retention of the current
workforce will enable the Foreign Service to meet its expanded
mission requirements to counter the ever-growing threats to our
global leadership and influence.
Our nation needs a full team of diplomats and development
professionals in the field keeping threats at bay and safeguarding our
prosperity-combating the conditions that enable terrorism to take root,
protecting against pandemics, and promoting the rule of law and
international rules and norms that level the playing field for U.S.
companies to compete and thrive. This deficit of Foreign Service
members needs to be addressed as soon as possible if we are to avoid
losing further commercial, economic, and even political ground to
rising great powers and peer competitors. AFSA's request for funding to
support Foreign Service hiring and retention will enable America to
have a full team in the field and at home.
usaid
AFSA also greatly appreciates bipartisan support for foreign
assistance, including increases to USAID's Operating Expenses (OE)
account to permit hiring of career personnel and filling positions. We
regard this support as a critical component of U.S. national security.
AFSA recognizes the steady increase in the USAID OE budget since
FY2019, which has allowed USAID to increase both career Foreign Service
officers (FSO) and Civil Service (CS) staff. Largely done under the
auspices of the Global Development Partnership Initiative (GDPI), USAID
career FSOs are nearing the FY 23 target of 1,980 and an increase of
over 300 career FSOs since 2019. This has been a good start. However,
USAID still faces critical shortages of career Foreign Service
employees. In the field, USAID Missions continue to struggle to fill
Contracting Officer, Controller, technical, and programmatic positions
with career FSOs. As a result, the Agency maintains its reliance on
temporary contractors, short-term fixes, or simply making do without.
Decades of OE shortages, career hiring caps, fragmented internal
budget processes, and an under-resourced and unempowered Human Capital
and Talent Management (HCTM) Office have distorted both USAID's
workforce composition and processes. Today, Institutional Support
Contractors (ISC), Personal Service Contractors (PSC), and non-career
Foreign Service Limited (FSL) employees account for nearly 25 percent
of staff. In some critical Washington Bureaus, such as Conflict
Prevention & Stabilization (CPS), Humanitarian Affairs (HA),
Resilience, Environment and Food Security (REFS) and Global Health
(GH), an overwhelming majority of personnel are short-term non-career
staff (PSCs, ISC, and FSLs). The continued reliance on non-career staff
affects how USAID works, limits career opportunities for FSOs, and
undermines overall morale across hiring categories.
AFSA recognizes the efforts USAID has made under GDPI to increase
career FSO staff. As reported in the FY 22 Transforming Workforce
Report to Congress, USAID will meet its FY2023 goal of a career Foreign
Service totaling 1,980. However, there is growing uncertainty over
whether USAID will be able to reach its FY2025 target of 2,500 career
FSOs. Furthermore, the addition of a new hiring authority, Civil
Service Excepted (CSE), and an increase in hiring authority for FSLs to
700, are troubling signs that USAID will continue to rely on temporary
short-term employment options.
For years, Congress and AFSA have been asking USAID to develop a
comprehensive workforce strategy. In January 2024, the comprehensive
strategic workforce plan (CSWP) was finally established, a positive
first step. AFSA is committed to working with USAID to ensure that the
CSWP captures and effectively utilizes the required and necessary data
to allow leadership to make and implement decisions in an open and
transparent manner that promotes a strong career FSO workforce while
minimizing the need for continued short-term solutions. The CSWP and
its first and future reports are essential in ensuring a growing and
strong career workforce capable of implementing effective programming
in support of our foreign policy goals.
While GDPI and the SWPC are positive steps, there is still a need
for vigilance. Turnover and vacancy rates of critical Senior FSO (SFS)
and FSO positions across Washington Bureaus remain high. High SFS
turnover in the Bureau of Human Capital and Talent Management (HCTM),
coupled with continued vacancy in the Chief Human Capital Officer
(CHCO) position, holds back growing and strengthening the career FSO
corps. It is essential for USAID to better understand why both its SFS
and FSO domestic positions are going unfilled, or when filled, why
career staff often depart early.
Finally, recent authority to increase the number of FSLs to 700 (a
potential of over 250 new positions), along with new CSE mechanisms,
give AFSA pause. FSLs and CSEs are professional and respected
colleagues, many of whom would welcome the chance to compete for a
career position with USAID if opportunities arose. However, USAID has
seemingly chosen to meet its needs with temporary term-limited fixes,
further limiting opportunities for its career FSOs. The continued use
of these mechanisms and the explosion in the number of ISCs create not
only a huge management and unknown budget burden, but further entrench
perceptions of an unsupportive leadership for career FSOs.
Again, AFSA requests an increase in OE funding that recognizes the
urgent need for a larger, robustly resourced career Foreign Service at
USAID. We hope this budget and on-going efforts by USAID are part of a
larger, sustained, concerted effort to rebuild and empower USAID's
career cadre to better serve the interests of the American people.
Thank you for your consideration of these requests.
Sincerely,
Tom Yazdgerdi, AFSA President
______
Prepared Statement of American Hellenic Institute (AHI)
Chairman Coons, Ranking Member Graham, and Members of the
subcommittee, I am pleased to submit testimony to the subcommittee on
behalf of the Nationwide membership of the American Hellenic Institute
(AHI) on the Administration's proposed FY2025 foreign aid budget.
In keeping with the best interests of the United States, and with
the vision and spirit of the Administration's FY2025 budget request
aimed to meet our commitment to confronting global challenges, which
includes fostering democracy and human rights and countering malign
influences, AHI opposes any proposed: (1) military assistance the
Administration will request for Turkey until; Turkey withdraws all of
its troops and illegal Turkish settlers in Cyprus; Turkey demonstrates
tangible steps to resolve its outstanding problems with Greece in the
spirit of the December 7, 2023 ``declaration on friendly relations and
good neighborliness;'' Turkey ends their political, financial, and
logistical support for Hamas and other U.S. designated terrorist
organizations; (2) any proposed reduction in the aid levels for the UN
Peacekeeping Force in Cyprus.
Further, AHI officially supported a bipartisan dear colleague
letter addressed to the House Appropriations Committee led by the
leaders of the Congressional Hellenic Caucus calling for FY2025
appropriations to include $1.8 million for International Military
Education and Training (IMET) assistance for Greece.
Additionally, AHI recommends robust investment for Foreign Military
Financing (FMF) assistance for Greece, a faithful NATO ally since 1952.
As this testimony will demonstrate to the subcommittee, Greece's
strategic importance to the United States justifies this
recommendation. AHI also recommends a $25 million appropriation for
fiscal years 2025 and 2026 for Greece's European Recapitalization
Incentive Program (ERIP), as authorized by the United States-Greece
Defense and Interparliamentary Partnership Act of 2021. In addition to
ERIP financing for Greece, Congress should appropriate an extra $6
million in FMF funding, as part of the President's FY2025 budget
request. The East Med Act authorized appropriations of $3 million for
FMF assistance in FY2020.
The Republic of Cyprus, a vital U.S. strategic partner, will mark
the somber 50th anniversary of Turkey's illegal invasion and ongoing
occupation in July. For the first time in 2020, the U.S. Department of
State provided funding for the Republic of Cyprus's IMET program. AHI
welcomed this policy development as the U.S. rightfully invested
resources in defense cooperation with the Republic of Cyprus. The U.S.
must build upon it by providing a minimum $500,000 appropriation for
the Republic of Cyprus' IMET program for FY2025.
AHI strongly opposes any proposed cuts by Congress to foreign
assistance programs that strengthen the U.S.-Greece and U.S.-Republic
of Cyprus relationships.
America Values Its Alliance with Greece.--Greece is an immensely
valuable link as 'a pillar of stability' in the region as several high-
level U.S. government officials have noted. Furthermore, as Greece is
located in the intersection of Europe, Asia, and Africa, and has close
cultural, political, and economic ties to Mediterranean countries,
including Israel; as well as Western Europe, the Balkans, Eastern
Europe, and the Middle East, Greece is situated in a vital strategic
region to be an ideal partner for the U.S. The U.S.-Greece relationship
has reached new heights by virtue of an ongoing Strategic Dialogue
(which completed its 5th round in February, 2024) where avenues for
cooperation among many sectors were discussed, including: regional
cooperation, defense and security, and trade and investment, among
others. Greece is a pivotal and dependable NATO ally to advance U.S.
interests and is a frontline state against terrorism. Specifically,
Greece has become indispensable to U.S. efforts to support Ukraine.
Greece enables the U.S. military to enter the European theater through
the port of Thessaloniki and to depart through Alexandroupolis, a port
in northern Greece. Alexandroupolis has been referred to as the ``Souda
of the North'' by the former Chief of the Hellenic National Defense
General Staff, Konstantinos Floros, because it has become an important
staging point for the transiting of equipment to Ukraine and Europe's
Eastern flank. Greece has sent both military and humanitarian aid to
Ukraine. On March 6, 2024, a Russian missile strike narrowly missed
Prime Minister Mitsotakis while he was in Ukraine to meet with
President Zenenskyy and show solidarity with Ukrainian people.
The United States and Greece signed an extension of an upgraded
Mutual Defense Cooperation Agreement (MDCA) in October 2021, addressing
the two allies' commitment to address, over a longer term, the security
challenges in the region as well as offering more flexibility to deepen
cooperation in the defense sector. Secretary Blinken explained: ``This
update will allow the agreement to remain in force indefinitely, and it
enables U.S. forces in Greece to train and operate from additional
locations.'' The MDCA also envisions the continuation and expansion of
activities through the port of Alexandroupolis.
For its part, Greece further demonstrates its commitment to NATO as
a top contributor to its defense efforts. In 2023, Greece spent 3.01%
of its GDP on defense expenditures, just behind the United States and
Poland in terms of highest percentage of GDP.\1\ In 2022, Greece spent
3.76% of its GDP on defense expenditures, most of any NATO member
country that year, including the U.S.\2\ In addition, AHI welcomes the
approved sale of F-35 fighter jets to Greece this year, a step which
will further enhance the U.S.-Greece defense relationship.
Greece is also important for the projection of U.S. strategic
interests by being home to the most important U.S. military facility in
the Mediterranean Sea, NSA Souda Bay, located in Crete. It is a base
from where joint USN/USAF reconnaissance missions and air refueling
support for U.S. and NATO operations were implemented successfully, and
it continues to be immensely important. Military installations located
at Souda Bay include the NATO Maritime Interdiction Operational
Training Centre (NMIOTC) and the NATO Missile Firing Installation
(NAMFI). It also has been noted by U.S. government officials that Souda
Bay allows United States Navy vessels--especially aircraft carriers--
the ability to dock, make needed repairs and maintenance, and resupply,
all within a couple of weeks and without having to return to Naval
Station Norfolk.
However, Greece's value extends well beyond Souda Bay. To further
demonstrate Greece's value:
--NATO Joint-Command HQ.--Thessaloniki hosts a NATO Rapid Deployment
Corps combined with its Third Army Corps for 2 years.
--Operation Atlantic Resolve.--Greece enables a substantial portion
of the U.S. Army's 10th Combat Aviation Brigade to enter the
European theater through the port of Thessaloniki and to depart
through Alexandroupolis. As demonstrated earlier in this
testimony, Alexandroupolis is being recognized for its
increased geostrategic importance, which can also contribute to
economic development and energy security.
--USAF has invested resources to create the infrastructure required
to operate MQ-9 Reaper Drones from Greece's Larisa Air Force
Base.
--Increased aircraft and soldier involvement at Stefanovikio Hellenic
Army airbase improves NATO transit capability.
--The trilateral naval exercise ``Noble Dina'' between the U.S.,
Greece, and Israel is held annually off of the coast of Souda
Bay.
Former U.S. Ambassador to Greece Geoffrey Pyatt described the U.S.-
Greece relationship as being at ``an all-time high'' and acknowledged
Greece as a key geostrategic partner of the United States, stating
exercises conducted there are ``showcasing Greece's critical geographic
position at the nexus of three continents.'' Pyatt's successor,
Ambassador George Tsunis, has echoed this assessment, most recently in
February 2024. ``The United States views Greece as an indispensable
partner and key NATO Ally. Greece plays a critical role defending
NATO's southeastern flank,'' Tsunis said in an interview.\3\
Finally, Greece is also an active participant in peacekeeping and
peace-building operations conducted by international organizations,
including the UN, NATO, EU, and OSCE. In summary, it is evident Greece
contributes significantly to U.S. interests. AHI strongly contends
these actions justify a robust investment by the U.S. in Foreign
Military Financing assistance to Greece.
Greece's Role in European Energy Security.--Significant commerce
and energy sources pass through the Eastern Mediterranean. Russia's
illegal invasion of Ukraine has created an urgent need for Europe to
get off Russian oil and gas through a diversification of energy
sources. Greece is poised to play a fundamental role in Europe's energy
security and independence from Russian energy. Greece is quickly
becoming an energy hub for Europe, and the transit point for the
Southern Gas and Eastern Mediterranean Gas Corridors, both of which
contain significant amounts of non- Russian energy. Greece plays a
pivotal role in the transit of energy from the Caspian region to Europe
via the Trans- Adriatic Pipeline, operational since 2020. Greece is
leading the expansion of the Southern Gas Corridor into the Balkans
through initiatives such as the Gas Interconnector Greece-Bulgaria
(IGB), which became operational in 2022. In addition, Greece will have
a key role in the emergent Eastern Mediterranean Gas Corridor. Proposed
pipeline and interconnector projects, as well as Greece's existing
Liquified National Gas (LNG) terminals, position Greece to be the
gateway for Egyptian, Israeli, and Cypriot energy to Europe. In fact,
in February, the first FSRU (floating storage and regasification unit)
received its first LNG cargo, which originated in the U.S. By contrast,
Turkey promotes Europe's energy dependence on Russia through its
Turkstream pipeline.
Regional Instability.--The successful projection of U.S. interests
in the Eastern Mediterranean depends heavily on the region's stability.
A key to peace and stability in the region is for good neighborly
relations among NATO members and respect for the rule of law.
Therefore, the U.S. has a stake in focusing on the problems that are
detrimental to U.S. interests and to call out those who cause
instability in the region. Turkey is the fundamental cause of
instability in the Eastern Mediterranean and broader region.
--Turkey's unilateral claims against sovereign Greek territory in the
Aegean which are in violation of international law, and
Turkey's refusal to refer its unilateral claims to binding
international arbitration.
--Turkey's aggression against Cyprus which includes its continuing
illegal occupation of 37.3 percent of Cyprus.
--Turkey's insistence on a 'two-state solution' in Cyprus.
--Turkey actively supports U.S.-designated terrorist groups, such as
Hamas, as well as the global Muslim Brotherhood and a variety
of extremist Islamist organizations.
--Turkey's recently issued trade ban against US ally Israel.
--Turkey's acquisition and test of the Russian S-400 missile defense
system, which poses a grave threat to NATO assets. This is a
blatant violation of Turkey's obligations as a NATO member.
While Greece and Turkey have had somewhat of rapprochement in
recent months, as evidenced by December 7, 2023 ``declaration on
friendly relations and good neighborliness,'' the U.S. should view
Turkey through the prism of 'trust but verify.' Turkey must take
tangible steps to reassure Greece that its desire for peace is genuine.
Further, Turkey's continuing occupation of Cyprus, its
intransigence in solving the Cyprus problem, and its refusal to
recognize E.U.-member Republic of Cyprus (a prerequisite to Turkey's
E.U. accession process) are detrimental to U.S. interests and
contributes to regional instability. To illustrate, Turkey insists on
maintaining troop levels illegally in Cyprus, President Erdogan
continues to promote a two-state solution for Cyprus, and attempts have
been made to change Varosha's status by illegally reopening it, which
would inflame tensions and is in violation of international law and
United Nations resolutions. President Erdogan has gone so far as to
state that Turkey should have invaded the entirety of the island of
Cyprus in 1974.
Secretary Antony Blinken has frequently mentioned the need of the
United States to ``uphold the rules-based international order.''
However, to do this, the application of the rule of law cannot be
selectively applied. It must be applied to all countries which seek to
undermine the ``rules-based international order,'' including Turkey.
Turkey.--We oppose any foreign aid for Turkey and any other
assistance programs from the United States. In 2019, AHI applauded the
United States' decision to terminate Turkey's designation as a
beneficiary developing country under the Generalized System of
Preferences (GSP) program. AHI has long argued for this type of action
by the U.S. government, especially in testimony presented to this
subcommittee, until the following actions are taken: (1) the immediate
withdrawal of all Turkish troops from Cyprus; (2) the prompt return to
Turkey of the over 180,000 illegal Turkish settlers in Cyprus; (3) the
Turkish government's safeguarding the Ecumenical Patriarchate, its
status, personnel and property, reopening the Halki Patriarchal School
of Theology, returning church properties illegally seized, and the
reversal of Hagia Sophia's and Chora Church's status, returning them to
a museum; (4) the assured cessation of violations against Greece's
territorial integrity in the Aegean and of its airspace, which have
quieted; (5) removal of the Russian S-400 missile defense system from
Turkey, and (6) the cessation of support for U.S.-designated terrorist
organizations, including Hamas. Of course, Turkey's ongoing human
rights, freedom of speech, and religious freedom violations are
problematic.
This month, Turkish President Recep Tayyip Erdogan's formally
converted The Church of St. Saviour in Chora, known as Kariye in
Turkish, from a museum into a mosque. AHI urges Congress and the
Administration to publicly and unambiguously express the outrage of the
American people at this sordid act. Turkey should be held accountable
for its actions with sanctions.
Moreover, Turkey has demonstrated it is not a true and dependable
U.S. and NATO ally. The U.S. government, both executive and legislative
branches, rightly sanctioned Turkey for its procurement of the Russian-
made S-400 missile defense system under Countering America's
Adversaries Through Sanctions Act (CAATSA) in December 2020, as well as
removing Turkey from the F-35 joint strike fighter program, actions
that AHI applauded. AHI strongly opposed the sale of upgraded F-16
fighter jets to Turkey, which the Administration approved in January of
2024. It appears to observers of U.S. policy in the region that any
proposed deal to sell F-35s to Greece remained contingent on Turkey's
approval of Sweden's NATO accession and subsequent proposed sale of F-
16s to Turkey. U.S. policy toward Greece should never be viewed through
the prism of Turkey, or any third-party country. Greece is worthy of
such a deal based on its own merit.
Cyprus. The illegal occupation of the Republic of Cyprus by 40,000
Turkish troops remains. This year will mark the 50th year of Turkey's
illegal invasion and occupation of Cyprus. As long as the Republic of
Cyprus remains under Turkish military occupation, a strong UN
peacekeeping force must be maintained on the island. Congress can
assist the Republic of Cyprus by reaffirming the United States'
position that assistance appropriated for Cyprus should support
measures aimed at solidifying the reunification of Cyprus and the
unified government in Cyprus. It would provide a settlement, should it
be achieved, with a chance to succeed.
For the Republic of Cyprus, which is relatively new to the IMET
program, it is critical to sustain investment in FY25. It will be the
next step in a series of positive developments since the Statement of
Intent that the U.S. and Republic of Cyprus signed in November 2018.
Since then, Cyprus has assigned a defense attache to the Embassy in
Washington, and the U.S. implemented an annual review of lifting of the
arms prohibition on Cyprus. On March 30, 2023, the New Jersey National
Guard and the Republic of Cyprus National Guard formalized their State
Partnership Program collaboration, demonstrating the burgeoning U.S.-
Cyprus security partnership.\4\ Most recently, AHI endorsed the
bipartisan End the Cyprus Embargo Act (H.R. 8212), which will extend
the waiver period on the ITAR (International Traffic in Arms
Regulations) restrictions the Republic of Cyprus is subject to from 1
year to 5 years. However, ultimately, the U.S. must fully and
permanently lift its arms prohibition on Cyprus and remove Cyprus from
the list of countries to which arms sales are prohibited under
International Traffic in Arms Regulations (ITAR) and calls for
appropriations language to direct this of the U.S. Department of State.
Separately, Cyprus continues to demonstrate its value as a U.S.
strategic partner and contributor to stability. In March, Cyprus opened
a sea corridor to ship aid directly to Gaza-most recently, a U.S.-
flagged ship carrying aid to a U.S.-built pier off Gaza.
UN-led attempts to achieve a just and viable solution to the 50-
year division of the Republic of Cyprus fail to reach an agreement
because of Turkish intransigence. Instead of helping to provide
stability by promoting a just settlement supported by both Greek
Cypriot and Turkish Cypriot communities, Turkey insists on antiquated
and obstructive stances. For example, Turkey insists on maintaining the
Treaty of Guarantee, which would allow for future unilateral Turkish
military interventions. This demand is completely unacceptable and
contradicts the governing principals of a European Union member state.
Furthermore, Turkey's illegal occupation of Cyprus has had an impact
upon The Committee on Missing Persons' (a previous recipient of USAID
support) ability to access certain Turkish military installations in
Cyprus to excavate the remains of 955 Cypriots currently missing since
the tragic events that occurred on the island for proper
identification. Congress can help by calling on Ankara to support
reunification efforts in a constructive manner which would include the
removal of troops, settlers, and rights of guarantees. Moreover, AHI
calls on the Administration to be engaged with the Cyprus problem at
the highest levels. Lastly, AHI contends the U.S. must continue to
support the sovereign rights of the Republic of Cyprus to explore and
develop the resources within its EEZ free of any third-party
interference and to underscore the importance of avoiding any actions
that escalate tension. As mentioned, Turkey's threats in Cyprus' EEZ
endanger U.S. companies and energy security interests. If they reoccur
in earnest, Turkey's history of illegal actions in Cyprus' EEZ prohibit
any real chance for the resumption of settlement talks.
Thank you for the opportunity to present our written testimony to
the subcommittee.
---------------------------------------------------------------------------
\1\ https://www.washingtonpost.com/politics/2024/02/12/nato-
countries-defense-spending-gdp-trump/.
\2\ www.dw.com/en/poland-to-ramp-up-defense-budget-to-4-of-gdp/a-
64555544.
\3\ https://www.tovima.com/politics/amb-tsunis-on-greek-us-
relations-in-uncertain-times/.
\4\ https://cy.usembassy.gov/new-jersey-national-guard-signs-
partnership-agreement-with-republic-of-cyprus-national-guard/.
[This statement was submitted by Nick Larigakis, President.]
______
Prepared Statement of American Israel Public Affairs Committee
For Fiscal Year 2025, AIPAC urges the subcommittee's full support
for $3.3 billion in security assistance for our strategic partner
Israel as set forth in the 2016 U.S.-Israel Memorandum of Understanding
(MOU) on Security Assistance. We note with appreciation this
subcommittee's support of full funding of Israel's security assistance
in every previous year under the MOU.
The significance of this subcommittee's commitment to Israel's
security is magnified this year in the aftermath of the most
devastating terror attack in Israeli history. On October 7, 2023,
thousands of Hamas terrorists breached the Gaza border and brutally
attacked Israeli communities, slaughtering at least 1,200 innocent
people, including more than 30 Americans, and taking more than 250
hostages to Gaza. The unprovoked and unprecedented assault, which ended
years of a ceasefire between Israel and Hamas, included the rape,
torture, and burning alive of babies, children, women and men, with no
discrimination or hesitation. The carnage that took place on that day
marks the most gruesome day in Israel's history and the single largest
death toll of Jews since the Holocaust. Atrocities were gleefully
committed and even live-streamed and documented--but it seems that
today, after more than 7 months, the events of October 7 are
forgotten--and even denied--by too many. Today, over 130 hostages
remain in terrorist captivity as Israel wages a legitimate and
justified war to bring them home and dismantle Hamas' capacity to
threaten Israel.
The battlefield Israel must maneuver through is the most complex
and difficult battlefield that any army has ever seen. Israel must
fight Hamas terrorists in an urban, and increasingly subterranean,
battlefield as the terrorist group uses Palestinian civilians as human
shields, while at the same time defending against threats on all sides.
The Jewish state is currently under attack from the full spectrum of
Iran's regional terrorist proxy network, including daily Hezbollah
attacks along the northern border and a persistent stream of attacks
from the Houthis in Yemen and Iranian-backed groups in Syria, Iraq and
beyond. The scale and scope of the danger Israel faces was on full
display during the unprecedented Iranian aerial attack against Israel
on April 13-14.
We have long appreciated that Congress' strong bipartisan support
for Israel's security enables the Jewish state to defend itself, by
itself, against this vast array of threats posed by Iran and its
proxies. This year, we note with deep appreciation Congress'
extraordinary $14.3 billion emergency supplemental appropriations for
Israel, including $3.5 billion in foreign military financing to Israel.
This largest single American investment in Israeli security sent a
resounding message across the region that the United States stands
ready to enable Israel to meet any threat arrayed against it.
We also express our appreciation to the subcommittee for
consistently opposing and rejecting all efforts to attach new political
conditions to Israel's critical security funding. While Israel's aid is
governed by all applicable laws and provisions that ensure oversight
and proper use of U.S. security assistance globally, the notion of
adding political conditions only weakens Israel and emboldens our
mutual enemies across the world at a time when the Jewish state is most
vulnerable. We have made clear our opposition to the Biden
Administration's decision to withhold certain weapons from Israel, and
we continue to oppose any legislative provisions that would impose new
limits, restrictions, or conditions on aid to Israel. Congress must
continue to provide Israel the capabilities necessary to guarantee its
safety and security.
regional challenges
In Gaza, Israel faces a persistent and ongoing threat from Hamas'
terrorist army. Israel has defeated the majority of Hamas battalions
and destroyed a significant portion of the group's terror
infrastructure. However, Hamas is not yet defeated. It retains at least
four battalions in Rafah and continues periodic rocket fire on Israel.
Hamas has poured billions of dollars into establishing a deeply
hardened terrorist infrastructure in and beneath the Gaza Strip. The
breadth and sophistication of Hamas' labyrinth of terror tunnels--
estimated to be between 350 to 450 miles long-presents an unprecedented
challenge. Israel must have the time and space to complete its just and
achievable mission: removing Hamas from power, ensuring Hamas can never
again threaten Israel as it did on October 7, and securing the return
of all the hostages.
To the north, Hezbollah has launched daily missile and drone
attacks from Lebanon at Israel since the onset of the war, forcing some
70,000 Israelis to remain displaced from their homes since October
2023. While Israeli retaliatory measures have successfully pushed much
of Hezbollah's elite Radwan forces away from the Lebanese border, the
persistent Hezbollah shelling has thus far resulted in the deaths of at
least 23 Israelis. If fighting in the north widens, Hezbollah's arsenal
of over 150,000 rockets and missiles, including many precision-guided
missiles, could have potentially dire ramifications for Israel.
To the south, the Iranian-backed Houthis in Yemen continue to fire
missiles and drones at Israel while also targeting U.S. and allied
military vessels and commercial ships in the Red Sea, significantly
disrupting global shipping routes. Indeed, the full breadth of
terrorist proxies armed and financed by Iran for decades--including
militias in Iraq and Syria--have been mobilized against Israel since
the onset of the war with Hamas.
At the same time, Tehran has grown bolder in its aggression than
ever, launching an immense direct aerial assault on Israel just last
month, including over 300 ballistic missiles, cruise missiles and
drones intended to cause maximum death and destruction. Thanks to
overwhelming U.S. leadership, allied support, and decades of U.S.
investment in Israel's security, that attack was repelled successfully
with minimal damage to Israel. But this attack marks a new, dangerous
escalation by Tehran that represents only a small preview of the types
of threats Israel could face in the future. Iran used less than 1
percent of its ballistic missile arsenal in its recent attack.
Given Iran's long record of clandestinely violating international
agreements, Israel also needs to prepare for the possibility that
stronger actions may be needed to prevent Iran from acquiring nuclear
weapons. Accelerating its nuclear quest, Iran has increased its
stockpile of 20 and 60 percent enriched uranium, according to
International Atomic Energy Agency (IAEA) data. IAEA chief Rafael
Grossi has warned that Tehran already has enough uranium enriched to
near-weapons-grade levels to make ``several'' nuclear bombs and that
IAEA surveillance of Iran's nuclear sites has been disrupted for years.
Put simply, Iran is at the cusp of a nuclear-weapons capability while
it continues to inflame the region and encircle Israel with terrorist
proxies.
It is in America's vital interest for Israel--our sole reliable
democratic ally in the region--to have the military capabilities needed
to decisively defeat these mutual threats.
the strategic imperative to maintain israel's qualitative military edge
Israel must invest heavily in its own defense to confront complex
and wide-ranging threats. Prior to the war with Hamas, spiraling
defense costs, including inflationary pressures, forced Israel to spend
over 5 percent of its GDP on security--more than any other
industrialized nation. Now, Israel plans to raise about $60 billion in
debt this year to fund the ongoing war that has already taken a severe
toll on the Israeli economy. The record mass mobilization of
reservists--over 300,000 soldiers--coupled with the evacuation of some
100,000 residents both from southern and northern communities has led
Israel's economy to contract by almost 20 percent on an annualized
basis in the last quarter of 2023.
While Israel invests its own resources heavily into its own
defenses, U.S. security assistance is critical to ensure the Jewish
state maintains a qualitative military edge (QME). In accordance with
the president's budgetary request and the 2016 U.S.-Israel MOU, AIPAC
strongly urges the subcommittee to approve $3.3 billion in security
assistance to Israel for fiscal year 2025 without any additional
political restrictions. It is imperative that Congress reject attempts
to threaten Israel's security by linking new political conditions to
aid. By continuing its policy of approving a clean appropriation to
Israel, this subcommittee will strengthen Israel's security, promote
American interests in the region, and enhance the prospects for peace.
funding, policy, and oversight provisions
We urge the subcommittee to maintain longstanding provisions in the
bill and accompanying report that ensure strict oversight and reporting
requirements related to Lebanon, Iran, Syria, and the Palestinians. Any
funding to the Palestinians must comply with the Taylor Force Act to
put continued pressure on the Palestinian Authority to stop
incentivizing terrorism. We strongly support humanitarian assistance to
civilians in Gaza and urge the subcommittee to extend and make
permanent the prohibition on funds to UNRWA as well as critical new
restrictions and oversight provisions on aid to Gaza included in last
year's bill. The subcommittee must also maintain existing provisions to
cut assistance should the Palestinians continue to engage in
counterproductive unilateralism at the United Nations or the
International Criminal Court.
We believe that continued U.S. aid to Egypt and Jordan is also
important to help ensure stability in the region, as is the strong U.S.
commitment to the Multinational Force and Observers mission in the
Sinai. In addition, AIPAC supports ongoing Israeli-Palestinian security
cooperation under the auspices of the United States Security
Coordinator for Israel and the Palestinian Authority, if the
Palestinians demonstrate a commitment to this shared effort.
We strongly support the furtherance of longstanding programs like
the migration assistance within Israel of at least $5 million annually,
continued investment in the USAID-Israel international development
cooperation program at $4 million, and the Middle East Regional
Cooperation program at $10 million annually. And as we approach the
fifth year of $50 million funding for the Middle East Partnership for
Peace program, we urge Congress to extend the authorization and
continue investing in this meaningful program that provides tangible
opportunities for Israelis and Palestinians to build a better future
together. AIPAC continues to urge support for a robust and bipartisan
foreign aid budget that ensures America's strong global leadership
position. Foreign aid enables the United States to support key allies
like Israel, spur our job-creating exports, stem the spread of
diseases, and help prevent countries in turmoil from becoming breeding
grounds for terrorism.
discrimination against israel in the international community
Israel's security challenges are compounded by challenges it faces
at the United Nations and other international fora, where Israel's
opponents attempt to isolate and demonize the Jewish state. The latest
iterations of this include South Africa's defamatory attempt to falsely
accuse Israel of genocide at the International Court of Justice as well
as recent indications that the International Criminal Court may move to
issue arrest warrants against senior Israeli officials. The U.S. must
oppose such blatant attempts to weaponize and politicize international
judicial fora against Israel. We also urge the subcommittee to maintain
the prohibition on funding to the anti-Israel Human Rights Council's
Commission of Inquiry.
israel: a vital strategic partner
As a long-standing pillar of America's Middle East security
framework, the U.S.-Israel strategic partnership combats shared threats
and furthers U.S. policy objectives. Today, the U.S. and Israel face
evolving threats as the Iran-Russia-China axis and rogue non-state
actors increasingly exploit emerging technologies, such as drone and
cyber capabilities, to further their aggressive and destabilizing ends.
The 2022 Jerusalem U.S.-Israel Strategic Partnership Joint Declaration
critically committed to ``move forward the U.S.-Israel defense
partnership through cooperation in cutting-edge defense technologies
such as high energy laser weapons systems to defend the skies of Israel
and in the future those of other U.S. and Israel security partners.''
Israel's stable, democratic, and dependably pro-American
orientation ensures that America can consistently rely on its alliance
with the Jewish state. This has been an enduring constant through
Republican and Democratic administrations and across Israeli
governments, anchored by bipartisan support in Congress for the
relationship. Given the increasingly complex array of global threats
facing America, Israel's role as a reliable ally in a critical region
is more important than ever.
conclusion
As Congress considers U.S. Mideast priorities, one thing remains
certain: ensuring Israel's security promotes American values and vital
interests. This subcommittee deserves great credit for its stalwart
advocacy for the U.S.-Israel relationship. That includes not only
reliably providing Israel with full funding of vital security
assistance without any conditions but also including important policy
provisions dealing with so many aspects of U.S. Mideast policy. This
bipartisan support will remain even more critical as America and Israel
continue to work together to address the challenges and opportunities
that lie ahead.
[This statement was submitted by Howard Kohr, CEO.]
______
Prepared Statement of American Society of Tropical Medicine and Hygiene
(ASTMH)
Regarding USAID Global Health Funding
The American Society of Tropical Medicine and Hygiene (ASTMH)--the
largest international scientific organization of experts dedicated to
reducing the worldwide burden of tropical infectious diseases and
improving global health--appreciates the opportunity to submit
testimony to the House Appropriations Committee's subcommittee on
State, Foreign Operations, and Related Programs.
We respectfully urge you to provide robust funding in your FY25
State and Foreign Operations appropriation bill for global health and
infectious disease programs. Many global health programs have had years
of flat funding and will require additional resources, not only to
reinvigorate programs that experienced disruptions due to the pandemic,
but to ramp up innovation and impact. We must end once and for all the
vicious cycle of underinvestment followed by panic. We would like to
highlight two specific USAID programs:
Neglected Tropical Diseases (NTDs).--NTDs are a group of more than
20 infectious diseases and conditions that disproportionately affect
poor and marginalized populations. NTDs remain persistent threats to
global health and economic viability, killing more than 500,000 each
year and causing significant morbidity and mortality in more than one
billion people worldwide. While the global challenge of NTDs may seem
daunting, the NTD Program at USAID has made remarkable progress in
treating and even eliminating NTDs. Launched in 2006, over its history
the NTD Program has leveraged over $1.4 billion in Federal funding to
secure $29.9 billion in donated drugs and expanded activities to more
than 30 countries. In total, the program has distributed 3.1 billion
safe and effective treatments to more than 1.6 billion people.\1\ The
NTD Program has successfully curbed multiple NTDs, with 391 million
people no longer requiring treatment for lymphatic filariasis (also
called elephantiasis), 196 million people no longer requiring treatment
for trachoma, and 14.7 million people no longer requiring treatment for
onchocerciasis (or river blindness). Thirteen USAID-supported countries
have eliminated at least one NTD as a public health problem entirely,
including Bangladesh, Benin, Laos, and Mali in 2023. These figures show
the tremendous return on investment that Federal funding for NTD
treatment achieves. Every $1 invested by the U.S. government leverages
$26 in donated medicines for mass treatment campaigns. Combined with
the low, 50-cent cost of rapid-impact packages of medication that treat
an individual for the five most common NTDs, NTD treatment is one of
the best buys in public health. These gains cannot go to waste.
Estimates show that with the strong support of programs like the USAID
NTD program in the next 5 years, 15 additional countries will eliminate
at least one NTD as a public health problem.
We respectfully join the NTD Roundtable in calling for an increase
to $125 million for FY25 for the USAID NTD program to further
breakthrough delivery programs and ensure sufficient funding for
necessary research and product development. The United States joined
global leaders in signing the Kigali Declaration in 2022 to pledge
commitment to ending NTDs. It is important that the United States
provide robust resources to meet this pledge. An increased investment
could:
--Advance NTD elimination in priority countries, saving lives and
livelihoods;
--Expand the number of treatments in existing areas and add new
geographic areas, potentially those listed by the WHO as still
needing support;
--Increase capacity to move from control to elimination of
onchocerciasis in some areas;
--Expand urgently-needed investments in research and development
(R&D)--including diagnostics and drugs--for NTDs to ensure that
tools and strategies are available to overcome emerging
challenges;
--Support greater integration with complementary programs necessary
for the success of NTD prevention, control, and elimination
efforts, including elements of water, sanitation and hygiene;
nutrition; education; One Health; and vector control.
Malaria.--While we have seen tremendous success as a result of U.S.
funded efforts to eliminate malaria, the disease remains a significant
global health threat. Despite our ability to treat and prevent malaria,
it is still one of the leading causes of death and disease worldwide,
with nearly half the world's population living in the 87 countries and
territories where malaria is endemic.\2\ In 2022, there were about 249
million cases of malaria and an estimated 608,000 deaths.\3\ The
President's Malaria Initiative (PMI) has made remarkable progress
lowering these sobering numbers, saving 11.7 million lives, and
preventing 2 billion lives since 2000. That said, however, USAID must
continue to strengthen and invest in these programs and in R&D of new
tools to maintain progress. To advance these critical partnerships and
innovation of next-generation tools and approaches, we respectfully
request that Congress provide $925 million for the PMI for FY2025.
International Partnerships.--ASTMH encourages robust funding and
participation in important international partnerships such as the
Global Fund, diagnostic partnerships, vaccine partnerships, and the
World Health Organization.
Global Fund.--Investments in the Global Fund support local
prevention, treatment, and care services that strengthen overall local
health systems and economies. U.S. investments in the Global Fund have
and will continue to save lives and fight diseases--in endemic
countries, where American diplomats and service members are also
stationed, and at home, by preventing the spread of AIDS, tuberculosis,
and malaria.
Vaccine Partnerships.--U.S. contributions to Gavi, the Vaccine
Alliance, CEPI, and other vaccine initiatives, multiply the impact of
USAID programs through coordination and increased cost-effectiveness.
The U.S. should lead by example in support of effective international
partnerships of this sort.
Gavi, the Vaccine Alliance, is a public-private partnership that
has already helped to immunize a whole generation--more than a billion
children--against some of the world's deadliest diseases and prevented
more than 17 million deaths. This has helped to halve child mortality
in 78 lower-income countries since 2000. Gavi is also now playing an
essential role in delivering malaria vaccines to communities. With the
pre-qualification of two malaria vaccines, the ability to reduce child
illness and death from this disease is significant if those vaccines
can reach those in need. To fulfill Gavi's market shaping mission for
all child immunizations, and support efforts to increase the supply of
new malaria vaccines to meet demand by 2026, we respectfully urge you
to provide robust funding for the Maternal and Child Health (MCH)
account, including Gavi, in GHP for FY 2025.
World Health Organization (WHO).--The WHO plays a key role in
fostering scientific collaboration, providing global surveillance for
new diseases and outbreaks and supporting the sharing of vital data and
clinical samples. To protect lives, both at home and abroad, the U.S.
and global research community needs this information-sharing system and
the data that are generated to develop vaccines and treatments.
U.S. Government Coordination With Global Health Agencies and R&D
Entities.--Stronger and more permanent links between USAID, CDC, BARDA,
NIH, and ARPA-H and multilateral global health organizations and
product development groups would create a strong added value for US
researchers and global health agencies and, more importantly, for
partner ministries and their surveillance and laboratory programs.
conclusion
The vast majority of infectious diseases do not emerge in the U.S.;
instead, they thrive elsewhere, often long before a catalytic event
occurs that rapidly brings the threat to the U.S. It is not a question
of whether a new infectious disease outbreak will occur--it is a matter
of when and which dangerous disease it will be. For this reason,
Congress needs to support sustainable investments in U.S. global health
R&D to increase our knowledge, understanding, and tools to confront
infectious diseases. ASTMH appreciates the opportunity to share its
expertise and we hope you will provide the requested FY25 resources to
the programs identified.
---------------------------------------------------------------------------
\1\ USAID NTD Program Fact Sheet. https://
www.neglecteddiseases.gov/wp-content/uploads/2023/11/USAID-NTD-Fact-
Sheet-2023.pdf.
\2\ Malaria's Impact Worldwide. CDC. https://www.cdc.gov/malaria/
malaria_worldwide/impact.
html.
\3\ World Malaria Report (2023). https://www.who.int/teams/global-
malaria-programme/reports/world-malaria-report-2023.
[This statement was submitted by Linnie Golightly, MD, President.]
______
Prepared Statement of Armenian Assembly of America
Chairman Coons, Ranking Member Graham, and distinguished Members of
the subcommittee, the Armenian Assembly of America (Assembly) welcomes
the opportunity to provide the following testimony regarding U.S.
assistance and policy for the South Caucasus region generally and to
Armenia and the Armenian people specifically for Fiscal Year 2025.
assistance to armenia
A landlocked and centuries-old Christian nation, Armenia continues
to face existential threats from autocratic Azerbaijan and Turkey with
Azerbaijan's president boasting that ``We have destroyed Armenia,'' and
warning Armenia ``that the iron fist is in place.'' In lockstep with
Azerbaijan, Turkish parliamentarian Mustafa Destici publicly threatened
Armenia: ``I remind you once again that the Turkish nation has the
power to erase Armenia from history and geography, and that they stand
at the limit of our patience.''
Security Assistance & Democratic Reforms ($50 Million)--.As Armenia
continues to deepen relations with the West while still under great
threat and peril, we were encouraged by NATO Secretary-General Jens
Stoltenberg's visit to Armenia this March and his statement that ``NATO
supports Armenian sovereignty and territorial integrity.'' In addition
to NATO, the United States is uniquely positioned to ensure that
Armenia has the necessary tools and resources to protect its people and
defend its borders. Therefore, the Assembly strongly supports the
bipartisan request of 66 of your colleagues to include not less than
$20 million in Foreign Military Financing (FMF) and $10 Million in
International Military Education and Training (IMET) to bolster
Armenia's security and increase defense cooperation between the United
States and the Republic of Armenia. In addition, the Assembly also
supports the bipartisan request for $10 million in International
Narcotics and Law Enforcement (INCLE) funding ``to support ongoing law
enforcement and internal security reforms in Armenia.'' Per the
bipartisan request to assist Armenia ``in advancing ongoing executive
branch reforms, government transparency programs, reducing corruption,
and supporting public administration reforms in e-governance,'' the
Assembly also supports $10 million in funding within USAID's Office of
Transition Initiatives (OTI) account 'to support democratic reforms in
Armenia.'' Further, the Assembly strongly urges Congress and the
Administration to provide defensive weapons to further assist Armenia
in protecting its sovereignty. We are sure Americans would stand behind
the United States providing Armenians with the means to defend
themselves to prevent another Armenian Genocide.
Humanitarian Assistance ($250 Million)--.On September 6, 2023, the
Tom Lantos Human Rights Commission convened an emergency hearing
sounding the alarm on the impending catastrophe in Nagorno-Karabakh.
The Commission heard expert testimony from Professor David L. Philips,
Director of Columbia University's Artsakh Atrocities Project, and Luis
Moreno Ocampo, former Prosecutor at the International Criminal Court.
Mr. Ocampo testified that ``there is a reasonable basis to believe that
a genocide is being committed against Armenians living in Nagorno-
Karabakh in 2023,'' and spoke of ``the ongoing genocide by
starvation.'' On September 14, 2023, the Senate Foreign Relations
Committee held a hearing on Nagorno-Karabakh wherein Acting Assistant
Secretary of State for European Affairs Yuri Kim stated, ``the United
States will not countenance any action or effort--short-term or long-
term--to ethnically cleanse or commit other atrocities against the
Armenian population of Nagorno-Karabakh. The current humanitarian
situation is not acceptable.''
Despite these and similar warnings, just days later, on September
19, 2023, Azerbaijan with the support of Turkey and in coordination
with Russia, launched a military offensive against Nagorno-Karabakh
resulting in the death and injury of innocent civilians and the forced
displacement of some 120,000 indigenous Christian Armenians, including
30,000 children who fled to Armenia. This assault was the culmination
of Azerbaijan's genocidal campaign against the Armenian people that
started with the illegal blockade of the Lachin Corridor in December
2022, during which regrettably the Humanitarian Aid Corridor Act was
not enforced and placed the entire Armenian population of Nagorno-
Karabakh under siege and threat of starvation. Section 620I of the
Foreign Assistance Act of 1961 (22 USC 2378-1), also known as the
Humanitarian Aid Corridor Act (HACA) States that: ``No assistance shall
be furnished under this chapter or the Arms Export Control Act to any
country when it is made known to the President that the government of
such country prohibits or otherwise restricts, directly or indirectly,
the transport or delivery of United States humanitarian assistance.''
To address the ensuing humanitarian crisis caused by Azerbaijan's
ethnic cleansing, the Assembly urges the subcommittee to allocate not
less than $250 Millon under the Assistance to Europe, Eurasia, and
Central Asia (AEECA) account, of which funds should be made available
to Armenian American private voluntary organizations that have a proven
most cost effective. U.S. assistance can also play a role in preventing
further genocide.
the right of return
Ignoring the long-standing international peace process under the
auspices of the Organization for Security and Cooperation in Europe's
Minsk Group (co-chaired by the United States, France, and Russia), of
which the final status of Nagorno-Karabakh was to be determined and
violating the 1994 ceasefire agreed upon by Azerbaijan, Armenia, and
Nagorno-Karabakh, Azerbaijan ignited a full-scale war against Artsakh
and the Armenian people in September 2020. As a result, Armenians,
having already faced a genocide in the 20th century, were forced yet
again to rebuild in the wake of serious human losses and structural
devastation. Upwards of 100,000 people--mainly children, women, and the
elderly--were forcibly displaced from their homes, while hospitals,
schools, and churches were destroyed by missiles, cluster and white
phosphorus munitions, and drone strikes. The 2020 War followed by the
September 2023 offensive upended decades of U.S. efforts and support
for a peaceful resolution to the conflict on the basis of the Helsinki
Principles. American Enterprise Institute Senior Fellow Michael Rubin
laid bare Azerbaijan's public disdain for the United States in a May 9,
2024 article: ``In December 2020, just a month after President Ilham
Aliyev completed the first phase of Azerbaijan's conquest of Nagorno-
Karabakh, Andrew Schofer, the lead U.S. diplomat on the crisis,
traveled to Yerevan and Baku. Aliyev humiliated Schofer on live
television, bragging about how Azerbaijan's military prowess achieved
what American diplomacy did not and then asking, ``'Why are you
here?''' Former Ambassador Sam Brownback during a June 2023
Congressional hearing on ``Safeguarding the people of Nagorno-
Karabakh'' put it this way: ``This is a question of the rights of the
Armenian Christians of Nagorno-Karabakh: does this religious minority
have a right to survival in their ancestral homeland? The only just
answer is yes, they have the right not to be driven out, starved out or
blockaded by the government of Azerbaijan.''
The Assembly urges Congress to help ensure that the fundamental
right of return as well as the fundamental principles of democracy, the
right to self-determination, and the universal human rights of the
people of Artsakh are upheld. Additionally, the United States can and
should do more to hold Azerbaijan accountable for its gross human
rights violations.
section 907 of the freedom support act
Congress took a principled stand against Azerbaijani aggression
with the adoption of Section 907 of the FREEDOM Support Act in 1992 and
needs to do so again. Section 907 of the FREEDOM Support Act States
that U.S. funds ``may not be provided to the Government of Azerbaijan
until the President determines and so reports to the Congress, that the
Government of Azerbaijan is taking demonstrable steps to cease all
blockades and other offensive uses of force against Armenia and
Nagorno-Karabakh.'' In the aftermath of the September 11, 2001,
terrorist attack on American soil, a national security waiver was added
to Section 907. The exercise of the waiver is valid so long as it
``will not undermine or hamper ongoing efforts to negotiate a peaceful
settlement'' to the Nagorno Karabakh conflict or ``be used for
offensive purposes against Armenia.'' In exercising the waiver,
Congress required a report within 60 days ``specifying in detail the
following: (A) the nature and quantity of all training and assistance
provided to the Government of Azerbaijan [pursuant to the waiver]; (B)
the status of the military balance between Azerbaijan and Armenia and
the 3 impact of United States assistance on that balance; and (C) the
status of negotiations for a peaceful settlement between Armenia and
Azerbaijan and the impact of United States assistance on those
negotiations.'' A 2022 U.S. Government Accountability Office Report
found that the State Department did not ``provide Congress with all
required information--such as the impact of aid on the military balance
between Azerbaijan and Armenia.''
The 44-day War against Artsakh in 2020 resulted in a death toll of
thousands of soldiers some brutally beheaded according to Human Rights
Watch, and as documented by Columbia University's Institute for the
Study of Human Rights and its ``Project on Atrocities in Artsakh.'' In
addition, Azerbaijan's ongoing destruction of Armenian cultural and
religious heritage sites has been condemned by the European Parliament
and thoroughly documented by the Caucasus Heritage Watch (a research
program in heritage forensics led by archaeologists at Cornell and
Purdue Universities). The Assembly therefore urges that no U.S.
taxpayer dollars be used to support Azerbaijan, and that starts with
upholding the letter and spirit of Section 907 of the FREEDOM Support
Act and ensuring that Azerbaijan does not receive any U.S. military or
security assistance. We also fully support H.R. 7288, the Armenian
Protection Act of 2024, introduced by Congressman Michael Lawler and
urge that its language be incorporated into the Bill.
Additionally, we support the bipartisan request by 66 of your
colleagues for a report by the Secretary of State to the appropriate
congressional committees on ``how the Department of State coordinates
with the Department of the Treasury and other relevant Federal
departments and agencies to achieve behavioral change through sanctions
on individuals from the Republic of Azerbaijan that are involved in
corruption [and] human rights abuses . . . ''
The Assembly previously welcomed a House-passed amendment to the
Fiscal Year 2022 National Defense Authorization Act that authorized
``the President to impose sanctions on individuals accused of
committing human rights abuses or engaging in corruption.'' The level
of corruption and repression of the Aliyev regime in Azerbaijan is
widely reported, whether the ``Azerbaijani Laundromat'' scheme with a
$2.9 billion slush fund to whitewash its human rights record or the
``Pandora Papers'' revelations exposing even further its breadth-taking
scope. Further, based on credible reports that Azerbaijani forces
committed gross human rights violations during and after the 44-day
war, the Leahy Law and Global Magnitsky Human Rights Accountability Act
should be implemented to hold Azerbaijan accountable.
Azerbaijan should not be rewarded for its blatant and ongoing
violations against the Armenian people. The Assembly strongly urges the
inclusion of report language calling for the immediate release of all
POWs and captive civilians held by Azerbaijan, including Artsakh's
leaders who are being subjected to sham trials.
conclusion
As Ambassador Brownback testified last June before Congress
``Armenia is the Israel of Christendom. The first Christian nation on
Earth. Persecuted over several millennia by multiple empires, yet they
remain. Their tenacity and sheer pluck inspire every religious minority
around the world.'' History has shown that appeasing dictators only
serves to further embolden them. In this instance, the lack of
sanctions and the immediate enforcement of Section 907 as well as the
failure to implement HACA allowed, instead of preventing, ethnic
cleansing and genocide. The United States has taken a strong stand in
support of democracy in Ukraine and should do the same for the Armenian
people who also face existential threats. The Assembly's position is
clear: stand up for democracy and human rights; oppose genocide and
hold Azerbaijan accountable by imposing sanctions.
[This statement was submitted by Bryan Ardouny, Executive
Director.]
______
Prepared Statement of The Asia Foundation
Chairman Coons, Ranking Member Graham, and Members of the subcommittee:
I am honored to submit this testimony on behalf of The Asia
Foundation (TAF). We are deeply grateful for the confidence the
Committee has shown in TAF. For 70 years, The Asia Foundation has
advanced the interests of the United States in supporting democracy,
effective and responsive governance, political rights and economic
participation of women, climate resilience, free markets and economic
growth, and peaceful relations in the Indo-Pacific.
TAF is a non-profit, non-governmental organization established in
1954 and headquartered in San Francisco. An annual appropriation is
authorized under The Asia Foundation Act of 1983 (22 USC 4402). The act
acknowledged the importance of sustained funding for TAF and endorsed
its ongoing value and contributions to U.S. interests in the Indo-
Pacific. We pledge to you that, with your continuing support, TAF will
sustain and expand its impactful work across the Indo-Pacific. To build
on Congress's investment, The Asia Foundation is requesting $23,000,000
for Fiscal Year 2025, one million above the level as enacted in FY2024
and the President's budget request.
TAF operates on the ground in more than 20 countries in Asia and
the Pacific Islands through 17 permanent country offices. Our sustained
presence in the countries where we work enables us to be a deeply
trusted partner and to build relationships with reform-minded
individuals and organizations that merit our help as they seek to
advance shared goals and interests. We are confident that the
relationships we nurture and the capabilities we expand today will
ensure future security cooperation, development partnerships, rule of
law, and fair trade between the U.S. and the Indo-Pacific.
Appropriated funding is critical to TAF' s ability to continue
operating as a unique American asset across the Indo-Pacific region.
TAF is an especially cost-effective investment for the Congress in a
time of budget constraints. Making the most of and leveraging taxpayer
dollars, TAF continues to diversify its funding, raising roughly four
dollars from other sources for every dollar of direct appropriation it
receives.
Sufficient appropriated funding is essential to maintaining TAF's
robust and persistent footprint across the Indo-Pacific, specifically
in countries of priority interest to the United States. No other
organization has the long history, presence, and commitment to
localization of The Asia Foundation in critically important countries
such as the Philippines, India, Indonesia, Vietnam, Malaysia, Thailand
and Sri Lanka. TAF's regional office in the Pacific Islands contribute
to expanding democratic and effective governance and values in a
priority area for the U.S. Trust is built on continuity and deep
understanding of local context. TAF is a steady and highly trusted
partner to local civil society organizations and individual reformers.
The U.S. has prioritized support for democracy, human rights, and
climate resilience in its work to advance prosperity, transparency, and
adherence to a rules-based order in the Indo-Pacific. TAF's ability to
help achieve these goals is more important than ever. New challenges to
U.S. interests in the region and TAF's unique ability to respond to
those challenges justifies the request for an appropriation of $23
million.
How is The Asia Foundation Unique Among Organizations Operating in the
Indo-Pacific?
The Asia Foundation is first and foremost a field-based
organization. Through a cost-effective combination of grant-making and
direct program operations managed by our 17 permanent offices in Asia
and the Pacific, TAF maximizes program impact while keeping costs low.
Our highly qualified teams in our country offices undertake policy-
savvy research to inform pragmatic activities across the region,
including perception surveys, surveys on conflict and violence,
analyses of gender equality, economic scorecards, rapid assessments of
pandemic effects, and assessments regarding natural disaster relief and
other critical issues. These types of research and analysis enable us
to craft and implement evidence-based solutions.
TAF promotes reform by providing training, technical assistance,
support for pilot projects, and seed funding to hundreds of established
and emerging Asian and Pacific partner organizations, reform-minded
individuals, and future leaders. These longstanding investments in
human capital have paid off. TAF has built important relationships with
Asian and Pacific governments and leaders and at the same time
maintains strong links to local communities based on decades of trust
and ongoing engagement. Former TAF grantees have become leaders and
change-makers in government, industry, academia, and an increasingly
diverse civil society.
As country specialists, our staff based in Asia and the Pacific act
as a substantive resource for program partners and implementers. TAF
also serves as a resource on political and economic trends and issues
for U.S. Embassies across Asia and the Pacific, including in places
where U.S. officials' movements and outreach have been circumscribed
due to security concerns.
TAF also frequently responds to U.S. Embassy requests for American
Centers through TAF' s innovative digital and print library Let's Read!
This freely accessible library fills an important void in advancing
childhood literacy and critical thinking skills by providing
unprecedented access to new children's books in English and local
languages across Asia and the Pacific, especially in remote locations.
TAF has enabled the creation of over 10,500 books in 60 languages with
nearly five million readers over the last 12 months, and the reach
continues to grow. TAF Book Labs provide a venue for local writers and
illustrators to develop new books. For example, in Pakistan, two Let's
Read Corners, a unique digital library program in Karachi, serve five
under-resourced schools with over 1,200 primary school students to
digitally access books. The program also reaches school libraries,
supports read aloud at-home programs and sessions to increase literacy.
How Does The Asia Foundation Contribute to U.S. Interests in the Indo-
Pacific Region?
The U.S. has vital economic, political and security interests in
the Indo-Pacific. TAF focuses on country and regional programs that
promote stability and advance U.S. interests. TAF's work has led to
better governance, stronger economies, and empowered citizens in many
parts of the region. In turn, these development results have helped
deepen economic relationships and increase security cooperation between
Asian and Pacific Island countries and the United States. The core
areas of TAF's work directly contribute to U.S. strategic goals.
TAF programs reinforce U.S. policy priorities and interests by
improving the business policy environment in Asian countries through
better economic governance, procurement practices, and transparency.
TAF convenes dialogues with American and Asian policymakers to discuss
common approaches to development assistance and partnership-building.
TAF works with partners to address the conditions facing countries with
growing economies that have progressed beyond being development
assistance recipients but still face governance and other challenges
and which are key economic and security partners of the U.S., such as
Malaysia, Vietnam and Thailand. Development takes time, and
appropriated dollars allow TAF to make long-term investments.
For instance, TAF is the major partner of the Department of
Commerce in the Indo-Pacific Economic Framework's Digital Skills
Initiative. TAF cooperates with Google.org on Go Digital ASEAN, an
initiative designed to equip micro, small and medium enterprises and
participants in the emerging workforce with digital skills and tools
that expand economic opportunity across all 10 ASEAN countries. The
initiative has so far trained nearly 160,000 individuals across the
region, 63% of whom are women from underserved communities, and has
been praised by APEC for its high impact. TAF also cooperates with
other U.S.-based companies on digital skills training through its
Future Skills Alliance, improving digital literacy and career-ready
skills for the region's most marginalized communities.
What Would the Foundation do with the Requested Funding?
FY 2025 funding at $23 million would position The Asia Foundation
to maintain and expand programs in countries struggling with
corruption, internal conflicts, and weak democratic processes and
institutions. TAF' s programs have deepened over the years to improve
governance at the National and sub-national levels, and advance women's
empowerment. TAF conducts primary research and uses evidence-based
approaches to inform our own programs, research work that also is
shared, valued and used by other organizations and donor governments.
GovAsia, our quarterly publication, provides a platform for TAF and its
partners to examine the critical social, economic, and political
problems facing citizens and governments across Asia and the Pacific,
drawing on the results TAF programs produce and the methods we
innovate.
In FY2025, TAF will expand its programs even further in the
Pacific, an area of key U.S. interest. TAF is currently operating in
six Pacific countries, Fiji, Papua New Guinea, Palau, Republic of
Marshall Islands, Tonga and Vanuatu. With additional funding, we will
expand programs and research to 11 countries, including the Solomon
Islands, Kiribati, Federated States of Micronesia, Tuvalu and Nauru.
TAF is well positioned to bolster democratic institutions, build civil
society, expand economic growth through technology, and expand
opportunities and protections for women, including through a major
counter-trafficking initiative. TAF will also expand climate resilience
initiatives in this vulnerable region of the world.
Also in FY2025, TAF will deploy new technology-driven programs to
address economic empowerment. We will expand digital skills and
workforce training opportunities, particularly for women and
marginalized populations in Pacific Island nations. TAF has embarked on
a new cybersecurity effort in partnership with Google in 13 Asian
countries to bolster cybersecurity capabilities of 300,000 underserved
micro and small businesses, non-profit organizations, and social
enterprises. TAF's technology program also offers innovative solutions
to problems of unequal access to e-commerce and cooperates with APEC on
the annual APEC App Challenge, which aims to address economic
priorities using technology for small business owners to participate in
and benefit from the global digital marketplace.
Just a few varied examples of our many successful programs
implemented in the Indo-Pacific during FY2023 include:
1. TAF's ``Pacific RISE-CTIP'' program, with funds from USAID, is
combatting trafficking in persons, working with governments,
civil society organizations, and businesses in Fiji, Palau,
Republic of Marshall Islands, Tonga and Papua New Guinea to
raise awareness about human trafficking, embed standard
operating processes, upgrade national action plans, provide
protection services, and craft guidance on prosecution
pathways. The Pacific is now a transit, source and destination
area for sex and labor trafficking. Resources, shelter and
legal services are provided, along with skills training for
women and girls who have been sex trafficked, so they have
alternative sources of income. TAF also strengthens civil
society organizations leading counselling, collection of
documentary evidence, and work with prosecutors and police.
2. TAF played a pivotal role in reopening opportunities for
unskilled Bangladeshi workers in the Maldives. TAF supported
civil society organizations in Bangladesh and the Maldives to
devise policies to mitigate the impact of irregular migration
and curb the exploitation and unlawful detention of migrants.
The initiative led to a track 1.5 dialogue conducted in Male in
July 2023, where stakeholders engaged on ways to solve labor
migration challenges. Giving credit to TAF efforts, the
Maldives Ministry of Homeland Security and Technology in August
2023 announced the re-opening of opportunities for workers,
addressing challenges such as exploitation, discrimination, and
limited access to health and justice, improving the lives of
Bangladeshi workers while also strengthening bilateral
relations between Bangladesh and the Maldives.
3. TAF launched its 8th Tatoli! national public perception survey in
Timor-Leste. The launch took place 3 months after a change of
government in Timor-Leste. During the launch, The Vice Prime
Minister emphasized the importance of Tatoli! to understanding
and developing policies that address the priorities of Timorese
citizens, and the planned utilization of Tatoli! findings to
influence policy.
conclusion
Funding at $23 million will allow The Asia Foundation to invest in
innovative programs that have received Congressional encouragement. We
believe TAF's track record demonstrates that we can leverage
appropriated dollars to secure greater resources and make efficient use
of appropriated funds to advance U.S. interests in the Indo-Pacific
region. We appreciate the Committee's longstanding trust in and support
for The Asia Foundation. We respectfully urge that the Committee
support FY2025 funding for the Asia Foundation at $23 million.
[This statement was submitted by Laurel E. Miller, President.]
______
Prepared Statement of Basic Education Coalition
Chair Coons, Ranking Member Graham, and Members of the subcommittee,
I am pleased to submit testimony on behalf of the Basic Education
Coalition, a group of leading international development organizations
and academic institutions working together to promote global peace and
prosperity through education. My name is Eric Eversmann, and I am the
Co-Chair of the Coalition's Board of Directors as well as the Senior
Director of Education at Save the Children. To enhance U.S. foreign
assistance efforts and improve educational opportunities for children
in need, we urge Congress to provide $1.1 billion for Basic Education
in the Fiscal Year 2025 State, Foreign Operations, and Related Programs
bill, with at least $900 million provided as bilateral U.S. Government
assistance. Such investments should not come at the expense of other
poverty-focused development and humanitarian assistance programs.
Our Coalition is grateful for the subcommittee's longstanding
bipartisan commitment to fight extreme poverty and improve access to
education for children around the world, and we thank you for your
efforts to protect the Fiscal Year 2024 topline funding levels for the
Department of State, the U.S. Agency for International Development
(USAID), and other important programs throughout the House and Senate
conference process. While the overarching funding bill maintains U.S.
leadership in development and humanitarian assistance, Basic Education
ultimately received $922 million, or a $48 million cut to the Fiscal
Year 2023 enacted level, for Fiscal Year 2024.
Despite the extremely tight fiscal environment, now is not the time
to scale back our efforts. To respond to increasing global need,
reaffirm the United States' commitment to the Sustainable Development
Goals, and combat competitors seeking to promote non-democratic ideals,
we urge that you prioritize funding for Basic Education to expand
access to and improve the quality of education in our partner countries
in Fiscal Year 2025.
U.S. Government leadership is needed now more than ever before.
According to the World Bank, we are in the midst of a global learning
crisis: over 70 percent of children in low- and middle-income countries
are unable to read and understand a basic text or demonstrate basic
mathematical proficiency by age 10.\1\ We are also facing an
unprecedented democracy crisis. According to Freedom House, global
freedom declined for the 18th consecutive year in 2023. Authoritarian
adversaries, including China, Iran, and Russia, continue to threaten
the sovereignty and self-determination of countries around the globe.
The U.S. has, and must continue, to play a leading role in promoting
democratic values, processes, and institutions.\2\ Education is
paramount to tackling the democracy crisis.
Access to quality, inclusive basic education is integral to
advancing U.S. foreign policy goals, and we therefore urge the full
funding of the recently updated U.S. Government Strategy on Basic
Education, which will guide U.S. international education efforts for
the next 5 years.\3\ Adapting from the experience of COVID, the U.S.
Government has transformed its approach to Basic Education assistance
to ensure that education systems around the world are prepared for
future shocks--whether they come in the form of a global pandemic,
conflict, humanitarian crisis, or natural disaster. In Fiscal Year 2022
alone, the U.S. Government was reached over 32 million learners in 97
countries around the world, distributed over 12 million textbooks and
other learning materials, and trained and provided professional
development to over 820,000 teachers and educators.\4\
Education helps to empower communities and societies to prosper and
thrive. It promotes economic growth and reduces poverty while
addressing harmful social norms and inequalities. In fact, the most
recent United Nations Sustainable Development Report suggests that
providing quality education (SDG 4) for all children is the most
important key to achieving sustainable development in the long term.\5\
As such, the future development of nations around the world is
predicated upon children and youth acquiring the skills needed to lead
their countries into more prosperous, equitable, democratic, and
inclusive societies.
The COVID-19 pandemic caused the largest disruption to education in
modern history, impacting the lives and education of over 90 percent of
the world's children and youth.\6\ Now, more than ever, U.S. leadership
in international Basic Education is required to allow USAID and its
partners to expand Basic Education programs to vulnerable populations,
address gaps in education service delivery, and strengthen
international education systems. These investments will lay the
foundation for improved health and nutrition outcomes,\7\ slower
population growth,\8\ democracy and political stability, and promotes
greater gender equality, understanding, tolerance, and hope.\9\
In many low- and middle-income countries, too many students arrive
at primary school off track developmentally and lacking the foundation
that best supports classroom learning. A study conducted before the
pandemic estimated that 250 million children globally were at risk of
failing to meet their developmental milestones,\10\ meaning nearly one-
third of the world's children have entered elementary grades without
the cognitive, social-emotional, motor, and language skills needed to
fulfill their potential. U.S. foreign assistance must expand programs
that improve early childhood care and education, including pre-primary
education and multi-sectoral early childhood development interventions
for children ages 0-8. While inclusion of children with disabilities
and marginalized populations is essential to quality education at all
levels, it is especially important during the early years, as they are
the foundation and gateway to fruitful, lifelong learning. If the early
years are exclusive of these populations, future schooling will
continue to be exclusive as well. Every child deserves the best
possible foundation for lifelong learning, and the U.S. government
should seize this opportunity to do more for more the world's youngest
children and their families.
Further along the educational pipeline, U.S. Government leadership
is also critical for children making the transition from primary to
secondary school so that the growing youth population has the
opportunity for gainful employment and personal achievement.\11\
Higher-level skills that are acquired in secondary school should
prepare students for participation in the fast-paced, rapidly changing
global economy. Automated technologies will continue to replace low-
skilled labor and employers will increasingly demand technical, social,
and critical-thinking skills. Digital literacy and information
engagement skills (for example, the ability to identify misinformation,
build emotional resilience to it, and reflect on one's own information
consumption), will be necessary for the positive development of
children and youth moving forward.
It is also imperative that U.S. foreign assistance helps tackle
gender-related barriers to educational attainment, especially in
countries with persistent gender disparity in school enrollment and
completion, particularly in secondary school when girls are most likely
to drop out. In many contexts, entrenched social and cultural norms can
limit girls' access to quality learning opportunities. Girls face risks
of child marriage, gender-based violence, seclusion during
menstruation, and greater responsibility for household labor than boys.
Further barriers to girls' attendance and success at school include
lack of access to water and sanitation facilities during times of
menstruation, unsafe passage to and from school, school-related gender-
based violence, inequitable teaching practices, and prohibitive school
fees. To address these barriers, girls' education programs must promote
holistic and multi-sectoral solutions that prioritize gender equity and
broaden support for girls' education at every level of society.
As COVID-19 has shown, resilience relies on the capability,
empowerment, and ingenuity of people and leadership at the familial,
communal, regional, and national levels. Local leaders and educators
can engage families and communities, respond quickly to changing
demands, and innovate in real time to adaptively meet local needs such
as distance learning, remedial learning, girls' education, and skills
development. Local leadership enables communities to respond to crises
and emerge stronger and more resilient. U.S. foreign assistance should
continue to support locally led, people-first approaches that develop
leadership skills in USG-funded program participants and partners,
including by elevating the voices of adolescents and youth.\12\ To
ensure that aid leads to sustainable change, leadership development
programs should be created at the country level in consultation with
communal, regional, and national stakeholders, with the goal of
spurring local innovation and knowledge sharing.
Further developing the education workforce will also be necessary
to sustainably improve a global education system that supports learners
and learning for the future. U.S foreign assistance should seek to
strengthen the education workforce (including through the recruitment
of diverse talent) and address the quality of teacher pre-service and
in-service training and certification programs. The Education
Commission recommends that support for education should focus on
improving teacher professional development, provide new roles and
pathways for advancement, develop learning teams of educators who have
distributed expertise, and build networks to facilitate skill and
knowledge sharing.\13\
Finally, we've learned from COVID-19 and other recent crises that
school systems need to be prepared and resourced to facilitate and
support extended periods of remote learning. Lack of access to
technology, the internet, toys, books, and other learning materials
furthers the learning equity gap for children living in low-income
households, those from marginalized communities, and those with
disabilities, and should be addressed to ensure that learning can
continue for all children in future emergencies. We applaud the
commitments made in the recently updated U.S. Government Strategy on
International Basic Education to include education as part of the
immediate response to an emergency, including by fostering improved
collaboration across U.S. humanitarian and development departments and
agencies.
Funding for Basic Education through the SFOPS bill enables USAID
and implementing partner organizations to work together in some of the
world's most challenging contexts. This assistance is critical from an
educational and development standpoint while also promoting long-term
domestic and international security and economic prosperity.
The Basic Education Coalition looks forward to working with
Congress to ensure that quality education remains a core pillar of our
foreign assistance and that the recently updated U.S. Government
Strategy on International Basic Education is implemented successfully.
Together, we can help strengthen education systems, alleviate poverty,
foster stability and security, and spur economic growth, both abroad
and here at home.
Thank you for your continued support and for your consideration of
our request.
---------------------------------------------------------------------------
\1\ World Bank. (2022, June 23), the State of Global Learning
Poverty: 2022 Update, https://thedocs.worldbank.org/en/doc/
e52f55322528903b27f1b7e61238e416-0200022022/original/Learn
ing-poverty-report-2022-06-921-final-V7-0-conferenceEdition.pdf.
\2\ Freedom House, ``Freedom in the World 2024,'' https://
freedomhouse.org/sites/default/files/2024-02/
FIW_2024_DigitalBooklet.pdf.
\3\ USAID, ``U.S. Government Strategy on Basic Education,'' https:/
/www.usaid.gov/sites/default/files/2024-04/USG-Education-
Strategy_FY2023-2024_FINAL_digital_single-508.pdf.
\4\ ``Fiscal Year 2022 U.S. Government Strategy Report to
Congress,'' USAID, https://www.edu-links.org/resources/fiscal-year-
2022-us-government-strategy-report-congress.
\5\ United Nations, ``Sustainable Development Report 2023:
Implementing the SDG Stimulus'', https://s3.amazonaws.com/
sustainabledevelopment.report/2023/2023-sustainable-development-
report.pdf.
\6\ United Nations Educational, Scientific and Cultural
Organization, ``COVID-19 Impact on Education.''.
\7\ Mondal, Md Nazrul Islam and Mahendran Shitan, ``Factors
affecting the HIV/AIDS epidemic: an ecological analysis of global
data,'' African Health Sciences (2013): p.: 301-310.
\8\ Murray, Sam, ``How Education Can Moderate Population Growth,''
World Economic Forum (July 27, 2015).
\9\ Sperling, Gene, and Rebecca Winthrop, ``What works in girls'
education,'' The Brookings Institution (2016).
\10\ Black, Maureen, Susan Walker, Lia Fernald, et al., ``Early
childhood development coming of age: science through the life course,''
The Lancet, October 4, 2016.
\11\ The International Commission on Financing Global Education
Opportunity, ``The Learning Generation: Investing in Education for a
Changing World,'' 2016.
\12\ Adelman, Melissa, Anshul Arora, Wendy Kopp, et al.,
``Unlocking sustained outcomes with a `people first' approach to
development,'' 2020.
\13\ The Education Commission, ``Transforming the Education
Workforce: Learning Teams for a Learning Generation,'' 2019.
[This statement was submitted by Eric Eversmann, Co-Chair of the of
Directors and Senior Director of Education at Save the Children.]
______
Prepared Statement of Better World Campaign
Thank you for the opportunity to provide written testimony for the
record in support of a robust foreign affairs budget in FY2025. The
accounts funded by this legislation support U.S. assessed and voluntary
contributions to the United Nations. Within the State Department, we
request $1.676 billion for the Contributions to International
Organizations (CIO) account and $459.8 million for the International
Organizations and Programs (IO&P) account. We also recommend $1.673
billion for the Contributions for International Peacekeeping Activities
(CIPA) account and $420.6 million for the Peacekeeping Operations (PKO)
account. We support bill language that enables us to pay our
contributions to UN peacekeeping at the fully assessed rate. In
addition to peacekeeping-related funding, we hope you will also
consider funding important bilateral and multilateral health programs,
including family planning programs ($1.740 billion, including $116
million for the UN Population Fund), the U.S. President's Malaria
Initiative ($925 million), the Global Fund to Fight AIDS, Tuberculosis
and Malaria ($1.2 billion), Gavi, the Vaccine Alliance ($340 million),
and USAID's polio program ($165 million).
the importance of u.s. engagement with the un
The State Department's CIO account funds U.S. assessments for the
UN Regular Budget (UNRB) and more than 40 other international
organizations. Last year, the CIO account was dramatically cut in the
House and included for the first time ever, a zeroing out of the UNRB.
The Senate Committee on Appropriations rightly rejected the funding
prohibitions, and we sincerely hope this subcommittee will again push
back on similar efforts in the House and provide the necessary
resources. Despite the size of the organization and its global reach,
the UNRB is equivalent to just one-quarter of the annual budget of the
state of Rhode Island.
The UN Regular Budget supports efforts to address threats to
international peace and security by monitoring global implementation of
legally-binding multilateral sanctions measures adopted by the UN
Security Council. From its seat on the Council, the U.S. has
successfully pushed for the adoption of robust sanctions--including
asset freezes, travel bans, arms embargoes, trade restrictions, and
other measures--targeting the malign activities of terrorist groups
(Al-Qaeda and ISIS) and rogue States that seek to obtain weapons of
mass destruction (North Korea). This work--critical to the National
security of both the U.S. and its allies--would decrease, as would our
ability to mobilize coalitions if the U.S. cuts off all funding for the
UNRB. The UNRB is also a key source of funding for the UN's human
rights work, including investigatory mechanisms that seek to document
and expose human rights violations in a host of contexts, from Russia's
invasion of Ukraine, to Iran's suppression of political dissent, to the
Taliban's escalating suppression of women's rights. Cutting our UNRB
contribution would also give countries hostile to international human
rights norms--especially Russia and China--ammunition to call for all
funding for these activities to be cut from the UN budget entirely.
It is equally essential to ensure the timely delivery of U.S.
contributions to UN agencies and activities. Since the 1980s, the
U.S.--unlike almost every other country--has put forward a policy of
paying UN Regular Budget dues at least 9 months late, even though the
UN's fiscal year begins on January 1. This practice has exacerbated
major liquidity challenges at the UN, repeatedly threatening the
organization's ability to pay staff and administrative costs and
forcing the UN Secretary-General to periodically institute hiring
restrictions and tap cash reserves set aside for peacekeeping. This
practice undermines the ability of the UN to operate, ultimately
hurting U.S. interests abroad.
In addition to supporting the U.S. contribution to the UNRB and all
other international organizations funded by this account, our
recommendation for CIO includes $100 million for the UN Educational,
Scientific, and Cultural Organization (UNESCO), which the U.S. defunded
in 2011 and withdrew from entirely in 2018, but formally rejoined in
July 2023. Our funding recommendation would allow for $75 million in
dues and a $25 million down payment to be made to begin addressing U.S.
arrears to UNESCO, matching the President's request. It is also
important that FY2025 State/Foreign Operations legislation extends
waiver authority allowing the U.S. to make financial contributions to
UNESCO beyond the current sunset date of September 30, 2025.
We were heartened by the U.S. decision to rejoin UNESCO. The
organization works to promote a number of U.S. priorities, including
international Holocaust education, press freedom, and the protection of
threatened cultural heritage sites. Our absence from UNESCO threw the
organization into turmoil, threatening many of these programs and
providing an opening for China--which became UNESCO's largest financial
contributor--to exert greater influence over its work. It is a clear
example of how counter-productive U.S. withdrawal from UN entities
remains. Now that the U.S. is back, we can drive the agenda once again,
including how to ensure the ethical development and use of artificial
intelligence (AI).
Another key aspect of the UN's global footprint is its peacekeeping
operations. Each and every day, tens of thousands of UN peacekeepers
serve in some of the world's most volatile conflict zones, charged with
ensuring stability, protecting civilians from violence, facilitating
the delivery of humanitarian aid, training local police forces to
ensure order, and supporting democratic elections. These efforts
promote core U.S. foreign policy interests because peacekeeping
operations are effective at reducing the intensity of civil wars,
preventing them from spilling over borders, and preventing dormant
conflicts from reigniting, all while not requiring the U.S. to put its
own soldiers in the field. They are also cost-effective, having been
found on several occasions by the Government Accountability Office to
be one-eighth the cost to American taxpayers of deploying U.S. forces.
Unfortunately, in recent years that influence has been tested by
the emergence of new global powers and the U.S.'s own failure to fully
meet its commitments to the organization. Since FY2017, our Nation has
accrued more than $1.3 billion in arrears because of Congressional
enforcement of the legislative cap on peacekeeping contributions. This
growing debt negatively impacts U.S. interests in several ways. U.S.
arrears help reduce and delay reimbursement payments to the low- and
middle-income countries that provide the vast majority of uniformed
peacekeepers currently serving in the field as well as critical
equipment that allows peacekeeping missions to fulfill their mandates.
Our arrears also alienate allies who do pay their dues on time and in
full, making it less likely that our agenda around peacekeeping reform
is taken seriously.
More needs to be done to address this issue. I am therefore hopeful
that in addition to fully funding the CIO, this subcommittee will
support waiving the peacekeeping cap and provide additional funds under
the CIPA account to begin paying down our arrears, as it has so
generously done in the past. BWC's recommendation for CIPA includes
sufficient funds to pay the estimated FY25 peacekeeping dues at the
full assessed rate (approximately $1.329 billion), plus an additional
$344 million as a down payment to begin paying our cap-related arrears.
investing in global health
The World Health Organization (WHO) plays a central role in
amplifying U.S. investments in global health. With direct relationships
in 150 health ministries throughout the world and the ability to engage
with countries in ways that no single country can replicate, the WHO
plays a lead role as a technical partner and implementor in key U.S.
programs like the President's Emergency Plan for AIDS Relief (PEPFAR),
global immunizations, malaria, and ongoing pandemic preparedness and
response efforts. Our FY25 CIO figure includes slightly increased
funding for WHO, matching the President's request, in recognition of
the agreement at the 2023 World Health Assembly (WHA). At WHA, Member
States agreed to a gradual increase in WHO assessed contributions to
increase predictability in financing to address pressing global health
challenges and ensure maximum impact of U.S. government health
investments.
The U.S. also provides voluntarily funds for a variety of WHO
programs that are vital to U.S. foreign policy, global health, and
national security priorities. Paying our dues and strengthening the
organization through partnership (the U.S. contributes more scientists
through secondments than any other country) gives us leverage to help
reform the organization and the larger pandemic preparedness
architecture. U.S. engagement is also critical to reforming the WHO and
holding it accountable.
The work of the WHO has unquestionably saved millions of lives and
improved the quality of life for billions more. Through its partnership
with the U.S. and all Member States, it has achieved extraordinary
success, including the eradication of smallpox and dramatically
reducing vaccine-preventable diseases and all-cause mortality.
Moreover, because health extends beyond the clinic walls, the WHO can
be credited for navigating the intersection of global health, politics,
and socioeconomics in ways no other health agency can--largely because
no other body is centrally positioned within a larger organization
where its influence ensures consideration of health in all policies. No
equivalent organization exists with the WHO's scope to coordinate
disease surveillance, enhance global health research and development,
procure health commodities, set global technical standards, or prevent
the spread of cross-national infectious disease.
As COVID-19 has shown us over the last 2 years, health systems
around the world can be threatened in the time it takes a plane to
round the globe. U.S. investment in the Global Polio Eradication
Initiative (GPEI) has strengthened country health systems and provided
vital tools, infrastructure, and skilled workers capable of not only
eradicating polio but fighting other vaccine-preventable diseases, like
measles and yellow fever. We have an urgent opportunity to End Polio
once and for all. Endemic transmission continues to be very restricted
in Afghanistan and Pakistan and was 60% lower in 2023 than the previous
year. The genetic diversity of wild poliovirus is shrinking in these
two countries, with only two clusters circulating in 2023 down from 16
in 2020. An outbreak of wild poliovirus of Pakistani origin in Malawi
and Mozambique in early 2022 was also stopped thanks to aggressive GPEI
outbreak response. But as long as polio exists anywhere, it is a threat
anywhere. Supporting the State and Foreign Operations contributions to
GPEI at $165 million will be important to ending polio by supporting
vaccine procurement, outbreak response, immunization campaigns, and
disease surveillance.
Since its founding in 2000, Gavi, the Vaccine Alliance, has played
a vital role in the purchase and delivery of life-saving vaccines for
children in the world's poorest countries. During the pandemic, Gavi
co-led the global solution to accelerate the manufacture and
distribution of COVID-19 vaccines, in addition to its usual work to
reduce preventable childhood deaths through routine immunizations. Gavi
has delivered more than 1.5 billion vaccines, many of which were
donated by the U.S. While routine immunizations and other global health
activities suffered at the beginning of the pandemic, Gavi has been
able to make up for the disruptions and ensure that 78% of the world's
children get their shots. In addition, Gavi is working to ensure that
two new malaria vaccines are available to children in regions hardest
hit by malaria. These vaccines not only save lives from malaria, but
data also show they result in a 13% reduction in all-cause mortality
among children. Ensuring Gavi is funded at $340 million, and including
a new multi-year pledge, will help it expand to cover new vaccines,
including the malaria vaccines, and support its core operations during
its next Strategic Cycle from 2026-2030.
Despite strides in expanding access to insecticide-treated nets and
medicines to help prevent malaria, particularly for young children and
pregnant women, the number of malaria cases has surpassed pre-pandemic
levels, according to the WHO's 2023 World Malaria Report. In 2022,
there were an estimated 249 million malaria cases globally, an
additional 16 million cases over the 2019 level. The global malaria
response has faced a number of mounting threats, such as drug and
insecticide resistance, layered humanitarian crises, resource
constraints, new invasive mosquito species on the African continent,
and the impact of more severe and frequent natural disasters
exacerbated by climate change. To date, malaria investments have
averted nearly 12 million deaths and more than 2 billion cases of
disease and represent one of the biggest-if not the biggest-returns on
investment in global health in recent years. While this tremendous
progress should be celebrated, it is also a stark reminder of how much
more must be done. Still today, malaria is responsible for the death of
one child every minute.
Malaria already places a strain on health care systems throughout
the WHO Africa Region. The continent accounts for 93.6% of malaria
cases and 95.4% of malaria deaths globally, with 78.1% of all deaths
from malaria in this region among children aged under 5 years. The
Seventh Replenishment of the Global Fund set an ambitious goal of $8
billion over 3 years to jumpstart progress in ending the world's three
most ancient diseases. The U.S. committed $6 billion over 3 years-$2
billion annually-which is matched with $2 from other donors. The U.S.
fulfilled its first tranche of a $2 billion contribution in FY2023 and
funded $1.65 billion in FY2024, fulfilling its commitment to fund up to
$6 billion within the U.S. matching requirements set in statute. The
Global Fund works with the President's Malaria Initiative (PMI)-
currently operating in 27 countries in sub-Saharan Africa and the
Greater Mekong Subregion in Asia-National Malaria Control Programs, and
Gavi, the Vaccine Alliance, to optimize and scale up proven, cost-
effective interventions such as bed nets, indoor residual spraying,
anti-malarials, rapid diagnostic tests, and vaccines.
Within the IO&P account, the UN Population Fund (UNFPA) provides
safe birthing and dignity kits after disasters, helps install solar
lighting in refugee camps to help prevent gender-based violence, and
provides contraceptives in more than 150 countries to prevent maternal
mortality and improve the status of women. In Ukraine, the UNFPA has
undertaken a number of actions to help women escaping the horrors of
Russia's invasion, from helping expectant mothers who have seen their
maternity wards bombed to dispatching mobile hospitals to provide
sexual and reproductive health services around the country. By fully
funding access to contraceptives, unintended pregnancies would drop by
70%, maternal deaths would drop by 67%, and newborn deaths would drop
by 77%. To meet the unmet need, the U.S. share of international
reproductive health and family planning funding would be $1.74 billion
(including $116 million for UNFPA). With respect to the UN Relief and
Works Agency for Palestine Refugees in the Near East (UNRWA), it will
have a key role in managing civilian life in the Gaza Strip after the
war concludes. There will need to be a massive reconstruction effort
undertaken, in addition to meeting ongoing humanitarian needs, and
UNRWA remains an essential humanitarian actor in the region. We call
for the funding prohibition to be lifted and funding restored in the
FY2025 State/Foreign Operations bill.
[This statement was submitted by Peter Yeo, President, Better World
Campaign.]
______
Prepared Statement of Bread for the World
Members of the Committee, I am Reverend Eugene Cho, President and
CEO of Bread for the World. I want to start by thanking you both,
Chairman Chris Coons and Ranking Member Lindsey Graham, for your years
of support for critical food assistance programs. You both, alongside
the United States Agency for International Development (USAID) and the
United States Department of Agriculture (USDA), have been champions of
addressing hunger, and we are so grateful for your bipartisan support
for this work. We look forward to continuing to work with you both in
strengthening bipartisan support for food assistance.
Hunger, and our response to it, can completely change lives--I
know, because I have seen this in my own life. My father was born in
what is now North Korea, in a small village outside Pyongyang. As one
of six children, he faced hunger and poverty. His family fled south in
search of a better life but were hampered in that pursuit by the Korean
War. In 1977, my parents made the impossibly difficult decision to come
here to the United States in hopes of providing more opportunities for
my two older brothers and me. Their courage and faith in God changed
the trajectory of my life. I am grateful and proud to be an American
today. Unfortunately, far too many others face the same dire situations
my parents experienced all those years ago.
The organization I lead, Bread for the World, is a Christian
advocacy organization urging U.S. decision-makers to do all they can to
pursue a world without hunger. For nearly five decades, Bread has
advocated for government policies and programs that will end hunger in
the United States and around the world. Bread for the World's 250,000-
strong network of advocates, churches, and partners in every U.S.
congressional district works to address hunger, poverty, and
malnutrition around the world.
On October 7, 2023, the Hamas attack on Israel and the subsequent
war upended the lives of millions of innocent men, women, and children
and set in motion an extreme food crisis. This crisis has compounded
ongoing global challenges that have threatened decades of progress
toward ending hunger and malnutrition. In fact, according to FEWS NET,
the U.S. supported Famine Early Warning Network, 66 million people
needed lifesaving humanitarian assistance because of acute hunger 6
years ago. Today, in 2024, the number has almost doubled, reaching 130
million people in need. Hundreds of millions of children, women and
families are facing food insecurity in hunger hotspots including Haiti,
Sudan, Yemen, the Democratic Republic of Congo, Nigeria, and Ethiopia.
Northern Gaza is said to be at famine phase five, which means there is
an expected emergence of hunger-related deaths in line with
internationally recognized thresholds for famine.
This food crisis comes as the world continues to reel from multiple
other crises, including in Ukraine. In the Horn of Africa, we are
witnessing the sixth consecutive failed rainy season. Without rain, the
region is experiencing its worst drought in 40 years. Crops have
largely failed, pastoralists have lost their animals, and nearly 5
million people in Somalia are likely to face acute food insecurity.
Nearly half of Somalia's under-five population, or 1.4 million
children, are likely to suffer from acute malnutrition.
In 2024 we have been encouraged by the historic bipartisan support
for global food assistance programs. We applauded the $10 billion
supplemental funding to respond to the global food price crisis, passed
by overwhelming bipartisan support in both chambers this year, and we
thank Chairman Coons and Ranking Member Graham for their leadership in
getting these needed funds passed into law. As a Christian faith
organization, we praise God that the delivery of humanitarian
assistance to millions of people in Gaza and other hunger hotspots will
aid in saving lives.
Consistent assistance remains imperative for saving lives as these
complex conflicts continue.
As you discern priorities in the FY25 appropriations process, we
urge you to continue to fund critical hunger, malnutrition, and
poverty-focused programs. These programs provide a strong return on
investment to the U.S. taxpayer because they help to create a
healthier, more prosperous, and more stable world for everyone--all for
less than one percent of the Federal budget. They save lives and enable
children to grow up healthy and able to lead productive lives.
Bread for the World urges this Congress to prioritize funding in
the following appropriations accounts:
--$300 million for Nutrition in Global Health Programs at USAID.--
These programs at USAID focus on evidence-based interventions
that affect children's survival and their physical and
cognitive development. The modest increases of recent years are
losing ground to the unconscionable rates of severe
malnutrition due to rising food prices, the ongoing economic
consequences of COVID-19, climate shocks, and many other
problems. An increase to $300 million could prevent stunting
for more than 553,000 people, cure more than 12.1 million women
of anemia, support mothers to breastfeed more than 5.5 million
additional children and provide life-saving treatment for 3
million children experiencing wasting. This account is also
essential to the effective implementation of the Global
Malnutrition Prevention and Treatment Act, enacted in October
2022.
--$1.2 billion for Feed the Future's Global Food Security Strategy.--
Feed the Future is a key U.S. government global hunger and food
security initiative. Currently, 20 countries around the world
are participating. Feed the Future has helped more than 23
million people escape poverty and more than 5 million families
live free from hunger. Congress reauthorized the program in
2022 and provided a moderate increase in funding to $1.2
billion, which has yet to be met in annual appropriations.
--$180 million for International Agricultural Research and
Development.--Agricultural research funded by Feed the Future
helps farmers adapt to extreme weather and pests. U.S.
investment supports research innovations that drive critically
important agricultural productivity, nutrition, employment, and
economic transformation in developing countries.
--$5.66 billion for International Disaster Assistance.--The
International Disaster Assistance account provides humanitarian
assistance to countries impacted by natural disasters,
conflicts, and other crises, including funding for treatment of
acute malnutrition. This funding is key to fighting hunger and
malnutrition in the many crises our world faces this year. On
average, USAID responds to 75 crises in more than 70 countries
each year.
--$75 million for the Vision for Adapted Crops and Soils (VACS)
Program.--Launched in late 2022, VACS works to identify the
most nutritious crops in each of the African Union's five
subregions and mobilize resources to improve their resilience
to climate change.
--$54 million for the International Fund for Agricultural Development
(IFAD).--Funds from IFAD help rural people build resilience,
improve their food security, and contribute to poverty
reduction. During the IFAD-11 replenishment period (2019-2021),
an estimated 77 million rural people increased their incomes,
and more than 60 million people increased their food
production. This request is for installments of the U.S.
commitment to IFAD-13.
--$125 million for the Global Agriculture and Food Security Program
(GAFSP).--The Global Agriculture and Food Security Program
(GAFSP) is a multilateral platform that provides financial
assistance to governments, farmer and producer organizations,
and the private sector in the form of grants, concessional
loans, and blended finance. It also provides technical
assistance and advisory services and, in 2022, supported 16.6
million farmers, including nearly 7 million women, to achieve
higher agricultural productivity, increased incomes, and
improved nutrition security.
--$1.43 billion for the International Development Association (IDA)
at the World Bank.--The International Development Association
(IDA) at the World Bank is the largest single source of
assistance for the world's 75 lowest-income countries. In FY23,
nearly 87 million people were reached with health and nutrition
services through IDA. This request includes the third and final
installment of the U.S. commitment to IDA-20 (2022-2025). Every
dollar in U.S. contributions to IDA leverages $4 in
contributions from other donors and internally generated
resources. Fully funding this pledge would position the United
States well to lead in the ongoing 21st replenishment of IDA,
set to be finalized in December of this year.
--$197 million for the African Development Fund (AfDF).--The African
Development Fund (AfDF) provides grants and concessional loans
to 37 low-income countries on the African continent. In the
past 5 years, AfDF has helped 74 million people improve their
agricultural practices. This request includes $197 million
toward the second installment of the U.S. commitment to AfDF-16
(2023-2026). Every dollar in U.S. contributions to the AfDF
leverages more than $16 in contributions from other donors and
internally generated resources.
--$43.6 million for the Asian Development Fund (AsDF).--The Asian
Development Fund (AsDF) provides grants to the Asian
Development Bank Group's 25 lower-income member countries to
promote poverty reduction and quality of life improvements.
From 2017-2019, AsDF enabled more than 150,000 farmers to gain
access to quality farm inputs. This request includes the U.S.
pledge to AsDF-13 (2021-2024).
--$1 billion for the Green Climate Fund.--The Green Climate Fund
(GCF) works in developing countries to lower greenhouse gas
emissions and build resilience, including among smallholder
farmers through climate-smart agriculture. The GCF allocates a
minimum of 50 percent of its funds to help communities adapt to
climate change, and two-thirds of those resources are invested
in small island developing States, least developed countries,
and the African continent. This request includes an installment
toward the U.S. pledge to the second replenishment of GCF and
funds to reduce unmet U.S. commitments.
--$1.1 billion for Climate Adaptation Fund.--Climate adaptation
programs support country response to adapt to and build
resilience against the effects of climate change. These funds
support bilateral adaptation efforts to build resilience to
storm surges in coastal communities, provide early warning
systems, improve soil health, and reduce food insecurity
through sustainable agriculture. USAID partners with more than
30 countries to strengthen their resilience to climate change.
Thanks in part to this subcommittee and your support of
humanitarian and international development programs through the years,
the United States has led the global response to the needs of the
world's most vulnerable people. God's love in Jesus Christ compels us
to love our neighbors--in action as well as expression. We are all made
in God's image and carry a sacred dignity and immeasurable worth, as
laid out so clearly in Genesis 1:27. Whatever your personal and faith
motivations, I hope that you continue to expand your legacy of
promoting human flourishing, addressing the needs of the most
vulnerable, partnering with countries for shared goals of prosperity,
and investing in communities around the world. Now more than ever, the
world needs U.S. commitment to poverty- and nutrition-focused
development.
Thank you for your continued support. May God continue to bless
each of you and your work.
______
Prepared Statement of CARE USA
On behalf of CARE USA, a humanitarian and development NGO that has
operated in over 100 countries for almost 80 years, we are grateful for
the continued bipartisan leadership in support of a robust
international affairs budget. The State, Foreign Operations, and
Related Programs budget reflects critical investments in America's
global leadership, from addressing the global hunger crisis to
supporting poverty alleviation around the world. Over the last several
years, our development and humanitarian assistance has truly been put
to the test. But America has continued to lead by supporting those
suffering the most around the world and responding to natural disasters
like flooding in Afghanistan, the crises in Sudan and Haiti, providing
small business loans to women, and investing in small-holder farmers to
help them increase their yields. And a majority of Americans support
investing in foreign aid.
I am also grateful for the robust humanitarian assistance included
in last month's National Security Supplemental. This is lifesaving aid,
and a key example of the generosity of spirit of the American people,
both in the quantity and flexibility of funding.
Given the fact that the international affairs budget not only
directly saves lives but also launches catalytic investments from other
donor countries that can improve global hunger, health systems
strengthening, protection for women and girls, and humanitarian
assistance, I strongly urge that these accounts are retained, at a
minimum, at FY23 funding levels. The foreign assistance budget is small
but mighty. Every dollar is stretched to maximize effectiveness and
hollowing out resources from one of the smallest budgets is an alarming
and ineffective way to attempt fiscal responsibility.
The impacts of this budget can feel far away, but our experience in
the countries in which we operate confirms how relatively small U.S.
investments can change lives. Recently, my team was in Honduras where
they met a woman participating in a U.S.-funded program to counter
gender-based violence. She told our team: ``Thank you for this program.
Because of it, I was able to get a divorce from my husband and now my
kids are safe.'' Whether keeping families safe in their communities,
helping women help themselves by supporting entrepreneurship
opportunities, or ensuring that kids are able to eat enough to learn in
school, U.S. assistance is saving lives.
In particular, I wish to highlight the accounts below, which are
especially important to improve the lives of the most vulnerable among
us.
funding recommendations
Topline International Affairs Budget.--$61.7 billion (no less than
FY23 levels)
--Global Food Security Strategy: $1.2 billion
--Women's Economic Empowerment (GEEA Fund): $400 million
--Global Health Workforce Initiative: $200 million
--Bilateral and Multilateral Family Planning and Reproductive Health:
$1.74 billion total, including $116 million for UNFPA
--Remove language codifying the Mexico City Policy/Global Gag Rule, a
harmful policy rider that limits access to sexual and
reproductive health care.
--International Disaster Assistance (IDA) $5.274 billion
--Migration Refugee Assistance (MRA): $5.2 billion
Lastly, I encourage you to adopt mechanisms across accounts that
prioritize direct funding to local organizations, with a particular
focus on women-led organizations. Every President since President
George W. Bush has recognized that U.S. foreign assistance is more
effective and sustainable when it is driven by local priorities and
implemented by local partners.
Together, each of these accounts enable us to respond to acute
crises while helping to address the underlying causes of global
suffering. As CARE approaches 80 years of work in the field, across
over 100 countries, we have seen not only the tremendous impact of
these programs, but have also been pleased to be a part of hard-won
gains in effectiveness and sustainability. This Committee has been a
tremendous leader in ensuring that every single dollar allocated to
global development and humanitarian response is well spent, well
justified, and pays dividends over the long term. Failing to fully fund
and support these vital programs now would put those achievements at
grave risk and lead to greater global challenges. The inevitable impact
would include increased food insecurity, higher maternal mortality,
fewer girls in school, and greater risk of global pandemics. CARE urges
Congress not to jeopardize decades of gains with funding cuts that
would only result in greater suffering and cause increased costs in the
long run.
[This statement was submitted by Ritu Sharma, Vice President of
U.S. Programs and Policy Advocacy.]
______
Prepared Statement of Catholic Relief Services
Chairman Coons, Ranking Member Graham: Catholic Relief Services
(CRS), the international relief and development agency of the Catholic
community in the United States, along with the United States Conference
of Catholic Bishops (USCCB) requests that you increase international
poverty-reducing humanitarian and development assistance in Fiscal Year
2025 (FY25) appropriations. We ask Congress to increase the
international affairs budget to $64.4 billion, including $62.4 billion
for the FY25 State-Foreign Operations bill, to support poverty-reducing
international assistance. We urge you to prioritize the accounts below
to at least the levels indicated.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
an opportunity for renewal
Pope Francis calls on us to confront our current global
challenges--such as hunger, climate change, and ever-growing
humanitarian need--as opportunities for renewal. In the lead up to
Easter, the Pope's Lenten message reminded us to ``keep seeking and be
ready to take risks. At this moment in time, we face enormous
risks...let us find the courage to see our world, not as being in its
death throes but in a process of giving birth, not at the end but at
the beginning of a great new chapter of history. We need courage to
think like this.'' \1\
CRS works in this spirit of restoration, supporting communities in
their efforts to enter more hopeful chapters of their lives. CRS
answers Pope Francis' call to ``keep seeking,'' as we pursue solutions
to the seemingly insurmountable challenges of our time. In order to do
so, Congress must provide robust funding to address these issues head
on. Strong funding must be complemented by a continued openness to, and
oversight of, locally-led development and humanitarian responses, to
ensure sustainable results by placing local actors at the forefront of
program design and implementation. CRS encourages Congress to build on
this willingness to confront challenges, not out of fear, but with the
courage that Pope Francis deems necessary to bring about a more just
and peaceful world.
hunger
This year, almost 300 million people are projected to face
``acute'' levels of food insecurity in Gaza, the Sudan, Ethiopia,
Haiti, the Democratic Republic of Congo and beyond.\2\ The U.S.
government has a history of investing in long-term solutions to combat
hunger in such places. Feed the Future, a USAID-led initiative,
addresses the underlying drivers of hunger by bolstering agriculture-
led growth, building livelihoods and supporting nutrition in target
countries. CRS implemented a Feed the Future project from 2013 to 2018
in Nigeria, where households still benefit from the project: in 2023, 5
years after the close of the project, 80 percent of participating
households said they felt able to withstand rising food prices,
changing weather patterns, and disrupted livelihoods to maintain their
levels of food security. In response to the current global food crisis,
the U.S. government launched the global initiative ``Vision for Adopted
Crops and Soils'' (VACS), which aims to boost agricultural productivity
and nutrition through the cultivation of climate-resilient indigenous
crop varieties and the promotion of activities to rejuvenate healthy
soils. CRS has championed elements of the VACS approach for years and
can attest to the enduring returns. By increasing funding to the
Development Assistance account, Congress can help communities be more
resilient to such setbacks that continue to confront these communities
and sustainably address global hunger.
While the global food crisis has re-vitalized our understanding of
the need for sustained development investments like Feed the Future, it
also requires Congress to invest in new, innovative humanitarian
programs that help the most vulnerable communities prevent overwhelming
humanitarian need in the face of emergencies. CRS' PRO-RAICES project
in Guatemala does just that. While farmers in the region experience
drought and irregular rainfall, leading to unpredictable harvests, PRO-
RAICES works with local partners to create agricultural systems that
can withstand the pressures of a changing climate. CRS helps farmers
increase yields by training them in techniques that improve soil
moisture retention and minimize the use of chemical fertilizers.
Simultaneously, at the municipal level, CRS staff and partners
collaborate with local governments to facilitate their own investment
in disaster risk reduction. Since the 2023 launch of PRO-RAICES, two
municipalities have established Offices for Disaster Risk Reduction
that help communities identify and mitigate the risk of natural
disasters. Institutional improvements like these, which are driven by
local stakeholders and supported by CRS, make communities less
vulnerable to food insecurity. Increasing funding for the International
Disaster Assistance account, which supports PRO-RAICES and other such
projects, will make the necessary investments now, to prevent greater
humanitarian need in the future.
climate change
In 2021, speaking about the imperative to be good stewards of the
Earth, Pope Francis exhorted the world to ``take our proper place as a
'Restoration Generation'.'' CRS and local partners respond to that call
through climate adaptation programming around the world, including the
Climate Resilient Cities project in the Philippines, funded by USAID
through the Development Assistance account. CRS, with six local
governments, implements urban-focused nature-based solutions--such as
mangrove-planting along coastlines to mitigate harms from storms. The
projects' longevity will depend on building strong local leadership, so
CRS is building the capacity of municipalities to access climate data,
as well as to secure financing for future adaptation projects. We ask
Congress to scale up bilateral investment in climate adaptation and
reinforce the vital work embodied by the Climate Resilient Cities
project. Additionally, CRS recommends that Congress complement
bilateral investments with funding to multilateral entities like the
Green Climate Fund, Adaptation Fund, and Least-Developed Countries
Fund.
To ensure the effectiveness of increased adaptation funding, CRS
asks Congress to require Federal agencies, including USAID and the
Department of State, to establish a data baseline of bilateral climate
adaptation investments. Year-over-year data will allow U.S. government
stakeholders and non-governmental organizations like CRS determine the
scale and scope of current programming and identify the most effective
approaches to support climate-vulnerable communities. CRS also urges
Congress to ensure that the multisectoral impacts of climate change--
for example, impacts on food systems and infectious disease rates--are
recognized and integrated into long-term planning. We appreciate
current efforts led by USAID and the Department of State to do so.
humanitarian crises
Pope Francis reminds us that ``global crises . . . could be the
occasions to bring about beneficial changes.'' And while CRS staff
witness great suffering, they also see glimmers of hope. CRS works
tirelessly in crisis-affected areas like Gaza and Ukraine, where
devastating conflicts have captured international attention. In Gaza
and the West Bank, with funding from the International Disaster
Assistance account, CRS provides food assistance, health kits,
psychosocial support, and shelter materials for conflict-affected
families. This assistance aims to ensure that families survive and can
begin their journey to recovery after conflict subsides. At the same
time, we provide emergency relief to hotspots that are often
overlooked, like the Sudan, Haiti and the Sahel region. We urge
Congress to increase funding for International Disaster Assistance and
Migration and Refugee Assistance to save lives today, and lay the
groundwork for a better tomorrow.
Humanitarian assistance alone will not resolve these crises.
Rather, solutions must ultimately come from within, and require our
support. In the Sudan, where ongoing conflict has displaced over eight
million people, CRS implements the People 2 People project, which began
in October 2022 in Central Darfur. People 2 People works with local
citizens and peace actors to build cohesion among groups that have
historically clashed. These efforts have been crucial in mitigating the
intensity of the Sudanese conflict. Similarly, around the world, those
affected by conflict and crisis are not giving up; instead, they are
leaning into Pope Francis' call to create a brighter future. Therefore,
we urge Congress to fund peacebuilding and social cohesion activities
through the Complex Crises Fund and Economic Support Fund to support
communities like those in the Sudan.
global health
The world has made substantial progress combatting infectious
diseases like malaria, tuberculosis, and HIV, but we find ourselves at
an inflection point. Progress on malaria, for instance, has stalled due
to insufficient funding and growing humanitarian crises. CRS urges
Congress to advance the Pope's vision of a renewed world by investing
in global health accounts such as the Global Fund to fight HIV/AIDS,
Malaria, and Tuberculosis. In 2022, CRS programs funded by the Global
Fund distributed 55 million bed nets and reached 21 million children
with preventive malaria vaccines. Through these efforts, CRS has
prevented more than 75,000 malaria deaths among children under five
since 2020.
Moreover, Global Fund investments support locally-led health
programming through the ``High Performing Implementers'' (HPI)
initiative. Through HPI, CRS assists government partners to build
institutional capacity to become strong implementers of Global Fund
grants, which increases the effectiveness and sustainability of such
activities in the future. After CRS' capacity strengthening support
through the HPI initiative in Guinea, the Minister of Health commended
the National Malaria Program to be the best national health program in
the country. Investments like these not only help save lives, but also
foster stronger systems to advance development.
As the U.S. strives to revitalize gains in global health, CRS
strongly urges Congress to maintain the Helms Amendment in FY25. CRS
has grave concerns about utilizing taxpayer funding for activities
inconsistent with the Catholic faith. Further, integrating such
programming elements is not in the best interest of the U.S. and would
exclude providers that are sometimes the most credible and trusted
amongst local communities. CRS asks that lawmakers prioritize the
dignity of human life across all aspects of humanitarian and
development assistance.
keep seeking
Pope Francis calls us to confront poverty, hunger, and suffering,
and to ``keep seeking''--in other words, we must not remain paralyzed
by despair or indifference in the face of our global challenges, but
seize opportunities for renewal and rebirth. CRS urges Congress to
respond to this call, confident that the U.S. has what it takes to lead
the way toward a ``great new chapter in history.''
---------------------------------------------------------------------------
\1\ https://www.vatican.va/content/francesco/en/messages/lent/
documents/20231203-messaggio-quaresima2024.html.
\2\ According to the 2024 Global Report on Food Crises, 281.6
million people are projected to experience Phase 3 or higher on the
International Food Security Phase Classification (IPC) scale (3-Crisis,
4-Emergency, 5-Catastrophe). Populations in Crisis or worse face high
levels of acute food insecurity and are in need of urgent assistance.
[This statement was submitted by Sean Callahan, President and CEO.]
______
Prepared Statement of Center for Integration Science
Chairman Coons, Ranking Member Congresswoman Graham, Members of the
subcommittee, thank you for the opportunity to submit written testimony
on the FY25 State, Foreign Operations and Related Programs
Appropriations bill and specifically in support of our request for
funding under the U.S. Agency for International Development (USAID)
Global Health Program to advance PEN-Plus Programs for the treatment of
severe childhood-onset noncommunicable diseases (NCDs) in Africa. We
are very grateful to be working with Rep. McGovern and Senator Markey
to advance this funding request.
funding request and recommendation
Thousands of children and young adults in Africa live with severe,
chronic noncommunicable diseases such as type 1 diabetes, sickle cell
disease, and rheumatic and congenital heart disease, causing
heartrending pain and frequently death. These diseases
disproportionately impact the poorest individuals, families, and
countries on the continent. Left unaddressed, they represent a
devastating burden on lower-income countries and a roadblock to
economic development.
Historically these children and young people fall through the
cracks of global health financing because their conditions require
complex care and specialized provider training. There is no ``silver
bullet''; care demands an evolution of entire health systems. In
response, a coalition of expert organizations developed the PEN-Plus
Strategy, a framework that builds on WHO guidelines and country-
specific infrastructure to increase access significantly and
sustainably to care for individuals living with these diseases.
Forty-seven (47) African countries have already endorsed PEN-Plus
as the official strategy to reach children living with severe non-
communicable diseases on the continent; 22 of these countries are
already at varying stages of implementation.
I have just returned from the Inaugural International Conference on
PEN-Plus in Africa (ICPPA) that was held April 23-25 in Dar es Salaam,
Tanzania. ICPPA solidified momentum around the scaling of PEN-Plus
across Africa and brought together over 400 stakeholders from 52
countries, including strong U.S. representation from the American Heart
Association, Juvenile Diabetes Research Foundation, St. Jude's Research
Foundation, American Society of Hematologists, and Mass General
Brigham.
The consensus among the Conference's experts, leaders, and partners
is clear: the time is now to scale PEN-Plus as a proven package of
interventions that will save children's lives, advance health systems
towards universal health coverage, and meet a historically neglected
burden of disease on the continent. As of 2024, the PEN-Plus
Partnership is already supporting lifesaving treatment for
approximately 10,000 people living with severe NCDs in 14 lower-income
countries. Yet financial limitations hamper the expansion of these
programs to more facilities and countries.
On behalf of the PEN-Plus Partnership, Mass General Brigham (MGB)
is seeking up to $15 million annually to match and leverage these
private sector investments in PEN-Plus programs on the African
continent. MGB estimates this matching support will engage at least 15
member States in successful launch and/or scale of PEN-Plus programs;
and increase the number of children and young people enrolled in care
by at least 5-fold. By supporting PEN-Plus interventions, the U.S. will
save thousands of young lives and demonstrate its technical prowess,
innovative capacity, and moral leadership in this strategically
critical region of the world.
the need
--Severe NCDs cause more than half a million avoidable deaths every
year among the world's poorest children, adolescents and youth.
Nearly 100,000 of these deaths are caused by just four
conditions--type 1 diabetes, sickle cell disease, and rheumatic
and congenital heart disease. Most of the medications needed to
manage these conditions are off-patent and have been used for
decades in wealthier countries--or, in the case of insulin, for
more than a century.
--In most low- and lower-middle-income sub-Saharan African countries,
treatment for severe chronic NCDs is available only at referral
hospitals in major cities, leaving the rural poor without
access to affordable care. Without access, individuals and
families incur catastrophic costs seeking care or forgo care
altogether, risking disability and even death.
--In addition to reducing life expectancy, these conditions
significantly impair patients' quality of life and economic
productivity while greatly increasing their healthcare costs
and adversely affecting their social and cultural well-being.
The resultant loss of productivity has dramatic economic
impacts on families, social structures, and community
stability.
Countries most in need of these interventions are least able to
afford them or put in the up-front costs to progressively move towards
this level of care.
the pen-plus solution
PEN-Plus is a set of clinical and health system interventions aimed
at delivering high-quality care for people living with severe, chronic
NCDs in rural and near-urban areas. Specifically, PEN-Plus introduces
management and care for type 1 diabetes, sickle cell disease, and
rheumatic and congenital heart disease into lower-level health
facilities in low- and lower-income health systems. It complements and
strengthens the World Health Organization's Package of Essential
Noncommunicable (PEN) Disease Interventions for Primary Health Care.
PEN-Plus programs train nurses, clinical officers, and community
healthcare workers in the skills they need to care for people with
these severe chronic conditions at the district level. These providers
learn to offer diagnoses, lifesaving medications, patient education,
psychosocial support, palliative care, and referrals for surgical and
other specialty care. They are trained to manage crucial medications
with narrow therapeutic windows, such as insulin, hydroxyurea, heart-
failure medications, and anticoagulants. These providers also gain
access to important diagnostic technologies, including glucose
monitoring, hemoglobin evaluation, and echocardiography. Social support
is a critical component of disease management in resource-poor
settings, so PEN-Plus clinics provide that support for patients and
their families who may struggle to pay for regular, healthy meals and
transportation to clinic visits.
Partners In Health and the Rwandan Ministry of Health first
introduced PEN-Plus more than a decade ago at two rural hospitals in
Rwanda. There, the model succeeded so well that the ministry since
expanded it to every district hospital in the country.\1\ Since then,
and with support from the PEN-Plus Partnership, Malawi has begun its
national scale-up of PEN-Plus, and nine additional African nations--
Ethiopia, Kenya, Liberia, Mozambique, Sierra Leone, Tanzania, Uganda,
Zambia, and Zimbabwe-have initiated PEN-Plus implementation by
establishing their first clinics and training sites. An additional six
African countries--Benin, Burkina Faso, Cameroon, the Democratic
Republic of the Congo, Ghana, and Nigeria-are conducting the
preliminary planning essential to implementing PEN-Plus.
impact of u.s. investment in expanding pen-plus
According to the Lancet Commission on Reframing NCDs and Injuries
for the Poorest Billion, less than 0.3 percent of global health
spending--not even $100 million a year--is allocated to NCD care in
countries where the world's poorest billion people live. The U.S. is
uniquely positioned to play a leadership role in addressing some of the
most devastating and largely untreated diseases afflicting children and
young persons in sub-Saharan Africa. Direct funding will position the
U.S. government as a major and influential player in the NCD space and
expanding PEN-Plus will:
Save/Improve the Lives of Thousands of Children and Young Persons in
Sub-Saharan Africa
--Estimated 5x increase in the number of persons receiving high-
quality, sustained, integrated care for these conditions
Spur Economic Growth and Reduce Poverty on the Continent
--Alleviates family, community, and health system costs exacerbated
by acute events due to poorly controlled conditions
--Disproportionately increases quality-adjusted life-years, as these
are conditions that primarily affect children and young persons
--Provides an ``on-ramp'' for local health systems to progressively
take on costs associated with integrated care for these
conditions over time
--Creates demand and incentivizes future private investments in
supply chain and medicines/consumables
Reinforce the U.S. Government's Larger International Development
Strategies
--Help ensure that USAID realizes its Vision for Health Systems
Strengthening 2030 which ``shifts the focus from strengthening
individual functions--inputs or building blocks--of the health
system to a focus on the health system outcome goals of equity,
quality, and resource optimization''
--Significantly builds local human resources capacity and self-
sufficiency/resiliency of health and management systems within
target countries benefitting overall global health security
goals
--Leverages existing private investments and public investment
commitments made by partner countries
Strengthen the U.S. Government's Diplomatic Goals on the Continent
--Demonstrated leadership in addressing a priority set of conditions
and interventions across at least 20 countries in sub-Saharan
Africa
--Sophistication of the response reinforces the unique value-add to
other governments of close ties to the United States and its
intellectual, financial, and technical resources
Recognizing that the limited U.S. funds available for global health
must and should support multiple goals, this proposal will do so by
reducing child mortality, delivering meaningful near-term improvements
to children's and young adults' health, strengthening health systems,
and continuing to advance U.S. leadership globally. PEN-Plus programs
directly save vulnerable lives while advancing all these aims. Thank
you for your careful consideration of this request.
---------------------------------------------------------------------------
\1\ Implementation outcomes of national decentralization of
integrated outpatient services for severe non-communicable diseases to
district hospitals in Rwanda--PMC (nih.gov).
[This statement was submitted by Gene Bukhman, PhD, MD, Executive
Director.]
______
Prepared Statement of Christian Connections for International Health
(CCIH)
To the honorable Members of the Senate Appropriations subcommittee
for State, Foreign Operations, and Related Programs (SFOPS), I would
like to thank each of you for your continued leadership in global
health. The tens of millions of lives saved by your support of global
health investments demonstrate the importance of U.S. leadership to the
world, and the achievements made against diseases such as HIV/AIDS,
malaria, and many more are directly attributed to the decisions you
have made to fund these needed programs.
The economic and social gains for individuals, families, and
communities worldwide are significant, with returns on investment
exceeding 20 or 30 times the original investment. These programs are
not charity, they are investments that provide stability, promote
economic growth, and preserve human dignity around the globe. As you
determine the funding levels for these initiatives for Fiscal Year 2025
(FY25) I hope you will consider that providing robust funding to these
base accounts will reduce the need for supplemental funding packages to
address global challenges as they arise.
state department
President's Emergency Plan for AIDS Relief (PEPFAR) $5.15 billion
I would like to thank the members of this committee for including a
1-year reauthorization for PEPFAR as part of the legislative package
for Fiscal Year 2024. PEPFAR is the flagship program for foreign
assistance programs, especially in global health. Through the support
of PEPFAR programs, more than 5.5 million babies were born HIV-free.
Additionally, care and support were provided to over 7 million orphans
and vulnerable children through PEPFAR. Since its creation in 2003
under the leadership of President George W. Bush and bipartisan leaders
in Congress, as well as the strong support of evangelical and other
Christians, PEPFAR has saved the lives of over 25 million people. I am
thankful for the continued bipartisan support of this unequivocally
pro-life initiative.
However, I remain gravely concerned about the vulnerability of the
PEPFAR program. For the first time in its history, PEPFAR did not
receive a 5-year reauthorization, raising questions about U.S.
leadership and commitment to ending HIV/AIDS. I am especially disturbed
that the program, whose mission is to save lives, was falsely accused
of subverting U.S. law and funding abortion procedures. As many of you
know, the Helms Amendment, signed into law more than 60 years ago as an
amendment to the Foreign Assistance Act of 1961, explicitly prohibits
the use of U.S. taxpayer dollars in the foreign assistance account to
pay for the performance of abortion as a method of family planning or
to motivate or coerce any person to practice abortion.
I just returned from meeting faith-based health leaders in one of
PEPFAR's priority countries and discussed this topic. They could not
believe anybody would say PEPFAR promotes abortion.
But that is unfortunately the case: organizations that have no
interest, attachment, or support of foreign assistance programs sought
to undermine the credibility and bipartisan support for this life-
saving initiative.
I urge this committee, and your colleagues on the Foreign Relations
Committee as well as your counterparts in the House of Representatives
to support and pass a 5-year clean reauthorization bill to allow PEPFAR
to continue its work to save lives.
We can see the end of HIV/AIDS in the next decade, if we keep our
focus on the goal.
Global Fund to Fight AIDS, Tuberculosis, and Malaria (Global Fund)
$1.65 billion
The complementary relationship between the Global Fund and PEPFAR
allows for better-coordinated efforts to achieve an AIDS-free
generation. With FY25 being the last year of the Replenishment cycle,
the leveraging power of the U.S. contribution to the Global Fund
carries even greater importance. Where the U.S. leads, the world will
follow. If the world perceives that the U.S. is taking a step back from
its leadership role in global health, the world will follow that
example, or worse, look to partners whose motives are unclear (such as
China) in order to fill that void. I hope this committee will not allow
that to take place. In the event that a $1.65 billion contribution to
the Global Fund is not matched by other donor countries, I would ask
this committee to grant the authority to the Department of State to
redirect any funding into bilateral programs.
usaid
Family Planning $575 million
CCIH defines Family Planning (FP) as ``enabling couples to
determine the number and timing of pregnancies, including the voluntary
use of methods for preventing pregnancy, not including abortion,
harmonious with their values and religious beliefs.'' FP programming
lowers maternal mortality and morbidity rates as well as infant and
child death rates. Globally, one-third of women are affected by illness
or death due to poor reproductive health. Every year more than half a
million women die in childbirth, with over 95% of them in Africa and
Asia. The deaths of these women leave behind children who are more
vulnerable to disease and death themselves.
The use of voluntary family planning, which gives women and couples
the tools to time and space their pregnancies in ways consistent with
their faith and values, allows families to have the number of children
they wish to have in the healthiest and safest way possible. By spacing
pregnancies, women have a greater opportunity to recover from a prior
pregnancy and grow their families in a safe environment. Any fully
functioning health system must include a strong system of family
planning provision. I urge this committee to continue supporting these
critical life-saving initiatives.
Importance of Localization
As a coalition of faith-based organizations, many of which are
locally owned and operated around the world, I would like to applaud
the leadership of USAID in setting targets of 25% of USAID funding
directly obligated to local partners by 2025, and to have 50% of
funding obligated to local organizations by 2030. It is a smart policy
to engage local authorities who are accountable for results in the
decision-making process. It is my hope that this committee will
continue its oversight role to ensure these goals are met.
We must underscore that empowering and providing resources to local
entities does not mean that international non-governmental
organizations (INGO) serve no role in modern development. INGO's bring
expertise and scale that local organizations do not often possess,
especially in the short term. INGOs provide lessons learned and promote
regional learning opportunities. We must not create the expectation
that localization is a ``blank check'' that can solve every development
or humanitarian crisis. Nor can we give the impression that INGOs are
no longer valued and needed partners in foreign assistance.
I applaud the suggested actions in the Locally Led Development and
Humanitarian Response Act (S. 3994 and its companion bill HR 7710).
These common-sense changes would allow local organizations to more
easily access USAID resources and technical expertise to build more
resilient health systems and graduate from needing foreign assistance
resources to address health issues. These structural changes would
allow new and underutilized organizations to partner with USAID and
create strong, resilient health systems.
Some of these suggested changes include:
--Accept applications or proposals in languages other than English;
--Increase the de minimis indirect cost rate to 15% for local
entities;
--Allow a 180-day delay for local entities to register in the System
for Award Management;
--Award contracts or other acquisition instruments in which
competition is limited to local entities if doing so would
result in cost savings, strengthen local capacity, or enable
more sustainable programs.
Another critical piece to the success of localization is to know
where these new and underutilized organizations work. The Christian
Health Asset Mapping Consortium (CHAMC) seeks to compile and store this
valuable data. CHAMC is a voluntary association of organizations that
work to address urgent needs for information and help improve the
quality of data about the Christian health asset landscape. Faith
actors can make or break a global health strategy; excluding them from
planning and resources fosters distrust and may even leave people in
communities believing ``health'' and ``faith'' are at odds. Strategic
investments in faith engagement, such as USAID's Building Bridges, may
help accelerate these programs to scale.
Intersection of Climate and Health
Faith-Based Organizations (FBOs) are often the first to respond to
emergencies and remain long after the emergency has subsided. While we
have most often seen this in response to epidemics and pandemics in
global health, we have also seen this in response to natural disasters.
There is an increasing intersection between the impacts of climate
undermining the resilience of health systems strengthened by
investments in global health.
As demonstrated by the recent floods in Kenya, many countries face
longer and more intensive rainy seasons. These natural disasters create
headlines that will be seen by the international community, but will
need local actors, often in the faith community, to address the
aftermath. The destruction and disruption of roads and the influx of
patients injured by these disasters place additional stress on health
systems that are still developing.
Ignoring these impacts undermines the investments this committee
makes to address global health concerns. Disrupting the transportation
infrastructure makes it harder for patients to travel and receive
treatment if they are HIV/AIDS positive, stagnant water becomes
breeding grounds for mosquitoes carrying the malaria parasite, and
shipping commodities to support family planning, tuberculosis
treatment, or vaccinations becomes more expensive.
To address these issues from a local perspective, CCIH has
established the Faith for Climate Health Resilience (Faith4CHR), which
will officially launch in June 2024. Faith4CHR aims to increase climate
resilience with faith-based health partners in low- and middle-income
countries (LMIC). Faith4CRH envisions a world where all communities:
(1) have consistent access to quality healthcare and prevention
services in the face of climate change, (2) are prepared for the
impacts of climate change, and (3) have the tools they need to adapt.
To achieve that, we need to elevate the voice of the communities and
generate momentum across health systems.
Impact
The general consensus is that every $1 invested in global health
programs yields a return of $35 to society in reduced health
expenditure and improved productivity. This, of course, does not take
into account the true scope of the human element; the 25 million lives
saved by PEPFAR, the 11.7 million lives saved by the President's
Malaria Initiative, and the 154 million lives saved from global
immunization programs. For people worldwide, these programs represent
the character and leadership of the United States.
Thank you for your consideration.
[This statement was submitted by Doug Fountain, Executive
Director.]
______
Prepared Statement of Elizabeth Glaser Pediatric AIDS Foundation
Chairman Coons, Ranking Member Graham, and distinguished Members of
the subcommittee, thank you for the opportunity to submit testimony in
strong support of the foreign affairs budget, in particular the
President's Emergency Plan for AIDS Relief (PEPFAR) and the
international organizations and partners critical to its success. My
name is Charles Lyons, and I am the President and CEO of the Elizabeth
Glaser Pediatric AIDS Foundation (EGPAF). EGPAF implements a
comprehensive response to the global fight to end HIV and AIDS through
research, global advocacy, strengthening of local health care systems,
and growing the capacity of governments and communities in the world's
most affected regions to respond to urgent needs. I am proud to be
leading a mission-driven organization, working closely with families,
communities, countries, and donors fighting for an AIDS-free
generation. I am asking you today to not only substantially increase
funding to end the global HIV and AIDS epidemic, but also to ensure
that children are at the forefront of the U.S. global AIDS response.
EGPAF was founded over 35 years ago by Elizabeth Glaser. Elizabeth
started the then Pediatric AIDS Foundation after losing her daughter
Ariel to AIDS. In a moment when many mothers would rightfully be lost
in grief, Elizabeth resolved to spare other families her heartache and
ensure children were not forgotten in the HIV and AIDS response.
Elizabeth's work was grueling, but because of her advocacy, researchers
funded by the organization, and fellow advocates and activists,
pediatric HIV cases domestically are now thankfully rare. Since our
inception in 1988, there has been a 95 percent decline in new pediatric
HIV infections in the United States.
In the late 1990s, our Board of Directors decided that Elizabeth's
legacy would extend far beyond the borders of the United States. EGPAF
was determined that results for pregnant women and children in the
United States could be replicated in countries experiencing the
widespread devastating impacts of HIV and AIDS. As this committee knows
well, the PEPFAR program soon followed due to historic bipartisan
cooperation. As an organization already working in the region, we were
grateful to partner with PEPFAR to dramatically scale up successful
interventions. Over 20 years later, EGPAF is an established
implementing partner working across 17 African countries. One of our
organizational strengths is that almost the entirety of our staff is
local to the country in which they work, ensuring that our programming
is locally led, locally managed and building a sustainable global AIDS
response.
It can be hard now, after 20 years and twenty-five million lives
saved, to remember the urgency behind the creation of the PEPFAR
program. I want to remind the Committee of the challenges being faced
by communities two decades ago, using the words of Felicity Maya, a
nurse working with EGPAF in Eswatini. When Nurse Maya began her nursing
career 20 years ago, she walked into the center of Eswatini's raging
HIV epidemic-with few weapons to fight the deadly virus. After
graduating from the University of Swaziland in 2003, Nurse Maya was
posted to the Mankayane Government Hospital, working primarily with
pregnant women and infants. At that time, there were no means to
prevent mother-to child HIV transmission in Eswatini.
In 2003, when PEPFAR was created, Eswatini had the highest HIV
prevalence in the world. Four in 10 adults, including pregnant women,
were estimated to be HIV-positive. Sixty-four percent of Eswatini
deaths in 2002 were due to AIDS-related illness, according to the World
Health Organization.
Nurse Maya recalled one of her first young patients: ``I think she
was around 3 or 4 years old. She was HIV-positive, [but] there were no
ARVs [antiretroviral medication] at that time. She had been taking
antibiotics for some time.'' However, antibiotics are not ARVs, and
they are inadequate to fight off advanced HIV disease, AIDS. But they
were the best tool available in Eswatini at that time to prolong a
life. ``There came a time when she told us, 'Please, I don't want the
[antibiotic] injections again. Mommy has already told me that the
angels will be coming to pick me up at night.' We convinced her that
she should take the medication-but then we didn't find her the next
morning.'' She had died in the night.
``That was really something that I took from then until today. It
was so painful to lose her because we were so close to her. We really
thought that maybe she would have some few [more] days with us. But
then she didn't [survive].'' This small girl, like almost all HIV-
positive children, acquired HIV during pregnancy, childbirth, or
breastfeeding. Thankfully today 82 percent of women globally are
receiving the services and medicines they need to prevent transmission
to their children, and new HIV infections in children have been reduced
by 58 percent since 2010, translating to hundreds of millions of women
being tested and, if needed, treated for HIV during the pregnancy and
breastfeeding period. But we can't take these successes for granted.
As Dr. Caspian Chouraya, our Country Director in Eswatini notes
``We're seeing that there have been huge improvements; however, there's
still a gap when we compare adults and children [with HIV]. It has
become better, and we should be able to celebrate that-but let's not
become too complacent. Our children are still not getting the optimal
formulations that we want them to get. Our children are still not being
diagnosed at a rate we want them to be diagnosed.''
For nearly a decade, the number of women reached with prevention of
mother-to-child transmission of HIV services has remained steady \1\,
meaning almost no new progress has occurred in driving down new
infections in children. Also extremely concerning is the growing
treatment inequity for children living with HIV, as compared to adults.
The fact that children represent 4 percent of people living with HIV,
but 13 percent of AIDS-related deaths is frankly unconscionable.
Currently only about half of HIV positive children are accessing the
treatment they need to survive, which is especially egregious since
without treatment half of children infected with HIV during pregnancy
and breastfeeding will die by the age of two and 80 percent by the age
of five. To put it plainly, this means too many families are still
losing far too many children, facing the same pain Elizabeth and Nurse
Maya had to endure decades ago, even when the tools exist today to save
these children's lives.
Thankfully this Committee has time and again recognized the
importance of prioritizing children in the global AIDS response, in
FY24 asking PEPFAR for pediatric specific strategy. This strategy
should include specific and measurable targets for children and
adolescents that go beyond the generalized ``epidemic control'' or 95-
95-95 UNAIDS targets. Lofty, high-level targets often mask uneven
progress and the increasingly inequitable outcomes faced by children.
For example, of the 20 countries that had reached ``epidemic control''
by 2022, 13 still had less than 60 percent of children living with HIV
on treatment.\2\
Simply put, children are harder to reach than adults, and the first
step in ensuring children are linked to treatment is understanding
where they live so they can be tested. This is why data on pediatric
HIV is so critical. Our organization is concerned that PEPFAR is not
prioritizing pediatric data collection to inform program-decision
making. We encourage the Committee to once again ask that children have
their own strategy and be included in PEPFAR-funded population surveys
like the Population-based HIV Impact Assessment Studies (PHIAS).
Collecting better data is essential for better outcomes.
Two things are clear after 20 years of the PEPFAR program. First,
PEPFAR has been and continues to be transformative for the lives of
children and families impacted by HIV. Second, there is still so much
more work to be done. I am shocked and saddened by the political
attacks the program has faced over the last year. These baseless
attacks work to undermine the legacy of bipartisan support this program
maintains and is the foundation of its success. I know many members of
this Committee have visited countries where PEPFAR works and met with
healthcare workers like Nurse Maya, and those who have received
services through the program. You understand its profound impact on
communities and families. If you have not been yet, I strongly
encourage you to do so.
I want to also express support for our global partners--the Global
Fund to Fight AIDS, Tuberculosis and Malaria, the World Health
Organization (WHO), the Joint United Nations Programme on HIV and AIDS
(UNAIDS) and the United Nations Children's Fund (UNICEF). PEPFAR's
success--and in turn EGPAF's success as an international organization
working at national and local levels--is due in large part to the
collaboration of countries, communities, related U.S. supported
programming, and international partners. The prospect of ending AIDS in
children will be jeopardized without a range of actors to provide
program support, technical expertise and institutional commitment.
I hope this Committee does not rest on the successes of the PEPFAR
program to date but recognizes that with continued robust investments
we can help countries, communities and families avoid the grief
Elizabeth had to face. In the words of Nurse Maya, who has been working
in PEPFAR supported clinics since the program's inception ``I've been
practicing [medicine] for more than 20 years,'' she says. ``It's so
satisfying seeing that you delivered this baby, and you did all that
you could for that baby to be alive.'' Now is the time to double down
on our commitment to do all we can for children living with HIV, finish
the job Nurse Maya and others have been working so diligently to
achieve and realize an AIDS-free generation once and for all.
---------------------------------------------------------------------------
\1\ UNAIDS, The path that ends AIDS: UNAIDS Global AIDS Update,
2023, pg. 60.
\2\ PEPFAR, 2022 Annual Report to Congress and
www.aidsinfo.unaids.org.
---------------------------------------------------------------------------
______
Prepared Statement of EYElliance
Clear vision is essential for full participation in educational and
economic opportunities. Globally there are nearly 1 billion children
and adults who are living needlessly with poor vision that can be
easily corrected with a pair of eyeglasses. Without proper vision they
are unable to realize their full potential; the cost to the global
economy due to lost productivity alone is $410 billion every year.
For children, the link between vision correction and improved
educational and economic outcomes is clear. The provision of eyeglasses
improves educational outcomes, increases literacy rates, reduces
absenteeism and dropout rates, and according to a recent UNESCO study,
every $1 invested in ensuring school children have the eyeglasses they
need generates $6-$26 in benefits derived from potential increase in
lifetime earnings.
For adults, uncorrected presbyopia (inability to see up close after
the age of 40) harms people's quality of life and productivity. A
recent study finds that 80% of patients with uncorrected presbyopia
have difficulty performing near-vision-related tasks, like reading and
sewing. This corresponds with a 22% decrease in quality of life.
Presbyopia also decreases worker productivity. Recent randomized
controlled trials show that correcting presbyopia can lead to a 22%
increase in relative productivity, and a 33% increase in income.
Additionally, vision correction results in safer drivers and safer
roads. For all these reasons, and with ever-increasing demands on
limited resources, funding to improve access to eyeglasses has a very
high return on investment.
EYElliance is grateful that the US Congress has recognized that
eyeglasses help individuals live up to their full potential and become
self-reliant. Dedicating $5M to the provision of low-cost eyeglasses
across the world is a powerful first step. Although this clearly
represents progress, the resources are limited so it becomes contingent
on EYElliance, as the neutral broker in this space, to ensure they are
used strategically to their best and highest purpose.
We support the continued emphasis on empowering national
governments and private sector entrepreneurs to deliver optical
services and eyeglasses to the people in need. Below is a summary of
results from this effort.
Priority (1) Government-led and implemented expansion of access to
eyeglasses within public health and education systems.
In Cambodia, USAID has funded an international eye care NGO to
support fully functioning government-managed vision centers--where
trained professionals perform comprehensive eye exams, dispense
eyeglasses, and treat basic eye conditions. The resources are also
being used to develop school-based eye health programming.
--317,493 school children and teachers received vision screenings
through schools, and 4,771 received eyeglasses.
--38,074 beneficiaries received vision screenings through community
outreach, and 21,257 received eyeglasses.
--139 eye care personnel trained; new programs established for
pediatric refraction and ongoing professional development.
--27 public vision centers have been equipped with upgraded equipment
and are operated by newly trained staff.
--National policy outcomes included endorsing a vision centre manual,
a school eye health curriculum, and an eyeglass supply chain
scheme.
In April 2023, USAID awarded a grant to support the expansion of
government eye health services in Zambia to include community-level
workers and school-based programming.
USAID has appropriately funded initiatives that are working to
address the biggest barrier to widespread access to prescription
eyeglasses--the training of new eye health professionals. By
emphasizing government-led initiatives, USAID is increasing the
likelihood that Ministries of Health will assume responsibility for
costs over the long term.
Priority (2) Growing the number of for-profit optical businesses
serving low-income customers.
USAID recently awarded $350K to Lapaire, a private optical company
based in Kenya that sells affordable eyeglasses to low-income consumers
in six African countries. Approximately 65% of Lapaire's customers are
purchasing eyeglasses for the first time despite having poor vision for
years. While USAID learned about Lapaire independently of EYElliance,
Lapaire's founder launched the venture after reading about the business
opportunity in a 2016 report authored by EYElliance and published by
the World Economic Forum. EYElliance has been working with Lapaire
since 2021, providing business-building support and advising on a new
investment opportunity (debt & equity), enabling the business to add
500 new optical stores. Alongside this investment, USAID's funding
will:
--Strengthen Lapaire's training program to ensure quality services
are available and train at least 24 new eye health
professionals.
--Open 13 peri-urban optical shops and provide 20,000 eye exams
annually at these locations.
Vision is a public good with clear, high impact, social and
economic benefits. It is a powerful example of a problem that impacts 1
billion people that we can solve in one generation. We have the
solution; and we know how to deliver that solution at a low cost
tapping into the power of both the public and private sectors. We
applaud the US Government for their leadership and implore its leaders
to deepen their commitment. We envision our great country leading an
effort that results in a world where every person who needs a pair of
glasses, has a pair of eyeglasses. We envision a day when no girl or
boy falls out of school, nor no woman or man falls out of the workforce
because that do not have pair of eyeglasses.
[This statement was submitted by Elizabeth Smith & Jordan Kassalow,
Co-Founders.]
______
Prepared Statement of First Focus Campaign for Children
Dear Chairman Coons and Senator Graham,
I am writing on behalf of First Focus Campaign for Children to
thank you for your leadership on the State, Foreign Operations and
Related Programs subcommittee of Appropriations. First Focus Campaign
for Children is a bipartisan advocacy organization working to make
children the priority in Federal policy and budget decisions. This
testimony relates to the U.S. Agency for International Development and
the State Department Bureau of Global Health Security and Diplomacy.
We appreciate the Committee's expanded funding for Maternal and
Child Health/GAVI the Vaccine Alliance in FY24 and for the modest plus
up of $1.5 million for Vulnerable Children programs. Given the number
of challenges facing children worldwide, these investments were very
welcome.
u.s. foreign assistance has achieved great things for children, but
more is needed
It is in large part thanks to this subcommittee's investment in
poverty-focused development and humanitarian assistance over the past
three-and-a-half decades that the deaths of children under 5 years old
due to preventable disease and malnutrition have fallen from more than
12 million a year in 1990 to roughly 5 million today. Further, over the
past 20 years, this subcommittee's investment in PEPFAR has enabled 5.5
million babies to be born HIV-free and 25 million men, women and
children to be saved from HIV.
While these are huge triumphs to be celebrated, recent global
setbacks including the COVID-19 pandemic, advancing climate change, new
and ongoing conflicts, and mounting global food insecurity are putting
these achievements at risk and heightening the urgency of refining our
efforts. It is critical that the U.S. do all it can to ensure maximum
impact of the limited pot of money spent on foreign assistance,
especially the dollars spent on behalf of the most vulnerable children.
The fact is, like elsewhere in the U.S. budget, children have never
received the attention or share of foreign assistance resources they
deserve. Children have specific developmental needs and investing in
them delivers an outsized return on investment. Yet our spending on
kids is miniscule. First Focus on Children's 2023 Children's Budget
documents that just 9 cents of every $1 of U.S. foreign assistance goes
to babies and kids worldwide despite the fact that they make up a third
to a half of the population globally.
children are in crisis
The imbalance of our investment in children internationally is
unfair and out of alignment with the facts on the ground. According to
UNICEF, children are more likely to live in poverty than adults and
more vulnerable to its effects. Poverty, and everything that comes with
it, has a devastating impact on child development.
In addition to shortening their life spans, absolute poverty
inflicts sickness and suffering on children that stunts the growth of
their bodies and brains--robbing them, their families and their nations
of their full potential. According to a report in The Lancet ``a
staggering 43 percent of children under 5 years of age--an estimated
250 million--living in low- and middle-income countries are at risk of
suboptimal development due to poverty and stunting. The burden is
currently underestimated because risks to health and wellbeing go
beyond these two factors.''
congressional action on behalf of children worldwide
As acknowledged above, the leadership of the U.S. Congress has
contributed to the dramatic drop in deaths of under 5-year-olds
globally from preventable diseases and malnutrition.
Then in 2021, in an attempt to increase the impact of U.S. efforts
and ensure that kids were not just surviving but thriving, you,
Chairman Coons (D-DE), along with former Senator Roy Blunt (R-MO) and
Representatives Joaquin Castro (D-TX) and Brian Fitzpatrick (R-PA),
secured passage of the Global Child Thrive Act (GCTA) mandating the
integration of Early Childhood Development (ECD) into U.S. foreign aid
programs serving kids. By integrating ECD into current interventions,
you were following the science and multiplying the positive impacts of
already successful U.S. international programming. Incorporating an ECD
tactic like parent training on responsive caregiving into a maternal
and child health program, for example, elevates that program and
ensures that children not only live beyond their fifth birthday but
that their brains and bodies develop to their full potential too.
where is usaid on implementation of the global child thrive act (gcta)?
Unfortunately, implementation of the Global Child Thrive Act has
been slow. Since its passage, the U.S. Agency for International
Development (USAID) has released implementation guidance designed for
easy use by U.S. missions around the globe. This is a good step in the
right direction, but funding and leadership from the top of USAID is
desperately needed to successfully implement the law.
Part of the holdup is that implementation of the act falls to the
vastly under-resourced Children in Adversity Office at USAID. (This
office is funded each year by the Vulnerable Children Account.) The
Children in Adversity Office does some of the most important child-
focused work in the world by promoting care for the most vulnerable
children, protecting children from violence and neglect, and supporting
family care (as opposed to orphanages or institutions, which tend to
impede child well-being and development). But, due to its small staff
and lack of resources, the office's reach has been limited, as is its
ability to ensure the implementation of the GCTA all on its own. Last
year's $1.5 million increase for the account will certainly help, but
$35 million is needed in FY25 to facilitate further implementation of
the GCTA and enable the Children in Adversity Office to continue its
other critical work.
a call to action for children
First Focus Campaign for Children urges the prioritization of
children's needs in your FY25 State, Foreign Operations bill and
respectfully requests the following appropriations levels:
--$35 Million for Vulnerable Children
--$5.15 Billion for PEPFAR (Including $1.65 Billion for the Global
Fund)
--$1.15 Billion for Maternal and Child Health
--$300 Million for Nutrition
--$1.1 Billion for Basic Education
--$925 Million for Malaria
--$500 Million for WASH
--$175 Million for UNICEF
--$4.85 Billion for International Disaster Assistance
--$4 Million for Lead Exposure/Toxic Chemicals
The legacy of this subcommittee is one of real-world impact: saving
millions of lives and reducing needless suffering globally. First Focus
Campaign for Children urges your continued leadership in this area.
Thank you for your consideration.
[This statement was submitted by Leila Nimatallah, VP, Advocacy &
Mobilization.]
______
Prepared Statement of Food for the Hungry
Chairman Coons, Ranking Member Graham, and distinguished members of
the subcommittee, thank you for your leadership and the opportunity to
provide written testimony. My name is Mark Viso, and I am the President
& CEO of Food for the Hungry, a Christian humanitarian organization
providing life-changing relief and development programs since 1971. At
Food for the Hungry, we design, develop, and deliver catalytic
solutions that build resilience so that children, families, and
communities can flourish. In light of growing global needs, I
respectfully ask the subcommittee to provide robust funding for
critical development, humanitarian, and global health programs at USAID
and the Department of State, including no less than $1.2 billion for
the Global Food Security Strategy, also known as Feed the Future; $300
million for Nutrition within Global Health Programs; $1.15 billion for
Maternal and Child Health; $500 million for Water, Sanitation, and
Hygiene; and $985 million for Basic Education. I also request $4.85
billion for International Disaster Assistance; $4.77 billion for
Development Assistance; and $4.30 billion for the Economic Support Fund
in Fiscal Year 2025.
Inspired by our Christian faith, Food for the Hungry is honored and
privileged to serve vulnerable families and communities in many of the
world's most fragile contexts. In the face of spiraling global
conflicts, a worsening hunger and malnutrition crisis, ongoing climate
shocks, and growing economic uncertainty and political instability, we
remain committed to transforming lives ``so the poor have hope, and
injustice shuts its mouth'' (Job 5:16).
In my role, I am honored to meet global brothers and sisters
overcoming extraordinary challenges and humbled by their remarkable
resolve to forge a better, brighter future for themselves and their
families. From Ethiopia to Haiti and beyond, I am profoundly moved by
the steadfast and selfless commitment of our staff and heartened to see
the transformative impact of our programs and partnerships. As the
needs of those suffering from poverty, marginalization, and injustice
have grown in scale and complexity in recent years, I have been
grateful to lead Food for the Hungry on a journey to reimagine
international development and our role within it, questioning long-held
assumptions, seeking creative and innovative solutions, and
recommitting ourselves to centering the experiences, needs, and desires
of those individuals, families, and communities we are privileged to
serve.
The deep, trusted relationships enjoyed by our local staff enable
Food for the Hungry to catalyze transformational change in even the
hardest of places, encouraged and sustained by Micah 6:8 ``to act
justly and to love mercy and to walk humbly with your God.'' By
partnering with the communities we serve, we deliver shareholder-led
development that prioritizes local needs and sustainable solutions that
result in resilient, flourishing communities.
Just as the depth of our longstanding local relationships
distinguishes Food for the Hungry, informing our innovative program
model and animating our future state, so too our diverse partnerships
with individuals, churches, corporations, foundations, the U.S. and
other donor governments, and various United Nations agencies is a
defining feature of Food for the Hungry, enabling us to leverage the
resources entrusted to us for greatest impact. In 2023, Food for the
Hungry reached nearly 10 million people in 18 countries experiencing
extreme poverty, creating more than $14 million in assets, delivering
improved nutrition to over half a million young women and mothers,
ensuring access to clean water for over 700,000 people, and training
over 40,000 community change agents in gender dignity and child
protection. Through the tireless commitment of our staff, over 99% of
whom serve in their country of origin, we are transforming broken
relationships and systems, and restoring vulnerable communities and
families to lives of health and hope.
Still, we are reminded daily that the polycrisis continues. Right
now, 783 million people face chronic hunger, with nearly 300 million
people experiencing acute food insecurity requiring immediate
assistance. More than a third of the world cannot afford and access
sufficient nutritious food. Estimates suggest that 19 million children
missed out on routine but life-saving immunizations due to the
pandemic. 70% of children in low and middle-income countries experience
learning poverty, unable to read and comprehend a simple text by age
10. Over 2 billion people lack access to safely managed drinking water.
Current estimates suggest over 130 million people will be forcibly
displaced from their homes this year. Globally, nearly 150 million
children suffer from stunted growth and development due to a chronic
lack of essential nutrients, while more than 45 million children suffer
from wasting, the most severe and life-threatening form of
malnutrition. The number of people on the brink of famine has doubled
since just last year, and every day, more than 13,000 children and 800
women die from preventable causes.
These figures are heartbreaking, and each one of them represents a
real person currently being robbed of the resources and agency needed
for a full, flourishing future. But we can change the status quo. With
the political will and public courage of lawmakers like you, the U.S.
government can increase foreign assistance investments to save lives
and livelihoods now while building the long-term resilience necessary
to better insulate vulnerable communities and families from future
shocks and stresses. The subcommittee's past support for critical
relief and development programs confirms that you, too, are moved by
present injustices and motivated to mobilize the full force of the U.S.
government to fight poverty and human suffering. Your continued
partnership in empowering the most vulnerable members of our global
community is indispensable to the work of Food for the Hungry. Toward
that end, we respectfully request the following specific funding
amounts in Fiscal Year 2025.
We request $1.2 billion for the Global Food Security Strategy, also
known as Feed the Future. A multiagency effort focused on addressing
the root causes of hunger, poverty and malnutrition, Feed the Future
works in 20 high-need, low-resource, focus countries to develop and
deploy agricultural innovations, unlock financing for food security,
and empower people to feed themselves and nourish the next generation.
Feed the Future also supports research and technical assistance aimed
at reducing communities' vulnerability to food shocks and stresses,
thereby building capacity and resilience. Since its inception, Feed the
Future has helped smallholder farmers generate more than $28 billion in
sales, and just last year the program reached over 29 million people
with food security interventions and 32 million children with
nutrition-specific interventions.
We request $300 million for the Nutrition subaccount within Global
Health Programs. Though nearly half of all deaths in children under
five are attributable to malnutrition, less than 0.4% of U.S. foreign
assistance is spent on its prevention and treatment. The Nutrition
subaccount plays a central role in turning the tide against
malnutrition by targeting action during the important 1,000-day window
between pregnancy and a child's second birthday. Focusing on low-cost,
high-impact interventions such as nutrition education, breastfeeding
support, multiple micronutrient supplementation, and the prevention and
treatment of stunting and wasting, this funding supports the long-term
physical and cognitive development of some of the world's most
vulnerable women and children.
We request $1.15 billion for Maternal and Child Health within
Global Health Programs. This funding supports programs aimed at ending
preventable maternal and child deaths through the strengthening of
health systems and routine immunizations as well as the treatment of
disease and integration of safe water, sanitation, and hygiene
practices. Maternal and Child Health funding also provides access to
skilled birth attendants and quality obstetric care, as well as
training for frontline health workers.
We request $500 million for Water, Sanitation, and Hygiene (WASH).
Key for improved health and poverty reduction, WASH funding increases
access to safe drinking water and adequate sanitation, while promoting
the adoption of key hygiene behaviors. It also supports climate-
resilient conservation of freshwater resources, as well as efforts
focused on reducing water-related conflict and fragility.
We request $985 million for Basic Education. Basic education
programs increase access to and improve the quality of education in
low- and middle-income countries. Through teacher training, expanded
education delivery, and other supports designed to aid children's
acquisition of reading, math, and other foundational learning skills,
this funding helps ensure children and young people fulfill their full
potential and lead productive, successful lives.
We request $4.85 billion for International Disaster Assistance
(IDA). IDA funds provide critical humanitarian services including food,
water, shelter, health care and protection in times of natural
disaster, conflict, and insecurity. They also help improve countries'
response to crises and reduce underlying risks and vulnerabilities.
Food for the Hungry is proud to have partnered with the U.S. government
to implement IDA-funded Emergency Food Security Programs as well as
non-food security responses such as water, sanitation, and hygiene.
We request $4.77 billion for Development Assistance (DA). DA funds
support long-term poverty reduction programs focused on food security;
water, sanitation, and hygiene; livelihoods; education; and climate
programs. These funds are critical to the development of resilient,
self-reliant, equitable, and democratic societies worldwide.
We request $4.30 billion for the Economic Support Fund (ESF). ESF
funds provide economic assistance to help countries meet urgent
political, economic, development, and security needs. This includes
programs to combat human trafficking, fight corruption, increase
transparent governance, and protect fundamental human rights. Food for
the Hungry is proud to have partnered with the U.S. government to
implement innovative COVID-19 response programs through ESF.
We find ourselves at a pivotal moment in history, confronting
climate chaos, growing economic and social injustice, and a worsening
hunger and malnutrition crisis. Rising instability, democratic
backsliding, and current donor trends seriously jeopardize our ability
to meet the Sustainable Development Goals. This new reality has shocked
our collective conscience and forced many of us to confront the same
uncertainty that many of the world's most vulnerable have known for far
too long. But with a bold vision, shared purpose, and continued U.S.
leadership, we can meet the moment and overcome these global
challenges.
Robust funding for international relief and development programs
saves lives and creates a safer and more prosperous future for us all.
It serves as an important reflection of our values and a critical
reminder of American strength and generosity, while galvanizing
increased investment and engagement from partners and allies. Now is
the time to continue such leadership. As an organization called to
``feed the hungry and satisfy those who are in need'' (Isaiah 58:10),
Food for the Hungry stands ready to partner with you in this urgent
work.
______
Prepared Statement of Friends Committee on National Legislation
Chairman Coons, Ranking Member Graham, and Members of the
Committee, thank you for the opportunity to testify in support of
robust funding for the State Department and the U.S. Agency for
International Development in the Fiscal Year 2025 State, Foreign
Operations, and Related Programs Appropriations bill.
Today, the world is experiencing the highest number of armed
conflicts since World War II\1\. It was during World War II that
members of the Religious Society of Friends, also known as Quakers,
founded the Friends Committee on National Legislation (FCNL) to be a
voice for peace on Capitol Hill. For more than 80 years, FCNL has
continually advocated for a world free of war and the threat of war, a
society with equity and justice for all, a community where every
individual's potential may be fulfilled, and an earth restored. Guided
by the Religious Society of Friends' historic Peace Testimony \2\ and
the voices of hundreds of Quaker meetings across the country, we work
to inform lawmakers, influence policies, and support peaceful solutions
to violent conflict that address the root causes of war and injustice.
To that end, I urge your support for robust funding in the FY25
appropriations bill for accounts that help prevent mass atrocities,
support urgent humanitarian needs, and strengthen climate resilience
globally. These include: $25 million for Atrocities Prevention at the
State Department; $344 million for the United Nations Relief and Works
Agency for Palestine Refugees; and $270 million for USAID's Adaptation
programs. You can find a full list of FCNL's FY25 SFOPs priorities in
the chart at the end of my testimony.
These efforts are more crucial than ever, and in my testimony
today, I will urge you to invest deeply in the tools needed to prevent
mass atrocities, alleviate human suffering and respond to the climate
crisis. We continue to witness horrific violence in Gaza, renewed
atrocities in Sudan, grinding war in Ukraine, and ongoing deadly
conflicts in Haiti, Yemen, Syria, Somalia, Myanmar, and many other
countries. Globally, we have seen that contemporary violent conflicts
inflict disproportionate harm on civilians through the deployment of
indiscriminate weapons such as banned cluster munitions, the use of
starvation as a weapon of war, conflict-related sexual violence, and
systematic targeted attacks against ethnic, racial, and religious
groups. The United States can and must do more to prevent, mitigate,
and respond to violent conflict.
All too often in today's world, these instances of violent conflict
are compounded by other global threats, such as climate change and
forced migration. Last year shattered all previous records and was
named the hottest year since recording began.\3\ Combined with the
current El Nino effect warming sea surface temperatures in equatorial
regions of the planet, 2023 saw truly striking levels of both droughts
and extreme flooding. Additionally, last year, more than 345 million
people faced high levels of food insecurity, more than double the
number in 2020, according to the World Food Program.\4\ From 2022-2023,
the world suffered the largest single-year increase in forced migration
in the history of the United Nations High Commissioner for Refugees
(UNHCR), with over 114 million people displaced globally due to
persecution, violent conflict, human rights violations, and climate and
environmental disasters.\5\ The tragedy continues, UNHCR anticipates
more than 130 million people will experience forcible displacement or
statelessness in 2024.\6\
The invasion of Ukraine has only exacerbated this suffering as it
has driven food prices up and created further economic shocks. And, for
the 18th consecutive year, 2023 saw a decline in global freedom,\7\
with 72% of the world's population now living in autocracies.\8\
None of these crises can be resolved in isolation, as each can
trigger and worsen the others. The rise of authoritarianism often
exacerbates the drivers of violent conflict, including economic,
social, and political marginalization and exclusion, while reducing
avenues for nonviolent conflict resolution. Conflict-affected
communities are often under-equipped to respond to climate shocks,
which loom large over other crises. These shocks often drive further
displacement and food insecurity, which in turn can drive new violent
conflicts.
Collectively, these compounding crises highlight the increased
urgency to invest in peacebuilding, violence prevention, and
resiliency. Failing to do so is too costly a choice, in dollars and in
lives. When the United States waits until the seeds of violence bear
fruit, its available tools are fewer, more expensive, and less
effective, often based on securitized approaches that aim to enforce
order rather than ensure justice, and which can exacerbate instability
in the long run.
One critical tool for addressing humanitarian crises that the U.S.
has championed for decades has been the United Nations Relief and Works
Agency (UNRWA). This February, I was humbled to join a peace delegation
of faith leaders to Israel, Palestine, Jordan and Lebanon organized by
Churches for Middle East Peace. In the region I met with a wide range
of religious, political, and civil society leaders, including human
rights defenders, humanitarian aid workers, peacebuilders and students.
I was inspired by so many of them working on the frontlines for peace.
On the trip, it became even more clear to me that the only way to
save the hostages, Gazans and all Palestinians and Israelis from
escalating horrors in the region, is with a comprehensive, permanent
cease-fire. I want to pause here and thank every Member of Congress who
has spoken out for a ceasefire and urge every Member who has not yet to
do so.
At the same time, the urgent and growing famine in Gaza\9\ must be
addressed immediately. FCNL was greatly alarmed by Congress choosing to
cut all funding to UNRWA in the FY24 Further Consolidated
Appropriations Act (Public Law 118-47). UNWRA not only continues to
provide critically needed food assistance to families and children in
Gaza who rely on them for daily survival, but also provides primary and
vocational education, primary health care, and social services, among
many areas of work.
In response to allegations that several of UNRWA's thousands of
employees may have played a role in the horrific October 7 Hamas
attacks in Israel, UNRWA has taken action to address the
allegations.\10\ In late April, independent panel appointed by the UN
Secretary General, reported that UNRWA has ``robust'' procedures to
uphold UN neutrality principles but mentioned implementation gaps,
partly due to funding issues.\11\ The report made dozens of
recommendations to improve neutrality, which UNRWA pledged to
implement. The panel also found that Israel has provided no evidence to
its claim that UNRWA staff in Gaza are members of Hamas or participated
in the October 7 attacks. The U.S. government cutting off funding for
this critical aid to millions of civilians who are suffering, over the
alleged actions of some, is cruel, unjust, and profoundly immoral. As
such, I urge that you restore funding to UNRWA and provide at least
$344 million in funding to UNRWA to address what has become the world's
most urgent humanitarian crisis.
Further, I feel compelled to mention as well that it is
unjustifiable for the United States and other nations to provide
further arms and military assistance to the Israeli government. With
over a million people in Gaza on the brink of famine and the risk of
regional conflict growing, more weapons of war will only exacerbate
tensions, worsen the humanitarian suffering in Gaza, and send a message
of impunity to the Netanyahu government as it violates international
humanitarian law. Rather than greenlighting more bomb sales, I urge
Congress to work to secure an immediate and permanent ceasefire to end
the violence.
Tragically, mass violence against civilians is occurring in many
other places around the world as well. Secretary Blinken's December
2023 determination that war crimes, crimes against humanity, and ethnic
cleansing are being committed in Sudan \12\, is a stark call for us all
to do more to prevent such mass atrocities. The United States has been
a global leader in atrocities prevention policy for over a decade, and
I urge you to match this with robust investments. In 2011, the United
States was the first nation to establish an interagency body dedicated
to atrocities prevention; in 2019 it was the first to pass a Federal
law mandating reporting on government-led atrocity prevention efforts
(the Elie Wiesel Genocide and Atrocities Prevention Act Public Law 115-
441); and in 2022, it was the first to release a public strategy for
atrocities prevention.
Atrocities Prevention funding is an essential tool at the disposal
of the U.S. government to ensure these efforts move from policy to
action. The 2022 U.S. Strategy to Anticipate, Prevent, and Respond to
Atrocities \13\ calls for the White House-led Atrocity Prevention Task
Force to identify up to 30 priority countries most at risk for
atrocities, and ``develop targeted response plans for priority
countries.'' However, in FY23 and FY24, Congress appropriated just $6
million for Atrocities Prevention. As the State Department's only
funding dedicated solely to the prevention of mass atrocities and
genocide, $6 million cannot match the ambition of the Strategy.
Atrocities Prevention programs work to prevent mass atrocities and
genocide by funding projects that engage in early warning, early
response, and long-term conflict transformation efforts. Atrocities
Prevention funding helps communities develop early warning networks to
alert communities of encroaching danger from non-state armed groups. It
helps community leaders strengthen their mediation and conflict
transformation skills to reduce tensions and prevent rumors from
becoming riots.
We urge Congress to match its financial support for atrocities
prevention to this legacy of global leadership. We greatly appreciate
the inclusion of $6 million for the Atrocities Prevention in FY24
appropriations, and we hope the Committee will act to increase this
critical funding. I urge you to appropriate at least $25 million for
Atrocities Prevention.
Further, the crucial first step in prevention is the recognition of
the early warning signs and risk factors of mass atrocities. To ensure
U.S. policy and programming can best be implemented, our diplomatic and
development professionals assigned to countries experiencing or at risk
of mass atrocities must receive training on recognizing and responding
to these early warning signs, as mandated in the Elie Wiesel Genocide
and Atrocities Prevention Act. As such, I urge you to make available
$500,000 each for the State Department and USAID to conduct Atrocities
Prevention training for Foreign Service Officers.
Perhaps one of the most successful resilience-building tools
available to the Federal Government lies within funding for USAID's
Adaptation program. Adaptation funding assists developing countries
with reducing their vulnerabilities to climate change's impacts--
impacts like increased hunger, intensified conflict, forced migration,
and exacerbated poverty. From floods to droughts to extreme heat and
rising sea levels, climate impacts are affecting communities worldwide
with increasing frequency, disproportionately impacting developing
countries and those who have done the absolute least to contribute to
the climate crisis in the first place. Examples of adaptation funding
include the building of sea walls to counter sea level rise, the
planting of drought-resistant crops in the Horn of Africa, and
investments in weather monitoring and early warning systems in rural
areas.
Adaptation funding is a crucial component of the President's
Emergency Plan for Adaptation and Resilience (PREPARE), a whole-of-
government plan to assist half a billion people around the world in
managing climate change's effects on their communities. Non-profit and
faith-based partners, as well as the private sector, have
enthusiastically jumped at this opportunity to work with the U.S.
government, mobilizing an estimated $2.3 billion in additional finance
from 21 private companies just in the past 2 years alone. By investing
in USAID's Adaptation account, you are investing in true U.S. global
leadership to counter the climate crisis. I urge you to appropriate at
least $270 million for Adaptation.
Advancing nonviolent ways of resolving disputes and ending climate
injustice is a moral, strategic, and financial imperative. It is past
time for the United States to begin investing in the world we all
seek--a world free of war and the threat of war. We urge Congress to
invest in, and lay the foundations for, peace in all its forms.
Chairman Coons, Ranking Member Graham, and Distinguished Members of
the Committee, I thank you for your work to build peace and for giving
me the opportunity to testify.
---------------------------------------------------------------------------
\1\ ``With Highest Number of Violent Conflicts Since Second World
War, United Nations Must Rethink Efforts to Achieve, Sustain Peace,
Speakers Tell Security Council.'' United Nations Press Office. https://
press.un.org/en/2023/sc15184.doc.htm. Accessed 2 April 2024.
\2\ ``Our Peace Testimony.'' Religious Society of Friends (Quakers)
in Britain.'' https://qfp.quaker.org.uk/chapter/24/. Accessed 2 April
2024.
\3\ ``NASA Analysis Confirms 2023 as Warmest Year on Record,''
Roxana Bardan https://www.nasa.gov/news-release/nasa-analysis-confirms-
2023-as-warmest-year-on-record/Accessed 2 May 2024.
\4\ ``A Global Food Crisis,'' World Food Programme, www.wfp.org/
global-hunger-crisis. Accessed 2 April 2024.
\5\ ``Six humanitarian crises that impacted refugees and displaced
communities in 2023,'' UNHCR. https://www.unrefugees.org/news/six-
humanitarian-crises-that-impacted-refugees-and-displaced-communities-
in-2023/. Accessed 2 April 2024.
\6\ UNHCR Global Focus. https://reporting.unhcr.org/. Accessed 2
April 2024.
\7\ Gorokhovskaia, Yana, et al. `` The Mounting Damage of Flawed
Elections and Armed Conflict.'' Freedom House, Feb. 2024, https://
freedomhouse.org/report/freedom-world/2024/mounting-damage-flawed-
elections-and-armed-conflict. Accessed 2 April 2024.
\8\ ``Democracy Report 2023: Defiance in the Face of
Autocratization,'' Varieties of Democracy (V-Dem). www.v-dem.net/
documents/29/V-dem_democracyreport2023_lowres.pdf. Accessed 2 April
2024.
\9\ ``Gaza: Halt the War Now to Save Children from Dying of
Imminent Famine, UN Committee Warns,'' UNHR. https://www.ohchr.org/en/
press-releases/2024/03/gaza-halt-war-now-save-child
ren-dying-imminent-famine-un-committee-warns. Accessed 3 April 2024.
\10\ ``Serious Allegations Against UNRWA Staff in the Gaza Strip,''
UNRWA. https://www.unrwa.org/newsroom/official-statements/serious-
allegations-against-unrwa-staff-gaza-strip. Accessed 20 March 2024.
\11\ Independent Review Group. Independent Review of Mechanisms and
Procedures to Ensure Adherence by UNRWA to the Humanitarian Principle
of Neutrality. New York: Office of United Nations Secretary General,
2024. Web. https://www.un.org/sites/un2.un.org/files/2024/04/
unrwa_independent_review_on_neutrality.pdf.
\12\ ``War Crimes, Crimes Against Humanity and Ethnic Cleansing
Determination in Sudan,'' U.S. Department of State. https://
www.state.gov/war-crimes-crimes-against-humanity-and-eth
nic-cleansing-determination-in-sudan/. Accessed 20 April 2024.
\13\ U.S. Department of State, Bureau for Conflict and
Stabilization Operations, Public Affairs. (2022). United States
Strategy to Anticipate, Prevent, and Respond to Atrocities. https://
www.state.gov/wp-content/uploads/2022/07/CSO-2022-SAPRAv2b-FINAL_2022-
06-03_508v9-Accessible-06292022a.pdf.
------------------------------------------------------------------------
Account Name FY24 Enacted FY25 Request
------------------------------------------------------------------------
Atrocities Prevention................... $6,000,000 $25,000,000
Atrocities Prevention Training, State 500,000 500,000
Department.............................
Atrocities Prevention Training, USAID... .............. 500,000
Complex Crises Fund..................... 55,000,000 75,000,000
Reconciliation Programs................. 25,000,000 40,000,000
International Disaster Assistance....... 4,779,000,000 4,850,000,000
Emergency Refugee and Migration 100,000 100,000,000
Assistance.............................
Migration and Refugee Assistance........ 3,928,000,000 4,450,000,000
Renewable Energy........................ 247,000,000 260,000,000
Sustainable Landscapes.................. 175,700,000 185,000,000
Adaptation.............................. 256,500,000 270,000,000
UN Relief and Works Agency for Palestine .............. 344,000,000
Refugees...............................
Middle East Partnership for Peace 50,000,000 100,000,000
Programs...............................
------------------------------------------------------------------------
[This statement was submitted by Bridget Moix, General Secretary.]
______
Prepared Statement of Friends of the Global Fight Against AIDS
Thank you to Chairman Coons, Ranking Member Graham, and members of
the Senate Appropriations subcommittee on State, Foreign Operations,
and Related Programs for your longstanding, bipartisan support for the
Global Fund to Fight AIDS, Tuberculosis and Malaria (the Global Fund).
As you know, the Global Fund is a multistakeholder partnership that
raises and invests more than $5 billion per year to fight HIV/AIDS,
tuberculosis (TB), and malaria. U.S. leadership and support--driven for
two decades by Congress--has provided the Global Fund with the
resources, partnership, and oversight to save 59 million lives since
2002.
Since the establishment of the Global Fund at the height of the
AIDS epidemic, the U.S. has played a crucial role in its success.
Congress mandated that U.S. contributions make up no more than one-
third of the Global Fund's resources, ensuring that dozens of other
donor countries around the world match your generous and far-sighted
appropriations two-to-one. Today, I ask you to continue this proven
approach by fulfilling the United States 3-year pledge to the Global
Fund and leveraging twofold investments from our international
partners. On behalf of Friends of the Global Fight, I respectfully
request that Congress appropriate a minimum of $1.2 billion for the
Global Fund in Fiscal Year 2025.
results
The Global Fund has made astonishing progress in the fight against
these three epidemics. Since the U.S. helped establish the Global Fund
in 2002, the combined death rate from AIDS, TB and malaria declined by
55% in countries where it operates. In that same period, life
expectancy in 15 high-burden countries in Africa increased by 26%.
Behind those figures are now multiple generations of people given the
opportunities to live healthy, productive, and dignified lives.
The Global Fund is achieving more and more every year. In 2022,
Global Fund investments provided 24.5 million people with
antiretroviral therapy for HIV, treated 6.7 million people living with
TB, and distributed 220 million bed nets to prevent malaria. Compared
with the year before, the Global Fund increased HIV prevention services
by 22%, increased TB diagnosis and treatment by 26%, and treated 11%
more people for malaria.
Despite this progress, the fight against HIV/AIDS, TB and malaria
is far from over. Fortunately, the Global Fund is equipped to
anticipate and adapt to new challenges. The Global Fund invests in
bringing new technologies to market, promotes access to care for
marginalized populations by partnering with those communities, and is
highly attuned to shifting dynamics in-country, thanks to its model of
local implementation and country ownership. Some of the progress to
control TB has been reversed by increasing drug resistance and by the
spread of COVID-19, which is a respiratory disease like TB. Using
innovative models and technologies, the Global Fund fought back,
registering dramatic increases in TB coverage after 2 years of COVID-
related declines. Drug and insecticide resistance, and the emergence of
new mosquito dynamics in Africa, threatens to worsen the malaria
epidemic. In response, the Global Fund helped bring new types of
insecticide-treated bed nets to market and is improving surveillance of
malaria vectors. It also invests in promoting health equity--a major
obstacle to providing HIV services, especially in countries like
Uganda, where shrinking civic space is putting pressure on vulnerable
communities most at risk of suffering from HIV.
what u.s. investment buys
In 2022, the U.S. made a bold a bold pledge to contribute up to $6
billion during the 3-year Seventh Replenishment of the Global Fund, the
final year of which is FY25. I thank Congress for supporting that
pledge in FY23 and FY24. Based on current and expected contributions by
other donors, $1.2 billion in FY25 would complete the 3-year pledge,
accounting for 33% cap on U.S. contributions. Fulfilling this pledge
would send a powerful statement of the U.S.'s enduring commitment to
strengthening global health and leading the fight against HIV/AIDS, TB
and malaria.
That investment would enable the Global Fund to continue its
lifesaving work in an increasingly challenging global health
environment. $1.2 billion from the U.S. would save an estimated 1.4
million lives and avert 30 million new cases of the three diseases. Any
additional contribution above that level could catalyze new short-term
investments from other donors and strengthen the investment case for
others to increase pledges for the Global Fund's 8th Replenishment in
FY26. Most importantly, additional funding will save more lives.
leveraging and strengthening u.s. investments
U.S. contributions don't just help pay for the Global Fund's
lifesaving work. They also leverage and reinforce a wide range of
health programs to respond now surging needs among the world's most
vulnerable people--maximizing value for money and return on investment.
As mentioned previously, every dollar the U.S. invests in the Global
Fund mobilizes two dollars of investment from our international
partners. The Global Fund also works with partner countries to
incentivize their own increased domestic investments in health systems.
The Global Fund works closely with implementing countries to realize a
transition to sustainability and self-sufficiency. The Global Fund is
also exploring supplementing its resources with innovative financing
mechanisms, such as facilitating debt relief in exchange for countries'
own health investments.
The Global Fund works strategically with U.S. bilateral health
assistance programs like PEPFAR and the President's Malaria Initiative.
Through this collaboration, the Global Fund accelerates the
effectiveness of U.S. bilateral programs and fills gaps in service
delivery.
The Global Fund has demonstrated keen agility to fight the three
epidemics and deliver care in challenging operating environments such
as Ukraine and Nigeria. That is because the Global Fund has built
trusted relationships and resilient supply chains in partnership with
local faith, civic and private sector partners, and invests in
community health workers. Since 2002, the Global Fund has disbursed
more than $15 billion in challenging operating environments,
complementing U.S. efforts to increase stability and security in
conflict zones and fragile States around the world.
The Global Fund's work to fight the three epidemics also
contributes to global health security, reinforcing the U.S.'s own
emphasis on pandemic prevention, preparedness, and response. An
independent study published in the Lancet concluded that one-third of
Global Fund investments also support health security. By building
health systems that can fight against epidemics today, the Global Fund
is contributing to preventing the pandemics of tomorrow.
efficiency and oversight
Thanks to the Global Fund's operational effectiveness, efficiency
and unique partnership model, it is an outstanding steward of U.S.
taxpayer dollars. The Global Fund has no paid staff in any implementing
country. Instead, local Country Coordinating Mechanisms--which include
government and non-government partners--design and implement programs
with rigorous oversight by the Global Fund. This ensures that countries
are empowered to take ownership of health programs, while keeping
Global Fund operating costs to a minimum. In fact, the Global Fund's
operating expenditure as a percentage of donor contributions has
steadily decreased, and is 5.1%, significantly below most comparable
organizations. The U.S. exercises oversight of its investments through
a permanent seat on the Global Fund Board and detailed reporting to
Congress.
The Global Fund also ensures value for money by working with the
private sector to shape markets so that it can procure and deliver high
quality interventions affordably and efficiently. The private sector,
which is represented in a permanent seat on the Global Fund's board,
works closely with the Global Fund on procuring commodities,
incentivizing and deploying innovations, and strengthening supply
chains. It is no surprise, then, that 20 leading American and global
corporations recently wrote a letter to you supporting a $1.2 billion
contribution to the Global Fund for FY25. As they note, Global Fund
programs greatly improve operating environments for U.S. companies--
including by making workers and consumers healthier and more
prosperous-and produce $31 in economic gains for every dollar invested.
conclusion
For more than two decades, the U.S. has invested in the Global Fund
with historic impact. It is no exaggeration to say that millions of
women, children, and other vulnerable people owe their lives to the
generosity of the American people and their representatives in
Congress. Today, I ask you to keep up the fight. A $1.2 billion
contribution to the Global Fund, along with robust appropriations for
the bilateral health assistance programs with which it coordinates so
closely, will save lives and reinforce U.S. global leadership. With
your continued support, the world can rid itself of these terrible
epidemics. This is not only the right thing to do--this investment
keeps all Americans safer and demonstrates our values in other
countries. It is also a preeminent sign of American leadership based on
unique comparative advantages. Truly, we cannot afford to step back.
Thank you for your lifesaving leadership in support of the Global Fund
and global health investments.
[This statement was submitted by Chris Collins, President and CEO.]
______
Prepared Statement of Gavi, the Vaccine Alliance
Thank you for the opportunity to provide testimony to the
subcommittee on behalf of Gavi, the Vaccine Alliance (Gavi). I
respectfully request the Committee to provide $340 million as the U.S.
contribution in Fiscal Year 2025 to Gavi and to increase USAID's
Maternal and Child Health account commensurately. Fiscal year 2025 is a
foundational and signal-setting year for the United States' commitment
to Gavi's next strategic funding cycle (2026-2030). We appreciate the
commitment to a 4-year pledge to Gavi's next strategic period
articulated in the President's Budget FY25 request. A commitment by the
United States to provide $340,000,000 to Gavi in fiscal year 2025 in
anticipation of its replenishment in 2026 will allow Gavi to maximize
its ability to provide life-saving vaccines and to leverage
contributions from other donors and increase partner countries' self-
financing.
A commitment from the United States at this level will help to
achieve Gavi's goal of reaching an additional 300 million people with
vaccines by the end of 2025--saving an additional 7-8 million lives. As
detailed in this testimony, it will help support critical immunization
efforts around the world and strengthen global health security, which
has become a critical priority for the US government. It will also help
to support prevention of backsliding and progress in routine
immunization, which was impacted severely by the COVID-19 pandemic. It
will also promote the stability in vaccine markets and drive innovation
in global health.
I would like to thank you, Chairman Coons, Ranking Member Graham,
and the other members of the subcommittee for your strong support of
Gavi, and for providing funding to Gavi at $300 million in fiscal year
2024. This Committee has been the leader, since our inception in 2000,
in the United States-Gavi partnership. You have been and continue to be
an essential part of our success in bringing vaccines to the world's
most vulnerable and in helping to keep the world safe from infectious
diseases. Your support for our routine immunization work in low-income
countries helps protect millions of children from vaccine-preventable
diseases every year.
a critical time for routine immunization
Since 2000, Gavi has driven unprecedented progress in global health
through one of the most cost-effective public health interventions
available--vaccines. With support from the United States and other
donors, Gavi works alongside a range of partners to expand routine
immunization access in low- and middle-income countries, while also
strengthening health systems and building stockpiles of vaccines
against potential disease threats like Ebola and yellow fever. In just
over two decades, this work has helped immunize more than 1 billion
children, averting an estimated 17.3 million deaths. With support from
the United States, Gavi expanded global access to COVID-19 vaccines and
delivered more than 2 billion doses to the world's lowest-income
countries, including hundreds of millions of U.S.-donated doses,
averting 2.7 million deaths.
The efforts of Gavi and its partners have protected millions of
children against deadly yet preventable diseases and have been a major
factor in nearly halving child mortality since 2000. But the COVID-19
pandemic has reminded the international community that global health
gains remain fragile. Pandemic-related disruptions led to the largest
sustained decline in childhood vaccine coverage in three decades,
resulting in deadly outbreaks of vaccine-preventable diseases like
polio and measles. With millions of children missing out on the
benefits of vaccination--including more than 10.2 million ``zero dose''
children in Gavi countries who have not received the most basic
vaccines--there is now a humanitarian and global health security
imperative to respond.
Disease outbreaks and increasing fragility and displacement
jeopardize national routine immunization programs and threaten global
health security. Increasing birth rates in Gavi-supported countries
also means that a greater number of children must be immunized each
year just to maintain the same coverage rates overall. The COVID-19
pandemic created new challenges, having disrupted vital immunization
services in the low-income countries Gavi supports and reducing the
number of planned immunization programs.
Without continued investment and support, disruptions like these
could lead to concurrent outbreaks of other deadly infectious diseases,
further stressing already weakened health systems and jeopardizing
decades of progress in immunization. Despite these challenges, Gavi has
set ambitious goals to reach even more children and, with continued
support and partnership, is well-placed to reach these goals and make
further progress on closing the immunization gap. Gavi continues to
play a critical role in supporting routine immunization and preventing
global infectious disease outbreaks by expanding vaccine access and
strengthening health systems in low-income countries, work that would
not be possible without the continued support of the US
the alliance's 2026-2030 strategy and the road ahead
Strong U.S. support for Gavi in FY25 is critical to help achieve
its goal of reaching an additional 300 million children with vaccines
by the end of 2025--saving an additional 7-8 million lives.
Specifically, an additional $40 million above last year's budget would
have a clear programmatic impact and additional return on investment,
directly supporting Gavi's ability to implement new tools to save
lives, including:
--Accelerate availability of malaria vaccines, enabling Gavi to buy
about 10.3 million doses of the new (unbudgeted) R21 malaria
vaccine, of a forecasted programmatic need of between 50-60
million doses. Malaria killed over 600,000 people in 2022, and
was responsible for an estimated 470,000 preventable child
deaths in Africa alone. An early study of the malaria vaccine's
impact shows it has the potential to reduce all child mortality
by an impressive 13%.
--Expand investments in Human Papillomavirus (HPV), a new goal has
brought groundbreaking momentum in the first steps against
cervical cancer. By 2025, Gavi aims to reach 86 million girls
and young women with the vaccine, which will avert 1.4 million
deaths from cervical cancer.
--Accelerate support for polio eradication, through the introduction
of a hexavalent, a single dose vaccine for six diseases. By
adding polio to the existing pentavalent vaccine (which
protects against five diseases diphtheria, tetanus, pertussis
(whooping cough), hepatitis B and Haemophilus influenzae type b
(Hib)), hexavalent will tackle more diseases more efficiently.
--Keep pace with programmatic needs due to population growth, as Gavi
needs to reach more children every year just to maintain
coverage levels. To catch-up and to increase coverage will
require even more resources, while currency fluctuations have
reduced Gavi's buying power.
Continued support will also help build strong, sustainable health
systems and enable additional countries to transition out of Gavi
support and begin fully self-financing their immunization programs.
Furthermore, continued support from the US will allow Gavi to expand
access to its portfolio of vaccines to as many as 20 diseases and
invest in critical emergency stockpiles. Gavi programs have been a
major factor in reducing the number of deaths due to vaccine-
preventable disease by as much as 70% since 2000.
the gavi model
Gavi's impact draws on the strength of its partners, all of whom
play a critical role in the Alliance. This unique model brings together
donors, including sovereign governments like the United States;
implementing country governments; private sector partners,
international organizations such as UNICEF, WHO, and the World Bank;
and civil society partners to build sustainable, country-led
immunization programs in lower-income countries.
Empowering countries to take ownership of their vaccination
programs is a core component of the Gavi model. Every country that
receives Gavi support shares the responsibility of vaccinating their
children and co-finances vaccine costs. As a country's income grows,
their co-financing obligation also grows until they reach a specific
Gross National Income cap, at which point they begin to transition out
of financial support from Gavi. Throughout this process, Gavi provides
technical support and guidance to ensure transitioning countries have
the capacity to continue implementing sustainable and equitable vaccine
programs. Currently, 19 countries have fully transitioned from Gavi
support with more expected to transition in the coming years.
Building healthy markets is critical to the long-term success of
the Gavi mission. Since its inception in 2000, Gavi, its partners, and
the private sector have been working to improve vaccine market
certainty by pooling demand from Gavi-eligible countries. Gavi's
purchasing power covers more than half of the annual global birth
cohort, enabling it to provide a large and reliable market when
negotiating vaccine prices, which also allows Gavi to leverage pooled
procurement and preferential pricing with manufacturers. These market
shaping strategies have also helped attract new manufacturers across
the world to support Gavi-eligible countries, starting from five firms
in 2001 to 19 firms today. Partnership with the private sector is also
integral to Gavi's model, leveraging their financial resources,
operational expertise, and innovation helps the Alliance to deliver on
its ambitious coverage and equity goals.
gavi's contribution to global health security
Immunization is among the most cost-effective ways to prevent
epidemics and is a crucial component of any global health security
strategy. As the COVID-19 pandemic has demonstrated, investments in
global health security are crucial to protect Americans, prevent loss
of life, and protect the global economy. Gavi plays an important role
in disease control and strengthening global health security by
maintaining emergency vaccine stockpiles to respond to outbreaks of
cholera, meningococcal disease, yellow fever, and Ebola.
Gavi also works to improve global health security and infectious
disease prevention and control by building strong health systems in
Gavi-eligible countries. These investments enable countries to better
identify, track, and respond to infectious disease threats and to reach
more children with routine immunization services. Continued
contributions from the US help ensure this work continues in Gavi-
supported countries, and in turn, makes the world safer for everyone.
In the current strategic period alone, Gavi will invest $2 billion
in Health Systems Strengthening, including through cold chain (e.g.
freezers, refrigerated trucks), electrification (e.g. solar),
electronic records, and healthcare worker training. Gavi's largest cold
chain program, launched in 2015, ended up being instrumental in
preparing countries for the COVID-19 rollout. The numbers demonstrate
the payoff of Gavi's health systems investments: in 2022, 2.6m more
children received basic routine immunizations than in 2021. This
demonstrates both the resilience of health systems and how Gavi core
programming helps prepare for pandemic response.
conclusion
Continued U.S. investment in global health programs is essential to
protect people from rising health threats and reducing preventable
deaths. These programs complement the impact of Gavi- supported
immunization efforts and are crucial to maintaining health security in
the United States and around the world.
A U.S. contribution of $340 million to Gavi for fiscal year 2025
and a commensurate increase for USAID's Maternal and Child Health
account are critical to maintain Gavi's gains. Continued funding for
Gavi will help expand immunization efforts, support country transitions
to self-financing vaccine programs, promote program sustainability, and
strengthen global health security.
We thank this subcommittee for its long history of protecting
global health and other foreign assistance programs.
Thank you for your consideration.
[This statement was submitted by Chloe Cooney, Director of U.S.
Strategy.]
______
Prepared Statement of Global Campaign for Education--United States
fy2025 budget for international basic education programs, usaid and
state department
As the Secretary of the Board of Directors for the Global Campaign
for Education-U.S. (GCE-US), I represent a diverse coalition of more
than 80 international nonprofit organizations, faith-based groups, and
advocates dedicated to ensuring quality, universal education for all
children. We urge you to support investments in education globally by
allocating at least $1.125 billion to the Basic Education account--
including at least $175 million for the Global Partnership for
Education (GPE) and at least $50 million for Education Cannot Wait
(ECW), both of which complement U.S. bilateral education efforts.
The power of education is clear: education increases security and
stability, spurs economic growth, allows individuals, communities, and
countries to become more self-reliant, and provides proven results
across development sectors. As outlined in the United States Agency for
International Development's (USAID) Education Strategy, ``the U.S.
government recognizes that its investments in international education
serve as a force multiplier for all of its work in international
development.'' \1\
While support for International Basic Education funding is always
important, the need for international education assistance has
increased exponentially due to humanitarian emergencies. Globally, 224
million crisis-affected children \2\ urgently need education and
support. Over one billion students in low-and-middle income countries
have lost at least 1 year of in-person classroom learning, estimated to
reduce global prosperity and future earnings by at least $21 trillion
globally.\3\
Foundational learning losses have taken a substantial toll: it is
estimated that in low-and-middle income countries, 70% of 10-year-olds
are unable to read or comprehend a simple text.\4\ This combined
measure of schooling and learning is referred to as ``learning
poverty.'' \5\ In Sub-Saharan Africa, the rate of learning poverty is
as high as 89%.\6\
USAID and U.S. government leadership are vital to address global
education challenges. Young people--particularly girls, children and
youth with disabilities, those in crisis and emergency settings, and
historically marginalized groups--need support to access inclusive,
quality education. We must fully fund International Basic Education and
protect against any possible decreases in these important programs.
Decreasing global education funding could result in a lost
generation without education and sharply curtailed opportunities for
global and economic stability. Each year of education reduces the risk
of conflict by approximately 20%.\7\ When children and youth are out of
school, they are often exposed to education loss, including regression
in foundational knowledge, increased exposure to violence and risks,
and increased danger of not completing school.\8\ The risks are even
higher for girls and youth with disabilities. Teenage girls experience
a 65% increased risk of pregnancy when schools are closed during
crises.\9\ Schools often deliver key health, nutrition, water,
sanitation, and hygiene supports.\10\
Despite these challenges, USAID and multilateral partners like the
Global Partnership for Education (GPE) and Education Cannot Wait (ECW)
have found effective solutions to address evolving education needs.
Bilateral U.S. basic education programs focus on strengthening quality
inclusive education, providing early learners with foundational skills,
and preparing youth for long-term success. This programming is
essential for achieving sustainable economic growth, poverty
alleviation, social stability, inclusion, and participatory democracy.
In FY2022, U.S. international basic education programming reached over
30 million learners in 73 countries.\11\ These important efforts
include programming foundational literacy and numeracy skills,
improving teachers' professional development and training, and
partnering with local organizations and governments to adopt public
sector policies supporting increased access to inclusive education.
U.S. support for international organizations, including GPE, ECW,
and the United Nations Educational, Scientific and Cultural
Organization (UNESCO), complements our bilateral programs, increases
U.S. reach, and leverages additional resources to address ongoing
education challenges. GPE is the largest global fund solely dedicated
to transforming education in lower-income countries and operates as a
unique, multi-stakeholder partnership. To receive GPE funding,
governments must commit to significant domestic educational
investments. During FY2023, GPE mobilized $2.7 billion in accelerated
funding to help developing countries support educational opportunities
for over 227 million students, trained over 481,000 teachers,
distributed 48 million textbooks, and built 6,664 classrooms.\12\
Launched in 2016, ECW is the first global fund dedicated to
education in emergencies and protracted crises. It delivers rapid,
collaborative responses to the educational needs of children and youth
affected by emergencies. In some of the world's most challenging crisis
settings--including ongoing armed conflicts, forced displacement,
refugee exodus, and weather-related emergencies--ECW has reached 8.8
million children and youth, delivered education materials and textbooks
to over 2.04 million children; reached 2.1 million girls; supported the
training of 72,629 teachers and administrators; increased the number of
teachers trained on mental health and psycho-social support; developed
26 Multi-Year Resilience Programs; and disbursed 26 First Emergency
Response grants.\13\ These programs are designed to meet education
needs for crisis-affected children and youth aged 3-18 years old,
particularly refugees, internally displaced children, girls, and
students with disabilities.
The U.S. government is instrumental to GPE and ECW's transformative
work, providing financial assistance and technical support, playing
leadership roles in GPE and ECW's governance structure, and encouraging
and matching ECW's engagement with the private sector. This has been a
collaborative effort, with USAID and the State Department/Bureau of
Population, Refugees, and Migration (PRM) working together to
contribute resources for ECW and share leadership responsibilities.
It is important for the U.S. to rejoin and contribute to UNESCO to
re-establish U.S. global leadership; rebuild trust with allies; and
support the development of science, culture, and education, which would
benefit both people across the globe and in the United States. By not
rejoining UNESCO, the U.S. has missed key opportunities to lead in the
international and education communities and all aspects where UNESCO
leads in the global system. Rejoining UNESCO is critical to promote
U.S. interests and counter the increasing influence of China, which
became UNESCO's largest donor during the multi-year absence of the U.S.
We urge that funding for International Basic Education not come at
the expense of other development or humanitarian accounts. We strongly
support sustained funding for the entirety of poverty-focused
development accounts, which work together to serve the common goal of
building a safer and more prosperous world. At a time when America is
facing an array of converging global threats that have significant and
increasing security and economic impacts here at home, we ask that you
support a strong and effective FY25 International Affairs Budget funded
at no less than the Administration's request of $64.4 billion,
including $62.4 billion for the FY25 State-Foreign Operations bill, to
advance America's security and economic interests at a time of
spiraling global crises.
Recognizing that global education is a force multiplier for all our
work in international development, it is vital that the U.S. provides
at least $1.125 billion for the Basic Education account in the FY2025
State and Foreign Operations Bill, including at least $175 million for
GPE and at least $50 million for ECW.\14\ We greatly appreciate your
consideration of our request and look forward to working together to
ensure quality, inclusive education for all children and youth.
---------------------------------------------------------------------------
\1\ https://www.usaid.gov/education/usg-strategy.
\2\ https://www.educationcannotwait.org/resource-library/crisis-
affected-children-and-adoles
cents-in-need-education-support-new-global.
\3\ https://openknowledge.worldbank.org/server/api/core/bitstreams/
6fb17cf5-1fad-4147-b7bb-691f63c29541/content.
\4\ https://www.worldbank.org/en/news/press-release/2022/06/23/70-
of-10-year-olds-now-in-learn
ing-poverty-unable-to-read-and-understand-a-simple-text.
\5\ The State of Global Learning Poverty: 2022 Update
(worldbank.org).
\6\ 70% of 10-Year-Olds now in Learning Poverty, Unable to Read and
Understand a Simple Text (worldbank.org).
\7\ https://documents1.worldbank.org/curated/en/504671468762020790/
pdf/28137.pdf.
\8\ https://www.educationcannotwait.org/covid-19/.
\9\ https://www.wvi.org/sites/default/files/2020-08/
Covid19%20Aftershocks_Access%20Denied_
small.pdf.
\10\ Impact & Results | Education Cannot Wait.
\11\ https://www.usaid.gov/reports/international-basic-education-
strategy/fy-2022.
\12\ https://www.globalpartnership.org/blog/new-2023-results-
report-persistent-effects-pandemic-and-progress-gpe-grant-
achievements#: :text=GPE's%202023%20results%20report%20points,
data%20availability%20and%20education%20financing.
\13\ https://www.educationcannotwait.org/impact-results.
\14\ https://www.usglc.org/resources/.
[This statement was submitted by Ngozi Lawal, Secretary of the
Board of Directors.]
______
Prepared Statement of Global Health Council
Global Health Council (GHC) thanks the subcommittee for the
opportunity to share this testimony in support of global health-related
programs operated by the Department of State and the U.S. Agency for
International Development (USAID) within the International Affairs
Account (Function 150).
GHC is the leading member organization devoted to advancing global
health priorities by uniting advocates, implementers, policymakers, and
other stakeholders. Using the power of our community's collective
voice, we work across disease areas to drive sustainable funding and
equitable policies that improve global health and well-being for all.
We work with more than 125 organizations--including associations and
coalitions, corporations, foundations, NGOs, academic institutions, and
think tanks--that are implementing programs across 150 countries and
focusing on a broad range of global health issues.
For Fiscal Year (FY) 2025, GHC encourages robust support for the
Global Health Programs account, and related organizations and programs,
at a minimum of FY24 enacted levels. To pursue the achievement of
critical U.S. global health goals and commitments, we urge the Senate
Committee to support a greater investment in global health programs for
FY25 contrary to the potentially devastating cuts proposed by the House
Appropriations Committee which would see 10-11% cut from the SFOPS
budget and drastically harm the ability to address world crises and
signal a cessation of U.S. leadership and influence on the world stage.
GHC's programmatic funding recommendations can be found in the table
below. These investments yield positive outcomes well beyond their
intended targets by supporting U.S. and global health security,
benefiting the economy, and savinging lives around the world.
u.s. and global health security
Estimates show that, if not addressed, future pandemics could cost
$570 billion per year in economic losses.\1\ With the converging crises
of ongoing global conflicts and instability, food insecurity, the
rapidly spreading Avian flu, and the continuous threat of emerging
infectious diseases, continued financial support of health systems is
critical to prevent acute health crises and bolster stronger, more
secure health systems. These investments work well beyond their
intended targets by helping to protect the health of Americans via
strengthening countries' capacity to better prevent, detect, and
respond to infectious disease outbreaks at their source to reduce their
threat to the U.S. and the world.
The Global Health Programs account supports a breadth of measures
and includes funding for maternal and child health; U.S. contributions
to Gavi, the Vaccine Alliance, the Global Fund to Fight AIDS, TB and
Malaria, the Pandemic Fund; nutrition; family planning; neglected
tropical diseases; and vulnerable children. These investments are key
to reaching the finish line on bold global health initiatives, such as
achieving an AIDS-free generation; ending preventable child and
maternal deaths; and eradicating polio, measles, and malaria, the
latter of which are posing increased risk to the American public.\2\
economic benefits
Global health investments benefit the U.S. economy, particularly in
research and development (R&D). Approximately 86 cents of every dollar
spent by the U.S. on global health R&D goes directly to U.S.-based
researchers and product developers.\3\ From 2007-2022, U.S. investment
in global health R&D generated an estimated 600,000 new U.S. jobs.\4\
These investments clearly build U.S. research and technological
capacity--a boon to the economy, as well as the health of Americans who
equally benefit from such innovations. For instance, USAID's investment
in next generation HIV interventions--such as research on female-
controlled prevention options, like microbicides and multipurpose
prevention technologies, and the development of an effective HIV
vaccine-is critical to ending the HIV/AIDS epidemic globally. Moreover,
this research capacity serves as a crucial component of our global
partnerships working to promote collaboration and health equity through
shared research and access to critical tools.
U.S. investment in multilateral global health organizations also
yields economic benefits. For example, U.S. investments in WHO's work
result in a $35 return on investment at least for every $1 invested.\5\
Furthermore, U.S. global health investments draw attention to and
prioritize solutions that address non-communicable and other neglected
health threats that increasingly affect the economies of key trading
partners and encourage investment by peer countries.
impacts of u.s. investment
Global health programs are a critical component of how the U.S.
engages with the world and have secured their place as some of the most
lifesaving, cost-effective, and successful forms of U.S. foreign
assistance. For example, Congress passed the Global Malnutrition
Prevention and Treatment Act into law, which authorizes USAID to carry
out activities to prevent and treat malnutrition globally. This piece
of legislation acutely impacts the approximately 345 million people
worldwide who are facing food insecurity. By investing in global health
and development, the U.S. is building healthier, more resilient
communities, and contributing to economic and political stability,
which help to promote American diplomatic goals and values.
Americans consistently support global health and development
assistance funding with a 2023 poll showing that a majority of
Americans believe the Federal Government should particularly invest
more in pandemic preparedness both at home and abroad.\6\ Especially in
this moment, where global solidarity is needed to invest in bolstering
health systems and preparedness worldwide, the U.S. must not roll back
its critical investments in global health programs, but drive them
forward with increased funding and support. By maintaining U.S.
investment in global health, we will continue to build upon the hard
work and achievements to prevent persistent global health threats and
ensure a healthy future for Americans and people globally.
---------------------------------------------------------------------------
\1\ https://www.csis.org/analysis/harnessing-multilateral-
financing-health-security-preparedness.
\2\ https://www.marylandmatters.org/2023/10/14/how-marylands-
recent-malaria-case-can-inform-future-detection-and-prevention/
#::text=Typically%2C%20there%20are%20about%202%2C000,
malaria%20case%20for%2040%20years.
https://www.sciencedirect.com/science/article/pii/
S2049080122013231.
https://www.nbcnews.com/health/health-news/us-measles-cases-2024-
so-far-rcna145013.
\3\ https://www.ghtcoalition.org/why-research-and-development.
\4\ ibid.
\5\ https://www.who.int/about/funding/invest-in-who/investment-
case-2.0
\6\ https://www.pandemicactionnetwork.org/news/u-s-national-poll-
on-government-investment-in-pandemic-preparedness/.
---------------------------------------------------------------------------
For more information on U.S. investments in global health, visit
http://ghbb.globalhealth.org.
Appendix: Account & Program Recommendations for Fiscal Year 2025 (in
thousands)
------------------------------------------------------------------------
FY 2025 Recommended Funding
Level (in thousands)
------------------------------------------------------------------------
Global Health Programs (USAID & State).... $15,365,000
Maternal and Child Health................. 1,150,000
of which Gavi........................... 340,000
of which Polio (all accounts including 165,000
ESF)...................................
Malaria (PMI)............................. 925,000
Tuberculosis.............................. 1,000,000
Family Planning (all accounts)............ 1,740,000
of which UNFPA (IO&P)................... 116,000
Nutrition................................. 300,000
Vulnerable Children....................... 35,000
Neglected Tropical Diseases............... 125,000
HIV/AIDS (USAID).......................... 350,000
PEPFAR.................................... 5,140,000
of which UNAIDS......................... 60,000
The Global Fund to Fight AIDS, TB and 1,650,000
Malaria..................................
Pandemic Fund (all accounts).............. 1,000,000
Global Health Security.................... 1,000,000
of which CEPI........................... 200,000
Emergency Reserve Fund.................... 300,000
SIGHT Fund for R&D........................ 250,000
Global Health Worker Initiative........... 200,000
Health Systems Strengthening.............. 200,000
Development Assistance (DA)
Water and Sanitation...................... 500,000
Contributions to International
Organizations (CIO)
World Health Organization................. 134,580
International Organizations & Programs
(IO&P)
UNICEF.................................... 175,000
of which FGM............................ 5,000
------------------------------------------------------------------------
[This statement was submitted by Elisha Dunn-Georgiou, President
and CEO.]
______
Prepared Statement of Global Health Technologies Coalition
On behalf of the Global Health Technologies Coalition (GHTC), a
group of more than 45 nonprofit organizations, academic institutions,
and aligned businesses advancing policies to accelerate the creation of
new drugs, vaccines, diagnostics, and other tools that bring healthy
lives within reach for all people, I am providing testimony on fiscal
year 2025 (FY25) appropriations for global health programs at the US
Agency for International Development (USAID). These recommendations
reflect the needs expressed by our members working around the globe to
develop new and improved technologies for the world's most pressing
health issues. We appreciate the Committee's support for global health,
particularly for continued research and development (R&D) to advance
new drugs, vaccines, diagnostics, and other tools for long-standing and
emerging health challenges.
I am testifying today because we still do not have the technologies
that we need to achieve a future where pandemics are prevented and
health is within reach for everyone. In 2022, 1.3 million people were
killed by tuberculosis, 1.3 million people were newly diagnosed with
HIV, and 249 million people were infected by malaria. In 2019, at least
1.27 million people were killed by antibacterial resistance. Today,
more than 1 billion people worldwide are still affected by neglected
tropical diseases. Unfortunately, it is women and children who are
often the most underserved in the health sector. And as we look toward
the future, we cannot afford to sit idly and wait for future pandemic
threats with the potential to match or exceed the disruption of COVID-
19.
To develop the innovations and technologies that we need to defeat
these diseases and to prevent future pandemics, the U.S. government
needs to sustainably increase its investments in global health research
programs. Public funding is critical for this sector because companies
have little commercial incentive to invest in health areas that impact
people in poverty. Not only are innovations and technology greatly
needed, but they are also investments that yield incredible benefits
outside of global health. Data from the past 16 years show that
investments in global health R&D lead to economic gains in the United
States and in partner countries. As told in a recent analysis conducted
by a partnership between Policy Cures Research and GHTC, between 2007
and 2022, $46 billion in U.S. government investment in global health
R&D led to $104 billion in economic activity and the creation of more
than 600,000 jobs countrywide. This is not to mention the follow-on
effects of the innovations that the United States invested in during
that time period, which are projected to generate $255 billion and
counting for the U.S. economy.
As the world's leader in biomedical research, the United States has
both a responsibility and an opportunity: with relatively small public
investments, we have the power to save and improve millions of lives.
To continue our progress toward developing lifesaving tools in FY25, we
respectfully urge the Committee to support global health research by:
--Increasing or sustaining funding levels for every global health
program under the US Department of State and USAID.
--Creating a new, additive Supporting Innovative Global Health
Technologies (SIGHT) Fund under USAID for global health
innovation at $250 million in FY25.
--Again, including report language directing USAID to increase global
health innovation spending.
--Again, including report language requesting that USAID produce an
annual report on its global health research programs.
USAID has provided unparalleled support for the late-stage
development of global health technologies for decades. It is the only
U.S. agency with a mandate to improve global health that supports the
development of global health products from early-stage concepts to
delivery around the world. USAID identifies innovation gaps, sponsors
clinical trials, and scales new technologies to communities in need.
Additionally, USAID uses novel financing models, builds interagency and
multisectoral partnerships, and applies a business mindset to stretch
the US government dollar for maximum impact. The agency's value-add is
driving the late-stage research and scale-up of global health products
that offer significant public health benefits but are not supported by
other public or private funders.
Still, USAID's global health innovation mandate is increasingly
constrained by three challenges:
--USAID funding for R&D has not kept pace with total global health
spending. In 2006, USAID spent eight percent of its global
health budget on R&D. Today, USAID spends 5.5%, and this
spending is projected to decline further without a course
correction.
--USAID funding for R&D is siloed by disease or health area, limiting
funding opportunities for products that are novel or needed for
emergencies. Funding for innovation today is drawn from
disease- and population-specific appropriations accounts,
limiting the ability of USAID to fund products that address
multiple health issues or emerging challenges.
--Constrained budgets force leaders in the Global Health Bureau to
prioritize immediate impact over innovation. With limited
resources, leaders must make difficult decisions between
funding programs now and funding innovation that could drive
greater impact in the future.
To this end, sustained or increased funding for every global health
line and a new, additive approach to funding global health innovation
is needed at the agency. With an initial appropriation of $250 million,
the SIGHT Fund would raise total annual USAID investments in global
health innovation to approximately 10 percent of overall Global Health
Bureau funding, slightly above the previous peak of eight percent set
in 2006. Filling the cracks, the SIGHT Fund could be tapped for
different health challenges as R&D opportunities emerge, especially for
products currently without a funding source, such as those for
antimicrobial resistance and malnutrition, as well as population-
specific tools. The SIGHT Fund would improve health research
coordination within USAID and with health research agencies across the
U.S. government. USAID has long-standing partnerships with many
innovators, and the SIGHT Fund would supplement, not supplant, these
existing programs and partnerships--expanding the global health pie
rather than slicing it further. It would enable USAID to make bolder
investments in new technologies while reducing the trade-off between
programming and innovation. The SIGHT Act (H.R. 6424) was introduced on
a bipartisan basis in the House of Representatives in November 2023. It
would establish the program area and staffing needs to implement the
SIGHT Fund's appropriated budget. GHTC is actively advocating for the
passage of H.R. 6424 and a Senate companion bill in 2024.
In addition, we urge Congress to renew its request for an annual
R&D investments report from USAID. At the request of Congress, USAID
releases an annual report on its health-related R&D investments and
programs. These reports provide Congress and the global health
community insight into how USAID is investing in global health research
and progressing toward its health-related R&D strategy. The strategy is
an important articulation of USAID's health innovation mission and
(together with the reports) is an essential accountability tool to
ensure that USAID is on track to meet its health R&D goals. This
request is critical to ensuring that U.S. investments in global health
research are efficient, coordinated, and maximally effective. Global
health R&D is unique as a foreign policy goal in that it also supports
researchers in the United States. From 2007 to 2022, more than $39
billion in Federal funding went to U.S.-based institutions for global
health research and development, supporting hundreds of thousands of
estimated jobs and generating billions more in economic growth. In
addition, many of the tools and technologies developed from this
funding benefit people living in the United States, either directly or
indirectly, by strengthening national health security and global
prosperity.
As we emerge from a global pandemic, it is clearer than ever that
increases in investment for global health innovations are critical.
Stronger global health R&D positions the United States to be better
prepared for the next pandemic, saves lives, and bolsters health R&D
capacity in the United States and abroad. Increased funding and an
enabling policy environment that supports breakthrough innovation is an
investment with documented benefits across multiple sectors and,
ultimately, leads to more accessible and equitable health for all. With
increased public funding for global health research, we can achieve a
world that is healthier and safer for everyone.
GHTC urges the Committee to continue to direct USAID to prioritize
science, technology, and innovation to advance its global health and
development mission, allocate sufficient resources to support this
work, and continue producing detailed, public annual reports on USAID's
health R&D strategy.
We urge the Committee to maintain strong support for the Global
Health Programs account under the State Department and USAID--
supporting, at minimum, sustained funding at fiscal year 2023 levels
for each disease- or population-specific program and supporting
increases where possible--and create a new SIGHT Fund for global health
innovation with a new and additional $250 million investment. Global
health innovation and implementation must not be seen as competing
priorities, but rather part and parcel of the US commitment to
improving global health. Global health research that improves the lives
of people around the world--while at the same time supporting U.S.
interests, creating jobs, and spurring economic growth at home--is a
win-win investment.
I thank you for this opportunity to provide this testimony.
[This statement was submitted by Dr. Kristie Mikus, Executive
Director.]
______
Prepared Statement of Global Partnership for Education
Mr. Chairman and members of the subcommittee, thank you for the
opportunity to bring you up to date regarding the work of the Global
Partnership for Education (GPE) and its 88 developing country partners.
On behalf of our partners, I thank you for your steadfast leadership
and commitment to international education programs and respectfully
request that the subcommittee provide $175 million, under the United
States Agency for International Development's (USAID) Development
Assistance account, as the U.S. Government's Fiscal Year 2025
contribution to the Global Partnership for Education. I also request
that the subcommittee provide $1.125 billion for overall basic
education funding, including strong funding for Education Cannot Wait.
the global partnership for education
GPE is a partnership of donor and developing country governments,
UNICEF, UNHCR, the World Food Program, the World Bank, other
international organizations, civil society, the private sector and
foundations partnering to ensure a more effective and efficient
response to the global education challenge. GPE provides financial and
technical support to nearly 90 partner countries where eighty percent
out-of-school children reside and where the National education systems
require the most urgent support. The U.S., through USAID, and other
donor governments are engaged with many local education groups where
partners convene in country to provide support for the highest
priorities and to monitor progress. GPE features a ``compact"-based
operating model that strengthens the link between development of
national sector plans and identification of key policies to drive
system transformation. GPE continues to place strong emphasis on
domestic resource mobilization for education and more effective and
equitable use of those resources.
gpe's impact over the last 22 years
Access to Education.--160 more children are in school in partner
countries since GPE's inception in 2002, including 82 million
additional girls. Between July 2022 and June 2023, GPE grants financed
the distribution of 48 million textbooks, the training of 481,000
teachers and the construction or rehabilitation of 6,664 classrooms.
Learning Outcomes and Improving Quality of Education.--To improve
education and learning outcomes, GPE supports teacher training. As a
result, 67 million more children have access to professionally trained
teachers in partner countries since 2002. More than 481,000 teachers
were trained with GPE funds in fiscal year 2023.
Fragile or Conflict-Affected Countries--Responsive Support.--GPE is
committed to making sure no child is left behind, particularly in
crises that disrupt education. Millions of children are affected by
conflict, natural disasters, complex humanitarian emergencies, and
fragility. Increasingly, the world's out-of-school children live in
countries facing war and violence. As a result, they are deprived of
their education. Ensuring access to education protects the rights of
children and youth amid chaos while instilling a sense of normalcy and
shoring up resilience.
More than 60% of GPE funding goes to countries affected by
fragility and conflict, which have some of the highest rates of out-of-
school children and the lowest levels of learning but lack the
resources to sustainably build their education systems. GPE has
developed flexible, accelerated, and responsive funding policies that
enable swift and flexible support when crises unfold that create
extensive challenges to education systems. Recent examples include:
--In Afghanistan, where the Taliban has banned girls' education past
the sixth grade, GPE continues to convene partners on the
ground and has approved grants totaling $110 million to support
children's education. GPE support helps children participate in
community-based education and learn basic skills in public
schools.
--In Ukraine, GPE continues its dialogue with the government to
determine how best to stem the learning losses caused by the
war. Through GPE's matching fund, the ``Multiplier,'' GPE has
matched over $25 million in cash and in-kind support from
Microsoft, Google, and UNESCO, totaling more than $51 million
in education assistance.
Gender Equality--Ensuring that girls have access to education has
been a top priority of GPE since its inception. Gender is now hardwired
into every step of GPE's operating model, because investments in
school-age girls have the highest returns in tackling future gender
inequalities. The results are clear: since 2002, twice as many girls
have been enrolled in school in partner countries, meaning 82 million
more girls are now on the path to gender equality. Recent examples
include:
--The Democratic Republic of the Congo is using a $100 million grant
to implement a girls' education strategy to accelerate progress
towards gender equality in education. GPE supported a public
awareness campaign to promote girls' education and implemented
training modules on gender-based violence prevention for
teachers and other education stakeholders.
--In Nigeria, where 65 percent of out-of-school children are girls,
GPE has supported the country through the Nigeria Partnership
for Education Project (NIPEP) to integrate religious schools
and train teachers to ensure more children attend and stay in
school. More than 417,000 girls from low-income families
received scholarships to attend these integrated primary
schools. The project also gave female teachers scholarships to
update their teaching skills, enabling them to serve as
advocates and role models for girls.
Furthermore, GPE opened a girls' education funding window under its
current strategic plan, a $250 million Girls Education ``Accelerator''
Fund to target support to very poor countries which have much progress
to make on gender equality. Thirty countries where girls lag the
farthest behind boys can access this funding.
Education and Peace.--Education is not merely a means to individual
growth; it is a powerful tool that can influence the future trajectory
of societies. If inclusive and of quality, it promotes understanding,
tolerance and peaceful coexistence among individuals and communities.
The Institute for Economics and Peace and GPE have reaffirmed the
potential for education to build peaceful societies through a recent
study. The study highlights that higher rates of completion of both
primary and lower secondary school shows a positive correlation with
factors known to create and sustain peaceful societies. The study also
reveals that countries with higher years of schooling experience fewer
conflicts and an increase in safety and security. In the face of global
challenges like economic prosperity and multiple global conflicts,
investments in quality education for every child are needed now more
than ever.
Preparing for Instability and Resiliency, including Climate
Change.--Extreme weather events threaten children's lives and destroy
infrastructure critical to children's well-being and learning. Every
year, nearly 40 million children's education is interrupted by natural
disasters and the disease outbreaks that follow. With nearly half of
the world's children living in 'extremely high risk' countries, the
climate crisis is exacerbating the global learning crisis.
At the same time, education can be a powerful pillar of climate
action. Education gives people the knowledge and tools they need to
adapt to the impacts of climate change, including the risks to their
lives and livelihoods. Quality education dramatically reduces deaths
from weather-related disasters. Girls' education in particular has been
shown to reduce vulnerability to climate-driven disasters. GPE
financing supports partner countries to build resilient education
systems that are climate smart and can prepare for disasters and
provide needed skills to learners to adapt.
--In Vanuatu, 885 schools were partly or entirely destroyed in April
202 when tropical cyclone Harold, the second most powerful
cyclone to hit Vanuatu, made landfall. It caused widespread
damage of infrastructure and livelihoods, with nearly 51,000
students and 2,400 teachers impacted. With GPE's support of
more than $3 million, Vanuatu was able to distribute more than
7,600 teaching and learning materials to ensure the early
education curriculum could continue to be taught. Nearly 90
primary schools affected by the cyclone have been provided with
water tanks, ensuring hygienic practices, and with this GPE
support 13,800 students and 560 teachers have benefited from
clean drinking water and handwashing facilities.
GPE launched a new Climate-Smart Education System Initiative with
Save the Children and UNESCO, which provides technical assistance to
education ministries to mainstream climate change into education sector
policy, plans and budgets. In an unprecedented partnership between
education and climate funds, GPE has now partnered with the Green
Climate Fund and Save the Children to launch the Building the Climate
Resilience of Children and Communities through the Education Sector
(BRACE) initiative. This $70 million co-financed investment will
support greener infrastructure, green curricula and climate early
warning systems in schools to prepare for natural disasters. It will
also support 20 of the most climate-vulnerable countries to develop
their capacities to access more climate finance to build resilient
education systems.
School Meals.--Good health and nutrition are critical for
children's learning. Approximately 180 million school age children live
with malnutrition and 1 billion children are at high risk of suffering
from food insecurity. This threatens the education, growth, and
development of children and adolescents worldwide. School meals are the
largest social safety net in the world, currently reaching 418 million
children every day worldwide. School meals also support local
economies, create jobs and livelihoods in communities, and ultimately
help break the links between hunger, and unsustainable food systems and
the learning crisis.
GPE supports countries to deliver school nutrition outcomes, in
turn bolstering children's learning outcomes.
--In Haiti, GPE's Multiplier co-financing instrument, working with
the World Food Programme, crowded in a total of US $44.2
million from the U.S.'s McGovern Dole Program, Inter-American
Development Bank and Education Above All Foundation to support
school meal programs and increase their coverage by 20% to 1.5
million children.
--In October 2023, GPE launched the School Health & Nutrition
Technical Assistance Facility to support countries to build
nationally owned school meal programs with sustained financing,
improved legal and policy frameworks, multi sectoral
coordination and knowledge and evidence exchange between
countries. The Facility will pilot its approach with US $1
million allocated to Kenya and Lesotho.
gpe's partnership with the u.s.
Through USAID's engagement, the U.S. continues to be an active
participant on GPE's Board, a member of the executive committee and is
closely engaged at a technical level on the development of GPE's
policies and strengthening of its funding and operational model. USAID
also serves as a member of local education groups in many partner
countries, which are key priority setting and program monitoring
bodies. USAID missions work with ministries of education in GPE-
supported countries on the formulation of national plans,
identification of key priorities for system transformation, and
applications for GPE support. This close cooperation enables combining
GPE's resources with U.S. bilateral education funding where feasible to
improve outcomes.
fiscal year 2025 support for gpe and basic education
Mr. Chairman, I urge the subcommittee to provide a fiscal year 2025
U.S. contribution to the Global Partnership for Education of $175
million. I also urge you to support an overall fiscal year 2025 level
for basic education of $1.125 billion, including strong funding for
Education Cannot Wait. Thank you for your consideration.
[This statement was submitted by Laura Frigenti, Chief Executive
Officer.]
______
Prepared Statement of The HALO Trust (USA)
the department of state conventional weapons destruction program
As humanitarian demining organizations, The HALO Trust (USA), Mines
Advisory Group (MAG) U.S., and PeaceTrees Vietnam submit this testimony
as partners of the U.S. Government in addressing threats to peace,
security, and human lives posed by improvised explosive devices (IEDs),
landmines, unexploded ordnance (UXO), and insecure weapons stockpiles.
HALO, MAG, and PeaceTrees Vietnam are implementing partners of the
Department of State's Conventional Weapons Destruction (CWD) program,
and are helping to save lives and restore livelihoods in nearly 40
countries and territories. This testimony is also supported by Legacies
of War, a renowned advocacy and educational organization representing
the Lao-American, Cambodian-American and Vietnamese-American
communities.
State Department humanitarian demining programs play a leading
international role in responding to conflicts and humanitarian crises
including the war in Ukraine, preventing casualties, allowing displaced
families to return to their homes and livelihoods, enabling farmers to
till their fields, supporting economic development, ensuring post-
conflict stabilization, and promoting safety through securing weapons
and explosive materials that could fall into terrorist hands.
Given the importance of global demining and weapons security
programs, we respectfully ask that you include the following requests
in the FY 2025 SFOPS budget:
1. $290 million for the State Department's Conventional Weapons
Destruction program;
2. Specific allocations for Conventional Weapons Destruction
Programs.--$80,000,000 for programs in Laos, Vietnam, and
Cambodia, additional funds above the prior year's level for
programs in Sri Lanka, Angola, and Zimbabwe, and sustained
support for demining activities in Ukraine.
the state department conventional weapons destruction (cwd) program
The State Department CWD program has many benefits, but serves
three primary goals: (1) To enhance U.S. and global security by
destroying and securing weapons at risk of diversion to terrorists,
insurgents, and other violent non-state actors, including MANPADS, (2)
To improve stability and prosperity by clearing landmines and
unexploded ordnance (UXO) contamination, thereby returning land to safe
and productive use, and (3) To promote US foreign policy.\1\
saving lives
CWD programs save lives. The most recent Landmine Monitor recorded
at least 4,710 people that were killed or injured by mines or other
explosive remnants of war across 49 countries in 2022. At least 1,171
of those killed or injured, 49% of all civilian casualties, were
confirmed to be children.\2\ This number of casualties is more than
twice the number in 2013, with the most casualties taking place in
Syria and Ukraine.
Landmines continue to affect families and communities long after
conflict has ended, threatening lives and disrupting livelihoods. No
parent should fear that their child might be fatally injured simply by
walking to school or playing outside. Landmines kill indiscriminately,
and we must continue to eliminate these threats.
food security
Demined land is most often used for growing crops and grazing
livestock, thereby advancing food security at a moment when the world
is facing a looming famine. In no place is this more starkly apparent
than in Ukraine, where the Ukrainian government estimates at least
470,000 hectares of farmland may be contaminated with landmines and
other explosives \3\, driving global food shortages--and where U.S.-
funded demining teams are already hard at work clearing threats to
protect farmers and allow for safe harvests.
economic development
CWD activities also promote economic development that can transform
communities after conflict. Within weeks of mine clearance, displaced
families can return home and plant crops and communities can build
roads, schools, hospitals, and vital infrastructure. A 2019 report
conducted by the United Nations Development Program in Lebanon showed
that every dollar spent on mine action generated an economic return of
$4.15, helping to alleviate poverty in some of the poorest parts of the
country.\4\ And in Mozambique, which is now mine free, a 2018 National
Bureau of Economic Research report indicated that without clearance of
mines, Mozambique's GDP would have been 15-25% lower in 2015.\5\
Demining is critical to economic recovery, as well--Ukraine's
agricultural sector has already lost $70 billion in lost revenue due to
the conflict, including production loss from a decrease in sowing
areas.\6\ Demining is the first step to allowing their economy, and
economies around the world, to recover after conflict.
security and stability in fragile states
Weapons security management programs funded by the CWD account
support security through stockpile storage training and the destruction
of obsolete weapons, including shoulder-launched missiles capable of
downing aircraft (MANPADS). These programs are essential for preventing
unplanned explosions that put thousands at risk, and they keep weapons
from falling into the wrong hands. This type of programming is critical
in areas like Libya, where a massive buildup of arms during Gaddafi's
rule, and distribution of weapons and ammunition in the campaign
against him, fueled the proliferation of deadly items across North
Africa, the Sahel and Lake Chad Basin. In Mozambique, weapons
management programs are also essential to preventing insurgents from
overrunning national authorities and seizing weapons. Further, in the
Northern Triangle as well as Ecuador, Peru, Paraguay, and the CARICOM
region, weapons and ammunition security management programs also help
to combat the illicit flow of black-market weapons that fuel violence,
a driver of emigration.
In Ukraine and elsewhere, State Department-funded programs are also
working to track weapons diversions, ensuring accountability of U.S.
advanced conventional weapons provided to Ukraine, and identifying
areas of the globe where weapons security management programs are most
needed.
promoting positive u.s. leadership
U.S.-funded demining programs work in regions critical to
increasing America's positive influence abroad, taking land that is
currently too dangerous to use and transforming it into an economic
asset available to often impoverished local populations, thereby
advancing our interests and our values as Americans. Deminers across
Africa, Latin America, and the Asia-Pacific sport U.S. flags on their
equipment and vehicles, while building livelihoods and strengthening
ties with both host governments and the general population in regions
of growing global economic importance.
supporting cwd programs in ukraine, laos, vietnam, cambodia, sri lanka,
angola, and zimbabwe
Ukraine already contained significant landmine and explosive
contamination in the eastern region before the recent invasion. The
Ukrainian government estimates that nearly 30% of the country is
contaminated with landmines and other UXO \7\ that will threaten
civilians for years to come, and the risk will be particularly acute as
civilians move throughout the country as areas continue to become
liberated. State Department implementing partners including the HALO
Trust and MAG are already on the ground working to save lives from
explosives, and increased funding is urgently needed to enable the
elimination of these deadly devices as soon as possible--which is
critical to supporting Ukrainian resilience and recovery.
Reconstruction can only occur when explosives have been removed from
roads, fields, and buildings.
Laos, Vietnam, and Cambodia remain heavily impacted by U.S. cluster
bomblets and other explosive hazards. Laos is considered the most
heavily bombed country in history, suffering over 50,919 casualties
from explosive remnants of war.\8\ Cambodia, which contains additional
significant landmine contamination has suffered over 65,005 casualties
from explosive hazards since 1979.\9\ In Vietnam, at least 105,086
casualties from explosive threats have been recorded.\10\ More
resources are needed to remove these deadly items, demonstrate
continued resolve to removing U.S. legacy ordnance, and strengthen
diplomatic relations. An appropriation of $80 million in FY25 would
expedite ongoing clearance efforts and demonstrate positive U.S.
leadership in the region, while allowing the State Department to spend
these resources in the region to achieve the greatest humanitarian
impact.
Since the end of Sri Lanka's decades-long civil war in 2009, U.S.
demining assistance has been critical to allowing thousands of
displaced families to return to their homes and develop their land.
U.S. demining efforts have also enabled the reopening of schools and
hospitals, the reconstruction of thousands of homes, and the
reconstruction of the Jaffna railway--enabling access to Sri Lanka's
northern ports. More than 280,000 mines have already been destroyed,
and increased funding will keep Sri Lanka on track to be mine-impact
free by 2028.
Landmines in Angola have injured or killed more than 80,000 people
since they were first used in its civil war,\11\ but with the help of
U.S. foreign aid, over 100,000 landmines have been destroyed. Demining
must continue, especially in the rural areas of Angola, where some
communities have been waiting decades for assistance. This clearance is
also critical to supporting the development of the Lobito Corridor,
where more than 100 minefields will hamper expansion of this vital
commerce route. Increasing funding for demining in Angola is also
necessary for the U.S. to implement The DELTA Act, legislation passed
in December 2018 in support of wilderness management in the Okavango
Delta region. In southeast Angola, landmines near the headwaters of the
Okavango Delta kill elephants and other wildlife, hamper efforts to
conduct biodiversity research, and interfere with anti-poaching
initiatives.
Zimbabwe possesses very dense, unfenced minefields close to houses,
schools, and clinics that kill livestock and separate communities from
viable sources of water. Over 1,600 casualties \12\ have occurred due
to explosive accidents. Due to the predictable mine-laying patterns
along the Zimbabwean borders, demining teams in Zimbabwe have one of
the highest mine-destruction rates of any global program. Supporting
increased funding for CWD programs in Zimbabwe will allow the country
to achieve mine-free status as quickly as possible.
conclusion
Since 1993, the U.S. has led global demining efforts, providing
more than $5.09 billion in assistance to more than 125 countries and
territories for CWD activities.\13\ Thanks to a global effort, over 30
countries and territories around the world are now mine-impact free,
\14\ and as the single largest funder of humanitarian demining
programs, the United States has helped the bulk of these countries
reach this milestone. We hope to see many more countries soon join this
list.
U.S. demining and weapons security programs save lives, enable
stabilization and rebuilding after countries have been ripped apart by
conflict, enhance security, and promote U.S. interests while making a
tangible difference in the lives of communities worldwide.
For these reasons, we hope the subcommittee will support strong
funding for the State Department CWD program, for CWD programs in
Ukraine, Laos, Vietnam, Cambodia, Sri Lanka, Angola, and Zimbabwe.
Thank you for your consideration.
---------------------------------------------------------------------------
\1\ U.S.A., Department of State, Office of Weapons Removal and
Abatement in the Bureau of Political-Military Affairs. (2024). The
United States' Commitment to Conventional Weapons Destruction (23rd
ed., Fiscal Year 2023, pg. 5). Waynesboro, VA: McClung Companies.
\2\ Landmine Monitor (2023, November). Landmine Monitor 2023. The
Monitor. Retrieved from: https://www.the-monitor.org/en-gb/reports/
2023/landmine-monitor-2023/the-impact.aspx.
\3\ Roman Neyter, Sergiy Zorya, and Oleksandr Muliar (February
2024). Agricultural War Damages, Losses, and Needs Review (pg. 4, 20).
Kyiv, Ukraine: Kyiv School of Economics. Retrieved from: https://
kse.ua/wp-content/uploads/2024/02/RDNA3_eng.pdf
\4\ Hamade, K., & Srour. I. (2019, February 6). 2019, February 6).
Socio-economic benefits of mine action in Lebanon: United Nations
Development Programme. UNDP. Retrieved May 24, 2022, from https://
www.undp.org/lebanon/publications/socio-economic-benefits-mine-action-
leb
anon.
\5\ Chiovelli, G., Michalopoulos, S., & Papaioannou, E. (2018).
Landmines and Spatial Development. NBER Working Paper Series. https://
doi.org/10.3386/w24758.
\6\ Ministry of Defense of Ukraine. ``Oleksii Reznikov: Action plan
for demining agricultural land for sowing campaign approved'' (2023,
March 20). State Sites of Ukraine. Retrieved from https://
www.kmu.gov.ua/en/news/oleksii-reznikov-skhvaleno-plan-zakhodiv-iz-
rozminuvannia-silskohospodarskykh-zemel-dlia-provedennia-posivnoi.
\7\ Ministry of Economy of Ukraine. ``Ukraine needs 10 times more
humanitarian demining specialists than it has now: Yuliia Svyrydenko''
(2023, April 20). State Sites of Ukraine. Retrieved from https://
www.kmu.gov.ua/en/news/dlia-humanitarnoho-rozminuvannia-ukrainy-
potribno-v-desiatky-raziv-bilshe-fakhivtsiv-nizh-ie-zaraz-iuliia-
svyrydenko.
\8\ Lao PDR--Impact (2023, September 5). The Landmine Monitor.
Retrieved from https://www.the-monitor.org/en-gb/reports/2023/lao-pdr/
impact.aspx.
\9\ Cambodia--Impact (2023, December 20). The Landmine Monitor.
Retrieved from http://www.the-monitor.org/en-gb/reports/2023/Cambodia/
impact.aspx.
\10\ Vietnam--Impact (2021, February 11). The Landmine Monitor.
Retrieved from http://www.the-monitor.org/en-gb/reports/2023/Vietnam/
impact.aspx.
\11\ Angola--Impact (2021, February 10). The Landmine Monitor.
Retrieved from http://www.the-monitor.org/en-gb/reports/2021/Angola/
impact.aspx.
\12\ Zimbabwe--Impact. (2022, November 17). Retrieved from https://
www.the-monitor.org/
en-gb/reports/2023/zimbabwe/impact.aspx.
\13\ U.S.A., Department of State, Office of Weapons Removal and
Abatement in the Bureau of Political-Military Affairs. (2024). The
United States' Commitment to Conventional Weapons Destruction (23rd
ed., Fiscal Year 2023, pg. 5). Waynesboro, VA: McClung Companies.
\14\ ``The deadly legacy of landmines'' (April 3, 2023). UN News.
Retrieved from: https://news.un.org/en/story/2023/04/1135252.
[This statement was submitted by Chris Whatley, Executive Director
Ambassador (Ret.) Daniel Clune, Board Chair, Mines Advisory Group
(MAG) U.S.
Sera Koulabdara, Chief Executive Officer, Legacies of War
Claire Yunker, Executive Director, PeaceTrees Vietnam.]
______
Prepared Statement of Helen Keller International
Mr. Chairman, thank you for this opportunity to provide testimony
to the subcommittee on behalf of Helen Keller International regarding
critical programs in global health. Helen Keller Intl urges the
subcommittee to recommend in fiscal year 2025, under the U.S. Agency
for International Development's (USAID) Global Health Programs and
Development Assistance accounts, at least $4.5 million for the child
blindness program; at least $125 million for Neglected Tropical
Diseases; at least $300 million for nutrition, including $23.5 million
for Vitamin A supplementation; and $1.15 billion for the Maternal and
Child Health account, inclusive of $340 million for Gavi, the Vaccine
Alliance. Finally, under the Development Assistance account, we request
the subcommittee continue strong support for nutrition in agriculture,
including providing $1.2 billion for Feed the Future programs.
Helen Keller Intl is a leading nonprofit organization with programs
in 20 countries in Africa and Asia, and the United States. We were co-
founded in 1915 by Helen Keller, who lost her sight and hearing as a
child and was an advocate for the poor and marginalized as an adult.
Together with a global community of supporters, we ensure that everyone
has the opportunity--as Helen did--to reach their true potential. We
fulfill this mission by designing and implementing programs based on
science and local collaboration that save lives, improve sight, and
improve nutrition for nearly 73 million people each year.
Today, we are as determined as ever to accomplish even more on
behalf of children and families in the countries where we work.
Disruptions to global food systems due to extreme weather events,
supply chain disruptions, and protracted conflict are further
compounding global malnutrition. Helen Keller Intl appreciates the
actions of Congress to respond to these immediate crises and provide
critical emergency and humanitarian response. We also know long-term
investments in nutrition and health through USAID's development
programs are necessary to build resilience to future crises and to help
millions of people create lasting change in their own lives. We have
many of the tools we need to address these global challenges, but
partnership and political will are essential to deliver proven health
and nutrition interventions that will meet the needs of children and
families around the world.
nutrition, food security, and maternal and child health
Malnutrition drives almost half of child deaths under age five, the
vast majority of which occur in sub-Saharan Africa and South Asia. For
those who survive, malnutrition during a child's early years often
leads to lifelong and irreversible damage, including reduced
intellectual development, educational achievement, and earning power.
Nutrition investments are only 1% of US global health funding, even
though malnutrition claims the lives of approximately three million
children under age five each year, more than AIDS, tuberculosis, and
malaria combined.
Strong nutrition is foundational to global development, and is
necessary to improve health, education, economic participation, and
gender equality. In 2022, USAID reached 32 million children through
nutrition programs. The US is not alone in this work--45 governments
from low- and middle-income countries made strong policy and financial
commitments at the most recent Nutrition for Growth Summit and the
African Union is committed to increasing domestic nutrition
investments. Despite USAID's major investments in health systems, there
remain huge gaps in delivering life-saving nutrition interventions. In
some instances, mothers attend their prenatal visits but do not receive
prenatal vitamins, or bring their children to health centers for
checkups but their children are not screened for acute malnutrition and
then treated if necessary. The 2021 Lancet Series on maternal and child
undernutrition highlighted that closing these opportunity gaps is one
of the quickest ways to scale-up lifesaving nutrition interventions.
Many of the most effective interventions to prevent and treat
malnutrition among women and children span the course of the critical
1,000-day period during a woman's pregnancy to a child's second
birthday. Improving children's diets between the ages of 6-23 months is
essential; new evidence shows that one promising solution, a small
quantity of lipid-based nutrient supplements, can reduce deaths by 27%
in that age group. Four health systems interventions--multiple
micronutrient supplementation (prenatal vitamins), breastfeeding
support, Vitamin A supplementation, and ready-to-use therapeutic food
(RUTF) for the treatment of wasting-are some of the most cost-
effective, lifesaving tools to combat malnutrition. Breastfeeding is
recognized as a cornerstone of child health because of the essential
nutrition it provides for a child's growth and development. Multiple
micronutrient supplements, a specific formulation of prenatal vitamins,
provide critical benefits such as reducing stillbirth, low birthweight,
and preterm birth while also addressing the undernutrition and
micronutrient deficiencies experienced by more than one billion women
and adolescent girls worldwide. However, across most low and middle-
income countries, these interventions, known as the Power 4, have low
coverage rates, even as coverage of other complementary health services
has increased.
Helen Keller Intl is a recognized leader in distributing vitamin A
capsules to children in countries across the world. In the last year,
Helen Keller Intl provided vitamin A supplementation to more than 35
million children across 13 countries in sub-Saharan Africa. Vitamin A
is essential for healthy eyesight and the optimal functioning of the
immune system to protect children from life-threatening diseases. We
request that the subcommittee recommend $23.5 million for vitamin A
supplementation within the nutrition account to contribute to these
lifesaving programs globally.
Helen Keller Intl sees the impact these interventions make on the
health and lives of families around the world. In the last year, Helen
Keller screened more than 2.1 million children for acute malnutrition.
This screening is essential to connect families to the necessary
treatment, such as RUTF, to recover from the most severe forms of
malnutrition. In places like Cambodia, Helen Keller was able to provide
treatment to 88% of the children identified as being moderately or
severely malnourished, in addition to supporting families to learn how
to cook nutritious meals to support their children's nutrition and
ensure the long-term health and wellbeing of their families. USAID's
historic investment in 2022 for an additional $200 million to screen
and treat wasting, matched by $380 million from other governments and
private philanthropies, went a long way toward addressing the
increasing need to treat malnutrition due to the global food crisis.
Building upon the momentum of USAID's 2022 investment, the recent
announcement on May 3, 2024 to commit an additional $200 million for
procurement and distribution of RUTF and other specialized nutritious
foods, underscores the critical role of continued and expanded
investments in combating malnutrition amidst the ongoing global food
crisis.
Helen Keller Intl requests the subcommittee recommend $300 million
under the nutrition-specific account within global health programs for
fiscal year 2025. We support the continuation and expansion of
nutrition programs to support infants, young children, and women of
reproductive age, as well as ongoing efforts to improve reporting on
the scope and impact of U.S. government investments in nutrition-
specific prevention and treatment interventions. We applaud Congress
for passing the bipartisan Global Malnutrition Prevention and Treatment
Act in 2022 to ensure USAID delivers the strongest nutrition support
for families across nutrition priority countries, but adequate
appropriations are required to realize the ambitions of this
legislation. These programs, and those financed under the Maternal and
Child Health account, are instrumental to the goal of ending
preventable child and maternal deaths. With this forward-looking
commitment the US will continue to be a valued global leader in
combating the scourge of malnutrition and promoting maternal and child
survival.
We also urge the subcommittee to provide $1.2 billion to Feed the
Future, the US government's flagship food security program. We request
the continued inclusion of report language on a food security and
agricultural strategy that promotes improvements in nutrition with
measurable outcomes as a core objective, and specifically supports
smallholder farmers, particularly women farmers and other vulnerable
populations. These programs must focus on improving children's diets,
in line with the recent recommendations from the Board for
International Agricultural Development to accelerate action on
nourishing foods for children. These investments in agriculture are
essential to increase food availability and access, improve food
security and nutrition, increase dietary quality, raise incomes, and
empower women.
neglected tropical diseases
Over one billion people are at risk of Neglected Tropical Diseases
(NTDs), which can lead to blindness and other disabilities, chronic
pain, and social isolation. NTDs may be life-threatening at a later
stage of the disease, and they are related to various clinical
complications, such as anemia, malnutrition, and HIV/AIDS. In many
cases, NTDs disproportionately impact women, thereby having devastating
consequences on families. Research shows eliminating NTDs increases
access to education and improves economic performance, essential
elements of prosperity and economic growth.
The critical support provided by the United States since fiscal
year 2007 has allowed the treatment of more than 1.5 billion people and
enabled transformational success. For example, last year the country of
Mali was able to stop treating for trachoma--a blinding disease that
only a few years ago was widespread throughout the entire country. In
2023, Niger submitted a dossier for elimination of onchocerciasis to
the World Health Organization; if approved, Niger will become the first
country in sub-Saharan Africa to eliminate this disease. These
achievements would not be possible without the support of the US
government. USAID was the first bilateral donor to commit significant
investments to not only treating diseases, but also providing support
to those who did not have access to treatment in time, and need support
to manage the resulting morbidity, particularly focusing on surgery for
trichiasis and lymphedema.
This funding has enabled large scale access to medicines to prevent
and treat the most common NTDs. For every one dollar spent by the
United States on NTDs, $26 is leveraged in donated drugs, representing
one of the world's most successful public-private partnerships. In the
last year, Helen Keller Intl worked with Ministries of Health to
administer treatments to over 33.5 million people for at least one NTD,
contributing to national efforts toward the control and elimination of
NTDs. Like in Mali, the achievement of elimination of blinding trachoma
and other diseases such as lymphatic filariasis and onchocerciasis is
within reach in many countries over the coming years.
We respectfully request increased support for USAID NTD programs at
a funding level of $125 million for fiscal year 2025. With continued
commitment to NTD programs, USAID is on track to eliminate at least one
NTD in 15 countries within the next 5 years. With increased commitment,
this progress can be expanded to additional countries, including
morbidity management, and free millions more people from the risk of
developing these diseases.
child blindness program
U.S. support and partnership with USAID through the child blindness
program helps to save the sight of hundreds of thousands of children in
developing countries. USAID leadership has driven tremendous progress
on what used to be the leading cause of childhood blindness, vitamin A
deficiency. USAID's continued leadership to address other causes of
child blindness is essential. Currently, 1.4 million children worldwide
are blind, and much of this suffering is preventable. Children who are
blind or visually impaired and who live in poverty in developing
countries must depend on their families and on government health
systems, which in most cases have limited capacity to meet the needs of
blind children. These children are at grave risk of being in ill
health, poorly educated, and less productive without access to critical
eye health and rehabilitation services.
Most of the blindness in children could be avoided since highly
effective preventive and curative measures are available to address
visual impairment in children. Children who are blind or have low
vision can often be helped through simple and inexpensive operations
and vision correction. For example, in partnership with USAID's Child
Blindness Program and Cameroon's Ministry of Public Health, and the
Ministry of Secondary Education, Helen Keller Intl conducted vision
screenings for more than 41,600 students between the ages of 11-15
years in Yaounde, Cameroon, providing glasses free of charge to those
who needed them in 2023. We help students see a blackboard clearly for
the first time and fulfill their educational potential by establishing
systems for school-based vision screening and providing sight-restoring
eyeglasses. Helen Keller Intl requests the subcommittee recommend at
least $4.5 million in funding for programming to address blindness and
visual impairment in children.
Thank you for your consideration of Helen Keller Intl's testimony
and recommendations. We share Helen Keller's belief: The welfare of
each is bound up in the welfare of all.
[This statement was submitted by Sarah Bouchie, President and Chief
Executive Officer.]
______
Prepared Statement of Institute of International Education (IIE)
On behalf of the Institute of International Education (IIE), I am
pleased to submit testimony in support of the Fulbright Program ($287.8
million) and the Benjamin A. Gilman International Scholarship Program
($17 million), both of which are funded by the Department of State,
Educational and Cultural Exchange Programs, and implemented by IIE. I
am also pleased to submit testimony in support of Scholar Rescue
Programs ($7 million).
The Fulbright Program, operating continuously for over 75 years, is
the flagship U.S. government sponsored international exchange program--
supporting Americans to study, conduct research, and teach English
overseas, and foreign students and scholars who contribute to U.S.
universities and communities, while furthering their scholarship. No
program reaches as many corners of the world, or the U.S. as the
Fulbright Program does. We are seeking the Committee's support for
level funding of $287.5 million in FY2025.
As a key pillar of international education and exchange, the
Fulbright Program has demonstrated its unique capacity to adapt quickly
to address global challenges, while engaging diverse audiences in the
U.S. and 160 countries around the world. Some 5,000 visiting Fulbright
students and scholars were in the U.S. on new or continuing grants last
academic year.
Fulbright encourages participation of people from geographically
diverse institutions and disciplines considered underrepresented, as
well as from individuals who have traditionally been underrepresented
in fellowship programs, including those at HBCUs, HSIs and community
colleges. Level funding would support grant opportunities and fund new
regional projects, enabling more Americans and U.S. colleges and
universities to benefit from the program, and have a subsequent
positive impact on more individuals, institutions, and communities at a
time when defending democratic values is critical.
Fulbright's sustained commitment to increased institutional
diversity makes the program more inclusive and accessible to
nontraditional applicants. The commitment to accessibility is also
highlighted in the expansion of the network of Fulbright Student and
Scholar campus representatives at U.S. colleges and universities to
serve diverse populations underrepresented in education abroad and
competitive fellowships, and in the prioritization of outreach to MSIs,
community colleges, higher education institutions in rural and
economically disadvantaged areas, and military academies. Currently,
over 1,700 U.S. higher education institutions have a Fulbright campus
representative, including more than 350 MSIs and 300 Community
Colleges.
Level funding would also allow the U.S. to build upon the Fulbright
Program's proven model to address pressing issues that impact both
foreign and domestic policy, like climate change, democracy building,
and countering disinformation and undue foreign influence. The program
operates where others cannot, fostering goodwill toward America, and
establishing a scholarly network where research and development can
flourish. Fulbright contributes directly to our National security and
global economic competitiveness. The Fulbright Program projects
American strength, shores up allies, and advances American values of
freedom, opportunity, and open exchange of ideas. It is a long-term
investment in building communities and collaboration by advancing
individuals' relationships, knowledge, and leadership skills. This is
an important role for our government to invest in, as private
international exchange programs do not have the reach and bilateral
leveraging value of Fulbright.
This year, scholars of the new Fulbright Amazonia initiative worked
to begin developing action-oriented policy briefs in three thematic
areas. Each group will present their policy recommendations in
Washington, D.C. at the conclusion of the program on the topics of
climate change adaptation and mitigation, strengthening human and
environmental health and security, and bioeconomy and sustainable
development. At a Fulbright Enrichment Seminar in Houston, Texas, NASA
engineer Dr. Elizabeth Jens spoke to attendees about her own trajectory
from Fulbrighter to renowned rocket scientist. Jens came to the U.S.
from Australia as a Fulbright Foreign Student to Stanford University,
where she earned a master's and doctorate in aeronautics and
astronautics. Today, she is a propulsion and systems engineer at NASA's
Jet Propulsion Laboratory in California. Based on the research she
began during her Fulbright and her subsequent work in the field, Jens
published the Hybrid Rocket Propulsion Design Handbook, providing
engineers with design methodologies to develop realistic hybrid system
designs. In 2018, Jens was honored as a Patron of Mateship, a 100-year
old program by the Australian Embassy to promote the strong Australia-
U.S. bilateral relationship, looking to strengthen the countries'
future cooperation on science and innovation policy. In 2023, Linsey
Marr, an environmental engineering professor at Virginia Tech
University, was one of two Fulbrighters named a MacArthur Fellow
recognized for her work as an environmental engineer who protects
public health through researching indoor and outdoor air quality and
the transmission of airborne pathogens. As a 2017 Fulbright U.S.
Scholar to Taiwan, Marr investigated the potential for long-distance
transport of the flu virus.
Fulbright alumni, totaling more than 400,000 globally, have become
leaders and contributed greatly to society--including 40 current or
former heads of state or government, 62 Nobel Laureates, 89 Pulitzer
Prize winners, 80 MacArthur Foundation Fellows, 16 Presidential Medal
of Freedom recipients, and thousands of leaders across the private,
public, and nonprofit sectors. The Fulbright Program creates an
unparalleled sphere of influence--future leaders who benefited from
U.S. higher education and gained understanding of American communities
and our people.
The Fulbright Program exemplifies successful international cost-
sharing. Eighty-nine foreign governments contribute over $90 million
annually, with 49 foreign governments matching or exceeding the U.S.
government's annual contribution. Increasing U.S. contributions to the
Fulbright Program will only compound this unique bilateral financing
model and lead other donors to increase their contributions,
substantially increasing the impact of program.
Today's Fulbright Program includes students and scholars from all
U.S. States and territories at great benefit to the U.S. economy. Over
750 U.S. higher education institutions are both hosting and sending
students and scholars--including minority serving institutions and
community colleges--making for a well-rounded and inclusive program.
Including foreign Fulbrighters, international students studying in the
U.S. contribute more than $40 billion to the U.S economy, while
creating over 365,000 U.S.-based jobs last academic year.
From its inception, the Fulbright Program has benefited from
bipartisan Congressional support. During the last several years of
pressure on the Federal budget, Fulbright has proven its value to the
U.S. and our relationships internationally. While there are many
competing demands and worthwhile investments for the Federal
Government, Congress has the opportunity to protect the Fulbright
Program and focus expansion into priority areas to further connect the
next generation of leaders.
The Benjamin A. Gilman International Scholarship Program enables
undergraduate students of limited financial means to study or intern
abroad, thereby gaining skills critical to our National security and
economic competitiveness since 2001. The award is solely reserved for
American undergraduate students who are eligible for a Federal Pell
Grant, providing scholarships to more than 41,000 students since its
inception.
Gilman Scholars are high-achieving undergraduates who hail from all
50 States and Puerto Rico, representing more than 1,300 U.S.
institutions. The Gilman Program supports America's public diplomacy
and national security efforts and is the largest and most inclusive
study abroad scholarship in the Nation. Nearly 70% of Gilman Scholars
identify as racial or ethnic minorities and more than half are first-
generation college students. Nearly three-quarters of Gilman Scholars
came from small cities, towns, and rural communities, and approximately
30% come from community colleges, HBCUs or other MSIs. By supporting
undergraduate students who have high financial need, the program has
been successful in supporting students who have not traditionally had
access to international academic experiences which make students more
competitive in the workforce and instills a global mindset from a
younger age. Gilman Program Alumni have created over 1,000 jobs for the
U.S. economy and established more than 400 new organizations,
companies, or other ventures, a 20-year impact study showed.
The program also encourages study in a wide array of destinations,
growing to over 160 countries since 2001, including countries where
languages critical to U.S. national security are spoken. The demand for
the program remains high. Over 150,000 students have applied since the
inception of the program. More than 10,000 applications from highly
qualified students are received every year for approximately 4,000
scholarships making it very competitive.
The Gilman Program continues to demonstrate a commitment to our
Armed Services with preference given to Veteran applicants and
dependents of active-duty service members through the Congressionally-
created the Gilman-McCain Scholarship.
In addition, Gilman Scholars positively impact their communities
while carrying out follow-on service projects that aim to inform and
encourage more American students to study and intern abroad. They serve
as influential role models by their exemplary achievement through their
international exchange experience, and many continue to pursue advanced
degrees and are active in seeking solutions to global challenges.
Maintaining bipartisan support for the Benjamin A. Gilman International
Scholarship Program at the FY24 funding level of $17 million will
continue to enhance our National security, economic prosperity, and
provide access to opportunity for underserved populations.
IIE's Scholar Rescue Fund.--The IIE Scholar Rescue Fund (IIE-SRF)
is doing essential work to protect the lives and careers of threatened
scholars in a time of unprecedented need. In diverse contexts across
the globe, professors and researchers are living amidst the world's
worst conflicts, humanitarian crises, and repressive regimes, resulting
in threats to their physical security, the indefinite interruption of
their scholarly work, and the endangerment of entire disciplines in
particular countries. The program has received a record number of
requests for support in every year since 2017, an alarming trend that
points to the many scholars across the globe who live and work amidst
authoritarian regimes or conflict--in Afghanistan, Burma, Ethiopia,
Gaza, Russia, Sudan, Ukraine, Venezuela, Yemen, and elsewhere. It is in
the interest of U.S. foreign policy to help scholars continue their
work in safety, with the hopes that they can one day return home or
secure work in a host country. We are seeking the Committee's support
for level funding of $7 million in FY2025 for Scholar Rescue
activities.
IIE-SRF is currently responding to multiple large-scale higher
education emergencies. By keeping these scholars safe and productive in
academic roles across the globe, IIE-SRF is preserving and enhancing
these countries' intellectual capital--the ``brain save'' of their best
and most promising professors and scientists until it is safe for them
to return. If these scholars do not receive support now, many lifetimes
of work--and potentially entire academies in countries such as
Afghanistan, Sudan, Ukraine, and Yemen--will be lost, a catastrophic
impact on generations to come.
IIE-SRF has the global networks, tested model, and reliable track
record to respond to crises of this scale. When sectarian and other
violence in Iraq was at its worst, IIE-SRF launched the Iraq Scholar
Rescue Project, a public-private partnership funded in part through the
Department of State, which saved the lives of hundreds of Iraqi
scholars. Since August 2021, IIE-SRF has been responding to an Iraq-
style avalanche of applications from Afghanistan, as university
professors and civil society leaders, many of whom represent the
National academy the U.S. helped to build in Afghanistan, face severe
threats to their safety and work. This has only compounded as crises in
Ukraine, Sudan, and Israel/Palestine have increased the number of
displaced persons worldwide and vie for the public's attention.
While we have been able to support more than 100 fellowships for
Afghan scholars and their families so far--with placements arranged at
universities in the U.S., Canada, Japan, and across Europe--there are
hundreds more who have appealed to IIE-SRF. U.S. colleges,
universities, and think tanks have demonstrated a remarkable commitment
to supporting their Afghan colleagues and continue to seek
opportunities to host Afghan scholars. IIE-SRF has developed an
extensive network of institutions that welcome the opportunity to host
teachers and researchers, but the overwhelming demand for support from
Afghan scholars far outstrips private and philanthropic resources.
Federal funding would support an existing public-private partnership
that can leverage relationships in the higher education community in
order to quickly find academic placements for Afghans and other
recently displaced scholars, such as from Ukraine. IIE-SRF works with
its vast global network of dedicated university partners to secure
placements that meet both scholars' and universities' needs and enable
scholars to secure visas to their host countries.
The impact of IIE's work to rescue scholars extends well beyond the
immediate lives saved. There are many examples, historical and current.
During the 1930s, IIE's Emergency Committee in Aid of Displaced Foreign
Scholars supported Dr. Felix Bloch, a physicist who had fled Nazi
Germany, to continue his scientific research at Stanford University.
Bloch's research on nuclear magnetic resonance would later be applied
to develop the MRI and earned him the Nobel Prize.
Many of IIE-SRF's current fellows are engaged in work that promises
to also have a wide-reaching impact, including on their home countries.
One example is Dr. Marzia Hakimi, an Afghan scholar of mechanical
engineering scholar undertaking the IIE-SRF fellowship at the
University of Alberta in Canada. In addition to her academic duties,
Dr. Hakimi is teaching online science courses to secondary-level
students in Afghanistan, especially girls who are currently excluded
from school.
IIE-SRF fellows also enrich their host campuses. According to Dr.
Sonia Feigenbaum, Senior Vice Provost for Global Engagement and Chief
International Officer at the University of Texas at Austin, ``IIE-SRF
fellows have not only added academic value, but have also enriched the
fabric of our campus community, embodying resilience, and the pursuit
of knowledge despite adversity. Their presence serves as a reminder of
the power of education to transcend borders and unite people despite
differences in language, cultures, and backgrounds.'' UT Austin has
hosted six IIE-SRF fellows from five countries, including two currently
on campus from Ethiopia and Yemen.
Your continued support for Fulbright, Gilman and Scholar Rescue
programs is a testimony to the bipartisan values and critical foresight
of this and previous Congressional leaders as you continue to
prioritize the investment in the academic and diplomatic future of our
great nation.
Thank you for the opportunity to submit testimony before this
committee.
[This statement was submitted by Allan E. Goodman, CEO.]
______
Prepared Statement of InterAction
Chairman Coons and Senator Graham, Members of the subcommittee,
thank you for the opportunity to provide testimony concerning the FY
2025 State, Foreign Operations, and Related Programs bill. The
lifesaving, life-changing programs in the State, Foreign Operations
bill represent the best of American values and engagement with people
around the globe.
My name is Tom Hart, and I am the President and CEO at InterAction.
InterAction is the largest alliance of international NGOs and partners
in the United States. Our more than 160 members work to eliminate
extreme poverty, strengthen human rights and citizen participation,
promote peace, and ensure dignity for all people. Our network raises
$8-10 billion annually in private donations from Americans each year-
putting us collectively among the top 10 donors in the world.
For 40 years, InterAction has united hundreds of international NGOs
to collaborate and act collectively, promoting more effective policies
and actions that positively impact global communities and benefit
America.
On behalf of the InterAction membership, I want to thank the
subcommittee for its leadership and continued support for foreign
assistance programs. As the subcommittee knows, foreign aid is a tool
for promoting U.S. national security, demonstrating American values,
driving economic growth at home and abroad, and combating poverty all
over the world. America's leadership on the global stage helps build a
more stable and prosperous world, which in turn leads to a more stable
and more prosperous America. I am grateful to have joined you at
various times in Liberia, Ghana, and Rwanda to see the remarkable
progress these resources are having on the ground.
I want to begin with our deep gratitude for the supplemental
humanitarian funding Congress provided to address the compounding
crises happening around the world. The $9.2 billion in global
humanitarian funding will provide the vital resources needed to respond
to the crises in Gaza, Sudan, Ukraine, the Democratic Republic of the
Congo, Haiti, and beyond.
In the long term, we recognize that supplemental funding cannot
replace essential base funding for foreign assistance. We also
recognize that the subcommittee faces a very challenging situation this
upcoming fiscal year. The House's proposed SFOPS allocation for FY2025,
if enacted, would likely necessitate emergency funding to support life-
saving programs. I agree with your sentiments, Sen. Graham, when you
said last week that now is not a good time to take resources off the
table that can prevent things from getting worse. We must break this
cycle.
As you both know, less than 1% of the Federal budget goes toward
global development and humanitarian assistance and that small
percentage can go a long way. But we can't do more with less. While we
appreciate your efforts so far, we urge you to continue to work with
your colleagues and invest adequately in resources that address rising
humanitarian and development needs, including the backsliding in
poverty reduction and democratic governance, and the worsening global
food crises. We look forward to continuing to work with you to ensure
that aid is effective, efficient, and sustainable, including through
efforts to further localization.
We also urge you to reject further directives to development and
humanitarian accounts that add complexity and reduce flexibility.
Particularly under the constrained funding levels this subcommittee is
working with, further stretching aid dollars--particularly humanitarian
assistance--across new funding, directives will only undermine the
effectiveness of U.S. foreign assistance.
In my testimony, I will highlight the challenges we face and the
importance of efficient and cost-effective investments in development,
humanitarian, democracy, and global health programs at the State
Department and USAID in the State, Foreign Operations bill. Rather than
mention each account, I have included a table at the end of my
testimony. A comprehensive list of InterAction's recommendations can be
found in our recently released resource, Choose to Invest.
Development.--Development Assistance (DA) advances economic
prosperity, supports poverty reduction, and promotes the development of
resilient, democratic societies. These resources increase food
availability, access to basic water and sanitation services, and
household income through enhanced agriculture productivity and the
sustainable use of natural resources. Amid global crises, however,
funding for development priorities has been squeezed by urgent security
and humanitarian needs. It is DA that helps to build resilience,
stability, and local leadership needed to break crisis cycles, and
ultimately, to defray future costs. For example, every $1 invested in
building resilience through programs for WASH, basic education, climate
change adaptation, and more saves $3 dollars in humanitarian
assistance.
Continued U.S. investment in Development Assistance will spur
economic growth, reduce the need for future foreign assistance, and
build a more peaceful international order. To maintain our commitment
toward long-term development, InterAction requests that you fund the
Development Assistance account at $4.77 billion for FY25.
Within Development Assistance funds, USAID implements the Global
Food Security Strategy program, known as ``Feed the Future,'' which
plays a vital role in addressing the root causes of poverty and hunger
in countries facing high rates of malnutrition. Currently, as many as
783 million people face chronic hunger. With the global demand for food
projected to increase by 50% between now and 2050, Feed the Future has
adapted to meet emerging challenges through agricultural development
programs, research, resilience building, and food system strengthening.
Investments in the agriculture sector are up to four times more
effective than investments in any other sector spurring economic
growth, supporting local agrifood systems, and reducing poverty in low-
income countries. To properly address the global food insecurity and
malnutrition crisis, InterAction requests that Feed the Future be
funded at the authorizing level approved in the 2022 Global Food
Security Act (GFSA) at $1.2 billion for FY25.
Democracy, Human Rights, and Governance.--Democracy, Human Rights,
and Governance (DRG) programs expand space for a vibrant civil society
and independent media; strengthen political and government institutions
to be responsive to citizens' needs; promote transparency and
accountability; cultivate the rule of law; foster equitable economic
growth; advance tolerance and inclusiveness; protect human and labor
rights; and support credible elections.
The rise in unstable democracies and decline in democratic freedoms
have created an environment where authoritarian influences continue to
undermine democratic norms and crack down on citizen's rights and
freedoms. U.S. democracy assistance directly counters these illiberal
influences by strengthening transparency and democratic governance and
equipping civil society with the tools that they need to advocate for
democracy.
Investing in DRG assistance is a strategic and cost-effective way
to advance U.S. foreign policy goals. Stable democracies are more
reliable trading partners, create opportunities for U.S. businesses,
and enhance economic freedom and regional security. Simply put,
democracy fosters stability during crises and opens up opportunities in
their aftermath.
We know it works. For decades, the U.S. has funded DRG programs to
strengthen institutions, enabling Ukraine to choose a path toward
democracy and freedom. A distinct difference from Russia's tyranny.
Through the years the Ukrainian people, with support from the U.S.,
have built an independent democratic alternative to Putin's world--and
what they built was worth fighting for.
We appreciate Congress' consistent support for democracy assistance
and request that you maintain funding for DRG programs at FY24 levels
($2.9 billion) for FY25.
Humanitarian Assistance.--In 2024, nearly 300 million people around
the world will need humanitarian assistance due to three main drivers:
conflict, natural disasters driven by climate shifts, and economic
instability. These factors have also contributed to more than 1 in 73
people being forcibly displaced, marking the highest displacement rate
since the turn of the century. These alarming statistics underscore the
urgent need for increased funding for humanitarian accounts,
particularly International Disaster Assistance (IDA) and Migration and
Refugee Assistance (MRA).
The International Disaster Assistance account provides flexible
funding to address the basic needs of people in crisis, such as food,
water, shelter, and medical care. Migration and Refugee Assistance
supports refugee and humanitarian aid that provides basic needs of
displaced people, supports durable solutions to migration and
displacement, and assists the countries that host them.
I could point to countless crises affecting countries across the
globe. However, I want to draw your attention to a crisis that
transcends borders and affects us all: the hunger crisis. This issue is
not just a statistic; it is a powerful reminder of our shared humanity
and the urgent need for collective action.
Prior to the war in Ukraine and the humanitarian crisis in Gaza,
millions of people were being pushed into food insecurity. Now we are
facing the largest food crisis in modern history. In 2022, 2.4 billion
people were moderately or severely food insecure.
With conflict as the biggest driver of hunger, 70% of starving
people are living in areas affected by war and violence. It is the most
marginalized among us-women, children, and refugees-who suffer the
most. Recently, I joined Save the Children on a trip to the Democratic
Republic of Congo to see first-hand how armed militias, flooding, and
rising poverty are increasing hunger and malnutrition. Unfortunately,
current funding levels do not provide enough critical resources for the
over 9 million people, including 7.2 million displaced, that are
affected.
In addition, climate shocks, disrupted supply chains, and high
fertilizer prices have prevented farmers from accessing markets and
harvesting crops. This situation is only set to worsen. As the number
of those in need rises, so do the operational costs and commodity
prices, escalating the cost of humanitarian response. IDA allows USAID
to adapt to changing contexts, respond to emerging crises, and promote
early recovery.
In FY23, humanitarian resources helped USAID respond to 76 crises
in 64 countries. To address humanitarian crises in FY25, InterAction
requests that International Disaster Assistance is funded at $4.8
billion and that Migration Refugee Assistance is funded at $4.2
billion.
The scale of need we are witnessing today underscores a new
reality. Humanitarian assistance, once designed to address short-term
emergency responses, now finds itself responding to more human-caused,
protracted crises. This shift demands a new approach, one that
recognizes the complexities of our current global landscape.
InterAction and our Members are committed to working with you toward
effective solutions to address this reality.
In conclusion, the challenges we face today are immense: multiple
global conflicts, a decline in democratic norms, and compounding food
insecurity. The need for a robust investment in foreign assistance has
never been greater. We understand the spending pressures and fiscal
realities facing our Nation, and we know that you must make difficult
choices.
However, in this era of global competition, investing in
development and humanitarian aid pays dividends to the United States in
terms of security, prosperity, and goodwill.
As you prepare for FY 2025, it is vital that the United States
continues to do its part as a global leader, investing in helping
vulnerable people and communities around the world. Let America's
actions reflect our dedication to building a safer, more prosperous,
and more just world for all.
Thank you.
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
______
Prepared Statement of Interfaith Working Group on Foreign Assistance
Members of the Committee, I am Dr. Christine Sequenzia, testifying
on behalf of the Interfaith Working Group on Foreign Assistance. Please
accept my sincere gratitude for the opportunity to submit written
testimony advocating for the over 800 million people facing complex
crises stemming from conflicts, rising costs of living, covid
implications and climate change worldwide. I want to thank Chairman
Chris Coons and Ranking Member Lindsey Graham for your unwavering
commitment to strengthening the United States' role as a leader in both
humanitarian assistance and international development programs,
honoring the dignity of all, while building flourishing communities. We
look forward to continuing to work with you, strengthening bipartisan
support for emergency and non-emergency development aid delivery.
Founded in 2013, the Interfaith Working Group on Foreign Assistance
(IWGFA) is a multifaith coalition of dozens of organizations committed
to saving lives and advancing the dignity of vulnerable and
marginalized people around the world. We believe that every human being
has inherent dignity and should be fulfilled of basic needs such as
food, clean water, shelter, education, and the right to live freely.
Through data-driven legislative advocacy in support of robust U.S.
humanitarian and poverty-focused development assistance, we strive to
build peace and prosperity in the way we help prevent and respond to
global crises. As faith-based organizations, we bring together
Christian, Muslim, Jewish, Buddhist, Sikh and other faith voices,
standing in solidarity with one another centered around our common
value of recognizing and upholding our shared humanity.
As the compounding impacts of food price spikes further exacerbate
hunger and insecurity, climate change impacts more people, and fall-out
from the COVID-19 pandemic continues, U.S. government leadership,
funding and technical assistance is more vital now than ever before.
House Appropriations Chairman Tom Cole approved topline numbers last
week which would cut the foreign affairs budget to levels unseen in
well over a decade which would devastate ongoing United States
humanitarian efforts and draw communities further into famine.
Conflicts and crises in places such as Israel-Palestine, Ukraine,
Sudan, and Haiti have intensified over the past year, and innocent
civilians have been the most victimized--particularly those with less
ability to express personal agency, like women, children and the
elderly.
The Interfaith Working Group on Foreign Assistance has been closely
monitoring these complex crises leading to hunger and poverty hotspots
around the world, and would like to highlight the following areas:
--Sudan--.The violence in Sudan between the Sudanese Armed Forces and
Rapid Support Forces has doubled the number of internally
displaced persons, which now numbers over 7.2 million, and has
driven 1.8 million refugees to bordering nations (IOM).
--Gaza--.The number of people facing catastrophic levels of hunger in
Gaza has doubled since December, with the northern part of the
strip already meeting some of the criteria of a full-blown
famine, according to estimates by food insecurity experts. Over
1 million people in Gaza are suffering from starvation. (FEWS-
NET)
--Democratic Republic of Congo--.In addition to the fighting among
different armed groups, gender-based violence and sexual
exploitation is occurring in the DRC on a very large scale.
There is widespread food insecurity, where 5.5 million people
are internally displaced and 1.1 million have become refugees
due to ongoing conflicts, according to UNHCR data.
--Horn of Africa--.Due to multiple conflicts, the East and Horn of
Africa and the Great Lakes (EHAGL) region is currently hosting
4.99 million refugees, and the region has 11.71 million
internally displaced persons (UNHCR).
--Yemen--.The ongoing war in Yemen has left 17 million people food
insecure, and ``3.5 million pregnant/breastfeeding women and
children under 5 are suffering from acute malnutrition'' (WFP).
--Ukraine, Haiti, and many other conflict-torn nations and
territories.
We urge the U.S. Congress to scale up humanitarian investments in
these and other highly impacted countries/regions, and to continue to
fund critical hunger, malnutrition, and poverty-focused programs. While
representing less than one percent of the Federal budget, these
programs provide a strong return on investment to the U.S. taxpayer
because they help promote a healthier, more prosperous, and more stable
world for everyone. These programs also save lives and work toward
enabling children to grow up in healthy stable environments.
Specifically, the IWGFA urges members of the subcommittee to
prioritize funding in the following appropriations accounts:
--$ 1.8 billion for Food for Peace (Title II).--Food for Peace Title
II programs provide emergency and long-term development food
assistance targeting the most vulnerable populations affected
by natural disasters, conflicts, and chronic food insecurity,
while strengthening nutrition, water and sanitation services,
agricultural productivity, and household income
diversification. In 2022, USAID provided commodities such as
wheat, split peas, sorghum, and vegetable oil to feed
communities affected by the drought in the Horn of Africa, as
well as ready-to-use supplemental foods (RUSF) and ready-to-use
therapeutic foods (RUTF) to treat acute malnutrition in
children. According to food security experts, the scale-up of
humanitarian assistance-mobilized primarily by the United
States-was integral in preventing the onset of famine in parts
of Somalia.
--$ 265 million for the McGovern-Dole International Food for
Education Program.--McGovern-Dole provides U.S. agricultural
commodities as well as financial and technical assistance to
low-income, food-insecure countries through establishing school
feeding programs for preschool children, while also increasing
local access to safe water, improving sanitation, and helping
local farmers to bolster sustainable production of nutritious
foods. In 2022, thanks to the McGovern-Dole Program,
approximately 105,000 children and their families in Sri Lanka
received protein-rich take-home rations to cover 3 months of
food needs.
--$ 920 million for the Maternal and Child Health (MCH)
Programming.--The MCH account supports programs aimed at ending
preventable maternal and child deaths through strengthening
national health systems, treating diarrheal disease, malaria,
and pneumonia, improving nutrition and access to safe water and
sanitation services, and providing voluntary family planning
and immunization support.
--$ 4.21 billion for the Migration and Refugee Assistance (MRA)
Program.--MRA works to mitigate and resolve conflict-related
displacement and support humanitarian action and diplomacy for
displaced populations in highly impacted countries/regions such
as those mentioned earlier.
--$ 4.85 billion for the International Disaster Assistance (IDA)
Program.--IDA provides critical humanitarian assistance to
civilian populations in response to natural disasters, conflict
and insecurity, and other sudden-onset emergencies in their
home or host countries.
--$ 1.2 billion for Global Food Security Strategy.--Feed the Future
is a key U.S. government global hunger and food security
initiative. Currently, 20 countries around the world are
participating. Feed the Future has helped more than 23 million
people escape poverty and more than 5 million families live
free from hunger. Congress reauthorized the program in 2022 and
provided a moderate increase in funding to $1.2 billion.
--$ 60 million for the Complex Crises Fund (CCF).--CCF allows the
U.S. government to prevent and respond rapidly to emerging or
unforeseen crises in fragile countries at a heightened risk of
conflict and instability. Since its inception in 2010, CCF has
provided $340 million to emergent crises in 36 countries,
allowing for the quick mitigation of crises and ability to
address unforeseen needs arising outside of planned
programming.
--$ 1 billion for the Green Climate Fund.--GCF works in developing
countries to lower greenhouse gas emissions and build
resilience, including among smallholder farmers through
climate-smart agriculture.
Please find a list of our full requests for each account below:
------------------------------------------------------------------------
Appropriations Account Interests FY25 Request
------------------------------------------------------------------------
Food for Peace (Title II Funds)....................... $1,800,000,000
McGovern-Dole......................................... 265,000,000
USDA MG-D Local and Regional Procurement.............. 26,500,000
Maternal and Child Health (USAID Account)............. 920,000,000
Global Nutrition (USAID Account)...................... 172,500,000
Global Health......................................... 4,638,500,000
International Disaster Assistance..................... 4,850,000,000
Development Assistance................................ 4,770,000,000
Global Food Security Strategy......................... 1,200,000,000
Migration and Refugee Assistance...................... 4,210,000,000
Emergency Refugee and Migration Assistance............ 100,000,000
Democracy Fund & Human Rights and Democracy Fund...... 2,900,000,000
Complex Crises Fund................................... 60,000,000
Green Climate Fund.................................... 1,000,000,000
Economic Support Fund................................. 4,300,000,000
------------------------------------------------------------------------
Many of these programs also support human rights, and responsible
and effective governance, while addressing complex emergencies and
conflicts. These accounts are key to uplifting the lives of millions in
poverty and facilitating increased global peace and stability. Any
proposed cuts will substantially harm the U.S.' ability to help those
most in need of aid, which will not only roll back decades of progress
made on these global issues, but also jeopardize U.S. international
standing, national security, and economic opportunities.
As faith-based organizations, we stand in solidarity with
vulnerable and marginalized populations, centered around our shared
humanity and values to uphold one another's humanity. We strive to
build peace and prosperity through joint advocacy on U.S. policy and
programs related to poverty-focused development assistance,
humanitarian aid and crises prevention and response.
May God give us all wisdom and guidance at this critical juncture.
[This statement was submitted by Dr. Christine M. Sequenzia, MDiv.,
Chair.]
______
Prepared Statement of the International Council on Monuments and Sites
(ICOMOS-USA)
Chairman Coons, Ranking Member Graham and members of the
subcommittee, I appreciate this opportunity to present the
recommendations for Fiscal Year 2025 State Department appropriations
from the United States National Committee of the International Council
on Monuments and Sites (ICOMOS-USA). My name is Thomas Cassidy, and I
am the Advocacy Chair of the organization's Board of Trustees.
ICOMOS-USA is a privately funded nonprofit organization. As the
oldest and one of the largest of the 110 National Committees of the
International Council on Monuments and Sites (ICOMOS), ICOMOS-USA has
played a critical role in the conservation and protection of cultural
heritage sites across the world for over half a century. ICOMOS-USA is
a proud member of the worldwide ICOMOS alliance and a vital bridge
linking preservation professionals in the United States with our
counterparts in other countries. As the only U.S. professional
preservation organization with a global focus, ICOMOS-USA remains the
gateway for U.S. professionals to participate in worldwide heritage
conservation. A principal focus of our domestic work is advocacy on
behalf of the World Heritage program.
Thank you for the FY 2024 State and Foreign Operations
appropriations bill. We were inspired by Chairwoman Patty Murray's
March 21 statement that the FY24 State and Foreign Appropriations bill
provides ``$3.4 billion to meet our commitments and fully fund our dues
to the United Nations (UN) and other international organizations.'' We
were also pleased to see robust funding for both the State Department's
Contributions to International Organizations (CIO) and International
Operations and Programs (IO&P) accounts.
We support the Administration's FY25 request for increases over
FY24 enacted for both of these accounts.
Our principal concern, however, is the United States' continued
failure to pay its assessed voluntary contribution to the World
Heritage fund. This despite our rejoining UNESCO last July. In fact,
the last time the United States honored its commitment to the World
Heritage Fund was in 2011 when we paid utilizing the IO&P account.
From our conversations with the State Department, we understand
that it does not plan to use any FY24 or FY25 CIO funds for payment to
the World Heritage fund. Given that, we have urged the Department to
utilize the IO&P account for UNESCO's 2024 assessed contribution of
$753,989 to the World Heritage Fund.
We request that the Committee direct the Department, at minimum, to
pay the 2024 and 2025 assessments from the IO&P account and develop a
plan to pay the United States' arrearages from the CIO or IO&P accounts
in the near future. Our best understanding is that the total arrearages
are about $8,500,000.
background on the world heritage program
The UNESCO adopted the World Heritage Convention in 1972. The
United States was a prime mover in the creation of the World Heritage
Convention, which seeks to foster international cooperation to protect
globally significant sites and was also the first nation to ratify the
convention. The World Heritage Center is responsible for coordinating
within UNESCO all matters related to World Heritage, including
maintenance of the list of World Heritage Sites. The Committee has
three advisory bodies including the International Council on Monuments
and Sites (ICOMOS) and the International Union for Conservation of
Nature (IUCN).
As the professional and scientific adviser to the committee on all
aspects of cultural heritage, ICOMOS is responsible for the evaluation
of all nominations of cultural properties made to the World Heritage
List with the criteria established by the World Heritage Committee.
The value of the World Heritage Program has been well described by
the State Department:
In 1972, the United States proposed the World Heritage
Convention to the United Nations Educational, Scientific, and
Cultural Organization (UNESCO), and was the first state to
ratify that convention. The World Heritage Program promotes
local and international cooperation for the preservation of
natural and cultural heritage. Significantly, it is the most
widely accepted international conservation treaty in the world,
which has resulted in the American concept of national parks
being implemented worldwide.\1\
Similarly, the State Department has recognized the importance of
World Heritage in multiple reports and statements. For example, in
December, 2022 attention was drawn to the Administration's action
``withdrawing oil and gas development from the broader Chaco Canyon
Landscape, a UNESCO World Heritage Site.'' \2\ The Department's 2022
Report on Religions Freedom reported our Embassy in Iraq's announcement
of ``an additional $750,000 in U.S. funding for the further renovation
of the Lalish Temple, the holiest Yezidi temple and a UNESCO World
Heritage Site, bringing total U.S. support to more than $2.3 million.''
\3\ And the Department in its 2021 report on foreign terrorism cited
the inhumanity of a terrorist group's destruction of UNESCO World
Heritage sites in Mali.\4\
We understand the Department's Office of Cultural Heritage has
identified over 260 historic structures and properties, including 25 in
UNESCO World Heritage Sites, in U.S. embassies, consulates, and
residences worldwide. These buildings have been described as ``the
stages on which our diplomats advance American ideals of democracy and
free enterprise around the globe.'' \5\
world heritage sites in the united states
There are 25 World Heritage Sites in the United States, including
Yellowstone and Mesa Verde National Parks, which were both among the 12
sites first inscribed in 1978. Other U.S. sites include the Statue of
Liberty, Chaco Culture, Independence Hall, Hawaii Volcanoes,
Everglades, and Cahokia Mounds.
We are pleased that the State Department--and other Federal
agencies--continue to participate in significant World Heritage
activities--including traveling to Saudi Arabia for last year's
celebratory inscription of Hopewell Ceremonial Earthworks on the World
Heritage List. That inscription--like Chaco Culture National Historic
Park, Taos Pueblo, Monumental Earthworks of Poverty Point, Cahokia
Mounds State Historic Site, and Mesa Verde National Park- is a powerful
demonstration of the United States' commitment to the outstanding
universal value of Indigenous cultures.
We look forward to this year's expected inscription of the serial
transnational nomination of Moravian Church Settlement sites in
Bethlehem, Pennsylvania, the United Kingdom, and Germany. And, in
future years we look forward to successful inscriptions of both the
Okefenokee National Wildlife Refuge and the Serial Nomination of United
States Civil Rights Movement Sites.
additional reasons to reengage with the world heritage committee
ICOMOS-USA believes strongly that continued--and ideally enhanced--
engagement by the United States with the World Heritage Committee
requires payment of dues. Quite simply, representatives of state
parties have openly complained that it is not fair for the U.S. to
utilize the system, including consulting with the World Heritage
Committee on details of future designations, without helping to meet
the costs of the system. Although a number of U.S. nominations have
been approved by the Committee, we are concerned that other countries
may look askance at future U.S. nominations, thereby jeopardizing
acceptance of future U.S. sites when we are not contributing to the
costs of the World Heritage program.
This Committee--and the Biden Administration--have recognized for
several years that engagement with UNESCO would enable the United
States to counter Chinese influence and promote other national
interests of the United States. China's involvement in the World
Heritage program has accelerated as our participation has decreased.
Among other things, the number of World Heritage Sites in China has
increased dramatically over the past 20 years, and now includes 57
sites, the second largest total of sites globally just after Italy's 59
sites. China is also using the cultural legacy of the Silk Road to
advance its One Belt, One Road initiative and promote its geo-political
and economic interests in Asia, Africa, and elsewhere.
There is also a well-recognized need for the United States to
broadly counter Russian influence in the international community. We
were pleased that in 2022 the United States was one of 46 nations to
join the United Kingdom in urging the World Heritage Committee to not
hold its scheduled meeting in Russia and stating that the signatories
would not attend a meeting in any other nation chaired by Russia.
And last year, the World Heritage Committee, at the request of
Ukrainian President Volodymyr Zelenskyy, utilized its emergency
procedures to both inscribe the Historic Center of the Port City of
Odessa on the list of World Heritage and also to include the site on
the List of World Heritage in Danger. In 2022, we were honored that
Ukraine's Deputy Minister of Culture and World Heritage joined our
annual celebration to describe the destruction and challenges of
preserving her nation's heritage resources. We look forward to engaging
in international efforts to invest in programs that can preserve and
reconstruct Ukraine's national heritage and other sites damaged by
conflict.
With the increasingly visible interests of the U.S. in the Pacific,
there is an opportunity to advance four sites on the U.S. Tentative
List for possible future inscription, including the Pacific Remote
Islands in U.S. Territorial Waters, as a strategic element of our soft
diplomacy in the region.
Paying our annual contribution to the World Heritage Fund should be
a part of our commitment to promoting our National values on the global
stage. As we approach the 1-year anniversary of rejoining UNESCO we
believe strongly this is the time for the United States to once again
demonstrate its financial commitment to this well-known UNESCO program.
Thank you for considering our testimony. I would be pleased to
answer any questions you may have.
---------------------------------------------------------------------------
\1\ https://2009-2017.state.gov/p/io/unesco/c48319.htm.
\2\ ``Highlighting U.S. Efforts to Combat the Biodiversity Crisis,
Fact Sheet,'' Office of the Spokesperson, December 15, 2022; https://
www.state.gov/highlighting-u-s-efforts-to-combat-the-biodiversity-
crisis/.
\3\ ``2022 Report on International Religious Freedom: IRAQ,''
https://www.state.gov/reports/2022-report-on-international-religious-
freedom/iraq/.
\4\ ``Country Reports on Terrorism 2021, Chapter 5, Foreign
Terrorist Organizations, Africa'' https://www.state.gov/reports/
country-reports-on-terrorism-2021/.
\5\ See ``Fund to Conserve United States Diplomatic Treasures
Abroad,'' https://fundtoconserve.org/program-in-honor-of-preservation-
month.
______
Prepared Statement of J Street
Thank you Chairman Chris Coons, Ranking Member Lindsey Graham, and
the other Members of the subcommittee for the opportunity to offer the
pro-Israel, pro-peace, pro-democracy movement's views on U.S.
assistance for Fiscal Year 2025 to our ally Israel, the Palestinian
people and to other partners around the world. This testimony addresses
provisions of the State, Foreign Operations and Related Programs
(SFOPS) appropriations bill affecting the U.S. Department of State and
the U.S. Agency on International Development.
I greatly appreciate how the leaders and Members of this committee
have worked together for many years, on a bipartisan basis, to ensure
robust appropriations in each of these areas. These past 8 months have
been some of the most challenging times for the pro-Israel, pro-peace
community since the devastating October 7th Hamas attack on Israel, and
we look to you all to press for strategic support for our allies and
robust assistance to address the humanitarian crisis in Gaza.
meeting aid commitments to israel
Maintaining a strong, vibrant U.S.-Israel relationship based on
shared values and goals is a core American interest. U.S. support for
Israel as a democracy and a national homeland for the Jewish people is
a historic and crucial commitment. An enduring relationship between the
United States and Israel promotes common interests in the security,
economic and strategic spheres.
American security assistance to Israel, including maintaining
Israel's defense capabilities, is an important anchor for any viable
peace process based on providing Israel with the confidence and
assurance to take steps that would lead to a demilitarized Palestinian
state next to a secure Israel, fully integrated into the region.
Nonetheless, U.S. support to Israel--as with U.S. security
assistance to any country--must be used in compliance with U.S. and
international law; when inconsistencies or violations arise, they
should be investigated thoroughly and rectified swiftly to minimize
harm and preserve the credibility of the U.S. and its partners around
the world. That is why, especially in light of the Administration's
NSM-20 report, J Street supports the Administration's measured decision
to pause certain munition transfers to Israel, in a manner that does
not undermine Israel's defense capabilities, to signal deep concerns
over a large-scale operation into Rafah, home to over 1.3 million
Palestinian refugees.
With the understanding that this Administration is well positioned
to make diplomatic decisions to halt certain weapon transfers to
Israel, as needed, J Street urges the subcommittee to appropriate $3.8
billion in security assistance for Israel in Fiscal Year 2025 in
accordance with the 2016 Memorandum of Understanding agreed to under
President Barack Obama.
u.s. bilateral assistance benefitting the palestinian people and unrwa
funding
Just as ensuring the security of Israel is a vital American
interest, so is restoring and maintaining robust US assistance
benefiting the Palestinian people through both bilateral aid and the
United Nations Relief and Works Agency (UNRWA). J Street therefore
urges the subcommittee to include in Fiscal Year 2025 appropriations a
robust funding level for the Migration, Refugee Assistance (MRA)
account in the amount of no less than $4.5 billion and to allow for the
immediate resumption of funding to UNRWA, along with no less than $229
million in Economic Support Funds (ESF) available for assistance for
the West Bank and Gaza.
U.S. assistance benefitting the Palestinian people has served as an
essential component of efforts by previous administrations of both
parties to enhance security and well-being to Palestinians and Israelis
alike. The direct relationship between U.S. assistance to Palestinians
and the security and stability of Israel and its neighbors is
undeniable, but far from the only reason previous Congresses and
administrations have consistently provided such aid. U.S. assistance to
Palestinians is a means of recognizing Palestinians' dignity--their
standing as individuals and as a people. It is an acknowledgment that
their suffering is real, and a reiteration of the U.S.' commitment to
help end the conflict at the root of it.
Moreover, U.S. assistance benefitting the Palestinian people
impacts the security not just of Israel, but of the entire immediate
region. This is especially true when it comes to the region-wide
operations of UNRWA, to which the United States has typically provided
around a quarter of the agency's operating budget.
UNRWA provides vital humanitarian and development services to
Palestinian civilians, including but not limited to primary and
vocational education, health care, and emergency relief. UNRWA operates
not just within the West Bank and Gaza, but in neighboring countries
which rely upon its efforts to assist millions of Palestinians whom
they would otherwise be unable to adequately support UNRWA's
protectees. This includes more than two million Palestinian refugees
living in Israel's strategic ally Jordan, and nearly half a million
Palestinian refugees impacted by conflict in Syria.
We want to see this bipartisan commitment to UNRWA continue. While
we were deeply disturbed by the allegations of UNRWA employees'
potential involvement in the horrific October 7th Hamas attack on
Israel, we were pleased to see UNRWA take immediate remedial steps in
light of the allegations, and we supported the Biden Administration's
pause in funding for the agency at the time as the investigations
proceeded. However, UNRWA plays an unparalleled role in providing
assistance to Palestinians in Gaza and the Fiscal Year 2024 ban on
funding for UNRWA included in the appropriations bill threatens to
undermine the agency at a moment when it is needed the most.
Last month, a high-level independent report into UNRWA's
operations, led by former French Foreign Minister Catherine Colonna,
was released, and included findings that UNRWA has robust, well-
developed internal mechanisms to ensure neutrality and accountability.
The report also provided additional recommendations as to steps the
agency should take to ensure its commitment to neutrality and to
improve operations, and the agency has committed to implementing these
recommendations.
We note that even amid the allegations, a senior Israeli official
recognized the critical necessity of UNRWA's ongoing operations at this
time, saying, ``If UNRWA ceases operating on the ground, this could
cause a humanitarian catastrophe.'' The official stated that with no
other organization capable of fulfilling UNRWA's functions, ``Israel is
not pushing to shut down UNRWA.''
Therefore, I reiterate my request to this subcommittee to support
robust funding for the MRA account and to allow the immediate
resumption of funding for UNRWA.
In addition to life-saving support for UNRWA, we urge this
subcommittee to prioritize funding for initiatives that support
security, peacebuilding and economic development between Israelis and
Palestinians. We recommend at least $50 million for the Nita M. Lowey
Middle East Partnership for Peace Act in Fiscal Year 2025, in light of
the current crisis, to promote dialogue and reconciliation in the
region; $33 million for International Narcotics and Law Enforcement
security coordination in the West Bank and Gaza to address security
challenges that threaten the well-being of both populations; and $27.2
million designated for the Middle East Partnership Initiative to
empower civil society and promote democratic values in the region.
foreign assistance & diplomacy worldwide
The same security, strategic and moral considerations informing our
support for generous U.S. assistance to Israel and the Palestinian
people hold true when it comes to U.S. aid and diplomacy around the
world. J Street therefore urges the subcommittee to ensure robust
overall funding for global U.S. assistance, State Department personnel
and operations, financial commitments to multilateral organizations and
related programs supporting peace and diplomacy.
U.S. funding for a strong Foreign Service, the United Nations,
humanitarian assistance and cultural exchange programs worldwide
significantly impact the ability of the United States to work in
concert with our allies and the international community on matters of
immense strategic importance that affect every American and Israeli.
As we have seen in previous years, diplomacy has the ability to
deliver significant national security payoffs to the United States at a
fraction of the cost of military action and without any of the
attendant human suffering. As Admiral Mike Mullen, former chairman of
the Joint Chiefs, once stated: ``It is my firm belief that diplomatic
programs, as part of a coordinated strategy, will save money by
reducing the likelihood of active military conflict involving U.S.
forces. The more significant the cuts, the longer military operations
will take and the more and more lives are at risk.''
An overwhelming consensus of pro-Israel organizations--including J
Street--have long argued for robust US assistance worldwide, and
importantly urged that Israel not be treated as a special case,
exempted from cuts to foreign aid while programs affecting the rest of
the world are put under increasing strain. We urge the subcommittee to
continue expanding generous US assistance to other partners and peoples
in need, just as it has continued to increase aid to Israel.
Thank you again for the opportunity to provide our views on Fiscal
Year 2025 appropriations. I welcome and look forward to answering any
questions or requests for information that you may have.
[This statement was submitted by Jeremy Ben-Ami President.]
______
Prepared Statement of Jesuit Refugee Service/USA
On behalf of Jesuit Refugee Service/USA (JRS/USA), thank you for
the opportunity to present our views on the importance of investing in
refugee assistance programs in the FY25 State & Foreign Operations
Appropriations bill. Specifically, we urge the subcommittee to oppose
any cuts to programs that benefit forcibly displaced persons and to
instead support $4.4 billion for Migration & Refugee Assistance and
$1.12 billion for the Nita M. Lowey Basic Education Fund, including at
least $50 million in funding for Education Cannot Wait (ECW).
We want to extend our sincere thanks to Chairman Coons, Ranking
Member Graham, and members of the subcommittee for past efforts to
protect funding for refugee assistance programs and for championing
access to education especially for refugee and forcibly displaced
children. In this challenging fiscal environment, bipartisan
Congressional support that assists those affected by conflict and
crisis is critical in ensuring that the U.S. remains a leader in
offering opportunities for those who have been forcibly displaced to
learn and thrive.
The number of people forced from their homes due to persecution,
conflict, and violence reached 114 million in 2023, the highest number
on record.\1\ U.S. engagement and support for refugee assistance
programs has a direct impact on the well-being of refugees and other
displaced people who are often the most marginalized members of
society. Now more than ever, to promote a world of peace and justice
where all people can thrive, the U.S. must be a leader in helping those
who are among the most vulnerable.
As an organization serving more than 1.5 million refugees and other
forcibly displaced persons in 58 countries, we at JRS/USA work daily to
support their needs.\2\ With support from the State Department's Bureau
for Population, Refugees, and Migration (PRM), we can provide life-
saving assistance and help improve their quality of life. As the 5th
largest PRM NGO grantee, JRS/USA is able to provide access to
education, livelihoods, and psychosocial support for refugees who
otherwise would have no place to turn in places like Chad, Ecuador, and
Iraq.
critical funding for refugees
The Migration & Refugee Assistance account funds lifesaving
programs and plays a vital role in asserting U.S. leadership and
national interests around the world. U.S. funding--including support
for the UN Refugee Agency (UNHCR) and faith-based and civil society
organizations--helps meet the basic needs of displaced persons,
including access to food, water, shelter, healthcare, and education.
These programs assist developing countries that host 75 percent of
refugees as well as countries that have significant internally
displaced populations.\3\
For example, Chad currently hosts 1.3 million forcibly displaced
persons, including more than 550,000 new refugees from Sudan who have
arrived over the past year due to an eruption of conflict in their home
country.\4\ As the United Nations designated humanitarian organization
lead in the education sector in Chad, among other countries, and with
support from PRM, JRS is providing secondary education to more than
35,000 refugee students in Chad. But there are currently still an
estimated 200,000 refugee children who are not enrolled in secondary
school in Chad. With no end of the conflict in sight, more refugees are
expected to cross into Chad and the needs of all refugees inside the
country will only increase as resources are stretched.
Ecuador is home to one of the largest refugee populations in the
Western Hemisphere--mainly from neighboring Colombia--and to the
fourth-largest community of Venezuelan refugees and migrants in Latin
America.\5\ At the same time, Ecuador is currently experiencing a
severe period of violence and political instability, including a
significant escalation in homicide rates, which have nearly doubled
annually since 2020. This has resulted in an increase in the number of
Ecuadorians fleeing in search of safety and security. With resources
from PRM, JRS continues to implement life-saving programming for
displaced persons in Ecuador as well as Ecuadorians fleeing to
neighboring countries.
In Iraq, JRS provides a variety of programs to refugees and other
forcibly displaced people including Yazidis displaced by the genocide
in 2014. This specialized support consists of home visits and material
assistance among other types of aid. JRS runs learning centers that
provide structured education for children and young people as well as
skills training for adults. JRS has also made particular efforts to
provide mental health and psychosocial support (MHPSS) services to
survivors of the Yazidi genocide. These types of programs would not be
possible without assistance from donors like the United States.
Maintaining stable and humane conditions for displaced persons and
host communities during early onset emergencies and protracted crises
is critical for ensuring stability and security. Given that we are
currently facing the worst displacement crisis on record, it is
essential that support for the Migration & Refugee Assistance account
is increased to meet the growing needs and remains strong. Not only
does U.S. leadership on refugee issues send a signal for other
governments to follow our example, but U.S. support for refugee
assistance programs has a clear, tangible impact on people's lives,
helping them contribute to building a peaceful and hope filled world.
prioritizing refugee education
Refugee education is a necessary and critical protection tool. JRS
is proud to play an important role in educational programming around
the globe. Providing access to education for refugees and others who
are forcibly displaced is a vivid example of the impact of U.S.
investment and engagement. Not only does education offer an important
form of protection for children, but education is also the key to
achieving success across the Sustainable Development Goals (SDGs).
Without it, how can we expect the displaced children of today to
participate productively in building future peace and stability?
Yet, of the nearly 15 million school-age refugees, half are not in
school. Sustained enrollment in school for refugees is also a challenge
as 38 percent are enrolled in pre-primary school, 65 percent in primary
school, 41 percent in secondary school, and only six percent at the
tertiary level.\6\ An even greater number--224 million--conflict-
affected children lack educational services, denying them their right
to an education and making them more vulnerable to violence,
trafficking, child labor, child marriage, and recruitment by armed
groups.\7\
In 2021, only 2.9 percent of global humanitarian financing was
allocated to education.\8\ Through robust funding of global education
programs, and by ensuring that education is a core part of humanitarian
assistance, we can ensure that more displaced children are gaining
access to a quality education and a hopeful future. This includes
encouraging bilateral donors, multilateral entities, and corporate
donors to take part in these efforts.
The U.S. has begun to recognize the importance of investing in
refugee education in recent years as we witness the impact of conflict
and crisis on young people. But the need is arguably more important now
than ever before. Continued and increased support from the U.S.
Government, as well as multilateral partnerships like Education Cannot
Wait, play a critical role in helping forcibly displaced people build a
future for themselves and the communities in which they live.
education cannot wait
Launched in 2016 with the support of civil society organizations
including JRS/USA, Education Cannot Wait is the first global movement
and fund dedicated to education in emergencies and protracted crises.
ECW gathers international humanitarian and development aid actors,
along with public and private donors, to help reposition education as a
priority on the humanitarian agenda, usher in a more collaborative
approach among diverse actors and foster additional funding to ensure
that every crisis-affected child and young person is in school and
learning.
The U.S. government has played a critical role in ECW's
transformative efforts, contributing over $170 million in financial
assistance since its inception, including $25 million in annual
appropriations in FY20, FY21, and FY22; $30 million in FY23; and $30.4
million in FY24. The U.S. also provides technical support to ECW and
its partners and plays a leadership role in ECW's governance structure.
USAID and PRM work together to contribute resources, share leadership
responsibilities, and ensure that U.S. resources are put to good use.
To date, ECW has raised $1.6 billion from 23 donors, including the
private sector.\9\ With both first emergency rapid response and multi-
year funding platforms, ECW has reached over 8.8 million children and
youth and trained over 140,000 teachers in 43 crisis-affected
countries.\10\ ECW-supported programs span a wide spectrum of context-
specific activities including water and sanitation infrastructure,
school feeding, mental health and psychosocial support, learning tools
and materials, school infrastructure, and teacher training and
incentives. Programs are implemented through UN agencies as well as
international, national, and local NGOs, including Jesuit Refugee
Service.
With the support of ECW funding in Uganda, JRS has been able to
improve educational facilities for refugee girls enrolled in secondary
school. This includes building dormitories, separate bathing
facilities, additional classrooms, and teacher's quarters. These
investments have enabled girls to study and achieve their goals in a
safe and productive environment and are critical in Uganda and other
refugee-hosting communities. Congress must continue to invest in this
innovative partnership which allows the U.S. to contribute to timely
and critical programs that make an immediate impact in the lives of
young people who have been displaced from their homes and their
schools.
conclusion
In a world navigating a growing number of crises, how we respond to
the millions of families and children who have been forced to flee
their homes impacts not only their future but peace and security around
the globe. Now is the time to redouble our efforts and demonstrate U.S.
global humanitarian leadership.
We thank Congress for its past support for these critical programs,
including its longstanding commitment to, and support for, UNHCR and
faith-based and civil society organizations serving refugees in some of
the most difficult circumstances. We urge the subcommittee to oppose
any cuts to refugee assistance and to instead include $4.4 billion for
Migration & Refugee Assistance and $1.12 billion for basic education
programs, including $50 million in funding for Education Cannot Wait,
in the FY25 State & Foreign Operations Appropriations bill.
Thank you again for your time and consideration.
---------------------------------------------------------------------------
\1\ UNHCR (2024). 2023 Donor Impact Report. https://www.unhcr.org/
media/2023-donor-impact-report.
\2\ Jesuit Refugee Service/USA (2022). 2022 Annual Report. https://
www.jrsusa.org/wp-content/uploads/sites/2/2023/07/JRS-AR-2022-Final-
7.1-Small.pdf.
\3\ UNHCR (2023). Mid-Year Trends 2023. https://www.unhcr.org/us/
media/mid-year-trends-2023.
\4\ UNHCR (2024). Global Focus: Chad. https://reporting.unhcr.org/
operational/operations/chad.
\5\ UNHCR (2024). Global Focus: Ecuador. https://
reporting.unhcr.org/operational/operations/
ecuador.
\6\ UNHCR (2023). ``Unlocking Potential: The Right to Education and
Opportunity.'' https://www.unhcr.org/media/unhcr-education-report-2023-
unlocking-potential-right-education-and-
opportunity.
\7\ Education Cannot Wait (2023). ``Crisis-Affected Children and
Adolescents in Need of Education Support: New Global Estimates and
Thematic Deep Dives.'' https://www.educationcannotwait.org/sites/
default/files/2023-07/f_ecw1022_globalestimates_paper_
mech2_1.pdf.
\8\ United Nations Transforming Education Summit (2023).
``Education in crisis situations: A commitment to action.'' https://
www.un.org/en/transforming-education-summit/education-crisis-
situations.
\9\ Education Cannot Wait (2024). Contributions by Donor. https://
www.educationcannotwait.
org/about-us/our-partners/our-donors.
\10\ Education Cannot Wait (2024). Main Results Dashboard. https://
www.educationcannotwait.
org/impact-results/main-results-dashboard.
[This statement was submitted by Kelly Ryan, President.]
______
Prepared Statement of the Joint Baltic American National Committee,
Inc. (JBANC)
Dear Chairman Coons, Ranking Member Graham, and Members of the
subcommittee:
The Joint Baltic American National Committee, Inc. (JBANC),
representing the Baltic-American community, has worked closely with
Congress since 1961 to enhance United States policy towards Estonia,
Latvia, and Lithuania.
As the subcommittee considers appropriations for the fiscal year
(FY) 2025, we remain grateful for the unwavering and enduring support
that the United States has shown to the Baltic countries. Foreign
Military Financing (FMF) and International Military Training and
Assistance (IMET) programs for the Baltic countries have remained core
elements of military assistance for nearly three decades, together with
more recent, and much-needed Baltic Security Initiative funding. FMF
funding, which ``enables eligible partner nations to purchase U.S.
defense articles, services, and training,'' has maintained similar
investment over recent years. We are pleased that the House report
language for FMF legislation is at $29.25 million for the Baltic
countries: $9.75 million each for Estonia, Latvia, and Lithuania. We
urge the subcommittee to continue to support robust FMF and IMET
funding for the Baltic countries.
U.S. security assistance remains critical for Estonia, Latvia, and
Lithuania in being able to defend against escalating threats from
Russia. The Baltic American community is especially grateful for
continued strong language on security assistance to the Baltic
countries' capability development and hopes the FY25 National Defense
Authorization Act will reflect the same. All these measures help to
emphasize the strong connection between the United States and the
Baltic countries.
It bears repeating that every Estonian, Latvian and Lithuanian
knows that freedom cannot be taken for granted. Besides their ongoing
commitment to reach 3% of GDP for defense spending in 2025, the Baltic
countries have been outstanding in delivering their own stocks of
weapons and materials to Ukraine to help that country continue to
defend itself.
Thank you for the opportunity to make these points to the
subcommittee, and for your efforts on this important area in
transatlantic security. We look forward to working with you on this
issue. If you or your staff have any questions, please contact us.
[This statement was submitted by Karl Altau, Managing Director.]
______
Prepared Statement of Kiwanis International
Mr. Chairman, it is an honor to provide testimony to the Committee
on behalf of more than 430,000 Kiwanis-family members in nearly 16,000
Kiwanis family clubs, with more than half located within the United
States. We appreciate the opportunity to provide testimony in support
of the Kiwanis/UNICEF program to eliminate maternal and neonatal
tetanus and in support of our work related to iodine deficiency and
nutrition. We are seeking the support of this Committee to recommend
$2,000,000 in the fiscal year 2025 bill for maternal and neonatal
tetanus (MNT) and $3,500,000 for iodine deficiency and iodine
nutrition. This funding would come from the U.S. Agency for
International Development's Global Health Programs, Maternal and Child
Health and Nutrition accounts.
I am the elected volunteer president of Kiwanis International. I
have the privilege of serving members in the United States and in more
than 80 countries around the glove.
iodine deficiency and nutrition
Iodine deficiency is the world's leading cause of preventable
mental impairment. Iodine deficiency has been kept under control
through a global movement to iodize edible salt. Funds provided through
USAID and its public/private partnership with Kiwanis International,
UNICEF, and the Iodine Global Network are preventing brain damage and
other adverse outcomes for millions of children.
Kiwanis International has successfully invested in universal salt
iodization to virtually eliminate iodine deficiency disorders for two
decades. In partnership with UNICEF, USAID and several governments,
global access to iodized table salt increased from less than 20% to 88%
today. Kiwanis has raised and invested more than $100 million from its
members and clubs for this effort.
We ask for your support for $3.5 million in fiscal year 2025 to
sustain existing iodine deficiency programs and to initiate additional
programs to address the needs of the few countries that are still at
risk.
Iodine, a micronutrient that naturally occurs in some foods, is an
essential element for normal growth and development in humans. Iodine
is not synthesized by the body and is required to be provided through
the daily diet in recommended amounts. It is required for proper
functioning of the thyroid gland, which in turn regulates many
biochemical reactions and the proper skeletal and central nervous
system development in fetuses and infants.
While many of the disorders resulting from severe iodine deficiency
in dietary intake have virtually disappeared (e.g. goiter, cretinism,
stunting, stillbirth), insufficient iodine during pregnancy leads to
brain damage that can reduce a child's IQ by 8 to 10 points. Even mild-
to- moderate iodine deficiency at school age can reduce IQ by 3 to 5
points.
Thanks to iodized salt, most infants and children of the world have
had correct brain development. Adequate iodine in the diet during
pregnancy and until age 5 will greatly improve a child's healthy brain
development and readiness to learn as he/she enters primary school
grades. Adequate iodine during early life is critical to children's
ability to reach their full potential.
The cost of prevention is small--$.05 a year per individual for a
lifetime of protection against iodine deficiency. On average, every
dollar spent on salt iodization yields a $30 return on investment
through improved learning, which leads to greater productivity in later
life that boosts economies of the Nations in which these children live.
Recent developments in food fortification, such as double fortified
salt (e.g. adding iron, zinc, folic acid), or adding iodized salt to
rice, flour, maize, tea, bouillon cubes, and condiments, offer
promising results to extend the efficiency of this very inexpensive
health intervention.
maternal and neonatal tetanus
For over 13 years, Kiwanis and its members have been working to
eliminate the deadly disease of maternal and neonatal tetanus (MNT).
Kiwanis launched its global campaign The Eliminate Project in 2010 to
help save or protect more than 61 million mothers and newborns from
MNT. Tetanus is a preventable disease that kills one baby every 22
minutes.
Participation and funding by the United States are imperative to
the success of eliminating MNT. In many developing countries, women
give birth at home without the support of a healthcare worker and
without a clean, sterile blade to cut the umbilical cord. This, and
other factors, can lead to tetanus poisoning in the newborn baby,
causing severe spasms and an excruciatingly painful death.
It is a terrible disease in which human contact exacerbates the
baby's pain. A mother's touch hurts, leaving the baby to writhe in
agony for days until he or she dies.
MNT results when tetanus spores, which are present in soil
everywhere, enter the bloodstream. It is mainly caused by a lack of
access to sanitary birthing conditions, unclean instruments used to cut
the umbilical cord, and unclean post-partum cord care. MNT is easily
prevented by a series of vaccine doses to women of childbearing age,
who pass the immunity on to their children.
Women who are properly vaccinated with the tetanus vaccine will
have immunity through most of their childbearing years and their babies
are protected through the first 2 months of life. . We believe these
women matter. They deserve to give birth to healthy babies, and their
babies deserve to achieve their full human potential.
In partnership with UNICEF, Kiwanis committed to and has raised
$110 million to immunize women in countries where MNT is still a major
health threat. More than 6,000 Kiwanis-family members and clubs in the
United States alone have contributed to the fundraising campaign. We
are now tackling the hardest leg of a difficult journey.
Since 2000, MNT has been eliminated in 48 of the 59 at risk
countries. Between 1999 and 2018, more than 169 million women in some
of the world's most remote places were vaccinated against tetanus,
saving thousands of newborns from death due to tetanus every year.
Eleven countries remain where MNT is still a public health problem.
In July 2014, USAID announced that it was joining as a partner with
Kiwanis to help eliminate MNT. Kiwanis has been working in partnership
with USAID to strengthen its programs on MNT and to provide funding
through the UNICEF global effort. Kiwanis' global volunteer network and
strength in reaching communities and leaders, along with UNICEF's field
staff, technical expertise, and unbeatable supply chain, are working to
eliminate this cruel, centuries-old disease and pave the way for other
interventions.
support for partners
We have a highly effective partnership with UNICEF and urge you to
support UNICEF in its request for a U.S. fiscal year 2025 contribution
for the UNICEF core resource budget of $175 million. We also support
funding for the Maternal and Child Health account at a level of $1.15
billion.
a personal experience
I have been a member of Kiwanis since 1993. As the president of
Kiwanis, I have had the opportunity to travel and to experience the
unique cultures in many of these countries.
I am fortunate enough to work with someone who has benefited from
the iodine nutrition initiative (our first worldwide service project
IDD).
A young man who is now serving in the top leadership role in our
Asia Pacific region grew up in Nepal and has become passionate about
Kiwanis because of the funding Kiwanis and others committed to his
health and the Kiwanis/UNICEF successful effort to eliminate iodine
deficiency disorders (IDD). IDD was one of the leading causes of mental
and developmental disabilities in his community.
UNICEF and its partners have immunized more than 161 million women
all over the globe, protecting them and their babies, helping to
eliminate MNT in 48 out of 59 countries at high risk for the disease,
including the Philippines where Kiwanis has more than 5,000 members.
Kiwanis is committed to support both of these global health
initiatives and our members are passionate about this part of the work
we and they do.
As a mother and grandmother, I am one of those passionate members.
conclusion
Mr. Chairman, I ask you to join us in our efforts working to
eliminate MNT and supporting iodine nutrition. Help continue targeting
the last countries to be validated for the elimination of MNT and
protect the lives of hundreds of thousands of children.
Help us ensure that no baby suffers this excruciating seven-day
death ever again by recommending $2,000,000 within the Global Health,
Maternal and Child Health account for the elimination of maternal and
neonatal tetanus. This funding will help continue targeting the last
countries to be certified for the elimination of MNT and protect the
lives of hundreds of thousands of children.
Funds provided through USAID and its public/private partnership
with Kiwanis International, UNICEF, and the Iodine Global Network, are
preventing brain damage and other adverse outcomes for millions of
children by supporting new and sustaining existing programs to iodize
salt. USAID funding at the level of $3,500,000 in the Global Health,
Nutrition account will provide continued funding to keep global
attention to this permanent intervention and to address the needs of
the few countries that are still at risk of iodine deficiency
disorders.
Thank you for your consideration.
[This statement was submitted by Katrina Baranko, President.]
______
Prepared Statement of Mercy Corps
Dear Chairman Coons and Ranking Member Graham,
As the Vice President for Policy and Advocacy at Mercy Corps, I
write to express my support for protecting and increasing U.S. foreign
assistance funding to continue carrying out lifesaving and resilience-
building work. These investments play a critical role in affirming U.S.
global leadership and commitment to vital humanitarian and development
programs.
The United States' role in the world stands at a critical juncture-
humanitarian and development needs are rising across the globe,
democratic gains continue to erode, decades-long progress against
poverty and disease are backsliding, and competitors that do not share
American values are gaining influence. Foreign assistance provided by
the American taxpayer helps maintain global stability, drives economic
growth at home and abroad, and combats poverty all over the world.
What's more, foreign aid bolsters America's influence and ideals
globally-all while delivering at home for the American people. At less
than 1% of the total Federal budget, U.S. global development and
humanitarian relief efforts deliver an exceptional return on investment
in both economic and security terms. At a time of historic suffering,
it is critical to ensure we maintain U.S. humanitarian leadership and
don't lose focus on long-term development and resilience priorities
that help reduce the need for future foreign assistance and limit the
probability of conflict and insecurity.
Mercy Corps is a multi-mandate international NGO that provides
humanitarian aid, development, and peace assistance in more than 40
countries around the world. We partner to put bold solutions into
action-helping people triumph over adversity and build stronger
communities from within. Mercy Corps supports communities--and the most
marginalized within them--to emerge from crises and build towards a
more inclusive, resilient future. Mercy Corps is a leader in the
humanitarian and development NGO space and a major implementing partner
for both USAID and the Department of State.
Despite global efforts to address growing food insecurity,
conflict, instability and worsening climate shocks, in 2024, 302
million people are expected to need humanitarian assistance across 73
countries; needs driven by conflict, extreme weather events, and
economic volatility. By the end of 2023, more than 333 million people
were facing acute levels of food insecurity and as many as 783 million
people were facing chronic hunger. And by mid-2023, more than 1 in 73
people worldwide remained forcibly displaced, with 88 percent of them
in low- and middle-income countries.
These challenges have driven an increase in attention and resources
to humanitarian response. The inclusion of humanitarian funding in the
recently passed national security supplemental package serves as a
vital example to U.S. partners that more can and must be done to
address the rapid increase in needs the world has seen over the last
several years. Thank you for your consistent commitment and support for
humanitarian programs throughout the supplemental process. The
inclusion of humanitarian assistance in the supplemental would not have
been possible without your persistent championing of those efforts.
However, it is critical that humanitarian assistance is partnered
with prioritization of systemic long term development investments and
vital resilience-building work. In FY24, despite strong Senate support,
cuts to the two primary development accounts--Development Assistance
and the Economic Support Fund--could further exacerbate humanitarian
needs, disrupt livelihood development, weaken market systems, and
contribute to worsening displacement and food insecurity in many parts
of the world. Continued Senate leadership and defense of development
and resilience building programs remains critical.
In FY2025, Mercy Corps urges the U.S. Congress to support the
following humanitarian, development, and peacebuilding accounts in the
State, Foreign Operations, and Related Programs (SFOPs), to enable
further life-saving humanitarian work and increase resources devoted to
long-term resilience building efforts. Many of our recommended funding
levels are consistent with Senate FY24 levels.
--International Disaster Assistance (IDA) must be funded at no less
than $4.85 billion to meet growing humanitarian needs. The IDA
account provides critical humanitarian assistance to civilian
populations in response to natural disasters, conflict and
insecurity, and other sudden-onset emergencies. IDA-funded
programming, overseen by USAID BHA, includes emergency food
assistance, nutrition, shelter, safety and protection, water/
sanitation/hygiene (WASH), health, logistics, coordination, and
livelihoods support. Funds also support investments that
promote early recovery, build resilience, and reduce risk in
communities vulnerable to recurrent humanitarian crises. As
complex conflicts and climate-related disasters increase in
frequency, severity, and duration, rising operational costs and
commodity prices coupled with high inflation are increasing the
cost of humanitarian responses. The IDA account allows for the
flexibility needed to adjust to changing contexts and use the
right tools in the right place at the right time based on
needs. Efforts to condition or add directives to humanitarian
assistance undermines the effectiveness and limits the impact
of programs.
-- Program Example.--The Mercy Corps-led VenEsperanza program in
Colombia, funded by USAID/BHA, delivers food assistance and
complementary nutrition support to vulnerable Venezuelan
migrants, Colombian returnees, and host community members.
VenEsperanza also supports participants to transition from
a State of emergency to more secure and sustainable
economic and social integration in Colombia through
household financial management skill building,
entrepreneurship training, savings groups establishment and
access, and employability skill-building.
--The Development Assistance (DA) account must be funded at no less
than $4.769 billion to scale up critical resilience-building
work. DA focuses on poverty reduction and promotes the
development of self-reliant, resilient, and democratic
societies. It supports programming that helps countries and
communities accelerate and sustain inclusive economic growth;
address chronic poverty; fight hunger and malnutrition; prepare
for and adapt to climate change; address root causes of
migration; improve education; increase access to WASH; and
promote water security. Investing in the adaptability and
economic self-reliance of vulnerable communities--especially
those prone to conflict and extreme weather-driven crises--is
vital to preventing the need for costlier humanitarian
interventions later.
--Program Example.--The Mercy Corps-led, USAID-funded Small Town
WASH program is a 5-year, $13mn program designed to
facilitate the economic recovery of select crisis-affected
communities in northeastern Nigeria through (1) the
rehabilitation and creation of new WASH infrastructure such
as piping systems and reticulations, water collection
points, and water kiosks, as well as safe restroom
facilities; and (2) strengthening the capacity of local
institutions to sustainably manage and govern them well
after Mercy Corps' program has finished.
--The Economic Support Fund (ESF) must be funded at no less than
$4.026 billion to meet economic development needs in countries
of strategic U.S. interest. ESF is a critical account which
supports development and economic assistance, particularly to
countries of strategic importance to the U.S., to meet near-
and long-term political, economic, development, and security
needs. ESF funds are available to protect human rights and
freedom of the press, combat human trafficking and corruption,
address shared global challenges like food insecurity and
energy security, advance democracy and good governance, and
spur economic growth. The ESF account also has a broad mandate
to support private sector engagement and to address the threats
caused by the climate crisis.
--Program Example.--The Mercy Corps-led Informal Livelihoods
Advancement Activity in Jordan is a USAID-funded activity
aiming to support Jordanian micro and small enterprises
(MSEs) to grow, transform, and become resilient to future
shocks. Its main objective is to sustainably increase
revenues and sustain job creation among MSEs and formal and
informal home-based businesses, focused on four economic
sectors: tourism, agriculture, manufacturing, and services.
--Feed the Future (FTF) must be funded at no less than $1.2 billion
to curb rampant global food insecurity. FTF, America's flagship
global food security initiative, is of vital importance to U.S.
development and food security policy. FTF programs are active
in 20 countries and support country-driven approaches to
improving food security and building communities' resilience to
shocks, including through agriculture development, nutrition,
and resilience programs, as well as research and technical
assistance. Given that food insecurity can be a major
contributing factor to societal unrest, government instability,
and conflict, investing in FTF supports U.S. security and
national interests.
--Program Example.--The Mercy Corps-led Resilience in Pastoral
Areas--North program in Ethiopia (USAID/REFS-funded) is a
multifaceted program that aims to improve the resilience
capacities of drought-affected households, markets, and
governance institutions in the lowland areas to contribute
to enhanced food security, inclusive economic growth, and
improved sustainable delivery of nutrition services. It
deploys a market systems development approach to support
intensified and sustained pastoral and agro-pastoral
production and marketing, and to provide diversified and
sustainable economic opportunities for people transitioning
out of pastoralism. RIPA-North has also been layered with
three crisis modifiers during the prolonged drought in East
Africa to help communities cope during emergencies and
sustain development gains.
--The Complex Crises Fund (CCF) must be funded at no less than $60
million in order to maintain peaceful outcomes in fragile
contexts. CCF provides resources for preventing and responding
rapidly to emerging or unforeseen crises in fragile countries
at a heightened risk of instability. Managed by USAID CPS, it
provides global, flexible funding, enabling the U.S. to respond
outside of planned programming. CCF funds prevent conflict and
respond to unanticipated opportunities to build peace and
advance democratic progress in fragile contexts. USAID has
utilized CCF in 36 countries to date.
--Program Example.--The Mercy Corps-led, USAID-funded Securing
Peace and Promoting Prosperity program ran from 2017-2023
in the Karamoja region of Uganda, focused on addressing
governance, economic, social, and ecological issues that
risked igniting conflicts. It brought together deeply
divided communities, paved the way for sustainable and
equitable land and water management practices to take
place, promoted collective trauma healing, and reduced
social tensions. In places affected by fragility and
conflict, peace and governance interventions are the first
step in creating an enabling environment that supports
climate adaptation.
--The Prevention and Stabilization Fund (PSF) must be funded at no
less than $200 million to enable the successful implementation
of the Global Fragility Act (GFA). PSF aims to avert violence,
stabilize conflict-affected areas, and address the root causes
of global fragility. Funding supports context specific efforts
to strengthen social cohesion, combat corruption, protect human
rights, promote conflict reduction and reconciliation, engage
private-sector actors in peacebuilding, and reinforce critical
governance reforms, transitional justice, as well as enable
international coordination and monitoring evaluation and
learning. It is critical to the success of the GFA as it funds
the development of a number of areas contributing to stability,
including justice sector reform, women and youth empowerment,
and accountable service delivery. Appropriating the $200
million authorized by the GFA in FY25 will help ensure the
successful implementation of this law and provide funding to
help ``look upstream'' to address fragility factors before they
significantly impact their countries' future.
America stands at a critical juncture. The world is grappling with
escalating conflicts, resulting in devastating consequences. Increasing
hunger, disease, migration, and water scarcity--compounded by severe
and changing weather patterns--leave a trail of destruction and
threaten to upend international stability. Continued Senate leadership
and championship of humanitarian, development, and peacebuilding
programs is more essential than ever. Sustained investments in U.S.
foreign assistance are a crucial component of global leadership,
bolstering decades of work done to make the world a safer, more
prosperous place with less disease and poverty.
[This statement was submitted by Kate Phillips-Barrasso, Vice
President for Policy and Advocacy.]
______
Prepared Statement of the Millennium Water Alliance
Dear Chairman Coons, Ranking Member Graham, and Honorable Members of
the subcommittee:
We write in support of funding of not less than $500 million in
Fiscal Year 2025 for water supply, sanitation, and hygiene (WSSH)
programs administered by the U.S. Agency for International Development
under the Sen. Paul Simon Water for the Poor Act of 2005 (Public Law
109-121), as amended by the 2014 Water for the World Act (Public Law
113-209).
This amount reflects our estimate of the need for U.S. assistance
in the High-Priority Countries designated by USAID last year pursuant
to the Water for the World Act, enacted 10 years ago, combined with an
assessment of the capacity of USAID missions to process such funds .for
effective catalytic programming consistent with the U.S. Government's
Global Water Strategy, also required under the Water for the World Act
of 2014.
We fully understand the pressures created by budget caps, reflected
in last year's cut of nearly $21 million from the FY 2023 enacted level
of $475 million. Since FY 2024 was enacted only recently, we do not
know how USAID will specifically distribute this reduction in WSSH
programming in the field.
As you know, from FY 2021 through FY 2023, Congress annually
enacted $475 million for this programming. We acknowledge again with
gratitude the recommendations of your subcommittee for $475 million and
up to $500 million over those fiscal years, which recognized the need
for significant increase in post-COVID situations in the poorest
countries.
USAID in 2020 applied to water and sanitation programming
relatively little of the 2020 emergency supplemental COVID funding.
Many of our 21 members now work with USAID missions in critical
priority countries with more programs with healthcare facilities, and
coordination with other partners on health systems strengthening, and
intensive hygiene education.
Poor sanitation amplifies the channels for many infectious
diseases, some of which can be reduced or eliminated with better
sanitation practices and very basic systems. Poor sanitation has a
massive impact on the environment, endangers safe food supplies, and in
particular affects children's health.\1\ Still, each year, more than
297,000 children under five die from diarrheal diseases, which could be
prevented by improved water, sanitation, and hygiene.\2\
Now, as then, a strong investment in WSSH helps to safeguard U.S.
strategic interests. Improved WSSH can help prevent pandemic disease
and build resilient health care systems.
The requested increase over the FY 2024 appropriation would:
--Resume the work begun by missions in concert with NGOs and others
to expand the USAID partnership with the private sector in many
target countries, where all participants in USAID programs
increasingly look to private and public sector partnership to
advance the immediate work as well as build locally-owned
systems and financing plans to maintain WSSH access long after
the catalytic USAID grant or contract has completed.
--Contribute to efforts to provide WSSH in healthcare facilities,
prevent infectious disease outbreaks, and help end the
transmission of cholera and Neglected Tropical Diseases.
--Assist USAID in much-needed data collection and analysis to
increase program efficiency and provide the tools needed for
even longer-term sustainable infrastructure and governance in
the field, essential in building systems to reduce the impact
of future epidemics.
The history of leadership of this subcommittee has been essential
to the progress made since passage of the 2005 water for the Poor Act.
On behalf of our implementing and donor partners that work in more than
90 countries around the world to alleviate poverty, build democracy,
and represent the best of America to hundreds of thousands of grateful
people, we thank you.
---------------------------------------------------------------------------
\1\ WASHData.org May 2021.
\2\ https://www.unwater.org/water-facts/water-sanitation-and-
hygiene/.
---------------------------------------------------------------------------
The Millennium Water Alliance
Acacia Water CARE Catholic Relief Services
Center for Affordable Water & Sanitation Technology Chemonics
Desert Research Institute Eastern Congo Initiative
Food for the Hungry
Global Water Center HELVETAS IRC WASH
Living Water International Mortenson Center-University of
Colorado Boulder
Save the Children Splash WaterAid America
The Water Project Water Mission
World Resources Institute World Vision
[This statement was submitted by John D. Sparks, Director of
Advocacy & Communications.]
______
Prepared Statement of Modernizing Foreign Assistance Network
Chairman Coons, Ranking Member Graham, and Members of the subcommittee:
Thank you for the opportunity to submit written testimony on behalf
of the Modernizing Foreign Assistance Network (MFAN) regarding aid
effectiveness items for the fiscal year 2025 (FY25) appropriations
bill. Thank you also for the bipartisan leadership of this subcommittee
over the years in ensuring America's global engagement and championing
investments in the array of programs that are vital to fostering a more
secure, just, and prosperous world.
MFAN is a bipartisan reform coalition created in 2008 to support
more effective and more accountable U.S. foreign assistance that
advances American interests, delivering greater results for people in
need and U.S. taxpayers. Our priorities include:
--Continuing to elevate development as a distinct arm of American
global engagement;
--Supporting evidence-based development programs, building on
accountability and principles of monitoring, evaluation, and
learning;
--Building and expanding the U.S. Government's (USG) partnerships
with new and diverse stakeholders, including national and local
actors;
--Boosting financing for development, including through greater
partnership with the private sector;
--Utilizing new and innovative approaches to development; and
--Improving coordination and collaboration among all USG agencies
involved in foreign assistance, including USAID, the State
Department, the MCC, and the U.S. International Development
Finance Corporation (DFC).
Thanks in large part to the bipartisan work of this subcommittee,
significant progress has been made in recent years in helping to ensure
U.S. aid dollars are used in the most effective way possible to prevent
disease, save lives, and unlock opportunities for economic growth. From
the life-saving work of PEPFAR to mobilizing greater private sector
financing through the DFC, there is much to be proud of in the advances
in aid effectiveness. That said, much more remains to be done, and MFAN
therefore urges the subcommittee to support the following in the FY25
appropriations bill:
--Agency Transparency and Reporting.--Directing USG foreign
assistance agencies to comply with the quarterly publication
requirements of the Foreign Aid Transparency and Accountability
Act.
--USAID Operations.--Supporting no less than the Administration's
request of $1.86 billion for the Operating Expenses (OE)
account and the creation of an Acquisition and Assistance (A&A)
Working Capital Fund.
--USAID: Locally Led Development.--USAID reporting directives
detailing the agency's progress in advancing locally led
development and the agency's work on Domestic Resource
Mobilization.
--USAID: Reducing Bureaucratic Barriers.--USAID reporting on how its
Private Sector Engagement (PSE) Modernize, Burden Reduction
Program (BRP), EDGE Fund awards, and Localization policy are
being integrated and are leading to better development
outcomes.
--USAID: Evidence & Innovation.--Directing USAID to further integrate
existing cost-effectiveness evidence into activity design
guidance and practice and to use procurement approaches that
are open to the ideas of the private sector, social enterprise,
and non-profit community.
--DFC and MCC Administrative Expenses.--Ensuring these costs keep
pace with programming increases.
--Flexible Funding.--Modestly increasing the Executive branch's
deviation authority from sector directives included in the bill
and report tables.
Below we summarize the need for the inclusion of these provisions.
Additional details are included in our full list of FY25
recommendations submitted to the subcommittee.
agency transparency and reporting
Good information is key to ensuring that U.S. foreign assistance
maximizes accountability and sustainable impact. The Foreign Aid
Transparency and Accountability Act of 2016 (FATAA) requires agencies
involved in implementing U.S. foreign assistance to publish
``comprehensive, timely, and comparable'' project level information on
ForeignAssistance.gov on a quarterly basis. It also requires agencies
to monitor and evaluate their programs and to publicly report all
evaluations. Not all agencies are complying with the quarterly
publication requirements of FATAA, however, which negatively impacts
the ability of agencies to make policies and programming decisions
based on transparent facts and evidence. We encourage the subcommittee
to ensure all agencies come into compliance with these requirements and
provide a plan for avoiding reporting delays in the future.
usaid--operations
Robust funding for USAID's OE account is essential for aid
effectiveness and supports agency efforts to drive innovation, attract
and retain skilled development talent, oversee program implementation,
improve transparency and accountability, evaluate results, and apply a
strong learning agenda for future programming. USAID, however, has
inadequate staffing levels to effectively manage its current workload,
much less meet the unprecedented demands placed on it from record
levels of procurements. USAID contracting officers manage more than
four times the workload of their contracting counterparts at the
Department of Defense. This is not a recipe for aid effectiveness. We
urge the subcommittee to support the President's request for the OE
account so that the agency can address these personnel shortages. We
also strongly support USAID's proposal to create an Acquisition and
Assistance (A&A) Working Capital Fund; authority for the Fund would be
a critical step in addressing USAID's Contracting Officer staffing
shortage. Lastly, we note that USAID lacks adequately skilled staff to
deliver on the promise of more robust partnering with the private
sector. Enhancing the private sector and business development
experience of its staff, including in the recruitment process, must be
prioritized.
usaid--locally led development
Locally led development, also known as community-led-development or
country ownership, is generally a more effective and sustainable way to
deliver aid. That is because it helps accelerate country transitions
from aid to broader forms of partnership with the United States--and
greater self-reliance. Recent (FY22-24) State-Foreign Operations bill
reports have included important directives for USAID to report on its
progress in advancing locally led development. We urge the continuation
of these directives, including reporting on how USAID ensures its local
funding methodology does not include funding international
organizations as part of tracking progress toward Administrator Power's
goal to direct 25 percent of development funds to local entities by
FY25. Also, building on report language included in prior years'
appropriations bills, we encourage the subcommittee to request a report
from USAID detailing the agency's work to develop and implement a
Domestic Resource Mobilization (DRM) strategy. With the demands on U.S.
foreign assistance programs at exceptionally high levels, assisting
recipient countries build the capacity to invest and manage more of
their own resources to improve their citizens' health, education, and
economic well-being is a vital longer-term investment. Successful
models for DRM exist in the work of institutions such as the Global
Fund to Fight AIDS, Tuberculosis and Malaria, which outlines specific
requirements and expectations for countries regarding domestic
financing and resource mobilization as part of its sustainability,
transition, and co-financing policies.
usaid--barriers to partnership
We commend USAID for its efforts to institute reforms and reduce
bureaucratic barriers, including its locally led development work.
Notably, the Private Sector Engagement (PSE) Modernize and Burden
Reduction Program (BRP) initiatives represent important efforts to
expand the agency's partnerships with new and diverse stakeholders,
including national and local actors and the private sector, which are
central to achieving more sustainable impact and spurring long-term
self-reliance. However, the degree to which the work of PSE Modernize,
the BRP, awards by the EDGE Fund, and the agency's Localization policy
are being integrated and are leading to better development outcomes is
unclear. We encourage the subcommittee to seek reporting from the
agency on this matter.
usaid--evidence-based procurement and innovation
Over successive administrations, USAID has increased its commitment
to the use of rigorous evidence--in line with the FATAA and the
Foundations for Evidence-Based Policymaking Act. The use of cost-
effectiveness evidence--understanding the impact per dollar of a
proposed program--is key to achieving results and maximizing the
programs' ROI. Benchmarking proposed interventions against the cost-
effectiveness of interventions known to be effective promotes good
stewardship of taxpayer funds and provides the Agency with critical
information about whether and how foreign assistance is achieving its
stated objectives. Therefore, we encourage the subcommittee to direct
the Agency to further integrate existing cost-effectiveness evidence
into activity design guidance and practice and to conduct additional
benchmarking activity. We also encourage USAID to regularly use
procurement approaches that are open to the ideas of the private
sector, social enterprise, and non-profit community. In doing so, USAID
is more likely to identify cost-effective solutions to the development
problems it seeks to address.
funding for the millennium challenge corporation (mcc) and u.s.
international development finance corporation (dfc)
The DFC and MCC play invaluable roles in fostering economic growth
and poverty reduction. To ensure their work is maximized, it's
important that their administrative costs keep pace with rising
programmatic activity. MFAN is pleased the final FY24 agreement
rejected the House's cuts to the agency's administrative expenses and
instead increased funding; we urge the same for FY25. In addition,
while we recognize--due to the significant constraints on the
subcommittee's 302(b) allocation--the temptation to tap previously
appropriated MCC funds as a source of ``new'' funding for the bill, we
oppose the rescission of previously appropriated MCC funds. The
decision to rescind funding 3 years in a row, including $475 million in
FY24, is a worrying trend that risks undermining the MCC's unique
operations model. Ensuring the agency can deliver on its commitments
requires careful pre-planning and partner country commitments, both of
which depend on resources being set aside in advance.
flexible funding
Lastly, for many years, this subcommittee has maintained the
practice of including funding directives in the State-Foreign
Operations Appropriations bills that reflect congressional priorities
on how these resources should be spent. While it is the prerogative of
lawmakers to direct, oversee, and require accountability of taxpayer's
money, the number of directives and the mandatory nature of them has
grown considerably in the past two decades. These directives limit
agencies' ability to respond to rapidly changing circumstances and
pivot to opportunities that advance American national interests. For
these reasons, MFAN advocates for more flexible foreign aid funding
mechanisms on the part of Congress that are paired with appropriate and
timely accountability on the part of the executive branch. We are
pleased that Congress supported more flexible foreign aid funding in
the FY23 bill by expanding the 10 percent deviation authority beyond
the committee's tables. For FY25, we recommend additional adjustments
to Sections 7019 and 7060(h) to modestly expand the executive branch's
deviation authority. While these modest changes for FY25 would enhance
efforts to instill more flexibility in exchange for greater
accountability, other options are available to consider for current and
future appropriations. These could include lessons learned from the
relatively flexible funding Congress appropriates for PEPFAR and the
MCC.
Thank you again for this opportunity to present our recommendations
for the FY25 State and Foreign Operations Appropriation bill and for
considering these requests.
[This statement was submitted by Les Munson, Larry Nowels, and Ritu
Sharma, Co-Chairs.]
______
Prepared Statement of National Center for State Courts
Thank you, Chairman Coons, Ranking Member Graham, and distinguished
Members of the subcommittee for the opportunity for the National Center
for State Courts (NCSC) to testify on the importance of the rule of law
and the vital role that courts and other justice sector institutions
play in upholding democratic principles and safeguarding democracy
across the globe, along with protecting the United States' national
interests. NCSC, in association with the Conference of Chief Justices
(CCJ) and Conference of State Court Administrators (COSCA), urges this
subcommittee--in its FY25 State, Foreign Operations bill--to continue
and expand efforts carried out by the Bureau of International Narcotics
and Law Enforcement Affairs (INL) within the U.S. Department of State
and the U.S. Agency for International Development (USAID) to strengthen
democracy and the rule of law across the world through judicial reform
programs.
More than 50 years ago, U.S. court leaders founded NCSC with the
mission of leading and supporting State courts and courts around the
world in improving the administration of justice services in the midst
of evolving challenges that have impacted justice systems. We support
courts through providing evidence-based research, identifying and
promoting best practices and programs, providing consulting services to
courts and justice system partners, and enhancing the professionalism
of courts through education programs. NCSC assists U.S. State courts
that handle 97% of all cases filed in the country, including cases
presenting important Federal claims, and we also support U.S.
international development and security interests through federally
funded programs that promote the rule of law and democratic principles
in developing countries.
NCSC is the only organization that emphasizes collaborative
relationships with the CCJ, COSCA, and other associations of judicial
leaders. Through doing so, we hold unique perspectives on the most
pressing challenges and opportunities facing courts and the people they
serve. NCSC and our partner organizations are deeply committed to the
goal of improving lives through justice system reform, working toward
ensuring political stability, social harmony, and economic prosperity.
NCSC has worked with many bureaus within the Department of State
and with USAID over the last 30 years to implement over 100 rule-of-law
programs. These programs strive to build and strengthen democracy
abroad; protect vital U.S. domestic interests; combat authoritarianism
and disinformation; counter corruption, organized crime, and terrorism;
and promote human rights and justice, particularly for marginalized and
vulnerable groups. Currently, we implement rule of law programs in more
than 30 countries, and our justice partners in developing countries can
attest to the substantial impacts of U.S.-funded rule of law programs
abroad--building stronger justice systems and developing local
professional capacity to create helpful and sustainable judicial
reforms. Through strengthening local capacity building, U.S. assistance
programs stand out in the global donor community as smart, results-
oriented investments that create sustainable impacts.
We are in strong support of Federal programs that are essential to
promoting and strengthening the rule of law across the globe. We
specifically request that the programs outlined below be continued,
enhanced, and funded at the highest possible levels in FY25 in order to
advance the administration of justice internationally and to provide
support to partner countries in doing so:
--The Bureau of International Narcotics and Law Enforcement Affairs
(INL), which uses a broad set of tools to fight crime, illegal
drugs, and instability abroad. These include foreign
assistance, bilateral diplomacy, multilateral engagement, and
other tools that foster cooperation between international drug
control and cross-border law enforcement. Currently, NCSC
partners with INL in over 30 countries in Africa, Asia, the
Caribbean, the Middle East/North Africa (MENA), Europe, and
South America to implement programs around sustaining the rule
of law, justice education, drug courts, law enforcement
support, and prosecutorial training. Funding for the
International Narcotics Control & Law Enforcement line under
Foreign Operations is critically important to continuing and
expanding these vital programs that further a wide range of
U.S. global interests.
--The U.S. Agency for International Development (USAID), which works
with NCSC in Central America to implement the Justice Human
Rights and Security Strengthening Activity project. This
program aims to enhance citizen engagement with the security
and justice sectors, increase the efficiency of judicial
systems, and improve the effectiveness of community police
working with local partners and communities.
These investments are particularly critical today, given active
threats to democratic governance in countries around the world, which
threaten the peace and prosperity of the U.S. and our allies. We see
these threats through disinformation that spreads mistrust in the
legitimacy of elections, through barriers to access to justice that
diminish trust in institutions, and through corruption that finances
cross-border criminal and terrorist organizations. Programs that
maintain government integrity, accountability, ethics, and judicial
independence are necessary to prevent, detect, and punish malign actors
who make such threats to democracy.
Investments in rule of law programs allow the U.S. to further
systems where no one is above the law and where there is equal justice
under the law, ultimately bolstering the capabilities of foreign
judicial systems to check authoritarianism and arbitrary rule. When
judicial systems are strong and well-functioning, they can help counter
state-sponsored terrorism, build regional security, mitigate government
corruption, reduce refugee migrations that can affect American borders,
strengthen the public's trust in governing institutions, and prevent
illegitimate regimes from gaining power through undemocratic means.
NCSC is grateful to collaborate with the State Department on
initiatives that promote the rule of law across the globe, including
the following activities and milestones made possible through critical
Federal funding:
--In Morocco, NCSC works with counterparts at the Moroccan Ministry
of Justice and Prison Administration and civil society
organizations to improve outcomes for youth detainees by
evaluating detention conditions; promoting juvenile justice
reforms; and supporting interagency coordination, referral
networks, and service delivery.
--In Tunisia, NCSC works with the Ministry of Justice to advance
justice sector digital transformation and interoperability in
line with the National Digital Tunisia Strategy, and also
supports civil society actors to improve legal awareness and
access to justice.
--In Lebanon, NCSC works with key judiciary counterparts to improve
case processing efficiency and retrieval of past case records.
By the end of 2023, more than 135,000 case files had been
physically reorganized and refiled according to new protocols
designed with NCSC assistance.
--In Mongolia, NCSC is currently exploring ways to support the
country's growing democracy and market economy by helping
strengthen its judicial discipline system, its judicial
education programs, and its judicial administration capacities.
--In Bangladesh, NCSC is working with local justice sector
institutions to strengthen the rule of law and expand access to
legal aid services. In 2023, NCSC's assistance enabled target
courts to dispose of more cases than they received for the
first time since program inception in 2018.
--In Bosnia and Herzegovina and Moldova, NCSC is working with law
faculties and the justice practitioner community on legal
education reform, introducing practice-based learning inside
and outside the classroom so that law students are prepared to
enter the legal profession with the requisite skills to work
ethically as judges, prosecutors, and lawyers--a generational
strategy to fight corruption.
--In North Macedonia, NCSC organized a Continuing Legal Education
(CLE) program to strengthen the country's Bar Association and
its capacity to design, implement, and maintain a functioning
CLE program for defense attorneys.
--Across the globe, NCSC conducts research on the impact of
anticorruption assistance approaches in countering justice
sector corruption and money laundering, and identifies best
practices and lessons learned for effective and responsive
programming. NCSC also created a four-modules educational
program for INL to train international criminal justice actors
on identifying personal and institutional risks that give rise
to bias and discrimination in a justice system.
Our International Visitors Education Program is also an important
part of our efforts to promote justice system reform and to share our
American values. In 2023, NCSC delivered a seven-week educational
program in the U.S. for judges from Indonesia.
In addition, NCSC continues to support other countries in
modernizing judicial systems and improving court administration. We
work to find affordable and innovative technology solutions to help
courts, law schools, and other justice institutions carry out their
mandates and improve institutional performance. One such solution is
our cloud-based portal, which supports the testing and development of
court case management software for judiciaries in Africa, the
Caribbean, and South America. NCSC is partnering with the judiciaries
of Nigeria, Trinidad and Tobago, Barbados, Guyana, Namibia, Argentina,
and Jersey to automate their court systems and thus increase efficiency
and transparency. Our CourTools(c) performance measurement system and
court excellence frameworks have been adapted in other countries,
including Kosovo, for local leaders to assess how court systems are
functioning and to share court performance information with the public.
The U.S.-funded projects that NCSC implements have been successful
in promoting the rule of law worldwide. By doing so, these projects
help support governments in every region of the world with building
stable civil societies rooted in law, tackling corruption, and
ultimately ensuring just outcomes. By supporting rule of law programs
around the world, the U.S. demonstrates our Nation's fervent commitment
to protecting and promoting the rights of all people and to upholding
democracy in every corner of the globe. These programs are vital to
achieving our policy objectives internationally and protecting our
National security and economic interests domestically. On behalf of
NCSC, I urge this subcommittee to continue supporting and expanding
efforts to promote the rule of law in its FY25 State, Foreign
Operations bill. Thank you for your consideration.
[This statement was submitted by Mary C. McQueen, President.]
______
Prepared Statement of The Nature Conservancy
The Nature Conservancy (TNC) is a global nonprofit conservation
organization whose mission is to conserve the lands and waters upon
which all life depends. Our planet faces the interconnected threats of
rapid climate change and rapid biodiversity loss. We have years, not
decades, to address these existential perils. Grounded by decades of
local on-the-ground experience, TNC is maximizing our ability to affect
change by bringing together real-world solutions, policy expertise,
sustainable financing and collaborative partnerships in over 74
countries and in all 50 U.S. States. TNC is grateful to this
subcommittee for its longstanding commitment and investment in
prioritizing conservation and climate in U.S. foreign policy and
assistance.
Five years ago, a seminal study reported that one million plant and
animal species were on the verge of extinction. Between 1980 and 2000,
nearly 250 million acres of tropical forest were destroyed. During the
same time period, 23% of the Earth's land surface was degraded,
reducing productivity of farmland and other ecosystems. In the last 150
years, live coral cover on reefs has been cut in half. By 2035, reefs
as an ecosystem may be functionally extinct. The loss of nature is
undermining food and water security and human health. With a doubling
of human population since 1970, and a fourfold increase in the global
economy and a tenfold increase in global trade, our planet faces a
crossroads. Threats to the natural world are destabilizing communities
and countries, requiring innovative investments in solutions that
benefit both nature and regional security. Investing in conservation
supports U.S. national security and strategic interests around the
world. Leading national security experts agree that global ecological
disruptions threaten U.S. national security and must be prioritized in
policymaking, as evidenced in The Security Threat that Binds Us, a
report developed by the Council on Strategic Risks.
TNC appreciates the leadership of this subcommittee to finance and
sustain conservation investments globally. We applaud the momentum
behind new authorizing legislation spearheaded by your leadership, S.
618, the U.S. Foundation for International Conservation Act, which
underscores the urgency of investing in nature.
The following accounts strategically position the United States to
continue investing and partnering with leading on-the-ground
conservation efforts internationally. America can advance its foreign
policy goals through these foreign aid accounts and policy instruments
at the U.S. Agency for International Development (USAID), and U.S.
Departments of State and the Treasury, as well as through investments
in global natural resource agencies and contributions to multilateral
financial and environmental institutions. These agencies and
institutions include the U.S. Forest Service (International Program),
U.S. Department of the Interior and U.S. Fish and Wildlife Service
(International Programs, Wildlife Trafficking, Multinational Species
Conservation Funds, and Wildlife Without Borders programs) and the
National Oceanic and Atmospheric Administration (International
Program). TNC urges the subcommittee to double down on U.S. leadership
and investment through targeted foreign assistance in FY2025.
USAID Biodiversity Conservation Programs.--USAID is the largest
funder of global conservation in the U.S. government and has been
supporting biodiversity conservation for more than 30 years. In March
2014, USAID launched its first-ever Biodiversity Policy with the vision
to conserve biodiversity for sustainable and resilient development.
This policy helped elevate biodiversity conservation as a core priority
of USAID's global mission. The anticipated update to the Biodiversity
Policy has the potential to deliver on the transformative change
envisioned for a future in which biodiversity is conserved so people
and nature can thrive. We appreciate USAID's focus on achieving nature-
positive, equitable development across societal systems by implementing
the new policy. TNC is partnering with USAID in key biodiversity
hotspots, such as in the Cubango-upper Okavango Basin of Angola, where
critical resources are supporting community-led governance of water
supplies and sanitation services in addition to advancing biodiversity
goals. These efforts upstream are helping sustain the basin and foster
vibrant economies in Angola, Namibia and Botswana. TNC requests the
USAID Biodiversity Conservation Programs be funded at $500 million in
FY25.
USAID Sustainable Landscapes Program.--This program focuses on
countries where globally important forests are threatened and where
degradation of wetlands, peatlands and agricultural land impairs
development and drives emissions. For example, TNC is currently
implementing a USAID Sustainable Prosperous Communities initiative in
Mexico, which promotes sustainable techniques and training for farmers,
ranchers and other rural stakeholders to reduce deforestation and
incentivize sustainable management practices. The initiative is
designed to benefit more than 40,000 people and improve land management
across more than 860,000 acres. The USAID Sustainable Landscapes
program is augmented by two additional USAID investments in the Climate
Adaptation and Clean Energy Program. TNC also supports an additional
investment for the Amazon Fund and related efforts to curb
deforestation and advance deforestation-free supply chains that also
further American business interests. TNC requests $300 million in FY25
for the program along with additional investments in climate adaptation
and clean energy.
U.S. Contribution to the Global Environment Facility (GEF).The
United States' support for the GEF is essential to its efforts to build
a safer, cleaner and healthier world, with direct benefits for American
jobs and prosperity. Every dollar the U.S. invests in the GEF generates
another $40 from other countries and partners. This has helped the GEF
deliver over 5,000 projects in more than 170 countries, several of
which are key U.S. allies. The GEF is lean and effective, with only 2%
of resources being spent on expenses at its headquarters. Over its 32-
year history, GEF has invested $23 billion in direct conservation and
generated an additional $129 billion in co-financing. TNC has been an
implementing partner of the GEF in Africa, Asia, the Caribbean and
Latin America, and we appreciate the critical difference the GEF is
making to addressing the dual crises of biodiversity loss and climate
change. TNC requests the GEF be funded at $150.2 million in FY25 to
contribute towards the annual installment of the U.S. contribution to
the eighth GEF replenishment.
U.S. International Development Finance Corporation (DFC).--The DFC
is advancing U.S. foreign policy interests by mobilizing private sector
capital to help communities most in need. Thanks to the BUILD Act of
2018, supported by the leadership of this subcommittee, the DFC is able
to focus on key drivers of biodiversity loss and climate change such as
infrastructure, habitat fragmentation and natural resources extraction.
Thanks to the DFC, TNC has been able to help developing countries reach
their critical biodiversity and climate targets by overcoming their
debt burdens and lack of access to international capital. Through our
Nature Bonds we are helping countries refinance their debt and generate
new funding to invest in conservation, and in climate mitigation and
adaptation measures. Across the deals completed in the Seychelles,
Belize, Barbados and Gabon, we have engaged with governments, financial
institutions, NGO partners and community stakeholders to ensure that
the project outcomes are a win for both conservation and sound fiscal
management. We look forward to more opportunities to partner with the
DFC and urge Congress to reauthorize the agency. TNC supports the
Administration's requests of $1,008 million in FY25--$245 million for
administrative expenses and $763.4 million in program funds-to be
flexibly allocated among credit subsidy, equity, technical assistance
and other programmatic activities.
Tropical Forest and Coral Reef Conservation Act (TFCCA).--This year
marks the 25th anniversary of this debt-for-nature swap program, a
highly effective fiscal tool that has helped shape American foreign
policy and global commitment to the environment. The TFCCA has brought
to life the simple but innovative idea of converting sovereign debt
owed to the United States into in-country environmental conservation
investments. This has greatly benefited local livelihoods and globally
important biodiversity zones, all while bolstering cooperation and
relationships with key U.S. allies. The latest deal, announced in
December 2023 with Peru, will mobilize nearly U.S. $20 million to
support the conservation of the Peruvian Amazon by empowering
indigenous peoples and local communities to engage effectively in the
management of protected areas and creating economic opportunities that
foster sustainable livelihoods. Such examples abound from this
innovative fiscal policy investment across all the geographies it has
reached. TNC requests $20 million in FY25 for TFCCA.
Science, Finance, and International Cooperation.--Two United
Nations conventions-- the Intergovernmental Panel on Climate Change
(IPCC) and the United Nations Framework Convention on Climate Change
(UNFCCC)--have received implementation funding from the U.S.
government. Since its creation in 1988, the IPCC has received broad
bipartisan support for providing high-integrity science on climate
change. Similarly, the UNFCCC has been the primary space for
policymakers to mount an international effort to tackle these risks.
Continued funding of a modest budget line will signal that America
continues to place importance on climate science and wants a place at
the table in ongoing and future negotiations.
U.S. Contribution to the Green Climate Fund (GCF).--The GCF is a
multilateral fund established in 2010 to help the world's most
vulnerable countries reduce their greenhouse gas emissions and enhance
capacity to respond to climate change by working with a wide range of
partners, including more than 200 private and public sector and
national and international organizations. Through this approach, GCF
de-risks investments by attracting private-sector financing and
mobilizing financing at scale. GCF's investments aim to achieve maximum
impact in the developing world by supporting paradigm shifts in both
climate mitigation and adaptation. As a member of the GCF Board, the
United States is able to demonstrate its leadership on the global
stage. TNC is among the newest accredited entities of the GCF, and we
look forward to greater collaboration and project implementation. TNC
urges Congress to enable the U.S. government to demonstrate its
leadership in combatting the climate crisis by supporting continued
investment in the GCF.
TNC is proud to partner with several U.S. government agencies to
meet the challenges our planet faces. Together with the government of
Mongolia, we recently announced Eternal Mongolia, the largest land deal
we have entered in to date. Eternal Mongolia will enable new
conservation protections across nearly 35 million acres--an area the
size of Iowa--comprising intact grasslands, forests, deserts, wetlands
and rivers. Through a proven model called Project Finance for
Permanence, Eternal Mongolia will unlock $198 million of new
conservation investment over the next 15 years. This is TNC's third
PFP, and the first to be part of Enduring Earth, a global initiative to
accelerate conservation worldwide.
In conclusion, we are working to connect efforts to protect nature
and limit climate change globally. We need to rethink economic systems
so that they value nature. We must produce food in ways that restore
nature. We need to recognize the leadership of Indigenous peoples and
local communities worldwide. Strengthening existing global biodiversity
and climate change commitments in the face of crises affecting nature
and people must be a core component of U.S. foreign policy and aid. TNC
sincerely appreciates the leadership of this subcommittee and urges it
to continue investing in our shared priorities through conservation and
climate foreign assistance programs.
[This statement was submitted by Nav Dayanand, Associate Director,
Legislative Affairs.]
______
Prepared Statement of The ONE Campaign
Chairman Chris Coons, Ranking Member Lindsey Graham, and members of
the Senate State, Foreign Operations, and Related Programs (SFOPS)
Appropriations subcommittee, The ONE Campaign is honored to provide you
with the following testimony as an outside witness. The ONE Campaign is
a global organization that advocates for the resources needed to create
economic opportunities and healthier lives in Africa. On behalf of The
ONE Campaign, I appreciate the opportunity to raise the importance of
continuing core U.S. investments in long-term development priorities,
especially those that impact Sub-Saharan Africa, that are funded
through the U.S. State Department, U.S. Agency for International
Development (USAID), and the U.S. Treasury Department.
Africa is young, vibrant, and the fastest growing continent on the
planet.\1\ It is also rich in natural resources, with a strong culture
of entrepreneurship and innovation, and is the world's largest free
trade area by the number of member countries. Many African countries
are challenged by high levels of debt that are outpacing how much they
are receiving in external sources, while burdened by many economic,
health, and conflict related threats. Analysis from the ONE Campaign
found that, in 2024, $50 billion will flow out of developing countries,
many of which are in Africa. Meanwhile, and as well covered by this
subcommittee, Chinese and Russian investments only continue to
proliferate throughout Africa. For all of these reasons, it is critical
that the U.S. continues its hugely impactful investments in developing
countries, especially in Africa.
One of the U.S.' greatest leadership legacies is its investment in
global health. One investment of particular significance is Gavi, the
Vaccine Alliance (Gavi), managed by USAID. Since 2000, Gavi has
partnered with 40 countries in Africa, providing 438 million children
with routine immunizations, saving 11.1 million lives--most of them
infants.
But far too many children are still dying from vaccine-preventable
diseases. Continuing to grow the US investment in Gavi, which will help
leverage other donors, is imperative to saving the lives of vulnerable
children. Gavi uses most of its funding to purchase vaccines that fight
19 common and deadly infections including pneumonia, hepatitis, and
measles, on behalf of lower-income countries; bulk purchasing allows
Gavi to access lower prices than countries would be able to negotiate
on their own.
Gavi continues to innovate by improving access to new vaccines,
such as the currently unfunded rollout of the world's first malaria
vaccine, including the RTS,S malaria vaccine, which was borne from the
groundwork of the Walter Reed Army Institute of Research. Gavi does all
this while strengthening the health systems in recipient countries.
Gavi also works closely with private sector partners to lower prices
for vaccines globally. A key aspect of Gavi's model and success is the
mandate for recipient countries to finance a portion of all vaccine
costs based on their ability to pay until they are fully financing
their own programs, leading to sustainable immunization programs. As a
result, 19 countries have now graduated from Gavi and fully self-
finance their routine immunization programs.
But the battle hasn't yet been won--20.5 million children missed
out on life-saving vaccinations in 2022 alone. Gavi faces the challenge
of maintaining its success while also reaching these children and
catching up from other disruptions, and also expanding access to new
innovations like malaria vaccines. Increasing the US' contribution to
Gavi in FY2025 would uniquely enable the US to take the lead on
increasing access to this first-of-its-kind vaccine and catch up the
millions of children who have been left behind. Therefore, the ONE
Campaign is requesting $340 million in funding for Gavi in FY2025 and
that USAID's Maternal and Child Health program be increased
commensurately.
There is perhaps no better example of the power of US foreign aid
than our work to end the global HIV/AIDS crisis, which took more than
20 million lives in Africa between 2000-2022. To put in perspective,
this is equivalent to the populations of Michigan and North Carolina
put together. Since 2003, the President's Emergency Plan for AIDS
Relief (PEPFAR)--managed by the State Department and implemented by
seven other departments and agencies--has saved more than 25 million
lives, provided life-saving antiretroviral treatment to nearly 20.5
million patients, and enabled more than 5.5 million babies to be born
HIV-free to HIV-positive mothers.
Meanwhile, our investments in the Global Fund to Fight AIDS,
Tuberculosis, and Malaria (Global Fund)--a partnership between
governments, civil society, the private sector, and affected
communities to collectively fight to end the risk of HIV/AIDS,
tuberculosis (TB), and malaria--have also been lifesaving. Since the
Global Fund was founded in 2002, its programs have helped save 59
million lives and cut the combined death rate from HIV, TB, and malaria
by more than half. In countries where the Global Fund invests, AIDS-
related deaths have been reduced by 72%, TB deaths by 16%, and malaria
deaths by 27%. In 2022 alone, the Global Fund provided 24.5 million
people with antiretroviral therapy for HIV, treated 6.7 million people
for TB, and distributed 219.7 million mosquito nets to prevent malaria.
US investments to the Global Fund are capped at 33% of the total,
catalyzing a remarkable response from other donors, who pledge to match
the contribution at a two-to-one ratio. But our fight against these
diseases is far from over. HIV remains the leading cause of death
globally among women of reproductive age. Sub-Saharan Africa bears the
brunt of this, where two-thirds of all people living with HIV
reside.\2\ TB continues to be a leading cause of death, with an
estimated 10.6 million people falling ill from the disease in 2022
alone.\3\ Malaria infected an estimated 249 million people in 2022,
with 94% of the cases in Africa, where the vast majority of deaths were
in children under 5 years of age.\4\ This is why ONE is requesting
$6.375 billion in FY2025 for HIV/AIDS programs, provided as $6.05
billion for the State Department's HIV/AIDS programs, including $1.65
billion for the Global Fund and $4.395 for PEPFAR, as well as $330
million for USAID HIV/AIDS programs.
Beyond investments in global health, the US has been a leader in
helping developing countries pull out of poverty and better serve their
citizens through long-term development investments. The Development
Assistance (DA) account, implemented by USAID, is one of the primary
bilateral development accounts focused on poverty reduction and the
growth of self-reliant, resilient, and democratic societies. DA
investments help countries and communities pull out of poverty; fight
hunger and malnutrition; address root causes of migration; improve
education; increase access to water, sanitation, and hygiene (WASH);
prevent conflicts and encourage stabilization; and spur economic
growth. With DA funds, USAID is able to implement several key
strategies required by Congress, including the Global Food Security
Strategy and Global Water Strategy. This account is also critical to
Africa, as it supports many critical economic and social development
priorities, including, but not limited to, Prosper Africa and Power
Africa.
Given the increasing humanitarian suffering the world is facing,
the ONE Campaign has been strongly supportive of, and is grateful for
Congress' support for, the robust humanitarian aid levels included in
the recently passed FY2024 appropriations law and the FY2024 national
security supplemental. Yet, it is imperative that we maintain our
support for long-term development priorities, as we risk countries
sinking further into the cycles of crisis if there are not continued
and strengthened investments that enable countries' resilience and
stability. As such, we are requesting that the Committee provide no
less than $4.4 billion for DA at USAID in FY2025.
We know that support for economic development is crucial to helping
countries stand on their own. The International Development Association
(IDA) arm of the World Bank serves the world's 75 poorest countries, 39
of which are in Africa, helping to bring clean water, electricity, and
sanitation to hundreds of millions of people. Through zero- to low-
interest loans and grants, they have helped numerous countries develop
their economies without being forced to take on unpayable debts. They
also provide rapid crisis funding for countries experiencing economic
shocks and environmental disasters. In Nigeria, a country that will
soon have one of the world's largest youth populations, economic
stagnation and a significant debt burden have made it extremely
difficult for the government to invest in sectors that create growth
and opportunity. Over the past 9 years, IDA funding has helped to drive
important advancements like reaching over 7 million people with new or
improved electricity services and providing thousands with life skills
and vocational training. Nigeria is now both an IDA donor and recipient
country, contributing for the first time during IDA19.\5\
U.S. contributions to IDA20 through the Treasury Department helped
support efforts to drive a resilient recovery for the poorest countries
following the COVID-19 pandemic and restore progress toward the 2030
development goals. Since 1960, 36 countries have graduated from being
supported by IDA to becoming IDA donors. With nearly 85% of IDA
operations and commitments during IDA19 (2020-2022) achieving their
objectives, IDA is among the world's most efficient and effective
vehicles for international development. Every $1 in donor contributions
translates to over $3.50 of financing support. As IDA heads into its
next replenishment for IDA21 later this year, it is imperative that the
U.S. assert our historic leadership within the body in the next fiscal
year. That is why we are asking the Committee to provide no less than
$1.43 billion for an IDA contribution through the U.S. Treasury
Department in FY2025.
U.S.-led international development programs like the ones mentioned
above are not just aligned with U.S. values, they're also a good
investment in our economy and national security, all for less than 1%
of the National budget. As you go through your FY2025 process, we urge
you to prioritize meaningful investments in foreign assistance that
bring us closer to a world without poverty or preventable disease. We
appreciate your leadership on these issues and consideration of our
requests. We look forward to working together with you to make this
future a reality.
---------------------------------------------------------------------------
\1\ ``Global Issues: Population.'' United Nations. Accessed May 15,
2024. https://www.un.org/en/global-issues/
population#: :text=Africa%3A%20fastest%20growing%20continent&text=Africa
%20has%20the%20highest%20rate,projected%20to%20double%20by%202050.
\2\ ``The Global HIV/AIDS Epidemic.'' Kaiser Family Foundation,
July 26, 2023. https://www.kff.org/global-health-policy/fact-sheet/the-
global-hiv-aids-epidemic/.
\3\ ``Tuberculosis.'' World Health Organization. November 7, 2023.
https://www.who.int/news-room/fact-sheets/detail/tuberculosis.
\4\ ``Malaria.'' World Health Organization. December 4, 2023.
https://www.who.int/news-room/fact-sheets/detail/
malaria#: :text=Globally%20in%202022%2C%20there%20were,580%20000)
%20of%20malaria%20deaths.
\5\ ``Stories of Impact: IDA, the World Bank's Low Income Fund in
Africa,'' The ONE Campaign, April 2024, accessed May 15, 2024, https://
cdn.one.org/pdfs/IDA_Case_Studies_2024.pdf.
[This statement was submitted by Ndidi Okonkwo Nwuneli, CEO/
President.]
______
Prepared Statement of the Pacific Salmon Commission
Mr. Chairman, and Honorable Members of the Committee, I am Ron
Allen, Tribal Commissioner and Chair for the U.S. Section Budget
Committee of the Pacific Salmon Commission (PSC). The U.S. Section
prepares an annual budget for implementation of the Pacific Salmon
Treaty. Funding comes from the Departments of State, Commerce, and
Interior. The integrated budget details program needs and costs for
Tribal, Federal, and State agencies involved in the Treaty.
Department of State funding in support of implementing the
Pacific Salmon Treaty is part of the International Fisheries
Commissions line item. The FY 2023 funding level was
$5,600,000. The U.S. Section recommends a funding level of
$5,500,000 for FY 2025, which is a $100,000 decrease. These
costs provide essential support to implement the revised
chapters of the annex to the Treaty.
The Department of State provides funding for the dues to operate
the bilateral Pacific Salmon Commission Secretariat office in
Vancouver, British Columbia. The United States and Canada kept the dues
constant for 11 years. The U.S. Section and the Canadian Section
recognized that an annual increase in dues is needed to maintain
operations over the next 10 years. The U.S. Section requested funding
level is sufficient to maintain Secretariat operations. Canada is
expected to match the increase in dues. The Commission's Finance &
Administration Committee works closely with the Secretariat staff to
keep costs in check. The Secretariat faced challenges in recent years
to ensure the operation of test fisheries necessary for the management
of Fraser River sockeye and pink fisheries as outlined in Annex Chapter
4 of the Treaty. Declines in the return of Fraser River sockeye and
changes in the Canadian Use of Fish Policy have impacted the viability
of the test fisheries.
The Secretariat faces challenges regarding funding for the pension
liability as the Secretariat staff ages and retires. Our section urges
the Department of State to continue covering this liability outside the
dues structure, consistent with other International Fishery
Commissions.
The Department of State provides funding, through an inter-agency
agreement, with Department of Commerce, National Marine Fisheries
Service, to support United States participation in the annual meeting
process and to support staffing of the U.S. Section office. A hallmark
of the PSC process is the input from affected fishing interests from
Alaska to Washington, Oregon, and Idaho. Maintaining the funding at
current levels is essential to address these challenges.
Funding to support activities under the Pacific Salmon Commission
comes from the Departments of Interior, State, and Commerce. The U.S.
Section can provide an additional budget summary and details to the
Committee as required. Adequate funding from all three Departments is
necessary for the United States to meet its Treaty obligations. The
funds are needed for critical data collection and research activities
related to the implementation of the Treaty and are used in cooperative
programs between Federal, State, and Tribal fishery agencies and the
Department of Fisheries and Oceans in Canada. The commitment of the
United States is matched by the commitment of the Government of Canada.
Mr. Chairman, the United States and Canada established the Pacific
Salmon Commission, under the Pacific Salmon Treaty of 1985, to conserve
salmon stocks, provide for optimum production of salmon, and to control
salmon interceptions. After more than thirty years, the work of the
Pacific Salmon Commission continues to be essential for the wise
management of salmon in the Pacific Northwest, British Columbia, and
Alaska. For example, upriver bright fall Chinook salmon from the
Hanford Reach of the Columbia River are caught in large numbers in
Alaskan and Canadian waters. Tribal and non-Tribal fishermen harvest
sockeye salmon from Canada's Fraser River in the Strait of Juan de Fuca
and in Puget Sound. Canadian trollers off the west coast of Vancouver
Island catch Washington coastal and Puget Sound Chinook and Coho
salmon. In the Northern Boundary area between Canada and Alaska, fish
from both countries are intercepted by the other country.
The Commission provides a public forum to ensure cooperative
management of salmon populations. The United States and Canada
successfully concluded lengthy negotiations to improve management,
building on and adjusting the coastwide abundance-based management
regime for Chinook salmon established in the 1999 agreement. The
revised Coho Chapter also continues to build on a framework for
abundance-based management. The revised Annex Chapters for Chinook,
Coho, Chum, Transboundary and Northern Boundary fisheries will be in
force for the next 10 years. The United States and Canada completed a
revised Fraser River Sockeye and Pink salmon chapter in 2020, which
will also be in force through 2028. The U.S. and Canada are beginning
negotiations for revised Annex Chapters. The negotiations will require
additional resources in future years for the parties to participate in
the negotiation process. The U.S. Section will provide cost estimates
as the process unfolds.
Before the Treaty in 1985, fish wars often erupted with one or both
countries overharvesting fish that were returning to the other country,
to the detriment of resource sustainability. At the time the Treaty was
signed, Chinook salmon were in a severely depressed state because of
overharvest in the ocean as well as environmental degradation in the
spawning rivers.
Under the Treaty, both countries committed to rebuilding the
depressed runs of Chinook stocks, and they recommitted to that goal in
1999 when adopting a coastwide abundance-based approach to harvest
management. Under this approach, harvest management will complement
habitat conservation and restoration activities being undertaken by the
States, Tribes, and other stakeholders in the Pacific Northwest to
address the needs of salmon listed for protection under the Endangered
Species Act. The 2018 Chinook Chapter continues these commitments. The
revisions to the Chinook Chapter will continue to build on the progress
made in previous agreements. The combination of these efforts is
integral to achieving success in rebuilding and restoring healthy,
sustainable salmon populations.
Finally, I ask you to consider the fact that the value of the
commercial harvest of salmon subject to the Treaty, managed at
productive levels under the Treaty, supports the infrastructure of many
coastal and inland communities. The value of the commercial and
recreational fisheries, and the economic diversity they provide for
local economies throughout the Pacific Northwest and Alaska, is
immense. The Commission recently funded an economic study of fisheries
that has determined this resource creates thousands of jobs and is a
multi-billion-dollar industry. The value of these fish to the twenty-
four treaty Tribes in Washington, Oregon, and Idaho goes far beyond
their monetary value, to the cultural and religious lives of Indian
people. A significant monetary investment is focused on salmon due to
the listings of Pacific Northwest salmon populations under the
Endangered Species Act. Given these resources, we can continue to
utilize the Pacific Salmon Commission to develop recommendations that
help with the development and implementation of solutions for
minimizing impacts on listed stocks. We continue to work toward the
true intent of the Treaty, and with your support, we will manage this
shared resource for mutual enhancements and benefits.
Mr. Chairman, that concludes my written testimony submitted for
consideration by your committee. I want to thank the Committee for the
support that it has given the U.S. Section in the past. Please feel
free to contact me, or other members of the U.S. Section to answer any
questions you or other Committee members may have regarding the U.S.
Section of the Pacific Salmon Commission budget.
Thank you.
[This statement was submitted by W. Ron Allen, Chair.]
______
Prepared Statement of PEPFAR
As a family physician, a faculty member in Family Medicine at
Boston University, a former chair of the advisory board for the Center
for Global Health Initiatives at the American Academy of Family
Physicians, and the Immediate Past President of the North America
region for the World Organization of Family Doctors (WONCA), I am
writing in support of a report language request that the Committee
direct the Office of the Global AIDS Coordinator to provide to the
Committee an estimate of the current proportion of PEPFAR funding that
goes to existing integrated health services for HIV, other priority
health conditions, and outbreak prevention and response, and to provide
an Administration target for increasing this proportion. This request
would also seek that the Committee further directs the program to
report this information not later than 90 days after the date of
enactment of the act.
I have directly worked in primary care development in Vietnam,
Laos, Cambodia, Myanmar and Lesotho in southern Africa, and most
recently just completed working as the Executive Director of the
Primary Health Care Performance Initiative (PHCPI)--a partnership
between the Bill & Melinda Gates Foundation, the World Health
Organization, the World Bank, the Global Fund, UNICEF, Ariadne Labs and
Results for Development--trying to better measure primary health care
in low and middle income countries.
In these contexts, validated by the experience of many American
primary care colleagues engaged in strengthening primary care and
frontline health services around the world, I have personally seen how
valuable programs targeting priority diseases, such as PEPFAR, have
been--and also how much promise has yet to be realized.
In settings where patients may only access service settings
addressing care for a single issue or disease, the power of these
programs to improve overall morbidity and mortality ends up limited, as
they are unable to address the range of health issues that most
patients face--and simultaneously also fail to achieve the best
possible outcomes for the priority disease at issue, in this case HIV/
AIDS. In addition, in places where some integrated services are brought
into single issue service settings, you may only experience the
benefits of these programs if have the priority disease in question,
such as HIV.\1\ Without a doubt, strong frontline primary health care
services can typically address more than 80% of a person's health
needs, reduce health inequities, and provide some of the greatest
overall improvements in population-based morbidity and mortality.\2\ In
order to get the greatest overall benefit from PEPFAR program
investments, it therefore follows that these disease-based services
should be delivered in frontline integrated primary care settings in
order to improve both non-HIV and HIV outcomes.
PEPFAR itself has recently recognized this fact. In PEPFAR's 2023
COP/ROP plan guidance, accelerating this type of integration is
identified as a key priority: \3\
Page 57: PEPFAR recognizes that ``accelerating integration of
health services and systems is key to sustaining the HIV
response . . . Integrated health services, when based on
strong primary care and essential public health functions,
strengthen people-centered health systems and contribute to the
best use of resources.''
``Where appropriate--and in collaboration with national
governments and other donors--Operating Unit teams should
support accelerating integration of HIV service delivery into
existing local health and social service systems (which could
include primary care as mentioned above) . . . ''
In addition, PEPFAR recognizes how this approach is also essential
to meaningfully strengthening human resources for health, so badly
needed around the world and especially in Africa as the WHO projects a
shortage of more than 6 million health workers across Africa by 2030
(an increase of 45% in this deficit since 2013), undermining access to
and provision of health services across the region: \4\
Page 63: ``PEPFAR HRH support for HIV services should be
integrated within country systems for primary health care,
rather than provided in standalone models, whenever possible.
This shift to greater integration of PEPFAR's health workforce
support into country systems will allow PEPFAR investments to
be leveraged toward strengthening partner-country HRH capacity
for delivering high quality primary health care services and
sustaining the impact of HIV investments. Integrated care
delivery teams, task-shifting, and expansion of community
health worker's roles to include wrap-around services for
people living with HIV should be considered.''
PEPFAR acknowledges the importance of such integrated care to
overall improvements in morbidity and mortality:
Page 84: ``Person-centered care for older adults facilitates
treating multiple conditions at once, which can reduce
unnecessary visits--potentially shortening facility waiting
times. This care model also aligns PEPFAR priorities with MOH
priorities for primary care and noncommunicable diseases.''
Multiple outside entities and articles have similarly identified
the importance of integrating PEPFAR service delivery into integrated
settings. For instance, the Kaiser Family Foundation published a policy
report looking across four sustainability indicator areas (commitment
to HIV, basic health system, economic, and commitment to health
indicators) and found that PEPFAR countries scored, on average, highest
on ``commitment to HIV'' and lowest on ``basic health system''
measures. Overall, PEPFAR countries were most likely to meet or exceed
commitment to HIV indicators (66%), which assess how fully countries
have adopted internationally-recommended policies for addressing the
epidemic. By contrast, only 17% of basic health system measures were
met or exceeded. For the other two indicator areas--economic and
commitment to health--PEPFAR countries met or exceeded 29% and 30% of
targets, respectively. This suggests that the areas of focus for
promoting sustainability rest largely in the realm of further
strengthening the basic health system and in addressing economic
vulnerability.\5\
Further research backs this up, confirming that delivery of HIV
services in integrates care settings improves both non-HIV and HIV
outcomes. In PLOS Medicine, a systematic review and meta-analysis
looking at the existing scientific evidence on the impact of service
integration on the HIV care cascade, health outcomes, and cost-
effectiveness found that integration of HIV services and other health
services tends to improve health and health systems outcomes, offering
a valuable strategy to boost the sustainability of the HIV response and
contribute to the goal of ``ending AIDS by 2030.'' Of note, across 32
studies, uptake of other (non-HIV) health services was significantly
higher in integrated programs. Treatment success for diseases or
conditions other than HIV, measured in 21 studies, was significantly
higher in integrated programs. In addition, as measured in 10 studies,
costs of basic HIV and non-HIV services tended to be lower in
integrated programs.\6\ Specifically, HIV care outcomes were better in
integrated settings, including uptake of HIV testing and counseling,
ART initiation coverage, time until ART initiation, retention in HIV
care and viral suppression.
A recent viewpoint published in The Lancet including an author from
USAID's Office of HIV/AIDS who also works on PEPFAR reinforced these
lessons, stating ``Ending the HIV epidemic relies in part on
integrating stand-alone HIV programming with primary health-care
platforms to improve population-level health and ensure sustainability.
Integration of HIV and primary health care services in sub-Saharan
Africa improves both outcomes.'' In this piece, the authors call for
re-thinking HIV service delivery, calling for ``a shift away from
vertically siloed, donor-dependent HIV programmes that operate
alongside established, sustainable primary health-care systems.
Integrated HIV and primary health-care programmes in LMICs promise to
improve population-level health and to sustain the gains of PEPFAR.
This fundamental change in the structure of global health programmes
requires rethinking PEPFAR's existing HIV programming and funding
models, including person-centred health services integration, health-
care workforce reform, and strategic financing.'' \7\
Unfortunately, without Congressional guidance, PEPFAR seems
unlikely to dedicate meaningful funds to such an effort. USAID has
recently embarked on an effort under the leadership of Dr. Atul Gawande
to improve USAID's work on primary health care with the advent of the
USAID Primary Impact program seeking to utilize many metrics based on
work that I previously led at PHCPI.\8\ USAID does not yet seem to be
funding this with significant support in relation to its global health
budget--in part because it has not yet been defined as a Congressional
priority--and such an effort remains limited in scope and success until
increased funding can be dedicated to it in the future.
PEPFAR may suffer a similar fate without Congressional action, as
entrenched interests may seek to reduce the expansion of funding to
support HIV care delivered through integrated health services. To
counter this, multiple organizations have signed onto a letter to the
Committee requesting that the State and Foreign Operations
subcommittees of Appropriations require PEPFAR to provide the following
information on how it is planning to increase support for integration:
the Office of the Global AIDS Coordinator should provide a target for
increasing the proportion of PEPFAR funding that goes towards broad-
based service delivery covering HIV, other priority health conditions
in the community, and outbreak prevention and response in existing
integrated health services.\9\
This information is necessary to hold PEPFAR accountable in
implementing its own guidance on this issue and monitor its ongoing
progress. Only though this type of action can the program be
successfully driven to make the necessary transformational changes to
bring PEPFAR well into the next millennium and maximize its gains on
investment.
Moving towards delivery of HIV care in integrated service settings
can help meet the needs of local populations, promote effective
coordination with local partners and governments to meet these needs,
support more effective integration of health systems strengthening
activities and reduce health system fragmentation across the full
spectrum of global health programming, contribute to reducing health
disparities, and save costs through greater efficiencies in local
health systems by funding integrated activities. Most importantly,
integration is a win-win: moving HIV care into integrated settings will
save more lives from both HIV and non-HIV health issues.
---------------------------------------------------------------------------
\1\ Egilman D, Bird T, Mora F, Druar N. Gets AIDS and survive? The
``perverse'' effects of aid: addressing the social and environmental
determinants of health, promoting sustainable primary care, and
rethinking global health aid. Int J Occup Environ Health. 2011 Oct-
Dec;17(4):364-82. doi: 10.1179/107735211807523972. PMID: 22069935.
\2\ Starfield B, Shi L, Macinko J. Contribution of primary care to
health systems and health. Milbank Q. 2005;83(3):457-502. doi: 10.1111/
j.1468-0009.2005.00409.x. PMID: 16202000; PMCID: PMC2690145.
\3\ PEPFAR 2023 Country and Regional Operational Plan (COP/ROP)
Guidance for all PEPFAR-Supported Countries https://www.state.gov/2023-
country-and-regional-operational-plan-guidance-and-technical-
considerations/.
\4\ https://www.afro.who.int/news/chronic-staff-shortfalls-stifle-
africas-health-systems-who-study
#: :text=It%20is%20projected%20that%20the,in%20Africa%20has%20daunting%2
0implications.
\5\ Kates J, Moss K, Oum S, Rouw A, Nandakumar A. Sustainability
readiness in PEPFAR countries. Global Health Policy. Kaiser Family
Foundation. 2023 https://www.kff.org/global-health-policy/issue-brief/
sustainability-readiness-in-pepfar-countries/.
\6\ Bulstra CA, Hontelez JAC, Otto M, Stepanova A, Lamontagne E,
Yakusik A, et al. (2021) Integrating HIV services and other health
services: A systematic review and meta-analysis. PLoS Med 18(11):
e1003836. https://doi.org/10.1371/journal.pmed.1003836.
\7\ Goldstein D, Ferris R, Phelps BR, Minior T. Integrating global
HIV services with primary health care: a key step in sustainable HIV
epidemic control. Lancet Glob Health 2023 https://doi.org/10.1016/
S2214-109X(23)00156-0.
\8\ https://www.usaid.gov/sites/default/files/2024-02/
FINAL%20PI%20TWO%20PAGER.pdf.
\9\ https://www.fundforglobalhealth.org/pepfar-integration-with-
primary-care.
[This statement was submitted by Jeffrey F. Markuns, MD, EdM,
FAAFP.]
______
Prepared Statement of Project HOPE
regarding fiscal year 2025 appropriations for global health and
humanitarian aid
Thank you, Chairman Coons, Ranking Member Graham, and members of
the subcommittee for your strong support of U.S. leadership in global
health and humanitarian assistance and for the opportunity to submit
testimony. As you are aware, the world looks to us and often follows
our lead in the realm of global health and humanitarian assistance.
U.S. leadership has played a critical role in addressing global health
and humanitarian challenges around the world, saving millions of lives.
Investments in global health and humanitarian assistance have made the
world--and the United States--safer, healthier, and more prosperous.
At Project HOPE, we see firsthand the incredible impacts these
lifesaving resources have on families and communities, such as when a
mother and child emerge through childbirth healthy or when a family
finds new shelter quickly after a hurricane. As a global health and
humanitarian organization, Project HOPE provides relief and support in
30 countries around the world. We achieve our outcomes through support
from private donations paired with U.S. government resources.
I want to thank the Committee for its steadfast support for global
health and humanitarian assistance in the most recent, and quite
challenging, Fiscal Year 2024 (FY24). I want to thank you for the
continued base funding for humanitarian assistance. And while we were
sorry to see some key accounts significantly cut, namely Global Health
Security, HIV/AIDS, TB, and Malaria, the remainder of the Global Health
Accounts were maintained, which is appreciated.
Given the importance of every aspect of global health and
humanitarian assistance, we were quite pleased with the creation of the
new Global Health Workforce line item. While the initial funding is at
a modest $10 million, we hope it can catalyze key actions to strengthen
the health workforce. As a dedicated funding line, it will initiate the
creation of policies and accounting pathways within USAID to better
track and inform USAID's vital efforts to strengthen the health
workforce globally.
Finally, I also want to thank the Committee for its support for the
National Security Supplemental which provided crucial increases in
humanitarian funding for food, health care, water, and shelter. This
support helps bridge the burgeoning gap between donor resources and the
unprecedented scale of humanitarian need around the world.
going forward: requesting continued and sustained support of global
health accounts
We hope you can build on these investments in Global Health for
Fiscal Year 2025. U.S. global health and humanitarian programs
reinforce U.S. foreign assistance priorities to alleviate suffering,
reduce poverty, achieve gender equality, promote human rights, and
improve national and global security by supporting stable, resilient,
and democratic communities. Sustained U.S. investment in global health
is crucial for building on existing achievements and accelerating
progress toward the collective global goal of ensuring healthy lives
and promoting well-being for all.
Today, I write to express support of U.S. investments in global
health accounts. Restoring funding to the three accounts that were cut
in FY24 should be the highest priority. With more than one million
American lives lost to the COVID-19 pandemic, the need to restore
funding to global health security is undeniably and tragically self-
evident. Doing so will minimize the impact of the next pandemic and
save lives and livelihoods, as well as protect U.S. national security
interests. In addition, we ask to restore funding to HIV/AIDS,
tuberculosis, and malaria, if not through the Global Fund, then
bilaterally. There is no better value for money and health impact than
these investments. Further, any reduction in the fight against these
infectious diseases will invite their dramatic resurgence. I will walk
through each of these further, but I must begin with the staff that
supports every health investment.
support health workers through every program
The world faces a severe global health workforce shortage. The WHO
estimates, even with current progress, the world will still face a
shortfall in health workers of 10 million, including in the United
States, as we regularly recruit a significant percentage of the U.S.
health workforce from the developing world. Supporting frontline health
workers is key to achieving U.S. global health goals at the local,
community, national, and global level.
I am pleased by the inclusion of the new, dedicated budget line
item for ``Global Health Workforce'' of $10M at USAID in the FY24
budget bill that Project HOPE and our partners have worked so hard to
achieve. Many thanks to our Congressional champions. Next year, it is
imperative to increase this amount to at least $20M as requested by the
Administration. We hope this funding will be used with precision to
play at catalytic role in driving improvements in the health workforce
until U.S. funding can be increased to have scalable impact.
We are looking forward to working with USAID and partners to
further strengthen direct support for health workers, as they serve
their communities around the world. In Sierra Leone, for example,
Project HOPE helped launch a baccalaureate and graduate degree program
in Neonatal Nursing and Pediatrics, which has equipped the next
generation of neonatal nurses with the skills needed to provide
advanced nursing care to newborns. And in a crisis setting, Project
HOPE has supported 138 health care facilities in 23 oblasts in Ukraine
since the start of the 2022 invasion, with support from USAID's Bureau
for Humanitarian Assistance. This support included medicines, medical
supplies, insulin, needles, hygiene kits, emergency health kits,
surgical kits, and children kits (worth more than $8.5 million). As
part of these efforts in Ukraine, in 2023, Project HOPE trained 3,400
health workers, operated 36 mobile medical units that treated more than
195,000, and provided mental health support to more than 71,000 people.
restore funding to global health security
We were disappointed to see a cut in funding for global health
security during the final FY24 negotiations. U.S. investments in global
health security are working and making progress to bolster the
capabilities of partner countries to detect, prevent, and respond to
infectious disease threats and build sustainable systems as lessons
learned from the COVID-19 pandemic. Now is not the time to reduce
investments, return to modes of panic or scarcity, or neglect funding
trends for global health security.
We are asking to restore funding in global health security at the
Department of State and the U.S. Agency for International Development
to the previous level of $900M. Much-needed investments include USAID's
bilateral global health security programming, as well as dedicated
funding for the Coalition for Epidemic Preparedness Innovations and the
Pandemic Fund. These investments all together help build partner
country capacity to detect, prevent, and respond to infectious disease
threats before they become epidemic and pandemic threats--protecting
lives and livelihoods in the United States and around the world.
Project HOPE responded to the pandemic in many ways and saw
firsthand how investing now will pay dividends during the next
pandemic. In partnership with the Center for Human Rights and
Humanitarian Studies at the Watson Institute of Brown University,
Project HOPE developed a COVID-19 preparedness and response curriculum
to support the rapid scaling up of response efforts, which reached
people in 94 countries. As part of that effort, Project HOPE helped
train more than 151,000 health care workers and frontline personnel
worldwide by the end of 2021. Our team delivered more than 18 million
pieces of personal protective equipment and provided surge support in
health systems overwhelmed by COVID-19 patients. To tackle burnout and
mental health stigma, Project HOPE also trained over 120,000 health
care workers in 41 countries through the Mental Health and Resiliency
training program to provide essential personnel with stress management,
coping, and self-care skills.
restore funding to hiv/aids, tuberculosis, and malaria
Funding for AIDS, Tuberculosis and Malaria took a significant hit
in the recent budget, presumably to meet the lower matching requirement
within the Global Fund. However, those resources were critical to the
global efforts against these three devastating diseases. These diseases
have proven their ability to resurge in many circumstances when our
vigilance and proactive prevention measures faltered. Without continued
U.S. leadership and support, these diseases will undoubtedly bounce
back. This funding should be restored to at least its FY2023 level to
be utilized by the Global Fund or, if the required matching is not met,
the US bilateral programs. Namibia, for example, has the sixth highest
prevalence of HIV in the world, with around 8% of the population living
with HIV (approximately 176,000 people ages 15-64). HIV is the leading
cause of death in the country. Project HOPE is working in Namibia to
mitigate the impact of HIV through ensuring access to quality health
care for vulnerable populations. In one effort started in 2013, with
funding through PEPFAR, we are working with the government to provide
treatment, care, and support to vulnerable groups living with or
affected by HIV. We focus on children first--providing services that
are responsive to their needs and their family and community contexts.
funding for critical humanitarian assistance
Humanitarian challenges, both man-made and natural disasters, have
increased by 260% in just the last 4 years. Almost all of these have
implications for U.S. national security as well as a strong moral
imperative. U.S. engagement needs to extend beyond financial
contributions, utilizing our diplomatic and strategic capacity when
appropriate. The American people expect their government to help those
in the deepest need. While the U.S. has continued to be generous in its
financial support, the requirement to continually seek 'supplemental'
funding hamstrings both our stature and ability for impact. Therefore,
we recommend a humanitarian base funding of no less than $4.85 billion
for the International Disaster Assistance Account (IDA), while
recognizing there may still be a need for supplemental funding as well.
IDA resources help create stability and reduce suffering in countries
around the world. And again, we know what a tremendous impact the U.S.
can have by providing supplemental funding to those in need. In
neighboring Haiti, for example, Project HOPE among other humanitarian
organizations, with support from USAID's Bureau for Humanitarian
Assistance, has been able to utilize supplemental funds to support the
provision of primary health services; improve water, sanitation, and
hygiene; provides protection through mental health and psychosocial
support programs; and strengthens gender-based violence case management
and referral pathways to vulnerable Haitians fleeing the conflict in
their home country.
conclusion
I thank the Appropriations Committee for its leadership in global
health and humanitarian assistance, particularly given the constrained
funding environment. I ask the Committee to support health workers
through all global health programs, restore funding to global health
security and HIV/AIDS, tuberculosis, and malaria programs to maintain
progress achieved so far, and to ensure preparedness for future
threats. As we continue to face unprecedented global needs, we also
support investments to further grow the base for humanitarian
assistance, ensure sustained support, and avoid drastic funding swings
in protracted crises. We also hope that you will continue to support
supplemental funding as needed to address unforeseen or unfunded
crises.
[This statement was submitted by Rabih Torbay, President and Chief
Executive Officer.]
______
Prepared Statement of Pure Earth
Chairman Coons, Ranking Member Graham, Members of the subcommittee,
on behalf of Pure Earth I am honored to submit testimony in support of
United States leadership to help end childhood lead poisoning globally.
We ask that the Committee direct $4 million in FY 2025 foreign
operations funding to support State Department and U.S. Agency for
International Development efforts to address lead exposure around the
world.
We all know that lead exposure can be harmful to humans, especially
children. Over the past few years, we have better understood the
massive scale and impact of lead poisoning globally.
One-third of the world's children have a concentration of lead in
their blood at or greater than 5 micrograms/deciliter--the vast
majority in low- and middle-income countries (LMICs). While there is no
level of exposure to lead that is known to be without harmful effects,
the World Health Organization recommends that for an individual with a
blood lead concentration *5 mg/dL, the source(s) of lead exposure
should be identified, and appropriate action taken to reduce and
terminate exposure.
For children, exposure to lead can permanently damage their
development. Lead poisoning costs children in LMICs 726 million IQ
points, and accounts for up to 20 percent of the learning gap between
children in rich and poor countries. Lead poisoning affects the health
of pregnant mothers, and mothers with elevated blood lead levels pass
that along to their developing babies.
Lead exposure also has serious consequences for adults, causing
increased risks of cardiovascular disease. Researchers estimate that
1.6 million to 5.5 million premature deaths a year from cardiovascular
disease are directly caused by lead poisoning. Even at the lower end,
the death toll is more than HIV/AIDS and malaria combined. However,
global donor funding targeted at addressing lead poisoning amounts to
only about $20 million a year.
In addition to the human costs, these effects have enormous
economic consequences. World Bank researchers estimated that lead
poisoning costs economies $6 trillion a year due to lost productivity
from premature deaths and IQ loss, almost all in LMICs.
Because of its enormous human, social and economic impacts, lead
poisoning globally profoundly affects U.S. foreign assistance goals to
promote child health and development, education, and poverty reduction;
and it has implications for U.S. national security and economic
interests, because poverty and marginalization lead to insecurity and
conflict.
In the United States, we still face challenges from lead exposure
due to lead-based paint and lead water pipes. In LMICs, sources of lead
pollution are more varied: in addition to lead paint, other significant
causes of lead poisoning include spices adulterated with lead, metal
and ceramic cookware contaminated with lead, and improper recycling of
lead-acid batteries.
These sources of lead exposure can threaten American children as
well. The most recent example is the finding of lead in imported
applesauce pouches that resulted in more than 500 reports of lead
poisoning across 44 States.
The best way to protect children globally from lead poisoning
including children in this country, is to reduce contamination at the
source. Pure Earth knows from experience that there is a proven
effective strategy to lower lead exposure, that includes understanding
prevalence, severity, and location of exposure; determining the most
significant sources of exposure, and working with communities and
governments to address those sources, as well as supporting populations
already affected. These interventions are well worth the investment.
LMICs are increasingly aware of the threat of lead poisoning and
taking actions to address lead exposure, including India, Bangladesh,
Philippines, Ghana, South Africa, Colombia, Mexico, and Peru. However,
they need help from development partners to stop childhood lead
poisoning.
We very much appreciate that the U.S. Government has recently
recognized the threat of lead poisoning in developing countries, and
committed to address lead contamination of consumer goods. U.S.
leadership is absolutely critical to put this issue on the world stage,
and convince other governments and institutions to give the scourge of
lead poisoning the attention and funding it deserves.
We respectfully request that the subcommittee designate $4 million
from environment programs, toxic chemicals funding to address lead
exposure. In addition, we ask that the subcommittee include report
language that explains why this issue is important, and that requires a
report on U.S. Government plans to lower lead exposure in LMICs:
The Committee provides not less than $4 million to reduce lead
poisoning in low- and middle-income countries by reducing lead
exposure risks associated with lead-contaminated sites, the
unsound recycling of lead acid batteries, contaminated metal
and ceramic cookware, contaminated spices and other foods,
lead-based paint, cosmetics, or other exposure sources as
appropriate. Lead poisoning affects half of all children in
low- and middle-income countries, results in a greater
mortality toll than HIV and malaria combined, can cause
permanent brain damage in children, harms learning potential,
and costs economies up to $6 trillion a year. Lead-contaminated
goods that originate from other countries regularly poison
children in the United States, requiring the U.S. Government to
engage in efforts beyond our borders to protect children in the
U.S. and globally. The Committee commends U.S. efforts to
address this issue; not later than 90 days after the date of
enactment of the act, the Secretary of State and the USAID
Administrator shall brief the Committee on their strategies and
progress to lower lead poisoning globally.
Lead poisoning is an overlooked, cross-cutting global development
issue that undermines U.S. international development goals and the
goals of our international partners. It robs hundreds of millions of
children of intellectual capital and economic opportunity, and hurts
efforts to address poverty and promote economic growth. Lead
contamination in other countries increasingly threatens American
children. The United States can lead the world in working to lower the
number of children poisoned by lead around the world.
We thank the subcommittee for its continued investment in U.S.
humanitarian and development programs that reflect American values and
protect American interests, and for its support for lead exposure
mitigation in prior appropriations legislation. Pure Earth encourages
the subcommittee to allocate not less than $4 million in Fiscal Year
2025 to support cost-effective programs that help children around the
world reach their full intellectual potential.
Thank you for your consideration. Please let me know if you have
any questions or would like additional information on our efforts.
[This statement was submitted by Richard Fuller, Founder and
President.]
______
Prepared Statement of RESULTS Educational Fund
On behalf of RESULTS, and our network of committed grassroots
advocates across all 50 States, I would like to thank Chairman Coons
and Ranking Member Graham, along with the additional members of the
State and Foreign Operations subcommittee, for U.S. investments and
commitment to addressing extreme poverty and health equity around the
world. The bipartisan support for global health and development
programs has made an enormous difference in billions of people's lives
and communities. I want to thank the Committee particularly for the
FY24 increases for Gavi, the Vaccine Alliance, and the Nutrition
Account in Global Health at USAID. Child deaths have reached an all-
time low thanks to longstanding investment, but new crises since 2020
have led to a spike in malnutrition and in the number of children
missing out on lifesaving routine vaccination, putting this progress at
grave risk. We cannot afford to lose momentum in these crucial efforts.
Your commitment to increasing funds here is notable, and we urge you to
continue to prioritize and increase the funding accounts that
contribute to ending preventable child and maternal deaths in your
fiscal year 2025 bill, even in the face of proposed topline budget
cuts. Truly, these programs save lives and create positive change
around the world and your leadership here is imperative across these
vital accounts
UNICEF just reported that in the past 50 years immunizations have
saved over 154 million lives. Gavi, the Vaccine Alliance, has been a
leading driver in saving lives--and U.S. support has helped Gavi to
immunize over one billion children since 2000. Measles, pneumonia, and
deadly diarrhea caused by rotavirus have all been leading killers of
kids under the age of five, and are now all vaccine preventable. With
Gavi support over 78 countries have rolled out the newest vaccines in
some of the most remote and hard to reach places, and in turn, are
driving down child deaths. Under the last administration, the U.S. made
an early pledge, and our largest to date, in support of the most recent
Gavi replenishment. It was incredibly successful and even exceeded its
global target at a critical juncture. This June Gavi is coming out with
their ``Investment Opportunity'' for its next 5-year strategy, which
includes an equity agenda of reaching ``zero dose children''--those
kids who haven't received any vaccines, and who are most likely not
being seen by a health system at all--and rolling out the new
lifesaving malaria vaccine. An early signaling of the U.S. investment
and commitment to Gavi's new strategy is critical for driving other
donors to the table. RESULTS urges the Committee to fund Gavi at $340
million for fiscal year 2025 (FY2025) and to send a strong message in
the bill/report to other donor countries by including language that
this is the first installment of a multi-year pledge, and urging other
donors to also increase their multi-year commitments by no less than 20
percent. Language to that effect from this Committee in advance of the
last Gavi replenishment helped set the stage for the global success I
noted just a moment ago.
The support for Gavi should not come at the expense of other core
maternal and child health programs. RESULTS also urges the Committee to
increase the Maternal and Child Health account at USAID to $1.15
billion for FY2025 to support other core MCH programs and to account
for both the increase to Gavi that is needed, along with the U.S.
support for the Global Financing Facility as proposed by the
president's budget request. Through critical USAID investments, in 2022
the Maternal and Child Health programs helped almost 12 million women
to give birth in a health facility and supported over 11 million
newborns with postnatal care. This access is essential--often
lifesaving. Investments in high-impact, evidence-based interventions to
improve maternal and child health must be prioritized in U.S. foreign
assistance.
RESULTS also urges you to increase USAID nutrition programs--which
are funded by the global health account and are key to child survival--
to $300 million in FY25. Of the five million preventable child deaths
annually, malnutrition is still an underlying cause of almost half.
USAID nutrition programs support low-cost but highly effective
interventions, such as: vitamin A; iron and other micronutrient
supplementation; food fortification; promotion of good nutrition and
hygiene practices; and treatment for severe, acute malnutrition. This
is particularly important during the 1,000 day window starting with
pregnancy and through a child's second birthday, when malnutrition can
lead to physical and cognitive stunting that has irreversible lifetime
effects.
Last year almost 32 million children under 5 years of age had their
nutritional intake improved thanks to U.S. funding. This is work we can
be proud of: children who get the right nutrition early on are 10 times
more likely to overcome life-threatening childhood diseases such as
diarrhea and pneumonia and are more likely to achieve higher levels of
education.
Building on the profound effect of health programs in a child's
life, we cannot forget the impact of a quality education. RESULTS is
grateful for this Committee's ongoing commitment for the multilateral
education programs, including support for the Global Partnership for
Education (GPE). On GPE, Congress has consistently led the way. We have
made huge strides to ensure that basic education is equally available
for girls and boys, and to eliminate public school fees. But
unfortunately for many students, access to school alone does not equal
learning. Reading and math are the launching pads for future learning,
growth, and development. Still, too many children are not able to
access the quality foundational learning they need and deserve. As a
result, 70 percent of 10-year-olds in low- and middle-income countries
are experiencing ``learning poverty.'' There is a critical need for
increased investment in both bilateral education funding and the
multilaterals. The world is dealing with numerous crises, and we cannot
afford to leave behind an entire generation of learners.
Since 2021, the Global Partnership for Education has reached 227
million children in 68 partner countries with active grants to support
national education plans--with a focus on equity and girls. With
increased U.S. leadership, and support for USAID and the Global
Partnership for Education, we can partner with governments to reach
even more children and support education leaders to strengthen national
school systems, so all children can fulfill their right to education.
That is why RESULTS is calling for Congress to increase support for
International Basic Education, and to provide no less than $200 million
for the Global Partnership for Education in FY25.
RESULTS also wants to acknowledge the immensely important
leadership of this Committee to reauthorize PEPFAR in a critical year.
The world continues to watch the U.S. leadership on global HIV/AIDS,
and we are so grateful for the bipartisan support of this Committee and
for the leadership of both Chairman Coons and Ranking Member Grahamas a
longtime champions of the issue. It is thanks to lasting bipartisan
support from Congress that the United States was able to make the
historic 3-year pledge to the Global Fund and provide $2 billion to the
Fund in FY23, and to maintain the high funding of $1.65 billion in
FY24. For every dollar from the U.S., we have leveraged two dollars
from other donors to end these epidemics and help countries build
health systems. The Global Fund supports high impact investments to end
the epidemics of TB, HIV and malaria, build primary health services,
and better protect us against new pandemics. Our fight here must
continue, and we urge you to maintain your support at $1.65 billion in
the FY25 bill.
As we further our efforts on global TB, including pushing USAID to
set new bold global goals to reach and treat all people facing the
disease, the resounding limitation is the severe lack of global
resources. TB experts--the epidemiologists, the pulmonologists, the
experts in active case-finding, and contact tracing, even the lab
technicians for PCR tests--all helped lead the response to COVID. It's
now clear: the historically underfunded TB programs and the people who
run them are the world's frontline response system for airborne disease
control and are central to pandemic preparedness. Many countries have
made remarkable strides to integrate pandemic preparedness efforts into
their existing TB programs--but this requires the support of donors, to
ensure it doesn't come at the expense of people sick with TB.
As COVID-19 deaths are declining, TB is again poised to become the
leading infectious disease killer. The funding level for the bilateral
USAID TB program should better reflect the magnitude of the nearly 11
million people annually sickened and the 1.3 million people dying every
year of this airborne infectious disease. TB cases disproportionately
affect low-income and otherwise marginalized communities and are a key
driver of poverty. The vast majority of TB cases are curable, but
millions of people go without quality treatment each year.
It has been bipartisan leadership in Congress that has driven
critical U.S. leadership on TB, pushing USAID to do more and do it
faster by increasing resources for our bilateral TB programs year on
year. It's urgent that we act on TB and invest in the programs that can
and have been the frontlines for pandemic response--just as we saw in
COVID. RESULTS again urges the Committee to increase resources to $1
billion for bilateral TB in FY25.
Again, thank you very much for your crucial leadership and for this
opportunity to testify. I respectfully request that the Committee fully
fund these programs that have enormous impact in ending needless
suffering and preventable deaths, and tackling the root causes of
poverty globally.
[This statement was submitted by Dr. Joanne Carter, Executive
Director.]
______
Prepared Statement of Rotary International
Chairman Coons, Ranking Member Graham, and members of the
subcommittee: Rotary appreciates the opportunity to encourage
continuation of funding for FY 2025 to support USAID's Polio
Eradication Initiative. These efforts support the broader Global Polio
Eradication Initiative (GPEI), which is an unprecedented model of
cooperation among national governments, civil society and UN agencies
working together to reach the most vulnerable children through the
safe, cost-effective public health intervention of polio immunization.
Rotary International requests the subcommittee provide $165 million for
USAID's polio eradication activities to capitalize on the historic
opportunity of unprecedented low levels of endemic polio virus
transmission. These funds will support the GPEI's priority of stopping
all forms of polio virus transmission through high quality immunization
campaigns. These funds will also provide vital support for surveillance
activities which provide confidence in both the presence and absence of
polio virus transmission. The nearly 300,000 members of Rotary clubs in
the U.S. appreciate the United States' generous support and
longstanding leadership toward a polio free world. Continued U.S.
leadership will help achieve a polio free world and ensure the
continued global health contribution of polio eradication
infrastructure and resources.
an urgent opportunity to achieve eradication
USAID's leadership within the Global Polio Eradication Initiative
(GPEI) has contributed toward a 99.9 percent decline in global polio
cases since 1988. Five of the six regions of the world have been
certified free from the wild polio virus. Eradication efforts have also
successfully wiped out two of the three wild poliovirus strains. Today,
Pakistan and Afghanistan are the only two countries in the world with
endemic transmission of wild polio virus, and the virus has been
cornered to a limited area in both countries.
However, ongoing challenges threaten over thirty years of progress,
the US investment of more than $4.7 billion, and the current window of
opportunity to eradicate polio. Endemic transmission continues to be
very restricted and was 60 percent lower in 2023 than the previous
year, with only 12 cases confirmed in 2023 in the endemic countries of
Afghanistan and Pakistan (six in each). These two endemic countries are
treated as a single epidemiologic block due to the population movement
between countries. The genetic diversity of wild poliovirus is
shrinking in these two countries, with only two clusters circulating in
2023, down from 16 in 2020.
An outbreak of wild poliovirus of Pakistani origin in Malawi and
Mozambique in early 2022 was stopped thanks to aggressive outbreak
response. This outbreak was formally closed in May 2024.
Setbacks in routine immunization related to the COVID-19 pandemic
have resulted in variant poliovirus outbreaks. These outbreaks can
occur if the weakened strain of the poliovirus contained in the oral
polio vaccine (OPV) circulates among under and unimmunized populations
for a long time. While these outbreaks continued in 2023, there were 40
percent fewer cases in fewer places. The novel oral polio vaccine type
2 (nOPV2) continues to be administered to stop these outbreaks more
efficiently. Outbreaks in four key countries, Nigeria, Democratic
Republic of Congo, Somalia, and Yemen, are considered of particular
concern, accounting for three-fourths of variant polio virus cases
since 2022 and sparking outbreaks in neighboring countries. The GPEI is
working to stop outbreaks in these countries while also addressing
outbreaks in proximate geographies and improving the timeliness and
efficacy of outbreak response activities.
Variant poliovirus has appeared in locations long considered to be
polio free, including Israel, the United Kingdom, Canada, and the
United States. Two individuals (one in Israel and one in the United
States) developed paralytic polio in 2022. These incidents were
addressed by the health authorities of these countries but are relevant
because they were related to the spread of virus from places where the
GPEI continues to battle the poliovirus and underscore the need to stop
virus transmission in those places.
usaid's vital role in global polio eradication progress
The United States is a leading funder and technical voice among
sovereign donors in the drive to eradicate polio. USAID's polio
eradication program contributes to the Global Polio Eradication
Initiative by focusing support towards national plans to build and
sustain population immunity sufficient to stop polio transmission,
build and enhance facility and community-based surveillance able to
detect and respond to possible polio cases, increase public trust in
immunization by working with local partners to address parental
concerns, working with civil society to reach the most vulnerable
children in high risk areas and along international borders, and
assisting in early detection and outbreak response to any new polio
cases found in previously polio-free areas.
USAID has remained steadfast in its support for polio eradication
and successfully navigated working in a post-pandemic environment
despite constraints resulting from the pandemic and ongoing, complex
geopolitical challenges in key geographies. USAID also continued to
invest in polio surveillance and laboratory networks to support the
rapid and accurate identification of polio cases through poliovirus
surveillance in human and environmental samples. In some instances,
USAID support for surveillance includes transport of polio samples from
districts to national laboratories and training of local surveillance
teams in early detection and rapid outbreak response to any new polio
cases found in previously polio-free areas.
USAID also applied lessons learned from polio eradication efforts
and supported partners to build on the polio architecture to motivate
demand, planning and coordination, and distribution and management to
address setbacks in polio and other routine immunizations. This
includes strengthening partnerships at the country level, using polio
micro plans in support of routine immunization, supporting the tracking
and mapping of newborn and pregnant women, broader behavior change
communication and messaging to support immunization, integrated disease
surveillance. In Pakistan specifically, USAID supports the Vaccine
Logistics Management Information Systems which efficiently tracks the
movement of vaccines from central storage facility to the health
facility level. The system also provides real-time information on the
availability of vaccines at each stage of the supply chain that
contributes to making informed decisions in terms of distribution and
delivery.
USAID also supports the CORE Group Partners Project (CGPP), a
multi-country, multi-partner initiative providing financial and
technical support for strengthening host country efforts to eradicate
polio by improving polio vaccination uptake, enhancing quality of polio
campaigns and routine vaccination, strengthening surveillance, and
fostering polio partnerships at all levels through civil societies and
community networks that predominantly rely on female community health
workers. The CGPP specifically supports NGOs to foster strong community
engagement, monitor routine immunization sessions, monitor cold chain
equipment and vaccine distribution and collection per guidelines,
assist in the rollout of the novel oral polio vaccine (nOPV), and
support broader disease surveillance at the community level. The CGPP
also works with NGOs to support the certification and containment
processes, through community-based surveillance and by helping to
inventory materials potentially infectious for poliovirus (PIMs) at
Polio Essential Facilities in their project areas.
usaid staff and missions
USAID staff continued to provide technical support virtually to
USAID Missions and Ministries of Health and continued to coordinate
with other donors. USAID staff reviewed National Emergency Action
Plans, participated in polio oversight and technical meetings, and
continued to promote and disseminate lessons learned across countries
for overall program improvement. USAID/HQ and Mission staff continue to
be actively engaged in working with GPEI partners in support of
effective implementation and review of the GPEI Strategy--2022-2026.
USAID also provides support for certification and containment committee
meetings at all levels. USAID's polio coordinator is a member of the
EURO Certification Commission's (in a personal capacity) and
participates as needed in document review, advocacy, and meetings.
Finally, USAID staff are also involved in legacy and transition
planning discussions at the country and global levels to ensure the
contributions made by Global Polio Eradication Initiative sustain polio
eradication progress and contribute toward broader health objectives,
and that the lessons learned in polio eradication are recorded to
benefit ongoing health priorities.
fiscal year 2025 budget request
Rotary respectfully requests $165 million in FY2025 for USAID's
Polio Eradication Initiative.
FY 2025 funding support for USAID for polio eradication will enable
robust surveillance for poliovirus and the vaccination of individuals
in the hardest-to-reach communities. Additional funding will support
the expansion of surveillance activities which provide confidence in
both the presence and absence of polio virus transmission, and
specifically to provide active subnational and community-based
surveillance to detect and investigate cases in 25 countries and five
regions including surveillance medical officers in high risk districts,
and community-based surveillance officers in high risk conflict/
insecure, remote, mobile and border areas.
USAID will also continue to prioritize timely outbreak response,
given the increasing unpredictability of polio variant virus outbreaks
and the opportunity to apply effective outbreak detection and response
tools, such as the novel oral poliovirus 2 (nOPV2) vaccine. USAID will
work to implement improvements in response planning, execution and
monitoring to ensure rapid, high-quality activities including those
which support fixed-site, mobile clinics and house-to-house planned and
outbreak response immunization campaigns in high risk and remote areas;
combat vaccine hesitancy through Social Mobilization, Community
engagement, and social media; and facilitate coordination across UN
agencies and integration of polio vaccination with broader immunization
for long-term sustainability of polio immunity.
The requested funds would also support integrated services in
targeted geographic areas where polio still circulates such as
Afghanistan, Pakistan and outbreak countries. These countries are
characterized by multiple, complex challenges including conflict and
insecurity and are frequently areas that are unreached by other health
interventions. The polio eradication program is working to reach the
most vulnerable children in these high-risk areas with value-added
interventions. These initiatives are tailored to address local needs
and can include delivery of ``plusses'' such as treated bed nets, or
integrated immunization campaigns that deliver other antigens. Such
integrated efforts offer children and families some of the broader
services they need, while increasing demand and acceptance of polio
vaccination.
the role of rotary international
Since 1985, polio eradication has been Rotary's flagship project,
with members donating time and money to help immunize nearly 3 billion
children in 122 countries. Rotary's chief roles are fundraising,
advocacy, raising public awareness and mobilizing volunteers. Rotary's
cumulative investment in global polio eradication, including match
funding from the Bill & Melinda Gates Foundation, stands at more than
$2.7 billion--the largest contribution by an international service
organization to a public health initiative ever. These funds have
helped countries to buy vaccine and the equipment needed to keep it at
the right temperature and support the means to ensure it reaches every
child. Rotary also plays a key role in encouraging country level
accountability. Rotary has National PolioPlus Committees, in the
endemic countries and over 20 outbreak/at-risk countries. These
national committees work to keep the spotlight on polio eradication
amidst competing priorities from the community level to the National
level.
benefits of polio eradication
Since 1988, tens of thousands of public health workers have been
trained to manage massive immunization programs and investigate cases
of acute flaccid paralysis. Cold chain, transport and communications
systems for immunization have been strengthened. The global network of
146 laboratories and trained personnel established by the GPEI also
tracks measles, rubella, yellow fever, meningitis, and other deadly
infectious diseases including COVID-19 and will do so long after polio
is eradicated. $27 billion in health cost savings has resulted from
eradication efforts since 1988. Investing in polio eradication now may
cumulatively save an estimated $33.1 billion by 2100 in the form of
reduced costs of surveillance and vaccination. The costs to control
polio at today's low levels, plus costs to treat the survivors, would
be over $1 billion per year for decades to come. Furthermore, as many
as 200,000 children could be paralyzed annually in the next decade if
the world fails to capitalize on the more than $19 billion already
invested in eradication.
Polio eradication is a cost-effective public health investment with
permanent benefits. A new investment case finds that successful polio
transition in the 8 priority countries of the WHO Eastern Mediterranean
Region will deliver a return of nearly U.S. $39 for every dollar spent.
The study projects economic and social benefits totaling an estimated
U.S. $289.2 billion through sustaining polio assets and integrating
them into expanded immunization, surveillance and emergency response
programs. These findings underscore the opportunity for national
governments, donors and stakeholders to use polio assets to sustain a
polio-free world and build strong, equitable and resilient health
systems.
Continued U.S. leadership is essential to ensuring we capitalize on
this historic opportunity to rid the world of polio. To continue this
tremendous progress, we respectfully request your support for the polio
eradication efforts of the USAID in the FY25 State, Foreign Operations,
and Related Programs Appropriations bill.
[This statement was submitted by Johrita Solari, Chair, Polio
Eradication Advocacy Task Force.]
______
Prepared Statement of Save the Children Action Network
My name is Christy Gleason, and I am the Executive Director at Save
the Children Action Network (SCAN). SCAN is the 501(c)4 advocacy arm of
Save the Children U.S. and a political voice for kids. We work to
ensure that the issues critical to children's lives and futures are
given top priority by our elected leaders. Thank you for the
opportunity to testify on the needs of children most impacted by
poverty around the world and the indispensable role United States
leadership plays in supporting these children to survive and thrive. I
am testifying today to express concern about the interim 302(b)
allocation for the FY25 State and Foreign Operations Appropriations
bill released May 16. I also testify in support of strong investments
in Development Assistance, International Disaster Assistance, Migration
and Refugee Assistance, Global Food Security, Maternal and Child
Health, Operating Expenses, and the Prevention and Response of Gender-
Based Violence globally, including Ending Child Marriage. Finally, I
offer testimony in opposition to the inclusion of any new spending
directives.
U.S. investments in children and their families around the world
are making a difference. Through U.S. funded assistance, we have
witnessed dramatic declines in the number of people living in extreme
poverty, child and maternal deaths, and childhood stunting (a severe
form of childhood malnutrition).
However, years of gains in outcomes for children are at risk. The
number of children in humanitarian need continues to rise--the result
of both protracted and new conflicts, extreme weather events and market
disruption. 1 in 5 children are living in or fleeing armed conflict,
and over 150 million children worldwide urgently need critical
humanitarian aid to survive. At the same time, chronic hunger afflicts
one in five children globally, permanently compromising their physical
and cognitive development. And nearly 710 million children currently
live in countries at the highest risk of extreme weather events.
U.S. global leadership on behalf of children has never been more
essential--for children's futures and for U.S. foreign policy
objectives related to global peace, prosperity, and human rights.
Overlapping and intersecting global crises require renewed and
bolstered U.S. leadership to save lives immediately, while
simultaneously investing in prevention and resilience at individual,
family, and community levels. Only by responding to today's crises and
rebuilding a more resilient, peaceful, equal, and economically
prosperous global community will we ensure a world where generations of
children can grow up healthy, protected, and educated.
While we understand that Congressional appropriators are facing
significant constraints, we are deeply concerned by the
disproportionate cut made to the allocation for the FY25 State and
Foreign Operations Appropriations bill. A decrease of this magnitude
poses unacceptable risks to the lives and futures of children around
the world, to hard-fought development gains won over decades, and to
U.S. national security and global peace and prosperity. We urge
Congress to put children's needs at the heart of U.S. foreign policy to
ensure every child can get the healthy and safe childhood they deserve,
no matter who they are and where they live. With this frame, I urge the
following:
Core Humanitarian Accounts (FY25 requests: International Disaster
Assistance at $4.85 billion and Migration and Refugee Assistance at
$4.211 billion).--Children are disproportionately represented among
people in humanitarian need. At the same time, they face distinct risks
and rights violations and have different needs by virtue of their age,
relative stage of physical and emotional development, and access to
decision-making spaces and resources. A staggering 300 million people
worldwide need humanitarian aid in 2024. A record 117 million people
are forcibly displaced, 40% of them children--and this number is
projected to grow. We are grateful that Congress has answered the call
with supplemental appropriations. It is desperately needed, especially
as the needs keep growing. There are currently an unprecedented eight
crises requiring over $2.5 billion to fully meet the scale of needs:
Afghanistan, the Democratic Republic of the Congo, Ethiopia, Sudan,
Syria, Ukraine, the West Bank and Gaza, and Yemen. In 2017, there was
just one: Syria.
Robust investment in the core humanitarian accounts will ensure
continued U.S. global leadership in alleviating the humanitarian needs
of children worldwide--and drive greater action and contributions from
our allies. Though it constituted less than .15% in FY23 including
supplementals, these accounts have an outsized humanitarian impact,
providing critical support for tens of millions of displaced persons
and children living in crises and conflicts; urgent relief to
increasingly frequent weather and natural disasters; averting hunger
and famine; and ensuring vital access to education, protection, and
clean water for children in crisis. Maintaining our funding to scale
with global needs is crucial to prevent loss of life, support stability
and well-being in volatile regions, and protect and expand development
gains won over decades.
While the 2024 supplemental funding bills brought these accounts to
a generous $17.86 billion, continued reliance on supplementals to
address humanitarian needs can both hinder the ability to respond to
sudden onset emergencies and make it more difficult for humanitarian
actors to carry out medium-to-long-term aid for protracted crises where
children's needs remain dire. We urge Congress to continue its long,
bipartisan history of supporting children in need worldwide by
prioritizing strong humanitarian base funding in the FY25 bill.
We also remain extremely concerned about the suspension of funding
for UNRWA. UNRWA is irreplaceable--depriving it of critical funding
risks the complete collapse of any semblance of a humanitarian response
not just in Gaza, but across the region. We urge Congress to resume
funding for UNRWA in FY25 and ensure that every child, wherever they
are and whoever they are, has access to lifesaving assistance.
Development Assistance (FY25 request: $4.66 billion).--A strong
Development Assistance account is critical to tackling the root causes
of poverty and breaking the cycle of humanitarian need. It funds
programs to combat child marriage and help farm families be self-
reliant, growing economies and creating communities that can manage
chronic challenges and bounce back from crises. As such, it is the
backbone of U.S. investment in a more stable, prosperous world.
Global Food Security (FY25 request: $1.2 billion).--Feed the Future
(FTF) is a dynamic whole-of-government approach that tackles global
hunger and malnutrition through programs to improve agricultural
productivity, expand markets and trade, prevent child malnutrition, and
strengthen the resilience of individuals experiencing the highest
levels of vulnerability, particularly children. FTF reached 32 million
children under age five with nutrition-specific interventions and
leveraged $698 million to support global food security programming.
Unfortunately, global hunger is on the rise after decades of steady
decreases. As many as 783 million people are facing chronic hunger and
148 million children are stunted by poor nutrition. By emphasizing
resilience, FTF addresses the root causes of poverty and hunger by
equipping people with the resources needed to feed themselves, reducing
long-term reliance on foreign aid. Strongly investing in FTF is
critical to help families build resilience to shocks and stresses.
Investing in resilience yields benefits of $2.8 for every $1 invested
and avoids costly humanitarian efforts in the future.
Maternal and Child Health (FY25 request: $1.15 billion).--
Investments in maternal and child health, including U.S. contributions
to Gavi, the Vaccine Alliance, cement the foundation for healthy,
stable societies. U.S. leadership and assistance contributed to cutting
child and maternal mortality around the world in half since 1990. In
the past 10 years, USAID's efforts have helped save the lives of 9.3
million children and 340,000 women. In 2022, the annual number of uner-
5 deaths dropped below 5 million for the first time ever.
Despite this progress, 4.9 million children under age five still
die each year, almost one million of them on the day they are born.
Moreover, newborn mortality has not decreased as quickly as child
mortality.
Each year, 303,000 women and adolescent girls die from preventable
causes related to pregnancy or childbirth, including postpartum
hemorrhage, hypertension, infection, and obstructed labor.
Complications during pregnancy and childbirth remain the leading cause
of death for adolescent girls aged 15-19 across the globe. Maternal
health interventions improve health outcomes of mothers and reduce
infection risk among newborns and prevent complications from pre-term
births. Prematurity is the leading cause of newborn deaths, yet many
preterm births can be prevented or managed with feasible, cost-
effective solutions. Health interventions throughout a woman's and
girl's life, from preconception through labor and in between
pregnancies, can help prevent early births. These include improving the
nutrition and health of mothers, promoting healthy spacing of
pregnancies, and addressing risk factors before and during pregnancy.
Gender Equality (FY25 request $3.1 billion), including Prevention
and Response to Gender-Based Violence Globally (FY25 request $414
million), and Combatting Child Marriage Globally (FY25 request $30
million).--We urge continued U.S. leadership on global gender equality
and the prevention, mitigation, and response to gender-based violence
experienced by children globally.
Gender inequality and gender-based violence are early warning signs
of instability and violent conflict and undermine the effectiveness of
existing investments in global health, development, and stability.
Forms of gender-based violence-- such as intimate partner violence,
child marriage, and female genital mutilation/cutting-- are rooted in
structural gender inequality and manifest in gender discrimination
affecting women and girls in every country and community in the world.
Adolescent girls are particularly at risk of gender-based violence,
especially in conflict and crisis settings.
The World Bank estimates that global economic gains from ending
child marriage could reach over $500 billion per year, driven in part
by the impact child marriage has on a girl's ability to complete her
education and earn income over her life. Conversely, girls with a
secondary education and access to gender and age-responsive healthcare
services are more likely to marry later, earn more income over their
lifetimes, and face fewer complications from childbirth. These girls
are also more resilient through economic and environmental shocks,
contributing to the resilience of their families and communities.
Finally, we urge that Congress mandate increased U.S. investment in
sex, age, and disability disaggregated data to measure progress towards
gender equality outcomes and reporting on allocations of funding for
all children and/or youth-focused programming.
USAID Operating Expenses (FY25 Request of $1.9 billion).--We are
concerned about the 2.75% cut to USAIDs operating expenses from FY23 to
FY24 given how critical operational funds are for USAIDs staffing,
localization vision, ability to conduct evaluations, and overall
learning agenda. Robust funding for USAID Operating Expenses (of at
least $1.9) is vital to ensure sustainable program results.
Locally Led Development.--We were glad to see that both the House
and Senate FY24 SFOPS reports included strong report language requiring
the agency to report on progress in advancing locally led development
and humanitarian response. For FY25, we encourage appropriators to
request that USAID align its definition of a ``local entity'' with the
Inter-Agency Standing Committee (IASC) definition in accordance with
the U.S. government's reporting to the Grand Bargain.
No New Funding Directives.--Save the Children believes strongly,
based on our programmatic experience, that the most effective
humanitarian response and development programs are based on knowledge
of local context and tailored to the local context. This requires that
funding streams allow those on the ground with intimate knowledge of
the needs, challenges, opportunities and capacities to decide how funds
are used. Those decisions should not be dictated from far away.
Accordingly, we oppose the inclusion of any new spending directives in
the FY25 appropriations bill.
conclusion
We thank the subcommittee for considering our testimony as it makes
decisions about how to allocate resources. Save the Children Action
Network appreciates bipartisan support for programs that are essential
for fighting poverty and ensuring children at home and around the world
have the tools and resources they need to survive and thrive. An
investment in children is an investment in future peace and prosperity.
We look forward to continuing to work alongside you as you champion and
invest in the needs of children around the world, so they have what
every child deserves-the opportunity to survive and thrive.
______
Prepared Statement of Surfrider Foundation
Dear Chair Coons, Ranking Member Graham, and members of the Senate
Committee on Appropriations subcommittee on State, Foreign Operations,
and Related Programs:
The Surfrider Foundation (``Surfrider'') strongly supports the
appropriations of at least $69.3 million to the U.S. International
Boundary and Water Commission's Salaries and Expenses Account, of which
at least $17.5 million be made available to support operations and
maintenance of the South Bay International Wastewater Treatment Plant
(``SBIWTP''), administered by the Department of State to protect public
health, at-risk communities and national military preparedness in the
Fiscal Year (FY) 2025 Federal budget.
South San Diego County along the U.S./Mexico border is plagued by
binational flows of polluted water from the Tijuana River. In part due
to insufficient treatment capacity, mechanical failures, and neglected
maintenance of the SBIWTP, sewage-polluted flows are wreaking havoc on
the local community, economy, and environment. Since October 2018, the
U.S. International Boundary and Water Commission has documented the
entry of over 148 billion gallons of toxic effluent into the United
States through the Tijuana River,\1\ with 28 billion gallons of
polluted flows crossing the international border since the start of
this year.\2\ The southernmost beach in San Diego County has been
closed for over 900 consecutive days and counting as a result of this
pollution. Nearby, Imperial Beach has been closed 100 percent of 2024,
with Silver Strand Beach closed for 96 percent of the year, and world-
renowned Coronado Beach closed for 74% of the year due to elevated
bacteria in the water.\3\
Exposure to untreated and undertreated sewage poses a significant
public health threat. Sewage contains bacteria, viruses, and parasites
that can make people sick with gastrointestinal symptoms, rashes, and
eye infections, as well as more serious conditions including hepatitis,
acute respiratory disease, cholera, giardia, methicillin-resistant
staph infections (MRSA), and flesh-eating bacteria from V. vulnificus,
among others. A 2018 study estimated that each year, 90 million
illnesses are caused by recreating in sewage-polluted waters, which
costs the U.S. economy up to $3.7 billion annually.\4\ For this study,
the primary exposure route was through dermal contact and accidental
ingestion of polluted water during recreation. However, bacteria and
industrial chemicals in areas chronically polluted with high levels of
sewage and industrial discharges, such as coastal waters near the
Tijuana River Watershed, also become aerosolized in sea spray, reducing
air quality and causing an additional exposure route through
inhalation, further threatening public health.\5\ Preliminary results
from new air quality monitoring stations installed in San Ysidro by the
San Diego Air Pollution Control District show levels of hydrogen
sulfide, one of the main chemical components of sewer gas, to be above
the state standard for protecting against headaches and nausea.\6\
Not only do polluted flows threaten the public health of
surrounding communities, the Tijuana River pollution crisis undermines
U.S. national security, affecting Navy SEAL training programs and the
ability of Border Patrol agents to do their jobs. According to a House
Report of the Committee on Armed Services that outlines impacts on Navy
readiness and training, pollution from the Tijuana River caused over
250 in-water canceled training events in FY2020.\7\ Additionally,
Border Patrol agents have experienced illnesses from exposure to toxic
water while performing job duties, including flesh-eating bacteria.\8\
Local businesses and economies have also been hit hard and continue
to suffer due to increasing water and air contamination. The County of
San Diego, with assistance from the San Diego Chamber of Commerce,
recently conducted an economic impact study to measure the impacts of
border pollution on local businesses. Preliminary results reveal that
74 percent of local businesses have been negatively impacted, 30
percent have laid off staff, 50 percent have lost more than $100,000 in
revenue, the City of Imperial Beach has experienced $1-1.5 million in
property tax damage, and the estimated revenue loss for tourism is over
$500,000 annually.\9\ Some businesses have been forced to close, and
many residents have lost their livelihoods.
These economic and public health concerns are why the City of
Imperial Beach, City of San Diego, and the County of San Diego maintain
an ongoing State of Local Emergency related to the impacts of cross-
border pollution from the binational Tijuana River. The Tijuana River
was also recently designated as one of America's most Endangered Rivers
\10\ due to the severe level of sewage and industrial pollution
threatening local communities and wildlife. A recent white paper
published by San Diego State University's School of Public Health
summarized the public health impacts of the pollution and noted that
the death of three bottlenose dolphins in San Diego from sepsis is
likely linked to Tijuana River pollution. ``These dolphins serve as
sentinels for the risk of possible human exposures to dangerous
bacteria'', the paper States.\11\ Despite local and national attention,
toxic flows continue to threaten families, expose Border Patrol
personnel, harm ecosystems and wildlife, and impede public access to
the coast every day.
The International Boundary and Water Commission is tasked with
managing the SBIWTP, yet inadequate funding has led to years of
deferred maintenance, plant failures, and a long list of critical
repairs needed in order for the SBIWTP to be fully operational. For
example, the already struggling SBIWTP became inoperable after damages
and inundation sustained from Tropical Storm Hilary in August 2023.
Flooding from the storm resulted in the plant receiving flows of 50 to
80 million gallons per day above the plant's permitted design limit of
25 million gallons per day. As a result, the plant intentionally
diverted raw sewage into the Pacific Ocean to prevent further damages.
The plant has since come back online, but is operating at a diminished
capacity due to those damages and the state of affairs preceding that
weather event. Insufficient treatment capacity and frequent mechanical
failures at the SBIWTP and its distribution system are problems year-
round, not just during heavy rain and storm events. Dr. Maria-Elena
Giner, U.S. Commissioner of the International Boundary and Water
Commission, testified to the California Coastal Commission that the
SBIWTP was failing to meet over 15 of 35 water quality parameters
regulated by their discharge permit, stating that previous annual
funding levels were too low and ``did not prioritize this plant [the
SBIWTP] as part of the maintenance that was needed.'' \12\
Thanks to strong support and engagement from local communities,
nongovernmental organizations, local decision-makers, scientists,
Federal agencies, and Congressional leadership, progress has been made
to plan for expanded capacity of wastewater and stormwater
infrastructure at the U.S./Mexico border. Federal funding allocated
through the United States-Mexico-Canada Agreement (USMCA) as well as
the U.S. Border Water Infrastructure Grant Program helped advance
development of the Comprehensive Infrastructure Solution, which
outlines projects to upgrade treatment facilities at the U.S./Mexico
Border. The Comprehensive Infrastructure Solution is designed to
eventually increase wastewater treatment plant capacity and the broader
distribution system to be able to adequately handle wastewater flows.
Once implemented, the Comprehensive Infrastructure Solution is
estimated to decrease cross-border flows by 75% year-round and reduce
beach closures by 95% in summer months.\13\
However, even with the $300 million provided by the USMCA agreement
and contributions from the Mexican Government, there is a several
hundred million dollar funding gap to fully implement the Comprehensive
Infrastructure Solution. This funding gap does not include the
additional funding needed to address current repairs as a result of
decades of deferred maintenance at the SBIWTP. The FY2024 Federal
budget included elevated funding to help the International Boundary and
Water Commission start to address this maintenance backlog, yet
elevated annual funding is critical to prevent future deferred
maintenance from occurring. The International Boundary and Water
Commission requires not just funding to address previous damage, but
also increased annual funding in order to provide adequate maintenance
and operation of the SBIWTP each year to prevent similar issues from
occurring in the future.
Providing FY2025 appropriations of at least $69.3 million to the
International Boundary and Water Commission Salaries and Expenses
Account, with at least $17.5 million of that allocated to the
operations and maintenance of the SBIWTP, will allow the Commission to
accomplish its mandate to properly operate and maintain the current
SBIWTP in a manner that prevents future mechanical failures and
polluted flows that contribute to the severe public health crisis and
military preparedness threat occurring at the U.S./Mexico border.
Further, Surfrider supports the funding level of $78 million to the
International Boundary and Water Commission Construction Account, with
at least $40.1 million of that allocated to urgent construction needs
and implementation of redundant measures of the SBIWTP, to address
ongoing mechanical failures.
Thank you for your consideration of elevated funding to advance
public health, water quality, and environmental justice at our Nation's
southern coastal border.
---------------------------------------------------------------------------
\1\ Email exchange with International Boundary and Water Commission
Area Operations Manager, February 6 2024.
\2\ Email exchange with International Boundary and Water Commission
Area Operations Manager, May 2 2024.
\3\ Email exchange with San Diego County Environmental Health
Specialist, May 2 2024.
\4\ https://ehjournal.biomedcentral.com/articles/10.1186/s12940-
017-0347-9.
\5\ https://pubs.acs.org/doi/10.1021/acs.est.2c02312?ref=pdf%20.
\6\ https://www.sandiegouniontribune.com/news/health/story/2023-10-
08/new-monitors-confirm-what-south-bay-residents-suspected-
concentrations-of-wastewater-gases-are-above-state-
thresholds.
\7\ https://docs.house.gov/billsthisweek/20210920/CRPT-
117hrpt118.pdf (see page 108).
\8\ https://www.surfrider.org/news/the-impact-of-toxic-border-
pollution-on-us-border-patrol.
\9\ Preliminary findings presented during testimony by Lauren
Cazares, San Diego Regional Chamber of Commerce, to the California
Coastal Commission on October 11 2023: https://cal-span.org/meeting/
ccc_20231011/.
\10\ https://mostendangeredrivers.org/river/tijuana-river/.
\11\ https://www.sdsu.edu/--files/tijuana-sewage-contamination-
public-health-crisis-white-paper-021424.pdf.
\12\ Dr Maria-Elena Giner testimony to the California Coastal
Commission, October 11 2023, Minute 38.
\13\ https://www.epa.gov/sustainable-water-infrastructure/tijuana-
river-watershed-nepa-
implementation.
[This statement was submitted by Katie Day, Senior Manager of
Science and Policy.]
______
Prepared Statement of U.S. Global Leadership Coalition
Chairman Coons, Ranking Member Graham: On behalf of the U.S. Global
Leadership Coalition, thank you for the opportunity to testify about
the important resources provided in the Department of State, Foreign
Operations, and Related Programs Appropriations bill. Today, I ask that
you support a strong and effective Fiscal Year 2025 International
Affairs Budget funded at no less than the Administration's request of
$64.4 billion, including $62.4 billion for the FY25 State-Foreign
Operations bill.
Our diverse coalition of businesses, NGOs, faith-based
organizations, veterans, farmers, mayors, and community leaders across
the country is grateful for the longstanding bipartisan support in
Congress for America's development and diplomacy tools--including in
the recently passed national security emergency supplemental.
This emergency funding could not be more significant for protecting
America's security and economic interests here at home. As China,
Russia, and Iran take increasingly coordinated action against our
interests, we must ensure our Nation is not only able to compete but is
also stopping threats before they reach our shores.
At the same time, it is important to examine the underlying reasons
for this significant emergency package and why supplemental resources
have become so essential. In recent years, base funding for America's
development and diplomacy toolkit has largely remained flat while
global threats have escalated. Given this threat-resource mismatch, it
is not surprising that Congress has relied on emergency supplementals
to bridge the gap.
As we look to the future, it is essential that America confronts
these complex and growing global threats with an equally serious
response that prioritizes strategic, long-term investments in our
civilian national security tools.
growing threats from america's adversaries
As you know better than most, America's adversaries are working to
create chaos around the world and here at home--and they are becoming
even more brazen in their collaboration.
Russia hosted Hamas leaders at the Kremlin just days following the
barbaric October 7 terrorist attacks on Israel. China continues to
provide significant economic support to Russia as it assaults Ukraine--
and earlier this month Chinese President Xi Jinping rolled out the red
carpet for Russian President Vladimir Putin. North Korea is supplying
Russia with weapons for its ongoing war in Ukraine. Iran continues to
produce weapons to kill Israelis, Ukrainians, and Americans. China
continues to purchase Iranian oil and gas, providing Iran the resources
to fuel proxy wars across the Middle East. In the Indo-Pacific, grey
zone maritime clashes between China and the Philippines continue as
Taiwan's future hangs in the balance.
Our adversaries' objective is no secret--it is to directly
undermine our security, our economy, and our National interests here at
home and in every corner of the world. I have seen this firsthand in my
own travels--most recently in South Africa as part of a bipartisan,
bicameral CODEL with the Aspen Institute. As expected, we heard and saw
the outsized footprint China has throughout the continent. What I
didn't expect was how rapidly Russia is also expanding its presence
across Africa. AFRICOM briefed us on the presence not only of the
former Wagner Group--now rebranded as the ``Russian Africa Corps''--but
also the economic investments that were at a whole different scale,
matching what experts are seeing in Latin America and Asia.
unrelenting and interconnected global emergencies
This global nexus of authoritarian collaboration, escalating
conflict and instability, and growing humanitarian crises continues to
directly impact America's national and economic security--and it shows
no signs of letting up. Here are just a few examples:
--The ongoing war in Sudan has resulted in thousands dead and 25
million people at risk of hunger, disease, displacement, and
violence. The country now accounts for the largest number of
internally displaced people in the world and nearly one-third
of the population is on the brink of famine. Not only is this a
humanitarian emergency, the security implications for the
region and for the world cannot be understated.
--After Burma's democratically elected government was overthrown in a
military coup in 2021, the country has been mired in
humanitarian catastrophe and civil war. Backing from Russia and
North Korea has been vital for the military junta as it clings
onto power, while China's influence has fueled a conflict that
has sent Burma's economy plummeting and led to more than 2.5
million internally displaced. The spillover across Burma's
borders is also destabilizing a key part of Indo-Pacific.
--More than 270,000 Americans have died from an overdose of a
synthetic opioid in the last several years. Tragically, much of
the supply of synthetic drugs and illicit opioids is produced
in and comes through international supply chains from Mexico
and China--fueling one of the most devastating public health
and geopolitical crises with widespread implications for
American families, the U.S. economy, and our National security.
If we fail to address these and so many other challenges using all
our tools of national security--including diplomatic, development,
economic, humanitarian, and global health--they will continue to spiral
at a time when global stability has rarely been more impactful on
American stability.
powerful solutions to stem the tide of crises
While America cannot control the actions of our adversaries and
competitors on the global stage, we can determine how we choose to
show-up, engage, and lead in the world to advance our security and
economic interests. Importantly, U.S. development, diplomacy, and
foreign assistance are a proven investment in building a safer, more
prosperous America.
We have seen this model pay dividends for America time and again.
U.S. foreign assistance, for example, helped move South Korea from
economic collapse after the Korean War to our sixth largest trading
partner and a key ally today. We now get back $65 billion every year in
trade with South Korea--far more than the total we invested there over
five decades.
Economic Toolkit
Today, as we confront our adversaries and competitors, we also see
the growing nexus of how economic security is national security. It
will be increasingly important that we invest in and sharpen America's
diplomatic and economic tools to protect American families. This
includes how we engage in economic statecraft to create American jobs,
strengthen supply chains, bolster infrastructure in emerging economies,
leverage technology and diplomacy, and ensure the U.S. is setting the
rules of the road on everything from trade to energy to artificial
intelligence.
At a time when China has increased its economic development
spending around the world by 525% in the last 15 years alone, America
cannot take its foot off the gas. China is taking advantage of this
moment to expand its global influence and advance its interests--many
of which do not align with ours. The U.S. International Affairs Budget
is a powerful tool in America's strategy to compete and offer a better
alternative by leveraging investments in development financing,
economic assistance, infrastructure, and public-private partnerships.
This conclusion was underscored by the bipartisan House Select
Committee on Strategic Competition with the Chinese Communist Party in
its recent report, which called for an expansion of the ``toolkit for
global development and strategic investments to counter the Belt and
Road Initiative,'' and specifically urged Congress to ``[f]ully fund
DFC and USAID... to advance strategic, values-driven, and high-standard
infrastructure and investment in low- and middle-income countries.''
When I traveled to Kenya last year, America's impressive Ambassador
Meg Whitman, former CEO of Hewlett Packard, also made a compelling
case. She reminded our delegation that by 2050, 1 out of 3 workers in
the world looking for their first job will live on the continent of
Africa--and our competitors are everywhere playing to win, especially
China. The next day, my colleagues and I visited impactful U.S.
economic development programs led by USAID and the Development Finance
Corporation (DFC) that are bolstering opportunity in Kenya and here in
the United States.
Failure to adequately invest in these critical tools puts America
at a disadvantage and could undermine critical resilience-building
efforts and ultimately lead to more crises. Unfortunately, the final
FY24 spending deal included significant cuts to America's core economic
and development assistance accounts that will be important for Congress
to reassess in FY25.
Humanitarian Assistance
From Sudan to Gaza to the Democratic Republic of Congo to Haiti,
global humanitarian needs have reached a fever pitch. If we ignore
these growing humanitarian emergencies, we do so at our own peril.
At the beginning of each year, the International Rescue Committee
releases a report on the 20 countries most at risk of new or worsening
humanitarian crisis. For 2024, 8 out of the top 10 watchlist countries
are in Africa. According to the report, ``Watchlist countries are home
to just 10% of the world's population but account for approximately 86%
of all people in humanitarian need globally.'' In addition to the human
toll, of additional concern is that many of these countries are
experiencing growing conflict and turmoil, adding to the growing
instability and security risks throughout the world.
The good news is that America's development and diplomacy programs
help save lives and alleviate suffering--strengthening global stability
and showcasing the best of our Nation's values.
Our coalition is grateful that Republican and Democratic
administrations and Members of Congress have a legacy of sustaining and
strengthening America's commitment to global humanitarian assistance.
Importantly, alongside a slight increase for humanitarian aid in the
final FY24 spending deal, Congress reinforced its commitment to helping
the world's most vulnerable by including more than $9 billion in the
recently passed national security emergency supplemental for global
humanitarian assistance. These resources will help save millions of
lives and go a long way to promote stability at this moment of
significant crisis.
effective investments amid constrained resources
Each year, Congress faces the difficult task of distributing finite
resources across many priorities. Given the spending caps imposed by
the Fiscal Responsibility Act, this year is certainly no exception. But
the consequences of shortchanging America's investments in our civilian
international affairs toolkit are simply too great.
Congress's power of the purse is not a responsibility to be taken
lightly. Members of Congress have an obligation to ensure taxpayer
resources are spent effectively, accountably, and transparently to
advance American interests. Over the past decade, Congress has taken
this responsibility seriously, passing more than 50 bipartisan bills to
strengthen and reform U.S. development and foreign assistance programs
on issues from global health to food security to development finance to
aid transparency. As a result, the 1% of the total Federal budget
provided for development and diplomacy has consistently proven to be a
cost-effective investment that delivers a significant return for
Americans.
In the coming weeks and months, our coalition looks forward to
continuing our bipartisan, bicameral engagement with Congress to
underscore why investing in our international affairs tools directly
matters for America's security and economic interests and our values.
[This statement was submitted by Liz Schrayer, President and CEO.]
______
Prepared Statement of U.S. Overseas Cooperative Development Council
The U.S. Overseas Cooperative Development Council (OCDC) is
requesting $50 million for the FY2025 Cooperative Development Program
(CDP) of the Development Assistance account in the FY2025 State-Foreign
Operations and Related Programs Appropriations bill. For more than five
decades, USAID has supported the development of cooperatives as part of
its foreign aid program, mainly through the Cooperative Development
Program (CDP) which is designed to bring U.S. leadership to the mission
of capacity building for the development and growth of cooperative
businesses and cooperative systems around the world. This request for
$50 million is the same as was requested in FY2024.
who is ocdc and what is our interest in usaid's cdp program?
The U.S. Overseas Cooperative Development Council (OCDC) has a
membership of 10 U.S. cooperative development organizations (CDOs) with
expertise in sectors as diverse as agriculture, finance, health, and
energy. These OCDC members are successful U.S. cooperatives who are
part of a robust U.S. cooperative sector that contributes more than 2
million jobs and over $65 billion in annual revenue to the U.S.
economy. It is estimated that more than 120 million Americans benefit
from their membership/participation in one or more of the nearly 30,000
cooperatives that exist throughout all sectors of the U.S. economy.
In addition to being leaders in the U.S. domestic cooperative
community, OCDC members have a shared interest in being champions,
advocates, and promoters of effective international cooperative
development. Individually and collectively, they have an impressive
record of achievement, and they bring many resources to this
international work from the private sector. They share their business
expertise and send members around the world as volunteers to build
sustainable cooperative businesses. And they develop trading
relationships between cooperatives in the U.S. and those in developing
countries, which increases jobs at home and security worldwide.
Examples of impacts achieved by OCDC members include:
ACDI VOCA.--In Guinea their CDP is increasing economic
opportunities, strengthening local market actors' ability to promote
economic growth, and increasing youth and women's entrepreneurship. In
the Philippines, CDP is expanding market-driven growth, promoting
private sector-led development, enhancing gender and social inclusion,
and strengthening civil society.
Equal Exchange.--Fair Trade-certified coffee cooperatives in
Ethiopia, Rwanda, East Timor, and Central America link thousands of
smallholder farmers directly with global markets and their premium
coffee prices.
Frontier Co-op.--Support cooperative member's organic cultivation
practices, enhance their socio-economic wellbeing, provide education
facilities, and support the economically disadvantaged at-large in
member villages in India.
Genex.--Based on a foundation of business consulting provided by
Genex through CDP funding, more than $94 million of host government
investments has been leveraged for agriculture cooperatives in South
Africa.
Global Communities.--Through the establishment of the Agency to
Support Housing Initiatives, the organization facilitated the building
of 1,140 new units of cooperative housing at 33 sites in Poland, with
an estimated 4,560 individuals benefiting from the housing.
Participating cooperative members contributed over $39 million to
finance their housing projects.
HealthPartners.--46,000 members of health-care co-ops in Uganda now
have reliable access to care, including bed nets to prevent malaria and
Zika.
Land O'Lakes Venture 37.--Their work with the dairy sector in
Rwanda has focused on partnering with cooperatives that have leveraged
economies of scale through horizontal or vertical integration working
with each partner to improve operational management, organizational
governance and business decision-making.
NCBA CLUSA.--The Creating an Environment for Cooperative Expansion
project improved enabling environments, enhanced support to
cooperatives, and improved business performance of cooperatives, in six
countries, building the capacity of more than 15 local support
institutions to provide quality cooperative development services, and
providing targeted technical assistance to more than 60 agricultural
and savings and credit cooperatives.
NRECA International.--Decades-long relationship with the Philippine
rural electric community included assistance in the more recovery from
Typhoon Yolanda (Haiyan) that has included work to make the
Philippines' power distribution infrastructure more storm resilient. 49
rural electrification projects in the Philippines provide power for 4.3
million co-op members.
World Council of Credit Unions.--In its first 3 years, WOCCU's CDP
program in South America helped 109,679 individuals obtain formal
financial services, 15,120 individuals received financial education and
literacy training, 12,278 Venezuelan migrants and locals accessed
entrepreneurship or employment opportunities, and 2,037 Venezuelans
received support for revalidating their diplomas, or professional or
technical degree certifications.
impact of the cdp program
Compared with other U.S. foreign aid programs, the CDP program has
received a modest amount of funding and yet it has achieved tremendous
success as a catalyst in laying an effective base for widespread and
sustainable locally led international cooperative development. Among
the measures of the CDP program's success over the years are the
following impacts in 2023:
--314 cooperatives and credit unions assisted with a combined savings
to members of $123.7 million.
--The program works in 22 countries across Africa, Asia and Latin
America.
--871,173 women and youth directly benefited from the program.
--Over 9.9 million people including cooperative members and their
households benefited from the program.
--Reforms to cooperative law and regulation in Mozambique, Tanzania,
Uganda, and Kenya.
This is only a representative sample of an impressive track record
for the CDP program. The challenge is to use the CDP program to get
additional traction for locally led cooperative development that will
produce similar impacts in other parts of the developing world. Among
the lessons we have learned is that the CDP program is an important
resource for demonstrating the positive experience of cooperatives in
the developed world that can then be replicated to address the economic
and social challenges of developing countries where cooperatives have
not had a similar successful history.
why cooperatives should be an international development tool
In the quest for a more prosperous, democratic, and inclusive world
there has never been a better time to increase U.S. investment in
locally led cooperative development. Through a democratic business
model, people-centered approach, underlying social justice principles,
concern for community, and dedication to equitable economic growth,
cooperatives bring a unique set of solutions to today's most difficult
development challenges.
Cooperatives are a dynamic force for self-determination, and they
contribute to creating communities where all people--including women,
youth and the most vulnerable- have an opportunity to improve their
livelihoods. Cooperatives go where for-profit businesses will not
providing economic opportunities and services in places that others
find unprofitable or too risky. For many poor and isolated people,
joining a co-op is the best option to help them escape poverty.
U.S. cooperative development assistance has helped develop
cooperatives that serve millions across the globe. What results can be
expected if a greater investment is made? This testimony provides
evidence that a greater U.S. investment in cooperative development
will:
(1) Create Jobs and Economic Growth in Low- to Middle-Income
Countries--and the United States
Recent research demonstrates that cooperatives offer a proven way
for people to control their economic livelihoods.
--In four countries studied, cooperatives were found to provide
members with measurable economic benefits, providing members
with higher average incomes than national averages.
--The economic status of women improves considerably by belonging to
a cooperative.
--Cooperative development stems migration by providing economic
opportunities for people in their home country.
--The cooperative model contributes to the growth of strong and
healthy democratic communities increasing trust in
institutions.
Public-sector assistance helps fund the formation of cooperatives
in developing economies and, as they grow, these well-managed
cooperatives develop vital U.S. linkages with corporate foundations,
non-government organizations and American volunteers. This makes U.S.-
funded cooperative development a win for jobs in the United States:
--Private-sector jobs at companies in the U.S., such as those
involved with coffee and cocoa, rely on supply chains anchored
by well-organized cooperatives in developing countries.
--In turn, successful cooperatives buy U.S. products, which expands
export opportunities.
what difference do cooperatives make? central america
Studies of Three Central American Countries.--El Salvador,
Guatemala and Honduras have found:
--Cooperative members enjoy higher incomes than non-members.
--Women cooperative members are very likely to earn more when
compared to non-members.
--Young cooperative members are very likely to earn more when
compared to non-member youth.
--There is an overall higher level of social capital and community
satisfaction among cooperative members than among non-members.
Final Conclusion.--While migration decisions depend upon many
factors, cooperative members are less inclined to migrate than non-
members.
(2) Ensure Large-Scale Impact
Cooperatives overseas that have been initiated and nurtured through
U.S. funding are thriving. Additional resources will continue fostering
development at this impressive scale. For example, U.S. assistance has
meant that:
--70 million rural people in the Philippines now have electricity.
--46,000 health-care co-op members in Uganda have access to reliable
care.
--15 million producers sell milk to more than 144,000 dairy
cooperatives in India.
--Thousands of small farmers in Africa and Central America access
global markets through Fair Trade-certified coffee
cooperatives.
--39,000 credit unions met the financial needs of 38 million members
across Africa.
--36,000 farmer cooperatives provide fertilizer and other critical
services to rural India.
--40,000 children in Asia are learning the basic principles of
banking. through a cooperative.
(3) Result in Increased Trust, Sustainability, and Growth
Where trust of for-profit companies is low, cooperatives grow.
Trust is a basic principle for cooperatives, which are owned, managed,
controlled, and patronized by their own members. For example;
Cooperative banks and savings and credit cooperatives globally were not
damaged during the financial crisis of 2007-08 and grew in membership
because they were seen as more risk-averse, sustainable and
trustworthy.
requested funding
The U.S. Overseas Cooperative Development Council (OCDC) is
requesting $50,000,000 for the Cooperative Development Program (CDP) in
the FY2025 State-Foreign Operations and Related Programs Appropriations
bill.
requested bill language
Development Assistance: Cooperative Development Program
``Provided that not less than $50,000,000 shall be made
available for USAID cooperative development programs within the
Bureau for Inclusive Growth, Partnerships, and Innovation.''
suggested report language
``The Committee has repeatedly recognized the important role
that U.S. cooperatives and credit unions play in overseas
programs as a means to lift low-income people out of poverty
through their own efforts by mobilizing equity and savings for
community-based economic growth. The Committee directs the
Agency for International Development to increase the budgetary
level of the program for the next 5-year agreement to include
funding for research on the impact of cooperatives on members
and their communities. Due to increased demand for the program
and the programmatic impact, the Committee intends to budget
for not less than $50,000,000 per year for the next 5 years.''
[This statement was submitted by Paul Hazen, Executive Director.]
______
Prepared Statement of UNICEF USA
Mister Chairman, Ranking Member Graham, and Members of the
subcommittee on State, Foreign Operations, and Related Programs of the
Committee on Appropriations, on behalf of more than 10 million
supporters of UNICEF USA across the United States, it is with gratitude
for this subcommittee's longstanding bipartisan support that I
respectfully ask the subcommittee to provide a fiscal year 2025
contribution of $175 million to the United Nations Children's Fund's
(UNICEF) core funding within the International Organizations and
Programs Account. This funding will help ensure that UNICEF, which
works in the world's toughest places and across more than 190 countries
and territories, can continue to meet the growing needs of children
worldwide.
UNICEF USA is a U.S. nonprofit organization that rallies its
significant supporter base among the American public to advance
UNICEF's global mission. I am proud to say that last year, we leveraged
the U.S. Government's generous contribution to raise an additional
$829M from individuals, foundations and corporations who share our
goals to ensure every child is healthy, educated, protected, and
respected.
2023 was a catastrophic year for children, and 2024 is expected to
see global humanitarian needs remain near record levels. It is
estimated that well over 450 million children worldwide are living in
or fleeing from conflict zones and 43 million children have been
internally displaced due to weather-related disasters over the last 6
years. UNICEF's work around the world has expanded in response to the
overlapping and compounding crises--including protracted conflict,
natural disasters, disease outbreaks and rising levels of food
insecurity--which disproportionately impact children and can drive
instability that threatens broader, longer-term impact. These
conditions can deepen poverty and hunger and create conditions that can
drive irregular migration, stoke conflict, and threaten global
stability and U.S. foreign policy interests.
In a time when it feels like bad news is endless, we have some
encouraging news, achieved in part due to consistent U.S. leadership in
partnering with UNICEF for decades: more children are surviving today
than ever before--the global under-5 child mortality rate has declined
by 51 percent since 2000. Behind these numbers are stories of midwives
and skilled health personnel who help mothers safely deliver their
newborns, health workers who vaccinate and protect children against
deadly diseases, and community health workers who make home visits to
support families in ensuring children receive health and nutrition
support. Through its decades of commitment and collaboration to reach
children with low-cost, quality, and effective health services,
including in some of the world's hardest-to-reach areas, UNICEF has
reliably provided the knowledge and tools to save countless lives.
UNICEF remains an essential partner to the U.S. in advancing shared
priorities to deliver impact for children, including improving global
health by complementing and enhancing bilateral programs, and in many
cases working in areas where governments and other partners cannot.
Since its creation in 1946, with U.S. partnership, UNICEF has
helped reach more children than any humanitarian organization in the
world and provides child health and nutrition services, safe water and
sanitation, quality education and skill building, HIV prevention and
treatment for mothers and babies, and the protection of children and
adolescents from violence and exploitation. UNICEF also invests in
emergency preparedness to respond to crises, including climate shocks,
faster, save more lives and reduce costs.
UNICEF receives no direct funding from the United Nations; all
UNICEF's funds come from voluntary contributions from public and
private sources. Almost a third of UNICEF's total funding comes from
non-governmental sources. Core resources are flexible funds that UNICEF
relies on to ensure it can direct support to areas of greatest need and
where it will make the most impact for children. They allow UNICEF's
experts to be on the ground and equipped to respond when a crisis
occurs and to be there to support communities in rebuilding, and also
for UNICEF to support children's needs throughout their childhood and
adolescence predictably.
UNICEF's work around the world has continued to expand in response
to increasing needs. In 2023, UNICEF responded to 412 new and ongoing
humanitarian crises in 107 countries and provided safe water and
sanitation for 42 million children and families in humanitarian crises,
and these needs are expected to grow. Millions of innocent children
need our support:
--The war in Ukraine has robbed the country's 7.5 million children of
stability and safety.
--Over 1 million children are in need of humanitarian assistance in
Gaza and the West Bank, with both Israeli and Gazan children
experiencing terrible trauma from the ongoing crisis--the
consequences of which could last a lifetime.
--Sudan is now the largest child displacement crisis in the world,
with 13,000 children displaced every day for the last 300 days.
--The escalating crisis in the Democratic Republic of the Congo has
put children at increasingly high risk of harm and
vulnerability to recruitment by armed groups.
--In Haiti, more than 3 million children require humanitarian
assistance. With basic services on the verge of collapse, half
of those in need aren't getting it due to insecurity and
insufficient humanitarian funding.
Last year, I visited a refugee camp in Turkey just after two
devastating earthquakes and thousands of aftershocks hit the country,
leaving millions of children in need of assistance. The earthquakes
destroyed homes and vital infrastructure, leaving families homeless,
vulnerable and without adequate access to essential services. I
witnessed first-hand the child-friendly spaces UNICEF created to
provide safe environments in the aftermath of the disaster. There,
children are not only provided food and shelter, but they're also given
renewed access to vital services such as education and psychosocial
care. Seeing smiles on children's faces after such a traumatic event
was proof of the power of UNICEF's work.
While in Turkey, I also met a young family with three children who
had narrowly escaped their building before it collapsed. The parents,
already displaced from Syria, lost everything, again. Children in Syria
have been struggling to cope after nearly 13 years of sustained
conflict, continued displacements, the impact of unprecedented economic
crisis, and disease outbreaks. In 2023, UNICEF reached 15.8 million
people, including 10 million children, in Syria with safe water,
healthcare and education access, nutrition resources, psychosocial
support and cash transfers. It is stories like theirs that remind me
how important it is to continue our work. Before, during and after
emergencies, UNICEF is on the ground to support the most vulnerable.
UNICEF works at the intersection of humanitarian aid and international
development, and voluntary contributions from champions like the U.S.
Government enable UNICEF to provide continuity of service to support
families like this one, no matter when or where disaster strikes.
As the largest single vaccine buyer in the world, UNICEF also has
unique, longstanding expertise in procurement and logistics to help
children in need. Every year, UNICEF procures enough vaccines to reach
45 percent of the world's children under 5 years old, contributing to
dramatic cuts in under-five mortality rates. In 2023, UNICEF delivered
2.79 billion vaccine doses to 105 countries, including 6.2 million
doses of the world's first malaria vaccine to 7 African countries.
UNICEF is committed to making every dollar go further to save and
improve children's lives, using its procurement power to influence key
product markets such as vaccines, helping to drive down prices. UNICEF
contracts with companies worldwide, including in the U.S., to help meet
global needs. In 2023, UNICEF procured $713.43 million in goods and
services from U.S. companies.
UNICEF's programs to address wasting, the most life-threatening
form of malnutrition, reached over 70 percent of children under the age
of five in 47 high-mortality countries in 2023--the most ever--helping
turn the tide against the global malnutrition crisis. UNICEF also
supported the treatment and care of 9.3 million children with severe
wasting, the highest number ever reported. UNICEF continues to reach
millions of children in need of lifesaving ready-to-use therapeutic
food (RUTF) thanks to generous support from the U.S. Government, which
was bolstered by other governments and partners including the Bill and
Melinda Gates Foundation and the Church of Jesus Christ of Latter-day
Saints, to help ensure that mothers would have healthier pregnancies
and births and to offer therapeutic food and micronutrients to their
children who might be at risk.
UNICEF also advocates for a child's right to education and a
protective learning environment in communities around the world. In
emergencies, education is a lifeline for children in crisis, providing
stability, security and access to psychosocial support. In response to
the ongoing conflict in Myanmar, Rohingya refugees, almost 60 percent
of whom are children, have been resettled in Bangladesh. Working with
the Government of Bangladesh and partners, UNICEF is helping provide
support for access to quality education, including establishing
learning centers; and is reaching children affected by violence, abuse
and neglect with prevention and assistance.
Amid escalating conflict, insecurity, displacement and poverty
across the globe, more positive outcomes are needed. An increase in
core funding will help UNICEF continue to draw upon its more than 70
years of experience to respond to the needs of children, alleviate
suffering, and help them grow and thrive.
UNICEF is also proud of its incredible backing from the American
public, ranging from generous philanthropic and individual donations to
cross-country participation in UNICEF USA's annual ``Trick-or-Treat for
UNICEF'' fundraising campaign. UNICEF also maintains important
partnerships with organizations like Kiwanis International to eliminate
maternal and neonatal tetanus, which has now been eliminated in 48 out
of 59 at-risk countries, and to work toward the elimination of iodine
deficiency disorders.
As a leader in fighting vaccine-preventable diseases, UNICEF
procures vaccines for Gavi and buys all vaccines and related items for
global campaigns not covered by Gavi. UNICEF's long partnership with
Rotary International and others has nearly eliminated polio, reducing
polio cases by more than 99.9 percent since 1988. Only 12 wild polio
cases were confirmed worldwide in 2023. Together, UNICEF and Rotary
help vaccinate over 400 million children every year and have helped
immunize more than 3 billion children in 122 countries as of 2023.
Measles cases increased worldwide from more than 170,000 cases in
2022 to more than 320,000 cases in 2023. With the American Red Cross,
UNICEF helps lead the Measles and Rubella Initiative, working with
countries, partners, parents and caregivers to create a world free from
measles and rubella. UNICEF is also a founding member of the Roll Back
Malaria Partnership to support malaria treatment and research, and to
expand prevention measures such as long-lasting insecticide-treated bed
nets. In 2023, UNICEF procured $27.8 million in long-lasting
insecticidal nets which equated to 13.4 million nets for 32 countries.
UNICEF believes in the power of localization to ensure that every
child has timely access to life-saving supplies that are compliant with
global standards of quality and can help address health and other
issues endemic to a region through regional manufacturing and local
procurement. UNICEF also values partnerships with civil society
organizations as essential for achieving positive outcomes for children
and collaborates with national NGOs to tap into local initiatives and
community-based organizations to reach marginalized populations. Over
4,000 civil society organizations, most local or national NGOs, work
with UNICEF to deliver over $1 billion in programming annually to
support communities and children worldwide.
As UNICEF continues to work relentlessly to help meet children's
needs no matter where they are or what they face, UNICEF USA also
supports fiscal year 2025 funding requested by our partners for Iodine
Deficiency and Iodine Nutrition ($3.5 million), Maternal and Neonatal
Tetanus ($2 million), and Polio Eradication ($165 million). UNICEF USA
also asks the U.S. Congress to provide at least $1.15 billion under the
Maternal and Child Health (MCH) account (including $340 million for
Gavi), at least $300 million for the Nutrition account, and at least
$500 million for Water and Sanitation in fiscal year 2025. We urge you
to allocate $35 million to the Vulnerable Children account. Finally,
UNICEF knows that education is critical for children, and can be
lifesaving for children in crises. We support at least $1.1 billion for
International Basic Education, including $200 million for the Global
Partnership for Education and $50 million for Education Cannot Wait.
The subcommittee's support for $175 million for UNICEF's core
resources we are requesting would significantly impact UNICEF's ability
to address the enormous challenges facing children around the world and
help ensure that every child has an opportunity to survive and thrive.
Thank you for your consideration.
[This statement was submitted by Michael J. Nyenhuis, President and
CEO.]
______
Prepared Statement of WaterAid America
The world is facing historic challenges, including unprecedented
food insecurity, growing levels of displacement, and the ever-
increasing impacts of a changing climate. Additional investments in
foreign assistance, such as through the Department of State and U.S.
Agency for International Development (USAID), are crucial in addressing
these challenges, shaping a more prosperous future, continuing gains in
poverty elimination, fostering healthy communities, and promoting
peaceful societies.
With the leadership of the United States, the past decade has seen
many advances in global health and development, including improving
access to clean drinking water, hygiene, and improved sanitation that
has saved countless maternal and child lives. For Fiscal Year (FY)
2025, WaterAid recommends no less than $59.7 billion for the Department
of State, Foreign Operations and Related Programs (SFOPs)
appropriations bill, and specifically, that the Water and Sanitation
directive at USAID receive no less than $500 million.
WaterAid has a presence in 30 countries and our vision is a world
where everyone, everywhere has safe and sustainable access to clean
drinking water, adequate toilets, and good hygiene. Our work shows that
inclusive access to water, sanitation, and hygiene (WASH) creates
healthier and more productive populations, builds resilience in the
face of climate shocks and natural disasters, and lays the foundation
for long-term, sustainable growth.
WASH access is a primary way that the world's population
experiences water insecurity. Achieving water security requires three
things: good-quality, well-managed water resources; well-managed water
supply services; and management of disaster risks. That said, water
resources are of little use without sustainable water supply services.
WASH is integral to establishing useful and sustainable water security.
Investing in WASH unlocks billions in economic opportunity and is
critical to the functioning of markets and commerce. A 2021 study from
WaterAid and Vivid Economics on the benefits of universal WASH access
found that general investment in basic WASH services can yield benefits
up to nearly 21 times the cost.\1\ Basic water investments will
generate an estimated U.S. $32 billion dollars annually, while
investments in basic hygiene and basic sanitation services will
generate nearly U.S. $45 billion and US $62 billion dollars per year,
respectively.\2\ In fact, access to basic sanitation around the world
is currently so low that addressing universal access would result in
the highest annual return of the three basic interventions.
The benefits of WASH also come in the form of fewer deaths, reduced
human suffering, and greater resilience to shocks and health crises.
Our recent research on universal WASH access also found that:
--Hand hygiene can reduce cumulative infections by up to 20%,
including in a COVID-like respiratory disease epidemic;
--Simple WASH interventions can prevent up to 1.6 million maternal
and natal deaths yearly--including 20 million maternal sepsis
cases; \3\
--Safely managed sanitation would prevent up to 6 billion cases of
diarrhea and 12 billion cases of parasitic worms over a 20-year
period--increasing school and work attendance by a cumulative 3
billion days each year; \4\ and
--Every dollar invested in strategic flood resilience upgrades to
WASH systems could avoid up to $96 dollars in associated WASH
restoration costs.\5\
If the world is to address the immense challenges we face, WASH
investments must be increased to mitigate the worst impacts, protect
lives, and support a secure future. WASH is a cornerstone for ending
preventable maternal and child deaths, improving nutrition and
preventing acute undernutrition. WASH is also essential to addressing
gaps in global health security and pandemic preparedness and response,
as well as infection prevention and control measures, especially in
healthcare facilities. WASH is also critical to water security, climate
resilience and adaptation, and food security.
Climate change directly threatens water security, further exerting
additional stress on water resources. More than a quarter (27%) of the
global population currently lives in potentially severely water-scarce
areas--and by 2050 this percentage is predicted to rise to between 42%
and 95%. Droughts, floods, and other disasters threaten the
availability of clean, safe, and sustainable water for domestic use and
human well-being, use in institutions such as healthcare facilities and
schools, economic growth and livelihoods, and the environment.
Conversely, safely managed sanitation and improved hygiene reduce the
risk of contamination in times of flooding, averting diseases and
reducing the need for migration.
Similarly, without water, there is no food. Currently, 55 million
people (about twice the population of Texas) are directly exposed to
drought each year, with the food security impacts of that exposure
reaching millions of additional people. It is estimated that 72% of the
world's freshwater is used for agriculture, and growing populations
will require an estimated 15% increase in water withdrawal just to
support increased agricultural production alone.\6\ The populations of
Africa and Asia are predicted to grow by 2 billion and 1 billion people
respectively over the next 50 years--and climate-smart efforts must
increase to meet the growing demands for WASH and the need for water-
dependent food production. Without a holistic approach to these
challenges which includes WASH, food supplies may increase but a lack
of clean water and sanitation will cost millions of lives and solutions
will not be sustainable or durable.
Sustainable, reliable water supply, increased water storage, and
resilient and inclusive WASH services are needed to ensure the
availability of clean water in times of scarcity. Growing food needs,
dietary changes, urbanization, increased irrigation, all exert an
increased demand upon water resources. The ongoing need for WASH to
maintain, save, and protect lives and livelihoods directly interlinks
with the viability of a food-secure world. Access to good quality,
climate-resilient WASH services can enable communities living in
poverty to withstand longer dry seasons and flooding, and to reduce
their overall disease burden. This helps promote health and well-being,
education outcomes, food security, productivity, and livelihoods.
It's been 10 years since Congress passed the Senator Paul Simon
Water for the World Act, strengthening the United States' leadership in
improving access to WASH and ensuring that US investment reaches the
least-resourced communities and most vulnerable populations, including
women and girls. In FY 2022 alone, USAID support helped 5.2 million
people gain access to sustainable drinking services, of which 47% were
accessing water services for the first time. In addition, 4 million
people gained access to sustainable sanitation services, of which 90%
were accessing services for the first time.
U.S. support for WASH programs is about more than infrastructure.
Investment in these programs helps to:
--Strengthen Government Capacity to Provide Services.--USAID provided
technical assistance to the Government of Senegal to implement
large-scale WASH investments that fund water and sanitation
services to benefit 150,000 people. This project was led by the
Senegalese Government, helping to strengthen its systems and
processes for providing WASH services to communities.
--Grow Local Economies.--In Ethiopia, USAID established a training
program for local masons and installers of sanitation
solutions. This program provides opportunities for masons to
grow their businesses, while strengthening supply chains,
improving the private market and increasing demand for
sanitation and hygiene products.
--Build Resilience in Communities.--In South Kordofan State in Sudan,
USAID provided training and equipment for residents to travel
to local communities to repair and maintain water pumps. These
individuals ensure that 230,000 residents in a water-scarce and
conflict-prone region can continue to access water.
WaterAid applauds USAID's work with national governments to
strengthen local governance and the financing of water and sanitation
services, leading to increased domestic investment and less reliance on
donor assistance. This increased domestic investment provides social,
financial, and technical capacity and accountability mechanisms for
WASH infrastructure which will better withstand future shocks,
including infectious disease outbreaks and climate-related disasters
like drought and flooding.
On behalf of WaterAid, I respectfully request an increased
investment of $500 million through the FY 2025 bilateral WASH directive
to save lives and protect our future. This increase in funding would:
--Build local capacity and aid effectiveness by strengthening
countries' tools and abilities to improve water sector
coordination, mobilize national and private sector investment,
and incentivize local management of water resources;
--Scale-up evidence collection, analysis, and learning to support the
expansion of proven WASH interventions to enhance resilience,
sustainability, and self-reliance by building local, long-term
capacity; strengthen institutions and the rule of law; and
share best practices and lessons learned;
--Help communities prepare for future natural disasters and currently
changing climate patterns that impact water and sanitation
services;
--Provide WASH to often-overlooked healthcare facilities and schools,
and thereby strengthen resilience to disease outbreaks and
improve pandemic preparedness that protects Americans at home;
and
--Support cross-sectoral work USAID is doing as it relates to WASH,
including maternal and child health; food security,
livelihoods, and nutrition; and economic development
programming.
In addition to supporting $500 million for Water and Sanitation,
WaterAid also supports robust funding for accounts that WASH plays a
critical role for success, such as global health programs, including
global health security and pandemic preparedness; global food security
programs; and climate resilience and adaptation programs at USAID.
Greater investments in WASH and greater incorporation and
prioritization of WASH in various sectors are key components to our
collective global future. WASH investments are the often-overlooked
ingredient for increasing national security and economic growth,
mitigating future costs, and improving humanitarian outcomes. I invite
the Committee to leverage this relatively small investment in WASH in
the FY 2025 appropriations bill.
---------------------------------------------------------------------------
\1\ WaterAid and Vivid Economics. Mission Critical: Invest in
Water, Sanitation, and Hygiene for a Healthy and Green Economic
Recovery. 2021. Page 20. https://washmatters.wateraid.org/publications/
mission-critical-invest-water-sanitation-hygiene-healthy-green-
recovery.
\2\ WaterAid and Vivid Economics. Mission Critical: Invest in
Water, Sanitation, and Hygiene for a Healthy and Green Economic
Recovery. 2021. Page 20. https://washmatters.wateraid.org/publications/
mission-critical-invest-water-sanitation-hygiene-healthy-green-
recovery.
\3\ WaterAid. Ending the Water, Sanitation and Hygiene Crisis
Together: Policy Priorities for Accelerating Progress. 2023. https://
washmatters.wateraid.org/sites/g/files/jkxoof256/files/mettre-fin-
ensemble--la-crise-de-leau-de-lassainissement-et-de-lhygine-les-
priorits-stratgiques-pour-des-
avances-plus-rapides.pdf.
\4\ WaterAid. Ending the Water, Sanitation and Hygiene Crisis
Together.
\5\ WaterAid and Vivid Economics. Mission Critical: Invest in
Water, Sanitation, and Hygiene for a Healthy and Green Economic
Recovery. 2021. https://washmatters.wateraid.org/sites/g/files/
jkxoof256/files/mission-critical-invest-in-water-sanitation-and-
hygiene-for-a-healthy-and-green-economic-recovery_2.pdf.
\6\ United Nations. Water Scarcity. https://www.unwater.org/water-
facts/scarcity/.
[This statement was submitted by Kelly Parsons, CEO.]
______
Prepared Statement of Wildlife Conservation Society
Chairman Coons, Ranking Member Graham, and Members of the
subcommittee, the Bronx Zoo-based Wildlife Conservation Society (WCS)
welcomes the opportunity to provide FY25 SFOPS testimony on
biodiversity conservation, counter wildlife trafficking, global health
programs and public-private conservation foundation through the U.S.
State Department, Treasury, and the U.S. Agency for International
Development. WCS applauds the removal of harmful policy riders from the
FY24 Appropriations Act related to international climate finance and
the recognition of sound science to guide policymaking. As a key
implementing partner of U.S. awards, WCS operates field programs in 60
countries, 16 priority regions and the waters in between. WCS calls
your attention to the bipartisan letter of support for biodiversity
conservation co-led again this year by Sens. Van Hollen and Tillis; and
a letter of support for robust international climate finance co-led
again by Sens. Merkley and Cardin.
WCS seeks parity between defense and non-defense discretionary
funding and recognizes that a health International Affairs Budget and
corresponding SFOPs 302b allocation will advance the U.S.'s strategic
global position and counter the influence of coercive and authoritarian
governments. U.S. investments in international conservation programs
increase the capacity of nations to protect their natural resources
from corrupt and malign actors, respond to extreme weather, and buffer
against zoonotic spillover thereby strengthening governance and the
rule of law. As the U.S. advances the goal to conserve 30 percent of
the world's lands and waters by 2030 it can align and harmonize
policies to deliver on international climate finance to the most
vulnerable communities; halt global forest loss by 2030 and conserve
global forests; strengthen enforcement against nature crimes globally;
promote One Health to prevent future pandemics at the source of
spillover; and safeguard the rights of Indigenous Peoples and local
communities. WCS requests support for the following priorities in the
FY25 SFOPS Act:
--USAID Biodiversity Program: $500,000,000
--State Department INL/USAID Counter Wildlife Trafficking Program:
$140,000,000
--USAID Sustainable Landscapes Program: $451,000,000
--International Climate Finance: Robust bilateral & multilateral
finance
--Global Health Security Program: Report Language
--Global Environment Facility: $150,200,000
--Public-Private Conservation Foundation: Report Language
USAID Biodiversity.--The U.S. government is a global leader in
biodiversity, forest, and marine conservation investments delivered
largely through the USAID Biodiversity Program. These programs conserve
and protect some of the largest, most at-risk natural landscapes and
millions of livelihoods dependent upon natural resources. The high
forest and low deforestation rates typical of the Central African
region are often under-valued until an immediate threat of destruction
is presented, creating perverse incentives for governments to negotiate
the conversion of intact forests and peatlands which play a vital role
in regulating temperature, sequestering carbon and providing habitat
for elephants. Narco-ranching in Central and South America is the
illegal taking of land from Indigenous Peoples and communities to
launder drug money through illegal cattle ranches, and accounts for 90%
of recent deforestation.\1\ Maintaining and restoring natural resources
enhances US economic and national security interests, reducing conflict
over resources and improving the stability of trading partners. WCS
recommends $500,000,000 for USAID Biodiversity Conservation Programs to
be allocated in a manner similar to prior fiscal years, and the
following report language:
Of the Biodiversity funds, the Committee supports the Central
Africa Regional Program for the Environment with at least
$50,000,000 and $25,000,000 for the Andean Amazon, and to
protect great apes in Central Africa and Indonesia.
Biodiversity programs include transfers to other Federal
agencies with technical expertise, such as $8,500,000 to U.S.
Forest Service International, $6,500,000 to USFWS for
international conservation programs and the Multinational
Species Conservation Funds, $8,500,000 for tropical forest
conservation in the Maya Biosphere Reserve of Guatemala,
Belize, Mexico, of which not less than $3,500,000 shall be
provided by direct transfer to the Department of the Interior's
International Technical Assistance Program.
State INL & USAID's Countering Nature Crimes.--Wildlife
trafficking, illegal logging, illegal fishing, and illegal mining are
nature crimes linked to other transnational organized crimes such as
drug, weapons, and human trafficking, and pose similar threats to
national security, economic prosperity, the rule of law, and the
environment. With field conservation programs in 20 of the Focus
Countries and all six of the Countries of Concern,\2\ WCS works in
partnership with USAID and INL to implement anti-poaching, law
enforcement, and capacity building programs around investigations and
border patrols, prosecutions, and convictions from source sites to
trafficking bottlenecks to demand countries. The FY24 enacted law
included $118,750,000 of which $47,500,000 is directed to INL with
emphasis on applying the latest criminology, behavioral, or social
sciences practices. In FY25, WCS recommends $140,000,000 split between
INL (Title IV) and USAID (Title III) to counter nature crimes.
USAID Sustainable Landscapes.--Mitigates the drivers of
deforestation and land degradation in the world's largest and most
biologically diverse tropical forests. Forests cover 30% of the
planet's land area, house up to 90% of all terrestrial wildlife
species, mitigate severity of storms, and directly sustain the
livelihoods of 1.6 billion people worldwide. The U.S. commitment to
halt global forest loss by 2030 is being accomplished in part by
sustainable land management practices vital to protecting essential
storehouses of biodiversity and carbon in intact forests, peatlands,
and grasslands. U.S. government support gives developing countries the
ability to address the drivers of deforestation and degradation, halt
illegal logging, and restore degraded lands. U.S. jobs are protected
when products from illegal logging are not able to access U.S. markets
and undercut the U.S. timber industry by about $1 billion annually.
While the Administration reports in 2022 that the Department of State
and USAID projects supporting the Plan to Conserve Global Forests total
$547.5 million,\3\ annual investments from these and other agencies
must be significantly ramped up in FY25 to meet the $9 billion pledge
to halt global forest loss by 2030. In FY25, WCS recommends
$451,000,000 for USAID Sustainable Landscapes toward the US's $1
billion annual Global Forest pledge.
International Climate Finance.--National security experts recognize
the danger that climate change poses and the negative impacts on the
U.S.'s economic, humanitarian and development interests abroad. U.S.
foreign assistance in the form of both bilateral and multilateral funds
for international climate finance serve vital U.S. interests by
promoting global stability and security, alleviating global poverty,
promoting resilience and disaster preparedness, protecting investments
in international development, creating economic opportunities for U.S.
businesses and workers, and complementing global health efforts. U.S.-
backed programs are incentivizing developing countries to curb
deforestation while addressing rural poverty and improving the way
lands are managed and harvested--leveraging U.S. funding with up to 39
times more funding from other donors. These and other programs build
resilience to drought, flooding, and other extreme weather events, and
steward tropical forests and other carbon-rich and biodiverse
landscapes and seascapes. In doing so, they also strengthen American
alliances, prevent food and water scarcities, help to avoid conflicts,
and forced migration, and bolster our own national security. In many
cases, these bilateral and multilateral programs have benefitted from
years of bipartisan support under both Republican and Democratic
administrations and Congresses. In FY25, WCS recommends $500,000,000 to
the Green Climate Fund, and robust bilateral and multilateral funding
for international climate finance that balances mitigation and
adaptation funding while advancing nature-based solutions.
Global Health Security Program.--As we continue to recover from the
impacts of the COVID-19 pandemic that has ravaged our families, our
Nation, and our global economy, there has never been a more crucial
time to prevent and prepare for the next pandemic. Pandemics can also
exacerbate local and regional insecurities while undermining U.S.
national security interests, the global economy, and supply chains upon
which U.S. businesses and consumers depend. Pandemics of zoonotic
origins also highlight the critical nexus between healthy environments,
animal health, and promoting public health. USAID Global Health
Programs have a track record of monitoring, predicting, preventing and
responding to emerging infectious diseases that spillover from wildlife
and animals to people. Collection and analysis of zoonotic spillover
data of both known and unknown pathogens at the source of spillover is
an essential but often overlooked component of preventing pandemics.
Global Health Security and pandemic preparedness programs enacted by
the FY23 National Defense Authorization Act (Public Law 117-263)
authorize $1 billion annually in global health security funding. With
support from the Pandemic Fund or financial intermediary fund (FIF),
Global Health Security Agenda countries can strengthen their policies
and practices to prevent spillover of pathogens at the source by
developing or expanding existing Zoonosis Plans beyond livestock
diseases to pandemic prevention at the source. In FY25, WCS recommends
at least $250,000,000 for the US contribution to a Pandemic Fund as
authorized by the FY23 NDAA. WCS also endorses Reps. Meng and
Malliotakis' report language request:
Global Health Security.--The Secretary of State is encouraged
to prioritize zoonotic spillover prevention at the source, such
as wildlife trade chains, degraded edges of the forest, within
the new Pandemic Fund and Pandemic Agreements.
Global Environment Facility (the GEF).--America's investment in the
GEF unites donor and recipient countries, US corporations and NGOs to
support projects in 170 countries. The GEF has supported the creation
of 3,860 protected areas and the sustainable management of 61 major
river basins. The GEF supports efforts to counter nature crimes,
conduct wildlife monitoring, promote clean water, remove deforestation
from supply chains, improve farming practices, and establish payment
for ecosystem services programs. Promoting One Health, good governance,
plastic circular economies and removing mercury and other toxic
chemicals from the environment are also priorities under GEF-8 and
Wildlife Conservation for Development Integrated Program. The FY25 PBR
is $150,200,000. In FY25, WCS recommends $150,200,000 for the US pledge
to GEF8 and supports paying down unmet commitments.
Public-Private Partnership Foundation for Conservation.--Protected
areas across the globe conserve critical biodiversity and iconic
species, contribute to local economies, and support U.S. development
and foreign policy objectives by providing clean water, supporting food
security, and promoting governance and economic opportunities. Yet,
recent studies show that protected and conserved areas too often suffer
from a lack of durable long-term financing, which can cause great
projects to fail in developing countries in the face of emerging
pressures such as pandemics or civil unrest. Safeguarding ``natural
security'' against the drivers of famine, extreme weather, and
authoritarian rule costs far less than suffering the costs of losing
vital benefits provided by healthy ecosystems. To leverage greater and
sustained long-term financing for protected areas around the world,
public-private partnerships can be facilitated by a US international
conservation foundation, as outlined in S.618, championed by Sens.
Coons and Graham. In FY25, WCS supports previous years' language and
endorses Sens. Van Hollen and Tillis' report language request:
Public-Private Partnerships.--The Committee directs that, of
the funds appropriated by this act and prior Acts under the
heading ``Economic Support Funds'' made available to support a
new public-private partnership foundation for conservation are
in addition to funds otherwise allocated to the Biodiversity
Conservation program at USAID in the act and are not to cause a
reduction of total funds available to Biodiversity Conservation
at USAID.
WCS appreciates the leadership of this subcommittee and its
bipartisan approach to drafting appropriations bills. Grounded in good
science, continued investments in these important programs will deliver
on US national and economic security interests.
---------------------------------------------------------------------------
\1\ Radachowsky, J. (2021, April 10). To confront the US border
crisis, save Central America's forests. Scientific American.
\2\ U.S. Department of State, 2021 END Wildlife Trafficking Report.
(Nov. 4, 2021); U.S. Department of State. 2021 END Wildlife Trafficking
Strategic Review. (2021, Nov 4).
\3\ U.S. Department of State. (2022, November 18). U.S. Leadership
Advances Global Efforts To Conserve Critical Ecosystems and Protect
Carbon Sinks: A Progress Report on Implementing U.S. Efforts on the
Plan To Conserve Global Forests Critical Carbon.
[This statement was submitted by Kelly Keenan Aylward, Executive
Director, Federal Affairs & Policy.]
LIST OF WITNESSES, COMMUNICATIONS, AND PREPARED STATEMENTS
----------
Page
Albright, Alice, Chief Executive Officer, Millennium Challenge
Corporation:
Prepared Statement of........................................ 55
Statement of................................................. 53
Blinken, Hon. Antony J., Secretary of State, Department of State:
Prepared Statement of........................................ 111
Questions Submitted to....................................... 139
Statement of................................................. 107
Boozman, Senator John, U.S. Senator From Arkansas, Questions
Submitted by
Collins, Senator Susan M., U.S. Senator From Maine, Questions
Submitted by................................................... 146
Coons, Senator Christopher A., U.S. Senator From Delaware:
Opening Statement of
Questions Submitted by
Graham, Senator Lindsey, U.S. Senator From South Carolina:
Opening Statement of
Questions Submitted by....................................... 147
Hagerty, Senator Bill, U.S. Senator From Tennessee:
Opening Statement of......................................... 45
Questions Submitted by
Lewis, Reta Jo, President and Chair, Export-Import Bank of the
United States:
Prepared Statement of........................................ 51
Questions Submitted to....................................... 88
Statement of................................................. 50
Merkley, Senator Jeff, U.S. Senator From Oregon, Questions
Submitted by
Millennium Challenge Corporation, Questions Submitted to......... 98
Moran, Senator Jerry, U.S. Senator From Kansas, Questions
Submitted by................................................... 36
Nathan, Honorable Scott, Chief Executive Officer, U.S.
International Development Finance Corporation:
Prepared Statement of........................................ 48
Statement of................................................. 46
Power, Administrator Samantha, Administrator, United States
Agency for International Development:
Prepared Statement of........................................ 7
Questions Submitted to....................................... 28
Statement of................................................. 4
Richardson, Sr., Cardell K., Inspector General, Prepared
Statement of................................................... 133
Rubio, Senator Marco, U.S. Senator From Florida, Questions
Submitted by
Schatz, Senator Brian, U.S. Senator From Hawaii, Questions
Submitted by
U.S. International Development Finance Corporation, Questions
Submitted to the............................................... 78
Van Hollen, Senator Chris, U.S. Senator From Maryland, Questions
Submitted by
SUBJECT INDEX
----------
Page
STRENGTHENING AMERICAN COMPETITIVENESS:
EXAMINING THE ROLES OF THE U.S. INTERNATIONAL
DEVELOPMENT FINANCE CORPORATION,
EXPORT-IMPORT BANK OF THE UNITED STATES,
AND MILLENNIUM CHALLENGE CORPORATION
Additional Committee Questions 78
Questions Submitted by Senators:.............................
Boozman, John
Coons, Christopher A.
Hagerty, Bill
Merkley, Jeff
Rubio, Marco
Schatz, Brian
Van Hollen, Chris........................................ 93
Conclusion....................................................... 57
FY25............................................................. 56
Legislative Change............................................... 57
__________
UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
Additional Committee Questions 28
Questions Submitted by Senators:.............................
Moran, Jerry............................................. 36
Schatz, Brian............................................ 28
__________
UNITED STATES DEPARTMENT OF STATE
Additional Committee Questions 139
Questions Submitted by Senators:.............................
Boozman, John............................................ 148
Collins, Susan M......................................... 146
Graham, Lindsey.......................................... 147
Hagerty, Bill............................................ 149
Schatz, Brian............................................ 139
Van Hollen, Chris........................................ 143
Conclusion....................................................... 139
Major Management and Performance Challenges...................... 134
Mission and Results.............................................. 134
Resources........................................................ 138
Response to Crises and Emerging Risks............................ 136
[all]