June 14, 2017

House Appropriations, Subcommittee on State and Foreign Ops: Treasury International Programs Budget Hearing with Sec. Mnuchin

 

Key Topics & Takeaways

  • Sanctions: Hal Rogers (R-Ky.), Chairman of the Subcommittee, called on the Administration to do more to “put an end to Iran’s destabilizing activities.” Mnuchin pledged to continue using sanctions against Iran “to the maximum extent available by law.” The Ranking Member, Nita Lowey (D-N.Y.), also expressed concern about reports that President Trump would unilaterally withdraw sanctions against Russia. However, Mnuchin “assure[d]” her that there is “no intention” of removing Russian sanctions and clarified his intent to continue enforcing the sanctions that are currently in place.
  • Personnel: In response to concerns about the level of staff nominated or appointed to positions at Treasury, Mnuchin explained that offers have been extended and accepted for “every single [political] position within the Treasury.” He added that the personnel announcements will be made once the background checks are finalized by the Federal Bureau of Investigation (FBI).

 

Witness

  • Steven T. Mnuchin, Secretary, Treasury Department

 

Opening Remarks

Hal Rogers (R-Ky.), Chairman, House Appropriations Subcommittee on State, Foreign Operations and Related Programs

In his opening remarks, Rogers expressed interest in hearing more about how the Administration’s “Buy American, Hire American” policy is being received by America’s trading partners, as well as international cooperation on sanctions against Iran, North Korea and Russia. He noted that the Treasury Department’s request for $1.1 billion for international programs is 16 percent the enacted level of FY17. Rogers noted that funding for multilateral institutions extend the United States’ influence around the globe, reduce poverty, and ensure economic stability.

 

Nita Lowey (D-N.Y.), Ranking Member, House Appropriations Subcommittee on State, Foreign Operations and Related Programs

Lowey noted that international financial institutions (IFIs) play a “critical role” in reducing global poverty and are critical to U.S. global development efforts. She cautioned that cuts to these programs would diminish the U.S.’s role in IFIs and provide an opportunity for “other countries to fill the space” and reduce America’s ability to influence international norms and values. Lowey warned that President Trump’s ‘America First’ strategy is “catastrophic” for the U.S. and global stability.

 

Steven Mnuchin, Secretary, Treasury Department

Mnuchin referred to his written testimony in lieu of providing opening remarks.

 

Question and Answer

Sanctions

Rogers expressed concern that the Iran nuclear deal suspended some sanctions on Iran, and called on the Administration to do more to “put an end to Iran’s destabilizing activities.” Mnuchin stated his belief that the Treasury’s sanctions work is “some of the most important functions we perform.” He added that he “believe[s] sanctions work” and pledged to continue using sanctions against Iran “to the maximum extent available by law.”

 

Lowey expressed concern about reports that President Trump would unilaterally withdraw sanctions against Russia. However, Mnuchin “assure[d]” her that there is “no intention” of removing Russian sanctions. He clarified his intent to continue enforcing the existing sanctions, which he said are an “integral tool” of U.S. foreign policy.

 

Contributions to Multilateral Institutions

Rogers noted that the Treasury’s budget request for international programs would cut contributions to multilateral development banks from the levels promised under the Obama Administration. Mnuchin explained that “difficult decisions” had to be made to expand military funding and achieve a balanced budget. He added that commitments made by the administration are always subject to appropriations.

 

Balancing Defense and Deterrence

Rep. Jeff Fortenberry (R-Neb.) referenced a quote from General Mattis that underscored the importance of development dollars and multilateral commitments to national security and global stability. Fortenberry cautioned against “hollowing out” the programs that create the conditions for stability by committing resources solely to defense programs.

 

Export-Import Bank

Rep. Charlie Dent (R-Pa.) underscored the importance of the Ex-Im Bank, and expressed concern that its operations are limited due to the lack of leadership appointed to its board. Mnuchin stated that he and President Trump “fully support” reopening the Ex-Im Bank for business, and suggested that it address concentration risk, as well as avoid crowding out private funding.

 

Personnel

In response to concerns about the level of staff nominated or appointed to positions at Treasury, Mnuchin explained that offers have been extended and accepted for “every single [political] position within the Treasury.” He added that the personnel announcements will be made once the background checks are finalized by the Federal Bureau of Investigation (FBI).

 

Additional information about this hearing can be accessed here.