Lowey statement at hearing on Department of Treasury international programs

Secretary Lew, I join Chairwoman Granger in welcoming you here today, and I thank you for your service to our country.

The President’s 2017 budget request reflects the importance of our continued investments in international financial institutions such as the IMF and the World Bank, which offer a cost-effective way to leverage taxpayer dollars and promote our own economic and national security interests.

Additionally, the Treasury Department leads the world in disrupting terrorist financing networks, enforcing sanctions against violators of international norms, and providing technical assistance to countries serious about strengthening their own financial management and accountability systems. Your Department plays a central role in these vital efforts, and I look forward to hearing from you on how the request would further these important undertakings.

First, with regard to Ukraine, a UN panel reported last week that more than 9,000 civilians have been killed since the conflict started in April 2014.

Given Russia’s ongoing aggression, I would like to know what effect U.S. and EU sanctions have had on Putin. Specifically, I’d like to know if Russia has retaliated economically against us or our allies, and if there are additional punitive, economic measures we should be considering.

Second, Iran recently gained access to billions of dollars in unfrozen assets, following implementation of the Joint Comprehensive Plan of Action. Please update this Subcommittee on how the regime has used the money so far, and the effectiveness of U.S. sanctions on Iran for its financial support of terrorism, human rights abuses, export of weapons, and ballistic missile testing.

Third, we should all applaud the climate change commitments reached last year in Paris as well as the announcement last week by President Obama and Canadian Prime Minister Trudeau on reducing methane emissions. Failure to provide the adequate resources to address an impending environment catastrophe risks creating conditions for even greater dangers: failed states and populations more vulnerable to conflict and radicalization.

Instead, U.S. efforts to combat climate change helps developing countries increase their own resiliency, mitigate instability caused by population displacement, and address declines in the global food and water supply.

That is why it would be very useful to hear specifically how the Administration’s request of $409 million in Treasury programs to address climate change, including the Green Climate Fund and the Global Environment Facility, would help protect the environment, U.S. national security interests, and job creation at home.

Fourth, faced with limited resources, members of our Subcommittee constantly weigh funding for bilateral versus multilateral programs. Unfortunately last year, the House mark eliminated funding for several international financial institutions, which would have jeopardized the interests of the United States and harmed struggling communities abroad. I hope we can avoid such divisive and counterproductive proposals this year and instead recognize that U.S. confidence in these institutions is paramount.

I look forward to hearing from you on the Administration’s oversight of the operations of the World Bank and other international financial institutions, including, for example, the ongoing review of the World Bank’s environmental and social safeguards.

Finally, Congress approved last year the long-overdue IMF quota and governance reforms. I would appreciate hearing how these reforms have helped advance U.S. interests in the institution and bolster equitable participation in global economic decisions.

Thank you for being with us today.