Vice Ranking Member Meng Statement at Fiscal Year 2024 Budget Request for the Department of the Treasury International Programs

Congresswoman Grace Meng (D-NY), Vice Ranking Member of the House Appropriations Committee delivered the following remarks at the State, Foreign Operations, and Related Programs Subcommittee's hearing on the fiscal year 2024 budget request for the Department of the Treasury International Programs

Good morning. Secretary Yellen, thank you for coming before the Subcommittee today to testify regarding the Treasury Department’s fiscal year 2024 budget request for international programs.

I should start by recognizing the current banking and inflation challenges that our nation is currently facing. But we are not alone. The world is continuing to recover from the impacts of COVID-19, and many nations are feeling the repercussions of Russia’s war on Ukraine. According to the World Bank, “The pandemic caused global poverty to rise for the first time in over 20 years. In many countries, gains in education, health, nutrition, and gender equality have reversed, leaving the poor and disadvantaged further behind.”  These problems affect countries differently, but the pain they cause is shared. This reinforces the need for a strong U.S.-led international finance system that can take decisive action to provide financing for quality infrastructure investment, climate adaptation and resilience, energy innovation and diversification, and public health.

Treasury has a unique role to play in advancing U.S. leadership to tackle shared challenges. Our contributions to the IMF, World Bank, regional development banks, and multilateral funds are part of our commitment to support global partnerships to promote sustainable and inclusive economic growth, reduce poverty, and provide critical support to countries recovering from disaster and conflict. Our commitment to resolve some of the world’s most challenging problems cannot be accomplished alone.

Secretary Yellen, I hope you will discuss the consequences of not being able to channel our Special Drawing Rights into productive avenues this morning and address some of the concerns of my colleagues. Getting increased resources to low income and heavily indebted countries is necessary to aid in their recovery from the multiple shocks of recent years and, ultimately, will support their long-term stability.

The need is significant, and a lack of U.S. leadership opens the door for malign actors who seek to entice governments to accept deals that plunge their countries further into debt and further into poverty.

Like appropriations bills, the President’s budget is a statement of values. Treasury’s FY2024 request makes clear that significant increases are needed to improve climate resilience and drive innovation and diversification in the energy sector. By working in partnership with the multilateral development banks, we can leverage every U.S. dollar to go further. 

U.S. contributions to these programs help to safeguard and improve the wellbeing of the United States. This year’s budget request addresses the looming problem of unmet commitments to international financial institutions, and I appreciate the Administration’s recognition that this is a key priority. We cannot be viewed as a credible partner while shirking our financial responsibilities.

Secretary Yellen, the Treasury Department’s international programs are important tools that complement the activities of the State Department and USAID. As such, it is important that we use our influence and leadership to build partnerships and coalitions that collectively seek effective, long-lasting solutions, which is why I am concerned over the cuts being considered by the new House Republican majority for Fiscal Year 2024. Such cuts would cripple U.S. efforts to invest in the Sustainable Development Goals, the framework agreed by every country to tackle shared challenges like gender inequality, extreme hunger and poverty, and threats to public health.

We have many issues to discuss today. I look forward to your engagement with our subcommittee.

I yield back.