[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] THE STATE DEPARTMENT AND USAID FY 2020 OPERATIONS BUDGET ======================================================================= HEARING BEFORE THE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS OF THE COMMITTEE ON FOREIGN AFFAIRS HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ JULY 11, 2019 __________ Serial No. 116-50 __________ Printed for the use of the Committee on Foreign Affairs [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] Available: http://www.foreignaffairs.house.gov/, http://docs.house.gov, or http://http://www.govinfo.gov ___________ U.S. GOVERNMENT PUBLISHING OFFICE 36-769PDF WASHINGTON : 2019 COMMITTEE ON FOREIGN AFFAIRS ELIOT L. ENGEL, New York, Chairman BRAD SHERMAN, California MICHAEL T. McCAUL, Texas, Ranking GREGORY W. MEEKS, New York Member ALBIO SIRES, New Jersey CHRISTOPHER H. SMITH, New Jersey GERALD E. CONNOLLY, Virginia STEVE CHABOT, Ohio THEODORE E. DEUTCH, Florida JOE WILSON, South Carolina KAREN BASS, California SCOTT PERRY, Pennsylvania WILLIAM KEATING, Massachusetts TED S. YOHO, Florida DAVID CICILLINE, Rhode Island ADAM KINZINGER, Illinois AMI BERA, California LEE ZELDIN, New York JOAQUIN CASTRO, Texas JIM SENSENBRENNER, Wisconsin DINA TITUS, Nevada AMY WAGNER, Missouri ADRIANO ESPAILLAT, New York BRIAN MAST, Florida TED LIEU, California FRANCIS ROONEY, Florida SUSAN WILD, Pennsylvania BRIAN FITZPATRICK, Pennsylvania DEAN PHILLIPS, Minnesota JOHN CURTIS, Utah ILHAN OMAR, Minnesota KEN BUCK, Colorado COLIN ALLRED, Texas RON WRIGHT, Texas ANDY LEVIN, Michigan GUY RESCHENTHALER, Pennsylvania ABIGAIL SPANBERGER, Virginia TED BURCHETT, Tennessee CHRISSY HOULAHAN, Pennsylvania GREG PENCE, Indiana TOM MALINOWSKI, New Jersey STEVE WATKINS, Kansas DAVID TRONE, Maryland MIKE GUEST, Mississippi JIM COSTA, California JUAN VARGAS, California VICENTE GONZALEZ, Texas Jason Steinbaum, Staff Director Brandon Shields, Republican Staff Director ------ Subcommittee on Oversight and Investigations AMI BERA, California, Chairman ILHAN OMAR, Minnesota LEE ZELDIN, New York, Ranking ADRIANO ESPAILLAT, New York Member TED LIEU, California SCOTT PERRY, Pennsylvania TOM MALINOWSKI, New Jersey KEN BUCK, Colorado DAVID CICILLINE, Rhode Island GUY RESCHENTHALER, Pennsylvania Nikole Burroughs, Staff Director C O N T E N T S ---------- Page STATEMENTS SUBMITTED FROM COMMITTEE MEMBERS Opening statment submitted for the record from Chairman Bera..... 4 WITNESSES Perez, Honorable Carol Z., Director General of the Foreign Service and Director of Human Resources, Bureau of Human Resources, U.S. Department of State............................ 12 Pitkin, Douglas, Director, Bureau of Budget and Planning, U.S. Department of State............................................ 16 Nutt, Frederick, Assistant Administrator, Bureau for Management, United States Agency for International Development............. 20 Leavitt, Bob, Chief Human Capital Officer, United States Agency for International Development.................................. 24 APPENDIX Hearing Notice................................................... 54 Hearing Minutes.................................................. 55 Hearing Attendance............................................... 56 RESPONSES TO QUESTIONS SUBMITTED FOR THE RECORD Responses to questions submitted for the record to Ms. Perez from Representative Bera............................................ 57 Responses to questions submitted for the record to Mr. Pitkin from Representative Bera....................................... 81 Responses to questions submitted for the record to Mr. Nutt from Representative Bera............................................ 107 Responses to questions submitted for the record to Mr. Leavitt from Representative Bera....................................... 119 Responses to questions submitted for the record to Mr. Pitkin from Representative Omar....................................... 132 Responses to questions submitted for the record to Mr. Nutt from Representative Omar............................................ 138 THE STATE DEPARTMENT AND USAID FY 2020 OPERATIONS BUDGET Thursday, July 11, 2019 House of Representatives, Subcommittee on Oversight and Investigations, Committee on Foreign Affairs, Washington, DC The subcommittee met, pursuant to notice, at 3:19 p.m., in room 2172, Rayburn House Office Building, Hon. Ami Bera (chairman of the subcommittee) presiding. Mr. Bera. The subcommittee will come to order. We meet today to discuss the State Department and USAID Fiscal Year 2020 operations budget. Without objection, all members may have 5 days to submit statements, questions, extraneous materials for the record subject to the length limitations in the rules. I will now make my opening statement and then turn it over to the ranking member for his opening statement. I have noticed that the Republicans are a little bit faster getting over here after votes. Yes, I want to thank the ranking member, Mr. Zeldin, members of the subcommittee, and our witnesses for joining us for today's hearing on the Administration's proposal for the Fiscal Year 2020 operations budget. I also want to thank the witnesses for being accommodating knowing that our vote schedules interfered with our original hearing schedule, and thank you for accommodating us today. The topics covered in this hearing--I have said this previously--are not necessarily what is going to make cable news every night, but they are of incredible importance when we think about how best we can serve the United States of America, our interests around the world, and our foreign policy. The foundation of any real successful organization always starts with the right people and making sure they are equipped with the right resources and ability to do their jobs effectively. And as I have said multiple times previously and want to reiterate, we are proud of the men and women around the world that serve us in our diplomatic corps, at our embassies, in our development work around the world, and these are patriotic Americans. I once again want to just reiterate the work that they do and how important it is to American foreign policy and American strength. The last few months, as the subcommittee chairman, I have had the pleasure of meeting with many individuals, both in the current administration but also in prior administrations, both Republicans and Democrats who care about the work of the State Department and USAID deeply. Ambassador Perez, I want to thank you for also taking the time to meet with us but also Ambassador Green and others from USAID. We really do agree that, when we are thinking about our operational effectiveness, we want to make sure we are appropriately resourcing both State and USAID and giving them the tools. When we think about that, an administration's budget is a reflection of those priorities. I do have some concerns about the Fiscal Year 2020 budget request, which includes the 8-percent cut in diplomatic programs account and an 18-percent cut to the embassy security account. That said, as we, think about the world that we are in, our foreign policy, our development work really did serve us very well in the post-World War II and Cold War World. But we also know that we are in a new world in the 21st century. As we think about budget priorities, as we think about personnel, as we think about programming, efficiencies, and expertise, we really do have to, make sure we are giving those men and women the tools and skills to succeed in the 21st century. We know those challenges are vast, from large demographic shifts to fragile States in sub-Saharan Africa to the threat of pandemics. This is an increasingly complex landscape. Whereas, during the cold war, we could focus on traditional countries and global powers, we know now we have other emerging threats and non-State actors that we have to be conscious of and nimble in addressing. We also know in the era of cybersecurity, et cetera, we have to equip the workers at State Department and USAID with the right IT systems to ensure that they have got appropriate data flows and protection of that information. As we do some of the questioning--and I know, Ambassador Perez, we have talked about this--is I have had concerns about the persistent vacancies for career State employees that have been identified in multiple GAO reports, not just in this Administration but in prior administrations as well. And we know that those persistent vacancies certainly put challenge and stress on the existing work force that leads to lower morale and less efficient productivity. And I have talked to Secretary Pompeo about that as well. So in my questioning that is something that is certainly we will want to talk about. And then we have also talked about how we have to recruit and retain the best and the brightest. I know the Secretary, when he was in front of the full committee, talked about his efforts to go out there and make a career in diplomacy or development, a sought-after field, to sell that to campuses, et cetera. And I think that is, certainly incredibly important. I know he has come out with a new ethos at the State Department. Ambassador Perez, I think you are in charge of executing on that ethos, so we can certainly talk about that a little bit as well. But I also want to make sure this is a partnership. Congress in its oversight capacity is a partner with the Administration, making sure that, as we are authorizing and appropriating funds, that we are giving the full attention to the personnel, the full resources to those folks, and those resources are getting out to those individuals in the most efficient manner. So certainly that is something that we have talked about, and Mr. Zeldin and I have talked about as well, how we can make sure the folks that we are sending out there to do the mission of the United States of America are equipped to be successful. With that, I always look forward to working with the Ranking Member Zeldin and our Democratic and Republican subcommittee members and the witnesses to ensure the American people are served by a U.S. diplomatic and development corps that delivers the best outcomes and ensures continued American leadership for decades to come. I now recognize Ranking Member Zeldin for 5 minutes to deliver his opening statement. [The prepared statement of Mr. Bera follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Zeldin. Thank you, Mr. Chairman. And thank you to all of our witnesses for being here, especially our men and women who work at the State Department and USAID. The ranks are filled with great Americans who take their job very seriously. They carry out their roles very professionally, and they make America proud. Today's hearing is an important opportunity for this committee to examine the Fiscal Year 2020 budget for the State and USAID. It is important for these agencies to have the support that they need from Congress as well as the oversight appropriated to fulfill our constitutional Article I responsibilities. In bipartisan fashion, this committee should always work to ensure transparency and accountability at these important U.S. agencies regardless of whoever is the President at any given time, the Secretary, or Administrator, and regardless of political affiliation. At the end of the day, what is most important is that the State Department and USAID are as effectively and efficiently as possible fulfilling their critical missions at home and around the globe. An integral part of forwarding the State Department and USAID's important mission is ensuring they have the financial resources and qualified human resources they need. The State Department has had tremendous foreign policy accomplishments in pursuit of a stronger and more effective foreign policy without apology for American exceptionalism, standing shoulder to shoulder with allies like Israel and pushing back on Iranian aggression and more. We are encouraged by the State Department's efforts to efficiently review and then eliminate or fill many special envoy positions. I am also encouraged to see a great incoming class of Foreign Service officers to fill existing vacancies that are critical to fill. While I want to commend the Department wherever and whenever it exceptionally fulfills its mission, there will always be more to address from budgeting to personnel and foreign aid transparency. We would like to see the most efficient and effective H.R. management for State Department and USAID employees, transparency of foreign assistance programs, and efficient management of the budget, including large, unobligated balances. When it comes to the hiring and firing of the State Department employees it is also a priority of this committee to address any mismanagement allegations ever, ensuring fairness in the process and sufficient whistleblower protections. Last year, a report by the Government Accountability Office found that there is an approximately $31 billion slush fund sitting at the State Department. While I understand the need for a rainy day fund, moving around billions of dollars from 1 year to the next between different accounts makes it difficult for Congress to conduct proper oversight over funding. This is evidenced by the fact that in the past this money has wrongly been used to negotiate with terrorists and facilitate hostage payments. For example, under the last administration, $1.7 billion in cash was delivered to the Iranians as a ransom payment for the release of American prisoners, a clandestine transaction Congress had absolutely no notice or oversight over. State, USAID, and others must always be as forthcoming as possible producing transparent budgets that reflect the real needs of the Department and, most importantly, the real needs of the American people. We must employ greater, accurate oversight and accountability internally within the State Department as well as over the foreign assistance programs that advance our Nation's values around the globe. I thank you all for being here today. I look forward to your statements. And while we will have some tough questions at times, I am sure none that you will be incapable of answering. The message that we would not want lost for all the men and women in your ranks is how much we appreciate their service and what they do to keep America safe to be a leader around the entire globe. Having visited many of your men and women who are overseas, while we often talk about men and women who are in uniform, we thank them for their service, the sacrifice away from their families, at times it could be for 3 months, 4 months. At times, you might be deployed for 21 months. We have a lot of State Department, USAID officials who will tell you about many, many years, multiple tours in different cities away from their families. So, while we appreciate that person in uniform who might be on their tenth deployment and our heart is with them and their families at home, what should not be lost are the amount of people in your ranks who are thousands of miles away from home often times maybe for an entire career. So, wherever they are watching us, we are asking these questions and hearing your statements with hopefully their best interest in mind always to ensure that they have the resources that they need, the support that they need in order to be more successful with their mission. And, with that, I yield back. Mr. Bera. Thank you. I am pleased to welcome our witnesses to today's hearing. We are joined by four public servants from State Department and USAID. From the State Department, we are joined by Ambassador Carol Perez, who serves as Director General of the Foreign Service as well as its director of human resources; and Mr. Douglas Pitkin serves as the director of Bureau of Budget and Planning. From USAID, we have Mr. Frederick Nutt is the Assistant Administrator for the Bureau of Management, and Mr. Bob Leavitt is USAID's Chief Human Capital Officer. I will ask the witnesses to limit their testimony to 5 minutes. Without objection, your prepared written statements will be made a part of the record. Thank you so much again for being here and for accommodating us. I now ask that Ambassador Perez deliver her opening remarks. STATEMENT OF THE HONORABLE CAROL Z. PEREZ, DIRECTOR GENERAL OF THE FOREIGN SERVICE AND DIRECTOR OF HUMAN RESOURCES, BUREAU OF HUMAN RESOURCES, U.S. DEPARTMENT OF STATE Ms. Perez. Thank you very much, Mr. Chairman, Ranking Member Zeldin, and distinguished members of the subcommittee for inviting me here to discuss the fiscal 2020 State Department budget request. As Secretary Pompeo noted when he testified before the committee at the end of March, we have a remarkable work force and doing a very important mission. At a time of growing global complexity and competition, a strong department is critical to our success as a Nation. That is why, over the past year, Secretary Pompeo has prioritized putting the team back on the field. Under his leadership, we have welcomed 827 Foreign Service employees, and we have set our Foreign Service and Civil Service target staffing levels at 454 employees above the December 31, 2017, on-boarding staffing levels specified in the congressional fiscal 2018 appropriations. We have also stepped up employee engagement and communication and taken steps to expand training and professional development, fill vacancies, and reward the work being done by our employees. As Director General of the Foreign Service and director of human resources, I will focus my remarks on the $2.8 billion of that request for human resources and the Department's global work force. Our people, Foreign Service, Civil Service, family members, locally employed staff, are our greatest resource, and they deserve our full support. These women and men work both at home and abroad in service to the country. Our American personnel swear an oath to protect and defend the Constitution, often at great sacrifice to themselves and their families. Our locally employed staff sometimes also incur great risk working with and for the United States. The human resources budget request will support salaries for our approximately 25,000 domestic and overseas American employees. Our almost 14,000 Foreign Service employees, both our officers and specialists, are our forward-deployed force doing everything from opening markets for American companies to helping American citizens overseas. Our over 11,000 Civil Service personnel are the Department's institutional memory, continuity, and subject- matter experts based mostly in Washington but also at our passport, security, and foreign mission offices across the country. Our eligible family members are a vital source of talent in our embassies overseas. Leveraging their skills is good for morale and a force multiplier in carrying out the Department's mission. I noted earlier the progress we have made in Foreign Service hiring and staffing. On the Civil Service side, we are on track to return to hiring levels significantly above December 2017 levels specified by Congress, but it has been a little slower due to the decentralized nature of Civil Service hiring. The fiscal 2020 request will support continued development of the talent and capacity of our Civil Service work force that is better prepared to address the challenges of today's international environment. Our 50,000 locally employed staff are in the mainstay of our U.S. diplomatic operations abroad, and we continue to look at ways to ensure we can attract and retain the best local talent. Mr. Chairman, successful organizations share one characteristic: they adapt. And in order to remain an employer of choice, we must innovate and effectively compete with the private sector to recruit, retain, and empower the best talent. As Director General of the Foreign Service and Director of Human Resources, I have made innovation a key focus area. We are prioritizing removing barriers and streamlining processes so our employees can focus on their core responsibilities. My team and I are also looking closely at improvements to our policies and procedures so we can better support our people. In that regard, the top request from the work force is for paid parental leave. And the White House has been vocal in its support for paid parental leave, and employees have welcomed the recently proposed amendment to the National Defense Authorization Act of 2020 providing all Federal employees with 12 weeks of paid family leave. As a 31-year, almost 32, public servant, I am thrilled to see the growing bipartisan support for this important endeavor, whose time has come. If we are to live up to our aspiration of being a model employer for our people, we should not have to choose between our families and the career that we love. I would close by saying that the 75,000 strong Department work force is a winning investment for our Nation, and we deliver results for the American people every day. Thank you for the opportunity to be here, and I look forward to answering your questions. [The prepared statement of Ms. Perez follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Bera. Thank you, Ambassador Perez. Mr. Pitkin. STATEMENT OF DOUGLAS PITKIN, DIRECTOR, BUREAU OF BUDGET AND PLANNING, U.S. DEPARTMENT OF STATE Mr. Pitkin. Thank you, Mr. Chairman, Ranking Member Zeldin, and distinguished members of the subcommittee for inviting us to discuss the 2020 State Department and USAID budget requests. As Secretary Pompeo also noted in his March testimony, our budget is designed around our National Security Strategy to achieve our foreign policy goals. The top line request of $40 billion combined for the State Department and USAID puts us in a position to do just that. This funding protects our citizens at home and abroad, advances American prosperity and values, and supports our allies and partners overseas. We make this request mindful of the burden on American taxpayers and take seriously our obligation to deliver exceptional results on their behalf. I will focus my remarks on the $13 billion diplomatic engagement appropriations request managed by the Department of State, which is distinct from the foreign assistance side of the budget, which my colleagues also will speak to. This comprises about one-third of the total budget request for 2020 and supports the Department's work force, including the personnel resources Ambassador Perez mentioned, our public diplomacy programs, our global management platform of our overseas embassies and consulates, embassy construction, Diplomatic Security, and our assessed contributions to the United Nations and other international organizations. This request is nearly a $340 million increase over the Administration's Fiscal Year 2019 request, about a 3-percent growth rate, but it would be about 15 percent below the amount Congress enacted for 2019. We have submitted for the record the State USAID budget fact sheet for the record which outlines many of the specific numbers in our request, but I will highlight three of the major priorities. Our three major pillars of our appropriated funding that we use to manage the Department are $5.5 billion for diplomatic staffing, operations, and programs; $5.4 billion to secure or protect U.S. Government personnel overseas and domestically; and $2.1 billion for assessed contributions to the United Nations, including U.N. peacekeeping and other organizations like the OAS. The funding for diplomatic staffing, operations, and programs sustains our global work force, as the Ambassador mentioned, including our Americans and locally employed staff. And, again, the budget request would sustain our staffing at or above current levels consistent with the direction in the current appropriations. We are going to make continued investments in training and human capital development as well as continued support for public diplomacy programs, which are vital to influencing foreign opinion and countering misinformation about the United States. Highlights within this request include a new consolidated Bureau of Global Public Affairs, which provides greater efficiency and effectiveness in managing our public diplomacy programs and outreach, as well as a total request of $75 million from the Global Engagement Center as authorized by the NDAA, a $20 million increase in the appropriated funds for the Department over current levels. Funding for our management platform includes increases for our regional bureaus to support new embassies and consulates that are scheduled to open up over the next 18 to 24 months, and this category of funding also underwrites most of our $2.5 billion of information technology spending to help support and sustain the new Chief Information Officer's efforts to modernize our information technology platform, including cloud migration, consolidated software licensing, and greater customer engagement across the Department's IT platform. Our $5.4 billion request for USD personnel security is primarily for the Bureaus of Diplomatic Security and Overseas Building Operations. Highlights include a $60 million increase for cybersecurity, a 38-percent increase over current levels, to allow both DS and our IRM/CIO bureau to help increase our cybersecurity programs to protect our network's data and IT infrastructure. We have also requested $8 million for our Bureau of Medical Services to update embassy inventories of medical countermeasures to counter potential WMD and chem-bio threats. In addition to direct appropriations, the Department anticipates spending nearly $3.8 billion in consular revenues. These are the fees that we collect from visas and passports to help issue visas to overseas citizens and issue passports to American citizens as well as provide citizen services to Americans overseas. We anticipate collecting about $3.9 billion in revenues, and this is an area for which we are continually looking at ways to more efficiently use both technology and personnel to operate our consular services. Our request does include some minor fee adjustments to help address some structural imbalances in our revenue stream that we are happy to discuss as part of the discussion. In closing, I want to assure you that we are committed to using taxpayer dollars effectively. With continued congressional support, we will continue to advance our foreign policy priorities at home and abroad. And I look forward to answering your questions. [The prepared statement of Mr. Pitkin follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Bera. Thank you, Mr. Pitkin. Mr. Nutt. STATEMENT OF FREDERICK NUTT, ASSISTANT ADMINISTRATOR, BUREAU FOR MANAGEMENT, UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT Mr. Nutt. Mr. Chairman, Ranking Member Zeldin, and distinguished members of the subcommittee, thank you for inviting me to discuss USAID's Fiscal Year 2020 operating expenses and capital investment fund budget request. Today I will be summarizing the written statements from Mr. Leavitt and myself. Since joining USAID in April this year, I have been impressed by the Agency's dedication to delivering development solutions to uplift some of the world's most vulnerable people while representing American values and advancing our foreign policy and national security interests. Administrator Green's vision for the Agency partners us with professional experts, local organizations, and host country governments to aid in their journey to self-reliance. For Fiscal Year 2020, the request to support the Agency's global operations is almost $1.5 billion, which includes nearly $1.3 billion for operating expenses, approximately $610 million for salary and benefits for U.S. direct-hire staff, and $198 million for the capital investment fund. USAID recognizes the Agency's success is directly linked to a skilled, committed, and resilient work force so we have enacted human resources transformation elements that support a 21st century work force, such as prioritizing recruitment and hiring, updating archaic personnel systems and practices, and expanding opportunities to diversify our work force through programs like the Donald M. Payne International Development Graduate Fellowship Program. Our H.R. successes, such as the debut of a new employee portal, the redesign of employee performance management, streamlining Foreign Service officer assignments and bidding, and the staff care program are described in Mr. Leavitt's written testimony. Overall, USAID requests $19 million dedicated to secure and protect staff and facilities. At headquarters, USAID has implemented the Washington real eState strategy, which is modernizing dated work spaces and technology while consolidating short-term leases from four buildings into two with anticipated savings of up to $2.5 million by 2025. The Agency has become a leader in Federal IT modernization and has enhanced cybersecurity protections. Over $143 million is within the operating expenses and capital investment fund budget request to upgrade information technology systems and data platforms. USAID also expects to consolidate multiple agency systems through development information solution, which would save the Agency approximately $2.2 million. USAID has used legislation to streamline budget execution. Thanks to FITARA, the CIO now has statutory authority to centrally manage all IT acquisitions and to implement other measures since being realigned to report directly to the Administrator. In December 2017, the Administrator announced a zero- tolerance policy for audit backlogs. The Agency had 42 open GAO audit recommendations and 848 open OIG audit recommendations at that time, of which almost 100 were in backlog. We cleared the backlog ahead of schedule by May 2018, allowing us to reach the first agency transformation goal. USAID is already a leader in the Federal Government in managing agency risk and is one of only five CFO Act agencies to achieve the highest score of managing risk for all five functions in a 2018 risk management assessment. Additionally, the Agency has adopted an enterprise risk management framework. A key principle of our approach to our ERM implementation is the Agency's risk appetite statement, which provides staff with broad-based guidance on the amount and type of risk the Agency is willing to accept. In the fall of 2018, we released our acquisition and assistance strategy homing in on engagement and procurement reform to expand the local partner base. We launched the new partnerships initiative to make it easier for new and underutilized partners to work with us. We seek your support for the Agency's request to establish an acquisition and assistance working capital fund and transfer authorities for the IT working capital fund and adaptive personnel project. The acquisition and assistance working capital fund is a fee-for-service model similar to the State Department model, which would provide a consistent funding stream dedicated to management and oversight. It would permit the Agency to align and balance the work force to match evolving policies and priorities. As part of the Agency's effort to implement Modernizing Government Technology Act of 2017, the IT working capital fund transfer authority would allow us to obtain consistent funding to support important IT requirements. USAID is also seeking the necessary transfer authority to implement a pilot of adaptive personnel project allowing us to use program funding to hire term-limited Civil Service personnel as further discussed in the chief human capital officer's written testimony. With your support of the Agency's request for these authorities, USAID would be able to use appropriated resources to their fullest extent. These authorities provide the necessary flexibility to respond to the urgent, complex, global development and humanitarian crises as well as the operational resources needed to respond quickly. Your continued support means we will remain equipped to work with our partners to help countries in their respective journeys to self-reliance. Thank you, and we look forward to answering your questions. [The prepared statement of Mr. Nutt follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [The prepared statement of Mr. Leavitt follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Mr. Bera. Thank you, Mr. Nutt, and thank you, Mr. Leavitt. I will now turn to my opening questions. I will then recognize the ranking member and our other members for 5 minutes for the purposes of questioning the witnesses. I will now recognize myself. Ambassador Perez, in my opening statement--and I think when we had a chance to meet--and I do think I brought this up with Secretary Pompeo, I am really deeply concerned about the drop in morale at State Department. As I noted a few months ago, State is quickly falling to the bottom of the polls of the ratings of best Federal agencies to work at. In my opening, I touched on the GAO report. Part of that certainly is the chronic vacancies that exist at State and the stress and pressure that puts on the existing work force that, obviously have to pick up the workload for others, and that is certainly of some concern how we address that. And it is not-- as was pointed out in the GAO report, not unique just to this Administration. You have seen that in prior administrations. The other concern is, we have seen the registration for the Foreign Service officer tests. They saw a 22-percent decline between October 2017 and October 2018. We are still getting very qualified folks taking the test, but, again, there is some concern of--this NBC News report that suggested that fewer people were actually taking the test. I know you are in charge of implementing Secretary Pompeo's new State Department ethos, and, what I would like to ask as an initial question is, what does this new ethos mean in practice? How will it address and boost morale and make the State Department more attractive to that next generation of work force and help us recruit and retain? And, outside of just additional training, what does implementation of this ethos look like? Ms. Perez. Mr. Chairman, thank you very much for that question. And, in fact, I would like to touch not only on the ethos statement but on some of the other comments that you made in your opening statement, if that is OK with you. Mr. Bera. That would be fine. Ms. Perez. OK. So the ethos statement is a short and I think very powerful statement that actually embodies the values that the Department has had for many, many years. And we have had them in a variety of places, but we have never actually had a statement, something that everybody could look to and understand this really does embody our values, our culture. The other thing that struck the Secretary when he arrived is that we do not have a common way to share our culture. So, for example, Foreign Service officers join in cohorts. We come in classes. So you immediately have a group of anywhere between 40 and 80 people who study together, who learn together, and they understand the Department together. Civil Service, it is a 1-week orientation course, and there is no timeline for that. Political appointees, no matter what party, do not get any training. So the idea of the ethos is, first of all, to take all of these values you already have, put them into a statement that everybody could understand and recognize. A big part of this will be training. We are rolling out a training course this year. And the idea is to bring everybody together, whether or not you are a civil servant, a Foreign Service officer, a political appointee, a family member, you would have an opportunity to sit down together and talk about what it means to work for the best diplomatic team in the world. And we have never had that. So that is the intent. And the idea, I think, is that when people understand that they will have a better understanding of their colleagues. Doug is a civil servant, I am Foreign Service, but we need to work together like this. That happens at our level, but it may not happen to people just joining. It may not happen to people in younger ranks. So that is really the intent of the ethos. Let me just talk a little bit about the FEVS, and then I will go onto the GAO report. I think that the Federal Employment Viewpoint Survey is an incredible tool for managers and institutions to use, because it does actually allow us to drill down to a unit level and look at issues that employees care about. So that might be accountability. It might be how we reward people. This year, we are up 10 percentage points over last year. Forty percent of our population completed that. So that was a huge push on our part because what we will do then is make sure that people get the results and that there is a conversation between leadership and employees about where the Department is, where our strengths are, and where we need to improve. And then, finally, on the GAO report, that report took data from 2018, which was before Secretary Pompeo arrived. But I would acknowledge, it talks about the fact that we have had vacancies overseas for at least 10 years. Part of that is just the churn. Part of it is the fact that we rotate jobs all the time, we have people in training, so there is always a little bit of a gap for that. We are trying to be as creative as possible to fill those vacancies. So it is not necessarily that we need more permanent Foreign Service officers or specialists, but to use our family members to the extent that we can, to use programs like the Consular Fellows Program, to use our hard-to-fill exercises, our rotational opportunities for civil servants to work overseas to try to fill those gaps. The other thing we are going to do is just make sure that we are focused on making sure that those posts that are really under stress that we have the ability to go ahead and to respond to that. Mr. Bera. Great. Thank you. I am going to use a little bit of the chair's prerogative, but I will make sure you guys have a little bit of extra time just to ask a followup question, if that is OK. One thing that, when I am thinking about the chronic vacancies, I become aware of an unclassified Presidential instruction that went out to all the embassies and missions requiring the chiefs of mission to take a look at these chronically vacant positions that have been vacant for longer than 2 years. I have not seen the full cable, but it seems like every agency with personnel at an embassy like State, USAID, CDC, FBI, DHS has been asked to identify existing vacancies and to discuss whether or not to abolish some of these vacancies permanently with the Ambassador. I understand the importance of taking a look at, if there are positions that chronically are not filled; any organization is certainly within its right to take a look and say, well, does this position really need to exist? Ambassador Perez, can I get your commitment from you to perhaps provide my staff with that cable in full so we can take a look at it as well? Ms. Perez. Yes. Sir, I have to apologize; I am not sure I have seen that cable. But I will find it and we will provide it to you. Mr. Bera. Great. Thank you.With that, I will yield back. Mr. Zeldin. Thank you, Mr. Chairman. Mr. Bera. I will recognize the ranking member for 5 minutes to question the witnesses. Mr. Zeldin. Secretary Pompeo recently merged the Bureaus of International and Informational Programs and Public Affairs, which will save money and better align our resources for the mission of the Department. However, Congress has been informed that there is still a lot of duplication in terms of human resources and executive support functions inside the public diplomacy family at State that could be eliminated. If you could speak to whether or not State is currently looking at this issue in an effort to make it more efficient. Mr. Pitkin. Yes, we are certainly aware of some of the feedback we received when we put forward the proposal in the December and spring timeframe. And I know that we have committed to taking a look at the overall executive support structure for those bureaus. I think part of the thinking is we want to complete the reorganization. There is still a lot of work to actually realign the positions and the resources. It is not just within the Public Affairs Bureau. We are also moving the Office of the Historian to FSI, moving some functions to the ECA Bureau, as well as to the Under Secretary's Office. So I think our effort is to complete the reorganization as initially notified so that all the personnel and staffing structure is in place as we start Fiscal Year 2020 and then, based on experience, look at where we can find additional opportunities for consolidation or look at the executive support function. So I think there are also some staffing gaps there, and so I think we are mindful that the same staff who we would be looking at how to rightsize or rationalize those functions are the same ones doing all the work to go through all the details of the finance and the staffing numbers. So we have committed to look at that. I know that the H.R. Bureau working with the public diplomacy team is looking at that as an issue, but right now I think we are trying to make sure we first complete the actions we have notified and received concurrence with and then come back with a potential proposal down the road. Mr. Zeldin. Yes. How is it going so far? Mr. Pitkin. Assistant Secretary Giuda's team is making tremendous progress. I think we are prepared to--the resources we are aligning now under the new function. Again, we have set a deadline to try to have as much of this done by the end of the Fiscal Year so we can startup Fiscal Year 2020 with a revised set. There is a tiger team with support from--extensive support from the management bureaus, certainly my bureau, the H.R. Bureau, the Management Policy Office. This really is a team effort not just on the public diplomacy side. So we regularly meet and engage with Assistant Secretary Giuda's team to make sure that we are providing all the support we can from the management side and then making sure that the staff working in the new bureau are getting everythng they need from us. We are pleased with the progress, but we are certainly planning to update the Hill and the committees by the end of the year, and certainly we are well aware of the interest in the executive support function. Mr. Zeldin. Thank you. Ambassador Perez, walk us through a little bit of the current state of the hiring and firing process. I mean, we hear of individuals, rumors something might get leaked to the media; it is best to go right to the source. And I guess just, generally, fill us in on the process. But specifically there was a video that came out. Are you familiar with the name Stuart Karaffa? There was a video of a State employee named Stuart Karaffa caught on a hidden camera proclaiming that he is part of the anti-Trump opposition and his job is to, quote, ``resist everything'' at, quote, ``every level.'' He said in the video, quote, ``I have nothing to lose.'' ``It is impossible to fire Federal employees,'' he says as he talks about doing political work in his cubicle. Are you familiar with this case at all? Ms. Perez. I think I may have seen the same stories published that you did but not intimately familiar with that case, sir. Mr. Zeldin. OK. If you could just walk us through the-- let's call it a hypothetical then. Can you just walk us through the process of how State handles cases like this? How hard is it? What additional tools do you need? Ms. Perez. So I think you are talking very broadly about how we deal with performance and conduct issues. Mr. Zeldin. Please. Ms. Perez. And we do have a--we have an office within H.R. that is called Conduct, Suitability, and Discipline. And, in fact, you will note in our budget request that we for 2020, I think, right, the one for last year--this year, we have asked for a doubling of the number of analysts that we have for that office. We did benchmark the Federal agencies, and generally, there is one conduct suitability analyst for every 500 employees in an agency. We have one for every 2,000. So that is the reason for the doubling. It is still going to put us at 50 percent of the staffing that we should have, but I think it is important for us to start to move in this direction. So we do follow all the principles that employees have. we do have two different personnel systems under title 5 and under title 22, and we do file those streams to make sure that the Agency has an opportunity to do the appropriate--whatever they may need to do in terms of conduct issues and also that there are the protections that each employee has as well because they are obviously both very important. And we do work closely with the Office of Civil Rights, the Office of the Inspector General and Diplomatic Security. They are actually the people that send us most of our cases, and so they are the ones that would do the investigations, provide us with information. It then comes to this division in my bureau that is responsible for sitting down, doing case review, and then making recommendations about appropriate discipline. This may be something better that if we were to send you some information to outline this because it is a little bit different for the two groups of employees. Mr. Zeldin. OK. For sake of time, I am going to yield back, but I believe there is going to be a second round so I might just pick up where we are leaving off. I yield back. Mr. Bera. Thank you to the ranking member. The gentleman from California, Mr. Lieu, is recognized to question the witnesses for 5 minutes. Mr. Lieu. Thank you, Mr. Chair. Ambassador Perez, thank you for your long history of public service. I would like to ask you questions about the lack of diversity in the State Department. My questions are not intended to assign blame. This has been happening, as across administrations, both Democratic and Republican, although it has been somewhat worse with this Administration. I am just trying to understand what the issues are and how we might be able to mitigate them. So, based on percentages from your own Department, it does show that there is a lack of minorities in the Foreign Service. And, for example, the senior levels, we know there was a decline for African Americans in the senior Foreign Service from 4.6 percent in September 2016 to 3 percent in March 2019. So my first two questions are: Why do you think the percentage is so low for minorities in the State Department? And what is the State Department doing, if anything, to try to make that better? Ms. Perez. Thank you for that question, Mr. Congressman. I think there is a couple of things that have happened. First of all, the Federal agencies were not really focused very much on diversity 15, 20 years ago or 25 years ago. And so what you see at the senior ranks is a reflection of those hiring practices that we had back then. When I, as a Foreign Service officer, that people look at me--I am, a female officer so, obviously, not an ethnic minority, but I consider myself a minority still. We have a lack of women in the senior service because 25 years ago there was not an emphasis placed on trying to attract women into the Foreign Service. So that is part of the issue at the senior ranks. And what happens is, because the numbers are small in the senior ranks, if somebody retires, if somebody leaves, our percentages obviously drop significantly and so you do see some of that. We have done a much better job over the-- in the last, 10 years or so. We continue to try our hardest. We have a network of 26 recruiters. We have 16 all over the United States, and they are there to recruit for diversity. We want diversity in the broadest sense, so it could be race and gender, ethnicity. It could be diversity in terms of geography. not necessarily everybody goes to the East Coast schools or, grows up on the East or West Coast. I am from the Midwest, went to a small college, and I have managed to succeed because I have been given this opportunity, these wonderful opportunities by the government. So we are trying our hardest. That is our frontline of defense is to--or offense, I should say, to go out and make sure that we are in touch with those populations. Our fellowship programs are extremely popular. In fact the two flagship are the Rangel and Pickering fellowships. Last year to this year, our number of applicants was over 1,600 for 60 positions. In the case of the Pickering, it was 170 percent increase over last year; and in the case of the Rangel, it was a 50-percent increase, over 50 percent increase. So our fellowship opportunities still are an incredible source for us. They have increased the rate of diversity hires since they started by 29 percent, which is very significant. We are looking at other ways we might have more fellowship programs. We also want to do this for our specialists because the honest truth is we get--we still have a very robust register of Americans who would like to be a Foreign Service officer. It is a little bit tougher on the specialist side. So we are looking at things like how to do IT fellowships, which would mirror those, but, again, looking to make sure that we increase diversity inside the Department. So part of it is recruitment, and the other part is retention. And for retention, we are doing a couple of things. We have started an unconscious bias course, which we are suggesting that hiring managers especially take, people that are sitting on our promotion panels so that they understand what unconscious bias is and how it affects people. We will have an online course available by the end of the year, at which point we will roll it out to our work force worldwide. And we also have a study from--funded by the Cox Foundation--that is going to look at barriers to the senior ranks for various groups of people who are not there now, women--certain cones--minorities. So that was just funded by the Cox Foundation. We hope to have some answers by the end of December. So I want to look at both the entry, obviously, but then the barriers. I think there are barriers that start before entry. We need to understand that better. And then to make sure once people are in, do they feel included, because it is not just diversity; it is inclusion. Somebody said to me, diversity is when you get invited to the party and inclusion is when you get invited to dance. And we want to make sure everybody is dancing. Mr. Lieu. Well, thank you. So let us know how we can be helpful. Mr. Leavitt. Congressman, can I add to that question for USAID? Mr. Lieu. Sure. Mr. Leavitt. The USAID has also been quite aggressive with regards to our diversity initiatives. Our hallmark program is the Payne Fellowship Program, which helps bring in incredible talent into the Foreign Service, particularly from groups not historically represented in international development. We have also been working with our Pathways Internship Program to make sure that we have significant minority representation. In addition to the diversity outreach programs and the engagements that we have with the universities around the country, we are also looking very deeply into the way that we manage our own processes, promotions, assignments for Foreign Service officers to make sure that we train everyone involved in implicit bias as well, and as well as looking very deeply at our demographics and who is at what level in our career services, Civil Service and Foreign Service, really testing ourselves to make sure that we are adequately represented at all levels. And we will gladly followup with you on the results of our analyses. Mr. Lieu. Thank you. We would appreciate the information. Mr. Bera. The gentleman from Pennsylvania, Mr. Perry, is recognized to question the witness for 5 minutes. Mr. Perry. Thanks, Mr. Chairman. And thanks for the panel for being here. I think my questions will probably go to Mr. Pitkin and Mr. Nutt initially. What I am looking at is the White House balances of budget authority document, total unexpended balances by agency. At the end of 2017, the unobligated number is 24,686. At the end of 2018, it is 27,022, and this is in millions, so--and then I guess it is projected at the end of 2019 to be 23,915. And I am wondering what happens to that and how you account for those funds at the end of each year. Well, let's start there. Mr. Pitkin. I think that is two parts. One is I think we recognize that the Department and AID both, since we operate global programs on a global platform, our appropriations have generally given us various forms of multiyear authority particularly for some of our larger, more complex programs. A good example of that is our Office of Overseas Building Operations, which maintains our overseas construction and maintenance program as no-year fiscal authority. And in order to make sure that we are fully funding projects upfront, when we start a new project, we fully budget for that project and ensure that we have the funding to obligate. So, for example, on the line item for the ESCM, Embassy Security Construction Maintenance account, that unobligated balance runs between $6 billion and $8 billion a year, reflecting on projects that have been approved, notified to Congress for which essentially we have put the money--committed toward a particular project but we do not obligate until we actually incur contract obligation that would meet the standard test for a fiscal commitment of resources. So actually a good chunk of the Department's unobligated balances are for those programs. Similarly, for example, Consular Affairs is a fee-based bureau, and they collect, as I noted earlier, about $3.8 billion annually. They only can spend money as it comes in. So, typically, we are rolling over about $2 billion at least from the end of one year to the next because we have to have the money in hand before we can expend it on personnel contracts and payroll. And so that is different perhaps than appropriation which we essentially typically have running on an annual cycle. Similarly, Diplomatic Security under Worldwide Security Protection under the Diplomatic Programs account, that is the no-year appropriation, and one of the major areas that DS spends its money on is guard services contracts to provide for the guard forces overseas. And there again, often we have periods of performance of up to 18 months, and so often DS is managing multiple contracting vehicles at one point in time. In some cases, particularly because it is no-year money, they are not as prone to having to move money through the procurement pipeline in the last few days of the year. So, for the Department at least, it really is those major categories of no-year accounts, no-year appropriations where, based upon the authorization of appropriation, the funds are available until expended. We still manage it year by year, but it does relieve--it does result in some of those end-of-year balances that you noted. The percentages are lower on the accounts with single-year appropriations so our core operating account Diplomatic Programs has a much more limited authority, so I think there are certainly lower balances there and so, again, it just depends on the account. Education and Cultural Exchanges account, our cultural programs, many of those projects are awarded at the end or beginning of the year, so, again, we have unobligated balances there as well. So we do track it at the end of the year. We submit quarterly reports to the committees to track account by account and show those balances. I meet with my team every month to go over it for our appropriations. If we sense it is going out of balance and the levels are spiking up above current rates, we certainly work with the relevant bureaus as well as our financial staff to see if there is something amiss in the underlying spend rate. So the percentages you cited are, I would say, within our historical norms, but it also is a reflection of our operating environment. I would also just say, again, many cases, we are receiving our appropriations in May and fairly late in the fiscal year. We appreciate that is just part of the dynamic we operate under. But to a certain extent, that multiyear authority gives us a little more flexibility to execute resources once they have been appropriated by Congress. Mr. Perry. And everything you said makes sense to me, although I do question, I mean, you said that the building, for instance, fund, for lack of a better phrase or term, is $2 billion. Mr. Pitkin. Annually, yes. Mr. Perry. Annually. But we are talking, I am looking at $24 billion, $27 billion, $23 billion, so there is, you know-- let's just be generous and say, there is $20 billion extra so to speak. I mean, does that--all that other stuff seems like not enough to count for $20 billion, and do you reconcile that down to zero every single year? Mr. Pitkin. Absolutely, we reconcile that. So we track it down for each appropriation. We work on looking at if we have unliquidated obligations, essentially balances that have not been spent. And there is a process that we go through each year. In fact, we are in the midst of it now as we go into the fourth quarter to reconcile and find out where those balances can be corrected. It is certainly something that our auditors and the Office of Inspector General focus on very closely, and so it is part of our responibility to focus on those balances. Again, I think it goes program by program for both the operational activities I mentioned earlier as well as some of our foreign assistance programs, whether it is FMF. We have a number of multiyear authorities as well. We are often--of course, we are working very closely with both our partners overseas as well as with the Congress to ensure that those programs are spent for the purposes that Congress intends. So I am confident that we can account for all that. The dynamics for each of the programs will vary depending upon what the actual spending is. Mr. Perry. Is there ever an opportunity where they are unobligated and something changes where they would not be obligated for the intent that Congress had and they would not be used? Mr. Pitkin. If there is a particular case, whether or not you have used occasionally, either the Administration or Congress has enacted rescissions of balances or transfers of balances. So there was a rescission, for example, of about $300 million of the Worldwide Security Protection Funds. That is for Diplomatic Security. That was funding provided in the Fiscal Year 2017 D-ISIS supplemental. And based upon conditions on the ground and the spend rate, there was a recognition by both Congress and OMB that some of those balances could be rescinded essentially as an offset to the appropriation for this year. And certainly, in my tenure, going back to the post- Benghazi period, we identified $1 billion of balances that could be realigned from our operations particularly in Iraq to help make investments in security operations in the rest of the world. So, when we have had an opportunity to reprogram or rescind balances to either create an offset or return funds back to the Treasury or to create an offset for another priority of shared interest with the Administration and Congress, we do that as well. Mr. Perry. Thank you, Mr. Chairman. My time is expired. Mr. Bera. Thank you. Since we are small group and we have got a little bit of time and I appreciate your coming down to the Hill, we are going to do a second round of questions, and I will recognize myself for 5 minutes. And let me direct questions to Mr. Nutt and Mr. Leavitt. I appreciate USAID operates in a pretty complex and demanding environment, and you really do respond to every humanitarian and development requirements in an increasingly complicated world. So I really do applaud the outstanding work that your work force does. But I also know that USAID's personnel system is equally complex, and USAID has a multitude of hiring mechanisms. As a result, some of our best people serving in hardship posts do not often qualify for life or health insurance or sometimes have to quit and reapply for their jobs every few years. What are some things that Congress could do to simplify these authorities and mechanisms? Mr. Leavitt. Thank you very much for your question, Chairman Bera. It is an honor each day to work with our colleagues and to support what they do around the world. On our side, we have a complex work force. We have employees who work under multiple mechanisms with multiple authorities, and it is not unusual for one supervisor to manage people on four or so different mechanisms. It is an inefficient process. On our side, we do request your support for adaptive personnel project. Our adaptive personnel project seeks to pilot 300 positions for our health workers, for our humanitarian workers, and for those that work in crisis situations. Specifically, what we are looking for is a transfer authority so that we can make this pilot effort a reality. What this will allow us to do is to rely less on some of our other employment mechanisms in order to best support our work force, particularly those that are working in very difficult environments. In addition to that, overall we do request the transfer authority also for our IT work force working capital fund, and we also request the authority to establish a working capital fund for acquisition and assistance. These three requests for the capital working funds, assistance, and acquisition as well as for IT, as well as for the adaptive personnel project is critical for us being adaptive and agile in responding to the needs worldwide. Mr. Bera. Well, thank you for that. And, Mr. Leavitt, I would ask you or your staff to certainly meet with my staff, and we can try to see what we can do to empower USAID and the folks that work for you in a more efficient way. Ambassador Perez, I am glad you touched on something that is in the NDAA bill that we will be voting on, I imagine, tomorrow. Paid family leave for Federal employees. And certainly when you and I met and we talked a little bit about how we retain kind of those mid-career employees, the 35- to 40-year-olds, who are our next generation of senior diplomats, and the demands of repeated postings overseas, et cetera, for someone who may want to start a family. We ask the private sector to provide paid family leave, yet we do not do it for our personnel. And you touched on it. Can you, talk about what something like that would mean for those mid-career folks and the morale, as well as our ability to retain this talent? Ms. Perez. Yes. Thank you very much, Mr. Chairman. As you and I discussed when we met before, one of the things that I did when I came on board 5 months ago was to step up engagement. And we have this innovation portal, and we ask people to send us their ideas. We received over 400 now. We launched it May 15th. The vast majority, when we looked at workplace issues--and this is all the retention, this is all about making the State Department the best workplace possible-- were about things like paid parental leave. These are generally coming from--as you said, these are relatively new employees. They do not have enough time in Federal service to have sick leave, to have annual leave. We obviously allow people to advance--get advanced leave up to a year at a time, all according to the rules and regulations, but it is just not enough. We have a leave bank, as many other agencies do in town, but you have to be out of leave before you can actually get leave paid. So 12 weeks would be ideal in order to have families be together. I raised three children in the Foreign Service, and it is tough. And we are away from families. We are away from our support systems. When you move every 1 to 2 to 3 years, you have to make new friends; you have to have a new medical system. So this would be something that I think our work force would really greatly appreciate. Mr. Bera. Well, again, the NDAA that we will be voting on does have paid family leave for Federal employees. So look forward to continuing to work with you on that. With that, I will recognize the ranking member for 5 minutes to question the witnesses. Mr. Zeldin. Thank you, Mr. Chair. And, Ambassador Perez, so picking up where we had left off, with regards to Stuart Karaffa, if that is something that we can followup with after this hearing, we would just like to know more details as far as what happened in that case. Did he get administrative leave? How long did it take to fire him? Is that a---- Ms. Perez. I actually have some information, because I have this crackerjack staff, and they must be watching this hearing, so they did send me something. And my apologies, that must have happened just about the time I arrived. I do not remember the exact date, and so I was not, personally involved. Mr. Zeldin. Great. Ms. Perez. So this individual had his security clearance suspended immediately after we became aware of the incident, and after that, he resigned. Had he not, Diplomatic Security would have continued the investigation, and he would have been suspended without his clearance while that investigation was concluded. After that investigation was concluded, then it would have been up to my office to determine what the appropriate discipline would have been, and it could have been anywhere from a reprimand to suspension to removal. But because his security clearance was suspended immediately, he opted to resign, and that was the end of that investigation. Mr. Zeldin. OK. Thank you. Are you familiar with a person named Yleem Poblete? Ms. Perez. I met her once. She was an assistant secretary for one of the bureaus in the building. Mr. Zeldin. And she is no longer at the State Department? Ms. Perez. Yes. Mr. Zeldin. Do you know anything about why she is not there anymore? Ms. Perez. Sir, I do not. I am responsible for career Foreign Service but not political appointments. That is a handled by the Office of White House Liaison. Mr. Zeldin. Mari Stull, are you familiar with her case? Ms. Perez. I am aware of name. But she was not--again, another noncareer employee. And the division that I am responsible for is career, but not for the noncareer. So the Office of White House Liaison would be--would have knowledge. Mr. Zeldin. Got it. So Stuart's case would be one that would be under your jurisdiction; the other two would be outside of your jurisdiction? Ms. Perez. Correct. Because he was a career employee of the Department, and we already have 75,000 of those, when you consider--when you include our local staff. And then the noncareer appointments are handled separately from my office. Mr. Zeldin. OK. Thank you. And one quick followup on the Stuart Karaffa case. As you went through the hypothetical of what would have happened had he not resigned, would you expect him to have been removed at the end of that process, or do you think he would have stayed at the end of that process? What--is that recurrent where you have--let's say you have a--let's say you have a Democratic President and a very conservative State Department staffer, or you have a Republican President and a very liberal staffer, and they are quite rebellious, speaking out on and implementing their own vision and mission. What is the message, through the ranks when that happens? Is that something that results in a termination, or is that something that results in less than termination? Ms. Perez. So I have been in the Foreign Service for well over 31 years, and the message to everyone is, we are here to support the American people. And I have worked for both Republican and Democratic administrations, and I have had senior level positions in both. And, this is what we do because we support the interests of the American people. It is not to say that there are not individual employees that do things like this individual did. And, this is--it is a problem. I think it is a bigger problem now when we have social media that is just 24/7. That did not exist when I came in obviously. Colin Powell brought us internet to the desktop that my newer colleagues cannot imagine. But I think, for the rest of us--this is why I think a statement like the ethos is important. And the ethos does recognize, as I said, those values that are critical for us. If we are, again, going to be the best diplomatic team in the world, that is what we need. And it talks about defending the Constitution, and it talks about serving proudly, and it talks about unfailing professionalism. Those are all things that I grew up with. And that is what I try to tell my team when I travel, and I have had the opportunity to travel quite a bit. This is the most rewarding job in the world. But we have to work together; we have to pull together. And at the end of the day, it is not about us; it is about the American people. Mr. Zeldin. And that is why it was really important in my opening remarks. This happens, in every agency in government, out of government. What should not be lost in our back and forth that we are going to have today is that your ranks are filled with amazing Americans which really make up nearly 100 percent--maybe it is not 100 percent, but, it is nearly that. You do have great men and women. That shouldn't be lost. Do you happen to know if--how long it was before Mr. Karaffa resigned? Ms. Perez. She did not give me that detail, but we will get that back for you. Mr. Zeldin. OK. And do you know if he was suspended with pay? Ms. Perez. He resigned. So he was--I do not---- Mr. Zeldin. You did not get to that point? Ms. Perez. I am sorry. We will get you the timeline--she just says here that his security clearance was suspended immediately, and then he resigned. I do not know if that happened in a day or 2 days or 3 days. But we will get that for you. Mr. Zeldin. I am glad we had a second round. And as you pointed out, you have a crackerjack staff, but you are saying that in the most positive way because I do appreciate the more detailed answers that you are able to give with regards to his case. And thank you again for--to the chairman for holding today's hearing. I yield back. Mr. Bera. Great. Let me recognize the gentlelady from Minnesota, Ms. Omar, is recognized to question the witnesses for 5 minutes. Ms. Omar. Thank you, Chairman. And thank you all--to the ranking member and thank you all for being here. I wanted to chat a little bit with you, Mr. Nutt. One of USAID's publicly Stated missions is the promotion of greater economic opportunities for women throughout the world. But in reality, the work that this Administration has done and some of the policies that it is pushing for have been detrimental to women's prosperity and empowerment in a whole host of ways. There is a wealth of academic research showing us that gains in women's education and employment can be attributed to increasing access to contraception. That access has given millions of women control over their future and better enable them to participate in work force and contribute both to local and global economies. And so I am wondering if you can tell us how the policy priority that we have in our mission makes sense in regard to the proposed cuts to family planning that your Department is putting forth. Mr. Nutt. I have not been briefed on that particular matter at this point. I know the Administration--the Administrator has been pushing an initiative to push out the implementation and the programs of USAID down to the more local level and to the betterment of people in country. But I cannot speak to your-- your immediate question, but I can take that question for the record. Ms. Omar. Wonderful. Mr. Leavitt, do you have---- Mr. Leavitt. As my colleague has answered, we will gladly followup with many details for that, details that will demonstrate the breadth and extent of our basic education programs and higher education programs around the world and how in many cases they prioritize access to education to girls, to young women, how we advance entrepreneurial types of programs, economic livelihood type programs, in support of girls and women. So we have a wealth of programs that help advance---- Ms. Omar. No, that is well and dandy. My question was investment in family planning and the opportunities to have access to contraception and how we know that there is so much research that backs that that gives families the ability to have advancement when the girls and the women in the family have an ability to earn an education and enter the work force. Mr. Leavitt. And we look forward to following up with you with a detailed followup. Ms. Omar. Wonderful. Ambassador, I wanted to followup with Mr. Lieu's questions earlier in diversity in hiring, promotion, and retention. You had mentioned earlier that you wanted to take a broad definition of diversity, and I wanted to see who is included within that definition. Are we including people with disabilities. OK? Is that a yes? Ms. Perez. I am sorry, Congresswoman, yes. That is a yes. Ms. Omar. Does that include the LGBT community? Ms. Perez. Yes, it does. Ms. Omar. Does it include religious minorities? Ms. Perez. Religious minorities are protected under the civil rights code, so yes. Ms. Omar. And are we currently collecting that data for these categories? Ms. Perez. So the data collection is done on a volunteer basis, which has always been one of the struggles. People have to self-identify. And we do not, I believe, collect on all of this--I will have to get back to you, Congresswoman, because I am not sure about some---- Ms. Omar. Do you think it is helpful for us to collect this data? Does that inform us in some sort of way to make sure that we are able to diversify and promote and retain people? Ms. Perez. I think sometimes it would. For example, I chair the committee that looks at assignments to principal officer position and deputy chief of mission positions. And one of the things we look at is diversity: Are we making sure that we have the most diverse slate of candidates for every position? Now, 12 people sit on the committee. These are senior level jobs. We tend to know a lot of people. We are not that big. So sometimes we know somebody is diverse. But then it may not show up on their profile because they have opted not to do that. So we have left it up to the individual. I think sometimes that those could hurt the statistics, of course. And sometimes it is just someone at the table who says: Listen, I know that this candidate is a diverse candidate. But we do not yet--we do not have something in place. Yes, I am sort of on the fence. I do not want to necessarily push somebody. But, yes, does it hurt people sometimes? And obviously, we do not have a really accurate record. Ms. Omar. I appreciate that. And I hope that we are able to look at it. Because the reason I ask is that I anecdotally hear Muslims leaving this department because of this Administration's perceived hostility toward the Muslim community. Or the LBGTQ community leaving because of that perceived hostility. And so I want to make sure that we have the relevant data in regard to retention and see if there are ways that we can make sure that we are dealing with that as we go forth. Ms. Perez. And those that you mentioned are some of the most difficult because it is not so obvious. And so I think that is also an issue. What I would say more generally is that our attrition rates are not very high. Ms. Omar. Yes. Ms. Perez. And they are trending on historical levels. So, for entry level--I am talking about Foreign Service now, not Civil Service--it is 2 percent. At the mid-level it is about 4 percent. Where you see the spike is where when you get to the senior levels, but you have people that age out. We have a system--it is an up-and-out system, so they have time-in-class limitations, time-in-service limitations. We have not seen much of a difference. I know I have looked at the gender issues, but, we do keep an eye on that to make sure if there is anything that goes wrong--again, trying to understand what the barriers are and making the work force aware of inclusion. As I said, once you are in the door, then I think the inclusion is so important, so to making sure that people are aware of what they do and their actions and how that affects inclusion. Ms. Omar. I appreciate that, and I hope we will have a followup conversation on this, because I think it is important for us to have clear protections put in place for religious minorities and other vulnerable communities so that they are able to fully participate in every single department within this Administration. And I hope that we are able to have the opportunity for us to get the answers that--to the questions I had asked in regard to family planning and how that feeds into the broader mission of your department. Thank you. I yield back. Mr. Bera. Great. Thank you. The gentleman from Pennsylvania, Mr. Perry, is recognized to question the witness for 5 minutes. Mr. Perry. Thank you, again, Mr. Chairman. Ambassador, just following up on the gentlelady from Minnesota's questioning, do you conduct exit interviews with the folks that depart the Department? Ms. Perez. Congressman, we do. But we do not do it for everyone. So we do not have a requirement right now. We are moving to an online system so that it will be an easy thing for everyone to do the exit surveys when they depart. I used to look at those for every Foreign Service Officer that resigned. Not retired, but resigned. We send them a letter and thank them for their service. We had the exit surveys attached to that. Some people filled them out; some people did not. So we did not collect good data. Mr. Perry. So it was completely voluntary? Ms. Perez. Voluntary, right. The other thing, though, that I think is important--and we are going to pilot this early next year--I think we should do stay surveys. So not only why people leave--because then it is too late--we need to figure out why are people staying, what is it that is important about what our organization offers that encourages them to stay. Mr. Perry. I am sure that is great. I am just concerned, because there is a supposition that goes with it that folks are leaving for a certain reason. And can you quantify, if that is true, if they feel that because this Administration is something or something else, that that is why they left? I mean, is that something that can be quantified right here, right now? Ms. Perez. Not right now because of the voluntary nature of it and because it is more of a pen-and-pencil exercise. We are looking to make this--as I said, it would be an online system. Mr. Perry. Right. Ms. Perez. So that we can---- Mr. Perry. There is no empirical evidence at this time to validate that claim. I mean, there might be anecdotal incidents, but there is no empirical evidence right now to support that claim? Ms. Perez. Well, just because we do not have a-- a system that is required, we do not have that. The other thing is that civil servants--Foreign Service and Civil Service systems are completely different. So, in the Foreign Service, we have a better handle on who is there and who is not. Because generally people resign and they may be overseas, we have to bring them back to Washington. So we probably have better information, better data for Foreign Service officers. I am not sure that we are doing quite the same on the Civil Service side because it is one action at a time, one person hired, one person departs. And my office, by the way, does not handle all of those transactions. It is distributed among many, many different bureaus in the Department. So it is not just a question of what data I have, which would be for Foreign Service, but what the rest of the data shows, which is the entire Department. So we have a ways to go in an effort to collect the data. Mr. Perry. At this point in time, there is no system overall that would capture that kind of information? Ms. Perez. Not to be 100 percent accurate for the entire work force. Mr. Perry. All right. Another question I have is, part of the problem with chronic vacancies, such as Bangladesh, is that Foreign Service officers choose not to go there. And State already has the authority to direct individuals to a post. Do you use that authority? Have you used it, and is there a case where you are not using it that we should know about or why you would not use it if there is a vacancy, but someone that should be or could be directed to the post? Ms. Perez. I have actually used the authority in my 5 months. It is not used very frequently, but I do. It is partially because we are now in the point of the cycle--most of our vacancies occur in the summer. And so people will start to bid on positions for next year in the fall. The average cycle for that assignment is about 6 months. Generally, most of the work force has a job by April. When they do not and it comes time for them to depart their current assignment, I start sending them letters, encouraging them to find a job. And if they will not, then to say that I would direct them. And when people are not able to find jobs, for whatever reason, because they choose not to bid whatever, then we do direct. We are going a different route. We have changed something. We have something called the special incentive program. And what that is--we have always offered incentives for our AIP posts, Afghanistan, Iraq and Pakistan. We have generous compensation plans for employees that want to go there. So we are expanding that now. This year, because it is something new, we are going to start with other unaccompanied posts. This will include Cuba, Somalia, Central African Republic because, again, we want to get our employees into these tough places. But we understand there are risks. They are not with their families. Mr. Perry. I understand as well. And I do not want to cut you off, but I have limited time. But I see your mission similar to my mission over the course of my life in the military. And there are jobs and posts and positions that I desired, right? And I let my command know those things, and I worked toward those things. And when the command said, ``Well, that is great, but you are going here and you are going to did do this,'' I would say, ``Sir, ma'am, I would like to blah, blah, blah.'' And they would say, ``Yes, that is great; you are going where I said.'' And I said, ``Roger, sir, roger, ma'am,'' and I moved out, and I got after my business and did the best job I can. And if you are going to work for the U.S. Government and serve--and serve--just like I tell young aspiring applicants to one of the academies, understand you are here for service. You might think you are going to be an F-18 pilot in the Navy; maybe the Army thinks you are going to be a chemical officer. You want to serve or not? And that is the question. And so we hope that posts are not going unfulfilled because individuals have a particular personal desire. We get it, but it is the needs of the country, it is the needs of the Nation, that they are agreeing to serve. And if they cannot follow through with that, then they ought to consider maybe a different line of work. And with the chair's indulgence, one more question for Mr. Pitkin. And not that you were present when it happened--maybe you were; I do not know. But I think the American people and certainly I wonder, we are not going to litigate the timing or the coincidence of the payment to Iran. But I do wonder where the $1.7 billion came from. Did it come out of the unobligated funds, or did it come from--where did that come from? Do you know? Mr. Pitkin. With the general parameters, I think we would have to go back and check. My understanding is that it actually did not come from Department of State resources; it came from other assets. But we can take that back and confirm. Mr. Perry. Yes, if you could. I would like to get a confirmation of exactly where it came from and what time and who was involved, if you can provide that information. With that, Mr. Chair, I yield. Mr. Bera. Thank you. Unless--we each had two rounds of questions. If you have additional questions--I really do appreciate your taking the time to come up here. If I can perhaps just expand on something that Mr. Perry talked about. And I think it is to the benefit of the members of the committee as well. When we think about State Department employees, we have to think about them in two different distinct buckets, right, the Foreign Service officers versus the civilian employees. And maybe, Ambassador Perez, if you could expand on that-- the differences there and, how we ought to be thinking about that, if we can just take a quick second. Ms. Perez. Thank you very much. We do have two completely different systems. The Foreign Service, we have much more flexibility, because we are under--we have the Foreign Service Act of 1980, so we are under title 22. And that allows us to go ahead and be much more agile. The Civil Service is obviously not as agile. And sometimes that works against us, just because we are a foreign national security agency, so sometimes it is really tough when those-- when policies are promulgated that are for the entire government, and we are a little bit different. But we are trying to look our hardest right now--again, after 5 months, this is one of my three priority areas, is Civil Service reform, what do we need to do. We want to make sure that we keep people in the Civil Service because that is another issue. We do not want people to leave. One of the things we are focused on right now is could we somehow have tracks to promotion for technical specialists. So now you are very limited; you have to go into a supervisory position. A lot of people do not want to do that; they are not very good at it. So we need to take a look at that. But I am just about to start that. We focused on other kinds of things first, which included, the work force support, those kinds of things. And now this is the next call to the work force with their ideas. And we are groundsourcing--crowdsourcing this. We want to hear from the work force to get their best ideas on this. Mr. Bera. Great. And, Mr. Leavitt, does USAID have those same buckets as well? Mr. Leavitt. We also seek to revitalize our Civil Service and Foreign Service. And in terms of hiring, we seek to hire approximately 175 Foreign Service officers by the end of next year. And this year, in terms of the Civil Service, we also hope to hire or initiate the hiring process for approximately 200 of those. But in addition to the Civil Service and the Foreign Service, we are very much dependent upon how we implement programs and the funds that we receive for that purpose. And the multiple mechanisms that we have, our vision is to streamline and rationalize them. And that is the recommendation for the Adaptive Personnel Project. Mr. Bera. Great. And I am using the chair's prerogative. Again, following up on Ms. Omar's question, when the First Daughter, Ms. Trump, talked about her desire to do women's empowerment in Africa and her special program which she is working on, I did also make the point that they will not get the results in terms of empowering women if they do not address the issue of pregnancy spacing, which really is--the academic literature is pretty strong on making contraception and various contraception methods very available, if you want to get the full effect of empowering women and girls. So Mr. Zeldin has another question. Mr. Zeldin. Mr. Pitkin, just following up on the end of that back and forth with Mr. Perry. Do foreign military sales payments get made without going through you at all? Mr. Pitkin. Yes. That is a program, of course, that we manage in cooperation with the Department of Defense. And so they sort of show up in the Department's books, but because it is pretty much a shared program with DOD, in terms of how those sales are recorded between the State and Defense books, that is something we would probably have to followup on to reflect that. I think State generally is managing the programmatic and the assistance side of it. Much of the actual execution of the sales, I think, is sort of a shared DOD mission. So I think it is probably better that we followup to give you a sense of how that accounting works. Mr. Zeldin. So you have been in your current position for a long time, right? Mr. Pitkin. I have been with the bureau about ten years, and I have been the director for about four. Mr. Zeldin. OK. Have you had any foreign military sales payments go out during that time that did not come through your office at all? Mr. Pitkin. I would say they generally do not come through my office, because they do not flow through the Diplomatic Engagement part of our budget. Again, it is a shared program with DOD, so it is not something that my office actively tracks as a program. Mr. Zeldin. So there have been other times as well where foreign military sales payments were made that did not come through your office? Mr. Pitkin. Again, because they do not come through my office in that sense, it is not so much a before or after. It is just the foreign military sales and FMF programs are really executed as an assistance program. So I would have to partially defer to my colleagues in the Office of Foreign Assistance Resources and also the Bureau of Political/Military Affairs, which really does work more closely with DOD on those programs. And I think they could give you a better sense of the actual accounting and how much of that shows up on the DOD side of the ledger versus the State side of the ledger. Mr. Zeldin. Who is the best person for me to talk to at the State Department to get an answer on that? Mr. Pitkin. I think it would be probably a followup, but I would say it is a combination of Political/Military Affairs and the offices of the Foreign Assistance Resources. Mr. Zeldin. Thank you. Mr. Bera. Thank you. I will recognize the gentlelady from Minnesota. Ms. Omar. Two quick followups. The incentive program that you talked about earlier, is that a new initiative? Ms. Perez. Congresswoman, what is new about it is that we have expanded it outside of the Afghanistan-Iraq-Pakistan, the war zones, to make sure that we have incentives in other places that are really tough for families to be in right now. So---- Ms. Omar. But the incentive has---- Ms. Perez. We call them special recognition packages. We have had them in a variety of posts. What we are trying to do is have a more standard type of incentive package available. Ms. Omar. Yes. Would you say it has been in effect like a decade, two decades? How long has this---- Ms. Perez. Oh, in places like Somalia? Ms. Omar. No, no, not like Somalia. For the places you currently have. Ms. Perez. Absolutely. We have probably had this--I am trying to think--I would guess since 2005, 2006, more or less. Doug may know. So more than 10 years. Ms. Omar. And many places that people would not go to often go to because of these incentive programs, yes? Ms. Perez. Yes, it gives them--yes, it does. Ms. Omar. The places that--yes. Ms. Perez. Well, because they are leaving their families behind, to help support the families, those kinds of things. So that money is there to help support families when they are separated. Ms. Omar. Right. And for the kind of vacancies that exist now, have those vacancies existed for a year, 2, 3, 5? What is the longest vacancy that you know of right now that needs to be filled? Ms. Perez. I cannot answer that, because we have 25,000 positions worldwide, and I do not know what that would be. And it really--so---- Ms. Omar. Are there more vacancies now than, let's say, 3 years ago or less vacancies now than 3 years ago? Ms. Perez. I would say it is probably pretty standard. That is what the GAO study shows although, as I said, at the time the GAO study was released, Secretary Pompeo had not come into office. And so, if we were a little bit short on entry-level officers, it was because we had the hiring freeze. And, of course, after that, we are now well above, recouping whatever we would have lost in 2017. So, using data from then, I do not know. That report did show, though--it is fairly historic. I talked a little bit earlier about the fact that because we are in turn all the time, the movement, the training, all these things, means that you are between posts: You are not in your old post; you are not in your new--sometimes it can take up a year to do that. But what my office does is works with the posts and with the bureaus to make sure we shorten whatever the gaps there are to the smallest possible and to use the other kinds of hiring authorities and the other kinds of personnel that we have in the Department to help us staff those gaps. Ms. Omar. Uh-huh. And in regard to the collection of the data for religious minorities or people with LGBTQ or disabilities, do you think it is helpful for us to collect that data, to mandate it? Ms. Perez. I do not know, because I am not one of those minorities, and I do not know how I would feel. That is my only concern. Would I feel that that is good or bad---- Ms. Omar. Do you think the knowledge of it creates discrimination? Ms. Perez. I do not know how people would feel. I can tell you sitting here as a women, I have no problem letting everybody know that I am a woman. Ms. Omar. It is kind of hard to hide that. Ms. Perez. Well, sometimes people have moved on now to where they are trying to do gender-closed kinds of, evaluations and things. If I say--we do it on a volunteer basis, so the question is---- Ms. Omar. So there are boxes you check, right, for male, female? Ms. Perez. Absolutely. And for diversity as well. The question is, do people check those boxes or not? We do not require it. Ms. Omar. Any of the boxes? Ms. Perez. Yes. So the question is, do you make people--do you force people to do that or not? And I am sorry, personally, I do not--this is not a Department position. Personally, I just do not know. I do not know how you feel about forcing somebody to do an identification that maybe they do not want to do. You talk about LGBTQ. We have people that are binary. We have people that are in very different situations. So how do we make sure that people feel protected, but they want--I do not have the answer for you, Congresswoman--I am sorry--on a personal level. Ms. Omar. That is wonderful. And we can try to work together to find the answers. I am also interested in knowing if the exit surveys would be helpful for us to figure out a way to get that information so that it is used to inform improvements for the Department. Ms. Perez. Exit surveys will definitely help us, as will the stay surveys. So the more information we have about why people--well, more people--why people join, why people stay, and why they leave is always absolutely useful. Again, I am trying to engage with the work force as much as I can. And I do not--we put so much effort into our work force, and they put so much into us, that, we would like to make-- continue that relationship. So, obviously, the more data-driven we are, the more information we have, is better for everyone. Ms. Omar. Thank you. Mr. Leavitt. May I add on to the question with regards to Foreign Service assignments? Overseas, for USAID, we pulled together an incredibly talented group of Foreign Service officers, irrespective of rank and position in the agency or location geographically, and we have significantly reformed the way that we do assignments overseas and how we imply existing incentives. And as a result of that and the IT tools that we brought to bear in doing so, we have been able to make sure that we are getting staff to fill our most critical positions overseas. And we have found that incredibly helpful for us to minimize vacancies overseas, particularly for critical positions. With regards to how we motivate staff to stay in the agency, we find the Federal Employment Viewpoint Survey to be incredibly powerful for us, and that is why we mandate every major operating unit to have an action plan to followup on the results that they get. And perhaps it is tied to that--we have seen that, over the past 4 years, each of the past 4 years, fewer people say that they plan to leave over the next year. Ms. Omar. Maybe there is something to be learned about the way you operate. Thank you. Mr. Leavitt. Thank you. Mr. Bera. Well, I want to thank the witnesses and the members for being here today. And with that, the committee is adjourned. [Whereupon, at 4:50 p.m., the subcommittee was adjourned.] APPENDIX [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] RESPONSES TO QUESTIONS SUBMITTED FOR THE RECORD [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]