[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2020 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ SUBCOMMITTEE ON STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS NITA M. LOWEY, New York, Chairwoman BARBARA LEE, California HAROLD ROGERS, Kentucky GRACE MENG, New York JEFF FORTENBERRY, Nebraska DAVID E. PRICE, North Carolina MARTHA ROBY, Alabama LOIS FRANKEL, Florida NORMA J. TORRES, California NOTE: Under committee rules, Mrs. Lowey, as chairwoman of the full committee, and Ms. Granger, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Steve Marchese, Craig Higgins, Erin Kolodjeski, Dean Koulouris, Jean Kwon, Marin Stein, Jason Wheelock, and Clelia Alvarado Subcommittee Staff __________ PART 3 Page Oversight of United States Agency for International Development Programs and Policies............................................. 1 Department of State Budget Request for Fiscal Year 2020........... 131 United States Efforts to Counter Russian Disinformation and Malign Influence........................................................ 261 Management Challenges and Oversight of Department of State and United States Agency for International Development Programs........................................................ 345 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Printed for the use of the Committee on Appropriations STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2020 _______________________________________________________________________ HEARINGS BEFORE A SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS FIRST SESSION __________ SUBCOMMITTEE ON STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS NITA M. LOWEY, New York, Chairwoman BARBARA LEE, California HAROLD ROGERS, Kentucky GRACE MENG, New York JEFF FORTENBERRY, Nebraska DAVID E. PRICE, North Carolina MARTHA ROBY, Alabama LOIS FRANKEL, Florida NORMA J. TORRES, California NOTE: Under committee rules, Mrs. Lowey, as chairwoman of the full committee, and Ms. Granger, as ranking minority member of the full committee, are authorized to sit as members of all subcommittees. Steve Marchese, Craig Higgins, Erin Kolodjeski, Dean Koulouris, Jean Kwon, Marin Stein, Jason Wheelock, and Clelia Alvarado Subcommittee Staff __________ PART 3 Page Oversight of United States Agency for International Development Programs and Policies............................................. 1 Department of State Budget Request for Fiscal Year 2020........... 131 United States Efforts to Counter Russian Disinformation and Malign Influence........................................................ 261 Management Challenges and Oversight of Department of State and United States Agency for International Development Programs........................................................ 345 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] __________ Printed for the use of the Committee on Appropriations U.S. GOVERNMENT PUBLISHING OFFICE 39-682 WASHINGTON : 2020 COMMITTEE ON APPROPRIATIONS ---------- NITA M. LOWEY, New York, Chairwoman MARCY KAPTUR, Ohio KAY GRANGER, Texas PETER J. VISCLOSKY, Indiana HAROLD ROGERS, Kentucky JOSE E. SERRANO, New York ROBERT B. ADERHOLT, Alabama ROSA L. DeLAURO, Connecticut MICHAEL K. SIMPSON, Idaho DAVID E. PRICE, North Carolina JOHN R. CARTER, Texas LUCILLE ROYBAL-ALLARD, California KEN CALVERT, California SANFORD D. BISHOP, Jr., Georgia TOM COLE, Oklahoma BARBARA LEE, California MARIO DIAZ-BALART, Florida BETTY McCOLLUM, Minnesota TOM GRAVES, Georgia TIM RYAN, Ohio STEVE WOMACK, Arkansas C. A. DUTCH RUPPERSBERGER, Maryland JEFF FORTENBERRY, Nebraska DEBBIE WASSERMAN SCHULTZ, Florida CHUCK FLEISCHMANN, Tennessee HENRY CUELLAR, Texas JAIME HERRERA BEUTLER, Washington CHELLIE PINGREE, Maine DAVID P. JOYCE, Ohio MIKE QUIGLEY, Illinois ANDY HARRIS, Maryland DEREK KILMER, Washington MARTHA ROBY, Alabama MATT CARTWRIGHT, Pennsylvania MARK E. AMODEI, Nevada GRACE MENG, New York CHRIS STEWART, Utah MARK POCAN, Wisconsin STEVEN M. PALAZZO, Mississippi KATHERINE M. CLARK, Massachusetts DAN NEWHOUSE, Washington PETE AGUILAR, California JOHN R. MOOLENAAR, Michigan LOIS FRANKEL, Florida JOHN H. RUTHERFORD, Florida CHERI BUSTOS, Illinois WILL HURD, Texas BONNIE WATSON COLEMAN, New Jersey BRENDA L. LAWRENCE, Michigan NORMA J. TORRES, California CHARLIE CRIST, Florida ANN KIRKPATRICK, Arizona ED CASE, Hawaii Shalanda Young, Clerk and Staff Director (ii) STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS APPROPRIATIONS FOR 2020 ---------- Wednesday, February 27, 2019. OVERSIGHT OF UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT PROGRAMS AND POLICIES WITNESS AMBASSADOR MARK GREEN, ADMINISTRATOR, UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (USAID) Opening Statement of Chairwoman Lowey The Chairwoman. The subcommittee on State, Foreign Operations, and Related Programs will come to order. I welcome you all, especially our new members. [Laughter.] The Chairwoman. I don't know. This is not a good sign. But I will mention them anyway because they would want us to acknowledge them, Ms. Torres; Ms. Frankel--I think she lost her voice, too--Mrs. Roby; and my friend, the former chairman and ranking member, Mr. Rogers. I look forward to a very productive year. Administrator Green, thank you so much for joining us. I am constantly impressed by you and the wealth of experience of our development professionals. USAID helps the world's most vulnerable people, assists in the recovery of millions from natural disasters and conflict, and supports democracy and the rule of law. These development efforts are the front line of our national security. This is a tumultuous time around the world. Globally, democracy is in crisis. The right to free and fair elections, freedom of the press, and the rule of law are under assault. Yemen is on the edge of catastrophe as the world's worst humanitarian crisis, with 20 million civilians facing starvation. The second-largest Ebola outbreak ever recorded rages in a fragile Democratic Republic of the Congo, resulting in more than 500 deaths so far, including nearly 100 children. Political turmoil in Venezuela continues. More than 3 million people have already fled, and some 25,000 more flee every day in what has been called Latin America's worst ever refugee crisis. In Burma, since 2017 some 700,000 Rohingya Muslims have fled their homes in the northern Rakhine province to escape persecution and violence. And in Syria more than 6 million people are internally displaced, and the vast majority of the 5.6 million refugees in neighboring countries live below the poverty line. It is clear that our humanitarian and development efforts are needed now more than ever. For USAID to succeed in leading these efforts the agency must have sufficient resources and staffing to nimbly and effectively respond. But several of this administration's policies have hamstrung your agency, reducing response time and preventing the U.S. from partnering with some of the most capable and experienced implementers. Perhaps no better example is the administration's expansion of the global gag rule and the Kemp- Kasten determination against UNFPA. These terrible policies undermine our effectiveness and make it much harder to reach people who need us most. I can clearly remember, my friend, Administrator Green, and I just have to take a break from these notes because we all have experiences that we will never forget. I remember visiting a place where abortion was legal, and I think of this woman with all the little babies following her, and I think today if she were taken to a clinic and that clinic dared to provide any kind of guidance on abortion they would be out of business, and this woman would not be able to get any guidance at all. I know you are in a difficult position in this administration, but if I wanted to take the time I could probably give you another half dozen or more examples where birth control is health. It is survival. And to put these clinics out of business if they are threatened with providing full direction on Women's health is an abomination. So, my friend, these self-inflicted wounds compromise the quality of our efforts and are a disservice to the American taxpayer. Another example is the administration's suspension of assistance during policy reviews and subsequent breaks in programming that have led to negative consequences. President Trump also appears to have a flawed view of foreign assistance, in my judgment, as a reward to our friends and its withdrawal a punishment to our enemies. Moreover, the administration's approach to multilateral engagement, whether it be at the United Nations, the World Bank, or elsewhere, has been reactionary and shortsighted. Our assistance has direct impacts that alleviate suffering, save lives, and enable stability that is essential to our own interests. In our interconnected world, our national security is strongest when development, diplomacy, and defense are all well-funded and equally prioritized. I want to make it very clear: This subcommittee stands ready to work with USAID. To do so effectively will require ongoing, open communication, especially on areas where funding needs are outpacing available resources. Failing to maintain our position as the leader in global development and humanitarian assistance will cost lives, risk the spread of infectious diseases, and reduce American influence around the world. I hope--and I should change that, my friend, to: We can count on you and your team to help strengthen communication and consultation with us throughout the 116th Congress. I thank you very much for testifying today, and I look forward to our discussion. Before we move to your testimony I would like to turn to my friend, Mr. Rogers, the ranking member--we just take turns, but I don't want to take any more turns in the next year--the ranking member for his opening statement. And then I want to make it clear I will call on members based on seniority of the members who were present when the hearing was called to order. I will alternate between majority and minority. Each member is asked to keep their questions to within 5 minutes per round. Administrator Green, we will be happy to place your full testimony in the record. If you would be kind enough to summarize your oral statement, I want to make sure we leave enough time to get to questions, Mr. Green. I will turn to Mr. Rogers. That is what happens when you don't have a voice. Okay. Opening Remarks of Mr. Rogers Mr. Rogers. I thank you, Madam Chairwoman. Congratulations on your accomplishment--historic accomplishment--being the first female chairman of the full committee. The Chairwoman. So maybe there is a kind of plan. Was my voice taken away as the first woman? I don't know what is going on around here. [Laughter.] Mr. Green. No. No, it can't be. Mr. Rogers. I know it is going to be difficult to fill both the roles of being a full committee chairwoman and this subcommittee chair as well, but I am pleased that you are staying on and leading the subcommittee, and I look forward to working with you and being as helpful as we can along the way. You and I have had a great working relationship down through the years of time in various roles, and I have found you to be very effective, and reliable, and honest, and true, and above- board. So I appreciate our friendship. Ambassador Green, it is a pleasure to welcome you back to your old stomping grounds here on the Hill. You spent a good number of years--was it four terms--on the Hill, and a member of this body. Among your other accomplishments, we appreciate your service up here. And it is good to see you again for your third appearance testifying before this subcommittee as USAID administrator. You have demonstrated your willingness to appear when called upon, to engage our members in a meaningful conversation about your work at USAID. I asked this of you in your first hearing as administrator in this very room. I believe you are upholding your end of the bargain, and I sincerely appreciate that. I would hope this hearing would allow us to discuss the president's budget request for fiscal year 2020. If the speculation holds true, we are looking at another proposal for steep cuts in the international affairs budget being recommended in the president's budget, despite being roundly rejected by Congress for 2 years in a row now. Unfortunately, the budget submission has been delayed until mid-March so we will need to have those discussions at another time. Therefore, today we are going to focus on oversight. USAID plays an important role in contributing to our country's national security. Across the globe USAID is on the front lines promoting democracy, growing economies, reducing disease, providing lifesaving humanitarian assistance. That is why it is critical to make sure USAID is the most efficient and effective agency it can be. Taxpayers should feel confident their resources are being invested wisely, and they should be proud of what is accomplished overseas on their behalf. You are fortunate to have a capable inspector general keeping an eye on the agency. She and her staff have done important work to help you achieve greater transparency and increased effectiveness, and I know you take her recommendations seriously and have made progress addressing them lately. But there are some challenges that never seem to get resolved. They get written up year after year. I will probably return to this topic with a question, but I am concerned that the USAID I.G. continues to raise the issue of vulnerabilities in financial management. These are the fundamentals, basics of tracking each and every dollar. I understand you have made some improvement recently, but that doesn't mean you should take your foot off the gas. I discussed this and other issues in a hearing with the inspector general when I became chair of this subcommittee, and I intend to follow it until it gets resolved. I strongly encourage you and your management team to remain focused on making this an agency strength rather than a perennial challenge. The situation Venezuela, a topic of great interest, of course. The Maduro regime has caused desperate conditions in Venezuela, has threatened counternarcotics efforts and economic development throughout the region. In turn, this has forced unprecedented numbers of Venezuelans to flee their homes. The outcome of this political crisis will have a substantial impact on Latin America for decades to come. I know you intend to address this in your remarks, so I look forward to hearing your update. I hope you will address other important topics, such as your agency's role in countering Russian and Chinese influence around the world, efforts to suppress our partners in the Near East that continue to face turbulent times, and critical investments being made in global health security. Before I close, I want to thank the men and women of USAID for their continued hard work and their commitment. I know the shutdown was difficult, sometimes demoralizing for so many federal employees, including USAID. I hope their dedication to their mission will stay strong, and I look forward to doing what we can to support them in that effort. I know, Mr. Administrator, that you must be weary. You have been on the road--the air, if you will--for many months. I understand you were in Colombia recently twice in 4 days, I think, so we are glad to have you back here and we hope to give you a little rest amidst your troubles. I yield back. The Chairwoman. Again, Administrator Green, we will be happy to place your full testimony into the record. If you would be kind enough to summarize your oral statement? I want you to do whatever you are comfortable with. I want to make sure, though, that we leave enough time to get to everyone's questions. Mr. Green. Thank you. Opening Remarks of Ambassador Green Mr. Green. Thank you, Madam Chairwoman. And up front I apologize for my voice. I picked something up on one of those travels, and until this morning I actually thought I was winning. Now I am not so sure, but I appreciate the forbearance of the committee. So, Chairwoman Lowey, Ranking Member Rogers, Members, it is good to be with you. Thank you for this opportunity. I would like to begin this morning by discussing USAID's efforts to address a few of our more-pressing humanitarian and development situations across the world. As many of you have alluded to, at USAID we have urgent work to do, and that work has never been more important. To name one, I have just returned from Cucuta, Colombia, a short distance from the border with Venezuela. There I saw firsthand the devastating effects of the Maduro regime's corruption, economic mismanagement, and oppression. I heard stories of unimaginable suffering: children starving, hospitals running out of medicine, and people walking, in some cases hundreds of miles over several days, to reach the border in search of help. Of course, this tragedy is all the worse because Venezuela was once one of the region's wealthiest countries. At the request of Interim President Juan Guaido, we have been prepositioning humanitarian assistance close to the border for eventual delivery into Venezuela. While in Cucuta last week, I welcomed the arrival of a new tranche of humanitarian assistance. Since February 4th, USAID, with support from the Departments of Defense and State and others, has prepositioned approximately 195 metric tons of crucial relief supplies, including emergency medical kits, food aid, hygiene kits, and nutritional supplies. This past weekend, as I am sure you were watching, this past weekend was tragic, as thousands of Venezuelan, Colombian, and other humanitarian volunteers sought to transport lifesaving food and medical supplies into Venezuela. They were met with death, tear gas, rubber bullets, and violence ordered by the Maduro regime. The United States, over the last couple of years, has contributed more than $195 million in funding to support Venezuelan migrants and the communities hosting them. We are far from alone in that effort: 54 countries now recognize the interim presidency of Juan Guaido. Many of our closest allies have pledged assistance, and many private citizens have already provided assistance to the region. However, as I know you agree, in order to fully respond to these crises, we need to address their underlying causes. Just as we lead the world in humanitarian assistance, we should also lead in our commitment to democracy, human rights, and citizen- responsive governance. USAID stands in solidarity with Interim President Guaido and those in Venezuela who seek a government that represents their interests and is responsive to their needs. So long as Maduro and his cronies continue to crush the people of Venezuela, their economy, and their hope, we know this crisis will continue. The people of Venezuela, like those in Cuba and Nicaragua, who are also suffering under authoritarianism, deserve freedom and a return to the rule of law. Some observers talk as though democracy is in irreversible decline, but the only way that freedom and democracy will fall is if we let them. As President Trump recently said in Miami, we can see the day ahead when all the people of Latin America will at last be free. Members of the subcommittee, we are hard at work in addressing another humanitarian crisis, this one of a fundamentally different nature. The outbreak of Ebola in the Democratic Republic of Congo, where health officials have recorded at least 869 confirmed cases and 544 related deaths all since 2018, should be of concern to all of us. USAID disaster and health experts, part of the U.S. Government's Disaster Assistance Response Team, are on the ground working side by side with WHO and the Ministry of Health in DRC. The team is applying tools and valuable lessons learned, developed in the 2014 epidemic response in West Africa. The strategy is to break the chain of transmission and ultimately end the outbreak. It is a complex working environment. Poor access to certain areas, security concerns, and community distrust have presented remarkable hurdles to our work. But despite these challenges, responders are conducting their vital work in affected areas, including surveillance and case-finding, case management, and raising community awareness about transmission. We will continue to monitor and adapt accordingly, in coordination with our colleagues from the CDC. This response is a priority not only because of our commitment to those affected, but also to prevent the outbreak from spreading throughout the broader region and, quite frankly, beyond. Unfortunately, we are experiencing humanitarian crises in nearly every corner of the world. And what makes the tragedy of the Rohingya even more painful is that, similar to Venezuela, it is entirely manmade. Bangladesh now holds 1 million Rohingya refugees from Burma, as well as the world's largest refugee camp; 730,000 of these migrants arrived in the wake of an ethnic cleansing campaign conducted by the Burmese security forces that began in August 2017. I traveled to Bangladesh last May to visit the refugee camps and to hear from those who escaped the violence and bloodshed. I met with government representatives. I conveyed America's gratitude to Bangladesh for hosting the refugees, but I also encouraged them to allow humanitarian organizations to provide refugees with the full range of support necessary for their wellbeing--not just food assistance and health care, but access to education, weather-resistant shelter, and livelihood opportunities. USAID, in close coordination with State, continues to provide emergency food and nutrition assistance to refugees in Bangladesh. We are also working to ensure their host communities are not overly burdened by this significant population influx, and we continue to call on the government of Burma to take concrete actions to respect the dignity and the rights of all Rohingya in Burma to return voluntarily, safely, and in a dignified manner. Members of the subcommittee, those are just a few of the most pressing situations at the forefront of our work. But I would also like to say a quick word about USAID's redesign process, or transformation. When I last appeared before the committee in March of 2018, I provided an overview of several planned initiatives. After consultations with many of you and your staff, we have since launched many of them and we are eager to answer any questions that you might have as you look to review our remaining Notifications. As you have heard me say before, private enterprise is perhaps the most powerful force on Earth for lifting lives out of poverty, strengthening communities, and building self- reliance. And so, just in December, we launched the Agency's first-ever Private Sector Engagement Strategy. This policy is a call to action to increase and strengthen our work with the private sector, moving beyond mere contracting and grant-making to true collaboration, co-design, and co-financing. Another key initiative--and, Chairwoman Lowey, I have to thank your unbending leadership on this issue--aims to enhance a core aspect of our work: improving learning outcomes, especially for marginalized youth and communities in need. One aspect of USAID's new Education Policy that I am especially excited about is its focus on ensuring that we tailor our education programs to the unique needs of each country. We are engaging all stakeholders in order to deliver quality, sustainable education. This includes universities, traditional education institutions, and, where appropriate, private sector faith-based organizations, and more. These new education strategies will ensure that we are considering every innovation to achieve the very best possible learning outcomes. Finally, I would like to mention USAID's support for the White House-led Women's Global Development and Prosperity Initiative, also known as WGDP. On February 7th, I joined Ivanka Trump in launching this initiative and announced USAID's new fund to support and scale up innovative programs that advance women's economic empowerment around the world. This fund will have an initial allocation of $50 million and will support high-impact proposals including those that support training and skills development, expand access to finance, and reduce barriers to women's free and full participation in the economy. Members of the subcommittee, with your support and guidance we will ensure that USAID remains the world's premier international development agency. And with that, Madam Chairwoman, thank you again for the opportunity to appear and to continue our conversation. I welcome questions. Thank you, Madam. The Chairwoman. Thank you very much. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. A pleasure to welcome you, Mr. Administrator. A few weeks ago the administration rolled out the Women's Global Development and Prosperity program, or W-GDP. Now I, as you well know, fully support increasing women's economic empowerment. The inconsistency, however, of this administration's policies on such an important issue is baffling. And I won't say just Ivanka Trump; I will talk about the whole administration. Because you and I know that financing alone won't solve this problem. Our programs will not be effective if we don't see women and their challenges holistically, and address the environment in which they are raising their families and supporting their communities. So do you believe this administration has put the policies in place to effectively encourage women to take advantage of economic opportunities? You will probably say yes, so I will let you give a quick response. Mr. Green. Yes. The Chairwoman. I wouldn't want to put words in your mouth. I wouldn't even think of that. I hope we can work together on W-GDP, but is this administration reconsidering its stance on funding for important women's health and education programs that would be necessary for women to better contribute economically? Mr. Green. The administration, in terms of women's education, very much is looking to boost women's education and to tackle the barriers to women's education. As part of the W- GDP Initiative we are taking a look at all the--country by country--all of the barriers to participation in the economy. The Chairwoman. Including health barriers specific to women? Mr. Green. Taking a look at health barriers, all the barriers. The Chairwoman. I hope you look very, very carefully at the health barriers that this administration advocates. So let me be very specific, will the administration reverse its position on an expanded gag rule or misguided prohibition on UNFPA funds to ensure women are able to take advantage of this new initiative? Mr. Green. I will give you a two-part answer. In coming weeks we will be producing, as we have pledge to do, a report on the impact of the Protecting Life in Global Health Assistance policy announced 2 years ago. We will make that report public. I do not believe that it will be reversing its standing position and policy. The Chairwoman. I thank you, frankly, for your frank answer. As I mentioned before, I have traveled to so many places, and you see what empowerment of the women does when they can have appropriate health advice and assistance. The last USAID administrator under a Republican administration, Henrietta Fore, launched the Development Leadership Initiative with a vision to double the number of permanent Foreign Service officers at your agency. And I was so proud to support this initiative when I was last chair of this subcommittee. In fact, the Development Leadership Initiative garnered strong bipartisan support in recognition of the invaluable role USAID personnel play in our national security. The Obama administration continued this Bush administration initiative, but this administration has significantly reduced staffing. Can you respond? I know I just have a few seconds left. Mr. Green. As you know, a year-plus ago we were under a hiring freeze. Since then we have taken steps to hire approximately 140 career Foreign Service officers, which we will do between now and the end of Fiscal Year 2020, which is in line with available O.E. budget. And beyond that, we will continue to hire staff and begin to power-up since the freeze was lifted. The Chairwoman. Maybe I can ask you directly: Should USAID be expanding, or is your current staffing level sufficient? And what is the impact of the dramatic workforce reductions, including on morale and workload? Mr. Green. So we will be expanding our staff in line with available budget. So it is not a set number; it is making sure that we have the right people in the right place to do the jobs that are necessary. I can tell you that during the lapse in appropriations in which a good percentage of our staff were furloughed, that did delay a number of operations that we would normally take on, including oversight. So when we have staff reductions like that it certainly hurts our effectiveness. The Chairwoman. Well, I thank you very much. And before I turn this over to Ranking Member Rogers I want to say this committee, whether Chairman Rogers is in charge or I am in charge, and all the members, are passionate about the important work of USAID and feel there have been some mistakes, wrongheadedness in terms of the cuts. So we are happy to be your partner; we are happy to have open and honest discussions, and continue to support the very essential work that you are doing. So thank you for appearing before us today. Mr. Rogers. Mr. Rogers. Mr. Administrator, China. Anecdotally, all of us on various trips around the world have noticed of late very active Chinese involvement in that country. They have emerged as a major provider of export credits, infrastructure financing, symbolized by their very ambitious Belt and Road Initiative, they call it. Unlike the U.S. and most Western donors, China's lending policies are not guided by standards of anticorruption, transparency, or the ability to pay the loan back-- sustainability. Many of us are concerned that this model gives Chinese companies a big advantage in emerging markets and allows Beijing to use large projects as a way to gain geostrategic influence and power. Understanding that the U.S. response must involve many agencies, what is USAID's role and strategy to counter the China model of development around the world? Mr. Green. Thank you, Ranking Member, for that question. It is a topic that I am passionate about. First and foremost, when you ask countries why they accept or turn to China, in most cases they will say, because they are there and the U.S. is not. So the first answer is we need to engage in more places more often with countries. I think we need to be there and show what it is that we offer. Secondly, I think we need to do a better job in helping countries analyze the terms of what China offers. You and I wouldn't really refer to what China does as assistance. It is predatory financing is what it is. And so I think helping countries to be able to analyze the cost-benefits of the China package is important. Most importantly, we have to be clear about what it is that we offer and what the end game is. So what I say is in many of these countries it is a choice between self-reliance, which is what you get in the end of your partnership with us, the ability to lead yourself, provide for yourself, guide your own future, versus servitude, in which you are in perpetuity indebted to an authoritarian power. I think we should be full- throated in pointing out the clear differences. So I think it is a combination of all of them. We have got to be there. I think we have to do a better job in describing what it is that we offer. And I think we have to do a better job in describing the downside, the cost of what China offers. Finally, I think that the new DFC, which will be coming online towards the end of the year, is an important tool in the toolbox. We shouldn't try to be China-light. We shouldn't get into a bidding war with China. But what we can do, with quality financing from the DFC and other parts of the U.S. Government, is incentivize the kinds of policy reforms that can help a country rise. Every country wants to lead itself, and we want to make it clear that we can help them get there. Mr. Rogers. Well, it is a juggernaut. The Chinese are launching--have launched a juggernaut. They are all over the world and they are pouring billions of dollars into questionable loans for projects that probably will never see the light of day. But they have made their presence there. They have made friends. Mr. Green. If I can, a term that I heard in talking to some businesses in Latin America, they said that they refer to Chinese assistance as ``loan-to-own'' because there really is no sense of providing financing. It is essentially indebtedness that will allow China to take over assets. Mr. Rogers. Yes. And we have never seen anything quite like this, have we? Let me quickly switch to Venezuela. A lot of focus on the situation inside Venezuela, and rightly so. You have provided us with helpful overview of recent events. We would like to hear more about what we have done and will do for other countries in the region that have been strained by the more than 3 million people that have fled Venezuela. Could you help us out with that? Mr. Green. Thank you, and it is an important question. One of the things that makes Venezuela different in terms of its scope is the fact that it is happening as we speak. As the Chairwoman pointed out, we are seeing the flight of migrants increase each and every day, getting on for 4 million now, and it is affecting the entire region. So we have been providing assistance to host countries to support those migrants who have come over as well as the communities that are, in fact, hosting them. It is moving as far as the Caribbean, where the economies--just by World Bank numbers--may be prosperous but they are fragile. If they are tourism-oriented you can see how the presence--sudden presence of migrants would be burdensome. So we have been trying to provide some support there. This is not a bilateral problem; it is not U.S.-Venezuela. This is a problem, a challenge that affects the entire region, and that is why it is receiving the attention, and it should be. Mr. Rogers. I think my time is expired. The Chairwoman. Thank you, Mr. Rogers. Ms. Lee. Ms. Lee. Good to see you, Mr. Ambassador. First, thank you for being here. Thank you for your leadership. I have several questions. I apologize, I have to go into another hearing so I am going to try to summarize my questions all in one round. Of course I have been concerned about the Trump administration's cuts to UNFPA and the impacts that these cuts have on the health and wellbeing of women and girls around the world. As you know, UNFPA provides critical voluntary reproductive health care, including family planning services, to the world's poorest women living in over 150 countries around the world. Now, I know you have previously stated that USAID was in the process of reprogramming U.S. funds that were going to UNFPA, but we never got a handle on where those funds were reprogrammed for, what accounts they went into. And, you know, how in the world, now, are you ensuring that women and girls are--in vulnerable situations, such as the child health care and refugee camps in Jordan--how are they accessing care now, given the shift in funds? So I would like to know what accounts they are going into. Secondly, of course, I am back talking about democracy programs in Cuba. Of course, the ZunZuneo program, covert Cuban Twitter designed to stir unrest, funding for Radio Marti and Television Marti are, I believe, a waste of taxpayer money. And we have learned recently that it was TV Marti described as an anti-Semitic segment against George Soros. I don't know if you conducted an investigation or not. But why are we continuing to fund these programs wasting taxpayer dollars, and what is the status of the investigations into all of the wasted money? And is USAID playing a constructive role in what seems to be really an organic opening in Cuba? There are about 830 Wi-Fi hotspots, and so, of course we know under the Obama administration we moved toward at least trying to normalize relations and engage in some dialogue and some diplomacy, but yet now these--under Trump the policies have turned us back. And so I am wondering what your assessment is on the Cuban people, in terms of curbing trade and travel. My next question just has to do with HIV and AIDS in terms of country ownership. And are countries, which we all agree need to happen, but is the groundwork established to insist on country ownership? And then finally, what are we doing in the West Indies and the Caribbean? We discussed this a little bit, but I know there has been very little involvement in the West Indies and the mainly black Caribbean countries, and I do know that China is, of course, there, and I am wondering why we haven't engaged much in the West Indies. So thank you again. Mr. Green. Thank you, Congresswoman Lee. You may be in and out but you have gotten all of your questions in and I will attempt to address them as best I can. And I enjoyed our conversation yesterday. So first, with respect to UNFPA and the reprogramming of dollars, with respect to last year's funding, the 2017 fiscal year funds, those were--those funds were put into maternal and reproductive health--voluntary family planning and maternal and reproductive health activities in priority countries. In addition, part of the money was used for the prevention of cervical cancer in Malawi and Mozambique as part of an integrated program on women's health. With respect to Fiscal Year 2018 funds, those are still being under review and we will supply a Congressional Notification to your office to make clear our intention as to where those funds will go. So as always, we will make sure that we are very clear where those funds go. With respect to Cuba, we have increased humanitarian assistance in Cuba to political prisoners, and we do continue to provide access to independent media as much as we can in Cuba. With respect to the precise question you asked, I will have to get back to you. My office will supply a written response. I just am not entirely familiar with that. On PEPFAR, I support Ambassador Birx's efforts to begin to build stronger sustainability of our PEPFAR investments in some of the countries that have increasing capacity. I think we all recognize that in the long run the right answer in nearly every sector is to help countries to be able to lead themselves. In the case of health systems in countries with high AIDS-- HIV/AIDS burdens, it is building their capacity, slowly getting them to mobilize more and more of their own domestic resources so that eventually, sustainably they can take over leadership themselves. That is what Ambassador Birx is trying to do. Obviously USAID is part of the larger PEPFAR effort, and we are committed to doing that. It is challenging in many environments, but we think it is important. With respect to the Caribbean, and the West Indies in particular, as we discussed yesterday, I appreciate and, quite frankly, welcome your passion on this. These nations are our neighborhood, and I think that we should engage them more, and as much as we can. We often engage only during moments of humanitarian crisis, when there are storms and other natural disasters. And I am proud of the fact that we do. It would be nice to engage with them outside of storms and natural disasters. Those relationships are important. And again, I think that if we can bolster the economic vitality of our own neighborhood, the Americas, the Western Hemisphere, I think every American benefits. I think it is good for us as well as being good for them. So you have my commitment to sit down and work with you on that. I share your passion. I think it is great. The Chairwoman. Excuse me. Mr. Fortenberry. Thank you, Madam Chair. I hope you feel better. Before I make my comments, if I could ask Ms. Lee a question. Are you coming back to the hearing? The reason I ask is you know you have a particular passion for Haiti and I have some questions in that regard. If you are coming back I will probably save those for the---- Ms. Lee. I am not sure. No, go on. Mr. Fortenberry. I will have to do it by myself then, okay. Ms. Lee. Yes. Thank you very much. But I am sure I associate myself with your remarks on Haiti. [Laughter.] Mr. Fortenberry. Okay. Thank you. Again, thank you, Madam Chair, for the time. And, frankly, it is a privilege for me to serve on this subcommittee. Mr. Administrator, I never, frankly, know what to call you: congressman, administrator, ambassador, or Mark. So welcome. Mr. Green. Mark works well. Mr. Fortenberry. Mark is okay? Yes. Thank you for your long-held leadership and public service. We are really grateful. Before I ask you a few questions starting with northern Iraq I would like to give a few reflective comments. I think that the United States Agency for International Development, that title doesn't appropriately capture the fullness of what we are trying to do here. And if I had a chance to rename this, this would obviously have to be shortened, but I do believe you have one of the most important jobs in the country, perhaps the world, because it is about a couple fundamental things, promoting human dignity, attacking the root causes of structural poverty, and attempting to create and imagine a 21st century architecture for diplomatic relations that is based in authenticity, in service--and this is the key point--in service to America's humanitarian impulse, international stability, and our own national security. Now, if you can find a way to take all of that and press it into a new title I think we could rename the agency because I think it is broader than the two words ``international development'' captures. And I know you have a particular passion for this, and I am grateful for your service. You did mention we have humanitarian crises all over the world. And again, I think all of us who have been given this great gift of public service have to reflect on the more fundamental question as to why. We can move economic aid; we can move assistance. But why do we continue to have these humanitarian crises, especially in an age of unprecedented prosperity in some places, unprecedented development of the sciences and technology? The world is still screaming for meaning, and ultimately I think that meaning is found in the philosophical proposition of human dignity. Let me fast-forward, and I would like to--Madam Chair, I haven't had a chance to visit with you about this, but if we could do so privately I would appreciate it. Administrator Green and I traveled to northern Iraq last summer, and what we were doing there at the request of the vice president's office was to evaluate the aid programs that were targeted to the religious minorities that once flourished in northern Iraq. Christian communities, Yazidi communities, certain minority Muslim communities once formed an ancient mosaic tapestry of religious pluralism. The Iraq War and then the consequences of ISIS have--and their genocide, their twisted, dark ideology--has decimated these peoples. So the United States, again, very generously, has transferred aid. I believe it is near $200 million. My findings were that there is possibility that this aid has the potential impact that we desire: a regeneration of these communities, helping Iraq save, again, what once was a vibrant disposition toward pluralism. The situation, though, is urgent. The Christian community has trickled back; the Yazidi community, many of whom are trapped in refugee camps, there will be pressures for out-migration more than there have been if we don't act quickly. But the more fundamental issue is security. Without security there is really little prospect that the aid that we are giving and other countries are giving is sustainable in the long run. So, Mr. Administrator. I have taken up a lot of my time. But I would like you to respond to that prospect. And what I am trying to do is, working with Chairmen Engel and McCaul, a resolution through Congress that lays down a marker talking to this issue of security and integrating, frankly, Christians and Yazidis and minority Muslim communities into the Iraqi security forces with some authority to protect themselves. Mr. Administrator, if you could respond to this? Mr. Green. Thank you for your question and for your concern. And obviously you and I have had a number of conversations about this. I have been struck by the way that the Iraq government in its approach to the flourishing diversity that was once there in northern Iraq, how they refer to it. They don't refer to minorities; they refer to ``component communities,'' with the idea being that Iraq cannot be whole if it is missing those key components. We do believe, I do agree, that if we are to defeat ISIS once and for all we must undo some of what it tried to do, which was to destroy that diversity of freedom of conscience. And so we think it is important work to be done. Yazidis, Christians, as you have pointed out, a number--a range of minorities, there are two pieces to it. As you know, and thanks in part to your leadership, we are providing valuable assistance to these communities to try to provide the infrastructure that allows them to return and have economic livelihood. The two challenges that I see, which will determine whether we are successful in the long run, are: number one, they have to--they must not argue amongst themselves. In other words, they cannot allow the fragmentation of the communities to finish the job that ISIS started in terms of breaking apart what was a wonderful mosaic. But most importantly is security. And as I often say, I am not in the wish projection business. I try to be clear-eyed. And unless these communities feel as though there is some security around them I find it hard to believe that they will either stay or return, as you and I both hope they will. So I think addressing security is a key part of our long- term success. Mr. Fortenberry. Great. Thank you. The Chairwoman. Thank you very much. And I just want to say to my colleague I remember to this day--the name of the person who gave us that briefing on what happened in Iraq, and I voted for that war. It was probably the most misguided vote I ever took in my life. And I agree with you, that was a tragedy, and I look forward to working with you on this enormous challenge. And I know my good friend feels the same--well, I won't say you agree with everything I just said, but we have an enormous job to do and I thank you again on that effort, as well. Ms. Torres, a pleasure. A new member of the committee, and we are delighted to welcome you here today. Mrs. Torres. Thank you so much. It is an honor to be here with all of you. Thank you so much for being here, Mr. Green. As you know, I have traveled extensively within the Western Hemisphere and have looked at all of the work that USAID is doing, and I am grateful, and I am a fan of the work that is being done by your employees that I think are just wonderful ambassadors of the U.S. as we continue to look for opportunities to expand democracy within our hemisphere. So you have a big job. Part of that is dealing with issues of public corruption. In the 2019 budget justification for Guatemala, USAID programs were to address corruption by improving internal controls and transparency of public financial management and procurement at the national and local levels. We were to help them increase transparency. How is that happening, and what is your assessment within the Guatemalan government? Recent actions have been tearing at the rule of law, violating the rule of law, tearing at the work that we have been focused on doing there. In Honduras $4.4 million were to go to NGOs to serve as watchdogs for government actions, to conduct social audits and evaluations of government programs and services, and advocate for reforms, and promote transparency there, again, and accountability. Can you talk about those two countries and how--what is the progress there? And I know that the administration was calling on a review of the funding within the Northern Triangle. What is the status of that review, the assistance that we are providing to the Northern Triangle? El Salvador has elected a new president. We are all hopeful. My glass is always half full. But we will see. Mr. Green. Thank you for the questions, and also for your passion for the region. We think it is very important. First off, you raised the issue of corruption and impunity in those three countries in particular, and it is right for you to raise and elevate that concern because it really touches almost every other aspect of their economy, their governance, and the environment that too often drives people to leave their homes and head northward. With respect to Guatemala, what I can say is some of the investments that we have made, the support of the special prosecutor's office for extortion and anticorruption, it has helped increase the number of final verdicts in extortion cases from 26 in 2015 to 512 in 2017. The number found guilty of extortion increased from 41 to 735 over the same period of time. Mrs. Torres. I have had several meetings with the attorney general in Guatemala, Ms. Porras. Those numbers sound really great, but we are talking about the little guy, right? We are talking about, you know, the little guy hitting up the liquor store, or the convenient supermarket, or the restaurant. The major cases of public corruption dealing with members of congress, narcotraffickers in congress, we have yet to hear about those. Mr. Green. I wish I could tell you that we had easy wins and victories to point to in there. It is difficult work. It is very difficult work. We will continue with it. I share your concerns and your priorities. Mrs. Torres. So as far as how much money has been spent in helping to improve the justice system, the judicial system in Guatemala? Mr. Green. I will have to get back to you. I don't have that number at my fingertip. Mrs. Torres. Okay. I apologize for not meeting with you ahead of time. I don't like to do the surprise questions. Mr. Green. We will make sure we get that to you. Mrs. Torres. Okay. Will you continue with Honduras? Mr. Green. Yes. So in Honduras our support has been to the Mission to Support the Fight Against Corruption and Impunity in Honduras. It has enabled the hiring of a record number of anticorruption judges, prosecutors, and investigators in Honduras. And so working closely with the national Attorney General, it has achieved three high-profile convictions and taken on three other high-profile corruption cases. So it is beginning to show some progress. And I agree with you, as you alluded to in Guatemala, sort of getting the big fish, if you will, is not only important for a sense of justice, but symbolically message-sending. So we will continue to push and to provide support where we can. We think your priorities are well-placed. Mrs. Torres. Thank you. My time is up and I yield back. The Chairwoman. Thank you. I just want to say before I turn to the next person, to my friend Ms. Torres, I was part of the administration's strategy led by Vice President Biden. And if I recall, Mr. Green, there was $3 billion appropriated over 4 years for the Triangle strategy. But I think you ask a very important question and I would love to have a follow-up meeting with you to see--I am not sure at this point whether all that money was spent. In some areas did it accomplish something? The reports we get back, and I know you get back, are extremely serious. People's lives are at stake. So I would like to follow up with you at some time to talk about that money, unless you know right now how much of that $3 billion was spent and did it accomplish anything, before our friend goes to another hearing. Mr. Green. I don't know off the top of my head. I will make sure that we have a briefing for you. But that is great, and I really appreciate the interest. Again, it is our neighborhood. This is important. The Chairwoman. Thank you. And thank you. Welcome to the committee, and thank you for bringing up an important issue. And I am delighted to turn it over to Ms. Roby. Mrs. Roby. Thank you, Madam Chair. And, Administrator Green, thank you for being here. Thank you for your service. And I appreciate all the time that you spent with me yesterday. It has been a hectic couple of days, so I appreciate your flexibility. And, Madam Chair and our leader, Mr. Rogers, I just want to tell you how grateful I am to be a member of this committee. I look forward to working with all of you. This is a very distinguished group of members of Congress, so I am very honored to get to join you here in this subcommittee. The Chairwoman. We are honored to---- Mrs. Roby. Thank you. Thank you. A couple things that we talked about yesterday, and I will just throw them out there and then give you an opportunity to respond. We had talked about some success stories between coordination between USAID and DOD, and I wanted to give you an opportunity to kind of expand on that. Also, as you know, my interest has been mostly focused on Afghanistan. Over the past 8 years I have spent quite a bit of time traveling there, and there are programs that are in place that there has been a little bit of frustration in terms of measuring outcomes instead of inputs. And one of the things that we also talked about was a change in the metrics of how you demonstrate that the investments are equating to positive outcomes. And so that also is of interest to me. And you can talk about that across the board, but you know my interest has been mainly focused in Afghanistan. And then I would leave you with just an open-ended question that is what do you need from Congress right now to continue the work of the agency? And in the immediate future what do you foresee as being pressing policy or budgetary matters that we need to be aware of so that you can continue to do the work that you do? Mr. Green. Great. Thank you. In terms of civ-mil relations, it is probably one of the best-kept secrets in terms of our work. We work very closely with the Department of Defense, largely in two different areas. First off, let me say that we have 23 staff from USAID who are embedded either at the Pentagon or in the Combatant Commands, and it has been that way for the last several years, certainly in crisis response. A few weeks into my tenure as Administrator we were responding to the second earthquake that hit Mexico City, and it was a crisis, as you can imagine. There were people trapped in buildings. After a phone call from Mexico Ministry of Foreign Affairs, as well as from the White House, we turned around, worked with our partners at DOD, and we were able to get a search-and- rescue team there by the next morning before breakfast. That is a clear case of where we partner with DOD to move our humanitarian people the most quick, effective way that we possibly can. More importantly, we work closely with DOD in stabilization efforts. So in conflict zones where there is success in the battlefield you only really lock up that success if you replace the vacuum with citizen-responsive institutions that begin to create a culture in which people have a stake in the survival of the community, and that is what we do, and that is what DOD doesn't want to do. And so we work hand in hand. I traveled with General Votel to Raqqa, Syria to take a look at our stabilization work there. So it is a wonderful relationship. We think it works well, and we look forward to it continuing to grow. With respect to Afghanistan, obviously a difficult working environment for a number of reasons, part of what we are trying to do in Afghanistan is to create economic vibrancy to create inclusive development that stabilizes some of the areas that have been rocked by years of conflict. We helped the Government of Afghanistan launch air cargo corridors that connect the country to markets in India, in the Gulf, in Europe. We have been working with the Government of India in which we bring young Afghan women craftsmen, if you will, to India to be trained in how to market and run small businesses and then bring them back. And I have seen some of that firsthand. What we try to do in our metrics is to not so much look at outputs as take a look at outcomes. Our view is that every country wants to lead itself, and so we should take a look at what the impediments are to its self-reliance, recognizing that every country is in a different place in its journey and every country has got external factors that have affected it, and Afghanistan is certainly one of them. But we are working to try to build their regulatory capacity and their access to markets so that hopefully we have a vibrant market-based economy for the future. Mrs. Roby. My time is up, but I just--I want to ask you that before my next trip specifically to Afghanistan I would like--I would love an opportunity to sit down with you to go over the specific programs and really drill down so that I will have an opportunity to ask questions while there. So thank you. And thank you, Madam Chair. And you can respond to my last question some other time, but I am sure you will let us know. Mr. Green. Most definitely. We would be happy to provide a briefing and show you projects while you are there. The Chairwoman. And I would like to say, Ms. Roby, I look forward to working with you. And I can remember the number of girls, it was about a million girls who were in school. I don't know if those million girls are still in school, and it has become harder and harder--and you have been there so many times; I have been there several times--to actually go out and see the schools and see if they are there. In fact, I do recall an incredible Afghan woman was a member of their congress, and her daughter was killed not too long ago. You probably remember that, too, because she looked so much like her mother. The education of girls has been a key priority for us, and I would really appreciate the opportunity to do more and to get an update from you on how many girls and women are in schools now, and are those schools still in existence, and are they still enabling other girls to have that opportunity, among other issues. Thank you for your work. Mr. Green. The only response I have is that your priorities are well-placed, that inclusive development is the key to Afghanistan, not merely development, but inclusive development that creates a broader investment by all parts of the community. Women and girls for too long have been entirely marginalized, and we know that is inherently unstable and inherently doesn't produce the development outcomes that we all want to see, including the Afghans themselves. The Chairwoman. And there has been Ms. Roby and Ms. Davis, other women members--I don't know if you allow men to go with you on this trip. Mrs. Roby. Not on that one. The Chairwoman. Not on that one. But they have been keeping up on these issues. So I thank you, and we look forward to--I am so pleased that we were joined by Mr. Price. There are many hearings at the same time. So we can turn to you if you are ready to ask a question. Mr. Price. I think I better be ready--miss the chance here--I do apologize for the back-and-forth act here with all the different hearings. I want to let you know about a request that you already have, and I will not dwell on it because I want to move to another question. But we really do appreciate your long history with and support of the House Democracy Partnership, the work we do with emerging democracies in legislative strengthening in particular. I am going to submit a question for the record. I think your staff has already got this underway. We want to make sure we have a good baseline as to where legislative strengthening has gone on, where it is still going on, how much of this is USAID contracts, how much may be happening through other offices, and so forth. So we do want to support that work and would appreciate a good information baseline. I want to address West Bank funding, and I come to this with some evidence brought to me by constituents who have worked for many years in the West Bank, and in particular with a school in Bethlehem, the Hope Flowers School. These constituents were there a few weeks ago. They have seen the work done there to help Palestinian children. The chairman and I have visited this school some years ago. They have worked for years teaching nonviolence, citizenship, social and community skills. Using a USAID grant, the Hope Flowers School trained and provided special education teachers and therapists to work with Palestinian students with trauma, learning disabilities, and autism. They have just been awarded a new USAID grant to expand this work into the local community. Now, my understanding is without this grant the classes and staff helping students with autism will be eliminated, there will be no services for more than 200 children who get referred to the Hope Flowers School for diagnosis and an educational plan. How could anyone think cutting off that aid is in this country's interest? Mr. Green. Thank you, Congressman Price. What I can tell you is that we are working under the Anti- Terrorism Clarification Act, or ATCA, as it is called. As a result of the passage of ATCA, the Palestinian Authority, at the end of January of this year, requested that we no longer provide funding, and so we have ended all ESF projects and programs funded with the assistance and under the authority specified in ATCA in the West Bank and Gaza. Welcome the chance to continue discussions with you on the future of West Bank-Gaza assistance. But as a result of the passage of that law we have been directed by attorneys at the State Department and USAID, and again, as a specific request of the Palestinian Authority to cease assistance. And so we are having to take a look at the very footprint of our operations there. Mr. Price. Well, there are reports, as I am sure you know, that USAID tried to find a workaround to allow the continuation of certain development assistance projects, but that request was denied by the White House. I would appreciate your comment on that. And also it sounds to me like a fix to the Anti-Terrorism Clarification Act might be indicated. Would you support that? What would it look like? Mr. Green. We would welcome an opportunity to work with you with respect to that legislation and any changes that you would seek to make. Mr. Price. All right. You know, the list is very long. One incredible--incredibly wasteful and counterproductive project involves Jericho: a nearly complete multimillion-dollar sewage network in Jericho. It is going to have to be buried under asphalt and abandoned, because of this pulling of aid. And it just seems wasteful, seems counterproductive in terms of this country's interest and in terms of the kind of effort we all should concentrate on to strengthen the forces of moderation and democratic development in the Palestinian community. Many, many frustrations here. But one of the bright spots has been our very targeted, very discriminating aid efforts, and this just appears to be a wrecking-ball operation, as we come in and wipe these away. Mr. Green. I look forward to working with you. Mr. Price. Thank you. Thank you, Mr.--Madam Chairman. The Chairwoman. I would like to just follow up because my friend--excuse me--Congressman Price makes a very important point. And, Mr. Green, assistance was stopped before ATCA by this administration's review. As you know, the United States is currently not providing bilateral aid to the Palestinian people in the West Bank and Gaza Strip. In my judgment, this is a decision that doesn't make any sense. It reverses more than 2 decades of bipartisan support for humanitarian, economic, and security assistance, and I have long argued that such funding with stringent conditions plays a critical role in improving the lives of Palestinians, helping to improve economic opportunity and providing stability to both sides in the conflict. I don't want to put you on the spot because I know you very well, but you are working for this administration. I would like to know what, in your view, will cutting off bilateral aid accomplish, putting aside ATCA. This decision was made before ATCA. And if you could share with us the impact of these cuts, especially on the United States' ability to influence a future two-state solution--that is--I am still hoping, and I have been working for that for a very long time--a two-state solution between Israelis and Palestinians. So ATCA is a problem, but this administration took that position before ATCA. And I just want to say, because I know my good friend was involved as well, people like Dennis Ross used to give me advice, lists of groups that were doing important work, which we funded, in the West Bank. So if you can explain to me what will cutting off all bilateral aid accomplish, I would be most appreciative. Mr. Green. Thank you, Madam Chairwoman. What I can tell you is--and you are correct. In 2018 the President had a review of U.S. assistance to the Palestinian Authority and in the West Bank and Gaza to ensure that these funds were spent in accordance with U.S. national interests and were providing value. And that review at that time froze the assistance that was going. As a result of that review we did redirect certain funds. And then on top of that came the Anti-Terrorism Clarification Act and the resulting correspondence that we received from the Palestinian Authority. So I can tell you that that is how we got to the situation where we are. Obviously we are all hopeful--we are hopeful, in particular--for a long-term solution that allows us to continue doing what we think is important work. The Chairwoman. I guess it is my turn. I just wanted to add to my good friend, because this is of great concern to me, we are waiting for this great peace plan that Jared and Jason Greenblatt are waiting to produce, but I haven't seen anything yet, and I am very concerned. I will say that I have met with a group like Arava, which is doing some important environmental work, working with those on every side of the issue, Palestinians and Israelis. So there are some groups like Arava. But since I am asking the question now, maybe you can discuss further the impact of these cuts, especially on the United States' ability to influence a future two-state solution between Israelis and Palestinians. And maybe you can share with us, if you have any idea. Does Jason Greenblatt talk with you, or Jared talk with you? Do we know about this great peace plan while they are cutting off all funds that I think is so destructive? Mr. Green. I don't know the details of the peace plan. It is no surprise to you. I have met with Jason just once. This was some time ago. I can't tell you what the pillars of that peace plan are, to be honest. In terms of a full-on description of what the review and what ATCA--what the ramifications are, I don't have that on my fingertips but I can pledge to you that we will provide a briefing. We don't seek to hide any of that. The Chairwoman. I think that would be very helpful because we keep hearing about this great peace plan. Then on another day, we are hearing, well, maybe there won't be a peace plan. In the meantime there is suffering, and for those of us who still have dreams of a two-state solution one day--and I have been in Congress for a long time, but it seems that cutting off all aid takes us backwards and doesn't move forward in a positive direction. ATCA is another story, and I think that this doesn't help in moving the process forward. But I would like to, and I know Mr. Price and others would like to, have a complete briefing. I would appreciate that. On another area, since we solved the West Bank and Gaza issue: The Russian government is pursuing efforts to undermine democracy, weaken multilateral institutions, and reverse economic progress. If you could share with us what role USAID should play in countering the malign influence of Russia in Europe and Eurasia, and does USAID have programs designed to counter Russia disinformation? Mr. Green. Thank you, Madam Chairwoman, for that question. As someone who once led an organization that was declared undesirable by Vladimir Putin it is an issue of particular relevance and significance for me. We are crafting and unveiling something that we call the Countering Kremlin Influence initiative, and it really has several prongs. Number one is economic independence by those countries which the--which Moscow and the Kremlin seeks to influence. So it is no surprise as to what they are, countries like Ukraine, particularly energy independence. Secondly, working to foster independent media and media literacy for markets. I have seen a number of studies that show what the Kremlin is trying to do in terms of their messaging and their media work, and most of it isn't attempting to convince everyone that the Kremlin is right; it is instead trying to undermine basic democratic institutions and to break apart coalitions. So I think we need to continue to have a concentrated effort to create media literacy so people can spot the disinformation, and strengthen those independent media tools. I was in Prague not so long ago and had a chance to meet with some of the civil society groups based in that region that are attempting to do this work, and we will continue to support them. We think it is very important. The Chairwoman. Since we have so few people here I can't resist continuing this discussion for a minute. How has the administration's previous proposed spending cuts for Europe and Eurasia affected individual missions in the region? Does USAID plan to close or downgrade missions in Europe and Eurasia? Did I ask that question right? If you could respond. Mr. Green. Sure. We have no plans to close missions at this time. We naturally adjust footprints of missions around the world based upon changing conditions, progress that is made in self-reliance, but we do not have plans to close missions. The Chairwoman. Now, as I understand it the 2019 request would have cut assistance for the region by approximately 55 percent. I would be interested in your view as what message does this send to our partners in the region, and how does it impact your job and USAID's effectiveness in pushing back against Russia? Mr. Green. Well, inevitably cuts of that level, that significance, would force us to readjust operations and readjust our presence. Inevitably those are the costs, so yes, that would have forced us to reduce operations in that region and other areas affected by the impact. I obviously believe strongly in our team and our programs and stand up for them. On the other hand, we do the best we can with the resources we are provided to make them go as far as we possibly can and to prioritize countries on the basis of metrics like our journey to self-reliance. But restrictions in assistance certainly reduce that which we can do. The Chairwoman. I don't want to put you into a difficult position, but as you know, members of this committee choose this committee because they have a real commitment to the work of USAID and the important role of the United States throughout the world. So perhaps we can have another discussion and talk with you about how we could be helpful in advocacy and helping you do your job, because we know of your commitment and we have a great deal of faith in you, but we are very disappointed in some of the decisions that are being made. Maybe they come from a lack of interest of some people in the administration; maybe it comes from a real divergence in opinions about leadership of the United States. But I am hoping that we can put together a briefing, and I know my good friend, Mr. Price, and his Democracy Partnership have been totally focused on how we can help move these governments in a positive direction. So perhaps, Mr. Price, we can have a follow-up briefing, which would be very helpful, because we are all--and I believe it is bipartisan--very concerned about these cuts that are being made. And I would be interested to know on what facts they are based. So I thank you, and I am very pleased---- Mr. Green. If I might, just to provide a clarification for the record, in Europe and Eurasia, in the case of Albania we will be entering into discussions on an evolving footprint there and what those programs look like. That is not an immediate mission closure decision, but just to--in the interest of full transparency, and this is not the first we have brought this to your staff, but just to be clear, we are taking a look in Albania at adjusting programming as they continue to rise in their self-reliance. The Chairwoman. Now I don't want to cut you off, so we look forward to that briefing. But if you have any other positive information that you care to share that isn't a cut in programs I am sure my colleagues on both sides of the aisle would be happy to extend your answer time. Or if you would rather wait. Mr. Green. Well, I will just say I am a big fan of the House Democracy Partnership, and I think it is the one program that is out there which allows us to not only reinforce democracy in countries, but also the dispersion of power. Oftentimes at the State Department and at the country-to- country level, we think only chief executive-to-chief executive, but the value of the House Democracy Partnership is to build those legislative institutions that we all believe are the hallmark of Western democracies, and so I am a big fan of the work. The Chairwoman. Thank you very much. Mr. Rogers. Mr. Rogers. Thank you, Madam Chair. Let me harken us back to the more mundane part of the world that deals with the bureaucracy. I know it has to be done. In my opening statement I mentioned my concern about a top management challenge that the USAID Inspector General has identified many years in a row now. Vulnerabilities in your financial management remain a challenge, she says. One of the issues has to do with USAID's financial statements and reconciliation with the Treasury Department. Your books show one thing and Treasury's show another. And they are off by hundreds of millions of dollars. That is something we should not ignore, and work on, and you have worked on it. You have made noteworthy progress, she says, to address the problem. And yet, it is once again identified in the I.G.'s fiscal year 2019 Top Management Challenges report. In coordination with the OIG, have you developed a remediation plan to address issues with financial reconciliation? Mr. Green. There are two different pieces to that. Number one are recommendations with respect to management of programs and grants, and yes, in that case we have been undertaking a number of significant reforms that will change the entire way that we do that. Secondly, what you are referring to is a historical fund balance with Treasury, $131 million, resulting from a change in our financial management systems. This resulted from USAID's systems not properly recording all outlays. There is no evidence, as the OIG confirms, that we over- expended any of our accounts. We have identified and resolved the problems that have led to the discrepancies, and we are, in fact, working on a plan with OMB on how to resolve that imbalance. Mr. Rogers. When do you think that will be approved, assessed, and the like? Mr. Green. I am sorry? Mr. Rogers. When will that be concluded? Mr. Green. I don't know. I can't tell you for certain. But we are working on it actively. The OIG sits in our regular senior management meetings so we are in constant communication on that. But I will make sure we get back to you with a specific timeline. Mr. Rogers. I would encourage you to get it over with. It is a---- Mr. Green. Yes. Mr. Rogers. Burr under the saddle that doesn't need to be there. Mr. Green. Right. But I would say, again, there is no evidence of an over-expending; it is a discrepancy in outlay timings. But we will definitely work on that and we will get to you a plan, a timeline. Mr. Rogers. Secondly and differently, you mentioned in your opening remarks about reorganization. We didn't give you a chance yet to expound on that or expand on it. You have a different name for it I think. What is it called? Mr. Green. Transformation. Mr. Rogers. Transformation. Tell us about it. Mr. Green. And it is called transformation at this point because we are in the implementation phase of the whole operation. So in terms of all of the measures that we have brought before you, the one that is furthest along is the creation essentially of a new Bureau for Humanitarian Assistance, and that is the C.N. that all four committees of jurisdiction have approved, and so we are in the process of implementation. Our commitment to you is to be transparent each step of the way so that you can see how we are doing it, doing it with full consultation, because we want this to be sustainable and we want it to last. We have provided a timeline to you that shows when and how we plan to take each of the steps along the way, again, the humanitarian assistance bureau being the furthest along. Another aspect to our transformation plans is captured by the Private Sector Engagement Policy that we unveiled last year, as well as the procurement reform that we are undertaking. People naturally focus on the structural changes because those are the most visible externally, but in many ways it is the, if you will, the software of our changes--private sector engagement, procurement reform--that I think will have the longest-lasting changes. The idea is when we are done with all this that we will have an agency that is more field-focused than ever before and is more nimble than ever before. All of the reforms that we seek to undertake have been led by career-led workstreams. We want to make it clear that it is not a political or partisan matter. It is a matter of taking the best ideas that we can find from this administration and past administrations and taking the opportunity of the mandate of a redesign to try to bring them to pass, in consultation with all of you. Mr. Rogers. I think there are nine pieces of your transformation, and you have submitted those to us. We have evaluated them over the last months and years even, and I think we have approved five of the nine. Mr. Green. This committee has, correct. Mr. Rogers. This committee has. And yet it still needs to be done in the full committee and wherever else. Is it important that we approve these changes to give you this transformation you are referring to? How important is this? Mr. Green. It is very important to us because it helps us do our work more effectively and efficiently. You know, these are changes that need to be sequences and will--and we know will take some time. The journey to self-reliance metrics framework is the first stop that we have undertaken, but certainly we are committed to working with you and we would like to keep these on track. But yes, they are very important. They will allow us to be more efficient in what we do. Mr. Rogers. Madam Chairwoman, this is something important, I think, for us and him--more important to him--for us to bear down and approve those nine pieces of this reorganization so we can get on with a better way of doing business. Thank you. Mr. Price. Thank you, Madam Chairwoman. Let's turn to the Northern Triangle countries of Central America. Our foreign policy and our immigration policy in recent years has focused on these countries by virtue of the migrant flows, the huge numbers of families, women and children, unaccompanied children that have sought refuge in this country, have come north and turned themselves in, usually, at the borders and sought refugee status. I remember when this first occurred, when this pattern first became apparent. Ms. Granger led a CODEL to Guatemala and Honduras and the then commander of Southern Command, General Kelly, flew to Guatemala City to confer with us. I will just speak for myself. It was the first time I had focused on the need for in-country support, in-country assistance in these Triangle countries to make life more tolerable, to make life more secure, yes, but also to invest in health, education, other things that made it more desirable and feasible and safe for people to remain in those countries and not to seek to migrate. And General Kelly, others from across the political spectrum, had a large influence, as you know, on the Obama administration and on Congress. And in fiscal years 2016 and 2017 we worked with the Obama administration to increase assistance to that region by something like 50 percent. And it was a diverse package of assistance, but a lot of it had to do with conditions in the home countries that would enable people more safely and securely to stay there. When the Trump administration came in and set up their first budget, they proposed slashing assistance to each of those three countries. It was a devastating budget. I remember asking General Kelly how he accounted for this and he really couldn't account for it. But whatever the reasons were, it was a devastating proposal and totally, totally ignored the reasoning--the very sound reasoning, I think--that had gone into those increases. Now, I give Mr. Rogers a lot of credit for this: Congress did not accept those budgets. Congress restored funding in Guatemala, Honduras, El Salvador in many respects. We didn't fully do that. There has been a decline since 2016 and 2017, but the worse of the damage was avoided. On the other hand, the potential of this has not been realized, and so now we are awaiting another budget. We hope that the past is not the prologue here, but we will see what the new budget looks like with respect to this item. But I want you to comment on it. You are someone in a very good position to know what might be feasible here. I don't mean budget-wise. I mean feasible in terms of having the desired impact. This clearly isn't a border security problem mainly. And so that is the--of course, realizing that we have in the past looked at the situation in the home countries and how to make some impact on that. So I wonder what you think the potential there is and what the consequences should be for the way with think about our foreign affairs budget in the Triangle region. Mr. Green. Thank you for the question. So what we are--well, first off, as you know as a general matter, what we are trying to do in the region is to tackle the conditions that you and I both believe are drivers of irregular migration: problems of crime, problems of lack of economic opportunity, problems of a lack of meaningful education and workforce skills, and also governance in all of this enhanced by corruption. Two things that we are trying to do that I think--I hope will make our programs even more effective. Number one is trying to target our investments in those places the statistics tell us are the origins of many of those fleeing and heading north. So we are working with Customs and Border Protection to try to identify geographically what those communities are. Secondly, we are putting into our programs in the performance evaluation trying to measure the impact these investments have on those who are heading north so that it is a little bit better tailored. You and I both believe that the investments that we have been making are important and are having a positive effect. What we are trying to do is make that more precise so it is easier to document and we can make sure that we are placing them right where they need to be in terms of those investments. Mr. Price. General Kelly, at about the time we visited, had written a much-circulated article for the Military Times. You may remember that. And he didn't quite use the term, but the implication was that something like a Plan Colombia was required for the Triangle countries in order to have the desired impact with all hands on deck, in terms of government agencies and forms of support. We seem some distance from that now, but the prescription still may be on target. And so I think the kind of approach you are talking about--of course the funding level is important, but also a discriminating appreciation of what kinds of aid have the most impact and where we should be targeting our efforts, that is important, as well. So we simply must work with you on this, and we appreciate your attention to it. The Chairwoman. First of all, I want to say thank you to my colleague. When Ms. Torres was here we were talking about that, because I remember I was part of that Biden team and I was looking at the numbers: $750 million 2016, $650 million 2012, $600 million 2018, $527.8 million, total of $3.528 billion for 4 years. Given the administration's focus on immigration, I know the administration would like to increase those numbers to provide assistance. I should keep the smile off my face when I say that, but these are important discussions, and I know we all are concerned with what is happening in that region of the world. And having been part of the original effort, I think it is important to Mr. Price, myself, both sides of the aisle that we have an in-depth briefing. What did we spend? What did we accomplish? What can we do differently? And I thank you again. The importance of this issue is clear to this committee. Thank you for bringing this up again, and I know Ms. Torres and many of us will work on it, so thank you so much. Mr. Fortenberry. Mr. Fortenberry. Thank you, Madam Chair. Mr. Administrator, let me just put everything else I have got on the table and then we will try to unpack as much as we can: Haiti, Colombia, Farmer-to-Farmer, and the new DELTA Act. Let me start with Haiti. Maybe if we have a little time to get to Russia after all that. As I know you are aware, Haiti is one of the larger recipients of United States aid, and understandably so. The conditions there of, again, structural poverty, being in our neighborhood, is just such a deep scandal for so many of us. The country's dislocations, the current political upheaval, and on and on, make your work there both very important and very difficult. But one of the underlying issues, obviously--well, not--it is not obvious; this is a problem--is the border area between the Dominican Republic and Haiti. The consequences of economic dislocation because of the, let's say, underground movement of goods there or--movement of goods there that defy both market logic and disrupt the economy of Haiti are one of the key areas in which I think we need to focus on. We put in the bill last year some considerations in this regard. Could you address that? Let me secondly move to Colombia right quick. One of the principals in the Colombian congress had spoken to me one time about if they just reforested the acres that they have lost due to the FARC and that war against them, that that could potentially offset 20 percent of the emissions in the United States. Again, reforestation is a part of the broader conservation set of initiatives, actually gets us all to a place where we agree on the approach to environmental stewardship and the impact of manmade activity on the environment. Farmer-to-Farmer, my predecessor, Congressman Doug Bereuter, who I happened to see this morning, conceived of this idea. A great concept linking farmers across America who have expertise with some of the world's poor to help them advance. As we look at Feed the Future countries and better coordination of strategy there, using a program like Farmer-to- Farmer as a pull strategy, that actually implements two things: our expertise worldwide to fight against hunger and create the right types of long-term structural development there in the agriculture space, but also enhancing diplomacy to me is the right thing to do. We tried to reform Farmer-to-Farmer in the Farm Bill. We got part of the way there. Part of a metric that I think we need to use is what we call yield gap analysis, which actually can determine whether or not what we are doing in Feed the Future countries is actually resulting in the outcomes that we want to see in terms of addressing the needs of poverty and hunger. Finally, the DELTA Act. Very proud of this initiative. You are familiar with it: Defending Economic Livelihoods and Endangered Animals. What we have done here is basically create the possibility of a transnational--tri-national conservation area between Botswana, Angola, and Namibia to protect the extraordinary ecosystem of the Okavango Delta. Beyond that, though, thinking about, again, the creative ways in which conservation and preservation of delicate ecosystems actually lead to economic livelihood, and then promote almost unimaginable possibilities in new emerging diplomatic relations in areas in which we in the past have had some difficulties. So you got a minute and 30 seconds to do all that. Unless, Madam Chair, you will be kind enough to extend me a little flexibility. The Chairwoman. Always my pleasure. Mr. Green. And thank you for the questions. I traveled to Haiti in December, and it wasn't really until that trip that I took that I began to appreciate just how much the dysfunctional border between Haiti and Dominican Republic impacts the economic prospects in Haiti. It is hard for me to see Haiti becoming at all self-reliant as long as you are having the problems that we are of smuggling of goods and ineffective revenue collection in that D.R.-Haiti border. Mr. Fortenberry. Can I stop you there? Madam Chair, would you be willing, perhaps with Ms. Lee, to go deeper into this issue? Because all of the good work that the administrator and we are trying to do in Haiti is impacted, or undermined potentially, by this singular problem. And it is a severe dislocation but it is not well-known. The Chairwoman. I won't go into detail, but I think you probably remember that we had a briefing--was it about a year ago or 2 years ago? Mr. Fortenberry. Four years ago. The Chairwoman. But two of the best people USAID has ever had that were assigned to Haiti. They were extraordinary. Now, I went on my honeymoon to Haiti a long time ago. Mr. Fortenberry. Really? The Chairwoman. I have also been to the Dominican Republic. Mr. Rogers. And look what happened to the economy. [Laughter.] The Chairwoman. But I would like to say that was probably one of the best briefings I ever had. And I think what you are saying is important because I was so proud of our representatives. I wish I could say that the results equaled the talent and expertise of our representative. We can go into this further, but I would be most eager to work with you to get--I think my good friend, Mr. Rogers, was there as well, and---- Mr. Fortenberry. For your honeymoon, too? [Laughter.] The Chairwoman. Not on my honeymoon. It is a good thing I could be excused because my voice is so bad you don't understand what I am saying anyway. But I would like to follow up with you. All I am saying, it seems to me we have this discussion, we put some of the best people there, and unfortunately the progress doesn't measure the talent. And I would love to have further discussions. Mr. Fortenberry. Okay. The point of raising it and using so much time is, again, if you could help us help you with the right kind of language embedded in our bill that addresses this--because again, we did so as a first step last year, and of course that bill is just being implemented--it would be helpful to us. I don't pretend to have a fullness of an answer here. I just know this is a problem. And we have a huge investment in Haiti, but the preconditions for that investment to be made whole rely on this--an--a successful outcome here. So can you help us? Mr. Green. Yes, I don't disagree with you. This last trip I think really laid that bare for me. I met some young entrepreneurs. You know, they are working hard at it. You saw some economic growth, but they were being undercut by smuggled goods and they can't rise. I mean, it is impossible to have a full, vibrant economy with a dysfunctional border like that. So you have my commitment. We are starting to put together a working group. Haiti is a country that has tremendous bipartisan support. We all want to see success, so I would very much like to take it on with all of you. Mr. Fortenberry. Okay. Reforestation, Farmer-to-Farmer, and DELTA. Mr. Green. Farmer-to-Farmer, we have expanded the grants from Fiscal Year 2018 and we are trying to embed that more with our cutting-edge research capabilities. As the son-in-law of a farmer and a believer in farm diplomacy, we want to keep expanding it. We think it is like the Peace Corps, it is American diplomacy at its best. Mr. Fortenberry. Let's brand it. Mr. Green. And---- Mr. Fortenberry. I think the brand has been lost. Mr. Green. Let's work on that. And in terms of reforestation, we think this is--it is sound from a biodiversity point of view, but it is also really important economically. Unless we create economic self-interest in the areas around these parks there is no reason that parks and forest land are going to survive. Creating economic vibrancy so that people have a stake in the park's survival is key. We have seen it work in so many places. So we would like to reinforce that. Mr. Fortenberry. So you will have an implementation plan on the DELTA Act? Mr. Green. Sure, yes. Mr. Fortenberry. Okay. Thank you. Thank you, Madam Chair. The Chairwoman. To be continued. Mr. Fortenberry. Yes, ma'am. The Chairwoman. Ms. Roby. Mrs. Roby. I will be brief and allow you to answer the last part of my previous set of questions. But, Madam Chair, one of my children once complained about not wanting to go to school and said, ``Why do you not have to go to school, Mom?'' I think today's hearing is, as are many, is evidence that we learn a lot in this job every single day, and I am grateful for the opportunity to continue to work on a deep dive with all of the specifics of these very necessary programs that exist throughout the world. And so again, I just can't tell you how grateful I am to be here, and I appreciate you taking the time to be with us. The last part of my question was very open-ended, and we will give you an opportunity to tell us what you want us to know, but how can Congress--what do you need from Congress right now to continue the important work of your agency? And in the immediate future, what do you foresee as being a pressing policy or budgetary matter that you want us today, here right now, to be aware of? Mr. Green. I think it is continued attention to at least one aspect of Ms. Lowey, the Chairwoman, has begun to address, and that is how we provide basic services to displaced communities. What I always tell people, what truly worries me and gets me up in the middle of the night is the fact that we have 70 million displaced people in the world. We have children being born in camps, raised in camps; we provide nutrition but we are not adequately tending to their needs to keep their connectivity to the outside world so that someday, God willing, the fence comes down, the gate opens up, they are able to be productive members of whatever society they are in. So I am really worried about providing service in conflict, post-conflict, and crisis settings. With the Chairwoman's leadership we have been able to use the generous education funding to begin to address that. We are just scratching the surface. We have a long way to go. That is the single most important challenge I would point to for all of you. The Chairwoman. Well, I thank you and I know you had a hard stop at 12 noon. But I really do appreciate the wisdom of all the members of this committee. And I would just say in closing, I hope this is not difficult for you, but I would hope you would give us a budget request that is real. Mr. Green. Sure. The Chairwoman. So let me also say I appreciate your leadership. I thank you for your time. As you can see, there is a lot of depth of all these members. They are interested in these issues, and I am hoping we can continue this discussion informally and help you by giving you the resources we need and the technical assistance that you need, frankly, to do the job. So I thank you so much. I thank you, for both sides of the aisle, for your wisdom. There is so much interest here and we look forward to continuing to work together. And I hope our throats clear up. I hope you feel better. Thank you very much. Thank you. Okay, I have to say this concludes today's hearing. The Subcommittee on State, Foreign Operations, and Related Programs stands--it stands adjourned. Thank you. [Questions and answers submitted for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, March 27, 2019. DEPARTMENT OF STATE BUDGET REQUEST FOR FISCAL YEAR 2020 WITNESS HON. MIKE POMPEO, SECRETARY, DEPARTMENT OF STATE Opening Statement of Chairwoman Lowey The Chairwoman. The Subcommittee on State, Foreign Operations and Related Programs will come to order. Secretary Pompeo, while it has taken some time for you to come before the subcommittee, and we realize you are traveling all around the world, I do want to thank you for joining us today. It is important that this subcommittee, with direct jurisdiction over your Department's funding, hears from you on the fiscal year 2020 budget. Before I address the President's inadequate 2020 budget request, I must respond to the Mexico City announcement you made yesterday. Your additional expansion of the Global Gag Rule compromises our ability to support comprehensive, life- saving care to those most in need. International NGOs should not be forced to choose between accepting life-saving assistance from the United States or providing legal comprehensive care with their own funds. This policy expansion could dramatically impede the effectiveness of our foreign assistance and life-saving programs. Not to mention this type of coercion runs contrary to the basic tenets of freedom that our country was founded upon. Excuse me. I hope you are good and healthy and don't have this cough. Now, I want to address your recent comment that President Trump has ensured that the State Department has the resources it needs. Frankly, I find it hard to fathom when his first two budgets propose cuts to diplomacy and development by more than 30 percent and the current request proposes a cut of 21 percent. These are resources that the State Department needs. The State Department has never had to operate under the draconian levels proposed by the President as they have never been approved by the House even in the Republican majority. This committee consistently provides bipartisan support to maintain United States global leadership. I am astonished that 3 years into his administration, the President still does not appreciate the merits of sustained investments in diplomacy and development. Mr. Secretary, I have seen firsthand how United States foreign assistance alleviates suffering and promotes stability. Our efforts, as you well know, save lives, promote good will and partnership, and support American investments and national security. If the President's budget were enacted, it would undermine U.S. leadership and stymie worldwide efforts to counter violent extremism, terrorism, and disinformation. As you know, there is tremendous turmoil around the globe, including increased attacks on democratic principles such as: freedom of the press; the rule of law and the right to free and fair elections; millions of refugees and internally displaced persons throughout the world; the chaotic situation in Venezuela; the continuing reign of terror of the murderous dictator Bashar al- Assad in Syria; a rapidly expanding global population, which further exacerbates conditions that contribute to hunger and poverty, which can lead to conflict and migration; the spread of infectious and neglected tropical diseases, some of which are becoming drug resistant; and, lastly, ongoing threats posed by North Korea, Russia, Iran, and China that undermine the security and prosperity of the United States and our allies. Mr. Secretary, not one of these dangers is positively addressed by shortchanging the federal agencies tasked with executing United States foreign policy. Additionally, I am concerned about the long-term damage this administration is inflicting on State and USAID through policies that reduce response time, result in inadequate staffing levels and low- staff morale, and prevent partnerships with some of the most capable and experienced implementers. There is no better example than the Kemp-Kasten determination against UNFPA which undermines our effectiveness, making it harder to reach people who need us the most. I am also very troubled that President Trump seems to view foreign assistance as a reward to our friends and its withdrawal as punishment to our enemies. Moreover, the administration's approach to multilateral engagement at the United Nations, the World Bank, and elsewhere has been reactionary and shortsighted at best. These self-inflicted constraints compromise the quality of our efforts, make it harder to maintain American leadership in the world, create risk to our national security and are a disservice to the American taxpayer. Our national security is strongest when development, diplomacy and defense are all well-funded and equally prioritized. As Chairwoman, I intend to work with my colleagues to reject the insufficient request and maintain responsible investments in foreign aid. Before we move to your testimony, I would be delighted to turn to Mr. Rogers, the Ranking Member, for his opening statement. Mr. Rogers. Thank you, Madam Chair. Opening Remarks of Mr. Rogers Mr. Secretary, welcome back to your old stomping grounds, the House, on the Hill. We are proud of your service here in the House when you were here, and we are delighted to see one of us has--done good. Mr. Secretary, I firmly believe that strong investments in diplomatic and development programs are a central component of our national security. In fact, our most senior military commanders have told us time and again that these critical tools help provide the means by which we prevent the need for military intervention. That is why I was once again disappointed, frankly, after reviewing the budget request for programs funded by this subcommittee. You say in your congressional budget justification that the request prioritizes the security of U.S. citizens, increases American prosperity, and supports our allies and partners. I believe you would see more support in Congress if the proposed funding level matched that rhetoric. Instead, the request is a cut of nearly $11.5 billion, 21 percent, from fiscal year 2019. Although this year's international affairs request represents some improvements from the previous two fiscal years, it is still woefully inadequate to achieve the administration's foreign policy and national security goals. I wholeheartedly agree that taxpayer dollars must be used wisely and that programs need to be more effective and efficient. Lord, yes. I am committed to working with you and the State Department to find the best ways to do that. But if we were to accept cuts of the magnitude proposed, it would make our nation less safe, and make it harder to achieve the effectiveness we all seek. In particular, deep reductions are proposed to important priorities like security assistance, global health, democracy promotion and even lifesaving humanitarian assistance. These programs demonstrate the character of our country. Given what the world looks like right now, this approach seems detached from reality. During a time of record displacement of individuals and families, a growing number of countries facing instability and rising geopolitical tensions, U.S. leadership abroad is even more critical. The budget request we have before us will simply not get that job done. That being said, there are some proposals in your budget I fully support and hope we can pass, including the $3.3 billion for Israel, reflecting our steadfast commitment to Israel's security and military strength. I am also pleased to see $1.3 billion requested for Egypt's Foreign Military Financing. Yesterday, we celebrated 40 years of peace between these two American allies, who have achieved much together, despite perpetually high tensions in that region. I appreciate your continued prioritization of these relations, Mr. Secretary. I also note that the budget request appears to have moved beyond the proposed cuts of personnel levels we have seen in prior years. There is still a long way to go to make up lost ground from the hiring freeze but I applaud this progress, nonetheless. Another priority is the management and oversight of the Department. I continue to believe there needs to be a position at the highest levels that brings together both operations and assistance. And you and I have had this conversation several times. But right now, these two sides of the House don't really talk. And that continues to hamper the Department's ability to address its management challenges. Ultimately, the Legislative Branch has the responsibility to equip leaders like yourself with the resources that you need to advance our economic and security interests. And so we are eager to hear from you on these important funding issues today. I also look forward to hearing about your travels. You have just returned from the Middle East. We are interested in your impressions while there. Iran's continued nuclear pursuits, missile development, and support for terrorist activity, weigh heavily on our minds as well as yours. Before that trip, you were in Asia. We all want to see North Korea denuclearize and hope that the people of North Korea might one day experience freedom and prosperity. China's role in how that turns out is questionable as are their motives throughout the globe. The Chinese government's practice of predatory lending to developing countries is not just immoral, it has real security consequences for our partners in the region and beyond. I may return to that during the question period but I fear much of the world is not awakened to the reality of the potential damage China could do to international security. You have also visited Europe this year so we would appreciate your update on how we can help assure and defend our allies and partners in Europe. The Russian bear only understands strength. We must do everything in our power to help our friends in Europe stand strong to resist rampant Russian aggression on all fronts. Lastly, you returned from Latin America at the beginning of January. The outcome of the current crisis in Venezuela will shape the future of that region for decades to come. We must remain in solidarity with the people of Venezuela and the democratic interim government. A free and democratic Venezuela that can restore what once was a thriving economy is the first step to addressing many of the other challenges in the neighborhood, including combating transnational criminal organizations and stopping the flow of drugs into this country. We can't let Maduro and his cronies further destabilize that whole region. Finally, before I close, I want you to know you have my unwavering support for your efforts to protect the rights of the unborn. We were not provided with the details of your announcement yesterday, but I look forward to receiving a full readout of your plans. Secretary Pompeo, I want to thank you again for your service to our country as well as the men and women of the Department. I hope you will continue to engage with our subcommittee as we begin our work for fiscal year 2020. This is a partnership and your input is appreciated and valued. And we will be a true partner with you. I yield back. The Chairwoman. Thank you. After the secretary presents his testimony, I will call on members based on seniority of members present when the hearing was called to order. I will alternate between majority and minority. Each member is asked to keep questions to within 5 minutes per round; we will be doing two rounds today. Mr. Secretary, we will be happy to place your full testimony in the record. If you would be kind enough to summarize your oral statement, I want to make sure we leave enough time to get to everyone's questions. But Secretary Pompeo, please proceed as you wish. Secretary Pompeo. Chairwoman Lowey, thank you. I will absolutely summarize. Opening Remarks of Secretary Pompeo Chairwoman Lowey, Ranking Member Rogers, thank you. Distinguished members of the subcommittee, thank you for being with me this morning and thanks for the opportunity to discuss the president's F.Y. 2020 budget. I am glad I am here. It is the first hearing in front of the 116th Congress and I am glad it is with you all. In order to support the president's National Security Strategy and achieve our foreign policy goals, we this year submitted a request for $40 billion for the State Department and USAID. It will protect our citizens at home and abroad and advance American prosperity and values. It will support our allies and partners overseas. And you should know there are difficult choices when budgets are to be made. You face these constraints too and we should always be mindful of the burden that American taxpayers have and our obligation to deliver exceptional results on their behalf. This budget request will help us achieve our diplomatic goals in several ways. First, we will make sure that China and Russia cannot gain a strategic advantage, in an era of renewed Great Power Competition; we will continue our progress towards the final, fully verified denuclearization of North Korea; and we will support the people of Venezuela as they work toward a peaceful restoration of democracy and prosperity in their country. We will also continue to confront the Islamic Republic of Iran's maligned behavior and we will help our allies and partners become more secure and economically self-reliant. And I will also make sure that our world-class diplomatic personnel have the resources they need to execute American diplomacy in the 21st century. I look forward to continuing to work with each of you on these key foreign policy priorities and many more issues as well. I want to allow enough time for questions, so I will keep these remarks short. With that, I look forward to taking questions from you, Madam Chairwoman, Ranking Member, and other members of your committee. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you, Mr. Secretary. There are so many questions and I know our members are eager to have a conversation with you. Firstly, I want to say I really do appreciate the time you have spent with allies in the Middle East in an effort to strengthen our partnerships. However, I do have concerns regarding the direction of our policy under this administration. Let me start with an issue I have worked on during my entire career in Congress, Arab-Israeli peace. Do you support a resolution to this conflict that results in two states with two peoples living side-by-side in peace and security and mutual recognition? Secretary Pompeo. A year while I have been the Secretary, I have the simple, realistic goal of providing a vision for the Israelis and the Palestinians to find their path forward. What that path will be will certainly be up to them. But we have been at this a long time, as you described it, we have been at this decades, to try and resolve this incredibly complicated issue. I think we have some ideas that are new, and fresh, and different and we hope that those will appeal not only to the Israelis and the Palestinians, but to the larger set of threats that have prevented this conflict from being resolved over the past years and decades. The Chairwoman. I appreciate your commitment, I appreciate your answer, and I do look forward to working with you because I remember being on the White House lawn when Yitzhak Rabin and Yasser Arafat were shaking hands. The contours of any agreement have historically focused on borders, settlements, Jerusalem refugees and mutual recognition. Are these still the parameters around which you believe the two sides would return to the negotiating table? Secretary Pompeo. I guess I would say two things. First, those are the parameters that were largely at hand in the discussions before and they led us to where we are today, no resolution so we are hoping that we can actually broaden the aperture, that we can broaden this debate. The goal, it is a goal founded in the facts on the ground and a realistic assessment of what will get us a good outcome. How can we make the lives of the Palestinian people better? How can we do the same for the people of Israel? And how can we find a path forward so that this historic challenge that has presented conflict and risk throughout the Middle East for decades can be resolved? The Chairwoman. I appreciate that answer, and I want to make it very clear, given the demographics in the West Bank and Gaza and given Israel's longstanding democratic principles, wouldn't you agree that a two-state solution is the best way for most people, for both people, to coexist peacefully and with dignity? Secretary Pompeo. If you will permit me to demur again, you will see this administration's vision. And then ultimately, it will be the peoples of those two lands that resolve this and make that decision about how it is they will come together and what the contours of that resolution will look like. Our mission set is to help them with new ideas, fresh ideas to create a real opportunity that America and others who have tried to resolve this have not been able to do for years, and years and years. The Chairwoman. Thank you. I know we will be continuing that discussion. I want to address one other issue quickly, because by the end of fiscal year 2019, the United States will owe approximately $1.1 billion in arrears to the United Nations, roughly $750 million of which comes from fiscal year 2017, 2018, 2019 and $328 million prior to fiscal year 2001. The failure of the United States to pay its bills has delayed payments to countries whose troops support peacekeeping forces, raising concerns about the sustainability of the U.N. peacekeeping system. And just three months ago, the United States supported the General Assembly's new scales of assessment, which slightly lowered the U.S. peacekeeping contribution to 27.89 percent for the next three years. Yet, the fiscal year 2020 budget request would support a rate of only 16.2 percent, and this doesn't reach the assessment rate agreed upon in the 1990s, not to mention what the U.S. just agreed to. Why don't we make good on the agreements that we just made? Secretary Pompeo. So, Madam Chairwoman, we are working our way through this. I have had a handful of discussions with Secretary General Guterres on this issue. It is the case that this administration is trying to get others to step up, particularly I think you mentioned with respect to U.N. peacekeeping costs, others to step up and share this burden. We think that is important. We have been working on this. We continue to work at this. The leadership at the U.N. acknowledges that there has been a historic imbalance with respect to how this how this has been done and our efforts continue. We still pay far and away the largest share of those forces. We have done so for decades. We did so last year as well. And I am confident we will do so again this year. The Chairwoman. Thank you, Mr. Secretary. Mr. Rogers, we are delighted to hear from you. Mr. Rogers. Thank you, Madam Chair. Mr. Secretary, it was about 30 years ago that I led a delegation to Indonesia, and one of the stops we made was Bali, and we had a rare meeting with the man known as the Prince of Bali. He was known that way because he would have been the King of Bali had they not been absorbed into Indonesia. But a sage, a wise, old man, he was probably at that time in his mid-80s. He was one of the founders of SEATO. And he agreed to meet with us, which was a rare occasion for him, in his compound, because he was worried about a decreased presence of the United States in his region. We had a long talk over cigars after a wonderful meal. But he had the theory that China was out to assemble all of the countries and people whom they deemed were Chinese descendants, which included Bali. Now we are seeing that prophecy come to life. The military preparedness that China has invested in the Indo-Pacific is overwhelming. They are able to bully many of these peaceful Asian countries with economic enslavement with what is it called? The Belt and Road Initiative, the economic investment that they make in a country and then jerk out that financing at a later time. What are we doing in Indo-Pacific to be sure that we protect the people like the Prince of Bali and all of the millions of people in that region from being dominated by the bully China? Secretary Pompeo. Mr. Ranking Member, I think he was ahead of his time in recognizing this threat. And I think the United States and indeed, the Western world didn't pay attention to this in the way that was necessary. We are hopeful our administration has made substantial steps in--that. You saw it in our National Security Strategy. We changed the way we think about China from a national security perspective. We all know the important economic relationships that the United States has with China. And happy to compete around the world with them when it is fair and transparent and under the rule of law. But the increasing risk that China poses to the United States and the West is real, and it is even more true in their backyard. And I hear that each time I travel throughout Asia or Southeast Asia. They want the United States there. So we have put forward what we have called our Indo-Pacific Strategy, and it has a handful of components to it. Certainly, one piece is the capacity of our military to be able to ensure that we have free and open navigation of waterways there. But there is also an enormous component that is diplomatic. It is America being present. It is us assisting our companies, ensuring that when there is a bid tender in Indonesia or Vietnam or in Australia or Japan or South Korea that the competition's fair and free, and that the Chinese showing up with that diplomacy or, worse yet, corruption and bribery isn't something that drives the rule of law and transparency out of the way. We are committed to and I will be travelling to Asia, at least I plan to twice here before the middle of the year to continue to work to develop this. We work through ASEAN. It is central to this effort. The ASEAN nations are more aware of this risk today, and we also have the mission to make sure that we share with them our understanding of these threats and help them understand the facts as they really are. Mr. Rogers. Well, the Prince of Bali was concerned 30 years ago that we would vacate the region and leave them at the mercy of the Chinese. So the American presence there was what concerned him. And I heard the same story that you have as well, of course. Vietnam, Malaysia, Singapore, you name it, they have the exact same feeling toward China that I found on Bali. Our military people tell me that this has to be a whole-of- government approach that we make in Indo-Pacific; that the State Department, USAID, all of the agencies of the federal government, including the military, must be present there in a unified, holistic approach to the problem. Do you agree with that? Secretary Pompeo. I do. Mr. Rogers. I think It is important that we maintain that South China Sea presence that we have historically. I think that is very symbolic to the Asian people that we are there, and we intend to be there in defense of their freedom so I thank you, Mr. Secretary, for you service and your travels. Welcome back to your old home. Thank you. Secretary Pompeo. One last thing to say. The legislation that you all passed last year, the BUILD Act, and now resourcing the BUILD Act will prove an important component of our efforts that you just talked about, the need that we have to ensure that countries understand that America is there and present and we will continue to be so. Mr. Rogers. Good, thank you. The Chairwoman. Ms. Meng. Ms. Meng. Thank you, Madam Chairwoman and Mr. Ranking Member. And thank you, Secretary Pompeo, for being with us today. I wanted to ask about refugee funding. I am concerned that a 24 percent across-the-board cut is not only irresponsible but dangerous to our national security. As you know, there are currently more people who have been forcibly displaced than any other time in our history--68.5 million according to UNHCR. At least a whole generation of children have been born and will live their formative years in refugee camps. Since the president has dramatically reduced the role of the U.S. as an option for resettlement, the role of the U.S. government in this context has become increasingly political and diplomatic. I am concerned that decoupling refugee programming from the diplomatic efforts of the State Department by transitioning almost all MRA money to the International Humanitarian Assistance Bureau will reduce the effectiveness of U.S. diplomacy on refugee issues. How do you envision the balance between the diplomatic and development roles required in U.S. engagement on refugee issues? Secretary Pompeo. Appreciate that question. There is a lively debate about how that ought to proceed. I have come to my conclusion. The State Department needs to be at the front of that, needs to be needs to be incredibly involved in those, need to be incredibly well-connected so that we execute the U.S. policy on this appropriately. I will say today I believe that is happening. I will give you an example from the last-- what is today? Wednesday, the last 5 days I was in Lebanon talking about approximately 1.5 million Syrian refugees that are in Lebanon today, the burden that places on Lebanon, the cost, the risk that presents to Lebanon and its democracy and it was the State Department leading that discussion about how we can get the conditions right on the ground inside of Syria, how the United States and our Arab and Western partners can get the conditions right on the ground in Syria, such that those refugees can return to their homes. And that is the mission set that Lebanese people want. I frankly believe it is best for those individuals, as well. But we have got to make sure that the conditions are right, and it is something that the United States Department of State will be at the front of. Ms. Meng. I appreciate you saying that you are prioritizing it. I am concerned that we will not be able to do that if so many resources have been stripped from the State Department. Have duties of PRM already begun being transitioned to USAID? Secretary Pompeo. You know, I don't know the answer to--I want to make sure I give you an accurate answer to that. If I may get back to you, I would prefer to do that. Ms. Meng. Yes, that would be great. Secretary Pompeo. It could be that not in a significant way, but it could be that there is a handful of things that-- that have happened that you might characterize that way. I want to make sure and give you a real picture of what it is we are actually doing. Ms. Meng. Okay, great. Thank you so much. My second question, I will try to do this quickly. How does the State Department intend to target the critical issue of women's economic empowerment while cutting fundamental women's health and education programming. Does this not ensure that WGDP will fail to be sustainable over the long term? Secretary Pompeo. Well, we created it, and we intend to urge you all to fund it. And I hope the next administration, whenever that comes, will continue to build on this, as well. We believe this is an important program for women across the world. The whole team has been involved in this: the State Department; the White House with Ivanka Trump; DHS; DOD; it has been a whole-of-government approach from our administration to build this program out to make sure that we have the infrastructure in place that is appropriate, and then to resource it in a way that meets not just enough money, but make sure that whatever money we have, we are able to use effectively to achieve the aims of the program. Ms. Meng. Yes. Well, as you know, this is a bipartisan---- Secretary Pompeo. It is. Ms. Meng. Program and goal that we share here in Congress. Over a hundred countries place restrictions on the types of jobs that women can hold so this Initiative's emphasis on eliminating these barriers to participation and creating more enabling environments is a worthwhile one. So thank you. Secretary Pompeo. Thank you, ma'am. Ms. Meng. I yield back. The Chairwoman. Thank you. Mr. Fortenberry. Mr. Fortenberry. Thank you, Madam Chair, for convening this important hearing. Mr. Secretary, good morning. Thank you. Nice to see you. First of all, let me commend you for taking diplomacy on the road not just abroad, but here in America. It was great to see you in Iowa talking about the importance of diplomacy to America. I would have preferred that you had done that in Nebraska, but close enough. Secretary Pompeo. I would--in Kansas. I owe you one. Mr. Fortenberry. Okay. Secretary Pompeo. All right. Mr. Fortenberry. It is the neighborhood, so but again, great job. We really appreciate you coming out. Last summer you convened a ministerial of foreign leaders to speak to the issue of religious pluralism and the respect for human dignity, the sacred space of conscience and the exercise of that right. Around the same time, at the behest of the vice president, I traveled to northern Iraq, along with Ambassador Sam Brownback, as well as Mark Green, USAID Director, to look at the dynamics of how our substantive aid that had been shifted to help the religious minority communities there who have been so decimated by the genocide of ISIS, how that aid could be sustained. I came back from that experience with three words in my mind: It is possible, it is urgent, but it depends on security. You and I have had this conversation before, but I would like to take just a few moments to unpack it a little bit more publicly. In response to that last piece, the security piece, I am very shortly--perhaps even today introducing a Northern Iraq Security Resolution, along with my good friend Anna Eshoo, a Democrat from California. We have worked very closely with the Foreign Affairs Committee and, I am hopeful that the United States Congress rallies around this concept of simply laying down a marker that urges, with international community help, the Iraqi central government, and the Kurdish government to integrate Christians and Yazidis and other religious minorities, Islamic minorities, into the regularized security forces with some degree of authority to protect Nineveh and Sinjar. If we don't do this, all of this aid is not going to be sustainable. There are willing international partners. There are certain sensitivities, sensibilities to this all over the world, among the Iraqis, among the Kurds, other international partners, with you, with the Vice President's Office, with the administration so I would like your response to this concept, again, of the United States just laying down a marker saying this is an important long-term strategy to restore the ancient tapestry of religious pluralism that used to thrive, particularly in northern Iraq, as well as Baghdad, but has been so decimated. And without that, we are going to lose that rich tradition, there is going to be more pressure for outmigration. Can the Iraqis ever achieve peace without this fundamental concept of tolerance and the space for religious pluralism? Secretary Pompeo. You and I have had a chance to talk about it some. I am happy that you raised it here this morning. The State Department and I can absolutely agree that this is a priority. I look forward to seeing the legislation. I haven't had a chance to see the legislation that you and Ms. Eshoo are going to present. I will be happy to work with you to see how we can effectuate that. Our mission set has been pretty clear to try and work with the Iraqi government to help them understand how important this is to get to the political resolution of a free, independent, sovereign Iraq. It is central that every religious minority be respected, have their opportunity to have their voice heard. And so, yes, I think this is a priority. It is a priority for the individuals affected, the religious minorities affected. It is a priority for the people of Iraq. And it is certainly important for American values, as well. Mr. Fortenberry. Thank you for that response, Mr. Secretary. You just recently traveled to the Middle East. I want to turn to the question of Egypt and our relationship there. The Ranking Member, Mr. Rogers, rightfully pointed out the importance of this relationship and we are at the 40-year mark of a peace treaty that has held between Israel and Egypt. In 1979, I entered the Sinai Desert as young man, and on this pile of twisted concrete and rubble which, sadly, is so typical as seen now throughout the Middle East, were scrawled the words in spray paint both in English and in Arabic. This had been the scene of the fighting in the 1973 war, and it said, Here, was the war. Here is the peace. That was a really important formative moment for me. This peace treaty, which at times has been cold, but has come at great sacrifice for both the Egyptians and the Israelis, brokered by the United States, is a template, a model. So Mr. Rogers', as well as your own, highlighting the importance of the relationship with Egypt, particularly in terms of the budget to me, it is a very essential priority because as we talk about potentially restoring Egypt's rightful place as a leader in the Arab world, without a strengthening of that relationship and quickly, I am afraid we may miss a critical moment here but there, again, is possibility. Secretary Pompeo. Thank you. I agree. If you saw on this trip to the Middle East, I did not visit Egypt. I did on the previous one, where I gave some remarks in Cairo that talked about that very issue in language very similar to what you just described. There are challenges in Egypt. There are human rights challenges in Egypt. We don't shy away from talking about those but that is an important strategic relationship, it is there, a linchpin of the Middle East and they have been a good ally in the counterterrorism fight as well. Mr. Fortenberry. Thank you. The Chairwoman. Thank you. Ms. Frankel. Ms. Frankel. Thank you, Madam Chair. Thank you, Mr. Secretary, for being here. Appreciate it. And for your service. Let me just start by saying this, my concern for your budget proposal is not so much what is in it, but really the cuts that are being made which some of my colleagues have pointed out. And Representative Lowey is a very kind person. And I think to call the budget inadequate is being very kind, because I am going to just say, I think it is embarrassing and dangerous. Okay. Now, so I have had my cathartic moment. Because I don't mean to be unkind. So I am going to start with something hopefully we can agree with. And that is, I am going to make a general statement, when women succeed, the world succeeds. And so, when women and girls are better educated, when they are healthier, when they are free from violence, not only are their families better off, but we find that their communities and there is more prosperity and It is more secure. Would you agree with that general proposition? Secretary Pompeo. Yes, ma'am. Wholeheartedly. Ms. Frankel. All right. Good so we are on the right track here. So and I also want to say this. I am very interested in your proposal on economic empowerment, which I want to have you get into it more, with the $100 million Women's Global Development and Prosperity Initiative. But I do want to follow up with Representative Meng's comments. And I want to say this because I really want you to take this to heart. I don't want to be mean-spirited, but I really hope you will take what some of us are saying and really think about this because some of these cuts on women's programs are going to undermine what you and Mrs. Ivanka Trump want to do in terms of getting women more economic power. You are slashing international family planning programs by more than half. You are eliminating all assistance to the U.N. Population Fund, which makes efforts to end child marriage and female genital mutilation and seeks to have healthy babies born. You are erasing the reproductive rights sections from the annual Human Rights Report. You have been pushing to remove reference to sexual and reproductive health care at the annual U.N. Commission on the Status of Women. Yesterday, you expanded the inhumane Global Gag Rule. I am telling you, your administration is abortion-obsessed. You are so obsessed with it that the side effects are devastating to health and are going to continue to devastate the health of women around the world. So before I get into that, let's just go back to some good news, I think. Which is, could you explain exactly what this new program, the Women's Global Development and Prosperity Initiative, is? And I would like to know whethe0r you have had to take money from other gender-based programs to fund it. Secretary Pompeo. So I appreciate the question. We have not had to do that. We may--I want to leave open the possibility, we may conclude that there is a better way to use other resources to more effectively deliver what this program is designed to do. And if we do, we may make a decision to do that. We will obviously ensure that Congress is fully informed and knows as we move money around. Look, the mission statement is really clear, when the president announced this in the Oval Office now, a couple months back. It is to do precisely what you described, it is to find the methods by which we can create not only laws, but cultures in countries where women are empowered, women are free to work, to raise their families in the way that they want to and have all the opportunities that we are counting on women to be able to have here in the United States, and have them all around the world. There will be lots of streams to this program, if you saw the announcement. I think almost every Cabinet, I think HHS was there, I think Commerce was there, State Department was present. There will be programs that will be rolled out. They are not fully fleshed out yet, to be sure, but will be rolled out all across the United States government to deliver against the primary objectives that the president set out that day. And I think he enunciated it pretty well and there was that wonderful bipartisan support thematically, for those objectives. Ms. Frankel. Well, I would just say this and I am going to have to have, I guess, a second round of questioning on some of the issues I brought up. But it is very important, really and you agreed with me, that if you want women to be economically prosperous, they have to be healthy, correct? I just want to stress that your budget and your actions by this administration is devastating the health of women around the world. And with that--and I am sorry to say that. Really, I am. Secretary Pompeo. I will say you suggested that you wouldn't be kind. You have been very kind. We simply disagree on that point. Ms. Frankel. All right, all right. I will kindly yield back to---- The Chairwoman. Thank you. Ms. Frankel. The chair. The Chairwoman. Thank you. Mrs. Roby. Mrs. Roby. Mr. Secretary, it is great to see you. And I hope your family is well. And we appreciate your service to our country. And, again, we are just really glad to have you here today. First, I want to thank you for the announcement that came out of the State Department yesterday. The Mexico City Policy, which prohibits U.S. government funds from going to NGOs that perform abortions, was expanded to include NGOs that provide financial assistance to abortion providers. American tax dollars are not allowed to fund abortions in this country, and countries around the world should be no exception. I am glad that the Trump administration has made the commitment to expand upon this Reagan-era rule. And I thank you for your leadership in protecting the unborn. In regard to the State Department's budget request, I too am glad to see that women's economic empowerment was made a priority. And so to build upon my colleague's--some of her statements, as you know, the State Department's request included a hundred million for the new program in USAID called the Women's Global Development and Prosperity Initiative. And in my role as a member of Congress, I have had the privilege and have been fortunate enough to travel to several countries many of which are seriously lacking in policies conducive to economic freedom for a woman and her ability to be financially independent. And so I wanted to ask you--and I know you just said that some of these programs are being developed as we speak but in which countries do you foresee that we will be focusing these investments? Secretary Pompeo. So we have not set out yet how we are going to prioritize. But as a matter of logic, you can imagine these programs going in many places, certainly in countries throughout Africa, countries in the Middle East as well, places that just don't have the history of empowering women, allowing women to behave in the way that--engage in activity the way we know every human being has the right to be. Mrs. Roby. I appreciate that. And, of course, a lot of the work that I have been fortunate enough to be able to engage in, is in Afghanistan, and where as we have seen many, many gains for women, we also know how fragile it is as well. And so as you move forward in developing these programs, I hope that you will continue to make us aware of exactly what this looks like. We know that the success of women is a key indicator of the success of a country. And so, I hope that you will keep us informed. The only other thing I would build upon as it relates to this question is making sure that we have also mechanisms in place to ensure that the beneficiaries of these investments are held accountable. And so, if you have any comments about that. I think some of the frustration in the past has been we make these investments in an attempt to offer opportunity, but then we are not able to measure--or we don't come back and measure real outcomes. And so, if you want to just comment on that. Secretary Pompeo. I welcome the opportunity. It is a very valid criticism, and not only of programs that relate to women's empowerment, but of U.S. government and I will speak for the State Department programs as well. We as taxpayers, invest lots of money and it is difficult to, 5, 10 years later to identify the effectiveness of those resources. You see it in IG reports, you see it--workings at the State Department. More importantly, you see it in the world, you see this money and you see the relatively little change has been achieved. We are going to try in that program that you were referring to, the Global Women's Empowerment Program. But I and my team are trying it in every program we have, whether It is foreign assistance or humanitarian assistance, that we are providing, to ensure that when we do that, we have an objective, there are criteria, there are outcomes that are measurable, even if not always quantifiable, but measurable in a way that we can determine whether we achieved the goals that we set out to do. There is nothing sadder than to look at a history of a program and see that you have asked the taxpayers for hundreds of millions of dollars over years and years and years and the situation is no better or worse along the key criteria that were intended to be achieved. Mrs. Roby. I appreciate that very much. And I thank you again for being here today. And, Madam Chairman, I yield back. The Chairwoman. Thank you. And before I turn to my colleague Ms. Lee, I just want to make a very, very simple statement. Reference to this mysterious global abortion industry puts abortion politics at the center of every health program, rather than advancing the effectiveness of programs that saves lives. U.S. taxpayer dollars are not used to subsidize or promote abortions, period. I want to say that again. U.S. taxpayer dollars are not used subsidize or promote abortions, period. Ms. Lee. Ms. Lee. Thank you very much. Thanks, Mr. Secretary. First let me ask you about the HIV- AIDS accounts. Of course, you know, the United States--we have had long-standing bipartisan leadership on global health, especially on global HIV and AIDS epidemic. At the end of last year, we passed a PEPFAR extension. It was legislation that I authored with Congressman Chris Smith and President Trump signed it into law. And that was to reauthorize PEPFAR for 5 years. Additionally, Congressman Smith and I sponsored a bipartisan letter that was cosigned by 137 members in support of a strong United States contribution to the Global Fund's upcoming Sixth Replenishment Conference. At the same time, we know that our progress on preventing new infections is stagnant and that tens of millions of people will need sustained access to antiretroviral therapy over the next decade. A 2018 report by the Lancet Fund found stagnant or reduced funding coupled with a weakened global resolve to end the disease could result in a backsliding of our gains and allow the epidemic to rebound. The administration's 2020 budget request cuts the PEPFAR budget by 29 percent and proposes a new structure for the Global Fund pledge that would change the maximum U.S. share from 33 percent to 25 percent. Now, public reports have indicated that the administration intends to implement at this significantly lower match unless Congress mandates it. So this administration has put, of course, additional resources which we are pleased about--into the domestic HIV epidemic, but you are stepping back now from our leadership on the global side. It is really robbing Peter to pay Paul. So, Mr. Secretary, given the significant needs that we know exist, how does the U.S. expect to maintain its long-standing leadership role in addressing global health challenges with these steep cuts? As well as why in the world would you make a decision to reformulate the 33 percent for the Global Fund which we have maintained through eight Congresses and three administrations? Secretary Pompeo. This administration is absolutely committed to the mission set that you have just described. It has been--to your point, it has been a bipartisan effort from certainly my time in Congress and through today. There is no nation, including in the most recent fiscal year and including in the fiscal year ahead, that has been as generous and has asked their citizens to contribute as much to ending the scourge of AIDS, in not only the United States, but around the world. We will continue to lead. We will continue to be part of this program. I get updates from our team constantly. I have seen what we think that the 2- and 5- and 10-year outlook, we think we have been effective. This is one of the programs, I was just talking with Mrs. Roby. This is one of the programs where I think we can show demonstrable effectiveness for taxpayer dollars. And there comes a time in every program when you have to begin to think, you have been at this a long time, is there a way that you can deliver on this better? That is the objective that we have set out in our budget. Our aim, our mission, I think is shared, but we are always having to make decisions about how to apply resources against the problems set. And that is what we did on this one as well. Ms. Lee. Mr. Secretary, I think, because of what you just said, we are making progress, why would we pull back now and reduce our contribution to PEPFAR and the Global Fund, when in fact the American people want us to succeed, and every report that we have, shows that if we pull back, the infection rates will increase and we won't succeed? Secretary Pompeo. We are going to succeed. Ms. Lee. Mr. Secretary, with this type of a cut, we haven't seen any plan that would show that we are going to make sure that new infections don't emerge and that we are able to get this epidemic under control. But hopefully we will be able to get--go back to the drawing board on this. Also, let me just ask you about your 2020 budget, which proposes to cut bilateral aid to many of our key partners in Africa by at least 10 percent. This is after a well-documented track record of controversial statements, of course, from the president, identifying certain--***-*** countries, and, quite frankly, attitudes toward the Continent generally. Let me give you an example of what I am talking about. The budget would cut bilateral assistance to Ghana by 56 percent; Ethiopia by 33 percent; Mozambique by 14 percent, a country which is facing a huge challenge in the wake of the cyclone that killed more than a thousand people; South Sudan by 44 percent; South Africa by 71 percent, mostly in critical global health funds. Given these cuts, it is difficult to believe that the administration's Africa strategy is sound. And even, it almost demonstrates that the president meant what he said when he identified countries ***-*** countries so I would like to hear why you made these cuts. Secretary Pompeo. First of all, the predicate of your question is, in my judgment, fundamentally unsound. I am deeply aware of the State Department's Africa strategy, led by Tibor Nagy, wonderful officer in our Department. We have re-looked not only at Africa but every country, in terms of evaluating where we can most effectively achieve the United States' interests. This is what we are using taxpayer dollars, it is America that we are tasked with keeping secure and safe. And you have to make decisions. You have to demonstrate priorities. You have to ask your partners to step up. You have to ask your bilateral recipients of this aid, they have to step up and demonstrate that they are using your dollars and resources in the ways that you would intend them to do. And they have to take on economic challenges and security challenges in their own country, and get the politics right in their nation. And we have evaluated each of these criteria, both inside of the countries and how it fits inside the American strategic security objectives, and we are reallocating foreign assistance in that way. It is that straightforward. Ms. Lee. Do I have? Thank you. Okay. Thank you very much, Mr. Secretary. Secretary Pompeo. Yes, ma'am. Thank you. Ms. Lee. We will come back. The Chairwoman. Come back. Mr. Price. Mr. Price. Thank you, Madam Chair. Good morning, Mr. Secretary. Secretary Pompeo. Good morning. Mr. Price. Glad to have you with us. I want to return to the Israeli-Palestinian conflict. One of the guiding schools of thought on all sides I think, for years, has been the need for the U.S. to facilitate direct negotiations between the two parties. And in fact, you acknowledged that this morning in your answer to Mrs. Lowey. So now, outside the framework of any negotiations, outside the framework of any anticipated final status agreement, this administration has made a series of moves. One, you moved the U.S. embassy from Tel Aviv to Jerusalem unilaterally, apart from the kind of broader agreement previous administrations have sought. Two, you closed the Palestinian embassy in Washington, D.C. Three, you shut down the U.S. consulate in Jerusalem, the main U.S. eyes and ears on the ground in the West Bank and the main interlocutor for communicating with the Palestinians. Four, you cut off all U.S. contributions to UNRWA, closing schools in Gaza and exacerbating the severe humanitarian crisis there. Five, you cut off all assistance to the West Bank, even assistance going through American-led implementing partners on the ground, for things like food security, education for children with autism, I have an explicit example of that from some people working with a school in Bethlehem on that autism challenge, water treatments, oncology medicine, as well as programs that bring Israelis and Palestinians together for a dialogue and conflict mitigation. Now you are about to unveil a long-awaited peace agreement that you have drafted, no doubt with demands to follow, that the Palestinians be grateful for that plan and regard the U.S. as a fair-minded arbiter who respects their aspirations. Can you tell me how this is supposed to work? Am I missing something? Secretary Pompeo. Yes. Yes, you are. Mr. Price. Well, please, tell me. Secretary Pompeo. You are missing the history. Those things that you identified, the recognition of Jerusalem as the eternal capital of Israel, the homeland for the Jewish people, the decision to take the Israeli sovereignty, to recognize Israeli sovereignty, those are all things that are different. What went before didn't work. I think you would have to acknowledge that. Decades of trying the old way failed to resolve this conflict. It just---- Mr. Price. The idea of---- Secretary Pompeo. I met with each of the--if I may, just one more moment. Mr. Price. Yes. Secretary Pompeo. I met with each of the individuals who have been involved with this, at different times, over different times in my life. I have talked to them about the complexity of the situation. And to a person, they would acknowledge that the efforts that they made, the theories that they used, the strategies they developed failed to achieve the outcome that I think you and I share. Mr. Price. So you are satisfied that this administration has reached out effectively to the Palestinians and has assured them of your good faith and your goodwill, and that the Palestinian reaction to this is somehow off-base? Secretary Pompeo. Our vision will demonstrate our commitment, that we want Palestinians to have a better life as well. And I personally have had a number of interactions during my time in the Executive Branch with the leadership inside of the West Bank. I hope they will view us as a fair arbiter. We want a better outcome for both Israel and the people living in the West Bank and the Gaza Strip as well. Mr. Price. What does closing their embassy in Washington have to do with being a fair arbiter? Or closing, I think, equally serious is closing that consulate in Jerusalem. That basically cuts off diplomatic ties in both directions. And---- Secretary Pompeo. I would just---- Mr. Price. And the Hope Flowers School has an autism program that this country has supported and that many people are invested in, and all of a sudden, that funding's removed. When you have to pave over an infrastructure project in Jericho because the money is running out, is that demonstrating the kind of--and you know in the case of Venezuela, you have been very persuasive about the need to show empathy and support for ordinary people. I don't know how that lesson is lost--it appears to me, honestly, Mr. Secretary, that it has been lost on the Palestinian community. Secretary Pompeo. I appreciate your view. It is different from mine. I was just in that space. I was just in--at the facility that you referred to. Our connectivity--the people at the State Department that have worked on this issue in the West Bank for years are continuing to work on it. Mr. Price. So how do you assess the Palestinian response to closing their embassy and closing our consulate and cutting off all this aid, freezing the aid and then cutting it off? They are somehow supposed to be grateful for this? Secretary Pompeo. What we are aiming to do is resolve a decades-long conflict. Mr. Price. And this is the path forward, you are confident, to totally marginalize and alienate the Palestinian side? Secretary Pompeo. I am very confident that what was tried before failed. And I am optimistic that what we are doing will give us a better likelihood that we will achieve the outcomes that will be better for both the people of Israel and the Palestinian people as well. Mr. Price. Well, we certainly share that objective. And we will await the response on all sides to your peace plan. And also hope for a very measured response if that plan is criticized from the Palestinian side, as surely one can anticipate it will be. Secretary Pompeo. Yes, sir. Thank you. The Chairwoman. Mr. Secretary, before I turn to Ms. Torres, just following up on Mr. Price's question, when should we expect the Jared Kushner peace plan that has been talked about and worked on? As someone, similar to Mr. Price, who's worked on this issue for my whole career, I hope we don't have to wait another 20 years. Could you tell us when we will see the Jared Kushner peace plan? Secretary Pompeo. Yes, ma'am. I think we can say in less than 20 years. [Laughter.] The Chairwoman. How about being more precise? Secretary Pompeo. I just prefer not to be more precise. I am very hopeful that we will present our vision before too long. I am not trying to evade. I don't know precisely when and how it is we will present this. We have been working on it a while. We want to make sure we have it as complete and as effective, as good as we know how to do. When we get there, we will unveil it. The Chairwoman. Well, shall we say, many of us are cautiously optimistic that we can see some kind of a breakthrough. As I mentioned before, I do remember sitting on that White House lawn when Yasser Arafat and Yitzhak Rabin were shaking hands. So I would like to join you on that lawn again, or any place you suggest. Secretary Pompeo. Yes, ma'am. I would love to be there with you as well. The Chairwoman. Thank you. Ms. Torres. Ms. Torres. Mr. Secretary, thank you for your attendance and for that quick laugh. As the founder and co-chair of the Central America Caucus, I have been very focused on addressing the root causes of migration from that region. Providing foreign assistance is an important part of the answer, but it simply isn't enough. And if we are going to make progress on the very tough issues this region is facing: corruption, gang violence, and poverty, severe poverty--we need a comprehensive approach. And I know that you agree with that. For one, we urgently need an ambassador to Honduras, preferably someone with diplomatic experience and expertise in the region. We also need high-level engagement, regular meetings with the region's leaders to make sure that they are making progress on their commitments under the Alliance for Prosperity. And sometimes, we need to take tough actions when these leaders do things that are contrary to our mutually agreed goals for the region. So, I was surprised to see that on September 1, 2018, the day after Guatemalan officials decided to misuse J8 Jeeps that U.S. donated to them for the purpose of counternarcotic efforts at the border of Mexico, and utilized these vehicles in an effort to intimidate our U.S. embassy diplomats. And I was surprised to see that on September 1st, a tweet from your account stating that our relationship with Guatemala is important, and we greatly appreciate Guatemala's effort in counternarcotics and security. Now, your budget request includes $256.3 million for the Central American Regional Security Initiative. Combating corruption in the Northern Triangle has been a major priority for the U.S. strategy for engagement in Central America. Can you tell me, how does your budget request prioritize the fight against corruption in the Northern Triangle? Secretary Pompeo. Thank you. Thank you for your question. Thanks for your attention to this important place that frankly, I think doesn't get the focus that it needs. You see the challenges at our southern border, you see challenges more broadly, not only in Mexico but in South America, that result from ineffective governments in the Northern Triangle countries in Central America. So not only State Department but other elements of the United States government, DHS, DEA, and others are all focused on taking the RSI, the Regional Security Initiative, and delivering against it. I think Secretary Nielsen's actually down in the region today. I think she was flying--I think to Honduras today, to work on a number of issues that surround borders there and security there and political stability there. My team will join her in many of those meetings. Our priority really is to find the leaders in that region that are prepared to do the things, the difficult things, things that haven't been done for an awfully long time under different administrations, different administrations in the United States as well, and convince them that getting more stable, more democratic outcomes there can truly benefit the people of their country and lead to stability in the region. We know we have a role where we can assist them from a security perspective in countering transnational criminal organizations that are moving people and drugs out of there into the United States through multiple methods, and we are committed to doing that. And we think we have got this resourced in a way that is reasonable. And as President Trump has made clear, we are going to reinforce success. Where we see progress, where we see good programs, effective leadership, we will continue to assure that we apply resources against them. Ms. Torres. I agree that we need to encourage them. But at the same time, we don't need to encourage bad behavior, especially when they try to intimidate our diplomats in that region. I think that that was a slap in the face to us as Americans and I think that we should have responded accordingly by removing those vehicles and not rewarding them by giving them four additional vehicles after that incident occurred. How are we going to deal with these presidents that are refusing to hold themselves accountable and to allow the attorney generals to investigate massive corruption in the region? Secretary Pompeo. Well, we have seen challenges on all sides in each of these countries, both from the leaders and sometimes from the investigators too. The U.N. has a role, you are probably referring to CICIG in Guatemala as well and their role. You saw decisions we have made where we didn't see the transparency and the rule of law from those folks in the way that we needed to see that too. Look, it is difficult, you know this as well as I do. We are trying to find those who are prepared to set up truly transparent rule of law, democratic institutions, and support them. Ms. Torres. My time is up, sir---- Secretary Pompeo. We hope the people in the country will support them as well. And you should know too, I take it as a priority to make sure and protect my diplomats and officers that work under chief of mission control, even those that aren't State Department officials, to ensure that we do right by them every day. I think we did that there in Guatemala as well. Ms. Torres. I sent you my questions and concerns ahead of time and I hope to be able to continue that---- Secretary Pompeo. Yes ma'am. Ms. Torres. Dialogue in the next round. Thank you. The Chairwoman. We are going to go for another round. And I appreciate your time. Keep thinking you should be on a plane someplace. Secretary Pompeo. I am happy to be---- The Chairwoman. Is it not nice---- Secretary Pompeo. To be sitting---- The Chairwoman. To be here? Secretary Pompeo. Right here. The Chairwoman. That's right. Secretary Pompeo. Exactly. Yes, ma'am. The Chairwoman. This is an issue I have been concerned about for a very long time, so it is not just you and this administration. The Russian government is engaged in a concerted effort to undermine democracy, weaken multilateral institutions including NATO, and reverse economic independence and prosperity in Europe and Eurasia. I am extremely concerned about increased corruption, democratic backsliding in the region. The fiscal year 2020 request would cut assistance to the region by approximately 55 percent. I am sure that cut would turn things around but that is something we could discuss. What message does this send to Russia and our allies and partners about U.S. resolve? What is the State Department doing to counter the malign influence of Russia in Europe and Eurasia including through support to civil society, human rights, and the rule of law? Does the State Department have a counter Kremlin strategy similar to that of USAID? Tell us about your view of what Voice of America is doing, what the BBG is doing? They have a budget of about $800 million if I am correct and $250 million is for Voice of America. Are we just watching the change in Europe and the anti-American, anti-U.S. observations or is there something that we are doing to counter this? Secretary Pompeo. Boy, a handful of questions there. Let me just talk about what we are doing and then you can guide me to what you would prefer to talk about. The threat you identify is real. It is the case that Russia has interfered in elections here in the United States. It is going to try and interfere with one in Ukraine in a week and the half or so that is left and weeks that are left before government formation, but they are not the only country. There is lots of countries. China's done similar things. Iran has done similar things as well. But with respect to Russia, I think we have demonstrated our commitment, and I think Vladimir Putin gets that. I think we have demonstrated our commitment to pushing back against the threats that he poses to Europe and the West. I can cite along a long litany of not only the sanctions that exceed what any other administration has done, not only the kicking out of 60 Russian spies from the United States, the increase in the United States defense budget is certainly not something that the Russian leadership can be happy about. In fact, that we are exporting crude oil and national gas all around the world. Competing with Russian crude and natural gas is something I can tell you the Russians are deeply concerned about. The list goes on with respect to the seriousness we have taken, the risk that this presents to the United States, and we have done so all the while trying to places and I did so as CIA Director as well, trying to find places where we can find a shared, overlapping set of interests with Russia so that we can get better outcomes. If we can get to a better outcome in Syria by talking and working with them, if we can find ways to ensure that Americans who are flying on aircraft travelling around the world aren't harmed by Chechens out of Russia and the surrounding region, those are good things and things the administration has not only--it is not only a good thing that we are dealing with the Russians on them it is necessary and proper. The Chairwoman. Yes, I think the Global Engagement Center is still in existence. Secretary Pompeo. Yes, ma'am. It is. The Chairwoman. Do they do anything? Secretary Pompeo. Yes. They do. The Chairwoman. Tell us about it. Secretary Pompeo. Let me talk about broadly you mentioned both the BBG and the Voice of America. You put the Global Engagement---- The Chairwoman. Voice of America's really part of the BBG-- -- Secretary Pompeo. Right, and then I mentioned the Global Engagement Center. Each of which has a mission of overt communications, talking about sharing, spreading American values, countering propaganda that comes from all across the world. The Global Engagement Center, we now have Lea Gabrielle on board leading the charge. She has a couple of primary missions. Russian is one of those primary missions and we are happy to give you a briefing on what she is doing and what our team at the Global Engagement Center is doing. We think this will be important. You all have funded this quite well and we appreciate that. I want to come back, though, to the BBG. It is a challenge. It still has a leadership challenge because we all know the history of the BBG Board and how it came to be fractious and had become political. We still have not resolved that situation and I would urge to get a CEO of that organization in place so that the BBG will have the right leadership so that they can do the traditional mission perhaps in a different information environment than we did back in the Cold War that can perform its function in a way that is important and noble and reflects the enormous resources that American taxpayers have put towards that and I am very concerned about it. The Chairwoman. Thank you, Mr. Secretary. And I would like to schedule a briefing. This is an issue I have been working on for a long time. I am not blaming just this---- Secretary Pompeo. Yes. The Chairwoman. Administration. I have met with many people. At one point we were off in L.A. and we thought the movie industry could give us some advice and spread our message of democracy and hope and freedom, but frankly I think it is just getting worse. Secretary Pompeo. Yes, ma'am. I would be happy to have Ms. Gabrielle, and speak with you or your staff or however you think that would be appropriate. The Chairwoman. I would like to do it and invite as many of the members who are interested. Secretary Pompeo. Yes, ma'am. The Chairwoman. Thank you very much. Mr. Rogers. Mr. Rogers. Mr. Secretary, as you know, some 3.5 million Venezuelans have fled their country, and of those more than a million have gone to Colombia, and I am worried about what effect the Venezuelan problem is going to have on the whole region. Is your budget request sufficient to manage the humanitarian needs and the other challenges spilling over from Venezuela? Secretary Pompeo. It is a fair question. I think what are things to say about where they are today, I think the resources are likely sufficient but I think the best analysis is there will be another 2 million refugees from Venezuela or displaced persons from Venezuela. They will go somewhere, many to Colombia, some to Brazil, some to other nations in the region. It could be that we will come back and say we need additional assistance to address that need. We are trying to resolve that, right? We are trying to work with the Venezuelan people to ensure that Maduro leaves and we can begin to create--and this will be--just so we are all eyes wide open, this will be a years-long undertaking to provide the assistance in Venezuela to get the Venezuelan people back on their feet, the decimation that has taken place long before U.S. sanctions. Right, we are now years and years into the Maduro decimation of this country but we think we have got the resource level about right today. I do worry. Along that border, along that Colombian- Venezuelan border, ELN, FARC are using this uncertainty, this movement of peoples, this movement of goods and narcotics across that region to rebuild and strengthen. So that is not just a State Department function. There are other elements of the USG that will have a role in that but I do worry about the increased risk from the FARC and from ELN in that region as result of the chaos that Maduro has created. Mr. Rogers. Well finally, we have gotten the new president in Colombia on the right track and returning to aerial eradication of coca. I mean, we obviously support him heavily in that effort, yet I worry that any progress we have made with the new government on counter narcotics could be jeopardized by the chaos next door in Venezuela. What do you think about the effect of the counter narcotics effort? Secretary Pompeo. So we are concerned about it, and President Duque is concerned about it, too. He shared that with President Trump when he visited here and he shared it with me when I was in Colombia now a couple months back. He is concerned that about that as well. I guess there is three things to say, one: it is why the urgency can resolve the situation in Venezuela is so strong; second, it is why we have to continue to support President Duque and Columbia in their efforts, these counter-narcotics efforts, which have truly, I don't know the most recent numbers from the past weeks, but over the past years have escalated dramatically, much of that has moved here to the United States; and then finally, it is why the work that the State Department's done to build out this coalition, the OAS has been spectacular on the issues in Venezuela, the Lima Group, which largely, South American-led, but America's been an important partner in ensuring that the Lima Group gets this set of issues right. We need to continue to work with our friends and allies in the region to deliver better outcomes for Colombia. The risk that this issue of coca gets away from us is very real. Mr. Rogers. Quickly, on another topic, we have significant work ahead of us to counter Chinese espionage and technology theft. It will require extensive cooperation with our European and other allies like Japan and South Korea. I believe this will require deepened intelligence sharing and stricter review of foreign direct investment, export controls, communications procurement policy. Are we on the same page as the European Union is now regarding China? Secretary Pompeo. So it is mixed to be sure, the State Department has led a U.S. government-wide effort to share what we know, the threats as we see them, to make sure that not just France and Britain and Germany but every country all throughout Europe understands the risks as we see them and to provide our best wisdom on how to prevent those risks, the security risks that are presented. There are deep commercial issues here, as well. Big telecom providers find it lucrative to deal with Chinese businesses and put Huawei or ZTE equipment inside their infrastructure and networks. We have done our best to share with those businesses and the countries in which they reside the threat that we see from engaging in that, some of them simply have come to believe that they can mitigate these risks in ways that we just don't believe are possible. When you have telecommunications that are deeply connected to state-owned enterprises inside of China, we don't see that there is a technical mitigation risk that is possible and we have communicated to them and we are very hopeful that the Europeans will begin to move further in our direction in their understanding of those risks. Mr. Rogers. Well, a close American ally, Italy, has signed on to the Belt and Road Initiative of China. And apparently, China is making a big push into the European Union. Seeing that it is individualized, rather than a massive unified place, which is open country for them, China. Do you think that we can finally get the E.U. to stand up tall against China? Secretary Pompeo. I think we have made progress and I know that we are going to continue to push. Mr. Rogers. Good enough. Thank you. The Chairwoman. Mr. Fortenberry. Mr. Fortenberry. Thank you, Madam Chair. Along the line of reasoning that Ranking Member Rogers just said, Mr. Secretary, your agency and USAID, we give, together, give about $25 billion a year in humanitarian assistance, antipoverty programs, global health. How much does China give? It is a hypothetical. I don't mean to put you on the spot. Secretary Pompeo. A very, very small number. It would be-- -- Mr. Fortenberry. So one of the largest economies---- Secretary Pompeo. It would be a tiny fraction of this. Mr. Fortenberry. Okay. So one of the largest economies of the world that has been progressing through our trade relations, through trade relations with the others, takes minimal or no responsibility for the world's development wellbeing. The point here is I think the world is rapidly catching on that they are predatory lenders, without taking full responsibility for the broader ideals of an echo system of development. And in that regard, I am going to weave a little tale here. I want to follow up on Ms. Torres's comments. Our immigration debate is one that is obviously complex and difficult but part of the solution is to move it off the one- yard line and to get back upstream into the countries where there is significant pressure either because of unrest, crime, or just economic need for people to leave. And so several years ago we shifted a number of funds to the Northern Triangle to try to work constructively on systems of justice and systematic economic reforms to create the conditions in which people can thrive there, which is a part of our broader immigration policy and I agree with this. You mentioned the BUILD Act, though, tying back to the proper echo system for development. China runs around the world building large infrastructure projects with their own labor, taxing the internal resources of countries, particularly in Africa, leaving large debt behind in those countries. We are running around the world trying to help people who are sick, trying to attack the structures of poverty, trying to create food security and the types of micro-development assistance which lead to long-term stability and just government, just economic outcomes and just governance. The BUILD Act is hopefully, an attempt for us to re-create and reimagine what development systems ought to be because we have got our own problems frankly with fragmentation. So could it be one of the pathways, particularly in the Northern Triangle, in which we think about the ecosystem of development more creatively, rather just a large terminal or a large road and calling it development but how we get underneath the structures of the deep wounds and structures of poverty and assist economically but also assist with stability so that people can have flourishing lives where they live? Secretary Pompeo. Yes. I believe that the model, the BUILD Act model---- Mr. Fortenberry. Is it a significant pathway for that kind of---- Secretary Pompeo. It is significantly different than the way we have done before in multiple dimensions, not the least of which is, it involves the private sector, as well. We have watched other countries tie their government to their private sector in ways that we would never do and we are proud that we have this separation in the United States. I am not suggesting for a moment we should behave the way they do with their governments' state-owned enterprises but being connected, having understanding, having American values talked about explicitly in the way we engage in the world I think is incredibly important. I think the BUILD Act is a very good model for that. Mr. Fortenberry. Well, sometimes the market doesn't function properly. Secretary Pompeo. That is right. Mr. Fortenberry. It needs capital assistance from public sources to actually springboard into viable partnerships with the private sector who should be virtuously committed to again the long-term ecosystem of proper economic well-being and development, and I think this is getting us there. I do see it as one pathway for reform of the fragmentation that we have. The ideal of again correcting market failure but leveraging the best of the market in private outcomes so that there is continuity and sustainability of the initial aid. Sometimes we do the right thing by trying to build out a school but when our soldiers or troops leave, it reverts back to what it was and it is not sustainable. So, anyway, I am sorry for the speech here, but I am trying to immerse myself in this space and I actually need to talk to you, Ms. Lowey, about this. We want to convene a mapping strategy with key principles in this area. All the way from the World Food Program to the World Bank, to the International Agriculture Fund and others---- Secretary Pompeo. The IMF, others who are involved in these financing relationships. Mr. Fortenberry. To try to rethink whether or not we are overlapping, we are too fragmented and more creative, imaginative ways to approach a whole variety of poverty assistance programs worldwide. Secretary Pompeo. Yes sir. The Chairwoman. Thank you. Ms. Lee. Ms. Lee. Thank you very much. Mr. Secretary, I asked you earlier about countries in Africa and the deep cuts that are being made by this budget. Now I would like to ask you about the cuts proposed for the Western Hemisphere, which I believe you proposed about one- third of the U.S. assistance to Western Hemisphere countries be cut. Again, these countries include countries in Latin America and the Caribbean. We know there are very real challenges that the region faces from the humanitarian crisis in Venezuela and the migration challenges it has created in the region, to the recent civil unrest in Haiti, to the vulnerability of countries in the Caribbean. So these significant cuts, which cut across the board in your proposed budget for the western hemisphere appear to be at odds, quite frankly, with the State Department's own policy to promote economic growth and prosperity and democratic governance. I am sure you know that China, and I know these countries very well, China is filling the void in many ways that have historically been neglected by the United States. In addition, I am concerned that your budget again--you are pulling PEPFAR funding from several countries in the Caribbean and with your intent to not continue such policies. It is already done this in countries like Haiti, where only 35 percent of 30,000 people living with HIV were accessing retroviral therapy. So I would think we would go in the opposite direction and try to help these countries in terms of economic growth, in terms of development assistance and given the geopolitical issues that our country has with China, I think that we would see what China is engaged in, in the Caribbean countries and really, in many ways send a signal that we do care about this region. My second question, and I will just ask you very quickly with regard to Cuba, I want to know what impact has the reduction of staff at the U.S. Embassy had in Havana on embassy operations, and I would like to know the status of the 26 members of the U.S. embassy community stationed in Havana in terms of the health injuries, including hearing loss and cognitive issues. What is the status of the investigation into these unexplained health injuries? We have been following this very closely and there seems to be no conclusion yet, and yet the efforts toward at least people to people exchanges, and moving towards some semblance of private sector and people involvement in Cuba has been stopped, and the health issues have been used as a rationale for beginning to pull out, quite frankly. Secretary Pompeo. I will try and take your first question at least in part. You began by talking about Chinese import or Chinese influence in the Caribbean region. It is real. It is an attempt to undermine Western democracy and Western values in those countries. We are the first administration to actually take this issue seriously and those issues long predate this administration. We have confronted it. You can look at State Department demarches, you can look at our State Department mission statement. You can look at the priorities that I set out when I had ambassadors from all across that region in the world into the State Department in January this year. We understand and are directing our foreign assistance directly aimed at competing every place that China is trying to compete. It is a fact that we will never show up with as much money as China is going to show up with. That will never be the basis of the competition. If it is, we will fail. Rather we---- Ms. Lee. Mr. Secretary, I am not asking us to show up with as much money. I am asking us why are we cutting where we have never really invested. Secretary Pompeo [continuing]. We are going to make sure. I agree, the previous administration failed to invest there, I will concede that. We are very focused on this issue. I want to save a bit of time to talk about the very important issues you raised in your second question if I may. I was and remained very concerned about those who have suffered health incidents in Cuba. We have expended enormous resources. We more broadly than just the State Department have expended enormous resources to identify the cause of this issue and importantly to take care of the broadly defined needs of those who have been injured by these health attacks. We have not been able to resolve this yet. Some of the best minds not just in government but across the global medical system have not yet been able to identify and connect up so that we can find the cause so that we can go attack the problem set. It has proven incredibly vexing. I continue to worry for the officers that we have there. We have--we are doing all that we can to make sure that they do not suffer health incidents as well. We have a reduced staff there as a result of this. It absolutely reduces our capacity to perform our diplomatic function there. We have asked the Cuban government to help us. They have done nothing to help us identify the cause of this. They say they had nothing to do with it and in some cases, they have suggested we are making it up or it is not real. My Deputy John Sullivan, runs a Health Incident Task Force that meets each and every week to talk about the status of every dimension of this, how we are keeping our current officers safe, do we have the right staffing level, have we provided the resources to assist those who have been injured, are we doing the right thing to protect not only ours but other Americans that travel to the country? We are incredibly focused on this issue, but it remains a real concern. The Chairwoman. Thank you. Mr. Price. Or Ms. Meng is next? Ms. Meng. I wanted to ask about Iran and Syria. We have seen over the last several years of the conflict in Syria that Iran has managed to entrench itself deeply within Syrian territory. What more can the United States do to stem Iran's involvement in Syria? And in the context of your administration talking about the U.S. retreating, how will a retreat from Syria affect Iran's presence? Secretary Pompeo. Well, we are not retreating, and had the previous administration not refused to take any action that might have upset the apple cart with respect to the JCPOA, we would not have the problem today not only with Iran and Syria but Iran's support of the Houthis in Yemen, Iran's running militias inside of Iraq, Hezbollah's influence in Lebanon. The list goes on. When we took office, Iran was on the march. We have done a number of things to try and turn that around: first of all, we acknowledged that the permanent pathway to a nuclear weapon that was the JCPOA made no sense for the United States of America; second, we have put on historic sanctions which are having an impact and I don't know if you all saw the leader of Hezbollah, Hassan Nasrallah, now it has probably been 6-, 8-, 10-days ago rattling his tin cup around the world begging for money. That is a good thing. When Hezbollah can't pay its soldiers, when its people in the field are dying, that is a good thing for freedom and stability in the Middle East. We are working with allies and partners. We convened 60 plus nations in Warsaw to talk about the threat from Islamic Republic of Iran. We had Israel and Arabs working together to find ways to resolve this threat that the Islamic Republic of Iran presents to the Middle East and the world. We are incredibly focused on it, we are going to stay at it, and I am confident that the Iranian people will be the ultimate beneficiaries of the work we are doing. I am confident the Iranian people will get what they so richly deserve. This is a nation with a rich history, a highly educated population, and a country that deserves better than the kleptocracy that is the Khomeini regime. Ms. Meng. Thank you. President Trump, your president has been very clear in wanting to retreat, so, you know, I was just confused and I thank you for clarifying. Secretary Pompeo. Well, you are just wrong about that. Ms. Meng. The president was very clear in wanting to retreat. Secretary Pompeo. I am happy to respond to that if you would like. I mean, this is untrue. Ms. Meng. We can pull video clips but my next question if I could finish---- Secretary Pompeo. I liked to say, if you give me just 30 seconds---- Ms. Meng. If I could finish my question because I am running out of time. Secretary Pompeo. Yes, ma'am. Ms. Meng. In talking about rebuilding Syria, how are we ensuring that rebuilding efforts aren't benefiting Assad or Iran? What kind of messaging are we delivering to entities who are wanting to participate? Secretary Pompeo. That is a good question. Let me answer your previous comments as well. So we have along with the Europeans made very clear that we will not provide reconstruction dollars to areas that are under the control of the Assad regime and that we are supporting Geir Pederson in his U.N. efforts to implement U.N. Resolution 2254. Ambassador Jeffrey is hard at work at that every day to get a political resolution inside of Syria as a precondition to U.S. dollars, frankly European dollars too, and we are hopeful the Arab countries will agree, it makes no sense when Assad is in control to begin to do rebuilding. We will still do humanitarian assistance in certain places where there is desperation, but it is our full intention to get the political resolution. And I want to pivot to talking about our strategy. It is not retreat. The previous administration invited the Russians into Syria. I mean, it is just a fact. This administration took down the caliphate along with great partners we developed to defeat coalition of some 80 countries that took down the last inch of real estate owned by ISIS. The threat from radical Islamic terrorism remains. It is not going away. It is in West Africa. It is in Asia. It is in lots of places. It remains in the Middle East. We are determined to do this. We will move force levels. Sometimes we will increase, sometimes we will decrease but to describe what this administration has done, the complete destruction of the caliphate, where there were--you remember the pictures, people in cages, heads cut off on beaches. We took that down. To describe that as retreat, it is just not an accurate description of---- Ms. Meng. I am just repeating what I have seen in the media and we can have a whole other discussion---- Secretary Pompeo. I think you ought to be---- Ms. Meng [continuing]. On Iran and Syria and the support of Russia under this administration as well. Secretary Pompeo. Yes, ma'am. Ms. Meng. Thank you. I yield back. The Chairwoman. Mr. Price. Mr. Price. Thank you. Mr. Secretary, let's return to the Northern Triangle. This is a critical issue I think that needs serious attention. When we see people fleeing their home countries, women, children, families fleeing violence and corruption, we naturally look to the humanitarian conditions, the economic conditions in their home countries, what is driving the migration. Now, in the previous administration, late in the previous administration, with the support of Congress and as you know, General Kelly, then at Southern Command played a critical role in this, the U.S. greatly increased assistance to Guatemala, El Salvador, and Honduras. You also know that consistently now, three budgets in a row, the Trump administration has proposed to cut this assistance by something like 30 percent. Now, the president has actually publicly threatened to cut all assistance to the Northern Triangle essentially as punishment for the ongoing outmigration that we need to figure out how to mitigate. Let me just quote the tweet. This is from the president, Honduras Guatemala and El Salvador are doing nothing for the United States but taking our money. Word is that a new caravan is forming in Honduras and they are doing nothing about it. We will be cutting off all aid to these three countries taking advantage of the U.S. for years. Now we have a news report saying that the funding that we have voted and as you know, the Congress has largely restored the funding that the president wanted to cut in the intervening years, well that money now is sitting there undistributed. This is quoting one of your State Department officials, we have paralysis moving this funding through the Northern Triangle because people don't know what the president wants, one State Department official said, that is a quote. Secretary Pompeo. Do you---- Mr. Price. I am quoting, no one wants---- Secretary Pompeo. Can I have the name---- Mr. Price. Wants to do something---- Secretary Pompeo. Of that person? Mr. Price. No one wants to do something that looks like they are not following his guidance. It is being slow walked. The paperwork impasse threatens to undermine efforts to address the root causes of migration from the region, the official added. Okay, what can you say about that? We have had in the past bipartisan agreement that these root causes need to be addressed. The president apparently doesn't like that way and now the aid that we have voted is being held up. I mean, is there anything inaccurate about these reports? What is U.S. policy? Guess that is the basic question that comes through all this. Secretary Pompeo. I am happy to take the basic question. I must say, I would strongly prefer that we all avoid using unnamed sources from the media to make argument, I just think that is not constructive. I will always talk about the things we are doing in the places---- Mr. Price. Well, since you make a point of it---- Secretary Pompeo. Yes. Mr. Price. You know, it is very common practice to have officials quoted in that way. Now, maybe your official was out of line, but is your official, as quoted here, is that incorrect? Secretary Pompeo. Let me talk to you--I am happy to about to talk about the policy. President Trump has made it very clear that we are going to make sure that U.S. taxpayer dollars are going to achieve the outcomes, it is not enough to talk about them, it is not enough to feel good about them, it is not enough to be able show how much money we spent. Indeed, none of those are metrics that deliver. You talked about all the money that is been spent over the past years, previous administration and the first couple years of this one, and you then said we still have an enormous problem. That is proof of its own that this has not been affective. And so our mission, the mission President Trump has given to me, Secretary Nielson's as we are trying to address these sets of issues, is developed a set of programs that reward effective outcomes, that reward good leadership to get us to a place where we actually achieve the outcomes. This is about reality, not--not feeling good that we spent money. It is about delivering on these programs, it has proven vexing, both that administration and this one, to stand up, effective governance. To your point you made a mention of caravans, we have people coming across the border today from these countries in numbers and in groups, it was onesies and twosies, mostly single males, that has now changed dramatically, it is now families coming across in significant numbers, in the dozens and dozens. I think this is evidence that the policies that we had before have not been effective and so we are trying to take the money that you have appropriated and the taxpayers have graciously provided, to actually achieve important outcomes for the United States. That is the president's policy. Mr. Price. Well, we would certainly welcome some indication of what that policy consists of. You know, you seem to be saying, let me check you on this, you seem to be saying that because this is a vexing problem because we have not solved it that our efforts to solve it have proved very, very challenging and very, very difficult, that therefore the rational response is to become punitive about these countries, to cut off aid entirely or to hold up the aid that has been approved and what your official says, seek clarification. That is what we are seeking this morning, clarification. What is going on? Secretary Pompeo. I hope I didn't use the word, punitive, I didn't intend---- Mr. Price. Well, I---- Secretary Pompeo. I may have misspoken. Mr. Price. You don't think the tweet is punitive? The quote? Secretary Pompeo. I think our policy is aimed at getting an effective outcome and that is what we are trying to achieve. We are making very clear to the leaders of those governments, not just their presidents, not just the most senior leaders, we are making clear throughout their immigration teams, their security teams, their economic teams that we have expectations for how their behavior must change in order to continue to maintain U.S. taxpayer support. That seems eminently reasonable. Mr. Price. Word is that a new caravan is forming in Honduras and they are doing nothing about it. We will be cutting off all aid to these three countries, taking advantage of U.S. for years. You would not define that as a punitive statement? Secretary Pompeo. I am not going to comment on--my evaluation, you asked me about U.S. policy and I have done my level best to articulate it for you, this morning. Mr. Price. Thank you, Madam Chairman. The Chairwoman. I do want to express my appreciation to Mr. Price for referencing that aid. In fact, I have been very concerned for a while having been part of Vice President Biden's Task Force, and I remember it very clearly. I cannot say we were successful, but I don't think we can give up, and I look forward to continuing the discussion, Mr. Price, and with you, Mr. Secretary, about what more can we do to deal with the root causes, because these root causes and the effect of these causes directly impact what is happening at our border. So I do hope Mr. Price and this committee can work with you and see if these programs can be more successful in addressing root causes more successful in those regions of origin. So I thank you, Mr. Price, for referencing it. Ms. Frankel. Ms. Frankel. Thank you, Chair. Mr. Secretary, you, and I, I think we are getting along very well right now because we did agree that when you educate girls and women and they are healthier, it is better for the world. Let me find something else we can agree on. It is wrong to torture, to rape women, who are merely protesting for their human rights. Would that be wrong? Secretary Pompeo. I want to make sure I don't get a double negative, that would be wrong. Ms. Frankel. Okay. Secretary Pompeo. Yes. Ms. Frankel. All right. There we go. We have agreed on something else. But seriously, I want to ask you about what is going on to some of the women's rights activists in Saudi Arabia. We know that there are some--many--who were protesting for the end of the ban on women driving and for abolishing the Male Guardianship System, they had been thrown into prison where they are being subject to torture, rape, electric shock, sleep deprivation, really no justice occurring there. And I would like to know what if any interaction the State Department has had to try to alleviate what this situation? Secretary Pompeo. Yes ma'am. We have had interactions at I think nearly every level about specific cases that we are aware of as well more generally the policies that we have every hope and expectation that the Kingdom of Saudi Arabia will engage in. When I say every level, I have had this conversation with the most senior leaders, including the king and the crown prince and my counterpart the foreign minister. I know my team has had similar ones. I know our team on the ground, I hope I will get an ambassador confirmed in Saudi Arabia before too long, his directive for me will be to continue to talk about these things in a way that we have done for--I think this predates me, but certainly for my entire---- Ms. Frankel. Are you putting any pressure on them to do something? I mean---- Secretary Pompeo. We have seen some progress, right, we have seen---- Ms. Frankel. We have? Secretary Pompeo. Yes, oh, sure. Oh, absolutely. I absolutely think---- Ms. Frankel. But their women---- Secretary Pompeo. There has been some progress. Ms. Frankel. Are still being tortured. All right, well listen, I just want to say this. I think it is very important that you put as much pressure as possible to stop that--the torture that is going on to these women. All right, I am going to find something else we can agree on. I know this. Secretary Pompeo. We are three for three. Ms. Frankel. We are three for three, now we are going to go four for four, and that is that we can't--and I don't mean-- listen, I am going to say this as an expression, we can't wall off the world. I am not talking about south of the border, okay. One of the reasons, not just humanitarian reasons that we go into let's say places like Africa to stop the spread of disease, whether it is HIV, Ebola, tuberculosis, all kinds of horrible things, because we know these diseases spread. Correct? Secretary Pompeo. Yes, ma'am. Global---- Mr. Franke. Sure. Secretary Pompeo. Pandemic, is always a real risk. Ms. Frankel. All right so this is why I want to go back to the discussion that some of us had about the Global Gag Rule, what I called this ultra-obsession that your administration has with abortion. It is one thing we don't use federal funds for abortion, I may disagree with that but the fact of the matter is your new interpretation of what was called a gag rule now is harming organizations that are doing just general healthcare, whether it is contraceptive care or HIV or just maternal care. And I am going to give you an example, there is an organization called AMODEFA, I think I said it right, which is the only private health provider in Mozambique, and they have lost funding due to the expansion of the Global Gag Rule, estimated that it affects 500,000 people who are receiving care for HIV, tuberculosis and malaria, because they are closing their doors. So here's my question to you is, what kind of analysis have you done or you are doing to see or to understand the effect of cutting off these funds? Secretary Pompeo. So I appreciate the question, we do disagree on abortion, and I will take that as a fact in how I respond to this. I cannot see how--first of all you call it a gag rule, no one's stopped from speaking anywhere. No, the gag implies---- Ms. Frankel. Well, let me just---- Secretary Pompeo. There is no place that can't speak. Ms. Frankel. I don't want to cut you off but you know---- Secretary Pompeo. Yes. Ms. Frankel. You have taken it so far that an organization that doesn't even do abortions if are asked a question where they can get an abortion, they are not allowed to be told. They are not allowed to even have a pamphlet lying around that gives women alternatives. So yes, it is a gag. Secretary Pompeo. Oh, it is? Ms. Frankel. Okay, well, maybe you want to look into it. Secretary Pompeo. I am happy to look into it. But there is no one being denied their right to speak. They can say what they want---- Ms. Frankel. Okay, well, how about getting the healthcare? Secretary Pompeo. What they can't do is take U.S. taxpayer funds and perform abortions or abortion related services. Ms. Frankel. Okay. Listen---- Secretary Pompeo. These are the activities, and we have continued to provide--there are not a single dollar reduction with respect to women's healthcare that is associated with the president's Mexico City Policy and all the ways that we are implementing that, not one single dollar reduction, it is perverse to think, when I think about places like China where most of the abortions that take place are women, it is perverse to me to say---- Ms. Frankel. Well, listen---- Secretary Pompeo. That denying abortion somehow---- Ms. Frankel. Let me just reclaim my time, because---- Secretary Pompeo. Somehow harms life, I---- Ms. Frankel. Let me just reclaim my time---- Secretary Pompeo: Yes. Ms. Frankel. To say this. Some of things we agree. I mean, I don't believe in forced abortions, Okay? But I don't believe in forcing women to have children if they don't want to have children. But here's the thing, I am urging you, I am begging you to please do an analysis of how this gag rule is affecting healthcare around the world because you and I both agree that when women succeed, the world succeeds. And with that I yield back. The Chairwoman. And with that, I turn to Ms. Torres. Ms. Torres. Thank you. We are back to Central America. I am concerned about the reliability of some of our security partners in the region, specifically in the Northern Triangle and I want to make sure that we aren't sending good money, you know, after bad. I am not confident that Honduras government is a reliable partner in the fight against narco-trafficking. They recover less than one percent of what is trafficked through the country, that is not even the cost of doing business for a narco-trafficker so on that note, are you aware that on November 26, 2018, the U.S. Attorney's Office for the Southern District of New York indicted Juan Antonio Hernandez Alvarado, President Hernandez's brother, on drug trafficking charges? Secretary Pompeo. Yes. Ms. Torres. So---- Secretary Pompeo. I didn't know the date, but I knew of the indictment, yes, ma'am. Ms. Torres. So according to the indictment, Mr. Hernandez had access to cocaine labs in Honduras and Columbia. This cocaine was tagged or marked, stamped T.H. for his initials, Tony Hernandez. Are you confident that President Hernandez was unaware that his brother is an alleged narco-trafficker? Secretary Pompeo. May I answer that for you in a different forum, please? Ms. Torres. That's okay. Secretary Pompeo. But here's what I will try to answer the question that you are getting to with respect to the policy---- Ms. Torres. I am happy---- Secretary Pompeo. But we do have real concerns. Ms. Torres. Do a---- Secretary Pompeo. Yes. Ms. Torres. A classified briefing on this. Secretary Pompeo. Just, there is ongoing--anyway, I would just prefer to do that, if that is acceptable? Ms. Torres. I can respect that. I am very concerned that we continue to work with people and invite them to ground-breaking ceremonies for our U.S. Embassy buildings, when we should not be doing business with these people and we should be holding them accountable for the crisis that is happening on our southern border. We have to be serious about holding these three governments accountable for what they are doing, forcing young children and women out of their countries. Look, I was one of those kids, my parents didn't see a future for me in Guatemala. They sent me to the U.S. to live with my father's oldest brother. No parent should have to make that decision. No child's future should be robbed from being able to have a successful life where they were born. And I think we can agree on that. And I hope that we will continue to pay attention to the region and hold people accountable, including the State Department. The State Department is severely underfunded. I don't blame them for some of those missteps that they have taken, but at the same time, we have to put on a serious face in front of these people. The attacks against CICIG, while we may disagree on press releases that might have been sent, and it wasn't from them, it was the Attorney General's Office. You and I know that CICIG is an investigative body. Their charge is to investigate corruption and hopefully someday that these governments will be able to do their own investigations. That is not happening, not with Morales, it is not happening with Moxie, with President Hernandez in Honduras. I am hopeful that in El Salvador, with the new president, we will have an opportunity to do better, but we can't do better with the new administration when we are showing a terrible example of continuing to support bad actors in these two other countries. Secretary Pompeo. I am sorry. You didn't ask a question. Ms. Torres. I didn't. But I would like you to respond and commit. Last year we passed an amendment in the NDAA, which required the State Department to provide Congress with a report, a report that includes a list of corrupted elected officials. They were supposed to do this 180 days after the NDAA was enacted. To my count, it is 226 days now, long overdue. Can we expect that sometime in the near future? Secretary Pompeo. Yes. I will look into that. I was unaware that we had a due out and it was overdue. And I will absolutely look into that and get you a response on when we believe we can complete that task. Ms. Torres. It is. Secretary Pompeo. That legally required task. Ms. Torres. Thank you. And I yield back. The Chairwoman. Thank you. Before I turn to Mr. Rogers, I want to thank you Ms. Torres for your comments. And I do want to say, Mr. Secretary, I think there is about $1.2 billion left in that account from it was called the U.S. Strategy for Engagement in Central America. We had appropriated $4 billion and there is about $1.2 billion left in the account. I would hope that we can continue this discussion. It would be good to know, from your perspective, what we have accomplished, what remains to be accomplished, a great deal, and what we can do about it. I am not sure it is just another $1 billion, that is a lot of money, but I would like to see, from you a review of all of our actions that have frankly addressed the serious challenge in the region. Secretary Pompeo. We will provide that to you and your Committee and to the Ranking Member. The Chairwoman. Thank you. Mr. Rogers. Mr. Rogers. Thank you, Madam Chair. Mr. Secretary, Syria. I understand the top U.S. objective there is the enduring defeat of ISIS. I assume that means not only the destruction of the caliphate which has occurred but also preventing a return of the conditions that allowed ISIS to arise in the first place. During testimony before Congress earlier this year, the U.S. Commander of CENTCOM said, and I quote, the coalition's hard won battlefield gains must be secured by continued interagency efforts on mobilizing the international community to prevent a return of the conditions that allowed ISIS to arise. To accomplish that goal, what sort of sustained efforts, political, diplomatic, military would be required of us and our partners in Eastern Syria? Secretary Pompeo. So with your permission let me extend to Eastern Syria and Western Iraq, the place that the caliphate existed as a contiguous institution. It will take efforts in each of those two places that have mostly a political and diplomatic component to them so there will be an element of diplomacy, pure political diplomacy, humanitarian assistance, reconstruction aid; we will need to continue the defeat ISIS coalition which we cannot only bring people but resources, money to this challenge, the reconstruction in these places is going to be an enormously costly undertaking. Second, there is the political piece which is the work that we need to do. I will meet with the Speaker of the House equivalent from Iraq who is travelling here to the United States this week. I will meet him this week to work with the political leadership in Iraq, to assist them with building our their own, the Iraqi Security Forces so that they can maintain control and keep their own countries secure so that ISIS can't arise. And it is not just ISIS, right? In Idlib and in Syria we have got all other forms of radical, we have got Al-Nusra Front, the list is long, so this threat of terrorism in the region remains. It is going to take a political resolution in Syria to create the conditions where Syria can both begin to rebuild and begin to build out its security forces as well; it is an enormous undertaking. Mr. Rogers. But you don't request any funds for Syria in your budget. Secretary Pompeo. We don't. We are not there yet. We can't operate in two-thirds in Syria today and we won't operate while Assad continues to be there and wreak the devastation that he has until we have got a pathway where we have a political resolution. So we believe we have the resources to continue to do the work in the Eastern third, the northeast part of Syria, the work frankly with the Kurds and the Turks so that we get an outcome there that is stable and lasting as well that underwrites the capacity to take U.N. Security Council 2254 and implement it. That is the mission statement and we believe we have the resources to do that. And by the way, there are also resources that aren't inside the State Department budget, right. Your quote was from someone at CENTCOM if I remember correctly. Our DOD resources will be a central component of that as well. Mr. Rogers. In the short term, how are we going to help our friends, the Syrian democratic forces? How do we help them cope with the large number of captured foreign fighters? Secretary Pompeo. I am glad you asked this question. This challenge of foreign terrorist fighters that reside today mostly in Eastern Syria although some are being transported to other places is a real threat. I had a pretty senior military leader who reminded me that he did not want his children and grandchildren fighting these same terrorists, the same human beings because we detained them. He risked his life to get them and that we were risking putting them back out on the street. The State Department has led an effort to repatriate these places to countries where they have justice systems and the capacity to hold them for an extended period of time but I am mindful some of the terrorists that were captured early on in this fight after 2011 had 20-year prison sentences, they will be getting out pretty soon. This risk of foreign terrorist fighters and their reentry when they have not changed their ways and their desire to destroy America, destroy the West and commit acts of Jihad is a very real challenge. Mr. Rogers. Are they are of many different nationalities? Secretary Pompeo. Yes, we have repatriated to countries in Northern Africa. We have repatriated to Arab countries. We have asked every country to take back those that are own and then we have many that we won't be able to return for a host of reasons, and we have got to find a solution which we have not yet done. The State Department and Department of Defense are working closely with the Iraqis and others to figure out the best way to ensure they don't return to the battlefield. It is a real challenge. Mr. Rogers. Mr. Secretary, you have been very generous with your time with us today. We thank you very much. Secretary Pompeo. Thank you, Mr. Ranking Member. I appreciate that. The Chairwoman. Mr. Secretary, I, too, want to thank you again for spending this time with us. I would like to ask you if you think the State Department has gotten its swagger back, do you have adequate resources to fund your important work both here and overseas? And as we contemplate your budget for 2020, if there are specific requests, we would be happy to assist you in your very important work. So has the State Department gotten the swagger back? Secretary Pompeo. I hope so, but I will leave that to others to judge. I will leave those here in America and those around the world to make that decision. I hope they have. It has been an incredible privilege to lead amazing diplomats, civil servants, foreign service officers, and local employed staff around the world who are doing remarkable work while I have been the Secretary of State. I have been so fortunate to be their leader. I hope I have helped them perform their function better, and that is what I really meant, if we get swagger back. The Chairwoman. Well, I appreciate that and I must say I am honored to be Chair of this Subcommittee, it's a choice and all of us who serve on this Committee made this important choice so we want to be sure that we are responding to your requests, to the urgent needs. I know we can't solve all the problems of the world but we certainly would like to work with you to address the many, many challenges we have. So in closing---- Secretary Pompeo. Thank you, ma'am. The Chairwoman. Thank you very much. And this concludes today's hearing. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. And I thank you very much---- Secretary Pompeo. Thank you, ma'am. The Chairwoman. For being with us. Secretary Pompeo. Thanks for conducting a very professional hearing. The Chairwoman. Thank you. Secretary Pompeo. I appreciate it. Thank you. The Chairwoman. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. [Questions and answers submitted for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] Wednesday, July 10, 2019. UNITED STATES EFFORTS TO COUNTER RUSSIAN DISINFORMATION AND MALIGN INFLUENCE WITNESSES JOHN F. LANSING, CEO, UNITED STATES AGENCY FOR GLOBAL MEDIA LEA GABRIELLE, SPECIAL ENVOY AND COORDINATOR OF THE GLOBAL ENGAGEMENT CENTER, U.S. DEPARTMENT OF STATE JIM KULIKOWSKI, COORDINATOR FOR U.S. ASSISTANCE TO EUROPE, EURASIA, AND CENTRAL ASIA, U.S. DEPARTMENT OF STATE ALINA POLYAKOVA, DIRECTOR FOR GLOBAL DEMOCRACY AND EMERGING TECHNOLOGY AND FELLOW AT THE CENTER ON UNITED STATES AND EUROPE FOREIGN POLICY PROGRAM, BROOKINGS INSTITUTION NINA JANKOWICZ, GLOBAL FELLOW, THE KENNAN INSTITUTE AT THE WILSON CENTER Opening Statement of Chairwoman Lowey The Chairwoman. Good morning. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. I am pleased to welcome John Lansing, the CEO of the United States Agency for Global Media; Lea Gabrielle, special envoy and coordinator of the State Department's Global Engagement Center; and Jim Kulikowski, who used to sit right over here-- welcome--assistance coordinator for Europe and Eurasia at the Department of State, for today's first panel. For our second panel we will be joined by Alina Polyakova, director of the Project on Global Democracy and Emerging Technology at the Brookings Institution, and Nina Jankowicz, global fellow at the Kennan Institute. Since World War II the mission of the United States international broadcasting has been to provide accurate news to those abroad who lack access to a free press and accurate information. But in today's interconnected world information spreads more rapidly than ever before. While the United States is committed to advancing democratic principles, including freedom of speech and the press, Russia and others who do not share our values continue to utilize communication tools, from traditional print to social media to targeted ads, to do harm. Russian interference in the 2016 election was perhaps the most resounding wakeup call to this threat. Three years later, the United States still lags in responding to malign foreign influence in the information space. Technological advancements, such as deepfakes and synthetic videos, have made these risks even greater. Our goal today is to better understand these threats and how our investments in the United States Agency for Global Media, or USAGM, are informing, engaging, connecting people around the world, and how those audiences receive, perceive, and share content. It is also helpful to understand whether our efforts through the Global Engagement Center, or GEC, to counter propaganda and disinformation from international terrorist organizations and foreign countries are effective. I should read that statement again because that is really our concern. We appropriate many millions of dollars, and it is important for us to understand whether our procedures are effective. In fiscal year 2019 Congress appropriated $808 million to the United States Agency for Global Media and more than $55 million to the Global Engagement Center. This included significant resources for a 24-hour Russian language television and digital news network for Russia, countries in Central and Eastern Europe, and around the world. In the House-passed fiscal year 2020 appropriations we provided funding to support data-driven programming and efforts to counter propaganda and extremist rhetoric. The United States has some of the best technology and marketing minds in the world. However, Russian disinformation campaigns only seem to be growing stronger. So it is clear to all of us that we have to adapt, innovate to effectively deliver programming and inform audiences. This is critical as disinformation has the potential to weaken democracies and to fan the rise of nationalists and anti- European Union sentiments in the region. We just can't continue to operate in a vacuum. The United States must utilize all our tools of public diplomacy to get our message out and win hearts and minds. To achieve this goal we need a broader strategic dialogue backed by research that considers audience reach, media consumption, behaviors, evolving information technology practices, and perception of messaging from various sources. To make significant progress against malign influence we must consider how we can leverage the vast expertise and reach of the private sector in partnering to combat disinformation campaigns. So I truly welcome your thoughts today on all these topics. Before we hear your testimony I would like to invite my ranking member, Mr. Rogers, to make remarks. Opening Remarks of Mr. Rogers Mr. Rogers. Thank you, Madam Chair, and thank you for calling this very timely hearing. I want to join you and the others on the panel to this hearing, and we look forward to hearing the testimony in what I hope will be an interesting discussion on a very important topic. I want to take a moment to acknowledge Jim Kulikowski. Jim K, as we call him, served this committee knowledgeably and adeptly as deputy staff director and chief counsel for the full committee, among several other distinguished positions, during his 24 years of service with House Appropriations. Jim was a shrewd negotiator. We could always count on him to ensure House priorities came out on top in conference with our Senate brethren and sisters. So we are glad to see you back here in a new capacity and warmly welcome you back to the committee. During my time chairing this subcommittee I had the opportunity to lead several of our members on two trips to all corners of Europe so we could see firsthand what Russia was up to. At each stop we were confronted with the Kremlin's malign activity in one form or another. It is pervasive throughout Europe, Eurasia, Central Asia, as well as the Arctic. On the last trip we went to Lithuania. There we had extraordinary conversations with several of their legislators, and members of civil society as well, who describe to us in detail a sophisticated disinformation campaign that they called Russian active measures. We were reminded that efforts by Moscow to discredit the United States and weaken the West are not new. In fact, these nefarious techniques date back to the former Soviet Union and include tactics such as written or spoken disinformation, efforts to control media in foreign countries, use of front organizations and other proxies, blackmail, personal and economic, and political influence operations. Those examples of Soviet era tradecraft still resonate with us today. As our Baltic friends explained, what is new is the transition to digital and online communication and Russia's relentless efforts to sow division by exploiting these new social media platforms. During the Cold War the Reagan administration established the Active Measures Working Group, an interagency body consisting of the old U.S. Information Agency, CIA, FBI, State Department, and several elements of the Department of Defense. As one study has noted, quote, ``The purpose of this group was to respond comprehensively to disinformation, to define it, to create institutions to tackle it, and to draw attention to it at the highest level.'' I raise this perspective because the U.S. and our European friends are the targets of a ruthless adversary in the Russian Bear, one bent on suborning our democracies and undermining our historic trans-Atlantic alliance. That cannot be disputed. Perhaps a similar interagency effort and strategic communication strategy is required today if we are to successfully combat the Kremlin's influence and disinformation campaigns both here in the U.S. and abroad. While our subcommittee focuses on the funding of what must be a broader national strategy, I welcome a discussion on these and related matters. Lastly, Madam Chair, there are numerous adversaries that require our time and attention when it comes to countering disinformation and malign influence, but this subcommittee felt it was important to focus on Russia. The countries and regions facing attacks and other forms of aggression from the Kremlin remain one of our top priorities. We have included funding and policies in our annual appropriations bills on a bipartisan basis to demonstrate this, and we want to continue to provide you with the tools and resources that you need to ensure the U.S. is doing everything it can to shore up our allies and partners in combating Russian aggressions in all its forms. We look forward to hearing your thoughts today. I yield back. The Chairwoman. Thank you. After the panel presents their testimony I will call on members based on seniority of those members present when the hearing was called to order and I will alternate between majority and minority. We will be doing two panels today, and I want to ensure all members will have an opportunity to question all the witnesses. Therefore, each member is asked to keep their questions to within 4 minutes per round, which includes the response from our witnesses. Mr. Lansing, Ms. Gabrielle, Mr. Kulikowski, we will be happy to place your full testimonies into the record, if you would be kind enough to please summarize your written statement. I want to make sure we have enough time to get to everyone's questions. Opening Statement of Mr. Lansing Mr. Lansing, please proceed. Mr. Lansing. Thank you, Chairwoman Lowey, Ranking Member Rogers, members of the subcommittee. Thank you for the opportunity to testify today about the efforts of the U.S. Agency for Global Media to counter Russian disinformation. USAGM is an independent agency that provides accurate, objective, and professional news and information to parts of the world that do not have the benefit of a free and open press. We accelerate that mission through the work of our five networks: the Voice of America, Radio Free Europe/Radio Liberty, Radio Free Asia, the Middle East Broadcasting Networks, and the Office of Cuba Broadcasting. Our programs reach a measured, unduplicated audience of 345 million people on a weekly basis in more than 100 countries in 61 languages on a wide range of all broadcast and digital platforms. Your hearing today could not have come at a better time. We are living through an explosion of disinformation, lies, and distortion spread by those very same authoritarian regimes that our networks report on. The weaponization of information that we are seeing is real, and the Kremlin is one of the primary aggressors on this front. Based on my observations, Russia's goal is to destroy the very idea of an objective, verifiable set of facts. From their perspective, in a world where nothing is empirically truthful, any lie will do, and if everything is a lie, the biggest liar wins. It is not an understatement to say that the information battlefield may be the fight of the 21st century. While the Kremlin seeks to control information, our journalists are on the front lines, often risking everything to shine a light on the truth. Those efforts create security concerns for our journalists and increasingly dangerous operating environments for USAGM personnel. Nevertheless, we are meeting the challenge head on. We reach Russian-speaking audiences through direct programming and expanded distribution of our new 24/7 Russian language digital and TV network known as Current Time. Current Time is a play on words. The most famous media brand in Russia, in Russian, is known as ``time,'' and Current Time in the U.S. would be like saying ``60 Minutes''' or the ``Real 60 Minutes.'' So Current Time is like the real news to Russian speakers. I am proud to share with you the incredible arc of success we are seeing with our groundbreaking network, which launched in 2017 thanks to your support. Current Time's aim is to reach Russian speakers anywhere in the world, not just within the boundaries of Russia, and to engage younger, savvy audiences with a heavy emphasis on digital and social media content so that they can share it with people within the Russian Federation. The network covers social, economic, and political issues that the state media ignores, such as protests, and challenges Russian viewers to form their own opinions. Our impact in Russia is clear. Due to Russian restrictions on broadcasting inside the country, Current Time operates with a fresh, digital-first, cross-platform strategy to reach around the broadcasting platforms not available to us in Russia. Of Current Time's 520 million video views--that is right, 520 million video views--on social media last year, more than half came from within the Russian Federation. That wasn't true 2 years ago. But we are aiming higher than that with our global distribution strategy. When Russian speakers anywhere in the world tune in to Current Time, here is what they might see. [Video shown.] Mr. Lansing. These efforts are part of our strategic focus on global language-based programming rather than limiting ourselves to national boundaries. We launched a similar effort in Farsi earlier this year, and we are currently developing a similar 24/7 network in Mandarin that we hope to launch in the spring of 2020. In addition, VOA and RFE/RL jointly lead two highly impactful fact-checking websites known as Polygraph.Info in English and Factograph in Russian. The sites evaluate Kremlin- controlled disinformation on an hourly basis and immediately separate facts from fiction, adding context and debunking lies. Now looking to the future, USAGM will continue to prioritize Russian-language broadcasting and programming in other languages that will combat the Kremlin's sustained disinformation campaigns. Our work is providing an alternative to the false narratives and manipulated information disseminated by a regime that blocks a free press and is afraid of the truth. We provide journalism based on fact, balanced in perspective, and adhere to professional journalistic standards. This is something that Russians living in Russia rarely see if it weren't for the USAGM, journalism that reflects the values of our society, freedom, democracy, and hope. This is a core tenet for us, honest and truthful journalism as a catalyst for change, and it represents our best weapon on the information battlefield. All of us at USAGM are passionate and committed to ensuring that the global work we do delivers on our mission for the United States Government and the American people. We cannot do this without the support of Congress, and we are particularly thankful to this committee and the Appropriations Committee in general. Mrs. Lowey, we are grateful for your support of our work, and we value your oversight role and your advice here today. Thank you for the opportunity to testify, and I look forward to any questions you may have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you. Ms. Gabrielle. Opening Statement of Ms. Gabrielle Ms. Gabrielle. Chairwoman Lowey, Ranking Member Rogers, thank you for inviting me to testify before your subcommittee about the Global Engagement Center's work to coordinate efforts of the Federal Government to counter Russian disinformation. This is an important topic, and I very much appreciate that you have devoted this time to this issue. I am pleased to be joined here today with Coordinator Kulikowski and CEO Lansing. The various work of our organizations complement one another, and I think it is important that by testifying together we can paint a better picture of the work that is being done to expose and to counter Russian disinformation. The GEC's mission as defined by Congress is to direct, lead, synchronize, integrate, and coordinate efforts of the Federal Government to recognize, understand, expose, and counter foreign state and foreign non-state propaganda and disinformation efforts aimed at undermining or influencing the policies, security, or stability of the United States and United States allies and partner nations. Secretary Pompeo has called upon the GEC to employ a broad suite of tools to stop America's adversaries from weaponizing information and using propaganda to undermine free societies. It is clear that the Kremlin has been attempting to damage America's credibility among our allies and our partners, undermine trans-Atlantic unity, and to sow discord in target societies and weaken Western institutions and governments. Russia attacks those it perceives as adversaries by overwhelming target audiences with lies, questioning the very concept of objective truth and increasing polarization in societies. Russia has been aggressively deploying propaganda and disinformation since early in the Soviet era, but new information technologies allow it to cause harm on a much larger scale than ever before. Now, as then, free societies must unite and we must work diligently together to build public awareness, to promote resilience, and ultimately to defeat this threat to our values and to our institutions. The GEC is actively working with our allies and our partners in Europe to identify, recognize, and expose Russian disinformation and to promote accurate messages about the United States and our allies and our partners in the pursuit of freedom, prosperity, and security. We are also an active participant in the Russia Influence Group, which is co-chaired by the commander of U.S. European Command and the assistant secretary of the Bureau of European and Eurasia Affairs at the Department of State. This interagency body has been coordinating the lines of effort of the U.S. Government agencies to counter the various aspects of Russian malign influence in Europe for almost 4 years. The GEC has funded specific initiatives to counter Russian disinformation, and these include deploying technology to provide early warnings of foreign disinformation, analyzing which foreign audiences are most susceptible to targeted disinformation, developing partnerships with key local messengers to produce content to reach critical audiences, building the technical skills of civil society organizations, NGOs, and journalists to shed light on the spread of disinformation. Thank you for the opportunity to testify today. We appreciate this subcommittee's support for the GEC's mission, the attention to this subject, and I look forward to answering any questions that you have. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you. Mr. Kulikowski. Opening Statement of Mr. Kulikowski Mr. Kulikowski. Thank you. Thank you, Chairwoman Lowey, Ranking Member Rogers, thank you for your kind words, members of the subcommittee, and for this opportunity to discuss our role in countering Russian disinformation. The Office of the Coordinator of U.S. Assistance to Europe, Eurasia and Central Asia's historic efforts over 30 years to build free and democratic partners among states transitioning from communism are now focused on the central obstacle to this transition, Russian malign influence, including their use of disinformation. Of the $1.5 billion in fiscal year 2017 foreign assistance funds we coordinated in the region, we allocated over $103 million to support independent media programming, including $56 million in supplemental funding to help build resilience against Russian disinformation. Of the $1.3 billion in 2018 funds, we have allocated thus far $54 million to support this media sector work. We use these funds to build resilience against Russian disinformation for four kinds of programs. First, media literacy, programs that teach producers and audiences of all ages how to separate fact from fiction. For example, in Montenegro the embassy public affairs section funded a digital forensics center that uncovered evidence of Russian involvement in a local protest designed to stoke ethnic tensions to destabilize Montenegro, and their work discredited the effort. Second, access to independent media and reliable content for local audiences. This helps shed light on all the levers of Russian malign influence. In Moldova, for example, a USAID- supported virtual newsroom exposed 700-plus Facebook accounts spreading disinformation in advance of the February parliamentary elections. In Ukraine, NED is using our funding to support the two most popular online sources of objective information in Ukraine's Donbas region. Third, improving the professionalism, management, and financial sustainability of media outlets. For example, USAID's Balkan media assistance program helped to increase the online advertising revenue of one outlet nearly 500 percent and the audience traffic of another 113 percent. Likewise, State is now bringing Central Asian journalists to the United States to develop their professional skills. And fourth, we support strategic communications analysis to determine vulnerabilities and specific action needed. DRL, the Democracy, Human Rights, and Labor Bureau of the State Department, for instance, uses our funds to support research on the characteristics of audiences in the Baltics and the Balkans to help decisionmakers determine how best to raise awareness about disinformation, research that is also being used by the European Parliament. Madam Chair, our work to build resilience to Russian disinformation across the Europe, Eurasia, and Central Asia region builds on the work of U.S. Government partners across the interagency. Each partner brings its own comparative advantage to the table to complement our programs. Our collaboration will help us reach our common goal of countering this disinformation that is central to Russia's efforts to exert malign influence over each of the countries in which ACE works. Thank you very much. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you. I would like to begin the questioning, and we will go from Democrat to Republican in the order in which you have arrived. This is a question for the whole panel. I see little evidence that we are successful in using all our tools of public diplomacy to get our message out and win hearts and minds. And I really question, even though we saw this beautiful commercial, how do we evaluate if we are effective in connecting the much larger operations and assets of the U.S. Agency for Global Media, the Department of State, and other agencies of the United States Government to assist in our efforts to counter state-sponsored disinformation or terrorist narratives? We have in the United States the best technology and marketing minds in the world. Are we harnessing these talents in this important area? Are we using all the platforms of the United States Government to counter the messages of ISIS and other terrorists? How do we redirect the conversation and better contest the digital information space? When you look--and many of us have visited many countries, spoken with many leaders--we are not doing so well in these efforts, and we have seen the impact of disinformation in some elections. So if you can address the last--why don't we begin with Mr. Lansing--address the last question. Are we really effectively using the digital information space? Mr. Lansing. Thank you for the question, Chairwoman Lowey. It is the right question. In the 4 years that I have been leading USAGM we have had a dramatic shift towards digital platforms, where in the past our primary method for reaching audiences was through, frankly, shortwave radio and AM and FM radio and some television. Our most recent efforts, including the Current Time network that we just discussed, are all digital first. And the primary method for reaching audiences with that network is on social media platforms on mobile platforms, and on other digital platforms. As I mentioned in my prepared statement, we are reaching 540 million video views on social media platforms. That is, short-form videos that are traveling on social media platforms to the former Soviet space and within the Russian Federation. Our key is finding not just anybody, not just Russians generically, but young, savvy future leaders, people who will influence others, influencers. We are measuring our work not just by media reach. While reach is important--you can't influence anybody until you reach them--we are holding ourselves accountable to you and this committee based on our impact. And so we have measurements of impact that we measure every day against our media. And what are those measurements of impact? Do people find our information trustworthy? Do they share it? Do they like it? Do they do something with the information as a result of having it reach them? I can tell you that in Iran, for example--I know we are here to talk about Russia--but in Iran our trustworthiness is measured at 85 percent, and we are reaching fully a quarter of all Iranians within Iran with our content on Voice of America and Radio Free Europe. But generally across the globe, all of our content on average has a trustworthy factor of 75 percent. And so the one thing that we are exporting beyond a particular message or platform is the fact that it is believable. And in a world where you can't believe anything, to be able to reach people and have them believe it is truthful is really our number one export. The Chairwoman. I am going to turn to Ms. Gabrielle, but I would be interested, do you poll on a regular basis? Mr. Lansing. Yes, ma'am, we do. We use Gallup and other third parties just as U.S. media does, and we poll around the world. The Chairwoman. And the elections throughout Europe reflect all this outstanding media. Is that correct? Mr. Lansing. As far as I know. The Chairwoman. Ms. Gabrielle. Ms. Gabrielle. Yes, ma'am. Well, first of all, I appreciate your thoughts behind all the different, unique capabilities that we have, not just in the United States but really across the world in terms of our allies. You know, our adversaries, like Russia, they have weak alliances that are based on convenience, whereas the United States has true friendships that are based on trust, and that is because of the principles that we promote. So leveraging those alliances and leveraging those relationships and leveraging that trust is key. The GEC was essentially formed to answer the call specifically that you are asking about in terms of bringing all the different capabilities and technologies to bear. So we have four key priorities of the GEC that is leading our U.S. Government efforts to counter propaganda and disinformation. There is so much good work being done in this field across the U.S. Government, but if there is not a body that is coordinating those efforts, then we are going to be duplicating and we are not going to be supporting each other's efforts in the best way possible. Some of those efforts are in a classified space. Some of them are in an open space. So the GEC is building essentially a mission center that can coordinate all of these efforts. And within our mission center we are building the expertise. We are bringing in data scientists. We have people who used to work in advertising. We have experts in languages and in regional expertise. We have people who are influence experts, who are information operations experts, so that we can essentially be not just the mission center, but the center of expertise across the U.S. Government's efforts in countering propaganda and disinformation. Our second line of effort is working with our international partners. Our international partners, as I said before, these are true alliances based on trust, and they share information with us and we can share best practices and make sure that we are all working together to defeat the adversaries who want to use our basic vulnerability of our desire to communicate against us. They want to use our basic freedoms, that the principles that make us great, they want to use those as weaknesses. So we work with our allies to prevent that. Our third line of effort right now is leveraging all of the wonderful work that is being done in the private sector, the civil society and tech companies, the tech industry, as well as the media, bringing all of those efforts to bear, because there is so much work being done to counter propaganda and disinformation. It would be a huge mistake not to bring that together. And finally, we have to continue to assess and adjust as we go along. So this is something we are working on. The GEC received its mandate to counter state-sponsored disinformation a couple of years ago. We are building this effort, and I think that this is something that will ultimately bring us together so that we can make sure we are not duplicating efforts and we can make sure that we are bringing these efforts to bear in the best way possible. The Chairwoman. Thank you. Mr. Kulikowski. Mr. Kulikowski. Thank you, Madam Chair. So our efforts, as I said, are based on building resilience. So we don't put out messages. We teach people within each country how to respond, how to react to the messages they receive. So, for instance, in Ukraine the Learn to Discern program brings in people of all ages to teach them how to discern reality from falsity and has been used successfully in the elections leading up to the Presidential election. And that teaching is not only teaching them how to discern reality, but teaching them how to be responsible content creators so that they can become the messengers of truth, if you will, and put it out on the net. And the evidence is that those efforts are being successful and are being adopted by Ukraine to be spread throughout the entire educational system. So by creating users who know both how to discern reality and how to project true reality we build the resilience that no matter how large the effort is that Russia is putting out there, that the audience is not receptive to it and is able to respond on their own. Thank you. The Chairwoman. Thank you. I know my colleagues will pursue these issues, so I will turn this over to Mr. Rogers, although it is tempting just to keep going. Mr. Rogers. Mr. Rogers. Mr. Kulikowski, there is a multiplicity of U.S. Government actors involved in countering Russian disinformation. It is unclear to me at present how well coordinated these efforts are. A recent study by the RAND Corporation, for example, said that a wide list of agency responsibilities suggests the absence of a clear overall lead agency to coordinate U.S. Government activities to respond to the Russians. The State Department has their Global Engagement Center. State has, of course, the Bureau for European and Eurasian Affairs, U.S. Government Interagency Working Group. The Russian Influence Group, RIG, includes a lot of different agencies from DOD, State, DHS, and so on. Help me ring a bell here. Mr. Kulikowski. Yes, sir. Happy to, Mr. Rogers. So coordination overall with respect to Russian malign influence is my job, is the job of my office, my bureau. We coordinate through the agencies that you mentioned, and, in fact, each of those does something slightly different and has different authorities and ways to work. So we work with USAID. We provide--we coordinate on getting funding to them. And USAID works primarily on a development model, which is a program to develop capabilities and capacities over 5 years. The public diplomacy section in State works on a much shorter timeframe, and each embassy has its public diplomacy section that can take short-term projects and respond to immediate needs with agility to provide responses to issues as they come up. Democracy, Human Rights, and Labor, another Bureau in the State Department, has the ability to reach into countries that and work with those right on the border with Russia that we do not have the ability to reach into. The GEC has the ability to do messaging and other things that we don't have the authority to do. So there is a reason why these different agencies are involved in the effort. They each do different things. And it is really our job--my job--to help coordinate those efforts and make sure they fit into a coherent pattern, which we do on an annual basis planning out the program of operation with the money that we have for each country. Mr. Rogers. How can we know that you are succeeding? Mr. Kulikowski. Thank you. Obviously, we do evaluations. The evaluations are being put into place. We have short-term indications of the effectiveness of each of those programs. We measure them to show that they are accomplishing their task. I guess maybe you have to look at some of the bigger issues. You have to look at the results in North Macedonia, for instance, where a massive effort was put into place by Russia to make sure that the agreement was not accepted by either country. And through the combined efforts of all these agencies that we have talked about, we successfully battled that back and the people of North Macedonia and Greece gave us a huge victory, which is really an example that leads the rest of the West Balkans forward and gives them hope. So that is maybe not quite the answer you were looking for, but in terms of results, the Ukraine elections is another one where the efforts of Russia to disrupt the Presidential elections did not work. So at the 30,000-foot level at least there are many instances that indicate that these combined efforts are, in fact, succeeding against the huge effort Russia puts in to disrupt. That is not to say the war is won. That is to say we are winning battles as we go. Thank you. Mr. Rogers. My time is expired. The Chairwoman. Thank you. Actually, if I may take the liberty of following up with my good friend Mr. Rogers on the coordination. Can you just address the Global Engagement Center, DOD's Joint WebOps Center? Is this new DOD center performing duplicative functions? Are they doing a better job? Are they coordinating with you? If you can just describe this, I would be most appreciative. Mr. Kulikowski. I will do my best, Madam Chair. There are mechanisms in place that coordinate with DOD and with DOD centers. There are two mechanisms at the State Department, as Ms. Gabrielle explained. There is the Russia Influence Group, which is jointly chaired by DOD and State and coordinates with all the actors throughout the spectrum of malign influence activities. There is also with European Command, EUCOM, there is also a joint effort with State. State has a deputy commander at EUCOM. We were just there 2 months ago for a conference among all of the State Department heads of mission and all of EUCOM staff to coordinate our efforts, and this is an ongoing effort. So there are mechanisms. Some of these, some of the units that you referred to are fairly new. We are learning how to work with them. But the effort is underway and 5 months into the job I am trying to get there as quickly as I can. But the mechanisms and the structures are there to do it. The Chairwoman. Well, I am going to turn to Ms. Lee, but you look like you are so anxious to address this. Am I correct? Ms. Gabrielle. Thank you very much. I would appreciate the opportunity to address it. A couple of things. You mentioned the Joint MISO WebOps Center. I led a delegation from the State Department to visit because we will be playing a major role in coordinating the efforts of the WebOps Center. The Chairwoman. Where? Where is the WebOps Center? Ms. Gabrielle. It is in Tampa. It is co-located with SOCOM currently. So I led this delegation so that we could bring regional bureaus and membership from the regional bureaus to go and see what this is all about. Ultimately they are building a very strong messaging capability. So the GEC's role, as I have mentioned before, is to lead the U.S. Government's effort and to coordinate our effort in countering propaganda and disinformation, not all malign efforts, not all malign influence, but those specific. So as we build this mission center we are building the expertise so that the interagency can know that we are the place to come when you need expertise on countering propaganda and disinformation and also so we can lead those efforts. But we are new. In the past 2 years we have this state- sponsored disinformation mission. The Russia Influence Group and others were 2 years ahead of us in their build. So a lot of places in the U.S. Government coordination had already started and been led. So our objective is to get involved in that coordination, show that we have the expertise, and then take the load off of the different organizations who are focused on their specific efforts so that we can do that coordination as we go. So Russia Influence Group is a good example. How the DOD-- how the GEC will be doing coordination and assisting with the DOD Joint WebOps Center. We are not focused on messaging at the GEC. We are focused on the strategic efforts to counter propaganda and disinformation. Words are not influence. Words are, you know, just words. We are working on influence in coordinating the efforts of the U.S. Government to counter disinformation and propaganda using influence. Thank you. The Chairwoman. I am pleased to turn to Ms. Lee and save other questions for later. Ms. Lee. Thank you very much. I want to thank our chairwoman and ranking member for holding this very important hearing today. I am very familiar, I think most of us, with state- sponsored disinformation in our own campaigns here in America. It is well documented that Russia, for example, tried to influence and turn African American groups against each other through their interference in our elections. Russians' interference, of course, was very clear in terms of which candidate they supported for the Presidency. So we are very clear on what is taking place. I have been a longstanding member of this subcommittee, and I have long had concerns over the effectiveness of some of the programs run by the U.S. Agency for Global Media, including the Office of Cuba Broadcasting and Radio and TV Marti, which serves, quite frankly, no useful purpose. It is a waste of taxpayer dollars and it actually should be defunded. I am also concerned about recent reports that a project called Iran Disinformation Project, which was funded by Global Engagement Center, was attacking U.S. persons, human rights advocates, and journalists and academics on Twitter, including formally imprisoned Washington Post journalist Jason Rezaian. Special Envoy Gabrielle, as you know, the Global Engagement Center's approach is to work through credible partners to counter state propaganda, which you have laid out. Yet the selection of Iran Disinfo and their attacking online of U.S. persons raises serious concerns about GEC's vetting and oversight processes. I am also gravely concerned that Iran Disinfo also tweeted out patently partisan opposition to the Iran nuclear deal, which has nothing to do with countering state-sponsored propaganda. So what steps have you taken to ensure stronger oversight and accountability over grantees, and what safeguards are in place to ensure that GEC-funded programs do not violate U.S. values or norms that are nonpartisan and not opposing any specific policy that this administration just happens to oppose, such as the Iran deal? Ms. Gabrielle. Thank you so much for bringing this up this important topic. There is actually a lot of misinformation out there--and I say ``mis''' because I don't think it is intentional--about what happened with the Iran Disinformation Project. Essentially the GEC does find third-party partners to work with because the idea is to create force multipliers, right, to be able to spread truthful narratives using third-party implementers. That was the intent of that project. The intent was for it to unveil Iranian disinformation. The GEC learned that someone had tweeted a few tweets on a Twitter handle associated with that implementer that were not in the conduct that was intended. They were outside the scope of the agreement that we had with this implementer. I immediately suspended this within hours of learning that there were several tweets that were outside the scope of our agreement. I immediately suspended it, and we conducted a thorough review. We have since terminated our agreement with that implementer. Never the intent of the Global Engagement Center to have anyone tweeting at U.S. citizens. And I just have to add, because you mentioned Jason Rezaian, I am a former journalist myself. I was reporting on his situation. I was saddened by it. I was concerned for him, and I am very happy that he made it home safely. Ms. Lee. What accountability measures, though, have you put in place---- Ms. Gabrielle. Thank you for asking. Ms. Lee [continuing]. To make sure that this does not happen again? And also the partisan nature of what you are doing, in terms of the messages, how do you ensure that, for instance, one of our partners does not tweet out or support a policy of the Trump administration, example, in opposition to the Iran deal? That is very undemocratic. Ms. Gabrielle. Again, this has to be a nonpartisan issue, and us coordinating efforts to counter propaganda and disinformation has to be nonpartisan because our adversaries want to create divisions among us to separate us. So I completely agree with you that this has to be nonpartisan going forward, and we are a nonpartisan organization. As far as the use of freedom of expression by our implementers, that is not something we can control, but what we can do is put mechanisms in place so that we are aware of what is happening. And if they go outside the scope, we can more quickly realize it, assess it, and terminate those agreements. Ms. Lee. You have got to do it in advance. You have got to put some accountability measures in before they actually sign the contract. Ms. Gabrielle. Completely agree. Ms. Lee. And then you have got to make sure that there is some oversight and transparency during the process or during the timeframe of their contract. Ms. Gabrielle. We absolutely agree with you. And, in fact, we are tightening up the scope of agreement in agreements like this to lay out specific requirements. We are also putting oversight mechanisms in place. My team has conducted a thorough review of our other similar mechanisms so that we can assess them and be better about recognizing earlier. Again, if someone tweets a few tweets, those things happen fast and the damage is done very quickly. I couldn't agree more with you that we need our implementers to stay within the scope of our agreements because this has to be a nonpartisan issue. This is a national security issue, and we have to work together as a country. Ms. Lee. Thank you, Madam Chair. The Chairwoman. Mr. Fortenberry. Mr. Fortenberry. Thank you, Madam Chair. And let me, first of all, express my appreciation for you holding this hearing. I think this is very important. I have worried for some time that our government media outreach initiatives were in serious need of replenishment and regeneration. And, frankly, I am inspired by your presentations. Obviously, you all embrace this with a great passion, and you are looking at the tools of the modern media economy to better leverage successful outcomes here. In that regard, let me ask you, Mr. Lansing, you have a measurement of 520 million views that you put out. Each week I get a report where my own tweets and my own Facebooks, how many people have looked at them. And by the time you start adding that up, you know, you are in the tens of thousands of people. I mean, 2,000 might look at this one. Sometimes one breaks and it is 20,000 or 30,000. And so that adds up and piles up quite a bit. So I get what you are trying to say with 520 million views. But going back to what you said, measurement of impact, is that really an accurate number? There are other ways in which you can determine impact, and I think we ought to unpack that. I have several other questions, so if I cut you off it is just going to try to get to a whole spectrum of things, so if you could give me some assessment of that question. Mr. Lansing. No, that is a great question, Congressman Fortenberry. We hold ourselves accountable, as I said earlier, to impact over reach. The reach is measurable because it is social media platforms and they report their analytics and so that makes it even easier for us to understand the reach versus broadcast media. But we don't really think reach is the primary measurement for us. It is really what do people do having received our content. Do they share it? Do they like it? Do they take some aggressive or nonaggressive or civic action as a result of it? We measure all that through qualitative research that we do in the field. The most important measurement, in my mind, honestly---- Mr. Fortenberry. What does that mean? Polling? Mr. Lansing. Polling. Yeah, just like in the United States. I came out of the private sector as well. It is Gallup and other polling companies that do interviews by phone and in person. Mr. Fortenberry. Okay. Good. And I think this is a softer place, a softer science. It is harder. Sometimes we in Congress, we look at how much money we are spending and how good our intention is, and we determine that that is a measurable outcome that it is effective, and that is not necessarily the case. So that is one of the areas that obviously we need to do work on. You are clearly skilled at that. Secondly, though, how does our effort compare to Russia's, for instance? Now, there is different intentionality, and I don't want to say our intentionality is the same at all. There is different intentionality. But in terms of the actual outreach efforts, by what measure can you compare us to what Russia is doing? Mr. Lansing. Well, I don't know exactly what they invest in RT and in Sputnik and in other Russian media, but I know that it is more than what the United States Government invests. Of course, all media in Russian is---- Mr. Fortenberry. Right. Ten times? A hundred times? Mr. Lansing. I think it is around a 10X factor, absolutely. Mr. Fortenberry. Back to the question that both Ranking Member Rogers and Mrs. Lowey also raised, our chair, how can you assure us that in, for instance, your use of partners to leverage outcome, that that isn't a force multiplier, that that may be a force multiplier or it may be indicators of fragmentation? Again, until you have come along, my impression is of this whole entire government effort, that it is very fragmented, and that, again, it was in serious need of replenishment and updating. So explain how your work--and perhaps, Jim and Mr. Lansing, your work all go together--or I should say Mr. K, sorry, as we used to call you when you worked around here--explain that a little bit clearer because it seems like there are a whole-of- government approach going on here or a fragmented approach going on here. Ms. Gabrielle. Coordination is certainly one of the biggest challenges across any number of institutions. So it is a very difficult job, as I am sure you are aware. But that is our primary focus, is doing that coordination piece. So we have looked at best practices at the Global Engagement Center in building a strategy for how we can conduct coordination across the government. And since our mission is global, we have to focus on every threat of disinformation and propaganda and globally how that is applied. So we are building an interagency and international coordination cell based on best practices that we have seen in doing coordination. Mr. Fortenberry. Where? At State Department? Ms. Gabrielle. So, again, yes, at the State Department. Now, let me clarify. There is some confusion because the GEC is at the State Department, but our mandate is the whole- of-government coordination, not just within the State Department. So one of the first things I had my team do when I came on board is build a slide for me to show us who are we supposed to be coordinating---- Mr. Fortenberry. Okay. So you have a map of this? I think we need to see the map of this. I think my time is up, but---- Ms. Gabrielle. I am happy to share with you our diagram. Mr. Fortenberry. To the degree you can, I get it. Ms. Gabrielle. I call it my spaghetti diagram, because essentially we are coordinating the entire world of countering propaganda and disinformation. But we are using best practices to do it. It takes some time. And as Mr. Kulikowski was saying, you know, it is not a matter of who is in the lead for what specific objective; it is a matter of us making sure we are working together and deciding who is leading, and for us it is coordinating---- Mr. Fortenberry. I get it. I have oversimplified it. You have laid down a mapping strategy. Madam Chair, I think that would be important for the committee to see. The Chairwoman. Thank you. Mr. Fortenberry. Thank you. The Chairwoman. And Ms. Meng. Ms. Meng. Thank you, Madam Chairwoman and Ranking Member, for holding today's important hearing. I wanted to ask Mr. Lansing, I know today's hearing is about American efforts to combat Russian disinformation campaigns, but I wanted to address and to hear about concerns over USAGM's management that have risen again in the past few days in the news. The credibility and transparency of USAGM is critical to ensure that we are able to provide a counterbalance to the corruption in many of the countries where your programming is being broadcast. Can you please address for us your plans and ensure us how you are fortifying these safeguards at USAGM that ensure that your reporters are providing accurate and unbiased news to viewers and also now you are conducting oversight in relation to financial management, for example? Mr. Lansing. Sure. Thank you for that question. So we have redoubled our efforts at program review with all of our networks and all of our content. We broadcast, as I said earlier, in 61 languages to over 100 countries 24/7. We have a process in which each of the five networks reviews its content on a rolling basis that has already been broadcast, reviews it for professionalism, for accuracy, for discipline, and for adherence to the highest standards of professional journalism. And all of those reports, all of those reviews roll up to me to review on a regular basis. We have redoubled our effort in that. We have added more resources and more people so that we can do that on a more consistent basis. The most important thing that we have, Congresswoman Meng, is our credibility. That is what we are actually exporting to the world, honesty and credibility and professional journalism. And we hold ourselves to the highest standards of professional journalism in our review process, and in our editorial development process. It is something that I have done my whole professional career. We have an excellent team of people leading our networks. Amanda Bennett leads the Voice of America, a twice Pulitzer prize-winning journalist. Ambassador Alberto Fernandez is leading MBN and has really in the last year and a half reshaped the entire Arabic strategy for our business. Radio Free Europe launched Current Time and has completely rebuilt our Russian media strategy. And I can go on and on, so---- Ms. Meng. Actually, so sorry to cut---- Mr. Lansing. Yeah. Ms. Meng. I wanted to know, you have increased your personnel resources; I assume. Do you know how many personnel there are? What is the number of the increase? And how often do they undergo this kind of review? Mr. Lansing. It is a rolling review. It happens constantly as we roll forward. Each network is of a different size. Voice of America has 43 language services. Radio Free Europe has 21 language services. MBN has one language; it is in Arabic. We have a Latin America Division within Voice of America. So each one is tailored to that particular network, so there are many more people at Voice of America doing program review, for example, than, say, at Middle East Broadcasting Network since there are just more languages to review. Ms. Meng. What about TV Marti, for example? Mr. Lansing. TV Marti, we are currently undergoing a complete, bottom-to-top review of all of its editorial processes. We put together a panel of five Spanish-speaking journalism professors to review the content of OCB over the last several months. They put a report together for me that indicated there were serious lapses in the professionalism of the journalism at OCB. And, as a result, I have taken actions to remove several people from OCB, and we are currently reviewing the entire management structure and the mission of OCB. And we are in the process right now of evaluating what steps we will be taking to strengthen and fortify the content and journalism coming out of OCB. Ms. Meng. Okay. Will you be able to report back, as you are making improvements, increasing resources on some of the these improvements that you might have made, to our committee? Mr. Lansing. I absolutely will. Ms. Meng. Thank you. I yield back. Mr. Lansing. Thank you for your question. The Chairwoman. Thank you. Mrs. Roby. Mrs. Roby. Thank you, Madam Chair. And thank you to all of the panelists for being here this morning for this very important hearing, and I thank the chairwoman and the ranking member for holding it. And, you know, I, too, along with my colleagues, as you have heard, share the concern about this coordination across government agencies. And I think, Mr. Kulikowski, we talked about--or you mentioned in response to one of the questions about reporting annually. And I would just like to start and say, I wonder if there is an opportunity maybe for you to revisit with this committee a little bit more often than just annually with some updated information as to how those coordination efforts-- because, again, I think that there is an overlying concern here about those coordination efforts. So, to the extent that the chairwoman would also agree, I think it would be beneficial for this committee to hear more, rather than just waiting for a full calendar year or fiscal year before we hear back from you. But my specific question is for you, Special Envoy Gabrielle. I understand that GEC has developed, as in your testimony, your own counter-Kremlin strategy. And I would like to know, specifically referring to, as you said in your testimony, analyze, build, and communicate this model. What does that mean? What accountability measures are in place? If you could drill down on that. I guess, in other words, how do you know that the strategy has been effective? And, again, this goes back to these overlying concerns about, you know, what are the metrics by which we are grading success with all of these efforts. Ms. Gabrielle. So, as I mentioned before, the GEC's counter-state-sponsored-disinformation mission is still relatively new. So we received our first dollars, our first funding for this about a year ago. So we are building into all of our programs and all our initiatives measurements and evaluation techniques. We actually have brought on a team that can establish at the beginning of each initiative what some of those points are that should be evaluated as we go along. I think that that is key, having almost somebody from the outside but that is within the organization hired specifically to be looking at that and helping us identify measurements of success. Because evaluating how well you have influenced someone or a target audience is not easy to do unless you have a specific marker on the board when you start out. I think a good example is our support, which we worked with Mr. Kulikowski's organization, on the--worked with the North Macedonian Government to help ensure a free and fair vote in the lead-up to the September 30th naming referendum. We actually provided people on the ground there to support, with insight reports, giving demographic and micro-targeting information, really using data scientists to support that effort. That is a good example where at the beginning you want to know, here is the marker. If people are getting out and voting and if that is the measurement of success, well, then that is the thing that is easily measurable. Identifying how well someone has been influenced is more difficult, but we are putting mechanisms in place. That is just one example. You asked about the ABC's. So what that really means--and thank you for reading this--is, you know, we first begin with analyzing. We have to analyze what the tactics are that are being used against us by our adversaries, really understanding them and understanding what the target populations are and whether or not our adversaries are being effective. Because if they are not, then we are not going to put our efforts there. But analyzing the target audiences and understanding how they are being targeted. The second is building, really building the capability and the capacity of foreign partners to be able to identify disinformation and to be able to respond quickly to it. Right now, we have a number of international initiatives, including working with foreign governments, and then on the ground, working with civil society actors and that. And the third is really communicate; the ``C'' of the ABC is communicate. You know, Russian disinformation takes advantage of vacuums of information. So, with our partners, we fill that information space with, as directed by Congress, fact-based narratives. Mrs. Roby. And just real quickly, using that model, have you been able to identify areas of the world that are most vulnerable to malign information attacks? Ms. Gabrielle. Yes, we certainly have. And I think that, you know, for the purposes of this committee, you know, we are talking about Russia and where Russia is effective. We know that Russia specifically targets the U.S. And there was a question earlier about, you know, how much effort does Russia put at this. Well, the United States, we have to look at the entire world, whereas Russia very much focuses its adversarial behavior on the U.S. So we are constantly using data scientists, data analysis to identify what are the most vulnerable audiences and where we should focus our efforts. And that is part of our coordination piece. As the interagency looks to us to be the experts in countering propaganda and disinformation, that data science is key in helping them understand where those efforts should go. Mrs. Roby. I appreciate it. And I have gone over my time, Madam Chair, but I do think that there are some good followup questions here, as this is being laid out for us, in terms of being able to measure the success, not only from State on reporting the impact of the coordination of these government agencies, but also, as more information becomes available, that this committee be made abreast of what is going on and the successes and the challenges that you are facing moving forward. I think that would be very helpful. So thank you, Madam Chair, for holding this hearing today. I appreciate it. The Chairwoman. Thank you. I am going to turn to Mr. Price, but, at another time and maybe a followup question, when you said Russia primarily targets the United States, it is hard for me to believe that they aren't very involved in elections all throughout Europe and in other places of the world. But I will turn to Mr. Price now, so you can save that for another time. Mr. Price. Thank you, Madam Chairman. Mr. Kulikowski, I want to welcome you back to the committee and, particularly, thank you for raising the issue of the disinformation efforts underway in the former Soviet states and in the former communist states of Central and Eastern Europe. You mentioned Montenegro and Moldova, both notorious cases, and I assume there are more where those came from. And, of course, Mr. Lansing, your outlets are broadcasting in most, if not all, of these places. And, also, Ms. Gabrielle, if you wanted to chime in on the question I am about to ask, you are welcome to do so as well. I am interested in what patterns you are seeing in terms of Russian efforts in these countries. I know that is a broad question. What kind of generalizations can you make? And I am particularly concerned about the kind of democratic backsliding we have seen in many of these countries. Many are fragile democracies to start with, and then others that we had thought were joining the Western community of nations have backslid in some pretty alarming ways. I wondered how that has changed Russia's approach and your approach to countering Russian influence. I suppose there are a number of things one could ask. Has this democratic backsliding made it easier for Russia to interfere, or has it altered the character of that interference? In terms of the local outlets that you champion, Mr. Kulikowski, that you try to empower, what kind of threats and dilemmas and problems has this posed for them, these developments in their own countries? And then how do we cover it? How do we deal with this? Let me just take Hungary as a case study. How do we describe it when President Trump welcomes Viktor Orban to the Oval Office? Do we cover the Republican and Democratic Senators when they warn him not to do this? Do we, in our broadcasts, indicate how controversial this is in our own country? And certainly how it relates to what is widely perceived as democratic backsliding in Hungary. I would love to see transcripts of our coverage of that Orban visit to the Oval Office. If they are available, I think that would be very useful. I think this would be a pretty interesting case study. But you see the kinds of issues this raises. And I wonder-- maybe we will start with you, Mr. Lansing--as to how we deal with it. Mr. Lansing. Thank you for the question, Congressman Price. We will absolutely provide you transcripts of our coverage of anything, but particularly of the Orban visit to the White House. Our role, through Voice of America, is to cover America for the world. And we do it in a professional, unbiased, journalistic manner. We don't carry a particular point of view, Republican or Democratic or the administration. Our point of view is to give all sides of any particular story and report that in parts of the world that don't have a free media. I will tell you--it was a multifaceted question. One point I wanted to make. You asked, how are the Russians influencing parts of the world where we are seeing backsliding in democratic institutions? Well, we are seeing that more and more, as you know, in even NATO countries like Romania, Bulgaria, Turkey, Hungary. And so, just this year, we expanded Radio Free Europe's coverage into Romania--Romanian--and Bulgaria, so that we are there now, present where we weren't before, because it had become more democratic. Now that it has backslid, we are in there now confronting Russian disinformation and lies with truthful and factual information. We are also, at this very moment, exploring an expansion into Hungary, as well, for the same reason. One of the things I thought the committee might find interesting--and I am sure you are already aware of--while we saw the malign interests in our 2016 election was done by, you know, warehouses full of Russian trolls and robots even, what we are seeing now it is stepping up into artificial intelligence. And so the Russians are using AI to create information, to create personalities, to create actual people that don't really exist as a means of communicating and disrupting societies--democratic societies or societies that are teetering on the edge of a democracy. I will reflect back on my testimony earlier, but the very fundamental strategy of the Kremlin when it creates an attempt to disrupt a democratic society is to just sow chaos. It is about making the truth seem so elusive that nothing can be believed. And that is what we are really up against. You know, they say a lie can go around the world while the truth is putting its shoes on. And so it is a very, very difficult thing to combat a persistent attempt to just make everything seem to be a lie. Because if everything is a lie, then the Russians can step in, and then whatever they want to do they do. And so that is the battlefield that we are on. And we are engaged on many, many levels, both in terms of our journalism and our content but also through our fact-checking websites that are, on an hourly basis, disputing Russian lies with facts and truthfulness. It is a battle out there. I mean, I can't say we are at the promised land or that we have reached the epiphany of making all of this going away, but we are engaged. I think the one thing I guess I would ask--and I know you get asked a lot since you are on the Appropriations subcommittee--is, you know, just help us fund the effort. It is becoming more and more expensive, because the Russians are sparing no expense in disrupting all of these democratic institutions. And I hope that answered your question. Mr. Price. Yes. Mr. Kulikowski. Thank you. Just to add to that, I agree very much with the pattern that was referred to. The pattern is to create chaos, to seize any opportunity to go in and confuse and divert and undermine processes that are underway. It is opportunistic, and it is opportunistic across the board. In terms of backsliding when some of the countries, are EU and NATO members in Eastern Europe, the importance is to make sure that the institutions and the media capabilities that we have built remain in place. And so, when the Secretary was in Hungary last February, he announced a program, a regional program, to invite investigative journalists from Eastern Europe to the U.S. to make sure that they had all the tools at their availability to continue to be able to watch out for the kind of corrupt influences that is one of the means Russia uses to insert its messages. So those efforts, those regional efforts are underway. A $700,000 grant program has hit the streets. The grant applications are in, and we are going through them as we speak to make sure that that capability remains. We are also able to work with NED, for instance, in the region, and NED has several grants funded to promote freedom of information and democratic ideals in the region. So we have ways of making sure, even as we pursue the strategy of engagement with the democratic leaders of those countries, to assure that the capabilities that are necessary to battle back remain in place and are renewed and strengthened. Mr. Price. Thank you. The Chairwoman. I can't resist again, before I turn to Ms. Frankel, but we won USA's soccer match, right? I can't believe that, how difficult it is, we can't win this battle. So I am really interested in pursuing the questions that Mr. Price asked and I think we are all asking. We know it is a battle, but we have to win. And there is certainly a lot of money being put on the table. And the reason we wanted to have this hearing, to ensure that we are spending the money in the most effective way and not just continuing business as usual. Because I have seen many of the buildings, talked to many of the people, and the expertise is there, certainly in the private sector. And I am hoping that we will clearly focus and win this battle. But Ms. Frankel is next. Thank you. Ms. Frankel. Thank you. I think you are being kind when you call it a battle. I would say we are in a war. And what I would be interested in, Madam Chair--and I thank you for this hearing--is to have a comparison between how much we are spending on military hardware versus how much we are spending to counter this cyber warfare. Because it seems to me that this is the war of the--are we in the 21st century? Yes. I want to ask you specifically, what is the line--the lines of Russian propaganda, what are they basically--what kind of information are they getting out, specifically? What are the tails that they are telling, their fake news? What do you see? And let me just--I am going to add something to the question. Do the Russians ever use any of our President's statements in their propaganda, such as the Russian interference in our elections is a hoax or that he believes Putin when it comes to Russian interference? Ms. Gabrielle. So, as far as the lies that Russia tells, you know, Russia is, of course, the most expansive and aggressive actor in this space--and I want to clarify what I did said earlier. When I say that Russian primarily targets the U.S., what I mean is us, our allies, our Western institutions, those bonds that we have, anything that basically undermines the type of society that they want to have. But as far as the lines of effort, you know, we have been saying they covertly plant false stories, they use---- Ms. Frankel. Just give me a couple of examples of fake stories. Because we have been talking in generalities. I would like to know what kind of information they are spreading. What are they saying, for example? Ms. Gabrielle. Well, it really depends on the country, and I---- Ms. Frankel. Well, just give me an example. Pick a country and give me an example. Ms. Gabrielle. Okay. Ms. Frankel. Anybody can help her. Mr. Lansing. I will help her. Ms. Frankel. Go ahead. Mr. Lansing. No, she doesn't need help. She is doing a great job. You know, the thing is, it is interesting, the Russians are really not pushing a particular narrative other than ``nothing is true,'' that you can't have any faith in any institution, that a democracy---- Ms. Frankel. Well, give it to me. I don't want to be---- Mr. Lansing. It just matters---- Ms. Frankel [continuing]. Rude. Just tell me how they do it. What do they say? What do they show? What do they---- Mr. Lansing. For example, when MH17 was shot down in eastern Ukraine, the Russian narrative on that was that the Americans loaded the plane with a bunch of dead bodies and shot it down themselves so they could blame the Russians. Ms. Frankel. Okay. Mr. Lansing. There is an example. Ms. Frankel. Okay. Have they ever used any of the words of our President in any of their disinformation? Mr. Lansing. I am sure they have. Of course. Ms. Frankel. Well, you are sure they have; of course. You would know. Can you tell us? Mr. Lansing. Yeah. I mean, they take the news as we receive it--or as we broadcast it, and they distort it and change it and---- Ms. Frankel. Well, how about the President's comments, over and over, that the Russian interference with our election is a hoax? How about his statements in--was it Helsinki?--where he stood up next to Putin and said, ``Well, why shouldn't I believe him?'' He said the Russians didn't interfere with the election. Have you ever--know of any times where that information was spread by the Russians in other countries? Ms. Gabrielle. So we are developing analytics and research capabilities where we can look into and we can assess things like that. I want to just answer your question that you asked before about some of the other---- Ms. Frankel. No, no. Answer that. Ms. Gabrielle. Okay. Ms. Frankel. Okay. Ms. Gabrielle. So I will tell you this. Ms. Frankel. Yes. Ms. Gabrielle. The Russians will use every division possible to fragment us as a country. They will use your words, they will use my words, they will use the President's words, they will use any words they can to divide us and to separate us. So, absolutely, any little string we give them of division, they will exploit that. That is their tactic. Ms. Frankel. Okay. Thank you. I guess you are answering my question, is, yes, they have used the President's words. All right. So--and thank you for that example. Are there any other examples any of you can give me? Ms. Gabrielle. The poisoning of the U.K. citizens in Salisbury, England; energy development and distribution; NATO exercises and deployments; the crisis in Venezuela; and countless other topics. Again, they will use your words, they will use my words, they will use any words they can to divide us. Ms. Frankel. Now, how do you pick your targets, which countries you are going to be working in? Mr. Kulikowski. Well, we pick our targets--we work with basically all countries in the region that we work in. We pick our targets in conjunction with the guidance that you provide us. So our targets are your targets, which prioritize Ukraine, Georgia, Moldova. But we work with the balance of the countries. The Western Balkans are extremely important to us. But we work with you on determining where the funds go and how we choose our targets. Ms. Frankel. Okay. Thank you. Madam Chair, my time has run out, but I do again want to just request that I really think it would be interesting to see the amount of money we spend on this counterintelligence work, because you have different--you are TV, internet, and so forth. I would like to see how much we spend and compare it to the money we spend on military hardware, and even on our troops. And, with that, I yield back. Thank you. The Chairwoman. I was just discussing with staff that I wish we had a couple more hours, because this panel is so invaluable. We are not finished yet. We have Mrs. Torres, and then we have another panel. So we will have to bring you back another time. But Mrs. Torres. Mrs. Torres. Thank you. I am going to try to be very brief with my questions, piggybacking on what was just asked. How is the information and the images of toddlers behind jail cells and having nothing but a sheet of aluminum to cover themselves, pooping themselves, nobody feeding them, how are those images being portrayed to the world about America? Mr. Lansing. In the same way that any American journalistic enterprise is reporting that story, our journalists report the story---- Mrs. Torres. Are they being truthful about---- Mr. Lansing. Yes. Mrs. Torres [continuing]. What is going on out there, or are they spinning that to---- Mr. Lansing. We don't---- Mrs. Torres [continuing]. Create an image---- Mr. Lansing. Congresswoman Torres, we don't spin anything. We report the---- Mrs. Torres. Not you. I am asking how the Russians---- Mr. Lansing. Oh, how the Russians are---- Mrs. Torres. Yes. Mr. Lansing. Well, I can't give you a specific example of how they are covering---- Mrs. Torres. You are the friendly ones. Mr. Lansing. We are the friendlies. Mrs. Torres. Yes. Mr. Lansing. I don't have a specific example. I can only assure you that they are looking for a way to report that story in a way that makes America look like it is---- Mrs. Torres. Will you report back to the committee on---- Mr. Lansing. Yeah, of course. Mrs. Torres [continuing]. How those images are being spun? I am very concerned about how---- Mr. Lansing. How the Russians are reporting on that story? Sure. Mrs. Torres [continuing]. How the Russians are reporting that and how that information is being utilized to diminish, you know, our standing as a global leader. So I want to bring the conversation back to our hemisphere and Latin America. So, beyond Cuba, Venezuela, and Nicaragua, where have you detected significant Russian influence in Latin America? And to what extent does corruption make countries more vulnerable to Russian influence? Mr. Lansing. You named the countries that are most influenced by the Russians, starting with Cuba and Venezuela, Colombia, El Salvador. I think wherever you see a Latin American country that is backsliding in democratic ideals, I think you will find the Russians there helping to make that happen. Mrs. Torres. Specifically to the Northern Triangle, how is corruption there being---- Mr. Lansing. The corruption, I think, is something that is largely the result of Russian influence. Mrs. Torres. All right. Any of you have anything else to add to that? Ms. Gabrielle. Well, we are certainly seeing Russian influence in Venezuela, of course, as well as other adversary actors in Venezuela trying to influence their local populations. And for the GEC, part of our mandate is recognizing and understanding where propaganda and disinformation are occurring globally. That is part of the reason that we have dedicated intelligence officers from the intelligence community who are detailed into our spaces of the GEC to assist with us and to point out when there are specific areas that we need to look at. Mrs. Torres. I think we have to pay attention to our hemisphere. Mr. Lansing. Yeah. Mrs. Torres. You know, about 3 years ago, I was in Chile. They had a partnership with Russia with satellites, satellite infrastructure that was being built there. So I think that we need to pay special attention to our hemisphere and how this administration is treating migrants that are coming here seeking asylum and how that information is being utilized against, you know, our moral values as American citizens. And, with that, I yield back. The Chairwoman. I know that all of us would like to continue, but we have a second panel waiting. So I certainly would like to thank our witnesses. And you can be assured that we will invite you back sooner rather than later to continue this discussion. Thank you very much for being here today. And we will recess just for one moment to transition to the second panel, because we took so much time with your excellent presentations. Thank you. Mr. Lansing. Thank you. [Recess.] The Chairwoman. Ms. Polyakova, Ms. Jankowicz, I want to really thank you for joining us today. If you would be kind enough to summarize your written statement, we would be happy to place your full testimonies into the record. And after your testimony, I will call on members, alternating between majority and minority. Each member is asked to keep questions to within 4 minutes per round. I do want to say, because this subject is of such interest to all of us, we get a little carried away, so we are going to have to keep to our timeframe. And so, after your testimony, I will call on members, alternating between majority and minority. Ms. Polyakova, please proceed. Opening Remarks of Ms. Polyakova Ms. Polyakova. Thank you. Chairwoman Lowey, Ranking Member Rogers, distinguished members of the subcommittee, it is truly an honor and privilege to address you today on this important issue. Thank you for inviting me to testify. President Vladimir Putin's Russia seeks to weaken Western governments and transatlantic institutions, discredit democratic values, and create a post-truth world. Russian disinformation doesn't stop when the ballot box closes. Elections may provide an ideal, high-impact opportunity for a disinformation actor like the Kremlin, but the barrage of disinformation against Western democracies, including that of the United States, continues long between election cycles. Disinformation, as one tool of Russia's political warfare, is certainly not new. But what is new is that, today, what used to take years simply takes minutes. The advance of digital technology and communication allows for the high-speed spread of disinformation, rapid amplification of misleading content, and massive manipulation via unsecured points of influence. I have been working on Russian disinformation long before it became the issue du jour 3 years ago. Likewise, Russia's democratic and pro-Western neighbors, especially Ukraine, Georgia, and the Baltic states, have contended with Russian disinformation attacks for years. The United States and Western European countries woke up late to the challenge. But since the 2016 wake-up call, as you said, Congresswoman Lowey, European governments, the European Union, Canada, and the United States have moved beyond, quote/unquote, ``admiring the problem'' and have entered what I think of as a new period of trial and error, where we are trying new efforts and new policies to counter this threat. Four insights have emerged over the last 3\1/2\ years. These are based on my many, many conversations with my European colleagues on the research side, European governments, and others in the private sector, including the social media platforms. First, there is no silver bullet for addressing the disinformation challenge. Governmental policy on its own will not be enough. What we need is a whole-of-society approach that includes stakeholders from the private sector, independent media, and civil society. Second, exposure and identification of specific malicious entities like Russian bots and trolls is necessary but not sufficient to curb the spread of foreign disinformation. As we respond, our adversaries evolve. Three, the democratic response to state-sponsored information warfare must be rooted in democratic principles of transparency, accountability, and integrity. As we learned during the Cold War, we need not become them to beat them. Lastly, malicious disinformation attacks are not limited to one country; all democracies are equally affected. That is why the Transatlantic Alliance should be the basis of a counter- disinformation coalition in which the United States should play a leading role. Unfortunately, the United States, as you rightfully noted, has fallen behind Europe in both conceptualizing the nature of the challenge and operationalizing concrete steps to counter and build resilience against disinformation. In my written testimony, I have detailed the nature of the Russian threat, European and U.S. responses, and what else needs to be done by this legislative body and the administration. Here, I will focus on a few specific policy recommendations relevant to this committee and the administration. I apologize. I will go about 30 seconds over. During the Cold War, the United States developed and invested in a messaging and media infrastructure that was well- suited for the communications environment and the time. I can speak from personal experience, growing up in the Soviet Union in the 1980s, that we relied on Radio Liberty and Voice of America to provide truthful information about our own country that we certainly did not receive from the Soviet authorities. Unfortunately, that is no longer the case. After the Cold War, the U.S. ceded that space and, with it, our ability to project democratic values and principles into the frontline states. Today, the communications environment has been revolutionized and transformed by the digital revolution, but the U.S. media apparatus has not kept up. A 20th-century model for countering 21st-century disinformation will fail. We need to take urgent and critical steps today. First, the U.S. Congress should invest in a real way in rebuilding our messaging capabilities to reach vulnerable populations in the frontline states. As you have already, but on top of that, we need to focus on building and appropriating appropriate funds to build capacity of civil society media and other nongovernmental organizations. To that end, Congress should authorize and appropriate funds to further develop RFE/RL's and VOA's ``Current Time'' program that we heard about earlier today and allow it to expand further into the former Warsaw Pact countries. Lastly, this Congress should also continue to put pressure on the administration to ensure the administration continues to impose sanctions on foreign officials or officially controlled purveyors of disinformation and their sponsors. I can go on, but just to close, I will say these recommendations, as are outlined in my written testimony, are low-hanging fruit. They will not, in themselves, curb the tide of disinformation. We must take the leadership in this space in addressing foreign disinformation specifically. To do otherwise will be to leave this arena open to authoritarians to set the rules of the game. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you very much. Ms. Jankowicz. Opening Remarks of Ms. Jankowicz Ms. Jankowicz. Chairman Lowey, Ranking Member Rogers, and distinguished members of the committee, it is an honor to testify before you today on a topic of utmost importance to the United States, our values, and our standing in the world. For the past 3 years, I have been on the front lines of the information war, most recently in Ukraine, Lithuania, and Georgia. I have worked alongside, interviewed, and briefed policymakers throughout the region, and these experiences present a grim picture: The United States is abdicating its leadership in countering Russian disinformation. Where we ought to be setting the rules of engagement, the tone, and the moral compass in responding to Russia's information war, the United States has been a tardy, timid, or tertiary player, with much of our public servants' good work on this issue stymied by domestic politicization. Disinformation is not a political issue; it is a democratic one. By convening this hearing, I know the members of this subcommittee recognize that, and I hope you continue to reflect this sentiment in your appropriations decisions. Beyond that challenge, the U.S. has not invested sufficient resources to become competitive in this fight. Russian information warfare continues to target the U.S. And our allies as well as the rules-based international order. It does so through increasingly hard-to-track tactics that I outline in my written testimony. However, countering it has not been a budgetary priority. Russia has not met the same budgetary challenge. After struggling to gain an informational foothold during the 2008 war with Georgia, the editor in chief of RT, Russia's state-sponsored foreign propaganda outlet, described the conflict as a watershed moment. She said, ``In 2008, it became absolutely clear to everyone why we need such a thing as an international television channel representing the country, and of course they began to pay more attention and understand that it costs money,'' end quote. The budget for RT, arguably one of the least effective arms of Russian disinformation, is $277 million in 2020. I am not advocating that the U.S. match the Russian Government's spending on information warfare, nor am I arguing that we mimic its tactics. Instead, we must invest more in the tools already at our disposal, with an eye on empowering individuals, not endlessly fact-checking or playing whack-a-troll. Congress should invest more in programs that, first, teach people how to navigate the modern information environment, including through digital literacy training outside of the context of Russian disinformation. Second, we should inject more reliable information into the ecosystem using existing trusted vectors, such as Radio Free Europe and the Voice of America, and invest in the sustainability of local and independent media outlets rather than just training and capability-building. Third, we should engage people in countries on the front lines of the information war with firsthand exchange experiences in and about the United States through programs including Fulbright, IVLP, and FLEX. It is time for the U.S. to get serious about addressing disinformation and to do so, in part, by targeting those most affected by it: regular people. None of these initiatives are political. They focus on empowering individuals to be active and informed citizens through generational investments in democratic discourse, civic engagement, and truth. Ultimately, these recommendations are a manifestation of America's greatest strength: our values. Thank you. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Well, I want to first thank both of you for appearing before us, and I know we will continue our dialogue. We appreciate your expertise, and I know that all of us on this panel understand the urgency of the messages you are sending. So I am going to be brief and turn to my colleagues--or maybe I will conclude and turn to my colleagues for their questions. Mr. Rogers. Mr. Rogers. Thank you, Madam Chairman. Can you tell us, what is the impact of Russian misinformation? What damage is it doing, and to whom, and why? Either of you. Ms. Polyakova. Ms. Polyakova. I will be happy to begin, Congressman, and I am sure my colleague will follow up. One, if we start asking the question whether Russian disinformation leads to specific outcomes, like the outcome of an election, that is the wrong way to look at this. I think of it as a slow drip of a desire to shape the public narrative and the public view around specific events that are of strategic national interest to the Kremlin. Specifically, when the Maidan revolution was happening in Ukraine in 2013 and 2014, the Russian narrative was that a democratic demonstration that was peaceful was actually a fascist coup led and orchestrated by the United States and especially the State Department and the CIA. At the time, this view propagated and was amplified in mainstream media, including seeping into our mainstream media. So, to my mind, the effect is that it damages the United States' and our allies' images abroad, it undermines our society at home, and it continues to drive wedges between us and our allies internally and externally. Ms. Jankowicz. And I will follow up with a recent example from the Ukrainian elections in 2019. I think the main narrative that Russia was trying to push, although it was less active in these Ukrainian elections than it had been in the past, was that the outcome was already decided, Ukrainians shouldn't bother going out to vote, there were all this oligarchic interests involved in the election, and, really, there was no democracy to be had there. Of course, Ukraine proved Russia wrong, right? But the idea here is to build distrust in the democratic system writ large. It encourages people not to go out and vote, not to participate, and to question everything that they are saying to a conspiratorial kind of degree, rather than participating in democratic debate and discourse to support the democratic system. And I think that, of course, is damaging to United States' interests and damaging to the democratic system writ large around the group. Mr. Rogers. Thank you. I yield. The Chairwoman. Ms. Lee. Ms. Lee. Thank you very much. Thank you both for being here. I think I would address this question to Dr. Polyakova. I recently traveled to Ukraine, Moldova, and Georgia with the bipartisan House Democracy Partnership, where we heard and saw firsthand the impact that Russian disinformation has on undermining political stability and democratic processes. Of course, it was very familiar to me, as an American. You stated in your testimony that a democratic response to state-sponsored information warfare must be rooted in democratic principles of transparency, accountability, and integrity and that these principles should be guiding United States' policy. Now, I have grave concerns about just how transparent and accountable the U.S. Government is when it comes to addressing the significant challenges around countering Russian disinformation machines, particularly in our own country. It certainly has done damage here. You also stated in your testimony that the U.S. has made little progress in addressing the misinformation challenge and that it remains unclear who in the U.S. Government owns the problem. Now, of course, we know Russia took sides in the Presidential elections here in America. That is a documented fact. And their candidate, Donald Trump, won. That is a fact. So let me ask you, how can the United States Government better utilize what tools we have, including diplomacy and coordination across the whole of government, to ensure our success in countering the influence and disinformation by the Russians both here at home in America and abroad? Ms. Polyakova. Thank you very much for this very good question, Congresswoman. Firstly, to focus on what we can do here at home, as you heard from the earlier panel, there are multiple U.S. agencies that coordinate the response to the disinformation problem. It remains a problem with no clear high-level political leadership at the, say, Under Secretary level or above. In a recent report that I co-authored with a longtime State Department Foreign Service officer, Ambassador Dan Fried, called ``Democratic Defense Against Disinformation,'' we outlined a long series of recommendations. And I would be happy to share that full report with you, as well, following this testimony. Some of the highlights that I would include is that best practices from European governments that are ahead of the United States in this space, notably Sweden--I would point to that--Estonia; and, to a certain extent, France has taken the international leadership role in crafting a set of common understandings of allied and like-minded democracies. Some of the best practices from the European context are: One, there needs to be high-level political leadership that coordinates U.S. governmental efforts at the interagency level. Multiple versions of this have been proposed, whether that be in last year's minority report from the Senate Foreign Relations Committee that proposed an NCTC-style model for counter-disinformation. A fusion cell is something it has been called as well, to be housed in any of the U.S. agencies, but DHS clearly has the homeland mandate. And DHS so far has focused on the hard security versus information security. So that is on the domestic front. If you will allow me 1 second on the foreign front, which of course is the main concern of this committee, we need to reinvest in supporting independent civil society in those frontline states. The Balkans I would put as a potential area that will lead to some conflict in the near future. Russia owns that media space. What I see over and over again is RT and other similar services provide the local- language information in the same way that AP provides cable news that is then pasted, usually without any attribution, into local newspapers. And you can imagine what kind of ``information,'' quote/ unquote--I put that in quotes--that is. It is certainly not information that is anything positive about the West or the United States. Ms. Lee. Madam Chair, I would suggest that if these recommendations have been made and if they haven't been embraced by the highest level of our government as it relates to our own efforts to stop the disinformation, then we are complicit in this. And so we need to really figure out why these recommendations haven't been addressed, especially with elections coming up. Because, otherwise, you know, it is, like, hands off, you know? Ms. Polyakova. If I may have 1 second, I think if we want to understand the kinds of threats that we will face in the future here in this country, we must look to those frontline states, like Ukraine, who have been undergoing these kinds of attacks for decades. And everything that we have seen happen in this country has happened there before. Ms. Lee. Thank you very much. Thank you, Madam Chair. The Chairwoman. Thank you. I am going to ask a few questions, and hopefully you can all sum up, because, clearly, we are going to meet again. And I apologize, but there are so many other hearings going on, it was not for a lack of interest that colleagues on both sides of the aisle have wandered off. So I am going to ask a couple of things, and then I know we will meet another day. First of all, in the first panel, we heard from CEO Lansing of the United States Agency for Global Media. My first question is, how can we use their platforms, including the VOA and Radio Free Europe, which you touched on, to reach audiences, break through the noise and clutter of the 21st-century media environment? Or are these agencies not relevant today? Secondly, what role can and should U.S.-funded independent media play in fighting Russian disinformation and malign influence? What role does forceful diplomacy play in the battle against disinformation? Do the United States and our allies adequately prioritize disinformation efforts for our diplomatic discussions with Russia, China, and others who engage aggressively in these attacks? I don't mean to have you taking all these notes, but I would like you to sum up addressing these issues. And which countries have done the best at responding to disinformation campaigns, and can we learn from these lessons? And, Ms. Polyakova--or Dr. Polyakova, you have cited the EU's Rapid Alert System as an example of progress in Europe in fighting disinformation. I thought it was interesting that, over the weekend, The New York Times carried an article that questions the system's effectiveness to date. How do you evaluate the New York Times' piece and the Rapid Alert System's effectiveness to date? And, Ms. Jankowicz, you have written that Moscow has used Ukraine as a disinformation laboratory for years. So, if you can, describe Russia's actions in Ukraine, what it learned, the results from such actions, and how Russia applies lessons from Ukraine elsewhere. I would be most appreciative if you could address those points. Sum up as best you can. You know we are going to bring you before us again, because your information is so vital. And as I thank you again, I would like you to sum up--you heard the other testimony first from the first panel. I know you feel this is urgent. I feel it is absolutely urgent. I know Mr. Rogers agrees with me. Help us as to what the next steps should be. And perhaps the next steps should be in a classified setting so that we can really understand exactly what is going on. I don't think there is an issue--and I say this all the time--that is more important and more urgent than addressing what Russia is doing, especially as a result of their actions in the last election. Please proceed. Ms. Polyakova. Thank you, Chairwoman Lowey. And I just want to acknowledge your leadership and the leadership of Congressman Rogers on the issue of Ukraine, Russia especially. You certainly have been an important voice in helping to understand Russia's hybrid warfare and political warfare against its neighbors. And I completely agree with my colleague's written testimony. The Ukraine is the testing bed for Russian techniques, and this is where we must look to understand what is coming to us. To address your specific questions regarding the European so-called Rapid Alert System, in the report I mentioned earlier, we do assess--and that came out before the New York Times article--we assess that system as potentially useful if it is fully implemented. At the time, it was not fully implemented. It remains unimplemented today, which is a shortcoming of the EU efforts in this space. However, while I agree with the criticism in the New York Times article and cite it in my written testimony as well, I think it serves as an interesting potential model from where we should learn from in the United States. It is basically an information-sharing mechanism. Obviously, the EU is very different than the United States. It is a country with 28 member states that have not been sharing information in a productive, concrete process when each country faces a disinformation attack or information manipulation. So, hopefully, if, with a little bit more time, the so-called RAS system will be stood up and will be effective for information-sharing, I think we can learn from the mistakes and successes of the EU as it seeks out certain solutions. In my written testimony, I also recommend that the United States, looking at some of the European pitfalls and successes, considers implementing a U.S.-style Rapid Alert System as well that could only be operational, for example, during election cycles, which is not the only time disinformation occurs but is certainly a peak and a huge opportunity for malicious actors. I think we should look to Europe and to learn from them. I already mentioned Sweden as a potential country that we should look at for best practices. Again, Sweden is not the United States--you know, the scale questions that I don't need to go into with you. However, there are some interesting things that they have done prior to their elections this past fall. One, the Civil Contingencies Agency, which is the Swedish equivalent of DHS more or less, has established for the last few years a psychological defense agency. So they are deeply focused on cognitive security as part of information security and part of cybersecurity. I think we have something like this in the classified intelligence space, but without clearance, I cannot confirm that, to be honest with you. One thing that---- The Chairwoman. Our next hearing will be classified. Ms. Polyakova. I will say that the Civil Contingencies Agency did two things prior to secure their own elections. One, they sent out, I believe to every household in Sweden, a very simple information pamphlet: What is disinformation? Why should it be something that is of concern to you locally? You know, the equivalent being someone in a small town in Georgia and Michigan receiving something similar. What do you do if you think you are reading information that is inaccurate and is trying to manipulate you? Second, they sent out similar training materials to teachers and schools so that students could be better educated on: How do you discern disinformation? What is it? Why is it an issue for you? So these are just some of the efforts that I think we may want to look at. And, thirdly, they have developed, again, communication information-sharing between local, like, city councils and all the way to the Federal level. And they have done trainings with civil servants so internally there is awareness within government, not just externally in the public. I think where we are today and the reason why I say that we have lagged behind is, one, there is lack of awareness internally within our government and a lack of public awareness as a result of that. Because we haven't seen leadership at the highest level--at the highest level--here in this country on this issue that would define the threat for the American people so they can better understand why they should care. Right now, I think your average American doesn't understand why they should care about Russian disinformation, and that is a big problem. Lastly, before I wrap up, you asked regarding USAGM and how we can better use those resources. In my written testimony, I basically outline a proposal in which there is a full audit conducted of all of the services with an eye towards performance indicators and that those services that are not performing in line with those indicators be significantly reduced. I do think our RFE/RL has been very effective in its ``Current Time'' program that we saw the presentation of, but it is operating on a shoestring budget, as far as I can tell. It is not competing in terms of production values with RT by far. Again, I am not advocating that we should match RT's budget, but I think with a redistribution of resources that takes funding away from some programs that are not performing and able to refocus on digital, innovative solutions versus traditional media--again, this is the 21st century. This is the digital century. We are still operating as if we are, you know, in the 20th century and everyone is watching the nightly news at 6:00 p.m. That is no longer the case. And, again, just to point out that these efforts during the Cold War were incredibly effective. Again, not just my personal experience, but certainly my personal experience and my family's experience in the 1980s speaks to that. It was part of the reason why we immigrated to this country, because we understood what the truth was about our own country that our authorities were not providing at the time. In my written testimony, I have lots of numbers that you can look at to see why we are not competitive with the Russian disinformation machine at this time. Thank you. The Chairwoman. Thank you very, very much. Ms. Jankowicz. Ms. Jankowicz. Thank you again for having me, Chairwoman. I will start with Ukraine. There are a couple interesting developments in Ukraine that happened during the recent Presidential election, and I would describe them as the Russian and other malign actors trying to move underground. We have put up a lot of obstacles, both through our advocacy as the United States and social media platforms as well. And some of this has been a bit of a smokescreen-- right?--so that the social media companies look like they are adequately addressing the problem. Malign actors have figured out how to exploit these barriers and get around these loopholes. One way that they are doing this--we talked a lot about ad buys and how the Russians bought ads. They do that in Ukraine, certainly. They are trying to get around those geographical ad restrictions by using ad mules. So they will find people who are willing to rent out their authentic Facebook accounts for about $100 a month, and those people provide them access to those accounts. It looks like, you know, an authentic Ukrainian is actually logging in and buying those ads, and then they are able to place those political adds. I would also say that Facebook has been extraordinarily lax in enforcing those policies. And that is something that needs to be addressed but, of course, is beyond the oversight of this committee. In addition, we are seeing a lot more disinformation in groups and private messengers. So we have seen that happening in Brazil and India on WhatsApp, but recently in Ukraine and Lithuania I tracked a lot of disinformation moving in private Facebook groups. This is extremely worrying to me, because right now the social media companies, Facebook in particular, are, again, pivoting to privacy, which is a bit of a smokescreen, as I said, in order to make people feel more secure about their information online after countless errors on the social media company's parts. But what that is doing is driving people to have conversations in these private fora, which researchers like us and journalists cannot track. And even the social media companies have a much more difficult time tracking and curating that information. And, also, they are kind of insular communities. There is a lot more trust between these groups because it is people of a certain political ideology or a certain background. That trust is built up over time, as we saw in the 2016 election, and that is exploited to share malign narratives. This is something that is extremely worrisome to me. Facebook is incentivizing this behavior, and it is where we should look to the future from Ukraine. Ms. Jankowicz. To address the question about RFE/RL and VOA, I have found these resources to be invaluable not only in their English language coverage, which is one of the most important sources for informing experts like myself when we are not on the ground, but, also, their local language services are invaluable. I know during the Georgian protests, which happened a couple of weeks ago, I turned to RFE/RL, my Georgian friends were turning to RFE/RL to look for coverage of the protests, especially in a politicized media environment like in Georgia. I would say that these entities face the same issues that U.S. media outlets are facing right now. They are competing in a very crowded information environment. They need more funding, just like The New York Times and local media outlets in the United States need, in order to compete in this environment. It is not easy, but we need to understand that journalism is a public good and continue investing in that. I think that is critical. You discussed a little bit U.S. and our allies, are we adequately prioritizing dialogue. I think the more dialogue we can do with our transatlantic allies, the better. The United Kingdom is leading right now, I would say, in terms of efforts to counter disinformation abroad. I think a great example of how their systems work--and I would add that they don't have one specific agency that is leading on this; they just have a really good coordination system in place. Look at the Salisbury poisonings and the diplomatic response that they were able to send in reaction to that tragic event. And then, finally, you asked which countries did the best. Alina mentioned Estonia before. I love the Estonian example because it started with a lot of fact-checking and pushing back against the Russian narrative and ended, or is still ongoing, with investment in people. If you look at my testimony to the Senate Judiciary Committee that I did last year, I go into that example in detail. And it is about education, it is about outreach--again, what I spoke about in my testimony today. These generational investments are going to be the ones that win the battle in the long run. Ukraine is doing similar things with media literacy. As we heard about the Learn to Discern program, I think is a great model that is now being tried out in the United States by IREX. One thing that I would caution against doing is the infringements on freedom of speech that we are seeing in Ukraine. I wrote for The Atlantic about some of those issues, blocking and banning certain websites and social media. We don't want to go down that route. And then, finally, I think I will just add that democratic systems, the most robust democratic systems, where people trust in the system, like Sweden, like Estonia, like Finland, are the ones that we see having the strongest resilience to disinformation. And so, in that regard, I would encourage the committee to think a bit outside of the box and think about more investments in organizations like the National Endowment for Democracy, programs that DRL, USAID, NDI, IRI are doing. Because as we build up those systems, we are going to build more resilient populations. Thank you so much for having me. The Chairwoman. Well, on behalf of Mr. Rogers and myself and the entire committee, I am so grateful to you. I thought your testimonies were outstanding. And I look forward to continuing to work with you as we evaluate the really good work of the agencies we currently fund. And, hopefully, based on your advice, we can even provide more services to those agencies that are so desperately needed today throughout Europe. So thank you very much. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. This concludes today's hearing. Thank you. Thursday, July 11, 2019. MANAGEMENT CHALLENGES AND OVERSIGHT OF DEPARTMENT OF STATE AND UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT PROGRAMS WITNESSES ANN CALVARESI BARR, INSPECTOR GENERAL, USAID STEVE LINICK, INSPECTOR GENERAL, U.S. DEPARTMENT OF STATE Opening Statement of Chairwoman Lowey The Chairwoman. Good morning. The Subcommittee on State, Foreign Operations, and Related Programs will come to order. I am pleased to welcome State Department Inspector General Mr. Steve Linick and USAID Inspector General Ms. Ann Calvaresi Barr. The oversight of programs and operations to ensure accountability and effectiveness of taxpayer dollars must be a paramount focus of all government agencies, and I am glad you are here today to provide your assessment of where improvements need to be made at the Department of State and USAID. As chairwoman of both the House Appropriations Committee and this subcommittee, I was pleased to oversee the passage of the fiscal year 2020 House State and Foreign Operations appropriations bill, which would provide more than $56 billion for our diplomatic and development efforts. These programs are not just the right thing to do, they support our national security and economic growth and help promote democracy abroad. The mandate of inspectors general is to provide independent oversight that ensures the integrity of our programs and prevents the waste, fraud, and abuse of U.S. taxpayer dollars. Your particular mandate is even more challenging, given the high volume of overseas partners and the unpredictable environments in which the State Department and USAID work. The offices of the inspectors general must have the necessary resources to ensure United States Government engagement and investments are efficient and effective, especially in areas affected by conflict, humanitarian crisis, political instability, or terrorism. To this end, our fiscal year 2020 bill would provide $90.8 million to the Department of State's Office of the Inspector General and $75.5 million to USAID's Office of the Inspector General to ensure accountability in program implementation and operations. Ms. Calvaresi Barr, I want to point out that the House provided the level your office requested, not the lesser amount requested by the President. While I support efforts to strengthen civil societies, provide sectors and host country health systems, a push for local procurement can lead to difficult-to-manage risk, especially in areas of instability or when responding to humanitarian crises. I am also concerned about longstanding management challenges your offices have identified at the State Department and USAID. We must always strive to do better on behalf of the American people. Lastly, I also want to emphasize, especially as we near the 2020 election cycle, that critical attention must be paid to Hatch Act compliance. I expect your offices to refer any reported violations of the Hatch Act to the Office of Special Counsel for enforcement. Thank you for your commitment to providing independent oversight of our overseas programs today and beyond. We encourage transparent coordination with Congress in identifying challenges at the State Department and USAID. Your insight and recommendations on solutions are most welcome. Before we hear your testimony, let me turn to my ranking member, Mr. Rogers, for any opening remarks he would like to make. Mr. Rogers. Thank you, Madam Chair. I join the distinguished chairwoman in welcoming our witnesses back to the subcommittee. As you may recall, the first hearing I held as chairman of this subcommittee was with these two inspectors general examining critical areas of oversight for the Department of State and USAID. I look forward to receiving your update today on challenges that continue to hamper the efficiency and effectiveness of the agencies that you oversee, as well as progress that has been made since we last met. I would also like to thank the two of you and your colleagues for your continued service to the country. You are doing good work and this committee values the objective and rigorous oversight that you conduct on behalf of the American taxpayer. We rely on your expertise to help us kick the tires and look under the hood of the Department. What we have found are chronic mismanagement challenges. Some are being addressed sufficiently, others are not. We need to shine a light on these problems and ensure that top leadership of the agencies are acting on your recommendations. I have been taken aback, frankly, during my time on the subcommittee to see the same set of top challenges identified year after year. Simply put, it is not acceptable. So I want to hear from you both today on what specific things need to be done to remedy this management shortfall. Mr. Linick, this year you identified seven key management and performance challenges at Department of State. They will sound familiar to anyone following your work and they include these: protection of people and facilities; oversight of contracts, grants and foreign assistance; information security management; financial and property management; operating in contingency and critical environments; workforce management; and, promoting accountability through internal coordination and clear lines of authority. Now that we finally have an under secretary of management in place, a fight that we have been fighting it seems like forever, finally an under secretary of management in place, hallelujah, we will be watching to see how he plans to address these challenges I just mentioned that cut across the most important and fundamental responsibilities of the Department. Ms. Calvaresi Barr, this year you identified four top management challenges, including: managing risks inherent in providing humanitarian and stabilization assistance; strengthening local capacity and improving program planning and monitoring; reconciling interagency priorities and functions to more efficiently and effectively advance U.S. foreign assistance; and addressing vulnerabilities in financial and information management. I raised these issues, most of which are not new, with Administrator Green during our USAID oversight hearing earlier this year. He committed to completing the recommendations that I just mentioned, so I intend to follow up on that and would appreciate your most recent assessment of their work on this. We want to see results finally. There is no shortage of topics to discuss, so in closing, Madam Chairwoman, I want to thank these two witnesses and their staffs, as well as your staff, stationed around the world for leading the fight against waste, fraud, and abuse. We appreciate your continued and meaningful engagement with this subcommittee. I yield back. The Chairwoman. Ms. Calvaresi Barr, Mr. Linick, if you would be kind enough to summarize your oral statement, we will be happy to place your full testimonies and recommendations into the record. After your testimony, I will call on members based on seniority present when the hearing was called to order. I will alternate between majority and minority. Each member is asked to keep their questions to 5 minutes per round. Ms. Calvaresi Barr, please proceed. Ms. Calvaresi Barr. Madam Chairwoman, Ranking Member, and members of the subcommittee, thank you for your invitation to testify today. USAID frequently relies on other entities to implement its programs, particularly in tough environments. It must continually balance the imperative to deliver on its mission against the risks associated with it. This context demands flexibilities, but creates risks. To better ensure USAID effectively manages these risks we shifted our oversight model from a country-specific one to one that is more strategic and crosscutting. This has put us in a strong position to make recommendations that get at the root of USAID's most persistent challenges. Our impact is encapsulated in four top management challenges for fiscal year 2019. The first challenge concerns managing humanitarian assistance threats. Insufficient risk assessments not only leave USAID assistance vulnerable to exploitation, but exposes the agency to threats it does not fully understand. This allowed bad actors to profit from U.S. good will and in some cases to materially support terrorists. We have uncovered fraud, corruption and mismanagement in cross- border relief programs in Syria, stabilization efforts in Iraq, and public health response efforts in Africa. The second challenge concerns the sustainability of some of USAID's largest development investments. We found a lack of upfront analyses that fully assess countries' capacity, will, and resources long after U.S. involvement ends. Insufficient planning and monitoring underlies this all and further diminishes sustainability. Reconciling interagency priorities to advance foreign assistance is the third challenge. Coordination and consensus are key to keeping interagency programs on track. Competing priorities impede development activities. The fourth challenge concerns the integrity of USAID's financial and information management systems. It all starts here. Without reliable core systems the agency cannot successfully execute its mission. Our work has prompted foundational changes at USAID. They, for example, set strict requirements on implementer awards, strengthened standards for overseeing U.N. agencies, shored up its supply chain for lifesaving commodities, and promptly responded to identified diversions to terrorist organizations. It has also doubled down on requirements for reporting sexual exploitation and abuse of beneficiaries. While positive actions, the agency needs to rethink its culture of partnership with implementers. No doubt they are critical to USAID's mission, but it must first ensure implementers fully understand the requirements that they are entrusted with and expected to carry out. Ultimately, USAID must be the first line of defense, but they must also hold others they rely on accountable. This concludes my prepared statement. I am happy to answer any questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you. Mr. Linick. Mr. Linick. Chairwoman Lowey, Ranking Member Rogers, members of the subcommittee, thank you for inviting me to testify regarding the work of the Office of Inspector General. We appreciate your interest in our work. We oversee the operations and programs of the Department of State and U.S. Agency for Global Media, also known as USAGM, which include more than 75,000 employees and 270 oversees missions and domestic entities. In fiscal year 2018 alone we were responsible for the oversight of more than $70 billion in Department and USAGM programs and operations. I would like to highlight some of our recent work. One of our top priorities is protecting those who work for the Department around the world. We continue to find critical vulnerabilities that put our people at risk. We have reported on facilities maintenance deficiencies at overseas posts, weaknesses in emergency preparedness, and health and safety concerns related to residential housing. We have also reported on the management of specific construction contracts where poor oversight led to physical deficiencies, some with safety and security concerns for new buildings. We have also focused on the Department's management of contracts, grants, and foreign assistance. This is a continuing challenge for the Department that involves substantial resources. In fiscal year 2018 alone the Department's obligations were more than $30 billion. Nearly 40 percent of the investigations we closed in fiscal year 2018 were related to contract and grant fraud. And we have issued several recent reports that highlighted problems such as ineffective performance, monitoring of contractors, deficient invoice reviews and approval processes, and insufficient program evaluation. Our annual FISMA report identified numerous control weaknesses that significantly affected program effectiveness and increased the Department's vulnerability to cyber attack and threat. We continue to assess the Department's workforce management challenges. We found that across functional and geographic regions inexperienced staff, insufficient training, staffing gaps, and frequent turnover negatively affect Department programs and operations. During my tenure at the Office of Inspector General we have undertaken many initiatives to improve how we use our limited resources to further our oversight mission. Most recently we began posting monthly reports on unclassified recommendations on our public website. We provide this information as well as monthly reports on classified recommendations to the Department and to Congress. Before closing, I would like to note that we recently observed improvements as a result of our work. The Department is doing a better job of tracking physical security deficiencies, it has upgraded management of its contract file inventory, and it has improved armored vehicle programs in multiple ways. I have included financial information in my written testimony that demonstrates the ways that OIG helps return money to the American public. We are also proud of our work relating to the safeguarding of the lives of those at posts abroad and protecting the Department's information, reputation, and program integrity. I want to thank you all again for your interest in and support of our work, and I want to emphasize that OIG's accomplishments are really a credit to this talented and committed staff that I have had the privilege to lead over the last 5 years. I look forward to your questions. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Thank you. I would like to begin with a request from my colleagues Chairman Engel and Chairman Cummings, from the Foreign Affairs and Oversight Committees, respectively. They suggested, and, in fact, they asked me to follow up on their request, they asked you to conduct an inquiry into reports that career employees at the State Department have been subjected to improper retaliation, including for their perceived political views and ethnic identity. I understand that your office has been carrying out that inquiry for well over a year now, and it is critical that facts about any prohibited personnel practices at the Department be brought to light so that perpetrators can be held to account and future retaliation can be deterred. Mr. Linick, do you believe prohibited personnel practices were carried out against any of the State Department employees about whom my colleagues have raised concerns? Mr. Linick. Thank you for that question. We actually have ongoing work addressing that very issue. We have two reports. We are looking at allegations of improper personnel practices in the Office of the Secretary and we are looking at improper personnel practices in the Office of International Relations. The Office of International Relations--Organizations, excuse me--that report will be going to the Department in the next day or two. And the report involving the Office of the Secretary I anticipate will be going to the Department in August. So that very issue that you just raised is part of our report. I am not prepared to report on the findings, but I have confidence that those findings will be published shortly after these reports are finished. The Chairwoman. I appreciate that. But I wonder if you can share with us, in the context of the investigation, has the Department taken any steps to address these allegations? You say you are doing a report, but have there been any steps specifically taken to deter further retaliation? Mr. Linick. I can't comment on any of that until my report is published and we address those issues in the reports, and I am reluctant to talk about our findings until we have a final report. The Chairwoman. Well, I was also told that you have decided to delay releasing a piece of the report dealing with allegations against members of the Secretary's own senior staff. Is that correct? Mr. Linick. That is not correct. We started with one report involving allegations against individuals in international organizations and also allegations against the Secretary's office. We decided to split the reports up because we are basically done with the international organizations report. We wanted to get that out to the Department and get that published after the Department has a chance to look at it. The other report, the allegations involving the Office of the Secretary, like I said, which I anticipate will be going to the Department in August, that is more complex. There is a parallel OSC investigation. And we want to make sure we get it right. We want it to be accurate and thorough. It is a top priority for our office. And I am confident that once it is published you will see that its accurate, thorough, and complete. The Chairwoman. Now, one last question, because we have seen documents indicating that some Department officials use their personal rather than their government email accounts to discuss employees' political views and background. Did you seek these relevant records from both personal and government email accounts? Is that a valid concern? Mr. Linick. I can say that where appropriate we did actually collect private email as well. The Chairwoman. Thank you. Now, one of my concerns for many years has been the protection of people and facilities. And I know it has always been a top management challenge to the State Department. You have identified systemic issues regarding physical security, specifically a lack of coordination between the Bureau of Overseas Building Operations and the Bureau of Diplomatic Security, both of which have responsibility for physical security. So I am, as you know, very concerned about these issues. Have these two bureaus implemented your office's recommendations to address physical security-related deficiencies? Mr. Linick. So the relationship between Office of Diplomatic Security--Bureau of Diplomatic Security, DS, and OBO, has improved in terms of coordination. I would say the most significant recommendation that has not been implemented which we believe would go far in addressing security concerns has to do with prioritizing physical security deficiencies around the world. So in other words, the Department has a universe of physical deficiencies and they are prioritized based on risk, and then they can use their limited resources to figure out how they are going to aim their resources for purposes of planning the future. I think it would also give them a way to be more proactive as opposed to reactive when security deficiencies come up. The Chairwoman. Can you just comment or--either. First I will start with Mr. Linick--on the hiring freeze and did it damage State and USAID's ability to meet diplomatic challenges and effectively manage foreign assistance programs around the world? Mr. Linick. So we have a report that is in its final stages on that very issue, on the impact of the hiring freeze. I believe you asked us to do that work. And we have looked at the impact of the hiring freeze both in 2017 and its impact currently. And so that report will be published soon. So I can't really talk about the findings of that particular report. However, I can share with you anecdotal evidence from our inspections in which we have gathered information during our overseas work about the hiring freeze. And I can say that there is evidence that it has affected staffing, for example, in consular operations. It has affected staffing in Bureau of Diplomatic Security, which obviously affects our security if we have limited staff. It has affected our IT staff. And it is had a big impact on our eligible family members and our civil service. And as I understand it, we have not recovered yet even with our civil service staffing levels at this point. The Chairwoman. Now, specifically, has your office evaluated the continuing lack of senior leadership at State and its impact on policy formation and program execution? Can you just share with us briefly your findings on that? Mr. Linick. Absolutely. We haven't done a sort of a systematic look at the impact of vacancies at the senior levels, so we don't have a report or a body of work in one place on that. However, as I mentioned before, we do inspections all over the world. We look at executive direction and leadership. And I would say the results are mixed. In the spring we did 13 inspections and 5 of which were posts without ambassadors. And in some instances where we don't have leadership, we have found that it has affected the morale, it has affected relationships with the host government. We had one situation where particular a charge, acting ambassador, could not meet with the foreign minister because of the temporary status of the individual. And it has also impacted strategic planning. And what complicates things is when these vacancies are filled by folks who are very well intentioned, but who are wearing dual hats, who are perhaps management officers who are doing the work of DCMs and things like that. Perhaps they don't have the experience and so forth. So that has been a problem. On the other hand, we have found a number of posts where acting leadership is doing just fine and they are doing a good job. So in sum I would say it is mixed. The Chairwoman. Before I turn it over to Mr. Rogers, if you could just further, on the first case studies where there are real problems, what do you do about it? Does anyone care at the White House? Who do you report to? And do they respond or do they say, ``Okay, it is fine that it is not operating effectively''? Mr. Linick. Well, as to the first issue, we actually write our findings in a report. All of this is public. The Chairwoman. Who gets it? Mr. Linick. Congress, the American public, and the Department, the Secretary of State. The Chairwoman. Anybody in the White House that you all respond to? The Secretary of State should be concerned about this, no? Mr. Linick. We don't report to the White House. We report to the Congress and to the Secretary of State. And we---- The Chairwoman. You do report to the Secretary of State? Mr. Linick. We do, by law. The Chairwoman. Has there been any feedback? Mr. Linick. Well, we get feedback on our findings. The Department comments on them. Sometimes they do take action. Sometimes they have removed leaders in those spots. And they are aware of and we get frequent feedback from the Department on our findings. The Chairwoman. I am going to turn to Mr. Rogers, but if we have time, I would like to explore that further. If you are doing a careful analysis and you are getting feedback from the field, specifically the kind of incidents you spoke about, and you don't get any concern or any direct change, seems to me we have a real problem here. Mr. Rogers. Mr. Rogers. It has long been the focus, Mr. Linick, in your office on the oversight of contracts, grants, and foreign assistance. As the Department engages in very complex acquisitions to procure services and supplies, the Department continues to face challenges in properly overseeing contractor performance. Oversight personnel must monitor and document performance, confirm that work is conducted in accordance with the terms of the contract, hold contractors accountable for nonperformance, and ensure that costs are effectively contained. In fiscal year 2018 Department obligations included $15 billion for contracted services and $15 billion in grants and fixed charges. Can you tell me that it is being properly overseen? Is it your assessment that at the root of many of the deficiencies described in your most recent top management report are inexperienced, untrained oversight personnel, staff rotations that promote inefficiency, and complex programs and contracts that simply require more oversight? Mr. Linick. That is correct. This has been a persistent issue with the Department for many years. At the root of it I think it is a cultural issue. They are not really focused on program management, they are focused on diplomacy, and there is far too much program and far too little oversight. And this results in a lack of sustained focus on experienced staff and getting contracting personnel properly trained up. There are structural issues in the Department as well. We have a mix of people who are doing contract oversight, including foreign service officers, who are moving from post to post, so there is lack of consistency in contract oversight. One of the biggest recommendations in this area that we have made is the Department needs an electronic inventory system so that our contracting officer representatives who are in far-flung places can be overseen by contracting officers at headquarters in Washington, and that still hasn't happened. At the root of this, in my estimation, is they really need to professionalize the contracting personnel at the State Department, there needs to be a job series for contracting officers, contracting officer representatives, and the like. So it is a problem, and I think that improvements are at the margins. Mr. Rogers. Would you do a paper for us on that topic that you just covered? Can you prepare for us a summary of the problem that we are discussing here and what we can do to fix it? Mr. Linick. I would be happy to work with your staff in coming up with a scope of a paper like that. That would be fine. Mr. Rogers. I thank you for that. We look forward to hearing from you. Now, the President's budget request for the Department, and in fact in your office, suggests quite a substantial cut in your funding levels. What do you say about that? Mr. Linick. Well, we requested $90.8 million, which is what our budget was last year, and we received $88.8 million. So we had a $2 million decrease. We need resources. We have worldwide coverage. We have huge travel costs. We have mandatory inspections that we have to do all over the world. We have whistleblower obligations and reporting requirements. We have many requests from Congress to do work and everybody wants their work done quickly. And we also have our own separate IT network, and we need money for that. So we asked for money for that. We are independent from the Department. We became independent just a few years ago. So we need the resources. Mr. Rogers. If later this year the administration acts on their proposal to draw down State Department and AID personnel in Afghanistan, with parallel reductions in U.S. civilian assistance, how would that impact your ongoing oversight mission? Mr. Linick. Well, we think that there is even more risk with a drawdown. We have done work on this in the past--more risk of fraud, waste and abuse. We have done work on this in the past when there was a drawdown back in 2013 in Iraq and we found that the drawdown of personnel was not done in accordance with guidelines and so forth and we found $193 million in waste. So I would argue that oversight is even more critical if there is a drawdown, and we are insisting that we continue to maintain our current staff both in Afghanistan and Iraq for that purpose. And to the extent that there is a drawdown, we do plan on auditing that, given the history of issues that we have seen in the past. Mr. Rogers. Thank you, Madam Chairman. The Chairwoman. Thank you. Just a quick comment before I turn to Mr. Price. We have been in Afghanistan 17 years. Is that correct? Mr. Linick. It sounds about right. The Chairwoman. It doesn't take a brain surgeon to figure out that if you suddenly withdraw there would be problems. And we have recently read of girls schools being blown up. So I am just wondering, who is listening to you with regard to drawdown? Is your input taken seriously by the Secretary of State or are they just going about their business? Mr. Linick. Well, I can tell you that I have talked about this issue of drawdown and the perils of a quick drawdown without a systematic look with both the Deputy Secretary of State and the Under Secretary for Management. And I have actually sent letters to the U.S. Ambassador in Afghanistan, John Bass, and I have also sent a letter to the Charge, Joey Hood, in Iraq warning them of the dangers, at least from a fraud, waste, abuse perspective, of a drawdown that doesn't take into consideration cost optimization, foreign policy priorities, and so forth. The Chairwoman. Have you gotten any response? Mr. Linick. They acknowledge--they have acknowledged receipt of the information and they appear to understand the implications. The Chairwoman. Has there been any change in the plans as a result of your thoughtful presentation? Mr. Linick. I don't know. I haven't looked at it, so it would be unfair for me to say yes or no. But I haven't---- The Chairwoman. Why wouldn't you look at? I would think that you have an incredibly important responsibility. And if you can document specific problems with the drawdown that is being proposed, I would think you have responsibility to scream from the rafters to the Secretary of State and to whomever is listening. Mr. Linick. Well, we do plan on looking at the drawdown. What we don't want to do is get involved---- The Chairwoman. Who is looking it the drawdown? Mr. Linick. OIG, State OIG will be looking at the draw down once it is done. In other words, we will be auditing it. The Chairwoman. Oh, please. So if you are presenting information delineating the risks of specific drawdowns, you are going to wait until after it is done and you are going to assess the damage? I am puzzled by that. Mr. Linick. Well, we have, first of all, we haven't seen plans for a drawdown, number one. And we don't want to get involved in the policy issues. We have warned the Department that a drawdown needs to be done carefully to avoid fraud, waste, and abuse. So they understand. We have provided them with our past work on this. So we have a track record. So everybody sort of knows what is at stake here. At the end of the day, we can't get involved in the drawdown and say you can't do this or you can't do that, because that would be beyond our role as an Office of Inspector General. But I believe that we have acted responsibly by being very proactive in trying to prevent the fraud before it occurs. The Chairwoman. Before I turn to Mr. Price, I like to personally request, and I certainly would want to share it with this committee, your memos regarding concerns about drawdowns. Mr. Linick. Absolutely. The Chairwoman. And any response that you have gotten from the Secretary of State or nonresponse that you have gotten from the Secretary of State. Mr. Linick. We would be happy to provide them. The Chairwoman. For those who have been to Afghanistan and been very involved, this is problematic, which is an understatement. Mr. Price. Mr. Price. Thank you, Madam Chairman. I would like to turn to Ms. Calvaresi Barr with a related question which has to do with the unusually wide gap that has opened up in this administration between congressional intent, as expressed in the appropriation of funds, and what is actually carried out on the ground. And I do have some general--I do have some curiosity about the extent to which that represents a red flag for you and would call for some analysis when we are talking about funds being just cut off in the middle of the year; or, for that matter, reports about funds moving out very slowly and in ways that really frustrate congressional intent. But let me turn directly to the cutoffs. These cutoffs-- let's just focus on the West Bank, Gaza cutoff and Triangle countries of Central America cutoff, let's focus on those. Ostensibly these cutoffs of funds in the middle of the fiscal year are linked to foreign assistance reviews, very broad reviews, not about specific programs, but about whole countries. And they have been accompanied with rhetoric that suggests a punitive intent. You know, the Central American countries aren't doing enough to stop the flow of migrants and so we cut off the funds designed to help them prevent the flow of migrants. I am not saying it makes sense, I am just saying it suggests a punitive intent. The same with the Palestinian aid. These people supposedly aren't cooperating satisfactorily in a process that has totally marginalized them. So there is a punitive intent that is suggested. There is this ostensible tie to a review. I want to ask you about that. There was a review, as I understand, the Trump administration undertook a review of assistance to South Sudan, but the funding continued during that review. And I wonder what the normal practice is, first of all, how narrowly focused these reviews normally are and if they usually involve a total cutoff of funds. And then I want to, if we have time, want to get into the question of what does this kind of abrupt cutoff do to the way these programs work or don't work on the ground. But if it you could answer me about the cutoffs and the line, the ostensible link to reviews, and what your office has to say about this to the extent to which you have looked at it or would intend to. Ms. Calvaresi Barr. Thank you very much for that question. And I will start by saying that policy decisions that are made, as Steve indicated, are something that the IG comes at from an oversight perspective and we stay clear of commenting on sort of policy decisions. But what we need to do as an IG, as an effective, independent IG, is to look at the effect of those decisions, the effect of those drawdowns. I want to start with where you ended on your question, which is---- Mr. Price. Before you do that, I do want you to talk about that and I appreciate that, and I don't expect you to comment on my comments about the rhetorical overlay here, but the process is a legitimate question. And I am asking you about the process and what the normal process is and the ostensible tying of a total cutoff across a whole region or across a whole country to some kind of broad review. I mean, what is the process here? Ms. Calvaresi Barr. So decisions are oftentimes made. Sometimes these decisions are made and they take the diplomats overseas and other mission folks overseas by surprise. As we saw, Steve and I, along with the DOD IG, travel into theater quite a bit, and our lead IG construct, and when we met with diplomats as well as senior career folks, both at State, DOD, and USAID, you could see that they were struggling to figure out how to adjust to the cuts that were coming in. In the case of USAID, I have seen the impact that it has on the implementer community. USAID relies on implementers oftentimes to do its work, particularly in those tough environments. And that type of ``one day we are on, one day we are off'' creates very chaotic operations in terms of what are we supposed to do next. So what you see happen on the ground is you see, whether it be State, DOD, or USAID, looking at what the directive is, what the cut is, and coming up with scenarios about how they will manage to that. On your questions with regard to West Bank, Gaza, the Northern Triangle countries, and South Sudan, we have ongoing work in those areas. In West Bank and Gaza, obviously key consideration is all the money that goes into conflict mitigation, risk mitigation, peacekeeping kind of efforts, and we have looked at over 100 grants there that were in place for that. That program will be affected by decisions about funding cuts. Our job, and we are looking at what is the impact of those decisions on those programs. In my opening statement I talk about the importance of and the Administrator talks about the importance of getting to a point where there is an end for the need for foreign assistance. So what that means is there has to be consistency, there has to be sustainability, there has to be local capacity built up. If program decisions go on ebb and flow and ebb and flow, it really impedes the ability to get to that sustainable end for a need for foreign assistance. So we are on it. We are looking at the close down of West Bank Gaza funding, looking at that process there. For the Northern Triangle countries, we have staff in San Salvador. We have been very, very concerned with the CARSI initiative, which is the security initiative, given the flow, migration, and the real security risks that work there. We are looking at the impact of those programs on what that means for that entire region. We are also very, very concerned about the program money getting into nefarious hands. Therefore we have many of our agents out conducting fraud awareness briefings, trying to identify where the money is going, and making sure, to many of the points made earlier, that there are strong procurement, strong award protections in money that flows. At USAID alone $17.6 billion goes into awards per year. We have got to get this right. So the final point that I would make is that oftentimes while there is a cut in funding or there is proposals for cuts in fundings, some of these programs have long pipelines. They have money that is still in them and that the programs will continue to go on. That is why we keep our eye in that area. Those funding cuts doesn't mean OIG out, it means OIG in even more. So we are on the programs in those regions. We are going to look at the effect of any type of drawdown, we will look at the pipeline of funds, and hope to assess have we lost the ground that our good investment up to this point has provided. And it goes to my top management challenge about sustainability. Mr. Price. Thank you. I think what we have heard is very important, Madam Chairwoman, about the kind of analysis that needs to be done, of course of these programs effectiveness in general, but the effects of draconian cuts of the sort that have been made, just in the middle of the fiscal year all the money stops. Of course it doesn't immediately stop on the ground. But our understanding is that it is pretty well having a detrimental effect now in both in Central American situation and the West Bank, Gaza situation. I think we have discovered on this committee that we don't have perhaps as many options as we thought we did when this kind cut comes down in the middle of the fiscal year. The chairwoman, to her credit, has written our bills for next year in a much tighter way, in a way that will not permit the administration to be as fast and loose with this funding as they have been. But in the near term, not so clear, not so clear what our options are. But your assessment is extremely important to us at this moment as we contemplate this and also go forward. The Chairwoman. And I know this issue is of great concern to members on both sides, and so we will continue the discussion. Mrs. Roby. Mrs. Roby. Thank you, Madam Chair. And thank you both for being here. And Inspector General Calvaresi Barr, I am going to read directly from your testimony before I get to my question. ``Our work continues to show that USAID's upfront analyses of multimillion dollar projects fall short of fully assessing beneficiary countries' internal controls, environmental threats, and ability to strengthen local skills and secure public- or private-sector commitment to sustain U.S. efforts. In addition, we identified gaps in USAID's ongoing monitoring and evaluation that limit its ability to apply past lessons to better ensure sustainability of future development efforts.'' To the chairwoman's comments earlier about Afghanistan, I have had the privilege of going with my colleague Susan Davis from California on a bipartisan women's CODEL, now eight times, around Mother's Day. What is unique about this codel is not only do we spend time with our troops and encourage them and be with them and hear about their challenges, but also what is unique about this codel is that we get to spend a lot of time with Afghan women and folks from USAID that are administering programs. My concern is that the purpose of the initiative which has been in place since 2014 to promote women in the Afghan economy, to provide a new generation of Afghan women with leadership skills to make contributions to their government, society, economy, and I enthusiastically support the mission of these programs, but what I am concerned about is the metrics by which we are assessing the success of these programs. So it is one thing to say, Madam Chairwoman, that we have enrolled X number of women in school. It is another thing to say, okay, well, where are they now? How are they contributing to the Afghan economy? What are the reasons that they--if we have a job placement program and these women are able to either work in security forces and be trained effectively or have a job, a small business startup, whatever it may be, if they are removed from the workforce, what are the reasons why? If an Afghan girl is in a school and she is given the opportunity for an education, what happens to her next? And do we have the appropriate metrics in place--and I don't know that we do--to assess the contributions and the success of these women or the instances in which they were unable to continue either in their education efforts or in their support of the economy? So if you would address that. I know that is a very specific question to Afghanistan. I think you could apply it around the world, although the challenges are different based on what country we are talking about. But I have real concerns as a member of this committee as to how we are assessing outcomes as opposed to just enrollment. If that is a real simplification, I understand. But if you could address that for me, I would really appreciate it. Ms. Calvaresi Barr. Sure. Thank you very much. Let me begin by saying that our office has covered the waterfront of work from both an audit perspective and an investigations perspective in Afghanistan. If I could start just by saying a little bit about that. We have looked at--and it gets to the heart of your question about metrics--monitoring and evaluation, whether it was on the Afghanistan Reconstruction Trust Fund, whether it is on the New Development Partnership work that they have that you have to prove that you have done what you have done in order to receive funding for program sustainability going forward, and we continue to look at that. We found significant deficiencies in the ability to measure, the ability to monitor, and really show the types of outcomes that you are talking about that should be achieved. On the investigations side of the house in Afghanistan, these are challenging environments to work in and the programming does cut across the gamut, right, of what populations like this are in need of. I can tell you, our investigations work in Afghanistan has uncovered corruption and fraud to such a great scale just in the public utility power industry. Our work resulted in the removal of the Ministry of Economy and the CEO of that public utility company. Our work on AUAF with the Special Inspector General for Afghanistan Reconstruction has pointed to weak systems to be a good recipient of U.S. taxpayer money which has been invested for a long time there resulted in an administrative agreement to make sure AUAF gets its house in order. With all of that said, we look at those programs, we look at other programs regarding health, education, women's empowerment going forward. And I think you are right when you say, and we read this in the press oftentimes and we find it in our reports when we do it, when they talk about success there could be disagreements on the measure, how successful or how bad, and we sort of see it all over the map. So it definitely goes to the heart of needing to have for these programs right up front what is important, what is the goal of the program, what is it that we are trying to measure. If these programs are about building capacity and sustainability, we don't just look at the number of women that were educated, we go beyond that. We look at how has that resulted in a different state of living for them, job opportunities for them, security, a whole range of things, and we found that those metrics are often missing. The Administrator has, I want to get this point in, has recognized the importance of metrics, he is very metrics driven, and you are seeing now in many of the programs that are being rolled out on his journey to self-reliance, he makes sure--he wants to make sure that those metrics are established correctly in the first place. Mrs. Roby. And I appreciate that. And, Madam Chair, if I may, I would appreciate any detailed information that you can provide specific to programs for Afghan women and girls. And I want to see the good, the bad, and the ugly, anything specific that you can drill down there for me. I would appreciate that. But, Madam Chairwoman, I would just say, I express your concerns on an abrupt drawdown. And I think part of what we are hearing right now is the ability to assess a lot of these dollars that are being spent on behalf of Afghan women and girls has to do with the security situation and our ability to get to certain parts of the country where it is volatile. We have made tremendous gains, but it is extraordinarily fragile. And so it is very important that as these dollars are being implemented, that this committee takes a keen interest on these metrics and the success, not just of who is being enrolled and how many are being enrolled, but following those women and those girls throughout their contribution to the country. So thank you very much, and I look forward to continuing to work with you. The Chairwoman. Thank you. And I look forward to working with you and following up. Thank you. Ms. Meng. Ms. Meng. Thank you, Madam Chair and Ranking Member Rogers, for holding this hearing. I wanted to ask Mr. Linick a question. Just yesterday our subcommittee held a hearing in which one of the witnesses was John Lansing, CEO of USAGM, who testified that the purpose of Voice of America and other USAGM programming is to provide those who live under corrupt and nondemocratic regimes access to unbiased and accurate reporting. These programs are critical to our soft power all around the world, but have a very important role to play in restricted countries like Russia, Iran and Cuba. USAGM has proven to be riddled with corruption and grift. A New York Times article just on Monday reported that a high ranking adviser had been found guilty of stealing $37,000. The same report noted that reporters have accepted bribes from foreign officials and have faked new stories. This undermines the whole purpose of USAGM. I wanted to know if your office will be investigating these issues. Have you looked into them? And what underlying management concerns do you think exist in USAGM that might contribute to such negligence? Mr. Linick. Thank you for the question. The individual you mentioned who stole $37,000, that was our investigation, it was an OIG investigation, and we presented it to DOJ who ultimately prosecuted that individual, the chief strategy officer. We oversee USAGM and through that Federal entities who receive money, as well the grantees, as well as the language services. So we are involved in overseeing USAGM in a very broad sense. We oversee them through inspection--excuse me-- through investigations, through audits. On USAGM, we have focused on governance and resource management, as well as misconduct, as I previously indicated. And with respect to USAGM, since that was the focus of your question, in terms of resource management we have found a lot of issues over the years in our management challenges. We have identified that IT has been ineffective, their information system, they have deficiencies in all the major domains that we look at. We found problems with property and accounting and hiring practices. So they span the gamut of issues. I will say on the governance front, though, we did a report in 2014 where we looked at the board. We found that the structure, the then structure, was dysfunctional. It was a part-time board. At the time there were chronic vacancies, there was no CEO managing day-to-day operations, and there were perceptions of favoritism because folks who were on the board were also sitting on some of the grantees boards, and then there was a perception that they steering their favorite grants to the grantees. Mr. Linick. Since then we made a number of recommendations. We recommended that there be a full-time CEO managing day-to- day operations. There has been a law that since passed for a presidentially appointed CEO and an advisory board. We did assess that recently, and we did find that they are on the right track. In terms of governance, we found that the board was cohesive and collaborative, that they have eliminated the perceptions of favoritism because all of the board members now sit on all of the grantees, so they weren't cherry-picking. We found there was increased use of digitization and media, social media, YouTube, things like that, and the editorial independence of the grantees and the Federal entities were being respected. So that is sort of a big--an overview of our work over the last 5, 6 years. Ms. Meng. Thank you. I appreciate all that information. I would just ask that your office stay on top of this. Yesterday, when we asked him, he didn't, to my memory, mention any of this. He mentioned reshifting or improvement in personnel allocations, for example, but didn't really mention IT, accounting, or even board issues specifically. So I would look forward to continuing to look into this. My second question, if I have some extra time, is for Inspector General Calvaresi Barr. Over the last 2 years, your office has investigated failures in the contract administered by USAID and implemented by Chemonics. This contract, as you know, was intended to support the Global Health Supply Chain, is worth $9.5 billion, and was the largest contract ever awarded by USAID. And, according to an October 2018 advisory published by your office, this contract experienced major delays in the delivery of health commodities and was exposed to vulnerabilities related to commodity tracking, supply chain data access, reporting, commodity inventory access, labeling, and other issues. At the time of the memo's publication, your office was encouraged by increased engagement between the bureau and Chemonics. So I wanted to find out what types of safeguards might be in place to ensure that this doesn't happen again. Do you believe that the aggressive oversight required over contracts of this size is possible? Ms. Calvaresi Barr. Yes. Thank you. I thank you for that question. This is a very, very large contract at $9.5 billion and being an IDIQ at that. Let me begin by pointing to some of the risks that we found in that realm of that contract and the work, which is on the Global Health Supply Chain in Africa. There we have uncovered a number of risks with regard to the logistics as we know that is happening with those commodities in Africa, the storage, the facilities of those, the recordkeeping of those. Our work has resulted in, as a result of weaknesses in the Global Health Supply Chain, has resulted in 41 arrests, 30 indictments, and has prompted the Global Health Bureau to have a third-party monitor overseeing the programming for health supply commodities within Africa. Our work spanned eight countries. So that raised an eyebrow, right? The investigation's work points to the effect of something gone wrong. That is the effect. Now my office is engaged in trying to figure out, why is that happening? What are the root causes of it? So you may be pleased to hear that we are looking at--we are doing two audits going forward. One is we are looking back at the contract and how it was awarded. So that is the first audit. The second audit that we are doing is, because of those weaknesses that we have uncovered in the supply chain, we are following up to look at, how have those weaknesses been addressed? What is being done different from USAID's perspective in terms of its oversight of the contract and that work? But we also have to look to, and it gets to an issue we discussed earlier about capacity of some of these host countries. So I don't want to paint the picture that all these problems that we found necessarily rely--or lie with Chemonics. But when you are transferring funds and supplies that are very, very needy and very valuable, particularly in Third World countries, you need to make sure that the host government has the capacity to receive them, to do their own inventory controls, has strong internal controls. So when we look at this and we dissect this, we are going to look at the contract and how it was awarded, because we, too, have concerns about award management at USAID, and we are going to peel that onion back. But secondly we are going to look at the weaknesses that we found through our investigations, which are eight countries, and again, those numbers are 41 arrests, 30 indictments, and there is more that go on as a result of that. We are going to look at how well those weaknesses are being addressed in terms of local capacity, the implementer's responsibility, as well as USAID's effectiveness at overseeing those. Ms. Meng. Thank you. The Chairwoman. Thank you. We look forward to your report, and thank you for addressing the issue. Mr. Fortenberry. Mr. Fortenberry. Thank you, Madam Chair. I appreciate your willingness to hold this important hearing. Thank you for joining us. I am going to make some broad comments that can apply, have multiple levels of application. I hope my colleagues will agree. I think these hearings really ought to start with some type of schematic, map, diagram of your overall authorities drilled down into agency and programmatic levels. Now, at USAID and State, that might fill this wall over here, but it will make it--take these important discussions, but can tend to be abstract or so narrow that they are not generalizable to the bigger principles that we ultimately have to legislate around, which are policy perspectives, mission ideals. And in that regard, I want to ask you, Ms. Calvaresi Barr, regarding two questions. Regarding the reform plans that are underway at USAID, one particular point is this, that there is an attempt to implement a new risk management approach that will look at the most significant impact, what programs have the most significant impact. In other words, how well foreign assistance actually works under certain scenarios, what are the templates. That, to me, is the most important question here. Secondly, I want to turn to the migration of the Overseas Private Investment Corporation to the new International Development Finance Corporation and hear your perspective on how that is going, with particularly one question--and I think, Madam Chair, at an earlier hearing you tasked me with this, and I think it is very important: the equity investment question that is developing at the International Finance Development Corporation, how we are going to leverage our limited funds potentially into equity investments with private sector partner to achieve the very goals of the earlier OPIC mission in a more substantial way. Are you familiar with what I am talking about there? Ms. Calvaresi Barr. I am. Mr. Fortenberry. Okay. Good. Ms. Calvaresi Barr. Okay. All right. Thank you. Let me begin with sort of enterprise risk management and the importance of that, and it has a couple of different legs to that stool. So when you think about risk management, you have to think about when you are investing in these countries, and for the most part where USAID space is. We are going to be investing in countries that we know might not have the strongest foundation from a financial, internal control, procurement, or legal perspective. Mr. Fortenberry. So we tend to measure outcomes by how much money we have spent and what our intention is. Ms. Calvaresi Barr. Yes. Mr. Fortenberry. I recognize what you are saying, that the risk factors are compounded given the nature of certain---- Ms. Calvaresi Barr. Yes. Mr. Fortenberry [continuing]. Weaknesses of systems in other places. It is the very point of the assistance in the first place. So we have to tolerate in a nontraditional sense-- -- Ms. Calvaresi Barr. Absolutely. Mr. Fortenberry [continuing]. A different type of risk profile. But the question is, what really works and is sustainable over the long term? Ms. Calvaresi Barr. So I think what---- Mr. Fortenberry. And then can be lifted as a template elsewhere. I am sorry to keep giving you speeches, but the reality is we direct country by country different types of things, and so the job is made all the harder to find a standardization of template that actually works, but I thought that ought to be the goal. Ms. Calvaresi Barr. Yes. So, again, starting with the point of recognizing the environment that you are working in, you have to factor that in when you are talking about, so what are we getting out of this, right? You have to factor in, these are the problems, and you have to plan accordingly. What are the risks that mitigate those? That is what the Administrator is focusing on now. Where there are successful models, and if I can sort of segue to your second question on OPIC and the DFC going forward, I think there is a general recognition, and it is part of the USAID's look forward, that leveraging private capital for foreign assistance is something that needs to be done and needs to be part of the equation. Not just the U.S. coming in, putting money in, because we oftentimes find, and our work has found, as soon as we leave, then what happens? You know, long afterwards those investments go down. Mr. Fortenberry. If I could interrupt you. I think we really need to be careful with our language. Foreign capital investments. That implies--that has certain implications to it that sound very remote from the poorest of the poor, and yet it is not if we talk in the right types of language, that using the mechanisms of lending and capital, even on a micro scale, actually can be very empowering to people who are in very vulnerable circumstances and lend itself to long-term sustainability versus just writing a check year after year. Ms. Calvaresi Barr. Yes. Mr. Fortenberry. So I am just giving a little note of caution because the language of Western liberal economics in speaking of these abstract ideas of capital don't necessarily relate to the mission structure of what we are trying to do through USAID to help persons in very vulnerable circumstances. So there is a task here--this is way beyond you, but you have got me talking now--there is a task here to update vocabulary as well when we talk in terms of both the implementation as well as the review of this. So just a little note of caution. Ms. Calvaresi Barr. Okay. No, that is fine. And I was referring to the DFC and the establishment of the DFC as a way to sort of make us a player in that global platform, to leverage that capital for these organizations going forward. Let me get to that specifically because I know that you are interested in that. We have done two audits now with regard to OPIC as it stands now. We looked at OPIC's goals and successes in producing energy in that sector in Chile. As a result of that, we found that there were problems with this, not only in the policies and the processes, but they weren't reaching the end goals that they had hoped to through that programming. Our auditors then said: Why is that? What is getting in the way? Why aren't they doing this in Chile? As a result of our deeper dive into it, we found systemic issues with OPIC's internal controls. And you look at what the FAR calls for, some of the most basic things were not in place. We had a number of recommendations, I think 16 to be exact. Two have been closed so far. So we have a ways to go. We just released a report actually today where at the request of this committee looked at OPIC's compliance with appropriations requirements, and that report essentially found the same thing that we noted in the Chile look, which is that the internal controls need to be fixed. And if I might say, before we go to the DFC model, those are issues that should be worked on now before the transition occurs. [The information follows:]In fact, the audit report made 16 recommendations. All recommendations were open as of July 11, 2019, but OIG had received and was evaluating a request from OPIC to close two of them (recommendations 12 and 13). As of July 18, the two recommendations (recommendations 12 and 13) have been closed and 14 of the 16 recommendations remain open. Mr. Fortenberry. Okay. So that is helpful. But I think it needs to lend itself again to the sense of mission of what we are trying to do here with the Development Finance Corporation in terms of a new mechanism of leveraging moneys that are out there that actually will create the outcomes we are achieving potentially with less cost and better penetration and better continuity for the long term. So I am asking you to do something that may be beyond the mission of your own organization, is to not look at this in terms of punitive, problematic notations that are found in an audit, but saying, okay, these are the challenges that we need to build into the program as it transitions to something else based upon learned experience. Ms. Calvaresi Barr. I think we share the same concern and I think we are sharing the same language. DFC, we want to see that succeed. Any system that is in place, it goes to our top management challenge four, that has fundamentally flawed systems, such as internal controls, OPIC will be part of the DFC, that needs to be remedied. So that success and that hope that is there for the DFC can be addressed. So these aren't minor issues, these are systemic issues that, quite frankly, are substantial and need to be addressed. Mr. Fortenberry. Madam Chair, there is not a member that has gone to visit Africa that doesn't come back and say: China is everywhere. What are we doing? And here is a big part of the answer. The Chairwoman. Thank you. Mr. Fortenberry. Thank you. The Chairwoman. And they are here with their own people. Mrs. Torres. Mrs. Torres. Great questions. And thank you for covering that piece. Thank you both for being here. I have spent the majority of my life in public service addressing issues of public corruption at many levels, from the local, State, and now at the Federal level. And as you both know, there are many layers associated with that, and not all of it includes money exchanges. Some of it comes in different forms. I would like to follow up on Chairwoman Lowey's question on your investigation into political retributions. The State Department strongly supported the International Commission Against Impunity in Guatemala, known as CICIG, since it began operations in 2007. However, between 2017 and 2018, the Department's policy changed. It is unfortunate. It pushed for reform, CICIG, and did not object when the Government of Guatemala took a number of aggressive actions against the commission and its staff. Did you look into what role political appointees at the Bureau of International Organizations, including Mari Stull, played in changing the Department's policy toward CICIG? Mr. Linick. No, we haven't looked at that issue. We may have received an inquiry about CICIG some time ago and I would have to get back to you, but that particular question we did not look into. Mrs. Torres. I hope that you will look into it in the future. CICIG is in the process of being completely shut down. It will be at the end of this month. It is not surprising to me that we have so many people from Guatemala fleeing at many different levels. Not only have Department employees worked against improving conditions there that I think have resulted in the number of more migrants fleeing the area in our southern border. So I hope that I can follow up with you, whether it is here, in a private meeting, in a classified briefing, but I think it is something that we need to seriously look at. My other question it relates to the lines, blurring the lines of political corruption. I understand that Secretary Pompeo has been traveling quite a bit to the Midwest, including to Kansas. I also understand that he may be considering a run for a Senate seat in Kansas. I am concerned that the Secretary may be using official resources for political purposes, which would not only constitute a possible Hatch Act violation, but also would fall within the Inspector General's mandate to investigate waste, fraud, and abuse. Have you looked into the Secretary's travel to Kansas? Mr. Linick. We have not. We will look into any credible allegations of misconduct, and happy to work with your staff if you have information about that. Mrs. Torres. If someone is looking to run for a political office and specifically taking certain trips to boost their profile within that State, I think that that is something that you ought to be concerned, since this is your area that you oversee. I am a fan of USAID. I have been in the trenches with them throughout the Western Hemisphere. I am very concerned about what is happening with the personnel. They are understaffed. They are stressed. They have very little resources. As it relates to the Northern Triangle, cutting off humanitarian assistance with partners that they have worked with in the region for several years now, I am very concerned about what will happen to those programs and how that will continue to impact our crisis at our southern border. So I hope that you will continue to pay special attention to that, and you will come back to our committee with some real ways that we can address that for the future. Ms. Calvaresi Barr. As I mentioned, we have staff in Salvador and both on the audit side and the investigation side of the house. We continue to monitor the programs that are being funded in that region and particularly concerned about the security aspects of this. And as long as the programs are continuing and up and running, there is always a place for the IG's office. So we are there in full force. Mrs. Torres. My glass is always half full, and as it relates to El Salvador, they have a new President who seems to really be taking the issues of public corruption there seriously. He seems to want to work with everyone who is able and willing to help him address those issues, the issues of security within the region. I hope that we don't let this opportunity go to waste. I think that if we had been a little bit more willing to assist Morales might have not gone sideways in Guatemala as he did. So, with that, Madam Chair, I yield back. The Chairwoman. I am going to turn to Mr. Rogers, but I just wanted to follow up with Mrs. Torres' comments, because it seems to me throughout the course of this hearing you are doing the reports. The question is, what is the executive branch, what is the Secretary of State doing? Is there any response? Does anyone care? And this is the challenge for all of us. You are doing the reports. We are getting the information. My colleagues mentioned West Bank and Gaza. We see dozens of examples where there aren't people in responsible positions who can make these changes. So I am going to turn to Mr. Rogers now, but I do hope that we can follow up and make sure that this isn't just a hearing telling us that you are doing your job. But the question is, who are you reporting to and what are they doing about it? Mr. Rogers. Mrs. Torres. Madam Chair, can I interrupt for a minute and ask for unanimous consent to enter two articles to the record that specifically relate to the questions that I was asking? The Chairwoman. Thank you. Of course. So be it. [The information follows:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] The Chairwoman. Mr. Rogers. Mr. Rogers. Mr. Linick, a recent audit of the State Department's Directorate of Defense Trade Controls, the office that is responsible for licensed exports of defense items, articles, the audit revealed that the Department does not have a standard training program for embassy officers who conduct those end use checks on U.S. weapons sold abroad. Why would the Department charge foreign service officers with the responsibility of end use monitoring, a program to prevent the unauthorized acquisition or use of U.S. military articles and technology, without having required training in that subject prior to a posting overseas? Mr. Linick. That is a great question. That particular report, not only wasn't there sufficient training for this end use monitoring, but we found that, as a result of staffing issues at the time, the Department lacked certain internal controls to assure that applications that were made for arms contained proper information and accurate information. We looked at 21 applications; 20 of them were approved without the required information of them. We also found, as a result of lack of staffing, that the Department wasn't providing certifications to Congress as it is required to for arms exports over a million dollars in about 17 export deals. Again, this was really a function of a staffing issue at the time, and I would assess that the reason there wasn't the training was because of a staffing issue. I am not sure. You would have to ask the Department. But clearly there were some problems. I understand now that they have remediated those concerns and have addressed our recommendations. Mr. Rogers. Well, security assistance is a substantial enterprise, DOD and State providing about $18 billion annually, of which $8 billion are State Department funds. DOD, the Department of Defense, has started workforce reform requirements which was mandated in the 2017 Defense Authorization Act, and they continue to build an enhanced school for security cooperation training. State does not have any such place to my knowledge. Is that correct? Mr. Linick. I am not sure about that. Clearly, if they don't, this might be a good model for State, but I would have to get back to you on that. Mr. Rogers. Well, it is important that we protect American military secrets and equipment, and we need people who have training to oversee and watch that practice and the embassies of the countries where these items are to be shipped. Do you agree with that? Mr. Linick. I agree. Mr. Rogers. Madam Chair, I yield back. The Chairwoman. Mr. Price. Mr. Price. Thank you, Madam Chairman. Mr. Linick, I want to raise a case that has recently come to light about a State Department intelligence officer who was apparently blocked by the White House from submitting written congressional testimony. On the way to asking you about that, let me just back off and say, to the extent you can kind of translate our discussion today into some specific statistics that would put a finer point on some of the management challenges, I want to request that you do that. Maybe you know some of this off the top of your head. I liked Mr. Rogers' understatement that we have a management shortfall here that we have dealt with for years. Secretary Pompeo took office a little over a year ago. He has made claims to the effect that a lot of this management shortfall is being dealt with, that the appointments, senior appointments are being made, that morale is up, that diplomacy is again being respected. I wonder what kind of specific figures do you have. How many ambassadorships are unfilled, for example. Mr. Linick. I don't have that---- Mr. Price. How many---- Mr. Linick. Go ahead. I am sorry. Mr. Price. How many are unconfirmed? How many are not named? Do you have that figure actually? Mr. Linick. I don't. I mean, you would have to ask the Department. I don't know. I don't keep a running tally of that. Mr. Price. I think that is a legitimate request of the IG's office, that you could provide that kind of basic baseline information. What about the pace of retirements? Mr. Linick. I don't have that information. Again, the State Department would have that. Mr. Price. All right. Well, I am asking you if you could get that information and furnish it to us. The morale is harder to get at, but surveys are taken about morale in one Federal department or another or in all the departments. Do we have information about any kind of measures of morale levels? Mr. Linick. Well, we are about to--we are finalizing a report on the hiring freeze and it does get at that issue. I am not in a position to sort of report on that now. But I can tell you, based on our inspections at posts, I mean in terms of the hiring freeze, that did have an impact on morale around the world. Mr. Price. And there are other possible measures that I am not thinking of, I am sure. But, Madam Chairman, I think one way or another we need this basic information about the progress we are making or not making on these very serious management challenges. I think we need that for our hearing record. So one way or another we ask you to help us get that information. Now, let me ask you about an extraordinary case that just comes to light recently in news stories. Ron Schoonover, who worked in the Bureau of Intelligence and Research's Office of the Geographer and Global Issues, spoke before the House Intelligence Committee on June 5 about the security risks the U.S. would face by virtue of climate change. But now, apparently, the White House has said that he can't submit the Bureau's written statement that climate impacts could be possibly catastrophic, quote, possibly catastrophic. Now, the State Department, apparently, stood by Mr. Schoonover, but the quashing of his testimony came from three divisions of the White House: Legislative Affairs, Management and Budget, and the National Security Council. In the meantime, the chairman of the Intelligence Committee demanded that the heads of two Federal intelligence agencies provide documents about this incident, the Bureau of Intelligence and Research and the Office of the Director of National Intelligence. Neither of them have complied. I am not necessarily asking you to comment on this specific case, but I do want to ask you if this is the sort of case that you and your office would attend to. I mean, this isn't just a policy disagreement, this is a quashing of testimony to a congressional committee. How does a case of this sort come before you? Mr. Linick. So, I mean, our jurisdiction, obviously, extends to the Department's programs and operations, and when we assess whether we are going to do work, obviously, we cannot do programmatic or policy work, we don't have oversight over the White House. But what we do is we look to see whether there are any rules. And I don't know, I haven't studied this at all, and this has not come before me. Are there criteria? Are there rules? Are there Foreign Affairs Manual violations? Are there regulations that have been violated? That is sort of how we do our assessment. I can't comment as to these particular facts. You know, whether we would play a role in this depends on the answer to those questions. Mr. Price. Well, I will ask you to take a look at this. I will ask that [inaudible] Story from the July 10 Washington Post be put in the record. But in the meantime we would appreciate your attention to this and advising us as to what your role---- Mr. Linick. Sure. Mr. Price. Thank you. Thank you, Madam Chair. The Chairwoman. Thank you. I just want to close on what I think is an issue that has been brought up by many of my colleagues, and I know we share a serious concern. Now, of course, this bill has not been through the Senate. We hope one day soon we will be able to conference. But we have appropriated in our bill $56 billion. That is a lot of money. And I know my colleagues take that responsibility very, very seriously. Mr. Linick, your office has identified that the oversight of foreign assistance funding is a recurring challenge and noted in both 2015 and 2017 that the State Department's core financial management systems were not designed to track and report on foreign assistance funds. While both State and USAID have improved their financial management systems over the years, accuracy and transparency around how appropriated funding is spent is paramount. And I want to make it very clear, we just can't tolerate waste, fraud, and abuse. It becomes a cliche because we talk about it so much. But we all take this very, very seriously. It is our responsibility. So maybe you can tell me what improvements has the State Department made to track and improve the management of foreign assistance programs since these reports were issued? Is this a problem, a result, or representative of any systemic management issues? And can the State Department both track funds at the project and country levels and manage projects effectively? So, for me, I have been on this committee for quite a while, I just don't get it. Both of you can respond. This is your responsibility. How can you say you can't track the funds? I know it is difficult in many of these countries where wars are going on, disease abound. But it seems to me if we can't keep track, how can I, as the chair, continue to argue for increased investments in foreign aid? Take turns. Mr. Linick. You make a very good point. We have identified this problem, and they cannot still track by program, project, sector, in a management friendly way or in a way which would give them the kind of data to make important decisions about foreign assistance and how unspent fund are used. The Chairwoman. Do you accept that? Mr. Linick. I think it is unacceptable. The Chairwoman. Good. Mr. Linick. And we have done two reports already and we are going to follow up on this. I mean, they have made modest improvement. We have basically said: Look, you need to, one, identify the data that needs to be collected, and they have. But that is only the first step. They need to harness the data. And this is a long expensive project, so it is not something that can be done overnight. And the second thing is it needs sustained leadership to drive implementation of this. They have designated the F Bureau as the designated sort of bureau to lead this. The problem is there has been an acting--back to your original question--an acting director of F, and there hasn't been a lot of sustained focus on this particular issue. So while there have been improvements, there is still a lot of work that needs to be done. The Chairwoman. Would you like to comment on it as well? Ms. Calvaresi Barr. I would be happy to comment on that. I want to say, this goes to the heart of our fourth top management challenge, which is addressing vulnerabilities in financial management and information security. You are right in saying that the, in the case of USAID, has made improvements over time. There is only one material weakness that is left with regard to fund balance reconciliation between the books at USAID and that with Treasury. And it may take too long to go into those distinctions about that $235 million that hasn't been able to be reconciled, but we are happy to report that for the amount that can be reconciled, which is slightly over $100 million, they have made tremendous progress in getting that reconciliation figured out, and that amount is down to $60 million now. The problem and why this happened is because of legacy systems. A hundred missions around the world, legacy systems, different data dictionaries, different migration tools. They have now adopted a controlled system known as Phoenix to track their financial management, their programming as it goes out. They have new tools in place which are cash reconciliation tools. So we are hopeful that these kinds of balances or inability to track the funds will be addressed with some of these changes. But I am here to say we, again, are on that, we do our annual financial statements work every year and we drill down on the issues there. And there still remains that one material weakness, but from when I started to where we are today, at least we are down to one material weakness. So we will be diligent about overseeing that, to your point and to your concern. The Chairwoman. Well, let me just say on behalf of Mr. Rogers and myself, we take our responsibility seriously. We lead this committee because we really care about the work that this committee does. And we are passionate about making sure that this money is spent effectively, as it should be, around the world. And I would like to follow up with you in a month. I would like to know how improvements have been made. As far as I am concerned it is just unacceptable. If I go into a meeting and I am arguing for $58, $56 billion, that is a lot of money. And I am not sure how we are going to end up in the Senate. But, frankly, it doesn't strengthen our case in helping people who desperately need our help in the world. And, to me, that is what the United States of America stands for and is all about. So I hope you can follow up with us. We intend to follow up with you. And as far as I am concerned, if we can't account for the dollars that are spent, it makes it difficult for us to appropriate. And if all these open positions remain open, then it makes your job even more difficult, because who is doing the work, who is doing the oversight, here or around the world? So thank you again for testifying. This concludes today's hearing. The Subcommittee on State, Foreign Operations, and Related Programs stands adjourned. Thank you. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] [all]