DearColleague.us

Letter

Sending Office: Honorable J. French Hill
Sent By:
Dylan.Frost@mail.house.gov

Dear Colleague:

I invite you to cosponsor my legislation which would allow the Secretary of the U.S. Treasury to waive counterproductive voting mandates at International Financial Institutions (IFIs) on a case-by-case basis. Providing this authority will enable the United
States to better pursue its foreign policy goals and enhance international cooperation. 

The U.S. leads the governance of the International Financial Institutions, which include the World Bank, International Monetary Fund, and regional development banks. Over the years, the IFIs have become subject to legislative mandates that dictate which
projects and policies the United States can endorse. The mandates can sometimes be outdated, incongruous, or in conflict with other U.S. priorities, and can inhibit the IFIs’ effectiveness.

For example, if the World Bank votes to approve a lending project to expand clean water access in Africa, the United States might have to abstain or vote against it due to outdated legislative directives that may no longer advance our national interest or
cooperation with our allies. This can end up isolating America in a way that prevents us from negotiating better projects and stronger results. By allowing Treasury, which has oversight over the IFIs, to waive certain mandates, the legislation allows Treasury
to properly perform their required functions and gives our nation the necessary ownership over important financing decisions to help us collaborate with our allies more effectively.

Each time the Secretary exercises his ability to waive a mandate, it must be reported to Congress with a detailed explanation and a certification that the waiver does not undermine the United States’ ability to promote the mandate’s policy objectives. This
ensures that Congress’s intent prevails, even when a mandate is waived.  The bill also requires Treasury to review the existing legislative mandates and submit to Congress within 12 months of enactment recommendations on how to streamline the mandates. The
waiver authority is a pilot initiative that will sunset after two years so that Congress can assess its effectiveness in advancing U.S. interests. 

If you are interested in cosponsoring or would like additional information, please reach out to Ashley Gunn, Senior Advisor, at
Ashley.Gunn@mail.house.gov.

Sincerely,

 

French Hill

Member of Congress

Related Legislative Issues

Selected legislative information: Finance, Foreign Affairs

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