▶ 0:00:35There we go.
▶ 0:01:48Committee on Foreign Affairs will come to order. I would ask everybody to rise. Join me in reciting the pledge of I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.
▶ 0:02:29Welcome everybody. The purpose of today's hearing is to examine how US economic statecraft can secure critical supply chains, strengthen America's industrial base, and support leadership in strategically important sectors such as critical minerals, energy, advanced manufacturing, artificial intelligence, and other emerging technologies. And I would now recognize myself for a brief opening statement.
▶ 0:02:58I want to thank you, Mr. Black, Mr. Hardy, and Mr. Petri for being here This Congress, our committee has spent a great deal of time focused on a simple but urgent challenge. The United States cannot remain dependent on China on any front. It makes no sense at all or any other adversary for that matter.
▶ 0:03:22for the materials, technologies, energy, and infrastructure that power our economy, keep our military ready, keep our supply chains going. It makes zero sense to have any one dependency. We have worked to reduce those dependencies, strengthen critical supply chains, and ensure that economic tools of the United States government are fit for purpose in an era of strategic That is what makes today's hearing so important. Your work on the forefront of that.
▶ 0:03:52The US International Development Finance Corporation, the US Trade Development Agency, and the Millennium Challenge Corporation are among our most important tools of economic statecraft. Each has a distinct role. USDA helps shape projects early on. DFC mobilizes capital and moves investments forward. and MCC helps build the infrastructure institutions and enabling conditions that allow those investments to succeed.
▶ 0:04:19Together, these agencies are on the cutting edge of securing the supply chains that will define American strength in the decades ahead. Nowhere are the stakes more clear than in artificial intelligence and critical minerals. AI leadership depends on more than software. It depends on chips, minerals, reliable energy, [snorts] data centers, secure and trusted technology.
▶ 0:04:46Critical minerals underpin our weapon systems, advanced manufacturing, energy infrastructure, and nearly every emerging technology that matters. China understands this well. The Chinese Communist Party has spent decades building control over mines, processing capacity, ports, logistic networks, technology platforms. Those dependencies were not created by accident.
▶ 0:05:14They were built to give Beijing leverage over the United States of America, over our allies, and over literally anybody. President Trump's agenda recognizes that economic security is national security. He is advancing energy dominance, secure critical mineral supplies, stronger American industry, and US leadership in technologies of the future. This committee is helping carry out that agenda.
▶ 0:05:44We passed the bipartisan dominance act unanimously through the House Foreign Affairs Committee, taking bold action to align American diplomacy, financing, and partnerships around secure energy and critical mineral supply. The opportunity before us is to make these tools work better together, faster, more efficiently, and with clear results for the American people, the American taxpayers, American strength.
▶ 0:06:12China brings every tool to the fight. The United States of America will do the same and we will do it better. We will do this to win. As we all know, as Americans, we don't do anything to lose. In that, again, I welcome you all and I look forward to hearing from each and every one of you in just a moment. Our ranking member is not quite here yet. Uh but when he arrives, we will give him the opportunity to give a statement and we will be asking questions as well, as I'm sure you're all well aware.
▶ 0:06:43I would also remind everybody that other members of the committee uh may have opening statements that may be submitted for the record. We do have a distinguished panel of witnesses before us today on this important topic. Mr. Ben Black, chief executive officer of the US International Development Finance Corporation. Mr. Thomas Hardy, Deputy Director and Chief Operating Officer of US Trade and Development Agency. and Mr.
▶ 0:07:11Dan Petri, the acting chief of staff of the Millennium Challenge This committee recognizes the importance of the issues before us and is grateful to have you here to speak with us today. Your full statements will be made a part of the record and I will ask each of you to keep your spoken remarks to roughly five minutes to allow time for members And in that, Mr. Black, you are recognized for any opening statement that you wish to give.
▶ 0:07:42Thank you, Chairman Mast, Ranking Member Meeks, and members of the committee for this opportunity to discuss DFC's efforts to end supply chain dependency. I'm proud to be here today to represent the hundreds of committed professionals at DFC who work every day to advance our mission. I'd also like to thank you all for the bipartisan support of DFC's December reauthorization. Under President Trump's leadership, DFC is equipped to be a leading force for restoring US economic security.
▶ 0:08:13We now have 205 billion dollars of investment capacity and a greater ability to deploy debt, equity, and insurance across the capital stack. The FC can invest in technology, energy, and critical minerals nearly anywhere in the world and address vulnerable supply chains wherever they exist.
▶ 0:08:33Since DFC has rebuilt our pipeline to more than 340 deal opportunities totaling 78 billion dollars across agriculture, healthcare, financial services, energy, technology, and critical minerals. We are focused on regions vital to US economic security like the Western Hemisphere, East Asia and the Pacific, Central Asia, Eastern Europe, the Middle East, and Africa amongst others.
▶ 0:09:04As CEO of the DFC, I have made it my mission to transform DFC into a best-in-class financial institution. We have begun a rigorous process to value our entire portfolio dating back to the OPIC days and intend to dynamically share investment performance for all administrations both previous and future. I'm also pleased to report we have reduced investment timelines by an average of 10 weeks.
▶ 0:09:32More importantly, I have sought to align DFC's investment strategy with the enduring principles of American economic statecraft. American economic statecraft. The use of our nation's economic and financial power to guarantee our strategic interests has guided America through its greatest moments.
▶ 0:09:52Alexander Hamilton understood that strong financial institutions and the ability to produce essential goods are vital to securing America's global That tradition gave rise to the Panama Canal and later inspired the Marshall Plan, which rebuilt war torn Europe, anchored European markets to the American system, and delivered decades of stability and growth. Today, I want to highlight how the DFC is building on that tradition of success.
▶ 0:10:22First, DFC will directly challenge our adversaries in the most strategically contested sectors by financing transactions that diplomacy and private markets alone cannot deliver. Last month, we announced a monumental agreement for one of Kazakhstan's largest telecom networks to expand access to US aligned trusted service providers. We are committed to helping others adopt this model, especially in the Western Hemisphere where China's digital silk road cannot entrench its influence.
▶ 0:10:51Second, DFC will prioritize large capital intensive projects. Our goal is to build holistic economic ecosystems anchored to US capital markets and structured to create returns for American taxpayers and meaningful economic development for our allies. DFC's 553 million dollar loan to restore the libido Atlantic Railway exemplifies the 1.5 billion DFC has committed across Africa since my confirmation.
▶ 0:11:19This vital transportation corridor connects the mineral-rich Democratic Republic of Congo through Zambia to the port of Libido in Angola. DFC financing will help establish a western aligned source of critical minerals and also strengthen local trade by reducing the cost of shipping by as much as 30%. Throughout human civilization, industrialization has been the single greatest force for lifting people out of poverty.
▶ 0:11:46Industrial dis depends on reliable energy, a sector vital to America's interests as the world's leading producer and exporter of oil and natural gas. In June, DFC's board approved 1.5 billion for energy infrastructure across South and Southeast Asia, ensuring US LNG and American equipment help power the energy needs of a strategic region.
▶ 0:12:11Finally, we are mobilizing private capital through sophisticated financial structures that reduce risk for investors and create enduring American influence in critical sectors and regions. That approach underpins our 600 million contribution to the 1.8 billion critical minerals consortium with Orion Resource Partners.
▶ 0:12:31DFC's board recently approved an additional 900 million of financing to support Orion CMC's rapidly expanding pipeline of mining and mineralist opportunities to help address China's strategic choke holds. DFC's US Ukraine Reconstruction Investment Fund or EURF is another example. This 150 million joint fund is mobilizing private investment in Ukraine's recovery and can provide a blueprint for DFC investment in other regions vital to America's long-term interests.
▶ 0:12:59Our partners want to work with us because our model is better. America's most transformative economic partnerships were built through the power of private investment, the discipline of capital markets, and the laser focus of finance. The Trump administration's restoration of American economic statecraft will guarantee our country's success. Thank you, and I look forward to your questions.
▶ 0:13:24Thank you, Mr. Black. I now recognize Mr. Hardy for any opening statement. Thank you, Chairman Mask, Ranking Member Meeks, and distinguished members of this committee. Thank you for the opportunity to appear appear before you today. I appreciate the chance to discuss how US Trade and Development Agency works tirelessly to help end America's supply chain dependency supply chain dependency on malign from malign actors.
▶ 0:13:50USDA serves as the US government's catalyst for critical infrastructure development in emerging markets. By funding project preparation, including feasibility studies, technical assistance, and pilot projects, we infrastructure opportunities into investment ready projects that attract financing, expand opportunities for US companies, and above all advance America's strategic interest.
▶ 0:14:16We focus our work in the critical minerals, energy, transportation, and digital infrastructure sectors because they are the backbone of resilient supply chains. Africa is central to this effort. Along the libido corridor, USDA is advancing projects that support critical minerals in Angola, Zambia, and the Democratic Republic of the Congo while improving access to Angola's ports.
▶ 0:14:41Our activities span power generation, mineral processing, and transportation infrastructure. All helping to unlock investment, strengthen supply chains, and expand opportunities for American We apply rigorous standards to our work, supporting trusted partners while avoiding projects that fail to meet high environmental labor standards or that reinforce our strategic competitors.
▶ 0:15:06We are applying the same comprehensive approach in the Philippines where our support for the Luzon economic corridor includes supporting the development of 132 me railway to Subac Bay and the expans expansion of port infrastructure to accommodate larger vessels and improve ship repair operations. None of this work happens in isolation though.
▶ 0:15:29USDA prepares infrastructure projects for investments by coordinating with my colleagues here from DFC and MCC as well as XM to ensure our projects are structured to address these institutions financing requirements from the outset. For example, we are currently working with MCC to prepare strategic digital infrastructure projects for potential financing including mobile connectivity projects in Indonesia and national data center in Tonga.
▶ 0:15:57These efforts demonstrate how US tools, capital, and partnerships come together to offer trusted alternatives to strategic Two recent successes demonstrate how USDA's partnership-based model delivers results.
▶ 0:16:13In Palao, the United States partnered with its Quad allies to design the replacement of a Chinese-built mobile network with secure nationwide with the secure nationwide 4G 5G system built with trusted US technologies. USDA funded the project's technical preparation, laying the foundation for its implementation in this geostrategic part of the world.
▶ 0:16:38This project has generated exports for American companies while strengthening Palo's digital security and providing a model for nations across the Pacific seeking trusted telecommunications infrastructure. In Sierra Leon, USDA funded the initial project preparation for the country's first ever natural gas fired power project.
▶ 0:16:59That early work helped pave the way for $412 million in financing insurance from the development finance corporation as well as complemented the work that MCC invested to modernize Sierra Leone's electricity grid. Together these efforts again demonstrate how coordinated US engagement can mobilize private capital, strengthen energy security and deliver lasting economic benefits. These examples reflect USDA's broader role within the US government.
▶ 0:17:28We work closely with the Department of State, Energy, and Commerce, as well as my colleagues here to align America's national security and commercial and foreign policy objectives. By bringing together project preparation, financing, and partnerships, we help reduce supply chain dependencies, strengthen Americans industrial base, and importantly expand opportunities for American companies and emerging markets. Congress plays an indispensable role in this effort.
▶ 0:17:57We look forward to continuing our partnership with this committee to ensure the United States has the coordinated tools, capital, and part partnerships necessary to build resilient supply chains and reinforce America's leadership around the world. Thank you. I look forward to taking your
▶ 0:18:13Thank you, Mr. Hardy. Mr. Petri,
▶ 0:18:16good morning, Chairman Mast, Ranking Member Meeks, distinguished members of the committee. Thank you for holding this important hearing and thank you for your long-standing support of Millennium Challenge Corporation. MCC was founded in 2004 with a single question in mind and that is in a transparent and timelmited way. How do we work with well-governed partners to unlock growth? Growth that is good for our partners and growth that is good for the United States.
▶ 0:18:44And we do this by building large infrastructure and advancing policy and institutional reforms that jumpstart key areas of an economy. In short, MCC lays the public sector foundation for private sectorled growth. And the AY's core tenants, selectivity, accountability, greater cost sharing, increased self-reliance are exactly what this moment calls for.
▶ 0:19:11This year, we're leveraging new authority from Congress to work in a wider set of countries. In recent months, our board of directors has selected five new partners across the Indo-Pacific and Western Hemisphere. We're excited to be back working closer to home in countries like Guatemala and Bolivia and Ecuador. We're also leaning into certain sectors such as securing our supply chains.
▶ 0:19:34The number one issue that we hear about in working with the private sector is that the surrounding operational and regulatory environment can make or break a deal. And this is what MCC does best. In Mosmbique, for example, MCC is working to improve the roads in the Nala transport corridor that's going to reduce the time and the cost of getting goods to the port where things like graphite are being shipped to the United States and processed for batteries in Louisiana.
▶ 0:20:04I know USDA and DFC are engaged here as well as we're always seeking to leverage each other's work. All told, about 1.3 billion of MCC's portfolio is contributing to US critical minerals priorities. MCC's value ad isn't mining itself. Of course, we leave that to the private sector, but we build the infrastructure and regulatory environment necessary for these mining investments to be successful.
▶ 0:20:31And in this way, we can ensure American security and supply chains while also generating economic growth in the countries where we work. Zambia, for example, has not been the easiest place to work for US firms in recent years. In part because the regulatory environment isn't there. As part of MCC's compact, the Zambian Parliament recently passed a few laws to address uh constraints in the agricultural sector.
▶ 0:20:59We're seeking to replicate that approach with critical minerals. Currently working with the Zambians to updating their mining cadastra, improve their minerals regulation commission, and pursue a policy that is going to make data more transparent and accessible, which builds confidence for investors. The compact is also going to upgrade hundreds of kilometers of roads in the libido corridor. That's supporting the work that our sister agencies are doing there. So this is a complete package.
▶ 0:21:28Beyond critical minerals, we're also being much more intentional and strategic about engaging with the US private sector, trying to address barriers that they face. Given MCC's focus on addressing systemic constraints to economic growth, the agency is uniquely suited uh to be helpful here. So why MCC? Why now? Uh I had the opportunity to travel to Mongolia in May where we just wrapped up a water security compact. This wasn't digging a few wells because it is a nice thing to do.
▶ 0:21:58We built a firstofits-kind advanced water purification plant utilizing American manufactured tech from Florida that is set to increase the water supply in the capital Ulan by up to 80%. This is a young democracy sandwiched between Russia and China that wants to partner with the United States. Our project is not only generating local jobs but setting the table for private investment. Mongolia has skin in the game, too.
▶ 0:22:26They contributed $112 million to this, as well as raised their water tariff by 40% to make MCC and the US government's investment sustainable. And despite the unique challenges of delivering large infrastructure and environment like Mongolia, the project was completed on time and on budget. So, this is the MCC model in action. Uh, thank you for the opportunity to be here today. I look forward to your questions.
▶ 0:22:52Thank you for your testimonies. Uh, rank member Meeks, would you like to give a
▶ 0:22:57Thank you, Mr. Chairman, and I want to thank the witnesses for joining us today. You know, the United States International Development Finance Corporation and the Manilium Challenge Corporation, as well as the US Trade and Development Agency are important development tools. But unfortunately, the Trump administration's decimation of foreign assistance is doing long-term damage to the United States's ability to compete for critical minerals and diversify supply chains.
▶ 0:23:26USID's democracy and governance programs once fought corrupt resource management abroad, and Prosper Africa opened doors for US investment in natural resources. Gutting these programs doesn't save money. It simply sees ground to China.
▶ 0:23:46Nothing has put greater focus on the need to diversify our supply chains and make them more resilient than Trump's disastrous trade war with China. When Beijing retaliated by imposing export controls on rare earths, shipments of rare earth magnets dropped by 74% to the United States, hamstringing our automakers and other industries.
▶ 0:24:14We're all in agreement that building resilience and incritical minerals supply chains and breaking China's chokeold on critical minerals is a national security imperative. But raw minerals won't fix this. China dominates processing, not just extraction. Which is why the DFC must make processing a priority.
▶ 0:24:39Focusing on mineral extraction projects alone without resolving the rest of the pipeline will only send more profit to China. MCC and USDA should be doing the same. So, I'm concerned, as I made clear throughout the DFC reauthorization, that DFC's development mandate is being lost.
▶ 0:25:04More effort at DFC being spent on upper middle income countries rather than developing countries that need it most. It is contrary to DFC's mission. The DFC was not created to serve Donald Trump and or his family's credit line that advantages elites and brings no development benefit to those who need it.
▶ 0:25:28It is critical that we have transparency over DFC deals and oversight of US investments in critical minerals. Resource extraction is fraught work. Without good governance, it can too easily lead to corruption and fails the very countries whose resources are being extracted.
▶ 0:25:49Every dollar of US assistance, whether through USDA feasibility studies, MCC compacts, or DFC financing, must come with strong guard rails against corruption. That means ensuring that the president's family or any cabinet official cannot personally profit from taxpayer funded assistance dollars. That should not be because it is not a gray area.
▶ 0:26:17It is a clear conflict of interest and it undermines the standards America expects the rest of the world to follow. The United States helps set high standards globally and should not contribute to lowering them. The profiteering is especially gling given how much economic pain Americans are already absorbing as a result of this administration's disastrous foreign policies.
▶ 0:26:43Whether we are talking about tariffs or Trump's war of choice in Iran. So, I look forward to hearing from our witnesses about the staffing and resources they are devoting to the very real development challenges their agencies were created to address and how their work concurrently serves US foreign policy interests. And I yield Ranking member yields back. We're going to alternate uh between left and right for questions.
▶ 0:27:13Uh I'm going to begin with myself for some questions today. During my time as chairman and previous to this, I have worked to expose wasteful spending in anti-American projects funded under the previous things that were just a waste of our dollars. Uh my ranking member has said we've gutted foreign assistance. We've gutted waste, fraud, and abuse.
▶ 0:27:43and waste being the most important thing that that I think could have been done to say you're throwing away the taxpayer dollars in foreign countries sometimes with foreign adversaries. Uh the American people have to know to what benefit does that take place? None is the answer when it's waste.
▶ 0:28:08Uh, I'm encouraged that under President Trump's leadership, the State Department has turned a new page and is putting interests number one. The agencies here today have to do the same. And I want to hear about how you've turned that page. So, I would like to hear what specific changes has your agency made over the past year and a half to align its foreign investments. I'd begin with you, Mr. Black.
▶ 0:28:34uh tell me about some of the things that you've rooted out and where you're doing it better compared to the stupidity of the Thank you, Chairman Mast. So, as I was confirmed last October, um we got uh in December.
▶ 0:28:57Over the last six months, we've rebuilt the entire uh to be bigger deals that move the needle for development and really growth for our friends and allies. Uh what's really important there is large industrial projects.
▶ 0:29:16And so we've realigned in that direction to do fewer deals that bring more growth across the table and bring supply chains that are focused on getting America access to minerals that need to be processed as well as helping export US molecules both LG and oil around the world as we are the largest producer.
▶ 0:29:42Give me a country and an example. So, one of my favorite deals that we've done uh most recently uh is uh an investment in Brazil uh for Heavy Rare Earths called Sarah Verde. Um the end result of that is it has already been a financial success for the American people uh as a result.
▶ 0:30:09The most important thing is those heavy rare earths are 100% going to the United States for
▶ 0:30:17So rare earths creating a partner [clears throat] successful something that we need. I was briefed before about uh one of the other DFC projects that was done in Brazil that I believe was Is that accurate?
▶ 0:30:34That's correct. It was a bike share project from 2023 that uh unfortunately uh is a zero on returns.
▶ 0:30:45So the American people didn't get their money back on it.
▶ 0:30:47They did not.
▶ 0:30:48So you're doing rare earth something that we need again previous administration. Let's do a bike share project in Brazil.
▶ 0:30:55That is correct. Very good. Uh unfort not very good. It's not good. I'm glad you're ch turning the page. This is an example of the the crap that we're gutting out of out of these entities and uh I'm glad to see that done. I want you to give me another example. I was also briefed on uh apparently uh DFC uh decided to invest in Dunkin Donuts. Where was that?
▶ 0:31:16That was in Georgia. That would be TLI, not Atlanta. Uh it was an older project that predates this administration. Uh that was also a zero. What happened to the Dunkin Donuts?
▶ 0:31:32Uh, they were not a success in Georgia.
▶ 0:31:36I don't know. A lot of Americans love love Dunkin. Maybe the people like Starbucks or Crispy Cream or something like that instead. I don't know. But, uh, are you doing something better in Georgia? Have you replaced it with something else? Or else, give me another example of somewhere else that you're
▶ 0:31:49In the region, we are. So the only deal that has crossed my desk and gone for approval in Central Asia being Kazakhstan is a very exciting deal in as you know dating back to the first Trump administration. Uh it is our goal to bring Huawei and ZTE out of telecommunication networks worldwide.
▶ 0:32:15uh we are a we were able to agree to effectuate a rip and replace there with one of their largest telecommunications providers and put in Ericson one of the two international trusted providers the US government likes to work with and that leads to further opportunities because I will tell you this we will not invest in AI and technology in countries that run on Huawei and ZTE pipes we will do it only with countries that
▶ 0:32:45have trusted vendors in place that protect American interests.
▶ 0:32:48Well done, Mr. Black. Ranking member
▶ 0:32:54Mr. Black, I'm glad that the DFC was reauthorized last year and has a runway to engage in important projects. Uh, but I have real concerns about the DFC losing its focus as we discussed in my office and I appreciate you being there and having that dialogue and but losing his focus on development and turn and turning it into a personal piggy bank for the president and I hope you can ally
▶ 0:33:24some of my concerns about that. So, let me bring up on February 4th, the DFC formally announced its interest in putting US taxpayer money into a tungsten mining project in This is chronicled in the article titled Trump cut a billion dollar mining deal, his sons stand to profit. And Mr. Chairman, I ask unanimous consent to enter this article into the record.
▶ 0:33:54Without objection,
▶ 0:33:56Mr. black. The article notes that following a September 20 a September 2025 meeting between Commerce Secretary Howard Lucknik and the president of Kazakhstan which President Trump joined by phoned and where this deal was discussed a business venture partially owned by President Trump's sons brought a 20% stake in a company directly connected to the Kazakhstan Tonsen project.
▶ 0:34:26So, Mr. Black, simple yes and no. Do you know about this project's ties to the president and secretary of commerce's family before submitting the DFC's letters of interest into it?
▶ 0:34:41Ranking member Meeks, we have to take a step back. this project that you're discussing. I just wanted to know whether you know about you know this
▶ 0:34:52this project LOI
▶ 0:34:54the LOI which is in the public sector a letter of interest not even as it's a non-binding interest was in June 2025 a conference prior to my confirmation by all careers all career staff signed this
▶ 0:35:13I'm not accusing you of anything in July know about this conversation and the connections to the secretary uh and the president's family.
▶ 0:35:24Sir, what I was trying to lay out is the DFC has a multi-pronged investment approach. It starts with careers. The LOI was in July of 2020.
▶ 0:35:33You don't have to explain that to me. I only have five minutes. I understand all of that. The question is simply, did you know about the phone calls or the connections uh with the president's sons uh and the secretary uh uh prior to uh submitting the letters of interest? Because you submitted the letters of interest, right,
▶ 0:35:54sir? I was confirmed in October of 2025.
▶ 0:35:59The letter of interest was in July of
▶ 0:36:03So you did not submit the letters of interest. Is that what you're telling
▶ 0:36:07And you didn't know,
▶ 0:36:08sir. I was confirmed in October
▶ 0:36:14All it is is if you didn't know, say you didn't know. And if you do know, say you
▶ 0:36:18sir, I think it does require some context here.
▶ 0:36:21No, because either you didn't know or you don't know.
▶ 0:36:24Sir, how could I have known what was going on prior to my confirmation?
▶ 0:36:27Okay, then you say you didn't know. And I would take that as an answer that you didn't know. I told you I'm not trying to accuse you. of anything. If you did not know, then just simply say, you did not know
▶ 0:36:41the letter of
▶ 0:36:44but now that you do know that this project will directly benefit the president's and secretary Lucknik's I'm asking you, will you commit to not putting any US taxpayer dollars at stake for the project unless and until this clears the conflict of interest that is addressed?
▶ 0:37:13Sir, every single investment that goes through the DFC follows a wholesome and rigorous process, including full ethics, know your
▶ 0:37:27I have don't try to run out my time. If you are going to make sure I'm asking you because what we're going to do is we're going to hold you to what you say here. So, I'm not, you know, I just want to know. You said you did not know. It was before you I got it before you were uh uh confirmed.
▶ 0:37:47And so now that you do know and this is now on record, the question is will you not uh you know until this is cleared uh we want to make sure that we hold you to that. Every single investment will go through the rigorous process that includes ethics, know your customer, AML, and a fourpronged process.
▶ 0:38:11We we're just going to repeat because we're going to do our oversight responsibilities here. And we're going to make sure that we hold you. You say you did not know before, you know, you say you're going to make sure that ethics is upheld and we're going to hold you to that. We're not going to decide. We're looking at it and we'll hold you to that. Ranking members, time is expired. Representative Smith. Thank you, Chairman. Thank you very much, Mr. Chairman, and welcome to our distinguished uh leaders and panelists today.
▶ 0:38:39And let me ask you, I have a lot of questions, but five minutes I'll ask one basic one. For years, I've been working on trying to get the DR Congo to end their horrific complicity and enabling of the Chinese Communist Party by sending cobalt that they extract through horrible means, child labor, 35 to 40,000 kids, uh 200. There's no real um protections for those minors.
▶ 0:39:08I've chaired six hearings on the abuse in those minds. I've been to GMA myself. Um, and and cobalt, especially for European cars, EVs, is exploding. So, the the market is making the Chinese Communist Party huge amounts of money. I asked Tesa Katy, the president, uh, please, if you're going to mine it, do it under standards that are humane and make sure it's processed, and that's the key word here.
▶ 0:39:33uh in a democracyloving country or in your own country, but not in Shing Jang uh where the weaguers are are being subjected to genocide. Um they listen and you know hopefully they're going to do something. But I have a bill that I've introduced repeatedly. Now it's HR2310. I did have a hearing uh in in March of last year on this and I'm going to do another one.
▶ 0:39:55Uh but it's the bill is called the Cobalt Supply Chain Act and the essence of it is a pres rebuttable presumption like we did with the weaguer forced labor act to say okay if you can prove that you're not using forced labor um then you can do it but frankly every Tesla I ever see now and there's a lot of them I know that the cobalt that's driving that Tesla was was mined on the backs of children in Dar Congo and on in in a forced labor situation.
▶ 0:40:25situation for uh for older people. So I'm asking you please if you would take this back um to me this is like right in our face again it's growing you know I've asked Musk and others to what are you doing enabling this kind of exploitation uh again if your supply chain is not tainted that okay you know whether you like or dislike EVs you know that's that's a whole another issue but when it when you talk about child labor so I'm asking if you would take a look at the bill uh see if you can support it
▶ 0:40:55we got part of it passed by ways and means in the last Congress Congress. Uh my hope is that we can get it soon now. Yes, there's all kinds of good things happening. The president's peace treaty was certainly good uh with Rwanda and the Congo. I I thought that was an opening to finally get them out from under in promoting um or sending all of this cobalt to to Shing Jang for processing.
▶ 0:41:18So, if you could speak to that because to me, you know, and again, there's all kinds of other things where Africa is being fleeced by the Chinese Communist Party. Uh, but this is one that just jumps off the page and can be remedied rather quickly.
▶ 0:41:36Yes, please.
▶ 0:41:38Sure. Thank you, uh, Congressman Smith. I agree. Uh, it's grotesque what China is doing in the Congo. USDA has been working in southern Congo. I think we have a rigorous due diligence process to ensure that the work we're doing upholds the highest labor and environmental standards. Um and making sure as importantly that the offtake from that will be directed to the United States.
▶ 0:42:03Um I think that for USDA that is a um that is a basic tenant of any investment we're going to make in critical infrastructure is looking at the labor situation ensuring that we are excluding China from involvement in any form or fashion to make sure that uh the highest standards of labor uh can take uh are upheld uh in the critical mineral sector generally but particularly in the Congo.
▶ 0:42:29Okay. If I if I could ask you to take a good look at the rebuttable presumption because when we put that into the weaguer forced labor act, there was push back with the previous administration, but he did sign it. Uh and it does give us the ability to say, look, those products that are made with forced labor are inadmissible to the United States. Um and and this ought to apply to cobalt. And then when you add on just how horrible what it is, and you said grotesque, what they do, they meaning the Chinese Communist Party, they have most of the mines.
▶ 0:42:58uh they've either bought them and they you the substandard labor practices uh the sexual abuse of children uh I heard we had at my hearing people who testified to that these kids are so vulnerable and they're so destitute and they're working in artisial mines and they're also working obviously in the other minds and they die or they get sick they they they're not wearing apparatus that will keep the the dust and other uh debris from their lungs.
▶ 0:43:23Uh and again, Chinese Xi Jinping is laughing his his way to the bank uh as they make all of this money. Again, it's not as much that in terms of here, although there is a big market. I'm out of time, but in Europe, the EVs there are exploding in terms of how many are being bought all on child labor and forced labor.
▶ 0:43:44Mr. Katy, thank you, Mr. Chairman. Mr. Black, you said that you were, you know, your agency and yourself, you're involved in what you termed a rigorous review of all projects. Is that correct?
▶ 0:43:59Currently, Congressman, we are reviewing all previous investments with the goal of being able to disseminate.
▶ 0:44:08So, you're part of that review now.
▶ 0:44:11You're there. So, you're part of that now. Sir, review requires multiple things. We are
▶ 0:44:17No, I wanted to know about you. You're the only one here. So, uh you're part of those re rigorous reviews obviously,
▶ 0:44:23Well, evaluation process and audit requires a third party firm to
▶ 0:44:28No, I I asked about you. Sorry,
▶ 0:44:31I didn't ask about third parties. I just want to know about you. You're part of it, right? You're the one that just told us it exists. You're in charge, so you're part of it.
▶ 0:44:38Am I asking for review and valuation?
▶ 0:44:41Exercise. Are you involved at all or are you just one of those people the hands off? You're not involved in anything
▶ 0:44:46sir. I'm not an accountant. So we are going to hire
▶ 0:44:50but you're involved in this correct?
▶ 0:44:53Yes. If I ask you God help us. All right. So you're involved in this. So with uh Ka resources uh the company that uh is deal with the uh Kazakhstan tungsten deal. Uh you're aware of Ka resources. That's the company involved, right? That's pretty
▶ 0:45:16Well, actually, sir, we have So, I think you're conflating two different processes. Evaluation exercise, which involves accountants, and valuation firms of all previous investments going back 55 years. On top of which, we're talking about a four-pronged investment process which we go through for every single investment. Oh, no. You can detail that all you want. I'm just here. Cause resources.
▶ 0:45:43You've heard of them, You've you personally have heard about them. Why is the problem with this lately? Yesterday, it was ridiculous. Today, it continues with this administration. It's like the people in charge don't know anything. I mean, come on. So, you're in charge and you know about K. You've heard the name Kaz resources, right?
▶ 0:46:05Have you heard it? only in the context of people sending media reports in the
▶ 0:46:10so you don't know you don't this rigorous reform
▶ 0:46:14the company that's involved in this you don't know only through media resources that's really the kind of leadership you're bringing to this let me let me ask you another question by the way have you heard of doer security
▶ 0:46:25sir I don't think you're listening
▶ 0:46:27I don't think you're responding
▶ 0:46:29I absolutely am responding
▶ 0:46:30I don't think you're responding to what I'm asking so listen I don't want to be argumentative every time we have a multi answer this investment process.
▶ 0:46:37You're just giving me a lot of
▶ 0:46:39crap. Listen,
▶ 0:46:42you heard about the ma the major company involved in this big deal with Kazakhstan and all you've done is you told me you heard about it through media sources. Have you heard of doineerities the level of the investment process? What sir?
▶ 0:46:57Dominineer service asksw answer the question. Have you heard of doineering context sir? Have you heard the name,
▶ 0:47:06Have you heard the name? Don't stir me to death. Have you heard the name? Be respectful. I'll try and be respectful in response.
▶ 0:47:12Sir, you're not allowing me to respond.
▶ 0:47:14No, you're giving me offshoots of my direct answer. Look it. Dominary Securities is owned in part, major part by Donald Trump's sons. You didn't know
▶ 0:47:28sir? When an LOI is when an LOI is issued by career staff in the first
▶ 0:47:34You said this is rigorous. Now listen, I have one minute left. Don't talk my time to death.
▶ 0:47:40You said it was rigorous. You said you only heard about Ka's resources. You told this committee under oath that you told them that you've only heard of K's resources through media re mediate accounts. You haven't heard of doineer securities. It's a Trump known investor in this.
▶ 0:47:57And did you know that according to uh federal security federal filings that both Caner Fitzgerald run by Lethnics and Dominary Securities partly owned by the Trumps have already earned fees for their work. They're both paid for their services already helping executives involved in the series of transaction to raise new capital.
▶ 0:48:21So when you're evaluating these things, you're not even looking at any function of how the companies in front of you raise their capital. You're not even looking at that. Yes or no?
▶ 0:48:33That's not remotely true. It requires a KYC process. If you would allowed me to speak, I would have explained to you.
▶ 0:48:39I'm asking you as the guy in charge. You're the guy in charge,
▶ 0:48:43sir. There's a mult
▶ 0:48:44You're the man at the wheel.
▶ 0:48:45Sir, do you understand what know your customer obligations?
▶ 0:48:48Evidently, you don't. My time is expired, but I can't Representative
▶ 0:48:53continue to put up with this non-answers from this administration on conflict of interest issues.
▶ 0:48:58Thank you very much, Chairman Mass, for your leadership and indeed we appreciate all of you being here today. Additionally, uh Mr. Black, I encourage the development finance corporation to operate in Syria, which at this stage could benefit from a trade, not aid model and technical assistance, which the DFC could capably provide.
▶ 0:49:18uh is particularly uh important to me because I was honored in November 2024 to be condemned personally by the Assad dictatorship as an enemy of the state and then three weeks later Assad fled to Moscow.
▶ 0:49:33I was grateful eight months later to be in Assad's office in Damascus with the new president Ahmad Alur with Senator Jane Shaheen and Ambassador Tom Bareric as President Donald Trump additionally has welcomed President Alshara to the Oval Office the first Syrian leader in 250 years and indeed President Donald Trump is leading the world in his efforts to give Syria a chance.
▶ 0:49:57What is the status of the DFC in any effort to assist the people of Thank you, Congressman. So, at the DFC, we are very much looking forward to getting involved with Syria. Um, two things that, uh, one of which, and we work with Ambassador Barrett closely for these purposes.
▶ 0:50:21One, uh, we have gotten a re-agn investment agreement with Syria, uh, because statutoily that is required for us to be able to do that. We are also waiting for judgment by USR on their investment and labor practices being okay for the you uh for the DFC to be able to invest.
▶ 0:50:45Well indeed I wish you'd uh again to proceed. I was really happy that uh Senator Lindsey Graham on Wednesday, last Wednesday met with President Ashara. Uh in the past uh the senator had been uh really uh skeptical about the new government in Syria, but uh following that meeting, he said uh to join with uh President Trump, give Syria a chance and uh what opportunity you can help provide uh in honor of now the late Senator Lindsey Graham. And Mr.
▶ 0:51:14Petri, the middle corridor is a critical area of interest in furthering President Trump's Central Asia agenda and the diversic diversification of the critical mineral supply chain train the chain the illegitimate Georgian dream government is an anti-American entity promoting both radical Iranian Islamist and pro-war criminal agendas. In fact, elections were rigged in Georgia.
▶ 0:51:44With that, the tremendous people of the Republic of Georgia remain staunchly pro-American. Millennium Challenge is unique as its merit base. How does the Millennium Challenge Corporation maintain its current compacts with the Republic of Georgia while ensuring that the Putinist government does not divert the assistance solely for the illegitimate government away from the people of the Republic of Georgia?
▶ 0:52:12Thank you uh Congressman for that question. MCC is not uh currently working in Georgia. We have worked there in the past and have had successful uh programs there in the past. Uh as we do with all countries, we would be eager to uh engage with them and understand uh what the concerns and opportunities are, we do take uh those broader governance challenges very seriously.
▶ 0:52:35And so as we're considering as our board of directors is considering new countries that might be selected in a given year, those are factors that we'd be looking closely at. Well, Millennium Challenge indeed uh is so helpful for different countries and can you the American people need to know uh what uh some of the initiatives you have.
▶ 0:52:56Absolutely. Uh we are uh under the Trump administration focusing on a couple of areas. Uh the first is critical minerals here today. Of course, we're taking a 360 degree view of this as I mentioned in Zambia and Mosmbique, Sir Leone and others. Individual deals and transactions are important of course uh but it's going to be about setting the foundation uh in working systemically if we're really going to win this race.
▶ 0:53:22And so for us firms that means clarity around the legal framework uh streamlined permitting and licensing access to quality data so that you can make informed business decisions. It's also about the operating environment. It's not just access to a particular mine or a site. You need water, you need roads, you need power, you need ports. And so this is what MCC does best.
▶ 0:53:46Uh where we're not working everywhere, but where we are working, uh we go big and we focus on this unique combination of both infrastructure and policy.
▶ 0:53:55And you you've made a difference. Keep doing good work. Thank you. I yield
▶ 0:53:59Mr. Oeski,
▶ 0:54:01thank you, Mr. Chairman. Um Mr. black. I was here and watching with great interest some of the back and forth about the the Kazakhstan deal that the ranking member and representative Keading were asking about earlier. I'm going to take you at your word that you're not really aware of the details of those deals other than what's been publicly reported.
▶ 0:54:24Um, but I guess just from a values perspective, do you think that in these types of deals that I, as a member of Congress, should be able to personally benefit from those types of deals? Just from a your values perspective,
▶ 0:54:41sir, I do not govern the legislative
▶ 0:54:46I'm not asking about the legislative. I'm asking about your personal values. In your role, do you think that I should be able to benefit from the types of deals that we talked about here in
▶ 0:54:56Sir, I believe that asset allocation and taxpayer funds and their allocation is a fiduciary duty.
▶ 0:55:06Uh fiduciary duty is by the way in the private sector much more stringent.
▶ 0:55:12This is not a complicated I'm not trying this is not a gotcha question. And this is a do you think it's wrong for members of Congress to benefit from public
▶ 0:55:21Sir, you're
▶ 0:55:21is this the kind of stuff you gave when people were asking you about whether you wanted to serve in this role? I think it's pretty straightforward. Anybody else can give a yes or no answer at the table? Whether you think it's wrong, your silence speaks volumes, guys. It's an easy yes. It's wrong. It shouldn't happen. Should Secretary Rubio be able to benefit from a deal like the one in Kazakhstan? Mr. Black? Sir, every
▶ 0:55:45Yes or no? Sir, every investment goes through a rigorous investment process at the DSC
▶ 0:55:52guided hopefully by some values where public figures shouldn't benefit off of public projects. It's not hard to say,
▶ 0:55:59sir. An ethics overview is involved in this. It requires
▶ 0:56:05Okay, I'm clearly not going to get an answer, so I'm going to reclaim my time. I wanted to give you an opportunity I I think regardless of how important these projects are, taxpayers should not be paying to make members of Congress, to make members of the administration, to make the president or their family richer, nor should taxpayer funding be used to fuel the corruption of any other partner country. So, I'll pivot here, Mr.
▶ 0:56:27Black, to in December, the DFC announced a letter of interest for an equity investment between uh Sha Kamin, the DRC's state-owned mining company, and another commodities group. The DFC later announced that 100,000 tons of minerals had been shipped to the US through this joint venture. A report last year showed that Sha Kamine was under investigation for allegedly embezzling more than $300 million.
▶ 0:56:53Earlier audits found hundreds of millions and unaccounted for tax prepayments, loans, and mining revenues that never reached the national treasury. So hopefully you can say that's wrong in terms of values. And then I want to know what guardrails you have in place to ensure DFC investments are not furthering this type of
▶ 0:57:14Sir, I I I've been trying to explain process and can we take a step back here for a second? There is a four-part process. If anything is a letter of interest, that solely means that career staff have screened a project and announced interest. It has not gone to the underwriting committee.
▶ 0:57:36It has not had know your customer which I've been trying to talk about which is KYC and uh checks which are part of any ethics check. It then needs to go to investment committee. Only after that is the deal even eligible to be approved to be brought to the board of directors for approval.
▶ 0:58:02So frankly, when you bring up letters of interest, it is so early on in the process, there are no funds that have been dispersed at any point. Ethics checks have not even happened yet. it is so premature and early that it is not reflective of any form of commitment from the DFC. I
▶ 0:58:24I think what you're seeing from this committee is a concern though that based on what has happened in other places and where President Trump and his family have lined their pockets with hundreds of millions if not billions of dollars in taxpayer related projects at the Department of Defense through mining deals through cryptocurrency schemes. There's a reason these questions are coming forward.
▶ 0:58:45And I would hope that in all forms of corruption with a local government partner or this administration, you all continue to have some moral conviction to say doing so is wrong. And the fact that no one could say it publicly is deeply concerning to me. But I hope that we can work to find a way forward together. And with that, Mr. Chairman, I yield back.
▶ 0:59:04Representative J.
▶ 0:59:07Thank you, Mr. Chairman. I have a question for each of you. Um, what do you consider to be the most significant issues to include things like infrastructure gaps, corruption, conflict, and ongoing security issues that are preventing African critical mineral producers from expanding their processing and refining capabilities?
▶ 0:59:27And what are you doing to solve these problems, promote investment by US companies, and address the national security uh concerns that these uh USDA has taken a fairly substantial uh lean uh directed by the White House and the president to be focused on critical minerals. Um when I look across Southern Africa, um we're doing things differently than we've ever done before.
▶ 0:59:52For USDA, that includes now doing drilling uh test drills to determine the uh substrates of the critical minerals capacity, doing testing here in the United States of those critical minerals. So local processing development can be designed using USDA funds and led by American companies and American investors.
▶ 1:00:14So I think that is a significant change for USDA which is making that bigger investment to ensure that um these uh critical minerals are coming to the United States and we're working everything we do is designed for offtake into the United States.
▶ 1:00:31That sounds fine. I mean that's that does explain kind of what you're trying to do to uh to to address some of these issues. But the the the the reason I ask this because every time I go to Africa, I travel over there a lot. I hear about the libido corridor all the time and you guys have mentioned it in your statements. Uh and uh but what is actually being done? You know, so far where are we at with with a project like the libido corridor?
▶ 1:00:52And my question is is like we we have a lot of great ideas and we we have great plans, but the problem is is there there are such basic issues that exist in a lot of these countries and DRC in particular with regards to corruption and the ongoing conflict and the security issues and stuff there that you know what are we doing to overcome that because we can talk about it all day long but I don't see much being done.
▶ 1:01:14uh I don't see a lot of progress being made and I I just I mean I know that that's uh you know you'd need you'd need help from a lot of a lot of outside organizations and other parts of the US government uh to establish uh you know to get rid of the corruption and establish some of these security uh to overcome some of these security issues but are are we doing things to actually to to make this happen or are we just talking about what we'd like to do
▶ 1:01:40for USDA we're working extremely closely with the Congalles private sector Right. And we found having good partners with Congalles private sector has been a positive way to ensure uh the uh that we have the right part.
▶ 1:01:54Has any work been done yet? Has has anything happened with the libido corridor yet?
▶ 1:01:59For USDA, we're on the front lines on the early project development side for USDA. That includes uh designing uh power projects, transmission networks into these uh power plants as well as uh beginning the testing of critical minerals to design the processing so we can uh increase local processing capacity to get those products into the United States market.
▶ 1:02:20Anybody else have a comment on that one?
▶ 1:02:22On libido, uh MCC is working in Zambia. Uh we are working on two fronts. One is the infrastructure side, the other is the policy and institutional reform. Uh we've seen some success in the agricultural sector getting Zambia to change some laws that's going to open it up for more private sector investment. That's going to be good for US companies and others. We're going to replicate that in the mining sector.
▶ 1:02:47We're improving their mining cadastra as well as their minerals regulation commission and finally making data more accessible and transparent which of course builds confidence for investors. We're looking at hundreds of kilometers of roads that are going to be upgraded in and around uh the broader USG investments including the railway and others. We're not currently working in the DRC. Uh although uh
▶ 1:03:10is is that because of the security
▶ 1:03:12Uh currently they don't qualify for an MCC compact which has uh kind of a rigorous standard that we want to uphold. That said, countries uh like to make progress on MCC scorecard to qualify for MCC assistance. We call this the MCC effect. Without spending uh a penny of US taxpayer resources, countries are changing laws become eligible for MCC. DRC has a unit set up within their government where they are trying to make progress in this regard.
▶ 1:03:42So we do engage with the government although we are not working there
▶ 1:03:45But I mean obviously the DRC is critical to the libido corridor. doesn't happen without the DRC, right? So, yeah, I think we we have a lot to address there. With that, I yield back. Thank you.
▶ 1:03:57Other Representative Jackson.
▶ 1:04:02Thank you so much, Chairman. Thank you, Chairman uh Mass. Thank you, Ranking Member Meeks. And this is a conver a question I would have to the um first of all to Mr. Black. Mr. black. You state that um in um this areas of increasing global competition, President Trump and Congress equipped our agency to be a leading force for restoring US economic security. Since his reauthorization, DFC has rebuilt our pipeline to more than 340 deals.
▶ 1:04:30Uh I'm just concerned about Mr. Trump's executive order 10998 where he states that um he's put an increased visa restrictions on many of these African countries. As you know there are 54 African countries and what we saw during the uh events of the World Cup is that 12 African countries had complete travel bans. Another 14 had partial travel bans.
▶ 1:04:5526 almost 50% of the African uh countries have travel bans, visas and restrictions where people couldn't even come over to play a game and could not bring their family members to watch soccer. Uh I've always maintained that Africa's most valuable resource is above the ground, not beneath the ground, it's the people and having access to the people and will further ensure that we can have access to some of their bounty and their resources.
▶ 1:05:22Would you be in support of us rescending that executive order so that we can reduce ease the amount of travel bans and restrictions so that we can communicate and invest in those African
▶ 1:05:36Sir, I I'm an asset allocator at the DFC. Uh visas, travel, and domestic policy are not part of my purview. Okay, I understand you don't want to make this a political issue, but it is politics. The asset allocation, people are a valuable asset, the human capital, human assets. How do we get the assets to the people? You can't go on into a country and extract something from underneath the ground if we can't talk to the people above the ground.
▶ 1:06:06If children can't play soccer together, you know, in Zambia as well where people have to pay 5,10,000, $15,000. I met with people from the global health institutes and other places. they can't even have their international meetings in the United States because they cannot convene their workers from the continent of Africa to come to United States because of travel vans and visas. Um the second question I would probably have is to you our deputy secretary Mr.
▶ 1:06:30Hardy is that we have seen in Zambia for example USDA has awarded funding to metallax an African Zambian limited subsidiary of Texas-based uh commodities inc to support a feasibility study for expanding facility that currently extracts and processes copper and cobalt.
▶ 1:06:48I've spoken with the manufact with the uh excavators of copper in the country of Zambia and they cannot get to the United States because they have to spend in excess of 10 to $15,000 per employee that needs to come over here to have a meeting. Uh and so for six people without buying the ticket, without having any lodging, they have to post a bond anywhere between 60 and $90,000. Would you be in favor of us rescending that uh travel ban restriction that the administration has placed?
▶ 1:07:17I I am not aware that that has become been a problem for uh Zambian companies to be working with.
▶ 1:07:22You're not aware of it or you don't know that it exists?
▶ 1:07:24I I've not heard that that exists.
▶ 1:07:26It exists. You can look in the New York Times. You can go to anything. I would hope that your agency would apprise you and brief you a little bit better than that. Um China has 60 diplomatic post in Africa. The United States has 56 diplomatic post in Africa. The US has 41 African vacancies. Currently, China has 274 diplomatic post globally while the United States has 271. This is an alarming trend.
▶ 1:07:52So, as we continue to talk about critical resources, we also have to talk about diplomatic resources. Out of the 195 total US ambassador positions, the US has 107 vacancies. So, I am all about the extraction, all about the strengthening of the global supply chain. But unfortunately, at the same time, we are weakening our diplomatic core.
▶ 1:08:14And so, those of you that are asset allocators, investors, and you're doing great work on the critical minerals, I am concerned about how we are conceding and retreating from our one-two punch, both of being uh economically feasible, but also being diplomatically uh resourceful and resilient. And it all comes back to not being able to watch uh nations enjoy a soccer match together. if we can't play together, how we're going to work together, how we're going to invest together. Mr. Chairman, I yield back.
▶ 1:08:44Thank you, Mr. Jackson, Miss Kim.
▶ 1:08:46Thank you, Chairman. Thank you to our witnesses for joining us today. Uh you may know last month we passed the dominance act and that was a bipartisan legislation that empowers the United States to work with our allies to build alternative critical mineral sourcing, processing, refining capacity to power our economy.
▶ 1:09:07And one of the key provisions in that bill was for the United States uh state department to negotiate the energy security packs with our partner countries. And that would establish countrysp specific objectives to support key energy and mineral investments abroad.
▶ 1:09:25And the idea also is to provide a one-stop shop to align our diplomatic financing and technical tools from USDA uh DFC, Axiom and Commerce to strengthen our allied critical mineral supply chains and promote the energy security. So the first question is to you Mr. Hardy.
▶ 1:09:47What are some of the gaps in inter agency coordination and how might models like the energy security packs and the dominance act improve inter agency coordination?
▶ 1:09:59Thank you chairwoman Kim. I think for USDA um as an agency we have long uh looked to our partnership with the state department and our statute requires that we follow the foreign foreign policy guidance from the secretary of state.
▶ 1:10:14So for any activity that the US trade development agency takes on, we coordinate directly with the regional bureau or the fun functional bureau to ensure that any investment we're making in infrastructure in the Indoacific around the world is aligned with the secretary of state's vision, the president's vision for a robust foreign policy agenda. Okay, with respect to the dominance act, I'll let state uh weigh on on that because that's their direction on creating the energy uh compacts.
▶ 1:10:43But I think what you can see here today is three agencies along with XM that work very well together and have the tools that complement each other and the staffing resources that make us in a great position to provide an alternative to the Chinese uh model of engagement.
▶ 1:11:03And I think that the dominance act and other engagements that are designed to bring us together are the ways that we're going to continue to strengthen uh uh our collective efforts to uh beat back the Chinese Communist Party.
▶ 1:11:16Thank you. That's exactly the the main uh objective of the dominance act. I mean each agencies are doing a great job but we wanted to make sure that there was that one agency that we can go to and our allies and partners can really depend on our coordinated efforts. So I'm really glad that we are moving that along and hopefully the Senate will also pass it quickly, you know. But uh Mr.
▶ 1:11:42Ble, I want to talk to you um and first commend your leadership at DFC and your focus on advancing President Trump's vision that energy security is national security. Uh and I'm continuing to always explore what more ways that we can help to expand DFC's flexibility, including its ability to operate in Uh, I introduced the Fleets Now Act that will be focused on rebuilding America's ship building
▶ 1:12:13capacity with our allies. And in that bill, there is a provision explicitly allowing for DFC to work in Venezuela as well as to invest in stigs and port infrastructure to facilitate economic growth. So, Mr. Black, can you talk about what role that Congress can continue to play in giving DFC and its partner agencies the durability to support allies and investors making long-term commitments to energy
▶ 1:12:45Representative Kim, thank you for your support. Uh, and thank you for all you're doing there. Uh, I think you're doing a lot of important work and look at the DFC, we fundamentally believe in how important ports internationally are and the more work we can do there, the better and we appreciate uh the other support and opening up.
▶ 1:13:07Look, we have our work cut out for us uh after our uh and I think rebuilding the pipeline was just the first step to doing that. We are now in a position to execute more on more on these deals and we are continuing to do so and I welcome working with you, your colleagues and your offices in laying out priorities and other projects that we can work on that helps advance the president's agenda and serves the American people.
▶ 1:13:37So recently um DFC announced 1.5 billion investment in the Pacific. I believe that is the single largest investment in DFC history. Right. Um the Philippines also has a plant a Pilica hub in New uh New Clark City that would create 4,000 acre economic security zone for AI semiconductor packaging and critical minor uh processing. So what would the DFC's role actually look like in that projects?
▶ 1:14:06And what else in the Indo Pacific do you see more opportunities for DFC to uh invest?
▶ 1:14:14Congresswoman, there are a host of different projects in the region that are great opportunities. Uh as I've said to your other colleagues, look, when some deals are in their early stages, uh first it is the vetting process and we talk regularly with the state department uh as well as the pack silica team uh and building out opportunities and really getting into the details of where investments are important.
▶ 1:14:41We find that it's in the nitty-gritty in the documents and in the financing and the numbers where we do our best work. So, we kind of pause before we get to the headlines because we want to make sure everything works and runs properly.
▶ 1:14:58Great. Hope to see more.
▶ 1:15:01thank you very much.
▶ 1:15:02Thank you, Mr. Chairman. Thank you to our witnesses for being here. Uh from roads to communications infrastructure to critical mineral supply chains, development funding supports American businesses and promotes American values while uplifting developing countries. At least that's what it's supposed to do. Unfortunately, under the Trump administration, just because something should be happening doesn't mean that it is happening. I'm growing increasingly alarmed uh that uh under your leadership in particular, Mr.
▶ 1:15:30black that there's a push to make DFC operate more like a sovereign wealth fund than the development program that it's supposed to be. It appears that much of DFC's efforts are focused on projects in upper and middle inome countries rather than in developing countries that need them the most. I'm also worried that you don't really have a clear plan or strategy behind the projects that you're operating. Earlier, Chairman Mast asked you what projects you are most proud of and you mentioned the Sarah Verde project.
▶ 1:15:57This project will pour millions of taxpayer dollars to support nickel and cobalt production in Brazil. I agree uh that it's essential that we pro protect the production of cobalt, but I don't believe that you're thinking of the entire picture. Mr. Black, do you know where this cobalt will be
▶ 1:16:16Congressman, I think we need to take a step back.
▶ 1:16:18No, no. I asked you a question, sir. We don't got to take a step back. I need you to answer my question. Where is it Sir Sarah Verde is a heavy rare earth
▶ 1:16:28Where where is the cobalt process?
▶ 1:16:30A heavy rare earth, sir.
▶ 1:16:31So where?
▶ 1:16:32Sir, cobalt is not a heavy rare earth.
▶ 1:16:34Please don't serve me. I'm just asking you a question. What's the answer?
▶ 1:16:37I I
▶ 1:16:38If you don't know, I got it. I got it for you. It's China. So are you aware that China has a near monopoly on processing cobalt?
▶ 1:16:48yes or no?
▶ 1:16:49Sir, cobalt is not a heavy rare earth. Are you aware that China has a near monopoly on processing cobalt? Don't answer my question.
▶ 1:17:00Your question is a little confusing.
▶ 1:17:02Hey, the question is straightforward. Are you aware? Yes or no? It's okay if it's no.
▶ 1:17:07Cobalt is not a heavy rare earth.
▶ 1:17:09You're not answering my question. Is a heavy rare earth mine.
▶ 1:17:12Mr. Black, you don't want to answer questions. I'm going to tell you facts. China has 95% of the world's refined commercial grade cobalt chemical processing capacity. So if you're looking at the entire picture of the cobalt supply chain, something that you are very proud of, it seems like the natural question is where is the cobalt being refined? So knowing these facts, won't these projects ultimately this this project in particular result in the US taxpayer subsidizing Chinese
▶ 1:17:43Sir, you're talking about cobalt in a project that is heavy rare earths. Cobalt is not a heavy rare earth. Look, I you it seems like you don't want to answer questions or deal with the facts. Earlier you said that you would not invest in AI projects that have Chinese components and yet you said your greatest project is one that will subsidize Chinese refiners. This goes back to a question of competence.
▶ 1:18:05Nothing in this hearing has made me think that you know all of the details of what's happening in the DFC and what needs to be done to protect US interests. You've also repeatedly denied any knowledge of the many conflict of interest is issues that we have raised from the Trump family to the Lutnics in the DFC. You're spending millions of dollars in taxpayer uh uh in programs with taxpayer dollars without the thought to the full supply chain of critical minerals.
▶ 1:18:36And along the way, you've cited career staff, the the process rather than your knowledge of what's going on. So the the fact of the matter is I'm hoping that you will turn things around. DFC is essential. That's why I'm here. That's why my colleagues have so vigorously engaged. It's got to focus on its development mandate and taking a look at the full picture to improving lives of all Americans, not just the president and his family.
▶ 1:19:03and to throughout your time here you have not made it clear that you are standing for the values of this country that no one should be benefiting and certainly not in the oval office not along the cabinet and not in the halls of congress from the investments from DFC so I hope that that's some place that you focus and with that I yield back
▶ 1:19:25thank you Mr. Alo, I think you missed the explanation that what you were asking about doesn't exist in the mind you were asking about, but Mr. Heisenga is recognized.
▶ 1:19:35Uh, thank you, Mr. Chairman. I was I was going to note I'm looking forward to my colleague leading the charge to expand processing here in the United States, especially if he has any contacts within the EPA so we can get these things permitted. Uh that's been a major problem uh with uh with where why the United States has become so overly dependent on others in our supply chain. Uh and I understand that that's exactly what this administration is trying to do.
▶ 1:20:03And once again, we see our colleagues throw bombs and leave the room and they they don't actually want to know answers. Uh I don't know, Mr. Black, if you want to take a second, have anything that you want to address on what diet tribe you just heard?
▶ 1:20:16Thank you very much, Congressman. Look, I'm very proud of the work the whole building has been doing. What I would say is look, I've always said that we have a dual mandate. It is serving US strategic interests and development. And what is development but creating growth and you know just on the fact side 80% of the deals we've approved to date are in lowincome or lower inome countries.
▶ 1:20:45So, I'm not really sure about the facts that were being spewed at me, but people can say what they like.
▶ 1:20:51Um, uh, people are inventing a lot of things these days as they are trying to score political points, but you know, I actually happen to be the chair of the South and Central Asia subcommittee. It's India to Bangladesh, Bhutan, Nepal and all the stands including Kazakhstan, Pakistan place where number of of uh of agreements have been struck. Um I also happen to be uh the con uh part of the uh congressional strategic advisory group uh for the uh DFC.
▶ 1:21:20Um uh also the vice chair of the financial services committee where we deal with all the sanctions and we deal with um jurisdiction on international development and finance agencies. So I' I've got a fairly high level of interest in what you all are doing and I just want to commend you for what you are doing.
▶ 1:21:38Um, I'm gonna I'm gonna jump to my area of responsibility with Kazakhstan, and I want to uh talk about uh the recent announced uh proposed partnership to modernize Kazakhstan's telecommunications infrastructure by transitioning major networks uh to trusted vendors, strengthening secure digital infrastructure.
▶ 1:21:59Uh the announcement has highlighted the strategic importance of the TransCaspian corridor and the role trusted telecommunications networks play in supporting economic growth, critical mineral supply chains and regional connectivity. Um so again, Mr. Black, uh how does the proposed investment fit into the administration's broader strategy to compete with China and Central Asia?
▶ 1:22:25Thank you, Representative. So I think telecommunications are so incredibly important here because I view them as a gating item. You know one of the most frequent questions I get asked around the world is will you invest in AI data centers here and some of those countries uh you know I have to ask first do you have a power or energy source?
▶ 1:22:50Sometimes the answer is no which makes it very Then there's, do you have a partner? Because we're not going to invest billions of dollars and just hope that a partner appears. It has to be tied up ahead of time. And then finally, the question is, what does your telecommunications depend on? Because we're not going to put a marvel of American innovation, which is RAI tech stack overseas built on Chinese rails.
▶ 1:23:21Yeah. So the fact of the matter is US telecom and trusted vendors is absolutely vital and
▶ 1:23:28and that was going to be kind of my followup and I'm going to change that a little bit, but how do you evaluate whether those those projects uh reduce reliance on high-risisk vendors? How do you how do you measure that?
▶ 1:23:39Well, just straight up we approach them and we look at these telecom networks and we say what are you running on and can we finance a rip and replace? And it's also a great test of the willingness of a government.
▶ 1:23:53Well, I was just going to ask about their willingness. What are you seeing as a willingness to do so?
▶ 1:23:58I'm very pleased to say there is increased willingness, I think, and then we want to lean in particularly in the Western Hemisphere to make sure that there are not Chinese.
▶ 1:24:08And Kazakhstan's been pretty clear that they're they're willing to um with a neighbor of China, Mongolia, and and uh and Russia. They're they are very much interested in talking to the United States, aren't they?
▶ 1:24:20That is absolutely true.
▶ 1:24:21Okay, I've got just moments here and maybe what we can do is transition this into some written responses. That would be helpful. But um I wanted to know if our new objective is to build resilient supply chains.
▶ 1:24:35Should Congress continue evaluating our foreign assistance agencies primarily by dollars obligated and projects uh or should we instead evaluate them by what I would think are you know measuring items such as private capital mobilization export growth trusted train supply chains established reductions in strategic dependence on China and those kinds of things. So if the chair will allow maybe a quick very brief uh answer from from each of you would be helpful.
▶ 1:25:06Sir, what you listed is definitely things and metrics that we like to look at and firmly agree with you.
▶ 1:25:13Uh Congress, uh USDA has a robust monetary evaluations programs. For every dollar we invested of our appropriated dollars, we're generating over $200 in US exports. Since the AY's inception in 1992, we've generated 127 billion dollars in US exports to emerging markets around the world. And those are all designed to open markets, but also create job uh job creation here in the United States. And that is how we measure ourselves. And that is what we report to Congress as our measurement, not the dollars out the door.
▶ 1:25:44With MCC, we're not just measuring outputs, we're measuring outcomes. And every single one of our projects is independently evaluated, including going back years after the fact and assessing whether we actually delivered on what we said we would. That information is actually then made public. Uh the good, the bad, and the ugly so that we can learn. Uh American taxpayers understand they're getting the bang for their buck. So this informs the measuring informs every single aspect of MCC's work.
▶ 1:26:12I appreciate it. Yield back,
▶ 1:26:13Mr. Caster. Uh, thank you gentlemen for your testimony today. Uh, Mr. Black, I had a question for you. Section 1444 of the Build Act requires the DFC to publish detailed project level information on DFC's programs. And during last year's reauthorization of DFC, I authored a provision that strengthened this transparency requirement to also require the publication of project level performance metrics and anticipated and assessed impact of DFC projects.
▶ 1:26:42As of now, uh, that requirement seems to only be met for DFC's technical assistance programming, not for its broader portfolio. At a time when the DFC has more resources than ever and is asking for even more, I believe that this is unacceptable. So, I wanted to ask you, what is your timeline for bringing DFC into full compliance with section 1444?
▶ 1:27:05And will you commit to public consultations with the development community on how that data gets Representative, thank you for your question. So, currently I think what you're referring to in part is foreign assistance and project development dollars because that is the only foreign assistance dollars that the DFC has.
▶ 1:27:25As I said in my opening statement, I am engaging in an entire valuation process of all DFC investments, past, present, and that will hopefully include future. And we plan to fulsomely put that out there to see returns to the American taxpayer across the entire existence of the DFC by administration.
▶ 1:27:52I guess my question is, are you committing to full transparency and to compliance with that provision?
▶ 1:27:57So we are in compliance with that provision. You're talking about foreign assistance.gov to which I explained there is only a portion of DFC data that applies to that.
▶ 1:28:09Okay. Okay. Well, let me ask you, will you commit to consulting publicly with the development community on the format and content of that data before you finalize it?
▶ 1:28:17Sir, we are working with best-in-class valuation firms and working with those who can assess and look at our numbers so that we can give that transparency to the American people.
▶ 1:28:31All right. The reauthorization also included a requirement that DFC developed a new quote unquote impact quotient uh to assess the effectiveness of its programs. What's the status of this requirement in the law? And will you have a a public comment period as the first Trump administration allowed when establishing the first impact quotient tool?
▶ 1:28:50Sir, I will have to refer you to the Office of Development Policy and get back to you there. Uh, in the reauthorization, Congress deliberately capped DFC's high-income country exposure at 10% of your total contingent liability and 25% of any project's cost. These limits exist because DFC's statutory purpose is to mobilize private capital into frontier markets where it would not otherwise go, not to do safe deals in wealthy countries that the private sector can finance or otherwise could finance on its own.
▶ 1:29:21uh legislation I authored, including the DFC's reauthorization, requires your annual report to include private capital mobilization data, anticipated natural amounts, investor types, and instruments used. Today, DFC reports neither a country income breakdown of its deal flow nor private capital mobilization data below regional aggregates, which means Congress cannot tell whether you whether you are crowding private investors in or crowding them out.
▶ 1:29:47And so my my question on that is will you commit to reporting deal flow by country income category and project level private capital mobilization data at least semiannually so Congress can verify DFC is staying inside the guard rails that we just recently set. Sir, we provide a lot of that data already and we follow all the strictctures of our reauthorization.
▶ 1:30:12Uh as our pipeline comes to fruition and deals get to the point of congressional notification, all those details do come to Congress and we put it forward. I agree very much. We don't want to do deals where we crowd out private capital. We exist to do deals all over the world where private capital cannot meet the mark. If we're doing something in which private capital cannot enter, then we're not serving our purposes.
▶ 1:30:44All right. Uh I have one more question and we may have to take the answer for the record. Uh, last year's reauthorization of DMC included language I authored to strengthen the position of the chief development officer, including by clarifying its position, integrating the role into the CEO's reporting structure. I authored the provision because I was concerned about the DFC's new emphasis on national security priorities, which I felt would come at the expense of its development mandate. I wanted to ensure that there was a senior institutional voice at DFC responsible for its development mandate.
▶ 1:31:12I'm concerned that in your testimony, you've made repeated references to economic statecraftraft and strategic competition, but few references to the DFC's development mandate or the chief development officer's role. So my question is, what is the status of the chief development officer position? Have you implemented the changes required in the law? Have you appointed an individual to fill this role?
▶ 1:31:37we do both the dual mandate on both development which is really growth as well as economic statecraft.
▶ 1:31:47And what's the stat what's the status of the chief development officer position?
▶ 1:31:51Currently we have just hired a new independent accountability mechanism uh head and we are currently interviewing for the chief development officer.
▶ 1:32:01When do you think you'll have somebody I would have to refer you internally.
▶ 1:32:07Representative Isa,
▶ 1:32:08thank you. Uh Mr. Hardy, is Brazil currently uh a country you're allowed to uh invest in with your study programs?
▶ 1:32:19It is that we have um are working directly with Brazil as they look at small module reactor deployment
▶ 1:32:25and that's a good thing.
▶ 1:32:26That's a great thing.
▶ 1:32:27Now, in your tenure, how many times has Brazil been in and out of that Brazil has long been a priority market for us. Um it's uh it's gone up and down as far as the opportunities that exist, but I think as we look at the Brazilian market, we're looking at working with the private sector and developers who are willing to make investments that support local economic development, but ultimately open up markets for the sale of US goods and services.
▶ 1:32:54One thing that Congress didn't give in the latest round of reauthorization, uh Mr. black has the ability to work in developed nations at 10% uh particularly when in fact development and/or strategic interest apply you don't enjoy that same capability of even if a country comes above a threshold you have to stop any further development isn't that true
▶ 1:33:17that is correct and it's it's a significant hindrance I think uh it falls into three different buckets one is small island economies you look across the Pacific island regions uh these countries are small have huge development uh uh restrictions but they're high income countries. Uh likewise uh to your point on critical minerals, you look at Argentina is just below the threshold.
▶ 1:33:41It is sitting on massive amounts of critical minerals that we're about ready to be excluded from working and because at some point in the coming year or two it will tip into a high income status and without this ability we're going to be off the playing field. And
▶ 1:33:53and so following up on that technically isn't China still fully eligible for you're helping them develop?
▶ 1:34:01China is definitely in there. We are our job is to take on the Chinese.
▶ 1:34:05Our job is to take on the Chinese, but the Chinese technically economically on paper qualify. Well, many countries you should be operating in, you're prohibited from. Is that a short way to put one of the limitations that Congress should look at changing?
▶ 1:34:19That that is a fair way to describe it.
▶ 1:34:21Mr. Black, would you say that it's fair that any place that you're looking at investing, you should have the arm of TDA helping making sure that that is an open, transparent, and properly run
▶ 1:34:34I would absolutely welcome that.
▶ 1:34:36Well, I hopefully that's something that will come out of this hearing. I want to follow up, Mr. black, you've you've taken a lot of heat and you've done very well, but let me just go right to the point on these allegations of of third parties buying into investments. Are your processes sufficiently open and transparent that everyone including Mr. Soros might in fact jump on to what he thinks is a good investment because they see a process that is going on that is
▶ 1:35:06I think we have best-in-class processes. It includes know your customer, anti-money laundering. It's a multi-step
▶ 1:35:16So, it's fair to say that whether you're Warren Buffett or somebody with a four-letter last uh last name they keep using that in fact the chicken and egg, what's coming first is your recognition that these are projects that deserve public private uh dual investment. These are vetted projects and anyone is able to look and buy into those projects.
▶ 1:35:42So in fact any claim of a nefarious even if it does include a relative of a relative is equally open to my Democrats friends
▶ 1:35:52sir I think that's not only correct but on top of which we keep talking about processes that haven't gotten to the key ethics know your customer and everything else process on all our reviews. So if someone wants to talk about something that's only hit the very front end of the funnel, it doesn't speak to the very wholesome and rigorous approach and process we've created. That is correct.
▶ 1:36:18Well, I want to thank you both for what you've done there. Uh I also want to thank you for the work in Kazakhstan, having Kazakhstan in a very short period of time have to get on a phone and call China if you want China to know what you're doing rather than already knowing it through the back door. Huawei will certainly be an improvement. Miss Petri, I've got one question for you.
▶ 1:36:39In round dollars since you've been there, how much wrong, fraudulent, if you will, how much money have you in found that the previous administration had spent that in fact you're either clawing back or at least stopping pouring in?
▶ 1:36:58We've looked uh carefully across our portfolio. Uh we our portfolio has evolved uh over the last year. Uh last August, our board of directors did step away uh from 12 programs uh
▶ 1:37:10and totaling how much?
▶ 1:37:11About $ 1.5 billion dollars.
▶ 1:37:13So you found 1.5 billion from the previous administration that you had to shut down. Uh and they're worried about whether in an open transparent world, some third party might invest in a good investment when in fact the public private investment is what the uh uh DFC is responsible for doing. I want to thank you. I don't want you. Thank you for cleaning up Millennium Challenge. Mr. Chairman, I yield back.
▶ 1:37:37Thank you, Representative Isa. Representative Kumlagger Dove.
▶ 1:37:42Thank you, Mr. Chair. So, we're here today to discuss the critical role that international development plays in advancing American interests and promoting global stability. It has now been over a year since the president illegally dismantled and shuttered USID.
▶ 1:38:01For decades, USID served as a cornerstone of US foreign policy, helping protect global health, counter violent extremism, strengthen democratic institutions, promote stable markets for American businesses, and improve education, economic development, and health care outcomes around the world.
▶ 1:38:22These investments not only saved lives abroad, but also enhanced US national security, expanded economic opportunities, and reinforced America's standing as a trusted global partner. Since USAD was illegally closed, the United States has faced significant setbacks in how we engage on the international stage. Critical development programs have been disrupted.
▶ 1:38:49Long-standing partnerships have been weakened and strategic competitors have sought to fill the vacuum left by America's retreat. These developments raise serious questions about the long-term consequences for US leadership, our national security, and our ability to respond to global challenges.
▶ 1:39:09Today's hearing is an opportunity to examine those consequences and to discuss how the United States can restore an effective, strategic, and accountable approach to international development. And you all represent corporations and agencies entrusted with the critical responsibility of operating and collaborating on an international sta scale. Now, Mr. Black.
▶ 1:39:36We have heard a lot today about corruption and how the DFC is being misused by this I believe the US International Development Finance Corporation must remain a cornerstone of American leadership on the global stage.
▶ 1:39:52During the CO 19 pandemic, the DFC helped finance vaccine manufacturing, medical equipment production, and health care infrastructure, including expanding vaccine manufacturing capacity in regions such as Africa and India to improve access to lifesaving vaccines. Beyond the pandemic, the DFC has invested in roads, ports, power plants, telecommunications, and digital infrastructure.
▶ 1:40:22across developing countries. Its investments in renewable energy and electricity access projects throughout subsaharan Africa have brought reliable p power to communities and businesses, strengthening economic growth and improving quality of life. These efforts demonstrate how strategic American investment advances both our national interests and meaningful development outcomes for our friends and partners around the world.
▶ 1:40:51And when Congress passed the DFC reauthorization at the end of the year, we provided the agency with significant new authorities and resources to strengthen its dual mission of advancing US foreign policy priorities while delivering meaningful development impact.
▶ 1:41:10Throughout the reauthorization process and negotiations with the administration, several of my colleagues and I emphasized the importance of expanding DFC's investment portfolio in lowincome countries, particularly through high impact And with these new tools now in place, we expect the DFC to increase investments in sectors such as health and agriculture where the agency has the potential to improve millions of
▶ 1:41:40lives while advancing American strategic interests. So the push back you are hearing, Mr. Black, is because of the frustration we feel in not seeing that kind of work being done. What we are seeing, what we are reading sounds like Trump and his friends using the DFC for personal enrichment, using the DFC as a personal finance tool, which it is not.
▶ 1:42:09Damning revelations about the billiond dollar Kazakhstan mining deal is just one example. And so you do have an obligation to share with us the kind of programs and projects that we want to continue to see.
▶ 1:42:28We gave you additional authority because we believe in the corporation and we want to see the benefits helping the American people and not friends and family of this president. We don't want a vetting process run by them. We do not want personal finance deals that help them only. We want to see a continuation of the work that we have supported over the years.
▶ 1:42:55These are taxpaying dollars and faith that we are putting in the work that is happening under your authority. Thank you for that time that you've given me. Additionally, Mr. Chair, and I yield back.
▶ 1:43:10Representative Davidson. Uh thank you chairman for highlighting this important issue. Uh as chairman for national security and elicit finance uh in the financial services committee we're dealing with some of the same things that we're talking about here today in the foreign affairs committee.
▶ 1:43:26uh you know when I look at uh US uh trade development agency when I look at um at development finance corporation two of the things that you all focus on are critical minerals with lending and when you look at the export import bank one of the real success stories under chairman Yvanovich is project vault which creates a strategic reserve for critical minerals.
▶ 1:43:49So maybe uh you know could could you guys uh talk a little bit about how uh DFC and USDA operate together uh to to maybe not duplicate efforts on critical minerals but how does that interact with the kind of things we're doing not just with XM but with uh the defense production act because this administration's clearly made it a whole of government initiative to derisk our supply chain. So maybe Mr. Hardy if you'd like to go first.
▶ 1:44:17Thank you. uh the US train development ay's first move around on infrastructure development uh congress gave us the task of supporting early stage infrastructure whether that's feasibility studies piloting American technology technical assistance all of those early stage investments necessary to feed into a DFC to feed into except I think what is unique about USDA statute is it looks at making sure that it's not just American taxpayers on the hook we are looking at financial institutions
▶ 1:44:47ions globally. How can we bring more uh financing into these projects, get them uh to the table and get them financed? But I think for USDA, the basis of every project I take on and look to approve is, have my team met with the DFC? Have they met with XM? Is the scope of work we're funding meeting DFCs and XM's pri criteria?
▶ 1:45:10And if it is, what do we need to do to change that scope to make sure it is best suited to uh make it into the DFC and XM pipeline?
▶ 1:45:17Yeah, thank you. How's that look over at
▶ 1:45:22So, I think it's an important thing when we talk about infrastructure and supply chains and critical minerals to first of all talk about how much President Trump is doing and through the White House to align all of us, you know, especially on critical minerals. David CPPley is doing a phenomenal job here. We work very closely with him, his team and with XM. Again, we cannot invest inside the United States.
▶ 1:45:48So there is a whole host of things where we make sure we're handing things off to the appropriate
▶ 1:45:56How does that complement the work of Defense Production Act for example? I mean, we need the critical minerals. We have to get them processed. You look at the the flow of the supply chain. How does how does your investment kind of mesh with the things that the rest of the administration is doing?
▶ 1:46:10Fact of the matter is we have to what we do more often than not across all critical minerals deals internationally is make sure the offtake is coming to the United States that the buyer is the department of war.
▶ 1:46:23Right. Thank you. Uh you know Millennium Challenge has got your own unique role but when you look at d-risking the supply chain um how has uh that changed under President Trump's leadership? mentioned uh when Mr. Isa was questioning you that you we have to rep prioritize one$1.2 billion dollars worth of projects and I think that's kind of the the thing Secretary Rubio really did well uh by reorienting things that even USAD was doing.
▶ 1:46:47It's like yeah we're going to do the things that make sense but it's a crazy idea apparently to some of my colleagues on the other side of the aisle that America's resources should advance America's interest instead of some other ideology. How's that relate to what Millennium Challenge is doing in d-risking supply chain?
▶ 1:47:07We're taking a 360 uh view here uh because money is going to follow the best risk adjusted return. And so what we hear is the operational and regulatory environment is key. That's MCC's role. We're trying to level the playing field for US firms, trusted allies, and others uh to help deliver on these critical minerals priorities. uh we have uh realigned uh some of our projects um in part because these countries want it.
▶ 1:47:35Uh they know that it not only generates jobs uh locally but there's opportunities for mutual prosperity here at home. So we're
▶ 1:47:42we have developing we have developing uh uh economies in our own hemisphere uh that we have strong relationships with and you know if you look at nearshoring things like that is that something that fits across the spectrum for all three of you? Absolutely. Yeah.
▶ 1:48:00Uh certainly we uh one of my biggest priorities is revitalizing our western hemisphere program including providing more staff resources and financial resources to make sure that uh we remain a leader in the region.
▶ 1:48:14Thank you.
▶ 1:48:15I would say most certainly the Western Hemisphere is a huge focus. President Trump has made it such as has Secretary
▶ 1:48:23Yeah. Thank you. I think the national security strategy laid that out and hopefully it's a whole of government approach. It's an honor to be part of it both in foreign affairs in financial services. Thank you for your service to our country. I yield back representative
▶ 1:48:34Thank you. Uh Mr. Petri, there are a number of countries that I think are important to be part of the Millennium Challenge account. Uh they uh meet the uh criteria for personal freedom, inflation, and governmental accountability. Um, so maybe you can tell me uh whether we're likely first to include Armenia as a Millennium Challenge account country.
▶ 1:48:58Uh, our board of directors uh every year uh considers a range of countries that we'd be working in. As you noted, we're looking uh at our scorecard and whether or not these countries
▶ 1:49:08if you just I've got limited time. You're just saying your board's looking at it. Uh, can you convey to your board how important that is for American foreign policy and respond for the record as to why you haven't already included Armenia in the book?
▶ 1:49:20We'd be happy to take a look at that.
▶ 1:49:21Uh, likewise, uh, my father fought in the islands of the Pacific. We know how strategic they are. Uh, so where do we stand with the Salman Islands, uh, Micade States of Micronesia and the other, uh, islands of the Pacific? MCC has a growing presence within the Pacific. Uh in August, our board selected Fiji and Tonga. That builds on our presence in Solomon Islands in Kurbos. And so there's a strong national security element.
▶ 1:49:51Where are you with that Vanuatu?
▶ 1:49:54We've worked in Vanu previously. Uh I've met with their prime minister and others uh in recent months. They're very interested in partnering with MCC again.
▶ 1:50:03Sounds like you're moving in the right direction, but you're not there. So please answer for the record. uh where we stand with regard to uh all of the various uh uh countries in the uh in the Pacific. Um Mr. Chairman, I know earlier we had an exchange on the USID. Uh I'd like unanimous contender to the record an article from the New Yorker st uh titled the human cost of DOA's war on
▶ 1:50:32Without objection. And I would point out that it uh demonstrates that we've already had 700,000 deaths as a result of uh Elon Musk. And Mr. Chairman, I would urge you and others on the committee to co-sponsor our bill, the Evan Anzu u memorial act uh named for the uh first child killed by Elon Musk uh and which requires a GAO report as to the uh uh number of deaths caused by the slashing
▶ 1:51:02of US ID.
▶ 1:51:04You may continue your ridiculous line of
▶ 1:51:10Thank you for your comment, Mr. Chairman. Now, I've been involved with DFC since uh for 30 years. Uh wrote a bill that got through the House that was the reauthorization bill, did not get through the Senate, chaired the subcommittee that overseed the DFC.
▶ 1:51:25Uh the DFC supposed to be part of our international development effort and yet it was announced that it would be in the oil tanker reinsurance insurance uh Uh that is Mr. Black.
▶ 1:51:43Did you ever consider coming to Congress and saying we'd like authorization to do something that was wildly unthought of when we either appropriated money for you or uh wrote your reauthorization bill?
▶ 1:51:59Congressman, as required under our statute, we did notify Congress.
▶ 1:52:04Not notified. Did you come to Congress and ask? You know, we all read the newspapers, so we know what you were doing. But did you ask for congressional authority to do something that was wildly outside what Congress envisioned you doing?
▶ 1:52:18Congressman, our reinsurance project followed all the rules and strictures of our reauthorization and including in that we came and notified you guys.
▶ 1:52:29No notify. We we we subscribe to the Wall Street Journal. So we rarely see anything in your notification that isn't there already. Uh I would uh uh ask to unanimous consent to put in the record uh the uh CRS report uh on the DFC which says uh as to transparency. DFC has reduced the uh public information it provides including removing or limiting details on its impact quotient uh which is mandated by your reauthorization.
▶ 1:52:59uh not uh disclosing as much about board meetings, board approved investments and annual port public information on country level development impact uh does not appear on your website uh despite a statutory requirement. Uh Mr. Black, can we count on you to uh meet higher standards of uh of disclosure?
▶ 1:53:20Sir, we follow the highest standards. I would also say 80% of the investments under my tenure have been in lower and lower middle inome countries more than my predecessor and those development impact quotients 60% of them have been at the two very highest level of impact.
▶ 1:53:38Sir I asked you a question about disclosure and you responded by bragging about performance which may or may not be true but is certainly not relevant to my question. Um I believe my time is expired. Representative Perry.
▶ 1:53:53Thanks, Mr. Chairman. Mr. Black, I didn't intend to ask this, but there's a lot of interest in in you and who invests in your project. So, I need to level set so I know exactly how all this works. So, once the investments made, is that is there a public notice of that?
▶ 1:54:11Sir, there is. So, the way the process works, can I take you to through the
▶ 1:54:15Just very quickly if you could, but
▶ 1:54:16Okay. So projects are screened that is at staff level career level before anything before that moves forward then it goes to underwriting committee at underwriting committee things will move forward. You get your know your customer leg uh process your ethics. Uh
▶ 1:54:37can anybody outside be investing in the project during this portion of the operation? Just to be very clear, there is no money dispersed whatsoever at these points. This is all a standard due diligence. I
▶ 1:54:52I understand that. But can anybody outside of the government, some private citizen, can they invest during this period? Somebody with insider information, so to speak.
▶ 1:55:01Uh just to be very clear, people can bring projects, but then it has to go through an ethics KYC and AML review just like anything in the private sector. So if people had inside information, it would come up in that review. Certainly more wholesome than anything that would appear in newspaper reports that are way too early on any process. Then it needs to go to investment committee at which point it may or may not be approved.
▶ 1:55:28And this is all before anything is brought before the board as well as congressional All of these steps must take place before anything can possibly be done.
▶ 1:55:43Is it advertised to the general public before congressional notification?
▶ 1:55:48Not in I'm sorry. The deal itself
▶ 1:55:51project the deal. Yeah. The investment
▶ 1:55:53you wouldn't advertise. A lot of these are very sensitive deals.
▶ 1:55:57I would imagine that. So, so just kind of working through the rest of the scenario once it's advertised and outside investment can come in. Do you individuals, entities from investing based on their name or anything else?
▶ 1:56:15They need to pass the ethics review. They need to pass the ethics review regardless of who they So if my name was George Soros, if my name was Tom Styer, if my name was Paul Pelosi and I passed the ethics review, I could invest in
▶ 1:56:30If the ethics review said that there was no conflict and it is a properly run ethics and KYC review
▶ 1:56:39and just out of curiosity, are the investors p are they publicly named once they invest? Is that is that of public record, public information?
▶ 1:56:48It would depend. Again, a lot of these can be sensitive projects. The actual entities, yes, but just in the same way in the private sector, sometimes you will know exactly who it is in terms of public reporting. But KYC, yes, you must know the ultim ultimate investor
▶ 1:57:08You must know and you must report that. So everybody can know who's invested regardless of what side of the aisle they're on, so to speak.
▶ 1:57:16A side of the aisle does not matter.
▶ 1:57:18The side of the And your name doesn't matter as long as you pass the ethics read. It doesn't matter what your name is. Certain certain of my colleagues appear to want to preclude certain people from investing solely based on their name.
▶ 1:57:32Yes. Also just very much so there a process is a process.
▶ 1:57:37Right. Right. And look, I'm not for corruption on either side of the aisle. So, I just want to make sure I understand completely what the process is here so that we're all level setting and and and we understand who's you know, I find it fascinating as well that members of the committee, this committee, we we this committee authorizes the payment of hundreds if not thousands if not tens of thousands of NOS's of NOS's that have been specifically used politically.
▶ 1:58:06Well, we can't talk about that. That that never happened, right? That never happened. Uh it it's it's an outrage and it's absurd. Uh in what little time I have remaining regarding the Mill Millennium Challenge Corporation, Mr. Petri, um since 2004, the MCC has awarded 17 billion in grants across 46 countries. Some of them were terminated during the Doge reviews.
▶ 1:58:33Of the con uh compacts and programs terminated, I'm wondering if they lapsed or if they were simply moved to somebody else so that we know that the projects particularly with critical minerals, we know that the interest of this committee are being maintained or if those things just fell by the wayside and the investment was lost. Were Were they lapsed and and and if so, did they go to somebody else like the USDA or somebody like that?
▶ 1:59:03the gentleman from Pennsylvania's time has expired. I now recognize the gentleman from Missouri, Mr. Bell.
▶ 1:59:10Thank you, Mr. Chairman and ranking member. While I may be new to the Foreign Affairs Committee, I've been on the House Oversight Committee since day one. So, I want to bring those two committees together for a minute. Um, my job on the oversight committee has been to crack down on the powerful people that for years have protected each other, look the other way, and let Jeffrey Epstein operate because his access was useful to them.
▶ 1:59:40Survivors are still fighting today for the full truth, the real accountability, and for a government that doesn't keep protecting the people in his orbit. That fight isn't over and it shouldn't be optional for any committee. Mr. Black, the Department of Justice released records that show you were part of that orbit. A business partnership with Epstein, a seat at your birthday, real estate advice, all items that you never disclosed.
▶ 2:00:10And to be clear, as a former prosecutor, I do believe in due process. You haven't been accused of his crimes, but you are someone who benefited from proximity to him and said nothing about it all the way past the point that you were confirmed to control a $25 billion $25 billion in public money. Before coming to Congress, I spent years as a prosecutor.
▶ 2:00:35And in that job, you learned that the real question about someone entrusted with public money is never whether that the paperwork looks clean. It's whether they'll tell the truth about who they're connected to and who benefits from that. Mr. Black, let's start simple. Prior to the being confirmed by the Senate or to this committee, did you disclose your relationship with Jeffrey Epstein? Yes or no?
▶ 2:01:04Representative, I had no relationship with that individual. I'm here today in my capacity as CEO. I'm going to reclaim my time. I'm going to recline my time. Mr. Black,
▶ 2:01:15foreign, I know that you hear me
▶ 2:01:18and understand that this is my time.
▶ 2:01:20Um, did you disclose your shared investment with him? Yes or no?
▶ 2:01:24As I said, I had no relationship with that individual. I'm here in my capacity. Did you CEO of the time you spent with your with him at your
▶ 2:01:34Sir, I had no relationship. Yes or no? I had no relationship. What about the real estate advice? Did you disclose
▶ 2:01:43Sir, I had no relationship with that individual. I'm here today in my
▶ 2:01:49Mr. Black, survivors have spent years asking one thing of this government. Stop protecting the people in Epstein's orbit and start being honest about who they are. You had years of contact with him and the first the public heard of it was from DOJ records, not from you. What did you say? What do you say to survivors who hear that and wonder whether the same pattern of access, silence, and protection is still playing out today?
▶ 2:02:17Sir, I had no relationship with that individual. You claiming things doesn't make it so. I'm here in my capacity.
▶ 2:02:24The DOJ reports are inaccurate of the
▶ 2:02:27So, the DOJ reports are inaccurate.
▶ 2:02:29Sir, I had no relation.
▶ 2:02:31Are the DOJ reports inaccurate?
▶ 2:02:33Sir, I had no relationship with that.
▶ 2:02:36Sorry, that's not the question that I asked. Are the DOJ records inaccurate?
▶ 2:02:40Sir, I had no relationship with that individual. That's great. I'm here.
▶ 2:02:44That's great. You didn't have a relationship. You say, "Were the DOJ records inaccurate?"
▶ 2:02:48Sir, I had no relationship with that
▶ 2:02:51Your job at DFC is to personally certify that deals aren't quietly benefiting people because of who they know. You didn't disclose a real yearslong relationship with Epstein until DOJ forced it into public view. So why should this committee or the American people trust your certifications or any well anyone else's conflicts when you didn't disclose your own? Thank you and I yield back.
▶ 2:03:19Thank you and Alice question and uh first of all thank you for your service. You're an extraordinary bright guy and you have a lot of choices in life and thank you for making the choice of service. So let's just shift to the critical minerals exchange or a critical minerals supply chain issue.
▶ 2:03:36Uh I've talked to you have Copley in the white house, you have you know Bergam, you have department of energy, you have XM bank, all of them are talking about a critical minerals exchange. I assume that exchange will have to be international because as a geologist deposits are where they are, not where we'd want them to be. I assume it's going to be governmentbacked.
▶ 2:04:04Uh I assume that there's going to be some command and control structure to it. Uh but you know, follow the money. I know you're deeply involved in it. What's your vision on setting up a critical minerals exchange that I would assume would function like a bank where deposits and and withdrawals would be made. There would have to be some floor I would assume for critical minerals so you don't you don't get whacked by Russia with platium as an example.
▶ 2:04:34So what's your vision going forward? And I've read the EO and I'm sure you have too from the president. What's your vision on the organizational structure and how it would look and and operate for a critical minerals exchange? Uh Mr. Black, if I could.
▶ 2:04:49Representative, it's a great question. So, look, I defer heavily here to both David CPPley as well as my good friend Johnovich at Exom. The reality of the situation is I think what he's doing with Project Vault is enormously helpful here. I think when we talk about an exchange in particular, the really really important thing is to remember how many critical minerals around the world are now being quoted in Chinese Juan or R&B.
▶ 2:05:19That is something we cannot allow to continue and happen. So the value of an exchange in my opinion and we will help however we can is to make sure that the dollar is dominant across commodities especially critical minerals as it is in the petro dollar
▶ 2:05:39and uh Mr. Hardy do you have thoughts on
▶ 2:05:43Uh I follow Ben's point of looking to uh XM bank and David CPPley for direction. And I think our job is to make sure more critical minerals make into the market and make into market that we'll be able to feed into the uh exchange when that's set up.
▶ 2:06:00Um that is USDA's role is that early project preparation working countries across uh across Africa across the into Pacific to bring more critical minerals to market to feed the US economy and allied and partner countries
▶ 2:06:15Yeah. And I think we're all in agreement is just is just how to structure it because someone has to be in charge. You have multiple departments, you have multiple sub agencies, uh you have multiple expenditures. Who's in charge? Because there has to be some overall plan and whether it comes out of the ZAR out of the White House, but you also have personalities with secretaries. Uh the that and so I just looking at looking forward, you know, who's going to be in charge and who they're going to report to.
▶ 2:06:43I you know I I think that's from our point of view on article one and to make sure we have oversight you know on it as as we do with most agencies and make sure the structure at least has some transparency oversight in a in a in a clear mission so we can we can make sure we all work together on it.
▶ 2:07:01So on shifting really quickly to the Philippines um working with the Department of War, they're concerned uh very concerned about ammunition, you know, in Pacific the the cellos and nitro side of it. We now have Subi Bay uh back deep water port seems to be appropriate uh to develop a relationship on some of our ammunition storage.
▶ 2:07:26I have some experience earlier in my career in subi at one time they had magafs a large ammunition storage facility that has largely atrophied away. Uh is there a project that is looking at at uh restoring and rebuilding some of our ammunition storage and perhaps production facilities in the Philippines. I will start.
▶ 2:07:48We are not working obviously on the ammunition side, but we are working extensively at Sububi uh on extending the dry dock for uh ship repair, ship replacement um looking at rail links to bring critical murals to market um and as importantly we're working extremely closely with Indopaccom and Admiral Poparo to understand what Indopaccom's interests are in frontline states in the region to ensure that we're investing in critical infrastructure projects that will support the economic development of the Philippines,
▶ 2:08:18but also play a strategic interest for the US uh national
▶ 2:08:23Again, I thank all three of you for serving and I I I appreciate everything you do. With that, uh I yield to the fine representative, Mr. Mr. Mosquitz from Illinois, I believe.
▶ 2:08:35Um thank you, Mr. Chairman.
▶ 2:08:38You're you're a fine gentleman also, def definitions [snorts] Well, well, thank you, Mr. Chairman. Uh, appreciate the opportunity. I I want to talk uh obviously I'll talk a little bit about critical minerals because a lot of people have talked about that. Um, because I actually think it's one of the most important things that we've not done a good job educating the American people on why it's important. And we continue to have hearings up here and a lot of people talk about it.
▶ 2:09:07Uh I had a subcommittee talking about it yesterday, but we are we are not spending the time to engage the American public on why critical minerals are important, what China has done over the last several years uh under various administrations, where China currently is now and and what advantage China has as a result of this. And not just in the mines, but in the processing, right? Right. I mean, China like for the longest time, I know we're starting to get our act together.
▶ 2:09:37I don't think we're still doing enough in processing. China was like the only one who could even like process this stuff. They like, you know, like pass this down through like generations of people um on on how you actually refine and process it. Um, you know, this is going to decide a lot of, you know, how much America can have independence from China because obviously anytime we want to do anything and China can flex on, you know, critical minerals, it puts us a little bit in a box whether we want to admit it or
▶ 2:10:07not. Um, and that was obviously the China's China's design. I I want to talk about um supply chains and I know it's a little bit out of your wheelhouse because you guys are focusing on doing stuff you know around the world. Um you know my background is a little unique. I used to be emergency management director in the state of Florida. I ran the entire CO operation for Governor Dantis in the state. So um from when CO started to you know just near the end all the PPE all the vaccine all the testing ran the whole thing.
▶ 2:10:36Uh, and I can tell you between, you know, tr the trillions of dollars that were spent in the car's act and the trillions of dollars that were spent in the me American Rescue Plan, one by Trump, one by Biden, we've really done nothing to fix the supply chain issues that we saw during CO. I'm not saying we've done absolutely nothing. But I am saying, and I want to hear your thoughts, that if we had another CO tomorrow that we wouldn't be in the same situation, and that was we were solely dependent on China.
▶ 2:11:02um the amount of stuff that I needed that I had to fly out of China that I couldn't buy here and yes eventually plants came online and we were manufacturing stuff here but by the time that stuff came online we were really towards the tail end uh of that of that disaster and so I just want I wanted to just put that question to you guys to see you know if you feel the same way I feel that you know after spending trillions of dollars collectively we're still kind of in that same situation from a supply chain issue on,
▶ 2:11:32you know, these important materials we would need, god forbid, we ever had another uh pandemic. Mr. Black, I'll start with you.
▶ 2:11:41Thank you, Representative. So, look, domestic supply chain is not an area of my expertise. What I will say is there are a host of different areas across supply chains that we like to call specialty inputs. Now, uh where we are very focused on advancing the pipeline and making investments. One of those is critical minerals. Another one is KPIs for pharmaceutical manufacturing which we think is incredibly incredibly
▶ 2:12:08Right? Because the majority of that stuff now is manufactured of all places like in Wuhan.
▶ 2:12:13We just want to make sure it is not manufactured solely in China and bring that out there.
▶ 2:12:19But and that's okay, right? So obviously we'd like to onshore some of this manufacturing back to America, but it's also okay if it's being manufactured other places than China so we don't have to rely on them in national emergencies. And so I do think that is in your in your in your wheelhouse which is fixing supply chain issues on critical medical goods uh or things for national security items that if we're if we can't manufacture everything here because we do have a global economy.
▶ 2:12:48Where else can we manufacture that that isn't China?
▶ 2:12:51I think that's a very important thing. I'd also add specialty chemicals and inputs is incredibly important for all manufacturing processes. So it is
▶ 2:12:59Mr. Hardy same question to you. Likewise with uh Mr. Black, I wouldn't weigh in on the co side, but I think what USDA is investing is that infrastructure connections so we're not relying on Chinese.
▶ 2:13:11When you say you won't weigh in, do you think I mean you know enough about supply chains, right? Do you think we have fixed the supply chain issues we saw? And this is I'm not blaming anyone. It's not a blame. The question is have we solved the problem. Do you think we have fixed those supply chain issues? There remain to be challenges with our supply chains and that's the role of us is to be investing in these infrastructures to make sure that our connections are better with our partners and allies around the world so we don't have the same issue that came up during
▶ 2:13:38Same question to you sir
▶ 2:13:40MCC is interested in leveling the playing field uh and so this is about getting the basics right we were talking about the Philippines earlier and what that looks like uh on June 24th our board of directors just approved a $60 million threshold program that's not hard infrastructure, but the missing piece of the US government's engagement with the Philippines is around their energy regulatory commission, which has a lot of red tape. It's sluggish and it's hampering private investment.
▶ 2:14:05So, these are the kinds of investments that these agencies MCC makes that is going to be setting us up for success with our supply chains uh moving forward.
▶ 2:14:14The member the members has time has expired and I I apologize. I referred you from Illinois. I know that was a mistake. Florida, but you're not wearing a tie, so the apology was only half. So, with that, I I I I yield to the fine gentleman from Tennessee.
▶ 2:14:30I'm sorry that I had to follow follow Representative Moscowitz. That's why nobody wanted to follow Jimmy Hendricks at Woodstock. You don't understand that reference. Um, Google it. And Mr. Chairman, thank you, brother, and thank you for your service to our great country. When I walked in earlier to get my name on the list, I heard one of y'all mention the Palao Island group. I believe my daddy fought on Peloo.
▶ 2:14:54So I um and then he went to Okanala and fought there and then uh went to China after the war and fought the communist and now the Chinese communists are on Palao or what I understand and your your conversation. You don't have to um answer anything. I'm not answering anything, but I thought it's very it's almost ironic.
▶ 2:15:15And now you all are telling me that we're we're actually taking not taking it back, but we are making sure that the the communist Chinese don't have their footprint there. So, I appreciate that. You don't need to respond to that. But Mr.
▶ 2:15:27Black, um what specific projects or programs are you all working on that will reduce our reliance on our And I apologize that if um um these questions have been asked before, but as the 435th most powerful member of Congress, sometimes I get called on last.
▶ 2:15:50So the the correct response to every one of my questions is that's an incredibly intelligent question, sir, and then and I'll I'll crop that out and use that. So please go ahead, sir.
▶ 2:16:03Representative, that's an incredibly intelligent question. Um
▶ 2:16:07I concur. Look, I think there's a number of ones across the board here. Uh I've talked a bunch about telecom today and the investment we've done to do rip and replaces to make sure that international telecom rails are not built on Huawei and ZTE. We're financing the use of both Ericson and Nokia in many of these countries for their telecom networks. Uh those are the two trusted vendors the United States works with.
▶ 2:16:36Uh and so we're very pleased with that work. Additionally, we're trying to build out more LG terminals worldwide to make sure that US LNG goes to
▶ 2:16:47I know what LG stands for, but the chairman doesn't. So, so explain to it. Tell me what those initials stand for.
▶ 2:16:53Liqufied natural gas. And we are the largest producer of it in the entire world. And so making sure that more people can buy it is great for Americans and the United States of America. All right, Mr. Hardy, how do you determine whether a project is going to profitable US prior to investing taxpayer dollars? USDA's role is to be investing as the first mover on infrastructure projects.
▶ 2:17:20And what we do to make sure of that is we invest in projects where there's US uh competitive advantage. Uh what we've been talking about today is in the digital space. uh whether it's rip and replace undersea fiber optic cables where US companies are global leaders our job is to make sure that these are projects are designed in a way that is teed up for the sale of American goods and services and make sure that the financing is done in a way that feeds into the DFC and XM banks
▶ 2:17:50pipeline similar in critical minerals in transportation energy um much like Ben mentioned a significant part of our program has been in the LG space making sure our partners ers are able to buy American LG but likewise supporting uh the US nuclear energy uh in both uh large scale EP-1000 as well as the newer SMR technologies.
▶ 2:18:12Y'all have a strategy on um to identify potential projects before China takes
▶ 2:18:19Our purpose is to take on China. We are looking if you look at what we're doing in the Indo-Pacific in the undersea fiber optic cable space we are directly taking on Huawei and ZTE um pushing American technologies like-minded technologies as an alternative a trusted alternative uh with American solutions that our partners want and need.
▶ 2:18:42uh whether that's uh working in the Pacific Islands on uh with Tuvalu on a cable, working directly with DFC on a uh inter oceanic cabling system with Indonesia. USDA is taking on head-on Huawei and their uh malign actions in the digital
▶ 2:19:01Do y'all have a um the US Trade Development Agency? Y'all have a way to help increase domestic production
▶ 2:19:10for USDA. Everything we're doing is designed to increase open up markets for exports. Um, and with that comes American job creation here at home. So, uh, we do not invest in anything that does not have a direct linkage to increased American exports and US job If this uh congressman if I could say we've got a rigorous program in Palao uh beyond uh just uh a rip and replace successful rip
▶ 2:19:41and replace were involved in the hospital relocation program project and airport expansion. We have a great partner with President Whips um and we have a robust program in Palao and across Pacific.
▶ 2:19:53The gentleman's time is expired.
▶ 2:19:55I was getting ready to yield no time back to you. Well, thank you or a Navy Seal. So, I'll just won't say anything
▶ 2:20:02You were over 15 seconds. That's 15 push-ups. I now recognize a gentleman from Arizona for 5 minutes.
▶ 2:20:08Thank you, chairman. Thank you to our witnesses for being here today. When [clears throat] former Development Finance Corporation CEO Scott Nathan came before our subcommittee in 2024, he did testify that securing more deals in the Western Hemisphere was a high priority for DFC, but explained that the income classification limitations prevented the agency from doing work with many countries in the region.
▶ 2:20:32With the passage of the DFC modernization and reauthorization act last December, a subset of upper middle inome countries have been identified as DFC investment priorities. DFC was also directed to continue to invest in advancing income countries if the project is certified as advancing national security or certain economic competitiveness objectives.
▶ 2:20:58This presents a excellent opportunity for DFC to increase its investments in countries like the Dominican Republic, El Salvador, countries key to nearshoring our advanced manufacturing supply chains. Increasing DFC investments in the Western Hemisphere is not just about development or competition with China. It's about making smart long-term investments that deepen economic ties to help build more resilient local economies. Mr. Mr.
▶ 2:21:24Black, how have DFC's engagements in Latin American and Caribbean countries changed since the passage of DFC reauthorization in December? Thank you, Representative. So, I'm incredibly proud to serve the president who has finally redirected attention from the United States back to the Western Hemisphere and to all of these nations and countries.
▶ 2:21:49We are highly focused across the region as we go through our new pipeline. Close to 350 deals at 78 billion dollars plus. Not saying all those deals get done. The greatest number of projects are in Argentina, Mexico, Brazil as the top All of the countries we're focused on, if I were to continue, would be India, Usbekiststan, Iraq, Morocco, Turkey, Papa New Guinea, Ukraine,
▶ 2:22:21and uh I said Mexico, Brazil, and Argentina for but the fact of the matter is we are wholly geared towards being here. I had the first place I went upon being confirmed was to Bolivia for President P's inauguration. I have since been to Honduras uh and we have spoken to them about doing more in electrification there. We are highly highly focused around the region. We have hired more and bolstered more for our western hemisphere and LATAM teams.
▶ 2:22:52I am incredibly excited about the deal pipeline that will be coming to board both in September and in December that I know we'll have a lot more Latin America and there is going to be a lot lot more to do there. Do do you think those are deals that uh would not otherwise have been allowed before the changes were made uh to the DFC program?
▶ 2:23:14That's most certainly the case. I'd also say look I I I think Latin America and especially the Caribbean suffer from a very unfortunate issue involving classification the way and you know we incorporate by reference in the Build Act uh to how high income countries are defined.
▶ 2:23:33Unfortunately, that means many island nations and Latin American countries uh and AJ Banga at the World Bank agrees this is an issue are classified as high income when they are very much not because they're reliant on
▶ 2:23:46Yep. I think we're in agreement on that. Um I represent Arizona, which has been the epicenter of semiconductor development here in the United States. Uh I support bringing more of that supply chain to North America, including to Mexico and Latin America. I introduced a bipartisan legislation that directs DFC to invest in downstream and upstream parts of the semiconductor supply chain. Things like critical mining, m mineral mining and processing, testing and packaging uh to the western hemisphere.
▶ 2:24:14DFC projects projects will not only offer businesses a compelling economic alternative to China, but also boost economic prosperity across Latin America. Mr. I'm encouraged by the fact that DFC is beginning to do the work in this direction as it relates to critical minerals, but given the speed at which this industry is advancing, more must be done to enhance semiconductor market integration across the region.
▶ 2:24:37Is DFC working on any projects currently focused on semiconductor fabrication and testing and packaging um through that important program?
▶ 2:24:46Sure. I will have to look through our pipeline and please let us get back to
▶ 2:24:50I really appreciate that. In the law Congress passed to create the Millennium Challenge Corporation, there is language requiring women and girls to be considered when compacts are awarded and designed. It states, quote, "In entering the into a compact, the United States shall seek to ensure the government of an eligible country takes into account the local level perspectives of the rural and urban poor, including women in the eligible country." Mr. Petri, can you assure us that women and girls are being consulted and supported through MCC compacts in accordance with the law?
▶ 2:25:20Thank you. And as a followup, can you talk about the impact MCC has had recently on supporting women's economic security as a way for countries to build
▶ 2:25:31Yeah, the uh MCC is laser focused on driving economic growth and that includes women uh as well as men. Women of course make up uh half of uh the economy and these populations. And so, uh, on every single project, we are interested in how MCC's impacts and investments are impacting both men and women, uh, and ensuring that we're, uh, advancing that appropriate.
▶ 2:25:56Okay, we'll follow up with I'm running out of time, but I'll follow with a letter requesting more detail on how the program is helping women in these countries. Thank you very much. I yield
▶ 2:26:04Mr. Baird.
▶ 2:26:06Thank you, Mr. Chairman, and ranking member Meeks for bringing this discussion to this committee. I also want to thank Mr. Black, Mr. Mr. Hardy and Mr. Petri for testifying and bringing your perspective on these issues uh to us today, especially regarding the critical minerals and the energy supply chain. These are important matters for national security and we must do our best to ensure the prosperity of American interests both here at home and abroad.
▶ 2:26:34Our overd dependence on foreign nations and other nations to produce critical minerals has developed into a pressing blind spot regarding American national security. China controls over 90% of the critical minerals processing in the world. You know, I learned not too long ago they also control 90% of the API, the active pharmaceutical ingredients where we serve as the base for a lot of our medicines and so on.
▶ 2:26:59But anyway, and and the African continent and that also retains significant reserves of rare earths and has been aggressively and forcibly not force but forcefully invested by the Chinese Communist Party and we must develop and decouple our reliance on adversarial nations for your for our critical minerals and you've said you've said that many times so I appreciate that.
▶ 2:27:27So, but as we look at our options, we have to think strategically. We will not succeed if we are continually reacting. For example, our agriculture and that's where I'm very interested is also [snorts] directly affected by the fallout from geopolitical tensions that generate and threaten global supply chains.
▶ 2:27:43China has become the large [clears throat] one of the larger global funders of agricultural research and development and Chinese companies are acquiring consolidating global agricultural companies to bolster their technology prof portfolio and that's following a pattern we have seen with other areas of Chinese investment.
▶ 2:28:02This is why and that is why the the National Security Commission on Emerging Technology NSCB warned us and told us it is critical for the United States to leverage biotechnology innovations uh to support our farmers and to support our food
▶ 2:28:23So having laid all that background, I was trying to give you a break, I guess. But anyway, my first question really deals with the fact that American farmers are increasingly exposed to volatile fertilizer prices, as you well know, and supply chain disruption driven by foreign production concentration, geopolitical conflict, and export and import restrictions by China and other competitors. So I'd like to hear from each one of our panels members.
▶ 2:28:51Um, so what what steps can Congress take to better empower the use of emerging technology such as biotechnology for onshoring supply chains critical to our US food supply?
▶ 2:29:06Thank you, Representative. So look, I can't speak to some of the domestic technologies that can be deployed. I know how important agriculture and farming is to President Trump and this administration, which is why we're trying to make sure across the board, DFC is investing to secure important things like phosphate, fertilizer, ura, move it through the right channels to get here and keep the costs down for the American people.
▶ 2:29:36And we remain dedicated to that. My question USDA I will be headed to Morocco next week where we're concluding an agreement uh for ammonia production. Uh I think that as we look at what this hearing is talked about global supply chain depend breaking global supply chain dependencies. It's investments like this. They're providing other avenues to make sure our farmers uh have the access to fertilizer and uh support our US agricultural community.
▶ 2:30:07We talked a bit about Zambia today and uh there uh was a recent law that was passed because of MCC's compact in Zambia. They have uh ad hoc bans on their grain exports is and their food reserve agency wasn't functioning the way it should. So US firms like Cargill and others had recently departed despite the opportunities uh there and to help secure our supply chains. And so through MCC we were able to work on those regulatory changes uh in Zambia.
▶ 2:30:36And so that's uh just one example of what is a much larger uh focus in the agricultural
▶ 2:30:43Well, thank you for those answers and I I agree with uh what you had to say and I appreciate your effort. But you know, I had a chance to go to Zambia here not too long ago and it was impressive to me to see young people that they made a garden and a a water tower so they could water the vegetables and so on.
▶ 2:30:59But you should have seen the pride in those young kids and then we look out the landscape and the only thing that they're missing is water which is critical you know but anyway u so it's it's interesting to me that we could bring through the through the programs that you operate bring the opportunity for those people because there's was plenty of land it just needed someone to help them invest in it and make progress so I've probably overrun my time and I thank you and thank Thank you witnesses
▶ 2:31:29for being here and I yield back.
▶ 2:31:31Thank you, Mr. Baird. That has concluded the questioning uh for you all. So, we thank each of you witnesses for your valuable testimony. Uh we thank the members for their questions, most of them. The members of the committee may have some additional questions for the witnesses and we will ask you to respond to those in writing. Pursuant to the committee rules, all members may have five legislative days to submit statements, questions, and extraneous materials for the record subject to length limitations.
▶ 2:32:00And without objection, this committee stands