Hill’s legislation promotes U.S. interests at international financial institutions

U.S. Rep. French Hill (R-AR) on Nov. 14 sponsored a bill to promote the interests of the United States at international financial institutions (IFIs), which include the World Bank, the International Monetary Fund, and regional development banks, among others.

If enacted, H.R. 9292 would grant authority to the U.S. Treasury Secretary to waive voting mandates at IFIs on a case-by-case basis, a move that would reaffirm U.S. leadership on the global stage, according to a bill summary provided by the congressman’s staff.  

“U.S. representatives to the IFIs are subject to congressional mandates that dictate which projects or policies the United States can support,” Rep. Hill explained. “Certain outdated mandates can be counterproductive to U.S. interests at the IFIs. This legislation would provide the U.S. with targeted flexibility to pursue our strategic interests and enhance international cooperation.”

Over the past five decades, Congress has increased its oversight and direction of the IFIs through voice-and-vote legislative mandates that dictate which projects and policies the U.S. can endorse. Rep. Hill thinks the mandates can sometimes be outdated, incongruous, or in conflict with other U.S. priorities, thereby inhibiting the effectiveness of the IFIs.

Specifically, H.R. 9292 would provide the Treasury Secretary with pilot authority for three years to waive voice-and-vote mandates at the IFIs on a case-by-case basis to allow the U.S. to better pursue broader goals and enhance international cooperation, the summary says.

Additionally, the Treasury Secretary would be required to report semi-annually to Congress with a written list of waived voice-and-vote mandates, and to review the existing legislative mandates and submit recommendations to Congress within 12 months of the bill’s enactment to revise or waive certain voice-and-vote mandates, according to the summary.

H.R. 9292 is based on H.R. 5888, an earlier version of the bill that Rep. Hill proposed during the 116th Congress that stalled in the U.S. House Financial Services Committee. H.R. 9292 is now under consideration in the same committee.