April 2, 2025 (WASHINGTON) – This testimony for the record was submitted by the Modernizing Foreign Assistance Network (MFAN) Executive Director Tod Preston
Chairman Diaz-Balart, Ranking Member Frankel, and Members of the Subcommittee:
Thank you for the opportunity to submit written testimony on behalf of the Modernizing Foreign Assistance Network (MFAN) regarding fiscal year 2026 (FY26) appropriations.
MFAN is a bipartisan coalition created in 2008 to advance policy reforms to further enhance the effectiveness and accountability of U.S. foreign assistance in order to maximize the impact of these programs in the field and for U.S. taxpayers. Our members are highly dedicated to this mission because they have seen first-hand how lifesaving and transformative international development and humanitarian assistance is and the many ways it benefits the United States.
MFAN’s policy priorities include:
· Continuing to elevate development as a distinct arm of American global engagement;
· Supporting evidence-based development programs, building on accountability and principles of monitoring, evaluation, and learning;
· Building and expanding the U.S. Government’s (USG) partnerships with new and diverse stakeholders, including national and local actors;
· Boosting financing for development, including through greater partnership with the private sector;
· Utilizing new and innovative approaches to development; and
· Improving coordination and collaboration among all USG agencies involved in foreign assistance.
For decades, international assistance has proven to be a key instrument for America’s influence and strength and our humanitarian values. In addition to a strong military and diplomatic corps, development and humanitarian assistance are key tools for addressing the threats to U.S. security and prosperity – such as increased aggression from China and other adversaries, unprecedented levels of forced migration, and extreme weather events – and to saving lives and helping foster peace and prosperity.
It is for these reasons that the sweeping actions by the Administration in the last two months are so deeply concerning. The dismantling of USAID, the stop work order on international assistance programs, and the subsequent termination of thousands of programs approved and funded by Congress without any real review of their merits is reckless and irresponsible. The abrupt nature of the suspension and termination of life-saving programs is imposing great hardship in many areas around the world and causing needless suffering. In addition, this retraction of American engagement has created a considerable vacuum into which our adversaries, competing with the U.S. for power and influence, are taking advantage.
It is against this backdrop that we strongly urge this subcommittee, along with your counterparts in the Senate, to insist on and exercise your constitutional role of jurisdiction over foreign assistance funding and implementation. Among other items, Congress should carefully review and lead any proposed reorganization of foreign assistance agencies (pursuant to the Foreign Affairs Reform and Restructuring Act of 1998 and other statutes) and insist on full and transparent engagement by the Administration moving forward. We also urge you to ensure that all U.S. agencies managing international assistance have the professional expertise and the staffing and operational capacity to translate funding into timely and effective programs.
Recommendations for International Assistance Restructuring
MFAN strongly prefers retaining an independent U.S. development and humanitarian assistance agency, as established by Congress. In light of the Administration’s moving forward with the closure of USAID, however, we have recently issued (see The Future of U.S. Development and Humanitarian Assistance: Recommendations for Influence and Impact) detailed recommendations about how best to structure and manage development and humanitarian assistance if they are to be housed in the State Department.
We believe these recommendations are vital to prevent a further erosion of America’s capabilities to address global crises and advance our strategic interests --- and bring greater alignment and cohesion to the USG’s work. The March 28 Congressional Notification on reorganization that the Administration has sent to Congress, by contrast, will exact further decimation of these capabilities by fragmenting programs across the Department – and without senior leadership and clear lines of authority. This will greatly hinder the scale and impact of international assistance on critical national security and economic issues, while also leading to inefficiencies.
Creation of the Deputy Secretary for Development and Humanitarian Affairs:
It is important that U.S. international development structures (as previously led by USAID) maintain their cohesiveness with the most senior leadership within the State Department while aligning with U.S. foreign policy priorities. All development and humanitarian programs should be integrated into a single function under a Deputy Secretary, placing development and humanitarian leadership at the level of the other two deputies (for political affairs and management) and at the same level as the heads of the U.S. International Development Finance Corporation (DFC) and the Millenium Challenge Corporation (MCC).
Specifically, MFAN calls for the creation of the Deputy Secretary for Development and Humanitarian Affairs. This Deputy Secretary for Development and Humanitarian Affairs would oversee a number of existing and new bureaus and offices, including:
· A new Bureau of Humanitarian Assistance, including the current Bureau of Population, Migration and Refugees (PRM)
· A new Bureau of Development Assistance, encompassing aspects of energy and environment currently handled by the Bureaus of Energy Resources (ENR) and Oceans and International Environmental and Scientific Affairs (OES), such as water and sanitation currently under OES, as well as food security and nutrition currently under the Global Food Security Office, education, economic development, and innovation programs
· A new Bureau of Global Health, including the existing Bureau of Global Health Security and Diplomacy and PEPFAR
· A new Bureau of Good Governance, including the current Bureau of Democracy, Human Rights, and Labor (currently under Civilian Security, Democracy, and Human Rights)
· The Office of Foreign Assistance (currently under the Deputy Secretary for Management and Resources)
· The Office to Monitor and Combat Trafficking in Persons (currently under Civilian Security, Democracy, and Human Rights)
· The Office of Global Women’s Issues (currently reporting to the Secretary of State)
Streamlining these functions and expertise under one Deputy Secretary, rather than being scattered across multiple bureaus as proposed by the Administration, will increase the impact of foreign assistance on critical national security and economic issues. Among the new Deputy Secretary's top priorities should be to synergize the surviving elements of U.S. foreign assistance around these issues.
MFAN also recommends that the Deputy Secretary for Development and Humanitarian Affairs be designated as the Board chair of the MCC and DFC to ensure alignment with U.S. interests and a focus on the role of economic growth to address underlying, systemic barriers to growth that position countries at the point where MCC and the DFC can engage. This will ensure that the MCC and DFC are coordinated and aligned with larger development functions.
Principles and Functions for International Assistance Restructuring
In structuring and aligning the development and humanitarian functions within the State Department, MFAN also urges adherence to these principles to help ensure streamlining, reform, and best practices:
Promote Country Self-Reliance and Aid Transitions:
· Design programs that empower local governments and communities, aligning assistance with national development plans with a focused goal of transitioning countries to be self-sustaining economic and security partners
· Help governments to adopt evidence-based policies, mobilize their own domestic resources for development, and build institutions capable of effective implementation
Foster Economic Growth and Trade Partnerships:
· Better coordinate economic growth programs with the MCC, DFC, and private sector actors to foster sustainable investment, trade, and innovation
· To create trading partners, build local financial markets, support entrepreneurs, create jobs, and de-risk investments
· Build economic growth that is broad-based, self-sustaining, and brings those at the bottom of the economic ladder into a market-based economy
Strengthen Innovation:
· Thoroughly integrate the U.S. private sector -known for its ability to adapt and innovate - into all in U.S. development efforts
· Use catalytic funding to invest in innovations with proven social impact and cost effectiveness that can be adopted at scale
Advance Policy, Learning, Planning:
· Ensure there is a robust policy, planning, and learning function that includes a focus on evidence on cost effectiveness, efficiency, results, and return on investment
Conclusion
International assistance has long been a bipartisan pillar of American goodwill and our strength and influence. The Administration’s recent decisions to halt and terminate thousands of aid programs and dismantle USAID are alarming, causing widespread suffering and weakening U.S. influence and leadership. MFAN urges the members of this subcommittee to work to remedy the damage that is being done and to strengthen rather than decimate our nation’s development and humanitarian tools.
