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Dear Board of Directors,

Well there’s no shortage of headlines as we near the end of this August recess!

I just sent a public note to our entire coalition with an update on the new rescissions package, but I wanted to share a private and close-hold download with the Board.

1. POMPEO IS IN THE FIGHT. After the Washington Post story<https://www.washingtonpost.com/world/national-security/trump-administration-is-considering-pulling-back-3-billion-in-foreign-aid/2018/08/16/05adc086-8e36-4265-b887-b481124a64b4_story.html> reported on the rescissions proposal – which I’m quietly pleased to say our team “encouraged” – we learned that Secretary Pompeo got fired up and began fighting back against OMB’s proposal. As I reported, the proposal solely targets Pompeo’s budget.


* Pompeo and Ambassador Nikki Haley joined together for lunch with the President yesterday – and we know from her team that Ambassador Haley was primed on the issue. No read out yet as to how the conversation went or if rescissions even made it on the lunch menu given yesterday’s breaking news.


* Secretary Mattis was reported to be having lunch today with POTUS ahead of the Medal of Honor ceremony and we’re hoping he too will raise this issue. Confidentially, some of our good friends have been very helpful in trying to engage the Mattis-Pompeo-Haley team as counter-weights to Mulvaney-Bolton.

2. SENATE IS STEPPING UP. Our team has been working behind the scenes to brief a growing cadre of Hill offices. Here’s the latest action:


* Senators Corker and Menendez sent a letter to Pompeo with strong language against the rescissions, promising to “use tools at our disposal” to respond. While the letter was addressed to the Secretary, I’m certain the real audience was the White House.

* Vice President Pence got an earful yesterday at a closed-door lunch with GOP Senators – multiple senior senators raised the rescissions issue directly with him.

* We also know that Majority Leader McConnell and Senator Graham are doing some heavy lifting behind the scenes on the issue, but are strategically withholding their public voice. Other USGLC friends who are leading the charge: HFAC Chairman Royce, and Senators Coons and Kaine.

* As he did on the previous rescissions plan, the new Appropriations Chairman, Senator Shelby, poured cold water on the newest package: “This is probably not, in my judgment, a good time to deal with it, because we're trying, in a bipartisan way, to do something that hasn't been done in 25 years — to make the Senate work, not to divide it.”

3. RESOURCES ARE MOVING. We’re hoping that when this rescissions package comes out next week that it will be a small shadow of what it once was. In addition to all the action from Capitol Hill, State Department and USAID officials are continuing to obligate remaining resources as quickly and responsibly as they can to prevent them from being “rescinded.”

There is still plenty of trouble ahead, but I know we’re in a far better position right now than we were a week ago. More to share soon – particularly as we get closer to next Tuesday, which is rumored to be OMB’s release date.

Lindsay led a great event yesterday in Gainesville, Florida with Rep. Ted Yoho and I’m off to Salt Lake City, Utah tomorrow for an event with Senator Mike Lee and USAID Administrator Mark Green – an important opportunity with a skeptical senator who we’ve been engaging over the long-haul.

More soon,

Liz
Liz Schrayer, USGLC