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Dear Board of Directors,

I am looking forward to seeing you later this month at our board meeting. A few quick updates:

1. A win – for us and for Pompeo. Confidentially, I think we‘re not only seeing Pompeo bring the “swagger” back to Foggy Bottom, but I believe we helped shape his first win. Here’s the story:


* Today, the Administration released its rescissions proposal and of the total $15 billion package, only 2% is coming out of the International Affairs Budget.

* Why is this significant? Because for 18 months, every single time there has been a budget proposal, OMB has called for dangerous cuts to the State Department and USAID budgets.

* In fact, an earlier draft of the Administration’s rescission package had 20% of the total cuts – a disproportionate cut of $5 billion – coming from the International Affairs Budget.

* When I met with then-CIA Director Pompeo, I suggested that he focus on stopping OMB from making these deep and disproportionate cuts, even though we both agreed Congress would ultimately not pass such a rescission package.

* While I prefer to share the details of my conversation with the new Secretary of State at the board meeting, I am fairly certain that we helped inspire his efforts to weigh-in, reducing the cuts to the International Affairs Budget from a whopping 20% to only 2% of the package.

* Clearly, there is a “new sheriff in town” and I am pleased we’re having an opportunity to participate in the discussion.

2. The Rescissions Package. That’s the good news. Of course, there are still reductions. The primary focus of the rescission package is to CHIP, the Children’s Health Insurance Program, which has drawn immediate fire from Democrats and hesitation from some Republicans on Capitol Hill. Here’s a quick outline of the total $334 million in rescissions to the International Affairs Budget:


* Complex Crisis Fund: $30 million rescinded with the Administration noting this could be achieved with the Economic Support Fund.”


* Millennium Challenge Corporation (MCC): $52 million rescinded with the Administration noting the money was returned to MCC from a compact with Indonesia.

* International Disaster Assistance (IDA): $252 million rescinded from unused funding from the Ebola response.

3. Your Input Mattered. As a reminder, the board conference call last month was very influential in developing our strategy, and ultimately, shaping the outcome.


* After signing the FY18 Omnibus, the President was attacked by his right-flank for not curtailing spending, and OMB Director Mulvaney and Majority Leader Kevin McCarthy came up with the idea of a rescission package.

* Early on, we learned that foreign aid was a primary target of the package and we set out to build opposition to disproportionate cuts to International Affairs programs among our allies on Capitol Hill.

* The community mobilized, and our friends spoke out – from Senator Lindsay Graham to Representatives Nita Lowey and Hal Rogers. And of course, we worked our growing network throughout the Administration.

* The rescission package is not likely to pass Congress – though we should not take anything for granted. But for now, the International Affairs Budget is not a disproportionate target, and there are many positive reasons for this, which we should discuss at the upcoming board meeting.

4. One More Interesting Tidbit. Ambassador Nikki Haley has been talking about conditioning foreign aid lately (related to UN votes) and we have been strongly urging her to find opportunities to talk about the positive benefits of foreign assistance. On CBS Sunday Morning this past weekend, she offered a positive message in an interview with Rita Braver when talking about an after-school program in Honduras. Here’s the transcript:


* Haley said, “If they get education and they get training, then we know that they're going to be productive. If they don't, we'll be dealing with resentful children that are uneducated and angry, and that's what we don't want. ”

* “You sound like a liberal,” said Braver.


* “I'm not a liberal, I assure you. I am a conservative who understands prevention saves us a lot more money in the long run.”

Last but not least, I was just in Minneapolis at our state-wide USGLC event with strong supporter Senator Amy Klobuchar. Big thanks to Devry Boughner and John Ellenberger who joined up as well.

More to share on that in two weeks at our board meeting – but needless to say, very important meetings are already scheduled for May 22, so please make every effort to attend. Additional details are on the way soon.

Best,

Liz
Liz Schrayer, USGLC