Summary
- Hal Duncan (Associate Director, Office of Legislative Affairs, Office of Management and Budget) pledged to answer congressional letters amid criticism over six unanswered inquiries.
- Duncan touted passage of two reconciliation bills delivering two trillion dollars in savings, a nine-billion-dollar rescissions package, and trillion-dollar deregulatory savings.
- Sen. Kaine pressed Duncan on whether the 2020 election was rigged, and Duncan repeatedly replied only that Biden was certified as winner.
- Sen. Graham and Sen. Johnson praised fraud and spending crackdowns while Sen. Merkley and Sen. Van Hollen warned of constitutional and politicization abuses.
- Sen. Graham kept the hearing record open until noon tomorrow for written questions before committee consideration of advancing Duncan to deputy director.
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Transcript
i'd like to thank everybody for being here today and our nominee uh mister duncan congratulations welcome to the committee and uh i'll make a brief opening statement oh
he's not a playboy
i thought he was already here yeah they told me there he is magically appears as he always does on time under budget
hold this one
anyway uh if it's ok so to start now is that alright senator good great
i'm here i made it
you did make it let it be
oh i made it
now now we can start
let let it be known that in in louisiana time this is early yeah
i made it oh my god i'm so sorry
anyway uh mister duncan was nominated by president trump to be the deputy director of the omb as previously held by dan bishop who is now us attorney for the middle district north carolina He currently serves at OMB, Mr. Duncan, as Associate Director for Legislative Affairs and Executive uh Associate Director. He was delegated to duties of OMB Deputy Director not long ago. Um, Mr. Duncan's previous jobs include Legislative Director for Congressman Chip Roy, uh, working in Senator Toomey's office, and at the National Senatorial Committee, so you understand it all on our side. Hal Duncan grew up in uh Texas and graduated from University of Virginia, which is quite a journey. He currently lives in Washington DC with his wife Amy and son Patrick. Welcome to them. Um, from my point of view, you understand the agency, you've been over there for a while, you're acting in the role that we're, you've been nominated for. I've had a good meeting with you. Uh, you're young and enthusiastic and smart. just like everybody on this committee so i think you'll do very well sir mark
uh thank you very much uh chairman garland and thank you mister duncan for uh joining us today and i appreciate your dropping by to talk yesterday today we consider your nomination to be deputy director of omb and it's a position of immense responsibility the deputy director serves as a number two and it's chief operating officer overseeing day-to-day operations as well as helping to manage budget information and regulatory oversight and policy implementation across executive branch. That is a vast, vast portfolio. It's a Senate confirmed position since nineteen seventy-four and our twenty-two previous deputy directors have brought decades of budget, management, or legislative experience to this role. I'm concerned, Mister Duncan, that your resume is a bit thin, so I'll look forward to your comments about your experience today. less than two years as associate director of omb s office of legislative affairs two years as legislative director as a member of the house for a member of the house and working on the hill less than two years in the republican senate campaign committee over the next year omb is requesting a budget of a hundred and seventy nine million six hundred and forty five employees so that's a a vast oh well set of um uh personnel and responsibilities in comparison to some of your previous roles. It's a complex agency, hundreds of employees, highly technical uh issues, many fields of expertise. Furthermore, in your current role as Associate Director of OMB's Office of Legislative Affairs, OMB has essentially stonewalled Congress and this committee uh not responding to a single letter that I have sent. And I don't, it may be different. Maybe that's only on this side of the aisle. and not the other side of the aisle but that would be a concern as well because really the executive branch needs to work with both sides of the aisle so a question i would pose if as legislative director one of the simplest tasks which is making sure that letters from congress are responded to if you have not been able to succeed in that role why do should we feel you're prepared for this much more complex role. I look forward to your uh response to that. Since President Trump and Russell Vogt have returned to office, they have repeatedly violated the Constitution's separation of power, usurping Congress's power to declare war through President Trump's war of choice, usurping Congress's power to tax through President's tariffs, which the Supreme Court ruled were unconstitutional, usurping congress's power that per starting programs that are unauthorized, ending programs that are authorized and funded. On seven separate occasions, GAO has found that OMB violated the basic separation of powers of our constitution. I'd like to know whether you have studied this and whether you're prepared to make sure that the constitution is defended in omb s actions also there has been the firing of thousands of federal workers who are there to execute the vision laid out by congress we do have a constitution where congress lays out the vision and congress lays out the funding and the authorization but if the people are fired then that vision is not uh executed so concerned about that it'd be different if legislation have been passed saying downsize this significantly or do not spend these funds or reduce the funds one of the agencies that that was very dramatic was the dismantling of usaid we talked about this yesterday and you noted to me that the responsibilities had simply been transferred to the department of state i did not find that to be a a full incredible answer since essentially yes there was a transfer but in the process its responsibilities and and portfolio were dramatically decreased. Leading our various departments uh or schools of public health to estimate that about five hundred thousand children have died as a result of the sudden shutdown, sudden shutdown of programs for malaria, HIV AIDS, tuberculosis, nutrition, and dysentery. That's a huge consequential action for the executive take in action dismantle a program that's authorized and funded by Congress, resulting in the death of hundreds of thousands of children. If the president doesn't want that program, he needs to ask us not to fund it, not uh not to authorize it, not to shut it down on its own. I'd like to know your opinion about whether in the future you will oppose shutting down programs when Congress has funded them and authorized them. And I'm concerned about the budget proposal put forward by OMB because it does nothing to help families struggling with affordability nothing on gas prices nothing on grocery prices no plan to address or save social security which will start running out of money in just five to six years no plan to help farmers affected by the high diesel prices and the fertilizer prices no meaningful revenue proposals to help reduce the deficit in fact no plan to pay for the war in iran throughout all of this you have been at omb which raises concerns will you be simply a rubber stamp or will you fight to defend the constitution and the balance of powers laid out in our constitution i look forward to your thoughts thank you
thank you would you please rise raise your right hand you solemnly swear the testimony before this committee will be the truth the whole truth and nothing but the truth so have you adieu well thank you i'll start off and i think we got uh pretty good list here um open statement promise me you gonna answer letters open statement
yes sir
oh that's right yeah forgot excuse me clearly i'm not gonna listen to it but go ahead Go ahead.
Merk. Thank you, Chairman Graham, Ranking Member Merkley, and members of this esteemed committee for holding this hearing. I am humbled and honored by the opportunity to come before you as President Trump's nominee for Deputy Director of the Office of Management and Budget. I want to begin by thanking my wonderful wife, Amy, and my delightfully rambunctious son, Patrick, for joining me today. And let here's to hoping that Patrick is not escorted out by Capitol Police at some point in this hearing. I would not be in this position without their love and support. I also want to thank my mom, dad, and brother for traveling from Texas to support me, as well as my in-laws who traveled from Richmond, Virginia to be here. I hope this hearing will help answer the question my family often poses to me. So what exactly do you do? Of course, I also want to thank Director Vogt. It has been the honor of a lifetime serving alongside Director Vogt at OMB for the past year and a half, as we worked to put an end to fiscal futility, and deliver on the bold agenda set forth by President Trump. Former Deputy Director Dan Bishop testified before this committee that director vote was the man to get management of the federal government back on track. That, of course, has proven correct ten times over. If confirmed, I look forward to serving as director vote's deputy and continuing our work to support the president and protect the American taxpayer. While relatively unknown and small in size, OMB's mission is broad and its reach is wide. OMB crafts the President's budget, manages the federal government, reforms regulations, and coordinates policies across agencies. I believe this work is best characterized by the quiet competence the agency exhibits in support of the President and thereby the American people. OMB's career staff are among the best and brightest in the federal government, and it has been a pleasure to work with them and learn from them as Associate Director for Legislative Affairs and Executive Associate Director. I joined OMB in January, twenty twenty five, with the goal of working with Congress to address out of control spending and implement President Trump's plan to usher in a new golden age for America. I've been particularly proud to work with members and staff of this committee to develop and pass two budget reconciliation bills that directly reflect that goal, the Working Families Tax Cuts Act and the Secure America Act. The Working Families Tax Cuts Act cut taxes for American families and businesses while achieving two trillion dollars in mandatory savings and securing generational investments in defense and homeland security. The Secure America Act built on that success by providing sustained funding for the brave men and women of ICE and Border Patrol, who work every day to secure our border and keep our community safe. I was also proud to work with this body to pass the first stand-alone recisions package since nineteen ninety-two, which cut nine billion dollars in wasteful and weaponized spending. Building on that success, we worked together to complete the fiscal year twenty twenty-six appropriations process in a fiscally responsible manner. We have made historic progress in righting our fiscal ship over the past eighteen months, but there is more to be done. I believe we owe it to American families to be relentless in our pursuit of a federal government that spends taxpayer dollars wisely, delivers services efficiently, and reduces regulatory burdens. If confirmed, that pursuit will drive me as Deputy Director and I commit to maintaining a strong relationship with Congress to ensure our impacts are enduring. Thank you for considering my nomination. I look forward to your questions and the opportunity to discuss how OMB can continue to deliver on its vital mission.
Well, thank you. Well done. So Um, so when your family asks you what you do, what do you tell them?
Um, so, currently, as you know, I serve as, uh, Associate Director for Legislative Affairs. Um, in that capacity I work with directly with Congress, um, to advance the administration's spending priorities. Um, I think some of the things that I mentioned in my testimony are
If they ask you what would you do in your new job, what would you tell them?
It's a great question. I think of a lot of it as a con- con- um, continuation of what I've been doing as Executive Associate Director. I view that as a more internal facing role in which I represent OMB uh in meetings with agencies um coordinating with uh, my counterparts across the different agencies and within the executive office of the president in fundamentally managing or supporting the management of OMB, uh, its career and political staff, uh, writ large across all of its branches.
And how long have you been doing this job you're in now?
Um, I have been with the administration since the first week of uh President Trump's nomination. So I believe since January twenty twenty, uh, January twenty fourth, twenty twenty five.
How long have you been acting direct uh deputy? the job you're in now, how long you've had that?
Sh- uh, appreciate the question. I don't remember off the top of my head when I was delegated the duties. I believe it was uh late last, it was sometime late last year.
OK, for a while.
Yes, sir.
You feel comfortable doing the job?
Absolutely, comfortable and very excited uh by the opportunity, if confirmed.
OK. If we write letters to you, will you answer them?
Yes, sir.
Good. Um, let's talk about the budget real quickly. The budget's kind of an outline. that the president submits to congress and kind of a a view of what we should be doing uh as a nation do you support the president's uh defense budget request
senator absolutely i think the threats that we've seen in this world uh necessitate uh that level of defense spending
so you think it's justified right
absolutely
ok um during the biden years they submitted budgets too very few of them were improved at um approved as submitted what's the biggest difference between you you this omb and biden in terms of budget
absolutely i think um we've seen uh the successes of the past um fiscal year twenty twenty six we were able to secure um a uh defense top-line of one trillion dollars um, by using both the mandatory and discretionary strategy. Uh, the president has recently, uh, recommitted to that strategy as recently as last week, calling for Congress to pass, um, three hundred and fifty billion dollars worth of mandatory spending for, um, our defense. So, I believe we use the strategies that we have proven work, um, over the past year and continue to move forward to deliver, um, to provide for the defense of the American people.
If we can't pass a supplemental, through the appropriations process dealing with defense and other matters uh democratic friends will want some some things too um do you believe a third reconciliation bill focusing on defense and fraud would be justified
yes sir absolutely
are you ready to work with this committee to craft that reconciliation bill if necessary
yes sir absolutely we've done two together and i'm looking forward to a third
so what areas would you focus on other than
Well, I think, um, in terms of fraud, supporting the work of the Fraud Task Force is certainly critical. Um, I've been honored to be OMB's designee to the Fraud Task Force and have been able to see how the Vice President and his team have used the task force to coordinate, uh, amongst the agencies to root out waste and fraud to a degree we've not seen, um, in recent memory. So fundamentally,
Oh, thank you. Thank you very much, Mr. Chairman. So, in your prepared remarks, you noted, I'm committed to maintaining a strong relationship with Congress. So I I noted in my introductory comments that none of the letters that i've sent and i have here the all six letters to omb none of them have been responded to yeah you just committed to mister graham's chairman graham that you're going to respond to letters if you couldn't make that happen as legislative liaison when it's a pretty straight forward simple task why why would there be such a change in your new position.
Well, Senator, uh, first of all, I appreciate the question and thank you for meeting with me last night. Um, as mentioned in our, uh, meeting last night, some of the letters that we discussed, uh, did, uh, would have asked for the disclosure of pre-decisional and deliberative information, also information r- directly related to ongoing court actions. Um, but that being said, uh, we are committed to improving our letter process. We've been in the process of, um, implementing a new, um, uh, process to uh speed up response timelines um to letters so we're looking forward to that and and hope to work with you on that as well
ok well i just consider zero out of six a pretty bad batting average and as we discussed yesterday certainly even when there is future uncertainty regarding lawsuits or or future actions doesn't mean you can't can't respond it means you can respond and say here are the here are the restraints here are the restrictions and so i strongly encourage a very different uh uh approach to communicating with congress uh i wanted to turn uh to um basically this this question of when you became the acting director deputy director
uh the exact time line um senator
you mentioned last night november or december of last year so that's
so it was about november or december i actually wasn't able to go to the office um um this morning um post our meeting yesterday so i'm happy to follow up as the exact timeline that I was delegated to duties um and I can do that in QFRs or or right after this hearing
so it was only five months after basically November that we learned that you had adopted or been delegated these responsibilities as head of legislative affairs wouldn't that have been relevant to fill in Congress that this was your your new role
Uh, Senator, I appreciate the question. Um, obviously we were working on a nomination timeline, um, as well. I was delegated the duties, um, in, uh, uh, Dan Bishop's absent, which effectively has been, um, filling in for him in his, uh, duties in that time period. But certainly understand the point. Um, but, uh, my nomination went up, uh, in April, um, and I look forward to, uh, working with you, um, on, uh, OMB related topics if confirmed.
Do you believe the twenty twenty election was rigged?
Um, I believe that Joe Biden was certified as the winner of the twenty twenty election.
He was certified, yes, but do you believe the election outcome was rigged?
Senator, I appreciate the question, as mentioned I believe that Joe Biden was certified as the uh winner of the twenty twenty election.
Good. Uh, duly noted that you're not responding to the question. Uh, you're familiar with the impoundment control act.
Yes, Senator, I am.
And there is a essentially a constitutional understanding that has been reinforced by the supreme court twice that the power of the purse cannot be delegated to the president no matter how much the president wants to cancel programs that are authorized and funded or start programs that aren't funded doesn't get to decide that and yet what we're seeing is programs getting canceled like uh canceled like i mentioned with the id will you defend the separation of powers and throw up a cautionary yellow flag and express some concerns if the strategy of omb is to cancel an authorized and funded program
well senator i certainly appreciate the question um i firmly commit to upholding the constitution um as you know uh the president ran on restoring the empowerment authority it's an authority that presidents had exercised for over two hundred years um and we have that being said we have been in full compliance with the empowerment control act to date um but fundamentally um this question has been litigated multiple times before this committee um and uh look forward to continuing to work with you on it
so i'd really that wasn't an an answer to the to the question the administration has shut down programs that are authorized and funded if there's another proposal to shut down a program that's authorized and funded will you raise not that i'm not asking about whether you'll publicly oppose it you're gonna be working Will you strive to make sure that there's a yellow flag put up and said, you know, this may be violating the separation of powers?
Um, appreciate the question. Um, Senator, I would commit to abiding by the Constitution and the laws on the books.
OK, let me turn to. Well, I'm over my time. So you're you're spared any additional questions. Thank you.
Uh, Senator Grist.
Uh, I thank whoever gave me their slot, thank you very much. um i uh think that president trump is doing a real good job of bringing the regulatory state uh reining it in at the start of his term president trump set a benchmark of slashing ten existing regulations for every new regulation issued i i understand the administration far exceeded that with maybe a racial wonder twenty nine one hundred and twenty nine how accurate is that number and what has this meant in terms of time and dollars saved by the private sector and can that be measured uh relative with some certainty
uh senator absolutely and um appreciate the question so the number uh that you referenced the hundred and twenty nine to one obviously are extremely proud of. It does include things like guidance documents that have the effect of regulations in there, but we are far exceeding um the ten to one ratio. Um we have we have exceeded over a trillion dollars worth of savings um to the economy via the deregulatory agenda. Um the repeal of the endangerment finding alone uh saved uh uh the economy an estimated one point three trillion dollars. Um we're excited to put out our next unified agenda. um related to uh our regulatory agenda for this coming year um and with that we'll have additional information that we'll be able to share related to the fiscal impacts um of our uh deregulatory policies.
yeah uh on my next question just keep in the back of your mind the reason i am asking about wind energies i authored that legislation in nineteen ninety two one of the stated objectives of the administration deregulatory agenda is to eliminate obstacles to energy production as a supporter of all the above energy strategies i am concerned that this commitment isn't being applied consistently to all forms of energy in iowa several wind energy projects are currently halted this is due to some revaluation of wind energy mitigation agreement process performed by the department of defense my staff has been in contact with dod and i understand that there is an effort to identify projects of low national security concerns for approval uh what is the omb's role in this process and will you commit to working with me to mitigate bureaucratic red tape standing in the way of iowa wind projects by the way we get sixty percent of our electricity in iowa from when
oh senator i appreciate the question i'm not directly familiar with the matter at hand um i'm happy to take that back to our team but certainly committed to working with you on it
well if you'll do that i'll appreciate it uh so i hope my staff heard that and they'll get in touch with you pretty darn soon uh as far as the family uh working families tax cut act congress extended modified the clean fuels tax credit with an idea with an eye towards making it work better for farmers seeing this law implemented properly and on a timely fashion is a top priority of mine in april uh omb um uh uh usda submitted to your agency a biofuels feedstock rule uh related to accurately calculating this credit this rule is necessary to ensure farmers can fully participate in the program uh when can farmers expect omb to complete this review process and uh before you answer that i just think over the weekend this process may have been smoothed out a little bit by finally the department of energy uh uh reaching some agreements that were necessary before you would get the rule
Uh, Senator, I appreciate the question. Um, we're closely tracking the forty-five Z rule, which as you mentioned is currently in the twelve eight six six process at OIRA. Um, understand the priority, um, to your constituents about getting this rule out. Um, I believe we're making progress and hopefully we'll have an update for you, um, on that soon.
K, thank you. Thank you, Senator Johnson. Thank you. Thank you.
Thank you, Mr. Chairme- Chairman. Mr. Duncan, you're up for a very important job running the nerve center of the federal government. it is really really critical that uh you can be depended upon to follow the law and to speak up when you believe others are not can you can we count on you to do that
senator i appreciate the question i will commit to following the law and upholding the constitution
so to that end and following up a bit on what senator merkley was asking you can you assure all of us that omb will not attempt to do another end run around congress with an illegal pocket rescission this september
Senator, I appreciate the question. Um, as it relates to the pocket recisions, uh, pocket recisions have been executed by previous administrations, notably the Ford administration following the passage of the Empowerment Control Act. Um, I can't commit to any of the fiscal tools the, uh, administration may or may not use in the future. Um, but certainly look forward to working with you.
Well, I'm glad you wanna work with me, but pocket recision is a critical issue and I'm am concerned about the answer that - that you just gave. Well, but let me move on. Um, OMB recently proposed a rule to overhaul the federal grant making system, um, that allows you to terminate grants but be- based on some big, quote, administration values or priorities. That really sounds to me like uh you all are trying to turn the entire federal government to this one big slush fund to reward those aligned with the administration and punish everyone else. One of the provisions in that actually prohibits funding any activities that promote, quote, anti-American values. Now, under this administration, that could mean practically anything. And I just wanna make sure we're on the same page here. So, let me ask you, if this proposed rule went into effect, what limits would be placed on the administration's ability to award grants to its political allies or or defen- deny funding to anyone else?
Well, Senator, I appreciate the question. Um, obviously the rule is currently in the proposed phase. Um, it'll close for comment, I believe, on July The rule is fundamentally about accountability, um, in ensuring that we are able to, uh, have, uh, a, a good oversight over the grant process and that it is in alignment with, um, um, the administration's agenda. Um, but it, as it relates to the rule, we will certainly follow the statutes that govern underlying programs, um, and, uh, we're, are committed to ensuring that federal taxpayer dollars are awarded in the way, um, that is responsible.
Well, I, I was looking for a concrete answer. Is there any language in it that that i didn't say any but i'll ask you places limits on cronyism
senator uh we would move forward with the rule and move forward with the agencies in a manner that is consistent with applicable law
well the way i read it the reality is that a a political appointee like you could terminate a cancer research grant or a hospital grant solely because of the president's whim or personal vendetta and to me that is really unacceptable We all know how this administration would abuse this. I really hope all of our colleagues will join us to stop this, and they should remember what goes around comes around, but I think that is a very concerning proposed rule and uh and allows some uh uh allows OMB to make political decisions that they should not be making. So I think we should all be worried about that. Just wanted to bring it to everybody's attention. Um, let me ask about another issue. Last week we learned that the trust fund will run out of money in just six years, three months sooner than previously estimated. When he was pressed on this, Speaker Johnson insisted that entitlements should be " adjusted". Well, I've been around long enough to know that adjustment means cuts. You have worked for Republicans like Chip Roy who support benefit reductions. Elon Musk, who had free reign over the federal government, has called social security a " Ponzi scheme". So it's Kind of no surprise that Trump's latest budget request did not include any solvency proposal for social security why doesn't OM OMB view social security solvency as an important enough issue to include in a budget request
Senator I appreciate the question and as the director testified is on a similar question when he was up here that President Trump has been uh immensely clear on his support for protecting social security and Medicare and that will continue to be uh the north star for this administration moving forward.
But nothing in the budget request and for all of our knowledge for decades presidents have presented a full budget including projections and proposals for mandatory programs like social security so this administration simply is failing to do its most important work i got a guess because they don't care you know democrats have introduced a number of proposals to address the solvency crisis without cutting benefits we haven't seen anything from this administration doing nothing means that seniors are gonna see a twenty two percent cut in their social security benefits in twenty thirty two. That's about ten thousand dollars a year per couple. So, we expect this administration to do in the budget what what previous presidents have done and present us a proposal. Thank you, Mister Chair.
Sir Johnson.
Hey, Mister Chairman. Uh, Mister Duncan, congratulations on your nomination. Uh, you know, there's an awful lot of bipartisan whistling by the graveyard here and I think we're hearing it from the other side right now. Let's just get a couple of facts before I get some questions. Two thousand nineteen before the pandemic, we spent four point four trillion dollars. This year we will spend well over seven trillion. That's almost a seventy percent increase over what we spent in two thousand nineteen, correct?
Senator, that's correct.
I have seen the low estimate in terms of fraud out of that seven trillion dollars, about two hundred fifty billion dollars a year, we had in front of a a subcommittee of CEO of LexisNexis, I didn't realize they did research on this, about a trillion dollars a year. I know Secretary Besson claims it's somewhere around five hundred billion. So there's a range, two hundred fifty billion to a trillion dollars a year in fraud. And you know, we're concerned about the executive actually managing the budget and trying to to stop that fraud. I I was interested in Doctor Oz uh pointing out the fact that a third of hospice centers hospice centers are in Los Angeles. And so when you stop funding four hundred of them, Not one complained. Not one. Four hundred fraudulent hospice centers. How how how many billions of dollars is going out to fraud? So, you're fully aware and I appreciate the the work you did help me get a little bit more funding for OMB. Uh, it's interesting to Senator Merkley point out that your budget is about a hundred and seventy five billion dollars a year. Divided by seven point five trillion, that that's that's about point zero zero two five percent. i would say most major corporations spend a whole lot more on their controller department to try and manage the the financial situation of the business. I think we should be doing a whole lot more managing of the federal budget. So that's why, you know, and I appreciate you working with me to get a hundred million dollars. Sounds like a lot, but it's a drop in the bucket to try and focus on the management side. So I I just wanna give you an opportunity, what you've been working on on the management side, the the line-by-line evaluation of the budget, program by program. It again, it's it's not easy to do. You know, the AI we're trying to to uh s- establish so we can l- find the information where you got four hundred fraudulent hospital centers in LA, but I'll give you the floor.
Absolutely. And uh appreciate the question, Senator, and appreciate you working with us uh so hard on this. It's been a great relationship that we've had. And really quick on the fraud point, I think that's why the fraud task force uh is so important, is there are estimates of fraud, but we really don't know. we really don't have a solid number and there's so many limitations that we keep uncovering as the task force is going out and investigating this. So, uh
See, well, let me just quick interject too. Trying to prosecute and recover is almost impossible. I I think the latest Department of Justice figures they're prosecuting something four point seven billion dollars. Versus almost a maybe a thousand billion dollars. So you have to prevent it on the front side, like Doctor Oz did. Correct? Well, you know, again, the the present Chief Executive faithfully execute the laws, and part of that is to make sure we don't have the ways for unabused.
Absolutely, Senator. It's so important that we put these controls on the front-end, which is why I think some of the uh actions that we're taking in two CFR is really important. Um, under the two CFR uni- uniform guidance regulations for grant making, uh, every agency will be required to be using the do not pay um uh lists before they send out funding. Uh, if IGs catch fraud, they would be required to send the instance of that fraud to the US Attorney for the District of Columbia within ten days. Um, so we think a lot of these controls, uh, in addition to the accountability of having, um, a one of the, uh, president's political personnel serving as kind of the last check on a grant before it goes out, will certainly help, uh, us manage the the federal budget and ensure that we're stopping fraud on the front-end, because it's so hard to combat on the back-end.
So, and w- wouldn't it be nice if our colleagues on the other side of the aisle would be concerned about two hundred fifty billion to a trillion dollars of fraud and actually work with the administration uh to to encourage for example their governors to provide the information to the federal government so we can stop it before it's ever spent can can you talk a little bit about the frustration this ministry administration is having in terms of getting the data they need to analyze to prevent fraud from going out the door in the first place
yeah senator i think that's a great question i think in the snap program we've seen many states being unwilling to provide information to usda uh certain states have been willingly providing information uh to ensure that uh there are proper controls in the snap program as that funding is going out but we see many states um refuse to do it now obviously we think this is a bipartisan issue we think that we can bring everyone to the table on this and we would hope that people would do so moving forward to have permanent enduring reforms cause i don't believe that anyone here wants to see fraud in federal government
and of course that that's my goal of using that hundred million dollars to establish a permanent ai program and a structure and programs within omb to properly manage this and again prevent the money from going out you know where you can never recover it but thank you mister duncan and congratulations
mister chair mister duncan i applaud you for your judgment just like me you grew up in another state married a virginian so we we have that connection was the twenty twenty four presidential election rigged
senator president trump won the twenty twenty four presidential election
yeah folks how about that so he was asked twice was the twenty twenty presidential election rigged and he said president biden was certified to be the winner he wouldn't answer the question saying president biden was certified as the winner of that election is like saying today is tuesday june sixteen i mean it's obviously it's a fact but he wouldn't acknowledge that president biden won that race now there's only one of two reasons mister duncan you you have either fallen victim to the conspiracy mindset that says that that election was rigged and if you're a conspiracy theorist you shouldn't be let anywhere near the position you've been nominated for or you know president biden won the election but you're afraid of making an insecure president mad by acknowledging that fact you answered so easily when i asked you the question about twenty twenty four you didn't fight you didn't evade, you didn't obscure, you didn't try to end run. You said President Trump won the election, which he did. He won the popular vote, he won the electoral college. The answer was just as simple about twenty twenty. The fact that you were unable to give the simple answer about twenty twenty raises real serious questions about you. Let me ask you this. In your current position, I believe you're a legislative affairs director for USAID, which its programs to the extent they're being delivered at all are sort of being delivered through state and others but omb is sort of managing the wind-down of the operation we are currently in the midst of a severe global health crisis we've got an ebol uh outbreak in africa that's accelerating rapidly and that some experts have warned could be extremely dangerous we're seeing screw worm return to the united states after decades of work to eradicate it we've got measles outbreaks in communities that haven't had major measles issues since the vaccine became available. We've had a hundred and eleven cases in Virginia so far this year, and we only had twenty-five last year. Meanwhile, what's the administration been doing to prepare for these types of global health issues? We withdrew from the World Health Organization, undermining our ability to coordinate with other nation on responses. After withdrawing, it was interesting, Secretary Rubio said, "WHO didn't do a good job of picking up Ebola." Thanks, Sherlock. The US backs out of the WHO, we quit funding it, we quit participating, the organization isn't as effective in picking up a disease that could harm Americans. We've canceled hundreds of millions in HHS mRNA vaccine funding, and we're trying to cancel billions more in CDC grants related to pandemic. We've illegally shuttered USAID, one of the agencies that's responsible for the progress we had made in combating screwworm not to mention one of the agency's key to addressing Ebola outbreaks. The Trump administration has pushed out experts across the government, not just at USAID. Employees at the Department of Agriculture's, Animal and Plant Health Inspection Service are down a quarter, CDC is down a quarter, many specific offices at HHS have lost tons of employees. They haven't told us how many yet. And today, today, the OMB is still withholding two billion dollars in congressionally passed global health funding from last year, fy twenty five, the administration only started to release some of these monies way late after the ebola outbreak got bad. Now, to my colleagues, last week in an appropriations hearing, secretary rubio testified that he is ready to utilize this two billion dollars from fy twenty five to deal with, uh, global health issues, but he's waiting for the OMB to release the money. Release the money from FY twenty-five, when we're dealing with Ebola, screwworm, measles, hantavirus. Is the OMB gonna release this money or are you gonna wait for more health crises to emerge?
Well, Senator, I certainly appreciate the question. Um, I, I believe you referenced to this, but we have already notified via state who is managing these programs and who is funds off of the congressional notification that you're um referring to. Uh, we've already notified up to Congress that a hundred million dollars of the global health security funding um involved in that CN uh is going to uh combat Ebola. Um, we have also apportioned an additional five hundred million dollars on top of that from that CN to go towards Ebola as well.
Apportioned,
Um.
is that the same as released or is that internally we think we might one day make these monies available?
If if so in from the OMB perspective, that would be releasing. Um, State Department
And when wi- when will that money be released?
We wou- I would have to defer to the State Department. They would submit a congressional notification on these funds.
OK,
Um.
but, but I just, again, to remind my colleagues, Secretary Rubio said he wants to use this two billion dollars from FY twenty-five to combat these global crises, and he's waiting on OMB to release it. So, my time is up, but I'm just gonna say should you be confirmed, but even before there's any vote on confirmation, in the midst of these crises, OMB should release the money that Congress allocated over a year ago, to deal with precisely these kinds of health emergencies. I yield back, Mister Chair.
OK.
Mister Duncan, um, every now and then I see an article that says something like uh, government federal government's spends twenty five million dollars to study whether a man can breastfeed. Or the federal government spends fifty million dollars to try to teach a neighborhood squirrel to code. And I think How did that stuff get in there? I said on the Appropriations Committee, we're supposed to put together a budget. Sometimes we do. This year we probably won't. Because my friend and and colleague, Senator Schumer, wants to shut down government, to create chaos, to try to get the Graham Platner wing of his party to love him. But I digress. That stuff's not in the budget. When we vote on a budget. Where's it come from?
Well, Senator, I appreciate the question and you've been a champion on these issues. And I would note your work on the rescissions process, highlighting some of these um outrageous um uh spending we've seen in the past. So I think this is why our updates to uh to CFR, which governs grant making, across the federal enterprise is so critical.
Yeah, tell the American people what that is.
Absolutely, appre- appreciate the opportunity.
Like you're talking to a tenth grader.
Appreciate the opportunity, too. So, fundamentally, um, the, some of the most important things are to ensure that grants are not going to divisive DEI ideologies. They're not going to support illegal immigration. They're not going to support radical gender ideologies. Those are pretty fundamental.
And stu- uh, and stupid stuff, right?
And stupid stuff generally, yes, sir. Um, I think the arbiter of ensuring that things do not go to stupid stuff, as you put it, um, is ultimately a political appointee, one of the president's people that is associated with the administration appointed by the president, comes in and does a final issuance review, um, before grant dollars go out. That's fundamentally about accountability. Um, it's not intended to, uh, usurp peer review or anything like that. It's about making sure that someone
All right, let me stop you for a second, mister Duncan, because we're gonna run out of time. Congress never sees this kind of spending porn, does it? Until after the fact. Is that correct?
Senator, that's correct.
It's not in our budget. Is that correct?
Senator, that is correct.
But somebody in the administrative state decides that they ought to spend twenty five million dollars to study whether a man can breastfeed. Right?
Yes, yes, sir.
Now that's what I mean by stupid stuff. Do you consider that sup- stupid stuff?
Absolutely, yes, sir.
And what you're gonna do at OMB is try to stop the stupid stuff. Try to find out who made that grant and say, no, no, no, no, no. We're we're not we're not we're not gonna spend money on this. And by the way, if you do it again, you're fired.
Yes, sir, absolutely.
Is that right? That's what you guys are gonna do?
Yes, sir.
It's about time. Thank you.
Sure.
All right, let me ask you one other question. When moms and dads lie down to sleep at night and can't, right now, at this point in time, what's the first thing they're worried about?
I would imagine it would be, uh, the ability to support their families.
Yes. Cost of living. Um, part of that's inflation. Um. Look, I I I I don't I mean, I remember inflation's very sticky. I remember when it started, it got up nine percent. You know, President Trump didn't father this child, but he's gotta raise it. Cost a living. Thank you for being straightforward. Now, have you ever gone to a, uh, let me preface this by saying I've got two doctors, brothers who are doctors, so I I love health care providers, but have you ever gone to a health care provider and then you get a bill saying you owe us fourteen hundred dollars and you go what the hell has that ever happened to you
yes sir it actually has
it's happened to a lot of americans because the way many of our hospital our our healthcare providers bill makes no sense and so they turn it over to our collection agency and the collection agency says look uh we might you pay this fourteen hundred dollars uh, we we can't explain we won't explain to you how it got here if we did, we'd have to drown you in the Pacific, but you if you don't pay it, we're gonna turn in turn it into your the credit rating agencies and ruin your credit. Now, why why don't if we wanna help the American people why don't we at least for a period of time say health care debt is not gonna be reported to the rating agencies? it's not we're not saying you don't have to pay it we're not saying it's not due we're not saying you can't be sued but this debt's being reported to rating agencies when people can't pay it and then their credit gets ruined and it makes it even harder for them to live that's a swell idea isn't it
senator i think the administration has been very committed to price transparency and ensuring that folks are able to
yeah but what about that idea
i'm i'm happy to take that back and and determine the administration's position on that matter
how about it advocating for it
i'm i'm happy to work with you on this matter absolutely
ok i'm sorry i went way over i'm sorry mister chairman
thank you mr. chairman uh first uh like to state that i'm little fascinated by uh senator kennedy's media feed uh but uh your social media feed sir
a what oh
but i digress um like uh appreciate uh you being here to answer questions as we consider your nomination uh let me begin with a question uh relative to uh omb's may twenty twenty six proposed rule to implement a sweeping overhaul of the uniform guidance governing federal grants and financial assistance uh it would actually substantially expand agency's authority to suspend or terminate awards, elevate the role of political appointees in grant decisions and and centralized government-wide grantmaking rules uh through uh the omb. Now the proposal, uh as i'm sure you've heard, has generated significant concern among states, amongst local governments, amongst universities, non-profit organizations, and other recipients of federal funds. Now many of us here in congress are extremely concerned about the true objective of this rulemaking, which would be to provide cover for the politically motivated actions of this administration, to counsel thousands of grants, um, deemed to not be aligned with the president's partisan political agenda, action that have been repeatedly found by the courts to be illegal and unconstitutional. Uh, these changes are meant to make it easier for the administration to override funding decisions made by Congress, colleagues congress is the separate and co-equal branch of government um and the rule would inject political considerations into the administration of federal grants so my question is pretty simple if confirmed will you commit that the omb will not use the uniform guidance or any future revisions to it as a vehicle to circumvent congressional spending decisions or to impose policy conditions that congress itself did not enact
uh senator certainly appreciate the question fundamentally the update to two cfr about accountability ensuring that someone that is accountable directly to the president is ultimately signing off on these final um uh decisions in our trillion dollar grant making enterprise the law uh the cfr the updated to the code of federal regulations will be done in a manner that's consistent with applicable laws um but this is a a method by which the administration is proposing to get its arms around the the enterprise that we've seen abused in the past
so colleagues for for the record that's a articulate diplomatic way of saying yes it's whatever the president wants that's the objective here that's um your answer and i'll uh advise my colleagues that if this rule changes it's not a a change just for the balance of this administration it's a permanent change. And at some point there will be a democratic majority and there will be a democratic president in the White House. With this rule change, if that's the road you go down. Uh, my second area of question is relative to CDFI funding. As bipartisan members of Congress have communicated to agency leadership over the last year CDFIs play a vital role in delivering capital and financial services to communities and businesses that lack access to traditional lending. OMB's purposeful delay of these funds has created significant uncertainty for the organizations that serve as a lifeline and frankly do a critical job in boosting our economy. After over a year of withholding these funds and many calls from congress again both sides of the aisle, OMB just recently released the fiscal year twenty five cdf i fund awards however director vote in his response to this committee's questions on the proposed cuts to the program for fiscal year twenty seven continue to make unsubstantiated claims of widespread abuse i've heard you say in this hearing uh you're concerned about abuse you're concerned about abuse if there's unsubstantiated claims of abuse you're making it up and using it as a pretext to hold much needed funding and clearly increasingly on a partisan basis. So I'll try to ask you again, clearly, will you commit to ending OMB's interference with the fiscal year twenty-five CDF I funding of uh uh notice of funding availability as well as the twenty-six apportionment and ensure the timely obligation and disbursement of future funds as intended by Congress, yes or no?
Senator, I appreciate the question. Um, as you mentioned uh omb was conducting a programmatic review of the twenty five twenty six cdf i funds those funds have since been apportioned um and nofos are moving out on them right now so i commit to ensuring that the funds are spent in a responsible manner um and we will obviously be taking those uh steps to ensure that there aren't abuse in the funds and will release them uh once those uh safeguards are in place
look as you know time is money so when there's delays in this funding it uh undermines the economic benefit of these programs and if there was a long track record of abuse you can make the argument for additional review but when they're unsubstantiated it's uncalled for and damaging to the american economy thank you mr. chairman
thank you chairman mr. ducat thank you for being here so in my lifetime here's what's happened to um the costs when i went to college it cost two hundred dollars to go to junior college for a whole semester and two hundred and fifty five dollars to go to a whole semester of university and you could take as many hours as you wanted right you could buy a home in the suburbs for twenty one thousand dollars a three bed one bath in a safe uh nice suburb uh you could buy a brand new car for sixteen hundred dollars you could buy annual healthcare uh for a whole a family of four for seven hundred bucks so you look today twenty five thousand dollars plus for a family of four for healthcare you can't hardly find a new car for less than twenty thousand dollars you um uh you can't um you can't buy you know there was uh the article said that two hundred and forty-two ho or i think something like two hundred and forty-two cities in this country are starter homes around a million bucks so do you think government's had any role in causing all this inflation
uh senator i appreciate the question and absolutely think government has had a role and that's why the administration's deregulatory in spending agenda is so critical to getting these costs down, undoing the burdens placed uh on the American people by the previous administration and continue to try to drive costs down.
So if um So what, so we now have um we'll get we'll hit forty twenty dollars of the debt this year. So forty twenty dollars of the debt, twenty dollars a year of interest expense. We are running two twenty dollar deficits. So if that doesn't change, if we don't get to a balanced budget and start paying down the debt, do you think it's straight through and just you know, just like that go down, way back down again.
Uh, I think we certainly need to continue to address deficit spending. Um, I think we set forward a framework on how to do it this past year, uh, through rescissions, um, keeping the discretionary appropriations in a physically responsible manner, and also delivering on the mandatory savings that we, uh, did in in, uh, the Working Families Tax Cuts Act. So we need to continue to move forward that model, I think. uh to the chairman's point and to senator johnson's point attacking the fraud is really important in getting uh uh our arms around the spending and continuing to bring down uh costs so so we don't have the the debt burden and interest rate problems that you're referring to
so our country all of us uh in our military is completely dependent on chinese drugs right um the uh we don't uh almost all the ingredients in chinese drugs are made in china there are studies out in university of indiana tells us how unhealthy these drugs are um and they've held back chinese government's held back rare earth minerals uh they could hold back pharmaceuticals easily right so do you think it's important for us to start building domestic supply chain for uh pharmaceutical drugs and uh and also not um the other thing that's happening is uh that um the bi-american act and the berry amendment are supposed to guard against um you know all this you know chinese drugs but there's unbelievable waivers given all the time because we don't have enough supply here is there anything that you think the omb can be doing to fix that
senator i appreciate the question um fundamentally i think dedicating more resources to reshoring um advanced drug manufacturing is fundamental we did that um in our fy twenty seven budget proposal also uh in i believe you've been involved in some of these efforts our office of federal procurement policy as well as our made in america office are working together to ensure that we are taking policies administratively to promote domestic drug manufacturing i think a really critical way of doing that is sending demand signals through the federal procurement uh process uh which we have done on a number of items so absolutely committed to doing that it's a priority for the administration and look forward to continuing to work with you on
yeah kevin roach has done a great job
absolutely
so president trump and omby have done a great job um you know, we've we've worked to cut taxes, uh, eliminate, identify and eliminate fraudulent payments. What what would you like Congress to do to help, uh, OMB do a better job, uh, doing, you know, fulfilling the agenda that, uh, Trump got elected on?
Well, Senator, I absolutely appreciate the question. Um, I think, as mentioned, kind of building upon the successes that we saw last year is really critical. Uh, we really laid out a playbook to how to keep spending under control while funding key priorities. So I think continuing to build on that, and frankly, I think continuing to bring stuff to OMB saying, " Hey, will you take a look at this?" There are multiple times when we get information from the Congress um highlighting an issue for us that we had not known. I think there's a, you know, conception that we know everything all the time. We know a lot of things. We're resource constrained. Um, so we certainly rely on our uh uh colleagues in Congress to flag things for us. So I think just making sure we have that collaborative effort um, to make sure that we're delivering on reducing spending and reducing regulatory burdens, is how we kinda continue to move forward.
Thanks. You're you're you're gonna do a great job.
Thank you, Senator.
Thanks for all of your hard work and all all your prior jobs.
Thank you, Senator.
Thank you, Mr. Chairman. Uh, thank you, Mr. Duncan, for being here. Uh, do you think that, uh, being Deputy Director of OMB, uh, requires somebody of good character?
Uh, Senator, I appreciate the question, I do.
Do you have a Nazi tattoo on your body?
Senator, I do not have any tattoos, especially not a Nazi tattoo.
Well, you're That would make you ineligible to be the Democrat nominee in Maine. Uh, but I'm glad that this will absolutely, uh, allow you to be the deputy director here at OMB. Uh, since the last budget committee hearing, Mister Chairman, we heard a lot about the stock market and a lot about oil prices. Nothing to do with your nomination, but I just thought for the record, just point out, Mister Chairman, we have a record stock market, we have, uh, gas prices that are plummeting, uh it is making democrats very very sad uh but the reality is president trump's policies are working uh so are you happy about that you think this is good that we have record stock market gas prices are dropping
senator absolutely and i think this gets back to senator kennedy's question as well obviously it's critical for the administration all we wake up every morning to try to get prices down so i think with the signing of the mou um and seeing the oil prices come down we're gonna see that uh um prices continue to fall and the stock market continue to rocket.
Yeah, and then the added benefit of actually having a path to peace in Middle East. So I just thought I'd point that out because at the last budget hearing, we heard a lot about there was a lot you wouldn't believe how many uh my colleagues turned into stock market um prognosticators. Do you think the government of the United States of America at the federal level is working better the same as or worse than it was under the Biden administration in terms of efficiency forget politics I'm just saying the efficiency. the blocking and tackling of being able to get your tax-free funds, being able to deal with the federal government in terms of what you need. Is it better or worse? Is it the same?
Senator, I think it's working uh functioning much better than it was under the previous administration.
So so much better. Uh and obviously uh the number of federal employees matters, correct? I mean, typically you need humans on the other side of that phone call or email. What's the level of federal employment today versus where it was two years ago?
Um, Senator, I believe that we've seen a reduction about three hundred thousand federal employees since this uh administration took office
what how many
three hundred thousand
three hundred thousand less federal workers
yes sir
and the government's working much better
yes sir
how is that possible
the administration has been able to identify efficiencies um and remove bureaucracies that previously limited um the uh efficient delivery of services
how does that affect the taxpayer so does somebody who lives in chillicothe ohio How does that affect them?
Well, fundamentally, it affects them by ensuring that they're getting their services, uh, more quickly, whether it's tax returns or what have you. Um, but obviously, uh, reducing headcount and seeing those individuals go and work in the private sector also reduces, um, the federal, uh, uh, fiscal burden, um, carried with funding those employees as well.
Because you would agree that the federal government should be a works program for otherwise unqualified people, correct?
Senator, absolutely.
Right. So we've, uh, able to eliminate three hundred thousand people from the water federal workforce and yet operate our federal government more efficiently which means we can lower the tax burden on american citizens that is an amazing accomplishment i i turn on cnn every single morning this morning i didn't see the oil chart or the stock market chart that was magically had disappeared but i have not seen this story why do you think it is that the media doesn't cover the fact that we have three hundred thousand plus less federal employees and yet operating the government more efficiently. Tax refunds are going out quicker. The government's more responsive. Uh, does that seem like a disconnect?
I think it absolutely seems like a disconnect.
OK, perfect. Uh, next question I have for you, and you talked about this with uh, Senator, Senator Scott. We have obviously the uh, Buy America Act. I'd like to also give a plug to Kevin Rhodes. He's doing a great job. Um, obviously you know that uh, the uh, nitrile glove manufacturing epicenter of the entire universe is in Ohio. And how quickly do you think we can get these procurement orders done so that, uh, the, uh, former paper mill in Chillicothe, Ohio, which got shut down by a, uh, a, uh, private equity fund that was best buddies with the Bidens. And, uh, we've now got that into a nitro glove manufacturing facility that's gonna start thriving when can when can they expect to get orders so that we stop having, uh, Chinese nitro gloves, uh, flooding the US market?
No, Senator, I absolutely appreciate the question and I've really appreciated working with you on this issue. so uh as you may or may not know we started moving out on a new contract to sort of consolidate nitrile glove um procurement within the federal government for all agencies to insure we are buying american nitrile gloves so that contract began executing at the beginning of this month it started with a few agencies and it's gonna rollout and expand to a larger swath so i think we will start seeing the the buying power and demand signal really expand here uh over the next few weeks
And and that's a huge contrast to what Biden was doing, which is just flooding the zone, giving these companies, uh, tens of millions of dollars, and they actually didn't produce a single solitary glove. What we're doing instead is giving them uh demand signals so that they can build their business and grow it. So it's an amazing accomplishment. Uh, I I would be remiss if I didn't end by congratulating you on being nominated by the president of the United States. I think if we could clone you and duplicate you all over the government, uh, the government would run even more efficiently. Maybe we
i appreciate that senator.
uh thank you mr. chairman um mr. duncan just listening to your responses to senator moreno i can tell you that the people who are waiting in long lines at social security regional offices don't think things have gotten more efficient you're aware of the fact that the irs has warned that this year's tax season was at risk due to staffing shortages are you aware of that fact
senator obviously we're trying to
i'm just asking you if you're aware of that fact that they warned that this year's tax season efficiency was at risk because of staffing shortages are you not aware of that
senator i'm not aware of the exact item you're i'm happy to take a look at it if it's in front of you um but obviously everything that we are doing is
yeah
toward a commitment for efficiency for the american people
well in fact you've had to rehire people who were fired uh at the irs that doesn't sound like it's more efficient to me the same is true at at fema uh fema reinstated fire disaster response personnel ahead of the hurricane season because they were unprepared were you aware of that fact
uh senator i'm not aware of this specific thing that would be a
i were like
FEMA uh related item that I've had the news of.
Yeah, a lot of this of course feeds up through the uh the OMB. Same is true of National Weather Service. Uh, GSA cited staffing shortages on mission critical needs. Are you, were you aware of that?
I'd have to defer to the National Weather Service on that item.
In fact, by early this year, an estimated twenty-five thousand federal employees had been rehired after being initially terminated. Do you know how much that's cost the taxpayer, rehiring the same people who were in the job before?
Senator, I don't have an estimate in front of me, but we're always working to, uh, optimize staffing levels.
Well, I have an estimate from the Partnership for Public Service. They're a nonpartisan entity. They say just that process of having to go through rehiring the same people that were fired cost the taxpayer twelve million dollars. That doesn't sound more efficient to me. Mister Duncan, um, your boss at OMB, uh, director of vote, uh, has said, quote, when civil servants wake up in the morning, we want them to not want to go to work because they are increasingly viewed as the villains. He went on to say, and I quote, we want to put them in trauma, unquote. Do you see merit-based civil servants as the villains?
Senator, first director Vogt has addressed that quote multiple times in this committee.
I'm asking you what you believe. Do you believe civil servants are the villains?
As I mentioned in my testimony, I think the OMB civil servants who are the ones I most closely with as well as director vote who has a wonderful relationship with those civil service are among the best best and brightest in the federal government.
Excellent. So you don't wanna put them in trauma, do you?
Senator, that quote you're referring to, director vote is addressed is related to certain
Yeah.
bureaucracies in the federal government that have been
Uh, it's just a question for you, not for mister vote. Do you wanna put federal employees in trauma? Yes or no?
Senator, you're directly referring to
I'm asking what your view is. Do you think it's a good idea? to put federal employees in trauma.
I work very well with the civil servants at OMB. The quote that you're referring to was a reference to weaponized bureaucracies.
I'm asking you, Mr. Duncan, I'm asking you right now what your view is. Do you wanna put federal employees into trauma, yes or no?
Senator, like I said, I s- completely support the civil servants that work at OMB. And that quote that you're referring to has been taken out of context,
I wou- I was asking you your view,
and it's been addressed by the director of your
so it's interesting you don't wanna provide a a direct answer. So listen. Uh, Senator Murray and others have raised concerns about this new, uh, proposal to completely politicize the grant making process, the update to uniform guidance. I hope people can understand that coming from an administration that wants to create a slush fund, to use taxpayer dollars, to make payouts to individuals convicted of assaulting Capitol Police on January sixth, the idea of further politicizing the grant process is really, really alarming. And I know this is in process. I wanna talk to you anoth- about another political effort going on to make sure that you wanna replace about eight thousand merit-based civil servants with political appointees. You wanna make eight thousand positions at will. And I was just looking through the OMB list here, people who would now be made at will. Um, one of those senior policy analysts' positions a physical scientist. Why why do you want to make that into a political position?
Senator, I appreciate the question, and I think, uh, both the updates to two CFR and the scheduled policy career are about one thing and that's accountability. Um, so, as it relates to the individuals placed in scheduled policy career, it's fundamentally about ensuring that the delivering on the job they
So i- so if a physical scientist is providing a factual assessment to folks at OMB and the political folks there don't like their assessment, that person will now be able to be fired. Isn't that right?
Senator, that is not at all what the, uh, goal of the
Isn't that right, though, you will make them at will as perp- as opposed to having any merit-based protections. Isn't that what you're gonna do?
S- Senator, the goal of the proposal is to ensure that the individuals implicated or delivering the highest level of services for the american people.
yup i see under senior policy analysis you got a toxicologist you got a physical scientist i would just say to our colleagues you're going down a very dangerous road here by taking these positions that have been merit-based career positions and turning them into political positions subject to politicization in these positions um it is a very bad idea And I hope you will reconsider. Thank you, Mr. Chairman.
Certainly.
Thank you, Mr. Chairman, thanks, Mr. Duncan, uh, for being with us today and for your willingness to serve the country. Um, I wanna talk to you briefly first about, um, the proposed uniform guidance reforms. Uh, the- these are reforms that are intended to save the taxpayer money, to make government operate more effectively, more efficiently, and keep the government focused on what it's supposed to be doing rather than opening the door to waste, fraud, abuse, and other problems, including some violations of federal law. From your perspective, eh, how would these proposed uniform guidance reforms, eh, help improve the federal government's ability to accomplish these goals, to sa- safeguard taxpayer funds, while simultaneously holding responsible, uh, i- any grantees that failed to comply uh with these requirements.
Uh, absolutely, and I appreciate the senator uh the question, Senator. Um, so two CFR updates are, as I mentioned, all about accountability. It's ensuring that some of these outrageous uh spending that we have seen in the past is not going out the door, by adding an additional layer of accountability by having a political appointee, someone that is directly responsible to the president and directly accountable to the president, saying hey this is a good use of these funds we believe this or asking some additional questions before it goes out or saying no i think some additional uh items in there that we're really excited about ensuring that dei practices are not being funded by uh grants ensuring that illegal immigration is not being funded by grants we certainly saw that in the last administration seeing that uh ensuring that um radical gender ideologies aren't being funded by grants um and putting additional controls to ensure fraud is not committed and if it's identified, is sent to a prosecuting authority. Finally, I think one thing that we're really excited about as well is an e-verify requirement for grant recipients. We think it's fundamental that someone that is receiving taxpayer dollars from the federal government through, uh, grants is hiring folks that are authorized to work here. So that does that for both the prime recipient and the subrecipients. Um, And in addition to other things that we're doing in the guidance, uh, we think this will really help us wrap our, uh, arms around the trillion dollar grand enterprise.
By the way, speaking of political appointees, a minute ago you were asked questions in a way that suggested that political appointees are somehow bad, that it's a bad thing. Uh, the process is set up to be political, is it not? And, political, the word itself refers to sort of of the people, by the people, for the people, doesn't it?
Absolutely, Senator, the political appointees are the ones directly accountable to the President, who article two of the Constitution vests the executive authority through the election by the people.
So we elect a president, and then, uh, the, the suggestion being that to have a political appointee is somehow problematic, and yet, uh, the alternative is basically the deep state, uh, the sort of permanent career civil servant class, people who are more or less insulated from the political process. So when they rail against political appointees, they're really railing against accountability to the voter, because the president is elected by the people and is expected to do the job the people hire the president to do. Now, um, in the end, I suspect that these reforms, when implemented, will be very helpful. On a different topic, uh, I've introduced in the last Congress, ag- and again in this Congress, some reforms under the title of the America First Act. The America First Act aims, uh, to make sure that we turn off, uh, uh, uh, at least one of the sources of, um, attraction, uh, uh, one of the things that bring people here illegally and keep them here illegally. It would ensure that only U. S. citizens, um, a- and also lawful permanent residents can participate in a whole host of uh federal benefits that are designed to help americans uh uh certainly not illegal aliens including medicaid snap housing benefits education benefits and a handful of other programs so uh i guess uh mister duncan my question for you is should the opportunity arise as i hope it does for us to do another round of reconciliation this year Uh, we commit to working with Republicans in Congress, uh, to - to help us enact these new restrictions.
Senator, absolutely. And I think we made a down payment on some of those restrictions, uh, uh, in the, uh, uh, Working Families Tax Cut Act, making sure that these services intended for Amer- the American people and American citizens are in fact going to American citizens.
These things are paid for, um, uh, by the American people. they were benefits created for the american people and when we ease up on restrictions on those when we make it too easy uh uh for those who are not citizens particularly those who came here illegally or remained here illegally we encourage more of that same thing to happen and that in turn makes it far more difficult for us to provide these benefits uh to those for whom they were created namely american citizens thank you very much uh uh mister duncan thank you mister chairman
uh sir mark can you answer a few follow-up questions
yeah mark
uh so uh mister duncan you mentioned that ford president ford in nineteen seventy five had done a pocket rescission are you aware of other pocket rescissions up to the current administration
um senator no off not off the top of my head
ok well the reason why is because after that ford decision occurred you had several Supreme Court decisions. Uh, one of them made it, uh, very clear that in general, uh, any sort of, uh, impoundment is unacceptable and a rescission is done without Congress as a form of impoundment. And then you had a nineteen eighty-three decision that said, uh, both houses have to vote affirmatively on a rescission. That's actually in the nineteen seventy-four Act. So it reaffirmed what the Act said, that a rescission had to be done. And then uh Clinton versus New York ruled out the the line item veto which is essentially a rescission, pocket rescission is kind of like a line item veto. That's why it's never happened since Ford. So I just wanted to note that that foundation in law, the Ford example doesn't at all uh address legitimacy or illegitimacy. The law still says any rescission must be done and signed by both houses of Congress, or must be passed by both houses of Congress. Uh, second, I was very concerned that the budget submitted for this last year did not have any deficit and debt projections. The law actually requires the budget that the president submits to have deficit and debt uh information. Will you push to make sure deficit and debt information is in the next submission to Congress?
Um, Senator, I appreciate the question, and as director vote, uh, um, testify when he was up here, uh, discussing the budget. Our budget for FY twenty seven was a discretionary budget. We wanted to help kick off the twenty seven.
No, I understand, but the law requires deficit and debt. Will you work to follow the law in the next submission to Congress?
Senator certainly will work to follow the law. I wanna note that we will release additional, uh, projections of that sort, like we did last year in the mid-session review, which will come this summer.
Yeah. I wanna know that when Vogt did testify, he said he didn't follow the law. because he didn't wanna confuse the american public two problems with that first of all that says the american public are idiots they're not idiots they follow deficit and debt very closely this is a big problem for the united states of a of of america and second of all he is not authorized to break the law and if you're working for him as a deputy i hope you'll raise a yellow flag if he seeks to break the law again by not putting deficit and debt into um i raised another issue was the shutdown of programs that are authorized and funded And right now there's a program called the Ocean Observatories Initiative, uh, that has nine hundred sensors in the ocean. And the administration announced that it is going to take out four of the five arrays of these ocean sensors which measure uh current direction, temperature, uh, photo-plancton, uh, acidity, uh, salinity, and so forth, which are pretty much important information about the oceans. congress has not asked these censors to be taken out they've not asked this program to be shutdown and there is a law on on the books that says that to undo a program that's over two point five million in the commerce justice and science funded through the commerce justice and science there has to be even if it's just being decommissioning it it has to have a thirty day notice to congress are you familiar with whether any such thirty day notice was given
uh senator i'm not familiar with the program in in question i would have to defer to the department of congress on that and i would really quickly notely note that director vote when he was up here testifying on not including mandatory what he said was in context of the uh of another reconciliation bill coming down the pike so i just wanted to contest the characterization of how it was framed um in terms of what he was discussing when he put forward uh that assertion about just putting a mandatory budget forward
you mean the assertion about not confusing the public that assertion
yes sir
yeah well i don't think there is any ok you i understand why you would wanna defend the director i i did not find uh wanting to not confuse the country as a legitimate reason to hide the deficit in debt numbers uh the um really hope uh that uh because both democrats and republicans have weighed in and said don't dismantle this ocean array it's authorized it's funded and the law requires notice to congress uh and it just it it is but from every scientist we can talk to i mean sheer stupidity to pull out uh an array that costs hundreds of millions is information's been used in over five hundred studies it's an example of what i'm talking about of the administration trying to respect the separation of powers if congress says to you take it out fine if they do that by law but when it's authorized and funded and the administration just says well we don't like this program so we'll we'll rip it out that's that's not ok my final point i just wanna emphasize that the actions that have been taken in which grants are awarded preferentially to states that have either state leadership or federal elected leadership, that is red rather than blue, that's unacceptable. Will you pledge to keep the sense of not having grants allocations, uh, I guess, contaminated by partisan, uh, uh, undertakings or influences?
Uh, Senator, certainly commit to ensuring that grants are spent in accordance with the law, and but fundamentally in accordance with the the president's priorities as well
ok but that didn't answer my question so will you commit to keeping partisan influence out of the award of grant programs
senator obviously the american elect the people uh elected the president as we discussed uh last night there is he is given discretion within the boundaries of the statutes to award uh um uh grants based off of his uh policy views so will certainly commit to abiding by the law and effectuating the president's agenda
alright so my i have to i have to wrap this up but
yes you do
thank you thank you for your time and i hope that that view will change let's think about it before we go to the first meeting of the city and in a sense it's ok to just want to pull out the stage and have a few more suggestions
thank you senator merkeley um i do hope that you will enact the president's priority regardless of the state and you have a chance to enact budgets and grants based on the priorities of this president and i hope he will take advantage of that as other presidents do that's what elections are all about senator merkely so um i want to thank mr. duncan for appearing before the committee the hearing record will remain open until noon tomorrow for the submission of statements and questions for the record to the uh committee clerk well done mr. tonkin the hearing is adjourned we did it
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