Press Releases

Today, Congressman Bill Huizenga (R-MI) announced the introduction of the Special Drawing Rights Oversight Act with Representatives French Hill (R-AR) and Andy Barr (R-KY). This bill limits the executive branch’s ability to bypass Congress to authorize Special Drawing Right (SDR) allocations by limiting the size and frequency of allocations unless Congress authorizes them by law. Under current law, the U.S. Treasury has broad authority to unilaterally approve an SDR allocation. This bill ensures a proper check on the executive branch and greater accountability.

Last July, Congressman Huizenga, in a video viewed over 1.2 million times on Facebook alone, highlighted how Democrats slipped a directive to support an approximately $3 trillion bailout out for nations across the globe through the International Monetary Fund (IMF). This would have provided billions of dollars for regimes and governments opposed to American interests including Iran, Russia, and China. While Democrats did pass the legislation through the House last Congress, it was not signed into law.

The Special Drawing Rights Oversight Act is a direct response to these actions as well as the recent comments of Treasury Secretary Janet Yellen expressing openness to an SDR allocation in a letter to G20 colleagues. This position has been endorsed by Financial Services Committee Chairwoman Maxine Waters (D-CA), who has even encouraged Secretary Yellen to circumvent congressional oversight by issuing up to $650 billion in SDRs. If this were to happen, China would get $41.7 billion, Russia $17.6 billion, and Iran $4.9 billion.

“By pursuing an SDR allocation, the Biden administration is pushing for the IMF to give away billions of dollars to rogue nations around the globe," said Congressman Bill Huizenga (R-MI).  "The notion that Democrats are considering sending over $41 billion to the Chinese Communist Party, more than $17.5 billion to Vladimir Putin and his cronies, and nearly $5 billion to an Iranian regime that is the world’s foremost state sponsor of terrorism speaks volumes about their misguided priorities. American taxpayer dollars should not be used to prop up these brutal and adversarial nations. The Special Drawing Rights Oversight Act applies an important check on the executive branch by requiring Congress to approve any SDR allotment requested for a nation that is a state sponsor of terrorism or a nation that has committed genocide. Additionally, this commonsense approach places specific requirements on both the amount as well as the frequency SDRs can be approved unilaterally by the Treasury Department.”

“Circumventing Congress to implement bad policies was a hallmark of the Obama administration’s foreign policy and it is alarming that the Biden administration is mirroring that policy. Under President Biden’s plan, China, Russia, Venezuela, Iran, and Syria could receive nearly $70 billion from the IMF,” said Congressman French Hill (R-AR), author of the legislation. “The Special Drawing Rights Oversight Act will help ensure that rogue countries cannot access this funding and that the most vulnerable countries get the assistance they need.”

“International financial institutions need more accountability and should not serve as a slush fund for state sponsors of terrorism, countries complicit in genocide or other malign actors,” said Congressman Andy Barr (R-KY). “Rather than tackle the important issues like reopening schools, ensuring stability for small businesses and vaccinating Americans, congressional Democrats and the Biden administration are prioritizing funding via SDRs to countries like China, Russia and Iran. This bill is essential to ensure appropriate congressional oversight of SDRs and their responsible allocation.”