December 12, 2011

Today I joined Rep. Cathy McMorris Rodgers (R-WA) and 21 other colleagues in urging House and Senate appropriators to save U.S. taxpayers’ money by rescinding $108 billion in U.S. contributions to the International Monetary Fund (IMF) that is being used to bail out wealthy European nations.  In 2009, Congress approved the $108 billion increase in IMF contributions at the request of President Obama and over the objection of myself and nearly all House Republicans who voted against it.  Americans for Prosperity and 19 other conservative organizations recently sent their own letter to Congress also calling for the IMF European bailout money to be rescinded (letter here).

It’s absolutely unacceptable to force U.S. taxpayers to pick up the tab to bail out foreign nations, particularly wealthy ones like those in Europe.  With almost $15 trillion in federal debt and an annual deficit of over $1 trillion, Uncle Sam can’t afford to bail itself out, much less other countries.

The full text of the letter sent to House and Senate appropriators is below.

Thanks,

Walter

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Dear Conferees:

As you consider the funding issues for FY2012, we are writing to ensure that provisions of H.R. 2313, a bill that rescinds the $108 billion in increased quota contributions and borrowing authority to the International Monetary Fund (IMF), are included in your final appropriations package.

As the European financial crisis continues to unfold, the IMF continues to spend hundreds of billions of dollars bailing out members of the European Union.  As the largest contributor to the IMF, the United States and the American taxpayer are condoning the practice of profligate spending undertaken by members of the European Union with bailout packages.  Bailout packages have been made available to European Union members that don’t even meet their own economic requirements for membership, such as Greece that maintains a reported debt to GDP ratio of 140 percent and Italy with a reported debt to GDP ratio of 120 percent, and have provided little to no guarantee that any fiscal reform will be enforced.  What’s more disturbing is that over the last several days, the Administration has made clear its intent to continue supporting these bailout efforts.

Earlier this summer, the House State, Foreign Operations, and Related Agencies Subcommittee issued a draft report for its FY 2012 State, Foreign Operation, and Related Agencies appropriations bill, which included language “requiring all funds provided to the International Monetary Fund in the Supplemental Appropriations Act, 2009 (Public Law 111-32) be de-obligated, withdrawn, and rescinded.”  H.R. 2313 continues these efforts rescinding the $108 billion in increased quota and new borrowing authority.

The time for wasteful spending is over – both here and abroad.  The United States cannot continue this wasteful practice.   We urge you to rescind the $108 billion in enhanced quota contributions and borrowing authority that were requested by the Administration in 2009.