Ranking Member Shaheen, Senator Grassley Introduce Bipartisan Exchange Stabilization Fund Transparency Act

WASHINGTON - Today, U.S. Senators Jeanne Shaheen (D-NH), Ranking Member of the Senate Foreign Relations Committee, and Chuck Grassley (R-IA) introduced the bipartisan Exchange Stabilization Fund Transparency Act which would provide much-needed transparency over the use of the Exchange Stabilization Fund (ESF) to provide financial support to foreign governments.

The Exchange Stabilization Fund was created as a tool to quickly intervene in currency markets during fiscal or monetary crises. This legislation would ensure that when an administration uses the Fund to provide currency swap lines, extend credit or financial support for the sovereign debt of a foreign country, Congress receives sufficient notification and justification. Currently, Treasury is not required to justify use of the Fund, even to bail out foreign countries.

The full text of the legislation can be found HERE.

"At a time when so many Americans are struggling at home, we deserve real transparency about the use of taxpayer resources to bail out foreign countries," said Ranking Member Shaheen. "Congress must ensure that our tax dollars are protected and not abused to meddle in domestic politics on behalf of political allies. Under this Administration, recent foreign bailouts have been carried out with no explanation to Congress or the American people, making clear the need for the congressional oversight and accountability proposed in this legislation."

"Congress ought to have a clear understanding of how taxpayer dollars are being used, and that includes usage of the Exchange Stabilization Fund," Senator Grassley said. "This bill would help ensure Congress has better insight into the Fund's application, from past administrations to future ones."

This legislation would:

• Create enhanced transparency regarding the use of the Exchange Stabilization Fund, including:
  
  
  • Require a detailed justification on how the proposed Fund support advances U.S. national interests.
    
    
  • Require a detailed description of planned Fund assistance, the duration of such support, timeline for repayment, and terms of any assistance agreements.
    
    
  • Require briefings to Congress within a week of providing assistance to foreign countries through the Fund.
    
    

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