[Senate Hearing 113-562] [From the U.S. Government Publishing Office] S. Hrg. 113-562 THE NOMINATION OF LISA AFUA SERWAH MENSAH, OF MARYLAND, TO BE UNDER SECRETARY OF AGRICULTURE FOR RURAL DEVELOPMENT ======================================================================= HEARING before the COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY UNITED STATES SENATE ONE HUNDRED THIRTEENTH CONGRESS SECOND SESSION __________ SEPTEMBER 10, 2014 __________ Printed for the use of the Committee on Agriculture, Nutrition and Forestry Available via the World Wide Web: http://www.fdsys.gov/ ______ U.S. GOVERNMENT PUBLISHING OFFICE 93-033 PDF WASHINGTON : 2015 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY DEBBIE STABENOW, Michigan, Chairwoman PATRICK J. LEAHY, Vermont THAD COCHRAN, Mississippi TOM HARKIN, Iowa MITCH McCONNELL, Kentucky SHERROD BROWN, OHIO PAT ROBERTS, Kansas AMY KLOBUCHAR, MINNESOTA SAXBY CHAMBLISS, Georgia MICHAEL BENNET, COLORADO JOHN BOOZMAN, Arkansas KIRSTEN GILLIBRAND, NEW YORK JOHN HOEVEN, North Dakota JOE DONNELLY, INDIANA MIKE JOHANNS, Nebraska HEIDI HEITKAMP, NORTH DAKOTA CHARLES E. GRASSLEY, Iowa ROBERT P. CASEY, Jr., PENNSYLVANIA JOHN THUNE, South Dakota JOHN WALSH, MONTANA Christopher J. Adamo, Majority Staff Director Jonathan J. Cordone, Majority Chief Counsel Jessica L. Williams, Chief Clerk Thomas Allen Hawks, Minority Staff Director Anne C. Hazlett, Minority Chief Counsel and Senior Advisor (ii) C O N T E N T S ---------- Page Hearing(s): Nomination of Lisa Afua Serwah Mensah, of Maryland, to be Under Secretary of Agriculture for Rural Development................. 1 ---------- Wednesday, September 10, 2014 STATEMENTS PRESENTED BY SENATORS Stabenow, Hon. Debbie, U.S. Senator from the State of Michigan, Chairwoman, Committee on Agriculture, Nutrition and Forestry... 1 Cochran, Hon. Thad, U.S. Senator from the State of Mississippi... 2 Panel I Mensah, Lisa Afua Serwah, of Maryland, to be Under Secretary of Agriculture for Rural Development.............................. 3 ---------- APPENDIX Prepared Statements: Thune, Hon. John............................................. 18 Mensah, Lisa Afua Serwah..................................... 20 Document(s) Submitted for the Record: Public 5 day letter, Committee Questionnaire and Office of Government Ethics Executive Branch Personnel Public Financial Disclosure Report filed by Lisa Afua Serwah Mensah..................................................... 24-40 Question and Answer: Mensah, Lisa Afua Serwah: Written response to questions from Hon. Debbie Stabenow...... 42 Written response to questions from Hon. Thad Cochran......... 43 Written response to questions from Hon. Heidi Heitkamp....... 44 Written response to questions from Hon. John Thune........... 46 NOMINATION OF LISA AFUA SERWAH MENSAH, OF MARYLAND, TO BE UNDERSECRETARY OF AGRICULTURE FOR RURAL DEVELOPMENT ---------- Wednesday, September 10, 2014 United States Senate, Committee on Agriculture, Nutrition and Forestry, Washington, DC The committee met, pursuant to notice, at 10:05 a.m., in room 328A, Russell Senate Office Building, Hon. Debbie Stabenow, Chairwoman of the committee, presiding. Present or submitting a statement: Senators Stabenow, Leahy, Donnelly, Walsh, Cochran, Boozman, and Hoeven. STATEMENT OF HON. DEBBIE STABENOW, U.S. SENATOR FROM THE STATE OF MICHIGAN, CHAIRWOMAN, COMMITTEE ON AGRICULTURE, NUTRITION AND FORESTRY Chairwoman Stabenow. Well, good morning. The Senate Committee on Agriculture, Nutrition and Forestry will come to order. Senator Cochran is on his way and will be joining us shortly, and so, welcome. We are here today to consider the nomination of Lisa Mensah to be the next Under Secretary of Rural Development at the Department of Agriculture, a really important role that we all care very much about, so we thank you for being here. I am glad to see you have family and friends with you, as well. When we turn to you, you certainly are welcome to introduce them. We are glad to have them here supporting you, as well. Preserving our rural way of life is near and dear to my heart, as I know my colleagues of the committee care very much about this particular part of USDA. Having grown up in Northern Michigan in the small community of Clare, I know it is important that we provide small towns across the country the tools they need to grow and prosper. The unique challenges that rural America faces when it comes to creating economic opportunity are real. According to a report issued by USDA's Economic Research Service, between 2011 and 2013, net job growth in rural areas was near zero, while employment rates in metropolitan areas grew at an annual rate of 1.4 percent. One of the most significant challenges facing rural America is aging infrastructure. Without a safe drinking water supply, adequate housing, or affordable broadband Internet service, it is difficult for small businesses to recruit new employees and compete in the global economy. You have been nominated to ensure that the resources that this committee provided for infrastructure improvements in the 2014 farm bill will be invested effectively to help these communities take advantage of new opportunities for growth and development. I believe that the new energy economy is an exciting opportunity for rural America to develop new markets and create jobs. One area that this committee highlighted in June is that of bio-based manufacturing. In addition to a hearing that focused on the new support for bio-based manufacturing included in the farm bill, we hosted an event that featured innovative products developed by more than 30 companies around the country with homegrown materials. Implementing some of the new farm bill initiatives in support of this growing industry will be part of your responsibilities, if you are confirmed. The new energy economy is so exciting, in part, because it offers long-term economic development opportunities for rural America. The new farm bill provides incentives for leaders in these small towns to think strategically about long-term economic development for their communities. If these leaders collaborate on regional economic development strategies based on the unique characteristics and strengths of their communities, we will see the creation of job opportunities that will more likely stay at home in those communities. Helping local leaders pursue initiatives that lead to long-term community and economic development is an important responsibility for USDA as it implements Rural Development programs. I appreciate very much having the opportunity to speak with you, Ms. Mensah, and learn more about your background. I look forward to your testimony and your answers to questions of the committee members today. If confirmed, I fully expect you to work with this committee and Congress in helping to implement policies that will help rural America grow and prosper. It is now my pleasure to turn to my friend and distinguished Ranking Member, Senator Cochran. STATEMENT OF HON. THAD COCHRAN, U.S. SENATOR FROM THE STATE OF MISSISSIPPI Senator Cochran. Thank you, Madam Chairman. Thank you for your convening of this timely hearing for the nominee for Under Secretary of Rural Development at the Department of Agriculture. We welcome the nominee to the hearing and thank her for her cooperation with the committee and giving us information and requests for any statements that she might make about her views about the responsibilities of the office for which she has been nominated. We look forward to the questions and answers at this hearing and expecting that they will be helpful to our understanding of her qualifications for service in this important position. Chairwoman Stabenow. Thank you very much, Senator Cochran. I now have the pleasure of introducing our nominee, Ms. Lisa Mensah, who has served as Executive Director of the Initiative on Financial Security at the Aspen Institute since 2002. Prior to joining the Aspen Institute, Ms. Mensah held a variety of positions at the Ford Foundation, including Deputy Director of the Economic Development Unit and Deputy Director of the Rural Poverty and Resources Program. She has also worked at Citibank for a time after receiving her Bachelor's degree from Harvard University and a Master's degree from Johns Hopkins University. We are very pleased to have you with us today. We welcome your testimony. As you know, we ask for five minutes of verbal testimony. We welcome any written additional information you would like to leave with the committee, but we look forward to your testimony, so please proceed. TESTIMONY OF LISA AFUA SERWAH MENSAH, OF MARYLAND, NOMINATED TO BE UNDER SECRETARY OF AGRICULTURE FOR RURAL DEVELOPMENT Ms. Mensah. Thank you, Madam Chairwoman and Ranking Member Cochran. Thank you for this opportunity to appear before you today as President Obama's nominee for Under Secretary of Rural Development. If confirmed, I look forward to helping the President and Secretary Vilsack build on the accomplishments of this administration by working to strengthen rural areas and create sustainable growth for future generations. I am joined today by my husband, Barry Ford, and my two children, Rebecca and Andrew. Chairwoman Stabenow. We welcome them to stand up so that we could---- Ms. Mensah. This is my husband, and also my father and brother. [Applause.] Ms. Mensah. My father, Kwaku Mensah, and brother, David. Chairwoman Stabenow. Your father, your brother, your husband---- Ms. Mensah. My two children. Chairwoman Stabenow. --your son, your daughter. You have the full---- Ms. Mensah. I brought everybody. [Laughter.] Chairwoman Stabenow. --family with you. That is wonderful. Ms. Mensah. Thank you. I also have several lifelong friends and colleagues, and they truly bear witness to the significance of this moment in my life. My journey to this room is proof that the American dream of opportunity is alive and well. I am the daughter of an immigrant from Ghana and of a farm girl from Iowa and Oregon who raised their three children with a simple guiding principle, that our earthly work was to leave the world a better place. They also believed in very hard work, and for the Mensah children, this meant summers picking strawberries to earn money. From the day school let out, we were up at 5:00 a.m. to meet the bus to take us to the fields. Being a strawberry picker means freezing mornings, hot afternoons, dirty clothes, and berry-stained hands. My parents assured us that picking would not kill us and that we would understand the value of a dollar, and in this, they were right. It took years for me to enjoy eating strawberries again---- [Laughter.] Ms. Mensah. --but this early experience ingrained in me a sense that hard work is rewarded, that goals can be reached, and that if I could handle Oregon strawberry fields, I could handle just about anything. I would like to give you a little more insight into my background and how it does prepare me to serve as Under Secretary for Rural Development. I went on from the strawberry fields to earn degrees at Harvard and Johns Hopkins, and then a professional life at Citibank, at the Ford Foundation, at the Aspen Institute. In all of this, I have focused on how credit, investments, savings, and ownership can transform opportunity, especially for America's rural poor. At Citibank, I learned the craft of credit, how to analyze the strength of a commercial venture. I took these skills to the Ford Foundation, where I was responsible for the country's largest philanthropic grant and loan portfolio of investments in rural America. I have pored over the financial statements of lenders trying to make a difference. I have sat at the workplaces of small businesses struggling to find new markets and create jobs. I have seen the struggle to bring development to areas that traditional markets neglect. I saw then what remains true today, that there is a vital role for capital, for partnerships, and for infrastructure investments that do not replace private capital, but can spark private capital markets. I truly share Secretary Vilsack's priority of building new partnerships to leverage the strengths of rural areas, to build new markets, to increase regional competitiveness, and to create more prosperous and sustainable communities. Today, we know that rural areas suffer from stalled job growth, from declining populations, and the highest poverty rates we have seen in 30 years. These challenges make growth and prosperity more difficult, but they also require that we do just that. As I see when I visit my father's country of Ghana, when countries cannot make rural infrastructure work, they not only impede the growth of rural people and places, they hold back the whole nation. I am convinced that the potential exists for rural America's economy to continue to grow and compete globally and I am so eager to lead a mission area whose job it is to help rural communities find a path to prosperity. Taken together, the three Rural Development agencies--that is Rural Development Business and Cooperative Services, the Rural Housing Service, and the Rural Utilities Service--they have a loan portfolio of over $200 billion in direct loans and guarantees. It is a powerful portfolio that must be managed well, both to ensure repayment and to ensure that we look for wise and efficient investments. If confirmed, I look forward to returning to this committee to discuss how the USDA is using the program authority you provide to do even more. If confirmed, I will be honored to work alongside the nearly 5,000 employees who serve in this mission area. As I conclude, I am reminded of my first trip to Washington, DC. In 1979, I came here as one of two student leaders from Oregon sponsored by the William Randolph Hearst Program. I met with Senators then Hatfield and Packwood, and I was deeply moved by their belief that I should prepare myself to take the torch of leadership. Most of the time, that has been a private torch, but I am so honored to be sitting here today, prepared to assume the responsibility of public service. I am humbled to be before your committee. You have such a history of bipartisanship. Throughout my history, I have made a practice of listening to all and searching for solutions. At Aspen, I have built one of the country's most bipartisan tables, and if confirmed, I will keep my door open, I will stay responsive to you who hold the privilege of representing the citizens of your States. I hope I have provided you with some insight on how I might contribute to building a prosperous rural America. I look forward to your questions. Thank you. [The prepared statement of Ms. Mensah can be found on page 20 in the appendix.] Chairwoman Stabenow. Well, thank you very much. Before proceeding with questions, we have one other official thing we need to do. We need to ask you to rise and ask you a question. Do you agree to appear before any duly constituted committee of the United States Congress, if asked? Ms. Mensah. Yes. Chairwoman Stabenow. Yes. Thank you very much. Well, given your impressive background, Ms. Mensah, in dealing with economic development and rural poverty and so on, what do you see as the greatest economic challenges facing rural communities, and as Under Secretary, what would you do to address the challenges that you see are there? Ms. Mensah. Thank you, Senator. For me, the challenge of rural America is to ignite the power of rural America, and what I am so excited about are the three sets of tools that this mission area has. Yes, we have challenges, but to be able to invest in housing and in job-growing businesses and also in critical infrastructure, to me, speaks directly to the challenges of growth and prosperity for all areas. That is what I am very excited about in this portfolio. Chairwoman Stabenow. When you look broadly at job creation--I mentioned the energy title, which crosses a number of different areas in USDA, but certainly in terms of jobs, we put a lot of emphasis in the farm bill on creating opportunities for loans and loan guarantees and opportunities to really expand upon the bio economy through the energy title and so on. I am wondering, from your perspective, how would you, as someone who is coming from a grant-making organization, address getting the dollars out for these kinds of projects, investing them both quickly--we obviously want to stimulate the economy as quickly as possible, but, of course, we want to be careful stewards of the taxpayers' dollars, as well--I wonder if you have looked at some of the opportunities not only in biofuels, but in bio-based manufacturing, the ability to use agricultural materials and products to be able to create new opportunities and jobs. Ms. Mensah. Senator, thank you for your interest in that area and for the authority that has already been established in this farm bill. I am very excited about the opportunities in the bio economy, and it feels to me like a new chapter in Rural Development. When I was at the Ford Foundation, I did not just do grants. I did loans. Some of those were in your State, in the Upper Peninsula of Michigan. I remember what was so critical to getting loans out was very smart partners. We had institutions like Northern Initiatives that were creative loan funds who could go into small towns, find partners. That is what I think speed takes. It takes people who are already on the ground, prepared to use the funds that are precious and wise stewards of those funds. I very much look forward to this new chapter in rural America. Chairwoman Stabenow. Well, thank you. I agree with you. Northern Initiatives is wonderful in the Upper Peninsula of Michigan and it really is about partners, I think. When you look at leveraging resources, again, from your perspective, coming from the private and nonprofit sector, and considering your background with Ford and so on, I think you really bring a fresh perspective to this. What new opportunities do you see for the USDA to help communities maximize the impact of resources and leverage those kinds of partnerships? Ms. Mensah. Well, I am very excited to be joining the Department at this moment. Partnerships has been a word that I know has been a big priority of Secretary Vilsack. What I really feel is that we are poised to take off. This farm bill was passed. There is time now to really create serious partnerships, and I feel like I am walking into a set of skilled and talented staff who really understand those portfolios and I will be able to help them find the other partners on the private side who can help take this work even further. Chairwoman Stabenow. What do you think we could do to leverage more private foundation dollars? I mean, obviously, we are looking at that throughout our efforts in agriculture. We have a new public-private research foundation where we are putting in public dollars, but also activating the foundation with private dollars, as well. In other areas, I mean, how do you see us, again, from your perspective, playing an intermediary role between private foundations and rural communities? What do you think you could do? Ms. Mensah. Well, I appreciate the question very much. I think they need to know we are here. I think--I also think there are a lot of foundations that focus on core larger challenges--youth, the challenges of education, the challenges of growth. They might not always have a rural lens, but they will need to know we are here. I am excited about calling folks up, bringing them in. I do not plan to stop talking to my friends in that sector. I think they are going to be very excited. The key for a foundation is leverage. A foundation will never be as big as the U.S. Government. Their success is dependent, also, on a partnership with this work. Chairwoman Stabenow. I appreciate that very much. I think it is really true. When we look at--there is very important work being done in urban areas. At the same time, though, when we look at poverty and the needs of people, there is not always a focus or understanding of rural communities. I think bringing that voice and focus could help our communities all across the country. Thank you very much. Senator Cochran. Senator Cochran. Madam Chair, thank you. Madam Secretary--I am moved to call you Madam Secretary---- [Laughter.] Senator Cochran. Let me, again, congratulate you on your nomination and wonder whether or not you can identify now, after reviewing the jurisdictional responsibilities of the office you have been nominated to fill, what are the highest priorities of this administration in terms of stimulating development and stimulating the availability of education, health care, services that really would do a lot to help improve the prospects for individual residents, citizens, businesses in rural America to prosper and succeed. Ms. Mensah. Yeah. Thank you, Senator Cochran, for your--for raising that issue. I think, I have learned so much in your State with key partners, like HOPE Enterprise, and I think you have raised the key issues of education and health and true community facilities. What is exciting to me about the priorities of this administration is the ability to work across lines. Yes, jobs are important. So are the infrastructure pieces of those jobs, and so are the housing pieces of those jobs. What I am excited about is a strategy that is not just one silver bullet, but several things together, and that, to me, is a very exciting piece and I look forward to working on this. Senator Cochran. Thank you, Madam Chair. Chairwoman Stabenow. Thank you very much. I now turn to our distinguished-most Senator Leahy. I was thinking this morning, as I am sitting here between two former Chairmen who have these wonderful portraits on the wall, so we not only get to see them in person, we get to see them on the wall, and I am surrounded by former Chairmen. [Laughter.] Senator Leahy. I could not help but notice---- Chairwoman Stabenow. Senator Leahy. Senator Leahy. --Madam Chair, that all but one of them have a head of hair. [Laughter.] Senator Leahy. But---- Chairwoman Stabenow. Senator Leahy. Senator Leahy. But, there are Senator Harkin, Senator Chambliss, and, of course, Senator Cochran and I still serve here, and I think the reason we do is because this committee means a lot to us and as much as it does. I compliment you and everybody else, again, on the farm bill, Madam Chair. Back here a couple of weeks ago, Secretary Vilsack was in Vermont, and Ms. Mensah, I told him of our meeting that we had just before the recess and how much that meant to me, and coming from probably the most rural State, or certainly one of the most rural States in the country. Our largest city is 38,000 people. What you and I discussed about REAP Zones and those things, very, very important to us---- Ms. Mensah. Yeah. Senator Leahy. Last week, in a speech about the state of broadband competition, the SEC Chairman, Tom Wheeler, noted that Americans living in urban areas are more than three times more likely to have access to next-generation broadband networks than those living in rural areas. I included in the farm bill a program to deploy ultra-high-speed networks in rural areas. I remember my grandparents telling me about how excited they were when telephones came to rural America. Something like that, we take for granted. We have to ensure that we have this broadband high-speed Internet, because otherwise, you are not going to bring the jobs into rural America that we want to, to say nothing about just the consumer interest in having this. My question is this. How will the Rural Gigabit Pilot Program advance USDA's efforts to close the broadband divide between urban and rural America? Ms. Mensah. Thank you, Senator Leahy, and for your commitment, your work on these issues. I am very excited about the authorities in this portfolio around rural broadband. Rural broadband is crucial to the kind of jobs, the growth, the ability for people to live and work in rural areas. It is the future. I am excited about being able to work on this, and if confirmed, I look forward to coming back and talking with you about how we can work even faster. Senator Leahy. Will you work for funding for that in the Department's budget? Ms. Mensah. Absolutely. Senator Leahy. Thank you. A lot of agencies have faced extremely difficult budget restraints, and there have been a lot of cuts on many important programs. I worry that in USDA, the cuts have disproportionately impacted Rural Development--a billion dollars in proposed cuts of loans and grants for business development, for example, water and waste disposal, rural housing, since 2010. They have been cut about 35 percent. I hope that you will work for funds for Rural Development. I am a member of the Appropriations Committee. I am eager to work with you. But, I think of the lack of funding. We cannot rehab affordable housing. We cannot make home ownership a reality in rural America with all that means. I should probably ask you this. What do you envision as a housing strategy for rural America? Ms. Mensah. Thank you, Senator Leahy, and I am very excited that this portfolio has a strong emphasis on housing. I believe that the housing needs need--what I know is that housing is critical at all levels, for single family, for multi-family, all different income levels. I worked at Aspen on the centrality of home. It is also people's most important asset. We will not be able to close a wealth gap if we cannot invest in housing. You will have in me someone who will always champion the interest of this, and in keeping the distinction. Rural has challenges and special needs, and I am so happy that this position has a focus on rural housing. Senator Leahy. Well, thank you. I think that not only is it your most important asset for most people, but it also sets a sense of community if people have their own homes. I have other questions which I will submit for the record and I would appreciate your answering. But, I also appreciate very much the meeting we had prior, and I suspect we are going to have some more. Thank you. Ms. Mensah. I look forward to that. Thank you. Chairwoman Stabenow. Thank you very much. Senator Boozman, welcome. Good morning. Senator Boozman. Thank you, Madam Chair, as always. Congratulations. This is certainly a great honor to be nominated. You have had a distinguished career, and it is a good sign when Senator Cochran calls you Madam Secretary. [Laughter.] Senator Boozman. I would like to ask you about an issue that we have had that affects Arkansas. In early August, we learned that in Arkansas, USDA--the State director determined that several rural communities in the State would no longer be eligible for USDA rural housing programs because their communities were not rural in character. This was very concerning to our Arkansas community, since they were notified less than two months before the reclassification was scheduled to take effect. While I was pleased to hear from USDA that they will hold off on implementing any changes for eligibility based on rural in character criteria until September 30, 2015, I would like to ensure that there is ample time for public comment, also commitment to seeing if we can get this worked out, and consideration before final designations are issued. Can you address that and comment regarding that, and perhaps get a commitment from you that you will look into that and see if you can be of help. Ms. Mensah. Thank you, Senator Boozman, for your question and for your obvious concern for the issues of housing. I have also traveled in your State with Enterprise HOPE and I have seen the different needs throughout the State. You will have in me, if confirmed, someone who is very committed to these issues of housing. Absolutely, I look forward to learning more about the specifics of the issue that you raise and to working with you for any of those concerns. Senator Boozman. When I am back in Arkansas, the number one thing on the minds of Arkansans is jobs, jobs, jobs. If you do not have a job, if you cannot support your family, all of these other things are really pretty insignificant. Often, our rural communities fall victim to higher levels of unemployment due to a lack of resources and community development. As Under Secretary of Agriculture for Rural Development, what steps would you take to ensure that our rural communities are receiving the necessary resources to grow their local economies and reduce unemployment? Ms. Mensah. Thank you. This is an area of my deep professional love and passion, which is how do all communities prosper? How do people prosper? How do we bring jobs to places that markets do not go? I am excited about this portfolio. I am excited about the tools of rural business development. I look forward to making sure that every community has an ability to compete for these funds and to working with you, if confirmed. Senator Boozman. I think in rural America, there is real concern about the perception and the actuality of overreaching regulation and just overreach in general. Could you speak to that, and then also share your issues that, if confirmed, I would really like to know what your number one priority would be as far as what do you want to get done? Where do you want to, however many years from now, step back and say, this is what my priority was and this is what we accomplished? Ms. Mensah. Both are deep questions. On regulation, I will commit to you that we will run a loan portfolio that is dedicated to being both efficient and making wise investments. On priorities, I said one thing, which it would be my job, first, to listen very, very hard to the people who wake up every morning and do their job at the Rural Development mission. I am obviously coming from the outside. I want to hear first. But, I think the critical moment, having already passed a farm bill, I think the critical priority for us is on implementing some of the powerful authorities that exist. What I want to see is some flourishing of the jobs and infrastructure and housing opportunities. Senator Boozman. Very good. Well, we hope to have you back in Arkansas. Ms. Mensah. Thank you, Senator. Senator Boozman. Thank you, Madam Chair. Chairwoman Stabenow. Absolutely. Thank you very much. Senator Donnelly from the great State of Indiana. Senator Donnelly. Thank you, Madam Chair, and congratulations. We are very honored to have you here. I wanted to ask you about just a specific Indiana question first, and that is that we have a town in one of our counties, Morgan County--the town is Waverly--and they are looking to take advantage of the REDLG Program, the Rural Economic Development Loan and Grant Program. While their community is currently eligible to take advantage of many Rural Development programs, USDA has not yet completed the rulemaking to allow Waverly to be part of this program. I was hoping that you could commit to finish the rulemaking in a timely manner for our town. Ms. Mensah. Thank you, Senator. What I can say is that the business loan programs, I will be--that is an area of deep passion and experience for me---- Senator Donnelly. Okay. Ms. Mensah. --and I have sat with those programs, know the regs, and I look forward--I will commit to you to coming back to you and working with you to resolve these issues. Senator Donnelly. We will look forward to having that conversation. One of the things we have done in our State is we have a-- my predecessor, whose picture is also on the wall, Senator Lugar---- [Laughter.] Senator Donnelly. There is a program at Indiana State University in Terra Haute named the Lugar Rural Health Initiative and we have a number of counties in our State now that do not have OB/GYN services. I think it has become an increasing challenge for a lot of our rural communities in the health area, and we are trying to develop more of a pipeline for primary doctors through that program and others. I was wondering what initiatives you are looking at to make sure that the kind of health services we hope for in all parts of our country can be extended to the rural areas. Ms. Mensah. Thank you, Senator, and for raising a very critical issue of rural health and of primary physicians. What I know is that this is a portfolio that actually has an ability to invest both in the facilities and in the job creating pieces, and I think both are related to rural health. What I look forward to is--continuing to hear these priorities, I am deeply aware of them. I know you cannot have an OB/GYN by telemedicine. I appreciate your lifting this concern and I look forward to working with you on this. Senator Donnelly. A lot of the young potential doctors come from some of these rural communities. They would like to go home if they can, and we have to make sure we have the opportunity for them to do that. That brings me to my next point, which is that for a lot of our rural communities, our young people--and this has happened for a long time--our young people, when they graduate and they go through college and they look, they want to come home, but there is no opportunity for them to come home to, and that goes directly into your title of Rural Development. Ms. Mensah. Yeah. Senator Donnelly. Having the broadband there and having job opportunities there, having the knowledge that if I raise my family here, we will have good health care here. One of my passions is that we want everybody to have the freedom of choice to go wherever they want to go. That is the American dream. But, at the same time, if you want to go home to your rural community, that you have the chance to do that, that there is opportunity there as opposed to saying, well, I went to the city simply because there was nothing I could do back home. Ms. Mensah. Right. Senator Donnelly. I think that is really a cornerstone of your mission, is how do we make it so that our children can go home if they want to, that the choice is not just to go to the city, but to be able to run that business right there or go to a good job right in that community, and I was wondering how you see that as part of your mission. Ms. Mensah. Senator, that was beautifully stated. I share your passion. As a mother of two teenagers, I think every day about the future. Senator Donnelly. Good luck with that, too, by the way. [Laughter.] Ms. Mensah. I appreciate it. I appreciate it. Senator Donnelly. I have been there, done that. [Laughter.] Ms. Mensah. You know, if we cannot get this right, this is what I meant when I spoke passionately about not giving up on rural areas, and I do believe the tools of broadband and the tools of new growth and seeing that there is something new. The bio-economy kinds of investments, to me, are a really new page in Rural Development and that is exciting to be part of. I share the same dream and I look forward to working on these, if confirmed. Senator Donnelly. Well, thank you. We look forward to working with you. Ms. Mensah. Thank you. Chairwoman Stabenow. Great. Thanks very much. Senator Walsh from the great State of Montana. Senator Walsh. Thank you, Madam Chair. Ms. Mensah, congratulations on your nomination and thank you for being here. You know, Montana is one of the most rural States in the country. Just a quarter of our population lives in urban areas and 30 percent live in small cities, along with another 44 percent live in rural areas. Living in a rural area in Montana puts you much further from urban centers than would be the case in States outside of the West. Our large, open spaces are renowned around the world. Big Sky Country is breathtaking. I know we talked and you said you have been to Eastern Montana and Billings, so I know you have some understanding of that. Montana's rural nature is part of our culture and we cherish it and we want to keep it that way, but it also presents unique challenges, including economic development, infrastructure, and transportation. USDA's Rural Development mission area has a variety of tools designed to spur economic development in places like Montana, rural States. I have heard time and time again how well these programs are working. For example, a variety of Rural Development programs have invested in Eastern Montana, where many small towns are booming due to oil exploration in the Bakken field. In 2013, over 1,500 Montana families purchased homes with Rural Development loans. Critical water, sewer, and electric infrastructure projects were funded as well, helping small towns grow and attract new residents. But housing infrastructure is only part of the puzzle. For these small towns to grow, we need to create economic opportunity. We need more jobs on the ground, and the business programs at Rural Development will help fill that need. Just this month, USDA announced a $1.3 million long-term loan along with local funds that will be used to transform a run-down park in my hometown of Butte, Montana, into a neighborhood center. This center will provide important local services, such as job training and housing assistance. Last month, Montana's State Director Tony Preite, announced three new grants under the Rural Business Enterprise Grants program to provide funding for businesses in the Bitterroot Valley. I could list many more instances where Rural Development programs have helped support jobs in Montana, but the point is that these programs are critical to support jobs and economic development in rural areas. Directly related to the state of the economy is the issue of poverty. Over 15 percent of Montanans live in poverty, and that number is even higher for children. We must do more to tackle this issue across the country and I look forward to hearing from you how we can better address poverty in rural areas. I just have a couple of questions I would like to ask. First, you have many years of experience working on both rural issues and poverty at the Ford Foundation and the Aspen Institute. How will that experience translate at the USDA? Ms. Mensah. Thank you, Senator, both for your comments of hope about this division. I think my experience on poverty and on investing speaks to the two issues you raised, that we must have growth to lift all the boats, but even when we get growth, as we have seen in your State, our work is not done. The three tools--the business portfolio, the housing portfolio, and the infrastructure portfolio--to me, these are the key portfolios and key tools of partnership. If confirmed, I very much look forward to continuing this work. Senator Walsh. Okay. Second, I referenced the booming economy in Eastern Montana. While the economic activity is welcome, it also brings a major strain on municipal governments. USDA-RD programs are an opportunity to fill that gap. As Under Secretary, what would be your view of Rural Development's mission and how will you utilize these programs to meet the needs of communities such as those in Eastern Montana? Ms. Mensah. Thank you, Senator. Also, just to--for me, the power of a growing economy is seeing how you keep all things moving, and this portfolio's tools to be able to help areas like yours with critical needs, even in growth, so that it can really have its impact, is a powerful part of this portfolio. I look forward very much to working with you and in your State, if confirmed. Senator Walsh. Okay. One final question. You know, again, rural areas in Montana lag behind in broadband development. USDA already has programs to support broadband. What is your vision for these programs, and will you target them to areas that are truly underserved, such as Reservations in Montana and the Eastern part of the State? Ms. Mensah. Thank you, Senator, and thank you for raising the needs of Native American Reservations, too. We have spoken about how important I view broadband and this new area. I think this is a critical part of jobs, growth, and the future. I look forward to help this mission reach all areas with these services. Senator Walsh. Okay. Thank you. Ms. Mensah. Thank you. Senator Walsh. Thank you, Madam Chair. Chairwoman Stabenow. Thank you very much. Senator Hoeven, great State of North Dakota. Senator Hoeven. Thank you, Madam Chairman and Ranking Member, and thanks for holding this hearing today. Ms. Mensah, I want to start by thanking you for coming by and visiting with me prior to this hearing today. I appreciate it and certainly look forward to working with you. In our State, we have tremendous growth going on right now. I think we are the fastest growing State in the country, and we have a lot of growth in energy, certainly oil and gas in the Western part of the State, renewables, wind, biofuels, that kind of thing in the Central and Eastern part, but then, also, in some of the other areas too, Ag processing and some of the life sciences, technology in the Red River Valley, aerospace. Our challenge is our growth, and one of the biggest challenges that comes with that is housing. We need housing, and we particularly need housing in the energy patch in the West. In the rural areas, that is a huge challenge. I mean, it is a challenge all over the State, and it is a challenge both because of the down payment--young people come and they can make a great wage now. Driving a track, I think they are over $100,000. But, they do not have a down payment to qualify for a loan. Then he other thing is, the housing is so expensive, particularly in the rural areas and the smaller communities. You have got a financial background. Ms. Mensah. Yeah. Senator Hoeven. You have got some great financing programs. Tell me how you are going to come to North Dakota and really help us get these young people into homes. We are building a lot of apartments, but the apartment rent is pretty high, and what we really need is single family homes. How can you help us? Ms. Mensah. Yeah. Thank you, Senator, and thank you for reminding us that even in growth, we have got challenges. Senator Hoeven. Right on. Ms. Mensah. My experience, particularly at Aspen, was working with financial sector leaders--some are in this room right now--to really work on the American challenge of savings. I think that in these years of growth, the key, again, is partnerships with our financial institutions so that people can start to save to be prepared for these down payments, knowing that when they do their part, the other end of the--the other hand is there. This portfolio has a wonderful ability to invest in housing. I am excited about that. I am excited in the single family and multi-family opportunities. If confirmed, I look very much forward to working with you. Senator Hoeven. Would you be willing to come out to North Dakota and help convene lenders, both in terms of trying to find that down stroke help, people find that down stroke, but then also utilizing your loan guarantee programs, which are very good, with our lenders to see if we cannot get more of this housing need met? Ms. Mensah. Senator, if confirmed, I am going to be talking a lot to lenders, and I think they need the USDA to say, we are here to be partners. I very much look forward to working with private sector leaders to identify and champion the causes of rural America. Senator Hoeven. You would be happy to come to our State and work---- Ms. Mensah. I would be very happy to come to your State. Senator Hoeven. Good, because, I think, sometimes sitting down with them and making sure that they can access these programs easily, efficiently, and well makes a big difference in terms of getting them used, and I think your background really lends to that kind of collaborative effort. Ms. Mensah. Thank you. I believe in collaboration. Senator Hoeven. Also, and the infrastructure piece, too. You know, all of the infrastructure needs that go with it, everything, as Senator Walsh said, from fiber and communications working through RUS to all the roads, bridges, schools, everything in that respect, as well. But, again, we are going to need your leadership and this partnering effort. Maybe touch just for a minute on some of the infrastructure programs and your approach there. Ms. Mensah. My--thank you, Senator, and you really raise the thing I am excited about this portfolio, which is the ability to invest both in infrastructure and housing and in the job creating. For me, the infrastructure is such a key component, and I am actually very excited to be part of a portfolio which understands all the needs and has tools, that we do not just have to come with one tool. Thank you for raising that, and if confirmed, I look forward to working on that. Senator Hoeven. You have programs in water, in wastewater, telecommunications, housing, as we have mentioned, all of these, and we are going to give you an opportunity to deploy them. Your commitment to work with us is much appreciated and we look forward to it. Ms. Mensah. I do, too, look forward. Thank you. Senator Hoeven. Thank you. Ms. Mensah. Thank you for your questions and your interest. Chairwoman Stabenow. Well, thank you very much, and I think it is clear that there is both respect and support for your nomination, and we look forward to officially having the opportunity to move your nomination from committee to floor, and, hopefully, move that as quickly as possible. I think it is also clear you should expect to be traveling a lot---- [Laughter.] Chairwoman Stabenow. --airline tickets. We are going to give you a tour of the country, looking at rural communities in all of our States. I agree with Senator Hoeven that nothing takes the place of being there and talking to people and seeing what is happening in the States across the country. We thank you very much. We look forward to working with you. This is a very, very important position, and I think you can tell from the interests of the members today, it impacts every single one of our communities and all of our States. Any additional questions for the record should be submitted to the Committee Clerk two business days from today. That is 5:00 p.m. on Friday, September 12. If there is no further business, the meeting is adjourned. Ms. Mensah. Thank you. [Whereupon, at 10:52 a.m., the committee was adjourned.] ======================================================================= A P P E N D I X SEPTEMBER 10, 2014 ======================================================================= [GRAPHIC] [TIFF OMITTED] T3033.001 [GRAPHIC] [TIFF OMITTED] T3033.002 [GRAPHIC] [TIFF OMITTED] T3033.003 [GRAPHIC] [TIFF OMITTED] T3033.004 [GRAPHIC] [TIFF OMITTED] T3033.005 ======================================================================= DOCUMENTS SUBMITTED FOR THE RECORD SEPTEMBER 10, 2014 ======================================================================= [GRAPHIC] [TIFF OMITTED] ======================================================================= QUESTIONS AND ANSWERS SEPTEMBER 10, 2014 ======================================================================= [GRAPHIC] [TIFF OMITTED]