	Introduction

This report describes and analyzes how U.S. policy towards the multilateral development banks (MDBs) is made and implemented by the executive branch and Congress. Both share the responsibility for U.S. participation in the MDBs, but each branch has primary control over different parts of the decision-making process. On behalf of the President, the Secretary of the Treasury is responsible for negotiating with other countries about MDB policies and prospective funding agreements and for managing the day-to-day conduct of U.S. participation in the banks. Congress, for its part, has the ultimate authority over the level of U.S. financial commitments to the multilateral agencies, the general framework for U.S. policy, and the criteria that govern U.S. participation in these institutions. Since 1999, Congress has required that Treasury, as Chairman of the NAC, annually report to Congress on several topics related to U.S. participation in the international financial institutions, including an assessment of the effectiveness of the major policies and operations of the international financial institutions; the major issues affecting U.S. participation; and progress made and steps taken to achieve U.S. policy goals (including major policy goals embodied in current law). I can only be overruled by the President himself." USAID's impact on U.S. policy is limited, however, and NGOs generally address their concerns directly to the Treasury Department and the MDBs. Other U.S. agencies also play a role in the policy process regarding the MDBs. Congress and the MDBs

Congress has authority to set the terms for U.S. participation at the MDBs—including how U.S. executive directors shall vote on specific types of loans—and to determine whether the United States will participate in and contribute money towards new MDB funding plans and whether it will support amendments to the MDBs' Articles of Agreement or other basic changes in their organization. The Senate Committee on Foreign Relations (SFRC) and House Committee on Financial Services (HFSC) have jurisdiction over MDB authorizing legislation. The House and Senate Appropriations Committees deal with MDB issues primarily through their respective Subcommittees on State, Foreign Operations, and Related Programs. Hearings

The authorization and appropriations committees generally hold hearings on the Administration's funding requests for the MDBs. The information provided by these reports helps Congress exercise oversight over U.S. policy and the MDB program. Through reporting requirements, Congress required the Administration to make information about MDB operations and policies available to the public and to pay attention to particular congressional concerns.
This report analyzes how the United States makes policy towards the multilateral development banks (MDBs) and identifies ways by which Congress can shape U.S. policy and influence the activities of the banks themselves.
The executive branch and Congress share responsibility for U.S. policy towards the MDBs and each has primary control over a different part of the policy process. The Administration is responsible for negotiating with other countries and for managing day-to-day U.S. participation in the MDBs. Congress has ultimate authority over the level of U.S. financial commitments and the criteria that govern U.S. participation in these institutions. Congress has authorized the President to direct U.S. participation in the MDBs, and the President has delegated that authority to the Secretary of the Treasury. Other agencies also have reasons for being concerned about U.S. policy and the MDBs. The Administration created a new process, starting in 2009, to help coordinate interagency views on MDB issues.
Authorizing legislation is managed by the House Financial Services Committee and Senate Foreign Relations Committee. The House and Senate Appropriations Subcommittees on State, Foreign Operations, and Related Programs handle the appropriations. Since 1981, MDB legislation has become law through the regular legislative process only once. Usually it is enacted as a rider to other legislation.
Congress exercises its influence over MDB policy through its control over authorizations and appropriations and through oversight. The authorizing committees have included in MDB authorizing legislation many directives which affect the goal and direction of U.S. policy. Congress has also used its control over the funding process—its "power of the purse"—to set priorities and encourage the Administration and MDBs to consider changes in their policies or procedures. Congress has used hearings and required reports to get information about U.S. policy and the MDBs onto the public record and to draw the Treasury Department's attention to issues of pressing concern. Since the Administration knows it must come to Congress for future authorizations and MDB funding, the views expressed by Congress through hearings have often had an impact on the focus and direction of U.S. policy regarding particular concerns.
For more information the MDBs, see CRS Report R41170, Multilateral Development Banks: Overview and Issues for Congress, by [author name scrubbed] and CRS Report RS20792, Multilateral Development Banks: U.S. Contributions FY2000-FY2015, by [author name scrubbed].