Beatty, García, Norcross, Jayapal, Warren, and 55 Members of Congress Urge Biden Administration to Support Cost-Free Aid for Low- and Middle-Income Countries

Washington, DC — Reps. Joyce Beatty (OH-03), Jesús “Chuy” García (IL-04), Donald Norcross (NJ-01), Pramila Jayapal (WA-07), and Senator Elizabeth Warren (D-MA) led 55 of their colleagues in a letter urging the Biden Administration to support a new issuance of Special Drawing Rights (SDRs) from the International Monetary Fund (IMF).

The IMF estimates 56% of low-income countries are in or at high risk of falling into debt distress. Not only does this precarious situation have profound humanitarian consequences for people around the world, but it also endangers export-related jobs for millions of American workers. SDRs are a powerful and readily available tool to stabilize the economies of debt-burdened countries at zero cost to the U.S. taxpayers.

Numerous countries around the world have also recently called for a new SDR allocation of the same size or greater than in 2021. Recently, the African Union called for such an allocation, as did Colombian President Gustavo Petro in his UN General Assembly speech last month.

Notably, the 2021 issuance did not benefit countries that are subject to financial sanctions or whose governments are not recognized by the IMF. Countries with large amounts of foreign reserves are also ineligible under IMF rules. And according to the IMF’s recent two-year ex-post assessment, the 2021 issuance “continues to benefit the global economy” and did not contribute to global inflation.

A new issuance of SDRs would both protect American jobs and offer a cost-free opportunity for developing countries to shore up their budgets for basic programs, including public health, education, and poverty alleviation.

“I am proud to join so many of my colleagues in calling on the Biden Administration to support a new issuance of International Monetary Fund Special Drawing Rights,” said Rep. Beatty, Ranking Member of the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions. “In the face of multiple global crises, this resource is absolutely vital to promote global economic stability, continued development in low-income countries, and resilient U.S. export markets. It’s also pivotal in saving key manufacturing and union jobs for Americans spanning Central Ohio and across the country.”

“SDRs are a powerful tool to alleviate poverty and help developing countries around the world fund health care, infrastructure, food access, and more. SDRs cost American taxpayers $0 and also boost export-related jobs here at home. A few years ago, the IMF issued hundreds of billions of dollars in SDRs, and this economic aid was a lifeline for developing nations during the pandemic. It is incumbent upon the Biden administration to support a new allocation of SDRs from the IMF as countries around the world continue to face converging crises.” said Rep. García.

“As developing countries around the world continue to feel the combined effects of simultaneous crises, it is powerfully important that the Biden administration support a new allocation of IMF SDRs to provide much-needed relief at no cost to the federal government,”said Sen. Warren.

“Issuing a new round of Special Drawing Rights will stabilize economies around the world and ensure that developing nations can continue to import high-quality American-made products and goods. America powers the global economy, and the new SDRs will support American jobs and small businesses,” said Rep. Norcross, Co-Chair of the Congressional Labor Caucus.

“In 2021, the Biden Administration made a momentous decision to support hundreds of billions of dollars in financial support to developing countries through the IMF—all at no cost to U.S. taxpayers. This was a critical lifeline to hundreds of lower-income countries weathering the devastating impacts of the pandemic,” said Rep. Jayapal, Chair of the Congressional Progressive Caucus. “With disturbing evidence that the developing world continues to face strong economic headwinds, including persistent poverty and hunger, I am proud to join other Congressional progressives in urging the Administration to follow up on its important initiative with a new unilateral allocation of Special Drawing Rights at the IMF, which will boost U.S. export jobs and help ensure a strong global economic recovery going into 2024.”

“The labor movement strongly supports the call for a new allocation of SDRs which represent a transformative measure needed to avoid future shocks and job loss related to climate; health; debt; and digitalization; among other challenges,” said Catherine Feingold, AFL-CIO International Director.

“A new SDR issuance is a critical measure to provide rapid relief to countries hit by the global debt crisis, alongside intersecting social and economic crises, which severely reduce spending for health and social services,” said Cate Oswald, Principal Chief Program Officer at Partners In Health.“In health centers and hospitals around the world, healthcare workers — including Partners In Health staff — bear witness to the tragic embodiment of these crises: ill health, unnecessary suffering, and preventable deaths. That’s why we call on President Biden to support a new issuance of SDRs.”

“The US economy lost about 2 million export-related jobs in 2020 due to the loss of demand from the rest of the world, during the world recession. So this new issuance, like the last one, could save many US jobs going forward, at the same time that it saves lives throughout the world,” said Mark Weisbrot, Research Co-Director, Center for Economic and Policy Research.

“Foreign Policy for America is proud to join with congressional leaders and this extraordinary coalition in calling on the Administration to support a new allocation of Special Drawing Rights at the IMF,”said Andrew Albertson, Executive Director, Foreign Policy for America. “Supporting this allocation is both the right thing to do and the smart thing to do. At no cost to American taxpayers, it will strengthen the resilience of debt-burdened, climate vulnerable developing countries confronting multiple global crises; expand trade and investment opportunities for American businesses; and fortify our partnerships around the world by demonstrating US responsiveness to developing countries' needs at a time of growing global competition.

“As a Catholic Christian, I hear the call of faith to put persons first who are the poorest among us. A broad range of Catholic organizations and others have called for a new release of Special Drawing Rights. The 2021 release of Special Drawing Rights likely saved hundreds of thousands of lives. Let’s do it again! President Biden can act and ensure that these funds are unlocked,”said Sister Diane Koorie, Sisters of Mercy of the Americas.

“In this letter a record number of members of Congress are calling for the release of Special Drawing Rights for global crisis relief, recognizing that our prosperity in the U.S. is linked to the well-being of people around the world. Organizations representing tens of millions of Americans support this letter,” said Isaac Evans-Frantz, Action Corps Executive Director.

Along with Reps. Beatty, García, Jayapal, Norcross, and Senator Warren, the letter was also signed by 49 Members of Congress and five U.S. Senators.

This letter was also endorsed by:AFL-CIO, Action Corps, ActionAid USA, Advocacy Network for Africa, Africa Faith and Justice Network, American Friends Service Committee, Association of Concerned Africa Scholars (USA), Center for American Progress, Center for Economic and Policy Research (CEPR), Demand Progress, Friends of the Earth US, Justice Is Global, National Advocacy Center of the Sisters of the Good Shepherd, NETWORK Lobby for Catholic Social Justice, Oxfam America, Partners in Health (PIH), Peace Action New York State, Public Citizen, Sisters of Mercy – Justice Team, and United Church of Christ, Justice and Local Church Ministries (UCC).

To see the full letter, click HERE. 

 For inquiries, please contact Todd Valentine at Todd.Valentine@mail.house.gov 

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