NOMINATION OF THE HONORABLE MICK MULVANEY, OF SOUTH CARO- LINA, TO BE DIRECTOR OF THE OF- FICE OF MANAGEMENT AND BUDGET HEARING & EXECUTIVE BUSINESS MEETING BEFORE THE COMMITTEE ON THE BUDGET UNITED STATES SENATE ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION January 24, 2017—HEARING ON THE NOMINATION OF THE HONOR- ABLE MICK MULVANEY, OF SOUTH CAROLINA, TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET February 2, 2017—EXECUTIVE BUSINESS MEETING ON THE NOMINA- TION OF THE HONORABLE MICK MULVANEY, OF SOUTH CARO- LINA, TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ( Printed for use of the Senate Budget Committee VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING NOMINATION OF THE HONORABLE MICK MULVANEY, OF SOUTH CAROLINA, TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING with DSK3GLQ082PROD on dlhill NOMINATION OF THE HONORABLE MICK MULVANEY, OF SOUTH CARO- LINA, TO BE DIRECTOR OF THE OF- FICE OF MANAGEMENT AND BUDGET HEARING & EXECUTIVE BUSINESS MEETING BEFORE THE COMMITTEE ON THE BUDGET UNITED STATES SENATE ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION January 24, 2017—HEARING ON THE NOMINATION OF THE HONOR- ABLE MICK MULVANEY, OF SOUTH CAROLINA, TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET February 2, 2017—EXECUTIVE BUSINESS MEETING ON THE NOMINA- TION OF THE HONORABLE MICK MULVANEY, OF SOUTH CARO- LINA, TO BE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET ( Printed for use of the Senate Budget Committee U.S. GOVERNMENT PUBLISHING OFFICE 26–024 WASHINGTON : 2017 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 VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING COMMITTEE ON THE BUDGET MICHAEL B. ENZI, Wyoming, Chairman CHARLES E. GRASSLEY, Iowa BERNARD SANDERS, Vermont JEFF SESSIONS, Alabama PATTY MURRAY, Washington MIKE CRAPO, Idaho RON WYDEN, Oregon LINDSEY O. GRAHAM, South Carolina DEBBIE STABENOW, Michigan PATRICK TOOMEY, Pennsylvania SHELDON WHITEHOUSE, Rhode Island RON JOHNSON, Wisconsin MARK R. WARNER, Virginia BOB CORKER, Tennessee JEFF MERKLEY, Oregon DAVID A. PERDUE, Georgia TIM KAINE, Virginia CORY GARDNER, Colorado ANGUS S. KING, JR., Maine JOHN KENNEDY, Louisiana CHRIS VAN HOLLEN, Maryland JOHN BOOZMAN, Arkansas KAMALA HARRIS, California ERIC UELAND, Republican Staff Director WARREN GUNNELS, Minority Staff Director (II) VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING C O N T E N T S HEARING Page January 24, 2017—Hearing on the Nomination of The Honorable Mick Mulvaney, of South Carolina, to be Director of the Office of Management and Budget ........................................................................................................... 1 OPENING STATEMENTS BY COMMITTEE MEMBERS Chairman Enzi ......................................................................................................... 1 Ranking Member Sanders ....................................................................................... 2 WITNESSES Honorable Tom Cotton, A United States Senator from the State of Arkansas .. 6 Honorable Lindsey Graham, A United States Senator from the State of South Carolina ................................................................................................................ 5 Honorable Mick Mulvaney, of South Carolina, Nominee to be Director of the Office of Management and Budget ................................................................. 7, 10 MATERIALS SUBMITTED FOR THE RECORD Statement of Biographical and Financial Information Requested of Presi- dential Nominee Mick Mulvaney to be Director of the Office of Management and Budget ........................................................................................................... 104 Pre-hearing questions from Chairman Enzi with answers by Mick Mulvaney .. 133 Pre-hearing questions from Ranking Member Sanders with answers by Mick Mulvaney .............................................................................................................. 137 Pre-hearing questions from Senator Merkley with answers by Mick Mulvaney .............................................................................................................. 142 Post-hearing questions from Ranking Member Sanders with answers by Mick Mulvaney .............................................................................................................. 160 Post-hearing questions from Budget Committee members with answers by Mick Mulvaney ..................................................................................................... 145 Senator Corker .................................................................................................. 146 Senator Grassley .............................................................................................. 147 Senator Merkley ............................................................................................... 148 Senator Murray ................................................................................................ 154 Senator Stabenow ............................................................................................. 175 Senator Warner ................................................................................................ 180 Senator Whitehouse ......................................................................................... 192 Senator Wyden .................................................................................................. 208 EXECUTIVE BUSINESS MEETING February 2, 2017—Executive Business Meeting on the Nomination of The Honorable Mick Mulvaney, of South Carolina, to be Director of the Office of Management and Budget ................................................................................ 239 Committee Votes ...................................................................................................... 242 OPENING STATEMENTS BY COMMITTEE MEMBERS Chairman Enzi ......................................................................................................... 239 Ranking Member Sanders ....................................................................................... 240 (III) VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING IV Page STATEMENTS SUBMITTED FOR THE RECORD Senator Merkley ...................................................................................................... 244 Senator Murray ........................................................................................................ 245 Senator Whitehouse ................................................................................................. 249 VerDate Sep 11 2014 01:21 Aug 11, 2017 Jkt 026024 PO 00000 Frm 00006 Fmt 5904 Sfmt 5904 E:\HR\OC\A024.XXX A024 dlhill on DSK3GLQ082PROD with HEARING THE NOMINATION OF THE HONORABLE MICK MULVANEY, OF SOUTH CAROLINA, TO BE DIRECTOR OF THE OFFICE OF MANAGE- MENT AND BUDGET TUESDAY, JANUARY 24, 2017 UNITED STATES SENATE, COMMITTEE ON THE BUDGET, Washington, DC. The Committee met, pursuant to notice, at 10:31 a.m., in Room SD–608, Dirksen Senate Office Building, Hon. Michael B. Enzi, Chairman of the Committee, presiding. Present: Senators Enzi, Grassley, Crapo, Graham, Toomey, John- son, Corker, Perdue, Gardner, Kennedy, Boozman, Sanders, Mur- ray, Stabenow, Whitehouse, Warner, Merkley, Kaine, King, Van Hollen, and Harris. Staff Present: Dan Kowalski, Republican Deputy Staff Director; George Everly, Chief Counsel; for the Minority: Warren Gunnels, Minority Staff Director; Robert Etter, Minority Chief Counsel; and Joshua Smith, Budget Policy Director OPENING STATEMENT OF CHAIRMAN ENZI Chairman ENZI. Good morning, and welcome to everyone here. I will call this hearing to order. We are here today to consider the nomination of Representative Mick Mulvaney of South Carolina to be the next Director of the Of- fice of Management and Budget. I am going to try to keep my open- ing remarks brief since we have a pair of Senators before us who are going to give some introductory remarks of their own con- cerning the nominee. President Trump indicated his intent to nominate Representative Mulvaney for this position a little over a month ago. I think all the members of this Committee can agree that we would like to see a confirmed OMB Director in place as soon as possible, so I am happy to note that the other committee of jurisdiction over OMB, the Homeland Security and Governmental Affairs Committee, will be convening this afternoon to hold their own hearing with Rep- resentative Mulvaney. We need an OMB Director in place with so many pressing budg- etary issues requiring the attention of the new administration. Foremost among these is the staggering $20 trillion debt burden America now shoulders. Congress needs an OMB Director who we can work with to put our Nation on a responsible fiscal path. That is why I am pleased that President Trump nominated a fiscal