119-hr5299

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5299 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 5299

To modify and reauthorize the Better Utilization of Investments Leading 
 to Development Act of 2018, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 September 11, 2025

 Mr. Mast introduced the following bill; which was referred to the 
 Committee on Foreign Affairs

_______________________________________________________________________

 A BILL

To modify and reauthorize the Better Utilization of Investments Leading 
 to Development Act of 2018, and for other purposes.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``DFC Modernization Act of 2025''.

SEC. 2. SENSE OF CONGRESS; STATEMENT OF POLICY.

    (a) In General.--It is the sense of Congress that the United States 
International Development Finance Corporation should seek to 
responsibly increase its risk tolerance in investments to ensure that 
the Corporation is maximizing the mobilization of private capital and 
properly pursuing its statutory objectives of advancing United States 
foreign policy, economic development, and national security goals to 
make America safer, stronger, and more prosperous, including--

    (1) by more frequent use of one or more of a variety of 
 tools to mitigate risk to the private sector, including the use 
 of equity, hybrid securities, mezzanine debt, accepting 
 creditor status that is subordinate to that of other creditors, 
 using partial guarantees, employing first loss coverage, 
 insurance, and using blended finance;

    (2) by lending, investing, or offering insurance in high-
 risk countries, regions, or sectors as a means to achieve its 
 mission as a United States foreign policy and development 
 agency of economic statecraft to mobilize capital, secure 
 strategic needs, and build private markets;

    (3) by preventing strategic competitor inroads and 
 dominance of key sectors such as infrastructure, critical and 
 rare earth minerals, and critical supply chains and industries, 
 which is in the economic and national security interests of the 
 United States; and

    (4) by assisting allied and partner countries in achieving 
 energy security through diversification of their energy sources 
 and supply routes which is in the economic and national 
 security interests of the United States.

    (b) Statement of 

=== Policy ===
-It is the policy of the United States--

    (1) to advance United States foreign policy, national 
 security, and economic development goals by facilitating 
 market-based private sector development in countries to make 
 America safer, stronger, and more prosperous;

    (2) to counter or limit strategic competitor inroads and 
 dominance of key sectors such as infrastructure, critical and 
 rare earth minerals, and critical supply chains and industries 
 through support of diversified private sector options and by 
 providing a robust alternative to and reducing reliance on 
 state-directed, unsustainable financing by strategic 
 competitors of the United States;

    (3) to advance United States foreign policy, national 
 security, and economic development goals by assisting countries 
 to reduce their dependence on resources from countries that use 
 dependence for undue malign influence and that have used 
 natural gas, nuclear energy, oil, rare earths, critical and 
 strategic materials, and other resources to coerce, intimidate, 
 and influence other countries;

    (4) to promote the energy security of allied and partner 
 countries by encouraging the development of accessible, 
 transparent, and competitive energy markets that provide 
 diversified sources, energy types, and diversified energy 
 transport and distribution methods and routes, which are in the 
 economic and national security interests of the United States;

    (5) to encourage United States public and private sector 
 investment in energy, telecommunications, and other 
 infrastructure projects in allied and partner countries to 
 bridge the gap between security requirements and commercial 
 demand consistent with the country's absorptive capacity;

    (6) to facilitate the export of United States energy, 
 telecommunications, technology, expertise, and other resources 
 to global markets in a way that benefits the economic and 
 national security interests of the United States;

    (7) to support private sector development in countries that 
 promote economic prosperity in a manner that can help to curb 
 illegal migration and secure the borders of the United States;

    (8) to facilitate procurement of necessary resources and 
 supply chains for the benefit of the United States and its 
 citizens; and

    (9) to facilitate market-based private sector development 
 and economic growth through the provision of credit, capital, 
 and other financial support by taking on substantial financial 
 risk, and when necessary financial losses, to unlock new, 
 significant private capital investments or achieve or advance 
 major United States foreign policy objectives. Losses may be 
 expected, in certain instances, at the individual investment 
 level and financial performance may be measured at the overall 
 portfolio level.

 TITLE I--DEFINITIONS AND LESS DEVELOPED COUNTRY FOCUS

SEC. 101. DEFINITIONS.

 

Section 1402 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9601) is amended--

    (1) by redesignating paragraphs

    (2) ,

    (3) , and

    (4) as 
 paragraphs

    (3) ,

    (4) , and

    (5) , respectively;

    (2) by inserting after paragraph

    (1) the following:
 ``

    (2) High-income country.--The term `high-income country' 
 means a country with a high-income economy, as defined by 
 International Bank for Reconstruction and Development and the 
 International Development Association (collectively referred to 
 as the `World Bank').'';

    (3) in paragraph

    (5) , as so redesignated--
        (A) in subparagraph
        (A) , by striking ``or'' at the 
 end;
        (B) in subparagraph
        (B) , by striking the period at 
 the end and inserting ``; or''; and
            (C) by adding at the end, the following:
 ``
            (C) any other similar institution that has a 
 purpose that is similar to the purposes of the 
 Corporation as described in 

section 1412

    (b) of this 
 title.''; and

    (4) by adding at the end the following:
 ``

    (6) Country of concern.--The term `country of concern' 
 means any of the following countries:
 ``
        (A) The Bolivarian Republic of Venezuela.
 ``
        (B) The Republic of Cuba.
 ``
            (C) The Democratic People's Republican of Korea.
 ``
            (D) The Islamic Republic of Iran.
 ``
        (E) The People's Republic of China.
 ``
        (F) The Russian Federation.
 ``
        (G) Belarus.''.

SEC. 102. LESS DEVELOPED COUNTRY FOCUS.

 

Section 1412 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9612) is amended--

    (1) by inserting ``and high income countries and areas, as 
 appropriate,'' after ``less developed countries''; and

    (2) by adding at the end the following:
 ``

    (3) Support in high-income countries and areas.--The 
 Corporation shall restrict the provision of support under title 
 II in high-income countries and areas unless the President 
 certifies to the appropriate congressional committees that such 
 support furthers the national economic or foreign policy 
 interests of the United States.''.

 TITLE II--MANAGEMENT OF CORPORATION

SEC. 201. BOARD OF DIRECTORS.

 

Section 1413

    (b) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9613

    (b) ) is amended--

    (1) in subparagraph

    (2)
        (A)
            (iii) , by striking ``5 
 individuals'' each place it appears and inserting ``3 
 individuals'';

    (2) in subparagraph

    (2)
        (B)
            (i) , by striking subclause III 
 and inserting the following:
 ``
            (III) One other principal officer 
 from an executive Department designated 
 by the President.''; and

    (3) by striking subparagraph

    (4) and inserting the 
 following:
 ``

    (4) Vice chairperson.--The President shall appoint a 
 member of the Board to serve as the Vice Chairperson of the 
 Board.''.

SEC. 202. CHIEF RISK OFFICER.

 

Section 1413

    (f) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9613

    (f) ) is amended--

    (1) in the matter preceding subparagraph
        (A) , by striking 
 ``, who--'' and inserting a period;

    (2) in paragraph

    (1) , by striking subparagraphs
        (A) and
        (B) ; and

    (3) in paragraph

    (2) , by striking ``audit'' and inserting 
 ``risk''.

SEC. 203. CHIEF DEVELOPMENT OFFICER.

    (a) In General.--

Section 1413 of the Better Utilization of 
Investments Leading to Development Act of 2018 (22 U.S.C. 9613) is 
amended--

    (1) in subsection

    (a) , by striking ``a Chief Development 
 Officer,'';

    (2) by striking subsection

    (g) and redesignating 
 subsections

    (h) and
            (i) as subsections

    (g) and

    (h) , 
 respectively;

    (3) in subsection

    (g) as so redesignated, by striking 
 paragraph

    (1) and inserting the following:
 ``

    (1) In general.--Except as otherwise provided in this 
 section, officers, employees, and agents shall be selected and 
 appointed by or under the authority of the Chief Executive 
 Officer, and shall be vested with such powers and duties as the 
 Chief Executive Officer or the designee of the Chief Executive 
 Officer may determine.''; and

    (4) in subsection

    (h) , as so redesignated, by striking 
 ``and the Chief Development Officer,''.

    (b) Chief Executive Officer.--

Section 1445 of the Better 
Utilization of Investments Leading to Development Act of 2018 (22 
U.S.C. 9655) is amended--

    (1) by striking subsection

    (a) and inserting the following:
 ``

    (a) In General.--The Chief Executive Officer shall--
 ``

    (1) develop a strategic relationship with private sector 
 entities focused at the nexus of business opportunities and 
 development priorities;
 ``

    (2) engage such entities and reduce business risks 
 primarily through direct transaction support and facilitating 
 investment partnerships;
 ``

    (3) develop and support tools, approaches, and 
 intermediaries that can mobilize private finance at scale in 
 the developing world; and
 ``

    (4) pursue highly developmental projects of all sizes, 
 especially those that are small but designed for work in the 
 most underdeveloped areas, including countries with chronic 
 suffering as a result of extreme poverty, fragile institutions, 
 or a history of violence.''; and

    (2) in subsection
            (c) , by striking ``the United States 
 Agency for International Development and''.

SEC. 204. ADMINISTRATIVELY DETERMINED POSITIONS.

 

Section 1413

    (g)

    (2) of the Better Utilization of Investments Leading 
to Development Act of 2018 (22 U.S.C. 9613

    (g)

    (2) ), as so redesignated, 
is amended in subparagraph
        (A) by striking ``50'' and inserting 
``100''.

 TITLE III--AUTHORITIES RELATING TO PROVISION OF SUPPORT

SEC. 301. EQUITY LIMITATION.

 

Section 1421
            (c) (4)
        (A) of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9621
            (c) (4)
        (A) ) is amended 
by striking ``30'' and inserting ``49''.

SEC. 302. REVOLVING EQUITY INVESTMENT ACCOUNT.

    (a) Equity Investments Account.--

Section 1421
            (c) of the Better 
Utilization of Investments Leading to Development Act of 2018 (22 
U.S.C. 9621
            (c) ) is amended by adding at the end the following:
 ``

    (7) Equity investments account.--
 ``
        (A) Establishment.--There is established in the 
 Treasury of the United States an Equity Investments 
 Account of the United States International Development 
 Finance Corporation (referred to in this subsection as 
 the `Equity Investments Account').
 ``
        (B) Retention of collections.--Collections 
 derived from the earnings, fees, credits, and other 
 collections from the equity investments made using 
 amounts in the Equity Investments Account shall be 
 deposited into the Equity Investments Account, and 
 shall be available to the Corporation without further 
 appropriation or fiscal year limitation for carrying 
 out the purposes of this section.''.

    (b) Collections.--

Section 1434

    (h) of the Better Utilization of 
Investments Leading to Development Act of 2018 (22 U.S.C. 9634

    (h) ) is 
amended by adding ``except earnings, fees, credits, and other 
collections related to equity investments from the Equity Investments 
Account,'' after ``earnings collected related to equity investments,''.

SEC. 303. ENTERPRISE FUNDS.

 

Section 1421

    (g) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9621

    (g) ) is amended--

    (1) in paragraph

    (1) , by striking ``the Administrator of 
 the United States Agency for International Development,''; and

    (2) in paragraph

    (3)
        (E) , by striking ``Agency for 
 International Development''.

SEC. 304. TERMINATION.

 

Section 1424

    (a) of the Better Utilization of investments Leading to 
Development Act of 2018 (22 U.S.C. 9624

    (a) ) is amended by striking 
``the date that is 7 years after the date of the enactment of this 
Act'' and inserting ``December 31, 2031''.

 TITLE IV--OTHER MATTERS

SEC. 401. CORPORATE POWERS.

 

Section 1432

    (a) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9632

    (a) ) is amended--

    (1) in paragraph

    (2) , by striking ``division C of subtitle 
 I of''; and

    (2) in paragraph

    (10) , by striking ``until the expiration 
 of the current lease under predecessor authority, as of the day 
 before the date of the enactment of this Act''.

SEC. 402. MAXIMUM CONTINGENT LIABILITY.

 

Section 1433 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9633) is amended by striking 
``$60,000,000,000'' and inserting ``$250,000,000,000''.

SEC. 403. AUTHORITY TO USE PORTION OF CORPORATION FEES TO UPDATE 
 INFORMATION TECHNOLOGY SYSTEMS; TRANSFER OF FUNDS.

 

Section 1434 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9634) is amended--

    (1) in subsection
            (d) --
        (A) in paragraph

    (1) --
            (i) in subparagraph
        (B) , by adding ``and'' 
 at the end;
            (ii) in subparagraph
            (C) , by striking the 
 semicolon at the end and inserting a period; 
 and
            (iii) by striking subparagraph
            (D) ; and
        (B) in paragraph

    (2) --
            (i) in subparagraph
        (B) , by striking 
 ``and'' at the end;
            (ii) in subparagraph
            (C) , by striking the 
 period at the end and inserting a semicolon; 
 and
            (iii) by adding at the end the following:
 ``
            (D) project-specific transaction costs; and
 ``
        (E) transfers and additions to such other 
 accounts, funds, or reserves as the Corporation may 
 establish, at such time and in such amounts as the 
 Board may determine.'';

    (2) in subsection

    (j) , by inserting ``
            (i) title 10, United 
 States Code,
            (ii) the Strategic and Critical Materials Stock 
 Piling Act (50 U.S.C. 98 et seq.), or
            (iii) '' after ``funds 
 authorized to be appropriated to carry out''; and

    (3) in subsection

    (k) --
        (A) in paragraph

    (1) , by inserting ``other direct 
 costs associated with origination or monitoring 
 services, including seminars, conferences, and other 
 pre-investment services,'' after ``legal expenses,''; 
 and
        (B) in paragraph

    (2) , by striking ``does not 
 include'' and inserting ``includes''.

SEC. 404. NOTIFICATIONS TO BE PROVIDED BY THE CORPORATION.

 

Section 1446

    (a) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9656

    (a) ) is amended by striking 
``$10,000,000'' and inserting ``$100,000,000''.

SEC. 405. MILLENNIUM CHALLENGE CORPORATION.

    (a) Coordination With Other Development Agencies.--

Section 1435 of 
the Better Utilization of Investments Leading to Development Act of 
2018 (22 U.S.C. 9635) is amended by striking ``the United States Agency 
for International Development''.

    (b) Sources of Information.--

Section 1451

    (g)

    (2) of the Better 
Utilization of Investments Leading to Development Act of 2018 (22 
U.S.C. 9671

    (g)

    (2) ) is amended by striking ``the Department of 
Commerce's Country Commercial Guides, or the Millennium Challenge 
Corporation's Constraints Analysis,'' and inserting ``or the Department 
of Commerce's Country Commercial Guides,''.

SEC. 406. STATE-OWNED ENTERPRISES.

 

Section 1451 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9671) is amended by adding at the 
end the following:
 ``

    (j) Policies With Respect to State-Owned Enterprises, 
Anticompetitive Practices, and Countries of Concern.--
 ``

    (1) === Policy ===
-The Corporation shall develop appropriate 
 policies and guidelines for support provided under title II for 
 a project involving a state-owned enterprise, sovereign wealth 
 fund, or a parastatal entity to ensure such support is provided 
 consistent with appropriate principles and practices of 
 competitive neutrality.
 ``

    (2) Prohibitions.--
 ``
        (A) Anticompetitive practices.--The Corporation 
 may not provide support under title II for a project 
 that involves a private sector entity engaged in 
 anticompetitive practices.
 ``
        (B) Countries of concern.--The Corporation may 
 not provide support under title II for projects--
 ``
            (i) that involve partnerships with the 
 government of a country of concern or a state-
 owned enterprise that belongs to or is under 
 the control of a foreign country of concern; or
 ``
            (ii) that would be operated, managed, or 
 controlled by the government of a country of 
 concern or a state-owned enterprise that 
 belongs to or is under the control of a foreign 
 country of concern.
 ``

    (3) === Definitions. ===
-In this subsection:
 ``
        (A) State-owned enterprise.--The term `state-
 owned enterprise' means any enterprise established for 
 a commercial or business purpose that is directly owned 
 or controlled by one or more governments, including any 
 agency, instrumentality, subdivision, or other unit of 
 government at any level of jurisdiction.
 ``
        (B) Control.--The term `control', with respect to 
 an enterprise, means the power by any means to control 
 the enterprise regardless of--
 ``
            (i) the level of ownership; and
 ``
            (ii) whether or not the power is 
 exercised.
 ``
            (C) Owned.--The term `owned', with respect to an 
 enterprise, means a majority or controlling interest, 
 whether by value or voting interest, of the shares of 
 that enterprise, including through fiduciaries, agents, 
 or other means.
 ``

    (4) Qualifying sovereign entity.--State-owned 
 enterprises, sovereign wealth funds, or parastatal entities 
 that the Corporation supports, pursuant to the policy and 
 prohibitions in 

section 407

    (1) and

    (2) , shall be considered as 
 a `qualifying sovereign entity' as defined in 

section 1402.''.

SEC. 407. REPEAL OF REDUNDANT PROVISIONS OF THE EUROPEAN ENERGY 
 SECURITY AND DIVERSIFICATION ACT OF 2019.

 The European Energy Security and Diversification Act of 2019 (title 
XX of division P of Public Law 116-94; 22 U.S.C. 9501 note) is hereby 
repealed.
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