[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8926 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8926
To modify and reauthorize the Better Utilization of Investments Leading
to Development Act of 2018.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 2, 2024
Mr. McCaul (for himself and Mr. Meeks) 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``DFC Modernization
and Reauthorization Act of 2024''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
TITLE I--DEFINITIONS AND LESS DEVELOPED COUNTRY FOCUS
Sec. 101. Definitions.
Sec. 102. Less developed country focus.
TITLE II--MANAGEMENT OF CORPORATION
Sec. 201. Board of Directors.
Sec. 202. Chief Risk Officer.
Sec. 203. Chief Development Officer.
Sec. 204. Pay comparability.
Sec. 205. Office of Foreign Policy.
TITLE III--AUTHORITIES RELATING TO PROVISION OF SUPPORT
Sec. 301. Applicability of Federal Credit Reform Act of 1990.
Sec. 302. Termination.
TITLE IV--OTHER MATTERS
Sec. 401. Corporate powers.
Sec. 402. Maximum contingent liability.
Sec. 403. Authorit To use portion of Corporation fees To update
information technology systems.
Sec. 404. Repeal of European Energy Security and Diversification Act of
2019.
SEC. 2. SENSE OF CONGRESS.
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
properly pursuing its statutory objectives of advancing developmental
and national security goals, including--
(1) by accepting a creditor status that is subordinate to
that of other creditors;
(2) by guaranteeing loans up to 100 percent of principal as
part of projects structured in compliance with the Better
Utilization of Investments Leading to Development Act of 2018;
and
(3) lending, investing, or offering insurance in high-risk
countries, regions, or sectors as a means to achieve its
mission to mobilize capital in underserved markets or segments.
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'--
``(A) 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'; but
``(B) does not include a wealthy country.'';
(3) in paragraph (3) (as so redesignated) to read as
follows:
``(3) Less developed country.--The term less developed
country means, with respect to a fiscal year for the
Corporation, a country the per capita income of which at the
start of such fiscal year is equal to or less than the then-
current World Bank threshold for initiating the International
Bank for Reconstruction and Development graduation process.'';
and
(4) 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 purpose of the
Corporation as described in section 1412(b).''; and
(5) by adding at the end the following:
``(6) Upper-middle-income country.--The term ``upper-
middle-income country'' means, with respect to a fiscal year
for the Corporation, a country the per capita income of which
at the start of such fiscal year is greater than the then-
current World Bank threshold for initiating the International
Bank for Reconstruction and Development graduation process, and
is equal to or less than the per capita income threshold
defined as a high-income economy by the World Bank.
``(7) Wealthy country.--The term `wealthy country' means a
country that is among the 40 countries with the highest gross
domestic product per capita at purchasing power parity as
calculated by the World Bank.''.
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 by striking
subsection (c) and inserting the following:
``(c) Less Developed Country Focus.--
``(1) In general.--The Corporation shall prioritize the
provision of support under title II in less developed
countries.
``(2) Upper-middle-income and high-income countries.--
``(A) Upper-middle-income countries.--The
Corporation may provide support under title II in an
upper-middle-income country if, prior to providing the
support, the Chief Executive Officer certifies in
writing to the appropriate congressional committees
that such support--
``(i) is designed to produce significant
developmental outcomes or provide developmental
benefits to the poorest population of such
country; and
``(ii) furthers the national economic or
foreign policy interests of the United States.
``(B) High-income countries.--The Corporation may
provide support under title II in a high-income
country, subject to following conditions:
``(i) With respect to support for all
projects in such countries, the aggregate
amount of such support may not exceed 10
percent of the maximum contingent liability of
the Corporation authorized to be outstanding
pursuant to section 1433.
``(ii) With respect to support for any
single project in such a country--
``(I) the Corporation shall seek to
minimize its support to a level
necessary to achieve the development
and foreign policy goals of the United
States;
``(II) the Chief Executive Officer
shall certify to the appropriate
congressional committees that the
Corporation has made all reasonable
efforts to ensure that--
``(aa) the support is a
preferred alternative to state-
directed investments by foreign
countries of concern or
otherwise furthers the
strategic interest of the
United States to counter or
limit the influence of foreign
countries of concern;
``(bb) private sector
entities have been afforded an
opportunity to support the
project on viable terms in lieu
of support by the Corporation;
and
``(cc) the support is
designed to produce significant
developmental outcomes or
provide developmental benefits
to the poorest population of
such country.
``(C) Report.--Not later than 120 days after the
date of the enactment of this subsection, and annually
thereafter, the Corporation shall submit to the
appropriate congressional committees a list of all
high-income countries in which the Corporation
anticipates providing support in the subsequent fiscal
year, and, to the extent practicable, a description of
the type of projects anticipated.
``(D) Definition.--In this subsection, the term
`foreign country of concern' has the meaning given that
term in section 231.102 of title 15, Code of Federal
Regulations.''.
TITLE II--MANAGEMENT OF CORPORATION
SEC. 201. BOARD OF DIRECTORS.
Section 1413(b)(2)(A)(iii) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(b)(2)(A)(iii)) is
amended by striking ``5 individuals'' each place it appears and
inserting ``3 individuals''.
SEC. 202. CHIEF RISK OFFICER.
Section 1413(f)(1) of the Better Utilization of Investments Leading
to Development Act of 2018 (22 U.S.C. 9613(f)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``who--'' and inserting ``who shall be removable only by a
majority vote of the Board.''; and
(2) by striking subparagraphs (A) and (B).
SEC. 203. CHIEF DEVELOPMENT OFFICER.
Section 1413(g) of the Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9613(g)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``who--'' and inserting ``who shall be
removable only by a majority vote of the Board.''; and
(B) by striking subparagraphs (A) and (B); and
(2) in paragraph (2)(B), by striking ``under the guidance
of the Chief Executive Officer,''.
SEC. 204. PAY COMPARABILITY.
Section 1413(h)(2) of the Better Utilization of Investments Leading
to Development Act of 2018 (22 U.S.C. 9613(h)(2)) is amended--
(1) in subparagraph (A), by striking ``50'' and inserting
``100''; and
(2) in subparagraph (D)--
(A) by inserting ``not to exceed 20 percent of
its'' before ``officers and employees''; and
(B) by striking ``appointed under subparagraph
(A)''.
SEC. 205. VICE PRESIDENT FOR FOREIGN POLICY AND NATIONAL SECURITY.
Section 1413 of the Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9613) is amended by adding at the
end the following:
``(j) Vice President for Foreign Policy and National Security.--
``(1) Appointment.--The Chief Executive Officer shall
appoint a Vice President for Foreign Policy and National
Security, from among individuals with experience in foreign
policy or national security matters.
``(2) Duties.--The Vice President shall--
``(A) advise the Chief Executive Officer and Deputy
Chief Executive Officer on foreign policy matters;
``(B) in addition to the Chief Executive Officer
and the Deputy Chief Executive Officer, represent the
Corporation in the interagency national security and
foreign planning process;
``(C) work with other relevant Federal agencies to
identify projects that advance United States foreign
policy interests;
``(D) manage employees that are dedicated to
ensuring that the Corporation's activities advance
United States foreign policy and national security
interests and diplomatic strategy, including through--
``(i) long-term strategic planning;
``(ii) issue and crisis management; and
``(iii) the advancement of foreign policy
initiatives;
``(E) foster and maintain relationships within the
Corporation and external to the Corporation that
increase the capacity of the Corporation to achieve its
mission to advance United States foreign policy and
national security interests; and
``(F) coordinate within the Corporation to ensure
United States foreign policy and national security
interests are considered together with the
Corporation's development goals.''.
TITLE III--AUTHORITIES RELATING TO PROVISION OF SUPPORT
SEC. 301. APPLICABILITY OF FEDERAL CREDIT REFORM ACT OF 1990.
Section 1421(c) of the Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9621(c)), as amended by this title,
is further amended by adding at the end the following:
``(8) Applicability of federal credit reform act of 1990.--
``(A) In general.--Subject to subparagraphs (B) and
(C), support provided under paragraph (1) with respect
to a project shall be subject to the Federal Credit
Reform Act of 1990 (2 U.S.C. 661 et seq.) for purposes
of applying the requirements of such Act to such
support.
``(B) Determination of cost.--
``(i) In general.--For purposes of section
502(5) of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a(5)) the cost of support provided
under paragraph (1) with respect to a project
shall be the net present value, at the time
when funds are disbursed to provide the
support, of the following estimated cash flows:
``(I) The purchase price of the
support.
``(II) Dividends, redemptions, and
other shareholder distributions during
the term of the support.
``(III) Proceeds received upon a
sale, redemption, or other liquidation
of the support.
``(IV) Adjustments for risk of
estimated losses, if any.
``(ii) Changes in terms included.--The
estimated cash flows described in subclauses
(I) through (IV) of clause (i) shall include
the effects of changes in terms resulting from
the exercise of options included in the
agreement to provide the support.
``(C) Reestimate of cost.--When the estimated cost
of support provided under paragraph (1) with respect to
a project made in a single fiscal year is reestimated
in a subsequent year, the difference between the
reestimated cost and the previous cost estimate shall
be paid from, or transferred to, the balances available
in the Corporate Capital Account established under
section 1434.''.
SEC. 302. SUBORDINATION.
Section 1421 of the Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9621) is amended by adding at the
end the following:
``(j) Subordination.--
``(1) In general.--The Corporation may accept a creditor
status that is subordinate to that of other creditors, if the
Corporation--
``(A) has determined that an acceptable level of
risk of non-payment or under-payment has been
established; and
``(B) provides to the appropriate congressional
committees--
``(i) notice of the determination of an
acceptable level of risk of non-payment or
under-payment; and
``(ii) the information required by
paragraph (2).
``(2) Information required.--The information required by
this paragraph includes--
``(A) the amount of each such financial commitment;
``(B) an identification of the recipient or
beneficiary; and
``(C) a description of the project, activity, or
asset and the development goal or purpose to be
achieved by providing support by the Corporation.''.
SEC. 303. TERMINATION.
Section 1424(a) of the Better Utilization of Investments Leading to
Development Act of 2018 (22 U.S.C. 9624) is amended by striking ``7
years after the date of the enactment of this Act'' and inserting ``7
years after the date of the enactment of the DFC Modernization and
Reauthorization Act of 2024''.
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 ``$120,000,000,000''.
SEC. 403. AUTHORITY TO USE PORTION OF CORPORATION FEES TO UPDATE
INFORMATION TECHNOLOGY SYSTEMS.
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.''; and
(2) in subsection (k)--
(A) in paragraph (1), by inserting ``other direct
costs associated with origination or monitoring
services, including seminars, conferences, and other
preinvestment services,'' after ``legal expenses,'';
and
(B) in paragraph (2), by striking ``does not
include'' and inserting ``includes''.
SEC. 404. REPEAL OF 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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