[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 99 Introduced in Senate (IS)]
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118th CONGRESS
1st Session
S. 99
To establish a National Development Strategy, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 26, 2023
Mr. Rubio introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To establish a National Development Strategy, 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 ``National Development Strategy and
Coordination Act of 2023''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committee.--The term
``appropriate congressional committee'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs, the Committee on Finance, the Committee on
Commerce, Science, and Transportation, and the Select
Committee on Intelligence of the Senate; and
(B) the Committee on Financial Services, the
Committee on Energy and Commerce, and the Permanent
Select Committee on Intelligence of the House of
Representatives.
(2) Country of concern.--The term ``country of concern''
means--
(A) the People's Republic of China and any other
foreign government or foreign non-government person
determined to be a foreign adversary under section 7.4
of title 15, Code of Federal Regulations, or any
successor regulation; or
(B) any country determined by the Secretary of
Commerce, in consultation with the United States Trade
Representative, the Secretary of Defense, and the
Director of National Intelligence, to have inadequate
safeguards in place to protect United States funds (or
intellectual property developed using such funds) from
theft or transfer to a foreign government or foreign
non-government person described in subparagraph (A).
(3) Entity of concern.--The term ``entity of concern''
means--
(A) an entity headquartered in a country of
concern;
(B) an entity that is more than 25-percent owned by
individuals or entities in countries of concern;
(C) an entity on the list of specially designated
nationals and blocked persons maintained by the Office
of Foreign Assets Control of the Department of the
Treasury (commonly referred to as the ``SDN list'');
(D) an entity on the Non-SDN Chinese Military-
Industrial Complex Companies List--
(i) established pursuant to Executive Order
13959 (50 U.S.C. 1701 note; relating to
addressing the threat from securities
investments that finance Communist Chinese
military companies), as amended before, on, or
after the date of the enactment of this Act;
and
(ii) maintained by the Office of Foreign
Assets Control;
(E) a Chinese military company on the list required
by section 1260H of the William M. (Mac) Thornberry
National Defense Authorization Act for Fiscal Year 2021
(Public Law 116-283; 10 U.S.C. 113 note);
(F) an entity on the Entity List maintained by the
Bureau of Industry and Security of the Department of
Commerce and set forth in Supplement No. 4 to part 744
of title 15, Code of Federal Regulations, or any
successor regulation;
(G) an entity that produces equipment or services
on the list of communications equipment and services
that pose an unacceptable risk to the national security
of the United States or the security and safety of
United States persons maintained by the Federal
Communications Commission under section 2 of the Secure
and Trusted Communications Networks Act of 2019 (47
U.S.C. 1601); or
(H) any entity that is majority owned or controlled
by, or under common ownership or control with, an
entity described in any of subparagraphs (A) through
(G).
SEC. 3. ESTABLISHMENT OF THE INTERAGENCY COMMITTEE FOR THE COORDINATION
OF NATIONAL DEVELOPMENT FINANCING PROGRAMS.
(a) Establishment.--There is established in the Executive Office of
the President a Committee to be known as the Interagency Committee for
the Coordination of National Development Financing Programs (referred
to in this Act as the ``Committee'').
(b) Membership.--
(1) Composition.--The Committee shall consist of the
following members:
(A) The Secretary of Transportation or a designee
of the Secretary.
(B) The Secretary of Energy or a designee of the
Secretary.
(C) The Secretary of Commerce or a designee of the
Secretary.
(D) The Secretary of Labor or a designee of the
Secretary.
(E) The Secretary of the Treasury or a designee of
the Secretary.
(F) The Administrator of the Small Business
Administration or a designee of the Administrator.
(G) The Secretary of Defense or a designee of the
Secretary.
(H) The Director of National Intelligence or a
designee of the Director.
(I) The Secretary of Agriculture or a designee of
the Secretary.
(J) The United States Trade Representative or their
designee.
(K) The Chair of the Board of Governors of the
Federal Reserve or a designee of the Chair, who shall
serve as a nonvoting member.
(L) The Secretary of the Treasury or a designee of
the Secretary, who shall serve as the chair of the
Committee.
(2) Tie vote.--In the event of a tie vote, the vote of the
chair of the Committee shall serve as the tie-breaker.
(c) Duties.--The Committee--
(1) shall submit to Congress the National Development
Strategy described in subsection (d);
(A) not later than 1 year after the date of
enactment of this Act; and
(B) not later than 1 year after January 20, 2025,
and every 4 years thereafter, and in each such year not
earlier than the latest date on which the budget of the
President may be submitted to Congress under section
1105(a) of title 31, United States Code, submit to
Congress the National Development Strategy described in
subsection (d); and
(2) shall identify economic sectors of the United States,
regions of the United States, and, as necessary and supported
by substantial evidence, projects or partnerships that advance
the goals of the National Development Strategy described in
subsection (d), to which financing assistance should be
prioritized by member agencies of the Committee and should be
provided or supported by the Federal Financing Bank.
(d) National Development Strategy.--The Committee shall develop a
publicly available (except for an allowable classified annex) National
Development Strategy, which shall--
(1) identify and address vulnerabilities in United States
supply chains in industries critical to national security;
(2) identify and address vulnerabilities and shortfalls in
domestic manufacturing capabilities that threaten the ability
of the United States to maintain a global advantage in
innovation and manufacturing;
(3) identify weaknesses and discuss opportunities to
strengthen the broad industrial base of the United States,
which may include--
(A) strengthening supply chain resiliency;
(B) supporting industries critical for the national
security;
(C) developing technologies that provide scientific
or commercial value to the United States;
(D) supporting job growth and development of
critical manufacturing capabilities within the United
States workforce;
(E) supporting the development and adoption of
innovative resource extraction technologies, including
for renewable energy; and
(F) supporting job growth and economic development
in critical industries in communities designated as
qualified opportunity zones under section 1400Z-1 of
the Internal Revenue Code of 1986;
(4) identify industries and regions in the United States
that require assistance in order to address vulnerabilities and
advance the goals described in paragraphs (1), (2), and (3);
and
(5) outline a strategic plan to promote investment in the
industries described in paragraph (4), which shall include--
(A) an estimate of the amount and nature of public
financing needed to achieve the goals and address
vulnerabilities described in paragraphs (1), (2), and
(3);
(B) an inventory of all Federal programs in
existence as of the date of the National Development
Strategy that are capable of providing the financing
described in subparagraph (A), the level of investment
from each such Federal program in the preceding 5-year
period, and a detailed description of how each such
program is advancing development goals in the United
States;
(C) recommendations as to how Federal agencies may,
under existing Federal authorities, leverage and
attract private investment to accomplish the goals
described in this subsection;
(D) recommendations, if applicable, on any changes
to Federal financing programs, including changes to how
financing decisions are prioritized or creation of new
financing programs, that may be needed to advance the
goals of the National Development Strategy;
(E) directives to the Federal Financing Bank to
accomplish the goals of the National Development
Strategy; and
(F) performance metrics to evaluate and monitor
projects supported by the Federal Financing Bank in
alignment with the National Development Strategy.
(e) Advice and Input.--The Committee shall seek the advice and
input of industry partners, manufacturing policy experts, State and
local development officials, and manufacturing worker interests when
preparing the National Development Strategy described in subsection
(d), including by--
(1) holding not less than 4 public hearings per year,
either virtually or in-person, during which industry
representatives, worker groups, and regional representatives
can provide insight into strategic development prioritization;
and
(2) establishing an Industry Advisory Board of not more
than 10 members appointed by the President, which shall
include--
(A) an expert in industry competitiveness and
national security;
(B) a manufacturing trade association
representative;
(C) a representative of small business government
contractors;
(D) a manufacturing worker representative;
(E) a representative from a private investment firm
investing in critical industries and frontier
technology; and
(F) such other representatives as the President may
appoint.
(f) Assessment of National Development Strategy.--In January of
each year in which the Committee does not submit a new National
Development Strategy as required under subsection (d), the Committee
shall submit to the appropriate congressional committees an assessment
of the most recently published National Development Strategy, which
shall include--
(1) an accounting of any new investments made by the
Federal Financing Bank or member agencies of the Committee in
the preceding year, including ZIP Code, North American Industry
Classification System code, and financing stage;
(2) the performance of such investments, in accordance with
performance metrics established by the Committee;
(3) an assessment of the implementation of the National
Development Strategy, including an assessment by each agency
represented on the Committee, supported by sufficient evidence,
of steps taken to align such agencies' financing, research, and
development activities with the goals of the National
Development Strategy; and
(4) a determination on whether or not an update is needed
to the National Development Strategy as a result of a change in
assumptions, geopolitical dynamics, or other factors.
(g) Memorandum of Coordination With Federal Agencies Engaged in
Investment and Financing Activities.--Not later than 1 year after the
date of enactment of this Act, the Committee shall negotiate a
memorandum of understanding among the Federal agencies represented on
the Committee, which shall--
(1) establish procedures for--
(A) aligning their respective investment and
financing authorities to ensure maximum efficiency and
comply with the goals of the National Development
Strategy;
(B) resolving conflicts in cases of overlapping
jurisdiction between their respective agencies; and
(C) avoiding conflicting or duplicative operation
of services.
(2) be reviewed and updated annually in coordination with
the submission of the assessment outlined in subsection (f).
(h) Meetings.--The Committee shall meet regularly and as required
by the President, but not less frequently than annually.
(i) Strategic Alignment.--Each Federal agency represented on the
Committee shall--
(1) consult on a regular basis the most recently published
National Development Strategy described in subsection (d); and
(2) to the extent practicable, give priority consideration
to projects that align with the goals of the National
Development Strategy when engaged in financing, research, and
development activities.
SEC. 4. REQUIREMENTS OF THE FEDERAL FINANCING BANK RELATING TO THE
NATIONAL DEVELOPMENT STRATEGY.
(a) In General.--The Federal Financing Bank Act of 1973 (12 U.S.C.
2281 et seq.) is amended by adding at the end the following:
``SEC. 21. FUNCTIONS WITH RESPECT TO THE COMMITTEE.
``(a) In General.--The Bank shall carry out any directives made to
the Bank by the Interagency Committee for the Coordination of National
Development Financing Programs pursuant to subsections (c)(2) and
(d)(5)(E) of section 3 of the National Development Strategy and
Coordination Act of 2023.
``(b) Activities.--Pursuant to subsection (a), the Bank is
authorized, upon direction by the Interagency Committee for the
Coordination of National Development Financing Programs, to--
``(1) issue securities that are backed by financing
assistance through any member agency of the Committee;
``(2) purchase from the private market loans or other debt
or equity instruments guaranteed in whole or in part by any
member agency of the Committee; and
``(3) participate in agency loans or loan guarantees in an
amount less than 100 percent of the principal amount of
financing.
``(c) Purchase Not for Resale.--As directed by the Interagency
Committee for the Coordination of National Development Financing
Programs in accordance with the National Development Strategy
established under section 3(d) of the National Development Strategy and
Coordination Act of 2023, the Bank may, as necessary, purchase not for
resale to the private market any loans or other debt or equity
instruments described in subsection (b)(2).
``SEC. 22. SECONDARY MARKET OPERATIONS.
``Except as otherwise provided in the National Development Strategy
and Coordination Act of 2023, obligations purchased by the Bank may be
resold in the secondary market in a similar manner to secondary market
sales of Treasury notes.
``SEC. 23. OMBUDSMAN.
``The Board of Directors of the Bank shall designate an official as
the Ombudsman who shall--
``(1) review investments made by the Bank on projects or
partnerships identified by the Interagency Committee for the
Coordination of National Development Financing Programs;
``(2) review the risk profiles and performance of any such
projects or partnerships;
``(3) provide oversight relating to any such projects or
partnerships; and
``(4) provide annually to the appropriate congressional
committees a report detailing investments made by the Bank in
projects or partnerships identified by the Committee described
in paragraph (1), the performance of such investments, and any
new or existing investments that may present cause for concern
regarding the potential of repayment or lack of alignment with
strategic directives.''.
(b) Federal Credit Reform Act.--If the Committee determines that a
project or partnership receiving financial assistance through any
member agency is investing in frontier technologies for which no
reasonable market comparison exists, obligations purchased in
connection with such project or partnership by the Federal Financing
Bank under section 21 of the Federal Financing Bank Act of 1973, as
added by subsection (a) of this section, shall not be subject to the
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.).
SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR THE FEDERAL FINANCING BANK.
(a) In General.--There is authorized to be appropriated to the
Federal Financing Bank, to remain available for 10 years after the date
of distribution, to carry out projects and partnerships selected by the
National Development Strategy established under section 3(d) of this
Act--
(1) for fiscal year 2024, $5,000,000,000;
(2) for fiscal year 2025, $5,000,000,000;
(3) for fiscal year 2026, $5,000,000,000; and
(4) for fiscal year 2027, $5,000,000,000;
(b) Set Aside.--Not more than 2 percent of funds appropriated under
this section shall be utilized for administrative costs, including the
hiring of new staff to oversee and accomplish the functions of the
Federal Financing Bank.
(c) Sense of Congress.--It is the sense of Congress that the
Federal Financing Bank should use amounts appropriated under this
section as soon as possible.
SEC. 6. PROHIBITIONS AND POLICY.
(a) Prohibition.--No funding or authorities provided under this Act
may be used to support projects or partnerships with any entity of
concern.
(b) Policies.--Not later than 180 days after the date of enactment
of this Act, the Committee shall establish policies to ensure that any
support to projects or partnerships provided by the Federal Financing
Bank in accordance with this Act--
(1) includes assurances that no support provided in such
project or partnership shall be used to expand operations in a
country of concern;
(2) includes protections to ensure against transfer of
intellectual property to countries of concern; and
(3) includes requirements that any firm participating in a
project or partnership funded by this Act disclose any
affiliate, parent company, or subsidiary located in a country
of concern.
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