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