H.R. 5299

[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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