119 HR 5299 IH: DFC Modernization Act of 2025 U.S. House of Representatives 2025-09-11 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 5299IN THE HOUSE OF REPRESENTATIVESSeptember 11, 2025Mr. Mast introduced the following bill; which was referred to the Committee on Foreign AffairsA BILLTo modify and reauthorize the Better Utilization of Investments Leading to Development Act of 2018, and for other purposes.

1.

Short title

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

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.