[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 5246 Introduced in Senate (IS)]

<DOC>






117th CONGRESS
  2d Session
                                S. 5246

 To establish a National Development Strategy, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 13, 2022

   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 2022''.

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, 2024, 
                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 2022.
    ``(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 2022, 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 2022, 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 2023, $5,000,000,000;
            (2) for fiscal year 2024, $5,000,000,000;
            (3) for fiscal year 2025, $5,000,000,000; and
            (4) for fiscal year 2026, $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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