[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8926 Introduced in House (IH)]

<DOC>






118th CONGRESS
  2d Session
                                H. R. 8926

To modify and reauthorize the Better Utilization of Investments Leading 
                      to Development Act of 2018.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              July 2, 2024

 Mr. McCaul (for himself and Mr. Meeks) 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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``DFC Modernization 
and Reauthorization Act of 2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Sense of Congress.
         TITLE I--DEFINITIONS AND LESS DEVELOPED COUNTRY FOCUS

Sec. 101. Definitions.
Sec. 102. Less developed country focus.
                  TITLE II--MANAGEMENT OF CORPORATION

Sec. 201. Board of Directors.
Sec. 202. Chief Risk Officer.
Sec. 203. Chief Development Officer.
Sec. 204. Pay comparability.
Sec. 205. Office of Foreign Policy.
        TITLE III--AUTHORITIES RELATING TO PROVISION OF SUPPORT

Sec. 301. Applicability of Federal Credit Reform Act of 1990.
Sec. 302. Termination.
                        TITLE IV--OTHER MATTERS

Sec. 401. Corporate powers.
Sec. 402. Maximum contingent liability.
Sec. 403. Authorit To use portion of Corporation fees To update 
                            information technology systems.
Sec. 404. Repeal of European Energy Security and Diversification Act of 
                            2019.

SEC. 2. SENSE OF CONGRESS.

    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 
properly pursuing its statutory objectives of advancing developmental 
and national security goals, including--
            (1) by accepting a creditor status that is subordinate to 
        that of other creditors;
            (2) by guaranteeing loans up to 100 percent of principal as 
        part of projects structured in compliance with the Better 
        Utilization of Investments Leading to Development Act of 2018; 
        and
            (3) lending, investing, or offering insurance in high-risk 
        countries, regions, or sectors as a means to achieve its 
        mission to mobilize capital in underserved markets or segments.

         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'--
                    ``(A) 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'; but
                    ``(B) does not include a wealthy country.'';
            (3) in paragraph (3) (as so redesignated) to read as 
        follows:
            ``(3) Less developed country.--The term less developed 
        country means, with respect to a fiscal year for the 
        Corporation, a country the per capita income of which at the 
        start of such fiscal year is equal to or less than the then-
        current World Bank threshold for initiating the International 
        Bank for Reconstruction and Development graduation process.''; 
        and
            (4) 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 purpose of the 
                Corporation as described in section 1412(b).''; and
            (5) by adding at the end the following:
            ``(6) Upper-middle-income country.--The term ``upper-
        middle-income country'' means, with respect to a fiscal year 
        for the Corporation, a country the per capita income of which 
        at the start of such fiscal year is greater than the then-
        current World Bank threshold for initiating the International 
        Bank for Reconstruction and Development graduation process, and 
        is equal to or less than the per capita income threshold 
        defined as a high-income economy by the World Bank.
            ``(7) Wealthy country.--The term `wealthy country' means a 
        country that is among the 40 countries with the highest gross 
        domestic product per capita at purchasing power parity as 
        calculated by the World Bank.''.

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 by striking 
subsection (c) and inserting the following:
    ``(c) Less Developed Country Focus.--
            ``(1) In general.--The Corporation shall prioritize the 
        provision of support under title II in less developed 
        countries.
            ``(2) Upper-middle-income and high-income countries.--
                    ``(A) Upper-middle-income countries.--The 
                Corporation may provide support under title II in an 
                upper-middle-income country if, prior to providing the 
                support, the Chief Executive Officer certifies in 
                writing to the appropriate congressional committees 
                that such support--
                            ``(i) is designed to produce significant 
                        developmental outcomes or provide developmental 
                        benefits to the poorest population of such 
                        country; and
                            ``(ii) furthers the national economic or 
                        foreign policy interests of the United States.
                    ``(B) High-income countries.--The Corporation may 
                provide support under title II in a high-income 
                country, subject to following conditions:
                            ``(i) With respect to support for all 
                        projects in such countries, the aggregate 
                        amount of such support may not exceed 10 
                        percent of the maximum contingent liability of 
                        the Corporation authorized to be outstanding 
                        pursuant to section 1433.
                            ``(ii) With respect to support for any 
                        single project in such a country--
                                    ``(I) the Corporation shall seek to 
                                minimize its support to a level 
                                necessary to achieve the development 
                                and foreign policy goals of the United 
                                States;
                                    ``(II) the Chief Executive Officer 
                                shall certify to the appropriate 
                                congressional committees that the 
                                Corporation has made all reasonable 
                                efforts to ensure that--
                                            ``(aa) the support is a 
                                        preferred alternative to state-
                                        directed investments by foreign 
                                        countries of concern or 
                                        otherwise furthers the 
                                        strategic interest of the 
                                        United States to counter or 
                                        limit the influence of foreign 
                                        countries of concern;
                                            ``(bb) private sector 
                                        entities have been afforded an 
                                        opportunity to support the 
                                        project on viable terms in lieu 
                                        of support by the Corporation; 
                                        and
                                            ``(cc) the support is 
                                        designed to produce significant 
                                        developmental outcomes or 
                                        provide developmental benefits 
                                        to the poorest population of 
                                        such country.
                    ``(C) Report.--Not later than 120 days after the 
                date of the enactment of this subsection, and annually 
                thereafter, the Corporation shall submit to the 
                appropriate congressional committees a list of all 
                high-income countries in which the Corporation 
                anticipates providing support in the subsequent fiscal 
                year, and, to the extent practicable, a description of 
                the type of projects anticipated.
                    ``(D) Definition.--In this subsection, the term 
                `foreign country of concern' has the meaning given that 
                term in section 231.102 of title 15, Code of Federal 
                Regulations.''.

                  TITLE II--MANAGEMENT OF CORPORATION

SEC. 201. BOARD OF DIRECTORS.

    Section 1413(b)(2)(A)(iii) of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9613(b)(2)(A)(iii)) is 
amended by striking ``5 individuals'' each place it appears and 
inserting ``3 individuals''.

SEC. 202. CHIEF RISK OFFICER.

    Section 1413(f)(1) of the Better Utilization of Investments Leading 
to Development Act of 2018 (22 U.S.C. 9613(f)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by striking 
        ``who--'' and inserting ``who shall be removable only by a 
        majority vote of the Board.''; and
            (2) by striking subparagraphs (A) and (B).

SEC. 203. CHIEF DEVELOPMENT OFFICER.

    Section 1413(g) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9613(g)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``who--'' and inserting ``who shall be 
                removable only by a majority vote of the Board.''; and
                    (B) by striking subparagraphs (A) and (B); and
            (2) in paragraph (2)(B), by striking ``under the guidance 
        of the Chief Executive Officer,''.

SEC. 204. PAY COMPARABILITY.

    Section 1413(h)(2) of the Better Utilization of Investments Leading 
to Development Act of 2018 (22 U.S.C. 9613(h)(2)) is amended--
            (1) in subparagraph (A), by striking ``50'' and inserting 
        ``100''; and
            (2) in subparagraph (D)--
                    (A) by inserting ``not to exceed 20 percent of 
                its'' before ``officers and employees''; and
                    (B) by striking ``appointed under subparagraph 
                (A)''.

SEC. 205. VICE PRESIDENT FOR FOREIGN POLICY AND NATIONAL SECURITY.

    Section 1413 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9613) is amended by adding at the 
end the following:
    ``(j) Vice President for Foreign Policy and National Security.--
            ``(1) Appointment.--The Chief Executive Officer shall 
        appoint a Vice President for Foreign Policy and National 
        Security, from among individuals with experience in foreign 
        policy or national security matters.
            ``(2) Duties.--The Vice President shall--
                    ``(A) advise the Chief Executive Officer and Deputy 
                Chief Executive Officer on foreign policy matters;
                    ``(B) in addition to the Chief Executive Officer 
                and the Deputy Chief Executive Officer, represent the 
                Corporation in the interagency national security and 
                foreign planning process;
                    ``(C) work with other relevant Federal agencies to 
                identify projects that advance United States foreign 
                policy interests;
                    ``(D) manage employees that are dedicated to 
                ensuring that the Corporation's activities advance 
                United States foreign policy and national security 
                interests and diplomatic strategy, including through--
                            ``(i) long-term strategic planning;
                            ``(ii) issue and crisis management; and
                            ``(iii) the advancement of foreign policy 
                        initiatives;
                    ``(E) foster and maintain relationships within the 
                Corporation and external to the Corporation that 
                increase the capacity of the Corporation to achieve its 
                mission to advance United States foreign policy and 
                national security interests; and
                    ``(F) coordinate within the Corporation to ensure 
                United States foreign policy and national security 
                interests are considered together with the 
                Corporation's development goals.''.

        TITLE III--AUTHORITIES RELATING TO PROVISION OF SUPPORT

SEC. 301. APPLICABILITY OF FEDERAL CREDIT REFORM ACT OF 1990.

    Section 1421(c) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9621(c)), as amended by this title, 
is further amended by adding at the end the following:
            ``(8) Applicability of federal credit reform act of 1990.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), support provided under paragraph (1) with respect 
                to a project shall be subject to the Federal Credit 
                Reform Act of 1990 (2 U.S.C. 661 et seq.) for purposes 
                of applying the requirements of such Act to such 
                support.
                    ``(B) Determination of cost.--
                            ``(i) In general.--For purposes of section 
                        502(5) of the Federal Credit Reform Act of 1990 
                        (2 U.S.C. 661a(5)) the cost of support provided 
                        under paragraph (1) with respect to a project 
                        shall be the net present value, at the time 
                        when funds are disbursed to provide the 
                        support, of the following estimated cash flows:
                                    ``(I) The purchase price of the 
                                support.
                                    ``(II) Dividends, redemptions, and 
                                other shareholder distributions during 
                                the term of the support.
                                    ``(III) Proceeds received upon a 
                                sale, redemption, or other liquidation 
                                of the support.
                                    ``(IV) Adjustments for risk of 
                                estimated losses, if any.
                            ``(ii) Changes in terms included.--The 
                        estimated cash flows described in subclauses 
                        (I) through (IV) of clause (i) shall include 
                        the effects of changes in terms resulting from 
                        the exercise of options included in the 
                        agreement to provide the support.
                    ``(C) Reestimate of cost.--When the estimated cost 
                of support provided under paragraph (1) with respect to 
                a project made in a single fiscal year is reestimated 
                in a subsequent year, the difference between the 
                reestimated cost and the previous cost estimate shall 
                be paid from, or transferred to, the balances available 
                in the Corporate Capital Account established under 
                section 1434.''.

SEC. 302. SUBORDINATION.

    Section 1421 of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9621) is amended by adding at the 
end the following:
    ``(j) Subordination.--
            ``(1) In general.--The Corporation may accept a creditor 
        status that is subordinate to that of other creditors, if the 
        Corporation--
                    ``(A) has determined that an acceptable level of 
                risk of non-payment or under-payment has been 
                established; and
                    ``(B) provides to the appropriate congressional 
                committees--
                            ``(i) notice of the determination of an 
                        acceptable level of risk of non-payment or 
                        under-payment; and
                            ``(ii) the information required by 
                        paragraph (2).
            ``(2) Information required.--The information required by 
        this paragraph includes--
                    ``(A) the amount of each such financial commitment;
                    ``(B) an identification of the recipient or 
                beneficiary; and
                    ``(C) a description of the project, activity, or 
                asset and the development goal or purpose to be 
                achieved by providing support by the Corporation.''.

SEC. 303. TERMINATION.

    Section 1424(a) of the Better Utilization of Investments Leading to 
Development Act of 2018 (22 U.S.C. 9624) is amended by striking ``7 
years after the date of the enactment of this Act'' and inserting ``7 
years after the date of the enactment of the DFC Modernization and 
Reauthorization Act of 2024''.

                        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 ``$120,000,000,000''.

SEC. 403. AUTHORITY TO USE PORTION OF CORPORATION FEES TO UPDATE 
              INFORMATION TECHNOLOGY SYSTEMS.

     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.''; and
            (2) in subsection (k)--
                    (A) in paragraph (1), by inserting ``other direct 
                costs associated with origination or monitoring 
                services, including seminars, conferences, and other 
                preinvestment services,'' after ``legal expenses,''; 
                and
                    (B) in paragraph (2), by striking ``does not 
                include'' and inserting ``includes''.

SEC. 404. REPEAL OF 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.
                                 <all>