[Congressional Record Volume 169, Number 119 (Wednesday, July 12, 2023)]
[Senate]
[Pages S2422-S2424]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 257. Mr. COONS (for himself and Mr. Cornyn) submitted an amendment 
intended to be proposed by him to the

[[Page S2423]]

bill S. 2226, to authorize appropriations for fiscal year 2024 for 
military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. ENHANCING AMERICAN COMPETITIVENESS ACT OF 2023.

       (a) Short Title.--This section may be cited as the 
     ``Enhancing American Competitiveness Act of 2023''.
       (b) Definitions.--In this section:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Foreign Relations, the Committee on 
     Appropriations, and the Committee on the Budget of the 
     Senate; and
       (B) the Committee on Foreign Affairs, the Committee on 
     Appropriations, and the Committee on the Budget of the House 
     of Representatives.
       (2) Corporation.--The term ``Corporation'' means the United 
     States International Development Finance Corporation.
       (c) Findings.--Congress finds the following:
       (1) The mission of the Corporation is to mobilize 
     investment to advance global development, foreign policy 
     objectives of the United States, and taxpayer interests.
       (2) Congress established the Corporation to leverage 
     private sector capabilities and to serve as a robust 
     alternative to state-directed investments by authoritarian 
     governments and strategic competitors of the United States.
       (3) Congress authorized the Corporation--
       (A) to provide equity financing in order to provide the 
     Corporation with greater flexibility to invest in early- and 
     growth-stage companies, partner with other financial 
     institutions, and enable investees to scale operations more 
     effectively to create greater impact on developments;
       (B) under section 1421(d) of the BUILD Act of 2018 (22 
     U.S.C. 9621(d))--
       (i) to provide insurance and reinsurance of debt for the 
     purposes of furthering United States foreign policy, 
     development, and national security objectives; and
       (ii) to insure debt investments;
       (C) to collect insurance and reinsurance premiums and pay 
     insurance and reinsurance claims; and
       (D) to make loans or guaranties upon such terms and 
     conditions as the Corporation may determine under section 
     1421(b) of the BUILD Act of 2018 (22 U.S.C. 9621(b)) for the 
     purposes of furthering foreign policy, development, and 
     national security objectives of the United States.
       (4) Under section 1422(b)(3) of that Act (22 U.S.C. 
     9621(b)(3)), Congress limited the authority described in 
     paragraph (3)(D) by requiring that for any loan or guaranty 
     to a project, the parties to the project bear the risk of 
     loss in an amount equal to at least 20 percent of the 
     guaranteed support by the Corporation in the project.
       (5) Congress authorized the Corporation to guaranty 100 
     percent of an obligation, including a loan, a bond issuance, 
     or a tranche of any such loan or bond in which other parties 
     to the project bear the risk of loss in an amount equal to at 
     least 20 percent of the guaranteed support by the Corporation 
     in the project.
       (6) Obstacles to the implementation of the authorities 
     described in paragraph (3) have constrained the ability of 
     the Corporation to leverage its full capacity to enhance the 
     economic and strategic competitiveness of the United States 
     and to cooperate effectively with foreign partners and the 
     private sector.
       (d) Sense of Congress.--It is the sense of Congress that--
       (1) the proper budgetary treatment of the insurance and 
     reinsurance authorities of the Corporation, including 
     insurance and reinsurance of debt, is not subject to 
     budgetary treatment under the requirements of Federal Credit 
     Reform Act of 1990 (2 U.S.C. 661 et seq.); and
       (2) guaranties provided by the Corporation in excess of 80 
     percent of an obligation are exempt from applicable 
     provisions of the Office of Management and Budget Circular A-
     129.
       (e) Modification of Eligibility Definitions.--The Build Act 
     of 2018 (22 U.S.C. 9601 et seq.) is amended--
       (1) in section 1402--
       (A) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (3), (4), and (5), respectively; and
       (B) by inserting after paragraph (1) the following:
       ``(2) Fragile and conflict-affected state.--The term 
     `fragile and conflict-affected state' means a country that--
       ``(A) is on the List of Fragile and Conflict-affected 
     Situations maintained by the Fragility, Conflict and Violence 
     Group of the World Bank; or
       ``(B) the Corporation, after consultation with the 
     Secretary of State and the Administrator of the United States 
     Agency for International Development, designates as fragile 
     or conflict-affected.''; and
       (2) in section 1412(c), by striking paragraph (2) and 
     inserting the following:
       ``(2) Eligible countries.--The Corporation may provide 
     support under title II in a country that is--
       ``(A) eligible to receive development lending from the 
     World Bank; and
       ``(B) a fragile and conflict-affected state.''.
       (f) Budgetary Treatment of Equity Investments by the 
     Corporation.--Section 1421(c) of the BUILD Act of 2018 (22 
     U.S.C. 9521 (c)) is amended by adding at the end the 
     following:
       ``(7) Present value of equity account.--There is 
     established as a subaccount within the Corporate Capital 
     Account a fund to be known as the `Corporate Equity Account' 
     to carry out this subsection.
       ``(8) Budgetary treatment of equity investments.--
       ``(A) Calculation of the costs of investment.--
       ``(i) In general.--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, excluding administrative costs and any 
     incidental effects on governmental receipts or outlays, of 
     the following estimated cash flows:

       ``(I) The purchase price of the investment.
       ``(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 investment.
       ``(IV) Foreign currency fluctuations, for support 
     denominated in foreign currencies.
       ``(V) Any other relevant cashflow.

       ``(ii) Changes in terms included.--The estimated cash flows 
     described in subclauses (I) through (V) 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.
       ``(iii) Discount rate.--The discount rate shall be the 
     average interest rate on marketable Treasury securities of 
     similar maturity to the support provided under paragraph (1).
       ``(B) Transfer.--Subject to the availability of 
     appropriations, an amount equal to the cost of support 
     determined under subparagraph (A) shall be transferred from 
     the Corporate Capital Account to the Corporate Equity 
     Account.
       ``(C) Differential amount.--
       ``(i) Appropriation.--For any fiscal year, upon the 
     transfer of an amount pursuant to subparagraph (B), an amount 
     equal to the differential amount shall be appropriated, out 
     of any money in the Treasury not otherwise appropriated, to 
     the Corporate Equity Account.
       ``(ii) Treatment as direct spending.--An amount 
     appropriated pursuant to clause (i) shall be recorded as 
     direct spending (as defined by section 250(c)(8) of the 
     Balanced Budget and Emergency Deficit Control Act of 1985 (2 
     U.S.C. 900(c)(8)).
       ``(iii) Budgetary effects.--The following shall apply to 
     budget enforcement under the Congressional Budget Act of 1974 
     (2 U.S.C. 601 et seq.), the Balanced Budget and Emergency 
     Deficit Control Act of 1985 (2 U.S.C. 900 et seq.), and the 
     Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 931 et seq.):

       ``(I) Future appropriations.--Any amount appropriated 
     pursuant to clause (i) shall not be recorded as budget 
     authority or outlays for purposes of any estimate under the 
     Congressional Budget Act of 1974 or the Balanced Budget and 
     Emergency Deficit Control Act of 1985.
       ``(II) Statutory paygo scorecards.--The budgetary effects 
     of any amounts appropriated pursuant to clause (i) shall not 
     be entered on either PAYGO scorecard maintained pursuant to 
     section 4(d) of the Statutory Pay As-You-Go Act of 2010 (2 
     U.S.C. 933(d)).
       ``(III) Senate paygo scorecards.--The budgetary effects of 
     any amounts appropriated pursuant to clause (i) shall not be 
     entered on any PAYGO scorecard maintained for purposes of 
     section 4106 of H. Con. Res. 71 (115th Congress).
       ``(IV) Elimination of credit for cancellation or rescission 
     of differential.--If there is enacted into law an Act that 
     rescinds or reduces an amount appropriated pursuant to clause 
     (i), the amount of any such rescission or reduction shall not 
     be--

       ``(aa) estimated as a reduction in direct spending under 
     the Congressional Budget Act of 1974 or the Balanced Budget 
     and Emergency Deficit Control Act of 1985; or
       ``(bb) entered on either PAYGO scorecard maintained 
     pursuant to section 4(d) of the Statutory Pay As-You-Go Act 
     of 2010 or any PAYGO scorecard maintained for purposes of 
     section 4106 of H. Con. Res. 71 (115th Congress).
       ``(iv) Differential amount defined.--In this subparagraph, 
     the term `differential amount' means the difference between 
     the cost of support provided under paragraph (1), as 
     determined under subparagraph (A), and the purchase price of 
     the equity investment involved.
       ``(D) Coordination.--
       ``(i) In general.--The Director of the Office of Management 
     and Budget, in consultation with the Corporation, shall be 
     responsible for coordinating the cost estimates required by 
     this paragraph.
       ``(ii) Rule of construction.--Nothing in this subparagraph 
     shall be construed to change the authority or responsibility 
     of the Corporation to determine the terms and conditions of 
     eligibility for, or the amount of support provided by, the 
     Corporation.''.
       (g) Maximum Contingent Liability.--Section 1433 of the 
     BUILD Act of 2018 (22 U.S.C. 9633) is amended by striking 
     ``$60,000,000,000'' and inserting ``$100,000,000,000''.
       (h) Reporting Requirement.--Not later than 180 days after 
     the date of the enactment of this Act, the Chief Executive 
     Officer of the

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     Corporation shall submit to the appropriate congressional 
     committees a plan to expand the financing of the Corporation 
     to support national security and development priorities of 
     the United States in critical regions, including--
       (1) a description of the budgetary, staffing, and 
     programmatic resources necessary to carry out the plan; and
       (2) the effective date and the basis used, in consultation 
     with the Director of the Office of Management and Budget, to 
     calculate the net present value of funds appropriated for use 
     under section 1421(c) of the Build Act of 2018 (22 U.S.C. 
     9621(c)).
                                 ______