[Congressional Record Volume 169, Number 123 (Tuesday, July 18, 2023)]
[Senate]
[Pages S3066-S3068]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 889. Mr. RUBIO submitted an amendment intended to be proposed by
him to the 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 end of title X of division A, add the following:
Subtitle H--National Development Strategy and Coordination Act of 2023
SEC. 1091. SHORT TITLE.
This subtitle may be cited as the ``National Development
Strategy and Coordination Act of 2023''.
SEC. 1092. DEFINITIONS.
In this subtitle:
(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. 1093. 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 subtitle
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, 2025, 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;
[[Page S3067]]
(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. 1094. 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
2023.
``(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
2023, 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 2023, 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. 1095. 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 1093(d) of this subtitle--
(1) for fiscal year 2024, $5,000,000,000;
(2) for fiscal year 2025, $5,000,000,000;
(3) for fiscal year 2026, $5,000,000,000; and
(4) for fiscal year 2027, $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. 1096. PROHIBITIONS AND POLICY.
(a) Prohibition.--No funding or authorities provided under
this subtitle 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 subtitle--
(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
[[Page S3068]]
funded by this subtitle disclose any affiliate, parent
company, or subsidiary located in a country of concern.
______