S.Amdt. 3658

SA 3658. Mr. RISCH submitted an amendment intended to be proposed by
him to the bill S. 2296, to authorize appropriations for fiscal year
2026 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 XII, add the following:

Subtitle F--DFC Modernization and Reauthorization Act of 2025

SEC. 1270. SHORT TITLE.

This subtitle may be cited as the ``DFC Modernization and
Reauthorization Act of 2025''.

PART I--DEFINITIONS AND LESS DEVELOPED COUNTRY FOCUS

SEC. 1271. 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 (1), (2), (3), and (4) as
paragraphs (2), (5), (6), and (7), respectively;
(2) by inserting before paragraph (2), as so redesignated,
the following:
``(1) Advancing income country.--The term `advancing income
country', with respect to a fiscal year for the Corporation,
means a country the gross national income per capita of which
at the start of such fiscal year is--
``(A) greater than the World Bank threshold for initiating
the International Bank for Reconstruction and Development
graduation process; and
``(B) is equal to or less than the per capita income
threshold for classification as a high-income economy (as
defined by the World Bank).'';
(3) by inserting after paragraph (2), as so redesignated,
the following:
``(3) Country of concern.--The term `country of concern'
means any of the following countries:
``(A) The Bolivarian Republic of Venezuela.
``(B) The Republic of Cuba.
``(C) The Democratic People's Republican of Korea.

[[Page S5456]]

``(D) The Islamic Republic of Iran.
``(E) The People's Republic of China.
``(F) The Russian Federation.
``(G) Belarus.
``(4) High-income country.--The term `high-income country',
with respect to a fiscal year for the Corporation, means a
country with a high-income economy (as defined by the World
Bank) at the start of such fiscal year.''; and
(4) by striking paragraph (5), as so redesignated, and
inserting the following:
``(5) Less developed country.--The term `less developed
country', with respect to a fiscal year for the Corporation,
means a country the gross national income per capita of which
at the start of such fiscal year is equal to or less than the
World Bank threshold for initiating the International Bank
for Reconstruction Development graduation process.''.

SEC. 1272. 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--
(1) in subsection (b), in the first sentence, by striking
``and countries in transition from nonmarket to market
economies'' and inserting ``countries in transition from
nonmarket to market economies, and other eligible
countries''; and
(2) by striking subsection (c) and inserting the following:
``(c) Eligible Countries.--
``(1) Less developed country focus.--The Corporation shall
prioritize the provision of support under title II in less
developed countries.
``(2) Advancing income countries.--The Corporation may
provide support for a project under title II in an advancing
income country if, before providing such support, the Chief
Executive Officer certifies in writing to the appropriate
congressional committees, that such support will be provided
in accordance with the policy established pursuant to
subsection (d)(2). Such certification may be included as an
appendix to the report required by section 1446.
``(3) High-income countries.--
``(A) In general.--The Corporation may provide support for
a project under title II in a high-income country if, before
providing such support, the Chief Executive Officer certifies
in writing to the appropriate congressional committees that
such support will be provided in accordance with the policy
established pursuant to subsection (d)(3). Such certification
may be included as an appendix to the report required by
section 1446.
``(B) Report.--Not later than 120 days after the date of
the enactment of the DFC Modernization and Reauthorization
Act of 2025, and annually thereafter, the Corporation shall
submit to the appropriate congressional committees a report,
which may be submitted in classified form, that includes--
``(i) a list of all high-income countries in which the
Corporation anticipates providing support in the subsequent
fiscal year (and, with respect to the first such report, the
then-current fiscal year); and
``(ii) to the extent practicable, a description of the type
of projects anticipated to receive such support.
``(C) Projects in high-income countries not previously
identified in report.--The Corporation may not provide
support for a project in a high-income country in any year
for which that high-income country is not included on the
list required by subparagraph (B)(i), unless, not later than
15 days before commencing the full due diligence process on
such project, the Corporation submits to the appropriate
congressional committees a notification describing how the
proposed project advances the foreign policy interests of the
United States.
``(4) Continuation of eligibility.--Projects previously
justified to Congress and approved by the Board shall remain
eligible for support notwithstanding any change in the income
classification of the country for which project support has
been approved.
``(d) Strategic Investments Policy.--
``(1) In general.--The Board shall establish policies,
which shall be applied on a project-by-project basis, to
evaluate and determine the strategic merits of providing
support for projects and investments in advancing income
countries and high-income countries.
``(2) Investment policy for advancing income countries.--
Any policy used to evaluate and determine the strategic
merits of providing support for projects in an advancing
income country shall require that such projects--
``(A) advance--
``(i) the national security interests of the United States
in accordance with United States foreign policy, as
determined by the Secretary of State; or
``(ii) significant strategic economic competitiveness
imperatives;
``(B) are designed in a manner to produce significant
developmental outcomes or provide developmental benefits to
the poorest populations of such country; and
``(C) are structured in a manner that maximizes private
capital mobilization.
``(3) Investment policy for high-income countries.--Any
policy used to evaluate and determine the strategic merits of
providing support for projects in high-income countries shall
require that--
``(A) each such project meets the requirements described in
paragraph (2);
``(B) with respect to each project in a high-income
country--
``(i) private sector entities have been afforded an
opportunity to support the project on viable terms in place
of support by the Corporation; and
``(ii) such support does not exceed more than 25 percent of
the total cost of the project;
``(C) with respect to support for all projects in all high-
income countries, the aggregate amount of such support does
not exceed 8 percent of the total contingent liability of the
Corporation outstanding as of the date on which any such
support is provided in a high-income country; and
``(D) the Chief Executive Officer submit a report to the
appropriate congressional committees that--
``(i) certifies that the Corporation has applied the policy
to each supported project in a high-income country; and
``(ii) describes whether such support--

``(I) is a preferred alternative to state-directed
investments by a foreign country of concern; or
``(II) otherwise furthers the strategic interest of the
United States to counter or limit the influence of foreign
countries of concern.

``(e) Ineligible Countries.--The Corporation shall not
provide support for a project in a country of concern.''.

PART II--MANAGEMENT OF CORPORATION

SEC. 1273. STRUCTURE OF CORPORATION.

Section 1413(a) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(a)) is
amended by inserting ``a Chief Strategic Investment
Officer,'' after ``Chief Development Officer,''.

SEC. 1274. BOARD OF DIRECTORS.

Section 1413 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613) is
amended--
(1) in subsection (b)--
(A) in paragraph (2)(A)(iii), by striking ``5 individuals''
each place it appears and inserting ``3 individuals''; and
(B) by adding at the end the following new paragraph:
``(6) Sunshine act compliance.--Meetings of the Board are
subject to section 552b of title 5, United States Code
(commonly referred to as the `Government in the Sunshine
Act').''; and
(2) by striking subsection (c) and inserting the following:
``(c) Public Hearings.--The Board shall--
``(1) hold at least 2 public hearings each year in order to
afford an opportunity for any person to present views with
respect to whether--
``(A) the Corporation is carrying out its activities in
accordance with this division; and
``(B) any support provided by the Corporation under title
II in any country should be suspended, expanded, or extended;
``(2) as necessary and appropriate, provide responses to
the issues and questions discussed during each such hearing
following the conclusion of the hearing;
``(3) post the minutes from each such hearing on a website
of the Corporation and, consistent with applicable laws
related to privacy and the protection of proprietary business
information, the responses to issues and questions discussed
in the hearing; and
``(4) implement appropriate procedures to ensure the
protection from unlawful disclosure of the proprietary
information submitted by private sector applicants marked as
business confidential information unless--
``(A) the party submitting the confidential business
information waives such protection or consents to the release
of the information; or
``(B) to the extent some form of such protected information
may be included in official documents of the Corporation, a
nonconfidential form of the information may be provided, in
which the business confidential information is summarized or
deleted in a manner that provides appropriate protections for
the owner of the information.''.

SEC. 1275. CHIEF EXECUTIVE OFFICER.

Section 1413(d)(3) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(d)(3)) is
amended to read as follows:
``(3) Relationship to board.--The Chief Executive Officer
shall--
``(A) report to and be under the direct authority of the
Board; and
``(B) take input from the Board when assessing the
performance of the Chief Risk Officer, established pursuant
to subsection (f), the Chief Development Officer, established
pursuant to subsection (g), and the Chief Strategic
Investment Officer, established pursuant to subsection
(h).''.

SEC. 1276. CHIEF RISK OFFICER.

Section 1413(f) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(f)) is
amended--
(1) in paragraph (1)--
(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) by striking paragraph (2) and inserting the following:
``(2) Duties and responsibilities.--The Chief Risk Officer
shall--
``(A) concurrently report to the Chief Executive Officer
and the Board;
``(B) support the risk committee of the Board established
under section 1441 in carrying out its responsibilities as
set forth in subsection (b) of that section, including by--
``(i) developing, implementing, and managing a
comprehensive framework and process for identifying,
assessing, and monitoring risk;
``(ii) developing a transparent risk management framework
designed to evaluate

[[Page S5457]]

risks to the Corporation's overall portfolio, giving due
consideration to the policy imperatives of ensuring
investment and regional diversification of the Corporation's
overall portfolio;
``(iii) assessing the Corporation's overall risk tolerance,
including recommendations for managing and improving the
Corporation's risk tolerance and regularly advising the Board
on recommended steps the Corporation may take to responsibly
increase risk tolerance; and
``(iv) regularly collaborating with the Chief Development
Officer and the Chief Strategic Investments Officer to ensure
the Corporation's overall portfolio is appropriately
balancing risk tolerance with development and strategic
impact.''.

SEC. 1277. CHIEF DEVELOPMENT OFFICER.

Section 1413(g) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613) is
amended--
(1) in paragraph (1), by striking ``in development'' in the
matter preceding subparagraph (A) and all that follows
through ``shall be'' subparagraph (B) and inserting ``in
international development and development finance, who shall
be''; and
(2) in paragraph (2)--
(A) in the paragraph heading, by inserting ``and
responsibilities'' after ``duties'';
(B) by redesignating subparagraphs (A), (B), (C), (D), (E),
and (F) as subparagraphs (D), (E), (F), (G), (H), and (I),
respectively;
(C) by inserting before subparagraph (D), as so
redesignated, the following:
``(A) advise the Chief Executive Officer and the Deputy
Chief Executive Officer on international development policy
matters and concurrently report to the Chief Executive
Officer and to the Board;
``(B) in addition to the Chief Executive Officer and the
Deputy Chief Executive Officer, represent the Corporation in
interagency meetings and processes relating to international
development;
``(C) work with other relevant Federal departments and
agencies to identify projects that advance United States
international development interests;'';
(D) in subparagraph (D), as so redesignated, by striking
``United States Government'' and all that follows and
inserting ``Federal departments and agencies, including by
directly liaising with the relevant members of United States
country teams serving overseas, to ensure that such Federal
departments, agencies, and country teams have the training
and awareness necessary to fully leverage the Corporation's
development tools overseas;'';
(E) in subparagraph (E), as so redesignated--
(i) by striking ``under the guidance of the Chief Executive
Officer,'';
(ii) by inserting ``the development impact of Corporation
transactions, including'' after ``evaluating''; and
(iii) by striking ``United States Government'' and
inserting ``Federal'';
(F) by striking subparagraph (F), as so redesignated, and
inserting the following:
``(F) coordinate implementation of funds or other resources
transferred to and from such Federal departments, agencies,
or overseas country teams in support of the Corporation's
international development projects or activities;'';
(G) in subparagraph (G), as so redesignated, by inserting
``manage the reporting responsibilities of the Corporation
under'' after ``1442(b) and'';
(H) in subparagraph (H), as so redesignated, by striking
``; and'' and inserting a semicolon;
(I) in subparagraph (I), as so redesignated--
(i) by striking ``subsection (i)'' and inserting
``subsection (j)''; and
(ii) by striking the period at the end and inserting a
semicolon; and
(J) by adding at the end the following new subparagraphs:
``(J) oversee implementation of the Corporation's
development impact strategy and work to ensure development
impact at the transaction level and portfolio-wide;
``(K) foster and maintain relationships both within and
external to the Corporation that enhance the capacity of the
Corporation to achieve its mission to advance United States
international development policy and interests;
``(L) coordinate within the Corporation to ensure United
States international development policy and interests are
considered together with the Corporation's foreign policy and
national security goals; and
``(M) coordinate with other Federal departments and
agencies to explore investment opportunities that bring
evidence-based, cost effective development innovations to
scale in a manner that can be sustained by markets.''.

SEC. 1278. CHIEF STRATEGIC INVESTMENT OFFICER.

Section 1413 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613) is
amended--
(1) by redesignating subsections (h) and (i) as subsections
(i) and (j), respectively; and
(2) by inserting after subsection (g) the following:
``(h) Chief Strategic Investment Officer.--
``(1) Appointment.--Subject to the approval of the Board,
the Chief Executive Officer shall appoint a Chief Strategic
Investment Officer, from among individuals with experience in
United States national security matters and foreign
investment, who shall be removable only by a majority vote of
the Board.
``(2) Duties.--The Chief Strategic Investment Officer
shall--
``(A) advise the Chief Executive Officer and the Deputy
Chief Executive Officer on foreign policy matters and
concurrently report to the Chief Executive Officer and to the
Board;
``(B) in addition to the Chief Executive Officer and the
Deputy Chief Executive Officer, represent the Corporation in
interagency meetings and processes relating to United States
national security;
``(C) coordinate efforts to develop the Corporation's
strategic investment initiatives--
``(i) to counter predatory state-directed investment and
coercive economic practices of adversaries of the United
States;
``(ii) to preserve the sovereignty of partner countries;
and
``(iii) to advance economic growth through the highest
standards of transparency, accessibility, and competition;
``(D) provide input into the establishment of performance
measurement frameworks and reporting on development outcomes
of strategic investments, consistent with sections 1442 and
1443;
``(E) work with other relevant Federal departments and
agencies to identify projects that advance United States
national security priorities, including by complementing
United States domestic investments in critical and emerging
technologies;
``(F) manage employees of the Corporation that are
dedicated to ensuring that the Corporation's activities
advance United States national security interests, including
through--
``(i) long-term strategic planning;
``(ii) issue and crisis management;
``(iii) the advancement of strategic initiatives; and
``(iv) strategic planning on how the Corporation's foreign
investments may complement United States domestic production
of critical and emerging technologies;
``(G) 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;
``(H) foster and maintain relationships both within and
external to the Corporation that enhance the capacity of the
Corporation to achieve its mission to advance United States
national security interests; and
``(I) collaborate with the Chief Development Officer to
ensure United States national security interests are
considered together with the Corporation's development
goals.''.

SEC. 1279. OFFICERS AND EMPLOYEES.

Section 1413(i) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(i)), as so
redesignated, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--Except as otherwise provided in this
section, officers, employees, and agents shall be selected
and appointed by, or under the authority of, the Chief
Executive Officer, and shall be vested with such powers and
duties as the Chief Executive Officer may determine.'';
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) by striking ``50'' and inserting ``70''; and
(ii) by inserting ``, and such positions shall be reserved
for individuals meeting the executive qualifications
established by the Corporation's qualification review board''
after ``United States Code''; and
(B) in subparagraph (D), by inserting ``, provided that no
such officer or employee may be compensated at a rate
exceeding level II of the Executive Schedule'' after
``respectively''; and
(3) in paragraph (3)(C) by striking ``subsection (i)'' and
inserting ``subsection (j)''.

SEC. 1280. DEVELOPMENT ADVISORY COUNCIL.

Section 1413(j) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9613(j)), as so
redesignated, is amended--
(1) by striking paragraph (1) and inserting the following:
``(1) In general.--There is established a Development
Advisory Council (in this subsection referred to as the
`Council') that shall advise the Board and the Congressional
Strategic Advisory Group established by subsection (k) on the
development priorities and objectives of the Corporation.'';
(2) by redesignating paragraph (4) as paragraph (6); and
(3) by inserting after paragraph (3) the following:
``(4) Board meetings.--The Board shall meet with the
Council at least twice each year and engage directly with the
Board on its recommendations to improve the policies and
practices of the Corporation to achieve the development
priorities and objectives of the Corporation.
``(5) Administration.--The Board shall--
``(A) prioritize maintaining the full membership and
composition of the Council;
``(B) inform the Committee on Foreign Relations of the
Senate and the Committee on Foreign Affairs of the House of
Representatives when a vacancy of the Council occurs,
including the date that the vacancy occurred; and
``(C) for any vacancy on the Council that remains for 60
days or more, submit a report to the Committee on Foreign
Relations of

[[Page S5458]]

the Senate and the Committee on Foreign Affairs of the House
of Representatives explaining why a vacancy is not being
filled and provide an update on progress made toward filling
such vacancy, including a reasonable estimation for when the
Board expects to have the vacancy filled.''.

SEC. 1281. STRATEGIC ADVISORY GROUP.

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 new subsection:
``(k) Congressional Strategic Advisory Group.--
``(1) Establishment.--Not later than 90 days after the
enactment of the DFC Modernization and Reauthorization Act of
2025, there shall be established a Congressional Strategic
Advisory Group (referred to in this subsection as the
`Group'), which shall meet not less frequently than annually,
including after the budget of the President submitted under
section 1105 of title 31, United States Code, for a fiscal
year.
``(2) Composition.--The Group shall be composed of the
following:
``(A) The Chief Executive Officer.
``(B) The Chief Development Officer.
``(C) The Chief Strategic Investment Officer.
``(D) The Strategic Advisors of the Senate, as described in
paragraph (3)(A).
``(E) The Strategic Advisors of the House of
Representatives, as described in paragraph (3)(B).
``(3) Strategic advisors of the senate and the house of
representatives.--
``(A) Strategic advisors of the senate.--
``(i) Establishment.--There is established a group to be
known as the `Strategic Advisors of the Senate'.
``(ii) Composition.--The group established by clause (i)
shall be composed of the following:

``(I) The chair of the Committee on Foreign Relations of
the Senate, who shall serve as chair of the Strategic
Advisors of the Senate.
``(II) The ranking member of the Committee on Foreign
Relations of the Senate, who shall serve as vice-chair of the
Strategic Advisors of the Senate.
``(III) Not more than 6 additional individuals who are
members of the Committee on Foreign Relations of the Senate,
designated by the chair, with the consent of the ranking
member.

``(B) Strategic advisors of the house of representatives.--
``(i) Establishment.--There is established a group to be
known as the `Strategic Advisors of the House of
Representatives'.
``(ii) Composition.--The group established by clause (i)
shall be composed of the following:

``(I) The chair of the Committee on Foreign Affairs of the
House of Representatives, who shall serve as chair of the
Strategic Advisors of the House.
``(II) The ranking member of the Committee on Foreign
Affairs of the House of Representatives, who shall serve as
vice-chair of the Strategic Advisors of the House.
``(III) Not more than 6 additional individuals who are
members of the Committee on Foreign Affairs of the House of
Representatives, designated by the chair, with the consent of
the ranking member.

``(4) Objectives.--The Chief Executive Officer, the Chief
Development Officer, and the Chief Strategic Investment
Officer of the Corporation shall consult with the Strategic
Advisors of the Senate and the Strategic Advisors of the
House of Representatives established under paragraph (3) in
order to solicit and receive congressional views and advice
on the strategic priorities and investments of the
Corporation, including--
``(A) the challenges presented by adversary countries to
the national security interests of the United States and
strategic objectives of the Corporation's investments;
``(B) priority regions, countries, and sectors that require
focused consideration for strategic investment;
``(C) the priorities and trends pursued by similarly-
situated development finance institutions of friendly
nations, including opportunities for partnerships,
complementarity, or co-investment;
``(D) evolving methods of financing projects, including
efforts to partner with public sector and private sector
institutional investors;
``(E) institutional or policy changes required to improve
efficiencies within the Corporation; and
``(F) potential legislative changes required to improve the
Corporation's performance in meeting strategic and
development imperatives.
``(5) Meetings.--
``(A) Times.--The chair and the vice-chair of the Strategic
Advisors of the Senate and the chair and the vice-chair of
the Strategic Advisors of the House of Representatives shall
determine the meeting times of the Group, which may be
arranged separately or on a bicameral basis by agreement.
``(B) Agenda.--Not later than 7 days before each meeting of
the Group, the Chief Executive Officer shall submit a
proposed agenda for discussion to the chair and the vice-
chair of each strategic advisory group referred to in
subparagraph (A).
``(C) Questions.--To ensure a robust flow of information,
members of the Group may submit questions for consideration
before any meeting. A question submitted orally or in writing
shall receive a response not later than 15 days after the
conclusion of the first meeting convened wherein such
question was asked or submitted in writing.
``(D) Classified setting.--At the request of the Chief
Executive Officer or the chair and vice-chair of a strategic
advisory group established under paragraph (3), business of
the Group may be conducted in a classified setting, including
for the purpose of protecting business confidential
information and to discuss sensitive information with respect
to foreign competitors.''.

SEC. 1282. BIENNIAL STRATEGIC PRIORITIES PLAN.

(a) In General.--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 new
subsection:
``(l) Biennial Strategic Priorities Plan.--
``(1) Plan required.--Based upon guidance received from the
Group established pursuant to section 1413(k), the Chief
Executive Officer shall develop a Biennial Strategic
Priorities Plan, which shall provide--
``(A) guidance for the Corporation's strategic investments
portfolio and the identification and engagement of priority
strategic investment sectors and regions of importance to the
United States; and
``(B) justifications for the certifications of such
investments in accordance with section 1412(c).
``(2) Evaluations.--The Biennial Strategic Priorities Plan
should determine the objectives and goals of the
Corporation's strategic investment portfolio by evaluating
economic, security, and geopolitical dynamics affecting
United States strategic interests, including--
``(A) determining priority countries, regions, sectors, and
related administrative actions;
``(B) plans for the establishment of regional offices
outside of the United States;
``(C) identifying countries where the Corporation's
support--
``(i) is necessary;
``(ii) would be the preferred alternative to state-directed
investments by foreign countries of concern; or
``(iii) otherwise furthers the strategic interests of the
United States to counter or limit the influence of foreign
countries of concern;
``(D) evaluating the interest and willingness of potential
private finance institutions and private sector project
implementers to partner with the Corporation on strategic
investment projects; and
``(E) identifying bilateral and multilateral project
finance partnership opportunities for the Corporation to
pursue with United States partner and ally countries.
``(3) Revisions.--At any time during the relevant biennial
period, the Chief Executive Officer may request to convene a
meeting of the Congressional Strategic Advisory Group for the
purpose of discussing revisions to the Biennial Strategic
Priorities Plan.
``(4) Transparency.--The Chief Executive Officer shall
publish, on a website of the Corporation--
``(A) descriptions of entities that may be eligible to
apply for support from the Corporation;
``(B) procedures for applying for products offered by the
Corporation; and
``(C) any other appropriate guidelines and compliance
restrictions with respect to designated strategic
priorities.''.
(b) Sense of Congress.--It is the sense of the Congress
that the Corporation, during the 2-year period beginning on
October 1, 2025, should consider--
(1) advancing secure supply chains to meet the critical
minerals needs of the United States and its allies and
partners;
(2) making investments to promote and secure the
telecommunications sector, particularly undersea cables; and
(3) establishing, maintaining, and supporting regional
offices outside the United States for the purpose of
identifying and supporting priority investment opportunities.

SEC. 1283. INDEPENDENT ACCOUNTABILITY MECHANISM.

Section 1415 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9614) is
amended--
(1) in subsection (a), by inserting ``and maintain the
operation of'' after ``establish'';
(2) in subsection (b)--
(A) by striking paragraph (2) and inserting the following:
``(2) provide a public forum and process for hearing and
resolving concerns regarding the impacts of specific
Corporation-supported projects with respect to the standards
detailed in paragraph (1) of this subsection;''; and
(B) by striking paragraph (3) and inserting the following:
``(3) provide advice to the Board regarding Corporation
policies and practices''; and
(3) by adding at the end the following new subsections:
``(c) Staffing and Budget.--
``(1) In general.--The independent accountability mechanism
should have at least 4 full-time staff, the ability to hire
independent consultants, and maintain an independent budget.
``(2) Report.--Not later than 90 days after the date of the
enactment of the DFC Modernization and Reauthorization Act of
2025, the Corporation shall submit to Congress a report
detailing the staffing plan, budget, and the account that
will provide funds.
``(d) Reporting.--The Corporation shall provide regular
explanations and updates on the implementation of this
section in the Corporation's annual report.''.

[[Page S5459]]

PART III--AUTHORITIES RELATING TO PROVISION OF SUPPORT

SEC. 1284. LENDING AND GUARANTEES.

Section 1421(b) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9621(b)), is
amended--
(1) by redesignating paragraph (3) as paragraph (4); and
(2) by inserting after paragraph (2) the following:
``(3) Foreign financial institutions.--For loans and
guaranties issued under paragraph (1) that are made to
private foreign finance institutions the Corporation shall--
``(A) prioritize partnerships with small and medium sized
lending institutions that specialize in providing financial
services to small and medium sized enterprises, or financial
services for underserved or marginalized communities; and
``(B) for any loans, guaranties, or partnership deals with
private finance institutions that hold or manage assets and
capital that exceeds $2,000,000,000, include in any report
required under section 1446 a justification for such
transaction.''.

SEC. 1285. EQUITY INVESTMENT.

(a) Corporate Equity Investment Fund.--Section 1421(c) of
the Better Utilization of Investments Leading to Development
Act of 2018 (22 U.S.C. 9621(c)), is amended by adding at the
end the following new paragraph:
``(7) Corporate equity investment fund.--
``(A) Establishment.--There is established in the Treasury
of the United States a fund to be known as the `Development
Finance Corporate Equity Investment Fund' (referred to in
this division as the `Fund'), which shall be administered by
the Corporation as a revolving account to carry out the
purposes of this section.
``(B) Authorization of appropriations.--There is authorized
to be appropriated to the Fund $3,000,000,000 for fiscal
years 2026 through 2030.
``(C) Offsetting collections and funds.--Subject to the
availability of appropriations, discretionary offsetting
collections derived from the earnings and proceeds from the
sale or redemption of, and fees, credits, and other
collections from, the equity investments of the Corporation
shall be retained and deposited into the Fund and shall
remain available to carry out this subsection without fiscal
year limitation.
``(D) Nature of the fund.--Earnings and other amounts
deposited into the Fund shall remain available for purposes
of section 1421(c) until expended.''.
(b) Guidelines and Criteria.--Section 1421(c)(3) of the
Better Utilization of Investments Leading to Development Act
of 2018 (22 U.S.C. 9621(c)(3)), is amended--
(1) in subparagraph (C) by inserting ``, localized
workforces, and partner country economic security'' after
``markets''; and
(2) by adding at the end the following new subparagraph:
``(G) The support provides additional finance for, or to
minimize risk of, a project or fund and does not supplant or
replace private capital or support economically unsound
ventures.''.

SEC. 1286. PROJECT DEVELOPMENT GRANTS.

Section 1421(e) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9621(e)) is
amended by adding at the end the following:
``(3) Project development grants.--
``(A) In general.--The Corporation is authorized to provide
to small borrowers legal, technical, and other forms of
predevelopment funding assistance in the form of grants of up
to $1,000,000 per project for the purpose of facilitating
predevelopment activities.
``(B) Definitions.--In this paragraph, the term
`predevelopment activity' means an activity that provides an
opportunity to identify and assess potential projects and
modifications to existing projects, and to advance such
projects from the conceptual phase to actual construction,
including--
``(i) project planning, feasibility studies, economic
assessments, cost-benefit analyses, public benefit studies,
and value-for-money analyses;
``(ii) design and engineering;
``(iii) financial planning, including the identification of
funding and financing options;
``(iv) permitting, environmental review, and regulatory
processes; and
``(v) other expenses directly related to project
development and exploration under such regulations and
guidance as the Corporation may establish.''.

SEC. 1287. SPECIAL PROJECTS.

Section 1421(f) of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9621(f)) is
amended--
(1) by striking ``The Corporation'' and inserting the
following:
``(1) In general.--The Corporation''; and
(2) by adding at the end the following new paragraph:
``(2) Notification.--Not later than 15 days prior to
exercising the authority under paragraph (1), the Chief
Executive Officer shall submit to the appropriate
congressional committees a notification describing the need
to exercise special authorities under this subsection.''.

SEC. 1288. 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 new subsection:
``(j) Subordination.--
``(1) In general.--Any loan or loan guaranty made by the
Corporation should be provided on a senior basis or pari
passu with other senior debt unless there is a substantive
policy rationale to provide such support otherwise. Such a
substantive policy rationale may include--
``(A) providing support for a project that includes support
from international financial institutions or another foreign
government-sponsored development finance institution;
``(B) doing so would facilitate greater private sector
participation in the project; and
``(C) doing so would substantially further the
Corporation's development objectives in the project.
``(2) Notification.--If the Corporation accepts a creditor
status that is subordinate to that of other creditors with
respect to a project, the Corporation shall include in any
report required to be submitted in accordance with section
1446 in connection with such project--
``(A) the amount of each such financial commitment;
``(B) an identification of the recipient or beneficiary;
``(C) a description of the project, activity, or asset and
the development goal or purpose to be achieved by providing
support by the Corporation; and
``(D) the substantive policy rationale for accepting a
subordinate status.''.

SEC. 1289. STREAMLINED REVIEW PROCESSES.

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 new subsection:
``(k) Project Environmental Reviews.--The Corporation shall
explore opportunities to accept environmental impact
assessments that meet the Corporation's criteria, processes,
and standards for project selection of the Corporation from
other vetted multilateral development institutions (as that
term is defined in section 1701(c) of the International
Financial Institutions Act (22 U.S.C. 262r(c)).''.

SEC. 1290. TERMS AND CONDITIONS.

Section 1422 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9622) is
amended--
(1) in subsection (b), by striking paragraph (3) and
inserting the following:
``(3) The Corporation shall, with respect to providing any
loan guaranty to a project, require the borrower or other
beneficiary of the guaranty to bear a risk of loss on the
project in an amount equal to at least 20 percent of the
amount of such guaranty. The Corporation may guarantee up to
100 percent of the amount of a loan, provided that risk of
loss in the project borne by the borrower or other
beneficiary of the guaranty is equal to at least 20 percent
of the guaranty amount.''; and
(2) by adding at the end the following new subsection:
``(c) Best Practices To Prevent Usurious or Abusive Lending
by Intermediaries.--
``(1) The Corporation shall ensure that terms, conditions,
penalties, rules for collections practices, and other finance
administration policies that govern Corporation-backed
lending, guarantees and other financial instruments through
intermediaries are consistent with industry best practices
and the Corporation's rules with respect to direct lending to
its clients.
``(2) The Corporation shall develop required truth in
lending rules, guidelines, and related implementing policies
and practices to govern secondary lending through
intermediaries and shall report such policies and practices
to the appropriate committees not later than 180 days of
enactment of the DFC Modernization and Reauthorization Act of
2025, with annual updates, as needed, thereafter.
``(3) In developing such policies and practices required by
paragraph (2), the Corporation shall--
``(A) take into account any particular vulnerabilities
faced by potential applicants or recipients of micro-lending
and other forms of micro-finance;
``(B) develop and apply, generally, rules and terms to
ensure Corporation-backed lending through an intermediary
does not carry excessively punitive or disproportionate
penalties for customers in default;
``(C) ensure that such policies and practices include
effective safeguards to prevent usurious or abusive lending
by intermediaries, including in the provision of
microfinance; and
``(D) ensure the intermediary includes in any lending
contract an appropriate level of financial literacy to the
borrower, including--
``(i) disclosures that fully explain to the customer both
lender and customer rights and obligations under the contract
in language that is accessible to the customer;
``(ii) the specific loan terms and tenure of the contract;
``(iii) any procedures and potential penalties or
forfeitures in case of default;
``(iv) information on privacy and personal data protection;
and
``(v) any other policies that the Corporation determines
will further the goal of an informed borrower.
``(4) The Corporation shall establish appropriate auditing
mechanisms to oversee and monitor secondary lending, provided
through intermediaries in partner countries, on not less than
an annual basis and shall include, in each annual report to
Congress required under paragraph (2), a summary of the
results of such audits.''.

[[Page S5460]]

SEC. 1291. 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 ``this Act'' and inserting ``the DFC
Modernization and Reauthorization Act of 2025''.

PART IV--OTHER MATTERS

SEC. 1292. OPERATIONS.

Section 1431 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9631) is
amended by adding at the end the following new subsection:
``(e) Sense of Congress.--It is the sense of Congress
that--
``(1) the Corporation is obligated to consult with and
collect input from current employees, on plans to
substantially reorganize the Corporation prior to
implementation of such plan; and
``(2) the Corporation should consider preference,
experience and, when relevant, seniority, when reassigning
existing employees to new areas of work.''.

SEC. 1293. CORPORATE POWERS.

Section 1432(a)(10) of the Better Utilization of
Investments Leading to Development Act of 2018 (22 U.S.C.
9632(a)(10)) is amended 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. 1294. MAXIMUM CONTINGENT LIABILITY.

Section 1433 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9633) is
amended to read as follows:

``SEC. 1433. MAXIMUM CONTINGENT LIABILITY.

``The maximum contingent liability of the Corporation
outstanding at any one time shall not exceed in the aggregate
$240,000,000,000.''.

SEC. 1295. 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 inserting ``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'' and
inserting a semicolon;
(ii) in subparagraph (C), by striking the period at the end
and inserting a semicolon; and
(iii) by adding at the end the following new subparagraph:
``(D) project-specific transaction costs.'';
(2) in subsection (h), by inserting ``except earnings,
fees, credits, and other collections related to equity
investments from the Equity Investments Account,'' after
``equity investments,''; and
(3) in subsection (k)--
(A) in paragraph (1), by inserting ``other direct costs
associated with origination or monitoring services, including
seminars, conferences, and other pre-investment services,''
after ``legal expenses,''; and
(B) in paragraph (2), by striking ``does not include'' and
inserting ``includes''.

SEC. 1296. PERFORMANCE MEASURES, EVALUATION, AND LEARNING.

Section 1442 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9652) is
amended--
(1) in subsection (b)--
(A) in paragraph (1), by striking the semicolon at the end
and inserting the following: ``to be known as the
Corporation's Impact Quotient, which shall--
``(A) serve as a metrics-based measurement system to assess
a project's expected outcomes and development impact on a
country, a region, and populations throughout the sourcing,
origination, management, monitoring, and evaluation stages of
a project's lifecycle;
``(B) enable the Corporation to assess development impact
at both the project and portfolio level;
``(C) assess project compliance with the Corporation's
environmental and social standards;
``(D) provide guidance on when to take appropriate
corrective measures to further development goals throughout a
project's lifecycle; and
``(E) inform congressional notification requirements
outlining the Corporation's project development impacts;'';
(B) in paragraph (3), by striking ``; and'' and inserting a
semicolon;
(C) in paragraph (4)--
(i) in the matter preceding subparagraph (A), by striking
``method for ensuring, appropriate development performance''
and inserting ``method for evaluating and ensuring the
development outcomes''; and
(ii) in subparagraph (B), by striking the period at the end
and inserting ``; and''; and
(D) by adding at the end the following:
``(5) develop standards for, and a method for ensuring,
appropriate monitoring of the Corporation's portfolio,
including a requirement that employees or agents of the
Corporation conduct an in-person site visit of each high-risk
loan, loan guarantee, and equity project at least once in the
project's lifecycle after the initial disbursement of
funds.'';
(2) by redesignating subsections (c) and (d) as subsections
(d) and (e), respectively;
(3) by inserting the following after subsection (b):
``(c) Required Performance Measures Update for
Congressional Strategic Advisory Group.--At any meeting of
the Congressional Strategic Advisory Group, the Corporation
shall be prepared discuss the standards developed in
subsection (b) for all ongoing projects.''; and
(4) by inserting at the end the following:
``(f) Staffing for Portfolio Oversight and Reporting.--
``(1) Requirement to maintain capacity.--The Corporation
shall maintain an adequate number of full-time personnel with
appropriate expertise to fulfill its obligations under this
section and section 1443, including--
``(A) monitoring and evaluating the financial performance
of the Corporation's portfolio;
``(B) evaluating the development and strategic impact of
investments throughout the program lifecycle;
``(C) preparing required annual reporting on the
Corporation's portfolio of investments, including the
information set forth in section 1443(a)(6); and
``(D) monitoring for compliance with all applicable laws
and ethics requirements.
``(2) Qualifications.--Personnel assigned to carry out the
obligations described in paragraph (1) shall possess
demonstrable professional experience in relevant areas, such
as development finance, financial analysis, investment
portfolio management, monitoring and evaluation, impact
measurement, or legal and ethics expertise.
``(3) Organizational structure.--The Corporation shall
maintain such personnel within 1 or more dedicated units or
offices, which shall--
``(A) be functionally independent from investment
origination teams;
``(B) be managed by senior staff who report to the Chief
Executive Officer or Chief Operating Officer; and
``(C) be allocated resources sufficient to fulfill the
Corporation's obligations under this section and to support
transparency and accountability to Congress and to the
public.
``(4) Insulation from reductions.--The Corporation may not
reduce the staffing, funding, or organizational independence
of the units or personnel responsible for fulfilling the
obligations under this section unless--
``(A) the Chief Executive Officer certifies in writing to
the appropriate congressional committees that such reductions
are necessary due to operational exigency, statutory change,
or budgetary shortfall; and
``(B) the Corporation includes in its annual report a
detailed explanation of the impact of any such changes on its
capacity to analyze and report on portfolio performance.''.

SEC. 1297. ANNUAL REPORT.

Section 1443 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9653) is
amended--
(1) in subsection (a)--
(A) in paragraph (3), by striking ``; and'' and inserting a
semicolon;
(B) in paragraph (4), by striking the period at the end and
inserting a semicolon; and
(C) by inserting at the end the following:
``(5) the United States strategic, foreign policy, and
development objectives advanced through projects supported by
the Corporation; and
``(6) the health of the Corporation's portfolio, including
an annual overview of funds committed, funds disbursed,
default and recovery rates, capital mobilized, equity
investments' year on year returns, and any difference between
how investments were modeled at commitment and how they
ultimately performed; to include a narrative explanation
explaining any changes.''; and
(2) in subsection (b)--
(A) in paragraph (1), by striking subparagraphs (A) and (B)
and inserting the following:
``(A) the desired development and strategic outcomes for
projects, including the ratio of development impact achieved
to dollars disbursed, and whether or not the Corporation is
meeting the associated metrics, goals, and development
objectives, including, to the extent practicable, in the
years after conclusion of projects;
``(B) whether the Corporation's support for projects that
focus on achieving strategic outcomes are achieving such
strategic objectives of such investments over the duration of
the support and lasting after the Corporation's support is
completed;
``(C) the value of private sector assets brought to bear
relative to the amount of support provided by the Corporation
and the value of any other public sector support;
``(D) the total private capital projected to be mobilized
by projects supported by the Corporation during that year,
including an analysis of the lenders and investors involved
and investment instruments used;
``(E) the total private capital actually mobilized by
projects supported by the Corporation that were fully funded
by the end of that year, including--
``(i) an analysis of the lenders and investors involved and
investment instruments used; and
``(ii) a comparison with the private capital projected to
be mobilized for the projects described in this paragraph;
``(F) a breakdown of--
``(i) the amount and percentage of Corporation support
provided to less developed countries, advancing income
countries, and high-income countries in the previous fiscal
year; and

[[Page S5461]]

``(ii) the amount and percentage of Corporation support
provided to less developed countries, advancing income
countries and high-income countries averaged over the last 5
fiscal years;
``(G) a breakdown of the aggregate amounts and percentage
of the maximum contingent liability of the Corporation
authorized to be outstanding pursuant to section 1433 in less
developed countries, advancing income countries, and high-
income countries;
``(H) the risk appetite of the Corporation to undertake
projects in less developed countries and in sectors that are
critical to development but less likely to deliver
substantial financial returns; and
``(I) efforts by the Chief Executive Officer to incentivize
calculated risk-taking by transaction teams, including
through the conduct of development performance reviews and
provision of development performance rewards;'';
(B) in paragraph (3)(B), by striking ``; and'' and
inserting a semicolon;
(C) by redesignating paragraph (4) as paragraph (5); and
(D) by inserting after paragraph (3) the following:
``(4) to the extent practicable, recommendations for
measures that could enhance the strategic goals of projects
to adapt to changing circumstances; and''.

SEC. 1298. PUBLICLY AVAILABLE PROJECT INFORMATION.

Section 1444 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9654) is
amended in paragraph (1) to read as follows:
``(1) maintain a user-friendly, publicly available,
machine-readable database with detailed project-level
information, as appropriate and to the extent practicable,
including a description of the support provided by the
Corporation under title II, which shall include, to the
greatest extent feasible for each project--
``(A) the information included in the report to Congress
under section 1443;
``(B) project-level performance metrics; and
``(C) a description of the development impact of the
project, including anticipated impact prior to initiation of
the project and assessed impact during and after the
completion of the project; and''.

SEC. 1299. NOTIFICATIONS TO BE PROVIDED BY THE CORPORATION.

Section 1446 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9656) is
amended--
(1) in subsection (b)--
(A) in paragraph (2), by striking ``; and'' and inserting a
semicolon;
(B) in paragraph (3)--
(i) by inserting ``the Corporation's impact quotient
outlining'' after ``asset and''; and
(ii) by striking the period at the end and inserting ``;
and''; and
(C) by adding at the end the following:
``(4)(A) information relating to whether the Corporation
has accepted a creditor status that is subordinate to that of
other creditors in the project, activity, or asset; and
``(B) for all projects, activities, or assets that the
Corporation has accepted a creditor status that is
subordinate to that of other creditors the Corporation shall
include a description of the substantive policy rationale
required by section 1422(b)(12) that influenced the decision
to accept such a creditor status.''; and
(2) by adding at the end the following new subsection:
``(d) Equity Investments.--For every equity investment
above $10,000,000 that the Corporation enters into, the
Corporation shall submit to Congress a notification that
includes--
``(1) the information required by section (b); and
``(2) a plan for how the Corporation plans to use any Board
seat the Corporation is entitled to as a result of such
equity investment, including any individual the Corporation
plans to appoint to the Board and how the Corporations plans
to use such Board seat to further United States strategic
goals.''.

SEC. 1299A. LIMITATIONS AND PREFERENCES.

Section 1451 of the Better Utilization of Investments
Leading to Development Act of 2018 (22 U.S.C. 9661) is
amended--
(1) in subsection (a), by striking ``5 percent'' and
inserting ``2.5 percent''; and
(2) by adding at the end the following:
``(j) Policies With Respect to State-owned Enterprises,
Anticompetitive Practices, and Countries of Concern.--
``(1) Policy.--The Corporation shall develop appropriate
policies and guidelines for support provided under title II
for a project involving a state-owned enterprise, sovereign
wealth fund, or a parastatal entity to ensure such support is
provided consistent with appropriate principles and practices
of competitive neutrality.
``(2) Prohibitions.--
``(A) Anticompetitive practices.--The Corporation may not
provide support under title II for a project that involves a
private sector entity engaged in anticompetitive practices.
``(B) Countries of concern.--The Corporation may not
provide support under title II for projects--
``(i) that involve partnerships with the government of a
country of concern or a state-owned enterprise that belongs
to or is under the control of a country of concern; or
``(ii) that would be operated, managed, or controlled by
the government of a county of concern or a state-owned
enterprise that belongs to or is under the control of a
country of concern.
``(3) Definitions.--In this subsection:
``(A) State-owned enterprise.--The term `state-owned
enterprise' means any enterprise established for a commercial
or business purpose that is directly owned or controlled by
one or more governments, including any agency,
instrumentality, subdivision, or other unit of government at
any level of jurisdiction.
``(B) Control.--The term `control', with respect to an
enterprise, means the power by any means to control the
enterprise regardless of--
``(i) the level of ownership; and
``(ii) whether or not the power is exercised.
``(C) Owned.--The term `owned', with respect to an
enterprise, means a majority or controlling interest, whether
by value or voting interest, of the shares of that
enterprise, including through fiduciaries, agents, or other
means.''.

SEC. 1299B. 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 repealed.
______