DFC Modernization Act of 2025
Sponsored By: Representative Rep. Mast, Brian J. [R-FL-21]
In Committee
Summary
Gives the U.S. International Development Finance Corporation more license to take financial risks to attract private capital for development and strategic needs. Title I also updates definitions by defining "high-income country" per the World Bank and adding a new category.
Show full summary
- People in partner and developing countries: more private investment targeted at infrastructure, critical and rare earth minerals, and energy projects that aim to build private markets and jobs.
- U.S. companies and investors: access to an expanded DFC toolbox. The bill authorizes equity, hybrid securities, mezzanine debt, creditor subordination, partial guarantees, first-loss coverage, insurance, and blended finance.
- U.S. national security and foreign policy planners: lets the DFC back higher-risk projects in strategic sectors and high-risk countries to counter competitors, diversify energy sources and supply routes, reduce dependence on coercible resources, and support exports of U.S. energy and technology. It also contemplates accepting losses at the investment or portfolio level when necessary.
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 1 benefits, 1 costs, 2 mixed.
More capital for U.S. development finance
If enacted, the agency could back many more deals. The cap on total exposure would rise to $250 billion. It could own up to 49% of a single investment, up from 30%. A new Equity Investments Account would keep earnings and fees available without yearly approval. The DFC could use its fees for deal costs like pre‑investment work and monitoring. Congress also says the DFC should take more risk using tools like equity, guarantees, insurance, and first‑loss coverage to attract private money.
Stricter limits on state‑backed and rich‑country projects
The DFC would not back projects with private partners that act anti‑competitively. It would be barred from projects run by, or tied to, governments or state‑owned firms from countries of concern. The DFC would set rules to keep support neutral when state‑owned or sovereign funds are involved. Support in high‑income countries would be limited unless the President certifies it serves U.S. economic or foreign policy interests. “High‑income” would follow the World Bank’s list.
Repeal of 2019 European energy law
If enacted, this would repeal the European Energy Security and Diversification Act of 2019. That would remove the law and any programs it authorized. Actual impacts would depend on how agencies respond after the repeal.
New leadership and oversight for U.S. development finance
The bill would reset leadership roles and the board. It would remove the Chief Development Officer, add a Vice Chair, and let the CEO pick officers and staff, with staff‑controlled slots rising from 50 to 100. It would change board composition and require a principal officer named by the President. Fewer deals would need notice to Congress by raising the threshold from $10 million to $100 million. The DFC’s current authority would run through December 31, 2031.
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Sponsors & CoSponsors
Sponsor
Rep. Mast, Brian J. [R-FL-21]
FL • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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