PRIA, Government Policy, Made Personal

Summary

Creates the United States International Development Finance Corporation as a government-owned agency in the executive branch. It must work under the Secretary of State on foreign policy. Its job is to bring private money and skills into the economic development of less developed countries, countries moving toward market economies, and other eligible foreign countries. It must consider a project’s financial sense and development goals when it decides to support it. The Corporation must focus on less developed countries. For projects in advancing-income or high-income countries, the CEO must give written certification to the relevant congressional committees before support. For high-income countries the CEO’s certification follows special rules, and the Corporation must send a report not later than 120 days after December 18, 2025, and every year after, listing high-income countries it expects to support and describing project types. The Corporation cannot back a project in a high-income country that is not on that list unless it notifies committees at least 15 days before commitment. The Board must use project-by-project policies to judge strategic value. Projects in advancing-income countries must meet three tests: serve U.S. national security or major economic competitiveness goals, produce real development for the poorest, and attract private capital. Projects in high-income countries must meet those tests, give private firms a chance to lead, limit Corporation support to 25% of a project, and keep total support under 10% of the Corporation’s authorized contingent liability (see section 9633). The Corporation may not support projects in a country of concern or a wealthy country except as allowed, with sector exceptions for energy, critical minerals/rare earths, and information and communications technology (including undersea cables). Congress expects the Corporation to stick to its core mission and not use its resources for unrelated domestic or other activities.

Title 22, §9612

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Establishment

There is established in the executive branch the United States International Development Finance Corporation (in this chapter referred to as the “Corporation”), which shall be a wholly owned Government corporation for purposes of chapter 91 of title 31 under the foreign policy guidance of the Secretary of State.

(b)Purpose

The purpose of the Corporation shall be to mobilize and facilitate the participation of private sector capital and skills in the economic development of less developed countries, as described in subsection (c), countries in transition from nonmarket to market economies, and other eligible foreign countries, in order to complement the development assistance objectives, and advance the foreign policy and national security interests, of the United States. In carrying out its purpose, the Corporation, utilizing broad criteria, shall take into account in its financing operations the economic and financial soundness and development objectives of projects for which it provides support under subchapter II of this chapter.

(c)Eligible countries

(1)Less developed country focus

The Corporation shall prioritize the provision of support under subchapter II of this chapter in less developed countries.

(2)Advancing income countries

The Corporation may provide support for a project under subchapter II of this chapter 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 9656 of this title.

(3)High-income countries

(A)In general

The Corporation may provide support for a project under subchapter II of this chapter 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 9656 of this title.

(B)Report

Not later than 120 days after December 18, 2025, and annually thereafter, the Corporation shall submit to the appropriate congressional committees a report, which may be submitted in classified or confidential 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 commitment, the Corporation consults with and 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 approved by the Corporation shall remain eligible for support notwithstanding any change in the income classification of the country.

(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 impacts 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 by the Corporation does not exceed 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 10 percent of the total contingent liability authorized by section 9633 of this title; and

(D)the Chief Executive Officer submit to the appropriate congressional committees a report, which may be submitted as an appendix to a report required by section 9656 of this title, 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— (1)

(2)a wealthy country, except to the extent permitted pursuant to subsection (f).

(f)Sectoral exceptions

Subject to the requirements in subsection (d)(3), the restriction in subsection (e)(2) shall not apply to projects in the following sectors:

(1)Energy.

(2)Critical minerals and rare earths.

(3)Information and communications technology, including undersea cables.

(g)Sense of Congress

It is the sense of Congress that—

(1)the Corporation should continuously operate in a manner that advances its core mission and purposes, as described in this title; and

(2)resources of the Corporation should not be diverted for domestic or other activities extending beyond the scope of such mission and purpose.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (a), was in the original “this division”, meaning division F of Pub. L. 115–254, Oct. 5, 2018, 132 Stat. 3485, which is classified principally to this chapter. For complete classification of division F to the Code, see

Short Title

note set out under section 9601 of this title and Tables.

Amendments

2025—Subsec. (b). Pub. L. 119–60, § 8712(1), substituted “countries in transition from nonmarket to market economies, and other eligible foreign countries” for “and countries in transition from nonmarket to market economies” and inserted “and national security” after “foreign policy”. Subsecs. (c) to (g). Pub. L. 119–60, § 8712(2), added subsecs. (c) to (g) and struck out former subsec. (c), which related to private support in less developed and upper-middle-income countries.

Executive Documents

Delegation of Authority Under the Better Utilization of Investments Leading to Development Act of 2018 Memorandum of President of the United States, July 7, 2020, 85 F.R. 45749, provided: Memorandum for the Secretary of State By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 301 of title 3, United States Code, I hereby delegate to the Secretary of State the authority vested in the President by section 1412(c)(2)(A) of the Better Utilization of Investments Leading to Development Act of 2018 (title I of division F of Public Law 115–254) (the “Act”) [22 U.S.C. 9612(c)(2)(A)] to certify to the appropriate congressional committees that the provision of support under title II of the Act [amending sections 9621 to 9624 of this title] in a less developed country with an upper-middle-income economy furthers the national economic or foreign policy interests of the United States. The delegation in this memorandum shall apply to any provision of any future public law that is the same or substantially the same as the provision referenced in this memorandum. You are authorized and directed to publish this memorandum in the Federal Register. Donald J. Trump.

§9612 United States International Development Finance Corporation