# U.S. International Development Finance Corporation

The United States International Development Finance Corporation (DFC) is a development finance institution and agency of the United States federal government. DFC invests in development projects primarily in lower and middle-income countries. First authorized on 5 October 2018 by the BUILD Act, the independent agency was formed on December 20, 2019 by merging the Overseas Private Investment Corporation (OPIC) with the Development Credit Authority (DCA) of the United States Agency for International Development (USAID), as well as with several other smaller offices and funds.
DFC's lending capacity is used to provide loans, loan guarantees, direct equity investments, and political risk insurance for private-sector led development projects, feasibility studies, and technical assistance. DFC invests across several sectors including energy, healthcare, critical infrastructure, and technology, with stated priorities of women's empowerment, innovation, investment in West Africa and the Western Hemisphere, and climate change.

## History

U.S. development finance efforts were consolidated under the Overseas Private Investment Corporation (OPIC) in 1969 by President Richard Nixon, transferring responsibility from the United States Agency for International Development (USAID). The goal was to promote a more business-like management of development finance policy. In the 2010s, the Obama administration came to support a further consolidation of U.S. development finance in light of the increasing Chinese investment in the developing world (particularly through the Belt and Road Initiative).
The Trump administration originally opposed OPIC, and its proposed 2018 budget had called for the elimination of OPIC altogether, but advocacy by some administration officials, senators, and others convinced the White House to support the consolidation of OPIC and development finance efforts in line with the President's policy priorities. Relevant legislation — the Better Utilization of Investments Leading to Development (BUILD) Act — was introduced in Congress to establish the DFC shortly thereafter.

### The BUILD Act

The BUILD Act was introduced in the House and Senate in February 2018 with broad bipartisan support, based on proposals drafted by researchers at the Center for Global Development. It passed the Senate as a part of a bill to reauthorize the Federal Aviation Administration on a vote of 93–6 in early October 2018; it had already been passed in the House. It was signed into law by President Trump on October 5.
Concern over Chinese investment abroad and the inability for existing U.S. developmental finance institutions to keep up was a major factor pushing the passage of the Act, and the establishment of the DFC has widely been viewed as means to counter China, particularly its Belt and Road Initiative.
The Act aimed to ameliorate deficiencies in existing U.S. development finance policy, particularly restrictions on OPIC's actions. Compared to OPIC, the BUILD Act eases requirements of U.S. citizenship for parties to a given investment pursued by the DFC; allows the DFC to hold equity (rather than only make loans); allows the DFC to take on a greater risk burden than OPIC could for a given project; and allows the DFC to make loans in local currencies. DFC's total spending cap for its investments was also raised to $60 billion, compared to $29 billion for OPIC.

## Investments and priorities

DFC invests in sectors that include sanitation, infrastructure, healthcare, and food security. The DFC lists innovation, sustainable jobs, workers' protection, women's economic empowerment, and bolstering global supply chains as broader themes in its investment priorities. The DFC states that its investments aim to advance global development, U.S. foreign policy, and U.S. taxpayer interests.
Specific initiatives of the DFC include the 2X Women's Initiative, inherited from OPIC, that focuses on women-owned businesses and/or products and services designed to empower women. DFC has collaborated with USAID and other U.S. agencies in the Power Africa program, which has facilitated power sector deals across the continent, and the Prosper Africa Initiative, launched in 2018 with the goal of promoting U.S.-Africa investment and trade, countering Chinese influence.

### Response to COVID-19

On May 14, 2020, President Trump signed an Executive Order which delegates authority to the DFC Chief Executive Officer to make loans to private institutions to support the response to COVID-19 or strengthen relevant supply chains. Trump administration, through DFC, announced that it planned to give Kodak a $765 million loan for manufacturing ingredients used in pharmaceuticals, in order to rebuild the national stockpile depleted by the COVID-19 pandemic and reduce dependency on foreign factories. The funding was put on hold as the U.S. Securities and Exchange Commission began probing allegations of insider trading by Kodak executives ahead of the deal's announcement, and DFC's inspector general announced scrutiny into the loan terms. The agency received criticism for the loan deal. The agency has given millions of dollars to ApiJect Systems.

## Leadership

The most recent CEO, Scott Nathan, was nominated by the Biden-Harris Administration in September 2021 and was confirmed February 9, 2022.
| No. | CEO | Tenure |
| 1 | Adam S. Boehler | October 1, 2019 – January 20, 2021 |
| – | Dev Jagadesan (Acting) | January 20, 2021 – February 9, 2022 |
| 2 | Scott A. Nathan | February 9, 2022 – January 20, 2025 |
The position of deputy CEO was first filled in 2023 by Nisha Desai Biswal.
| No. | Deputy CEO | Tenure |
| 1 | Nisha Desai Biswal | August 14, 2023 – January 20, 2025 |

### Board of Directors

The board of directors is composed of nine members, four appointed by the president of the United States with the consent of the United States Senate and five ex officio members. The five ex officio members are the CEO of the DFC, the U.S. Secretary of State, the Administrator of the United States Agency for International Development, the U.S. Secretary of the Treasury, and the U.S. Secretary of Commerce. Apart from the CEO, these may be represented on the board by their designees. A designee must be from among officers who are appointed by the President, by and with the advice and consent of the Senate; whose duties relate to the programs of the Corporation; and who is designated by and serving at the pleasure of the President.
Of the four appointed members, one each shall be appointed from lists of at least five individuals submitted by the minority leader and Speaker, and minority and majority leader of the House of Representatives and Senate, respectively. In making their lists, they shall consult with their parties' leader on the Committee on Foreign Affairs and Committee on Foreign Relations, respectively. These members may not be an officer or employee of the U.S. government, and shall have relevant experience, which may include experience relating to the private sector, the environment, labor organizations, or international development.
These four serve terms of three years, and may be reappointed to one additional term. They may continue to serve after the expiration of each of their terms of office until a successor has been confirmed.
The Secretary of State, or their designee, serves as the chairperson of the board. The Administrator of USAID, or their designee, serves as the vice chairperson. A majority of the members of the board constitutes a quorum.

### Current board members

The current board members as of March 3, 2025:
| Position | Name | Party | Assumed office | Term expiration |
| Chair (ex officio) Secretary of State | Marco Rubio | Republican | January 21, 2025 | — |
| Vice chair (ex officio) Administrator of USAID | Marco Rubio | Republican | February 3, 2025 | — |
| Member (ex officio) CEO of the DFC | Vacant | | | |
| Member (ex officio) Secretary of the Treasury | Scott Bessent | Republican | January 28, 2025 | — |
| Member (ex officio) Secretary of Commerce | Howard Lutnick | Republican | February 21, 2025 | — |
| Member | Christopher P. Vincze | Republican | June 13, 2019 | December 17, 2019 |
| Member | Deven J. Parekh | Democratic | December 16, 2020 | December 16, 2023 |
| Member | Irving W. Bailey II | Republican | December 16, 2020 | December 16, 2023 |
| Member | Vacant | | | |

## Reception

Commentators have criticised the DFC's investments in upper-middle-income countries that are apparently intended to achieve U.S. foreign policy objectives other than international development, describing these investments as mission creep. Scott Morris of the Center for Global Development has criticised federal budget rules that require the DFC to treat equity investments as expenditures "with no offsetting allowance for [their] expected financial returns," unlike loans, which are budgeted based on their subsidy costs.