I 

118TH CONGRESS 

2D SESSION H. R. 8926 

To modify and reauthorize the Better Utilization of Investments Leading 

to Development Act of 2018. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 2, 2024 

Mr. MCCAUL (for himself and Mr. MEEKS) introduced the following bill; which 

was referred to the Committee on Foreign Affairs 

A BILL 

To modify and reauthorize the Better Utilization of 

Investments Leading to Development Act of 2018. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘DFC Modernization and Reauthorization Act of 2024’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Sense of Congress. 

TITLE I—DEFINITIONS AND LESS DEVELOPED COUNTRY FOCUS 

Sec. 101. Definitions. 

Sec. 102. Less developed country focus. 


ssavage on LAPJG3WLY3PROD with BILLS
2 

•HR 8926 IH

TITLE II—MANAGEMENT OF CORPORATION 

Sec. 201. Board of Directors. 

Sec. 202. Chief Risk Officer. 

Sec. 203. Chief Development Officer. 

Sec. 204. Pay comparability. 

Sec. 205. Office of Foreign Policy. 

TITLE III—AUTHORITIES RELATING TO PROVISION OF SUPPORT 

Sec. 301. Applicability of Federal Credit Reform Act of 1990. 

Sec. 302. Termination. 

TITLE IV—OTHER MATTERS 

Sec. 401. Corporate powers. 

Sec. 402. Maximum contingent liability. 

Sec. 403. Authorit To use portion of Corporation fees To update information 

technology systems. 

Sec. 404. Repeal of European Energy Security and Diversification Act of 2019. 

1 SEC. 2. SENSE OF CONGRESS. 

2 It is the sense of Congress that the United States 

3 International Development Finance Corporation should 

4 seek to responsibly increase its risk tolerance in invest5 ments to ensure that the Corporation is properly pursuing 

6 its statutory objectives of advancing developmental and 

7 national security goals, including— 

8 (1) by accepting a creditor status that is subor9 dinate to that of other creditors; 

10 (2) by guaranteeing loans up to 100 percent of 

11 principal as part of projects structured in compli12 ance with the Better Utilization of Investments 

13 Leading to Development Act of 2018; and 

14 (3) lending, investing, or offering insurance in 

15 high-risk countries, regions, or sectors as a means to 


ssavage on LAPJG3WLY3PROD with BILLS
3 

•HR 8926 IH

1 achieve its mission to mobilize capital in underserved 

2 markets or segments. 

3 TITLE I—DEFINITIONS AND LESS 

4 DEVELOPED COUNTRY FOCUS 

5 SEC. 101. DEFINITIONS. 

6 Section 1402 of the Better Utilization of Investments 

7 Leading to Development Act of 2018 (22 U.S.C. 9601) 

8 is amended— 

9 (1) by redesignating paragraphs (2), (3), and 

10 (4) as paragraphs (3), (4), and (5), respectively; 

11 (2) by inserting after paragraph (1) the fol12 lowing: 

13 ‘‘(2) HIGH-INCOME COUNTRY.—The term ‘high14 income country’— 

15 ‘‘(A) means a country with a high-income 

16 economy, as defined by International Bank for 

17 Reconstruction and Development and the Inter18 national Development Association (collectively 

19 referred to as the ‘World Bank’; but 

20 ‘‘(B) does not include a wealthy country.’’; 

21 (3) in paragraph (3) (as so redesignated) to 

22 read as follows: 

23 ‘‘(3) LESS DEVELOPED COUNTRY.—The term 

24 less developed country means, with respect to a fis25 cal year for the Corporation, a country the per capVerDate Sep 11 2014 20:54 Jul 02, 2024 Jkt 049200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H8926.IH H8926

ssavage on LAPJG3WLY3PROD with BILLS
4 

•HR 8926 IH

1 ita income of which at the start of such fiscal year 

2 is equal to or less than the then-current World Bank 

3 threshold for initiating the International Bank for 

4 Reconstruction and Development graduation proc5 ess.’’; and 

6 (4) in paragraph (5) (as so redesignated)— 

7 (A) in subparagraph (A), by striking ‘‘or’’ 

8 at the end; 

9 (B) in subparagraph (B), by striking the 

10 period at the end and inserting ‘‘; or’’; and 

11 (C) by adding at the end the following: 

12 ‘‘(C) any other similar institution that has 

13 a purpose that is similar to the purpose of the 

14 Corporation as described in section 1412(b).’’; 

15 and 

16 (5) by adding at the end the following: 

17 ‘‘(6) UPPER-MIDDLE-INCOME COUNTRY.—The 

18 term ‘‘upper-middle-income country’’ means, with re19 spect to a fiscal year for the Corporation, a country 

20 the per capita income of which at the start of such 

21 fiscal year is greater than the then-current World 

22 Bank threshold for initiating the International Bank 

23 for Reconstruction and Development graduation 

24 process, and is equal to or less than the per capita 


ssavage on LAPJG3WLY3PROD with BILLS
5 

•HR 8926 IH

1 income threshold defined as a high-income economy 

2 by the World Bank. 

3 ‘‘(7) WEALTHY COUNTRY.—The term ‘wealthy 

4 country’ means a country that is among the 40 

5 countries with the highest gross domestic product 

6 per capita at purchasing power parity as calculated 

7 by the World Bank.’’. 

8 SEC. 102. LESS DEVELOPED COUNTRY FOCUS. 

9 Section 1412 of the Better Utilization of Investments 

10 Leading to Development Act of 2018 (22 U.S.C. 9612) 

11 is amended by striking subsection (c) and inserting the 

12 following: 

13 ‘‘(c) LESS DEVELOPED COUNTRY FOCUS.— 

14 ‘‘(1) IN GENERAL.—The Corporation shall 

15 prioritize the provision of support under title II in 

16 less developed countries. 

17 ‘‘(2) UPPER-MIDDLE-INCOME AND HIGH-IN18 COME COUNTRIES.— 

19 ‘‘(A) UPPER-MIDDLE-INCOME COUN20 TRIES.—The Corporation may provide support 

21 under title II in an upper-middle-income coun22 try if, prior to providing the support, the Chief 

23 Executive Officer certifies in writing to the ap24 propriate congressional committees that such 

25 support— 


ssavage on LAPJG3WLY3PROD with BILLS
6 

•HR 8926 IH

1 ‘‘(i) is designed to produce significant 

2 developmental outcomes or provide devel3 opmental benefits to the poorest population 

4 of such country; and 

5 ‘‘(ii) furthers the national economic or 

6 foreign policy interests of the United 

7 States. 

8 ‘‘(B) HIGH-INCOME COUNTRIES.—The 

9 Corporation may provide support under title II 

10 in a high-income country, subject to following 

11 conditions: 

12 ‘‘(i) With respect to support for all 

13 projects in such countries, the aggregate 

14 amount of such support may not exceed 10 

15 percent of the maximum contingent liabil16 ity of the Corporation authorized to be 

17 outstanding pursuant to section 1433. 

18 ‘‘(ii) With respect to support for any 

19 single project in such a country— 

20 ‘‘(I) the Corporation shall seek to 

21 minimize its support to a level nec22 essary to achieve the development and 

23 foreign policy goals of the United 

24 States; 


ssavage on LAPJG3WLY3PROD with BILLS
7 

•HR 8926 IH

1 ‘‘(II) the Chief Executive Officer 

2 shall certify to the appropriate con3 gressional committees that the Cor4 poration has made all reasonable ef5 forts to ensure that— 

6 ‘‘(aa) the support is a pre7 ferred alternative to state-di8 rected investments by foreign 

9 countries of concern or otherwise 

10 furthers the strategic interest of 

11 the United States to counter or 

12 limit the influence of foreign 

13 countries of concern; 

14 ‘‘(bb) private sector entities 

15 have been afforded an oppor16 tunity to support the project on 

17 viable terms in lieu of support by 

18 the Corporation; and 

19 ‘‘(cc) the support is designed 

20 to produce significant develop21 mental outcomes or provide de22 velopmental benefits to the poor23 est population of such country. 

24 ‘‘(C) REPORT.—Not later than 120 days 

25 after the date of the enactment of this subVerDate Sep 11 2014 20:54 Jul 02, 2024 Jkt 049200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H8926.IH H8926

ssavage on LAPJG3WLY3PROD with BILLS
8 

•HR 8926 IH

1 section, and annually thereafter, the Corpora2 tion shall submit to the appropriate congres3 sional committees a list of all high-income coun4 tries in which the Corporation anticipates pro5 viding support in the subsequent fiscal year, 

6 and, to the extent practicable, a description of 

7 the type of projects anticipated. 

8 ‘‘(D) DEFINITION.—In this subsection, the 

9 term ‘foreign country of concern’ has the mean10 ing given that term in section 231.102 of title 

11 15, Code of Federal Regulations.’’. 

12 TITLE II—MANAGEMENT OF 

13 CORPORATION 

14 SEC. 201. BOARD OF DIRECTORS. 

15 Section 1413(b)(2)(A)(iii) of the Better Utilization of 

16 Investments Leading to Development Act of 2018 (22 

17 U.S.C. 9613(b)(2)(A)(iii)) is amended by striking ‘‘5 indi18 viduals’’ each place it appears and inserting ‘‘3 individ19 uals’’. 

20 SEC. 202. CHIEF RISK OFFICER. 

21 Section 1413(f)(1) of the Better Utilization of Invest22 ments Leading to Development Act of 2018 (22 U.S.C. 

23 9613(f)(1)) is amended— 


ssavage on LAPJG3WLY3PROD with BILLS
9 

•HR 8926 IH

1 (1) in the matter preceding subparagraph (A), 

2 by striking ‘‘who—’’ and inserting ‘‘who shall be re3 movable only by a majority vote of the Board.’’; and 

4 (2) by striking subparagraphs (A) and (B). 

5 SEC. 203. CHIEF DEVELOPMENT OFFICER. 

6 Section 1413(g) of the Better Utilization of Invest7 ments Leading to Development Act of 2018 (22 U.S.C. 

8 9613(g)) is amended— 

9 (1) in paragraph (1)— 

10 (A) in the matter preceding subparagraph 

11 (A), by striking ‘‘who—’’ and inserting ‘‘who 

12 shall be removable only by a majority vote of 

13 the Board.’’; and 

14 (B) by striking subparagraphs (A) and 

15 (B); and 

16 (2) in paragraph (2)(B), by striking ‘‘under the 

17 guidance of the Chief Executive Officer,’’. 

18 SEC. 204. PAY COMPARABILITY. 

19 Section 1413(h)(2) of the Better Utilization of In20 vestments Leading to Development Act of 2018 (22 

21 U.S.C. 9613(h)(2)) is amended— 

22 (1) in subparagraph (A), by striking ‘‘50’’ and 

23 inserting ‘‘100’’; and 

24 (2) in subparagraph (D)— 


ssavage on LAPJG3WLY3PROD with BILLS
10 

•HR 8926 IH

1 (A) by inserting ‘‘not to exceed 20 percent 

2 of its’’ before ‘‘officers and employees’’; and 

3 (B) by striking ‘‘appointed under subpara4 graph (A)’’. 

5 SEC. 205. VICE PRESIDENT FOR FOREIGN POLICY AND NA6 TIONAL SECURITY. 

7 Section 1413 of the Better Utilization of Investments 

8 Leading to Development Act of 2018 (22 U.S.C. 9613) 

9 is amended by adding at the end the following: 

10 ‘‘(j) VICE PRESIDENT FOR FOREIGN POLICY AND

11 NATIONAL SECURITY.— 

12 ‘‘(1) APPOINTMENT.—The Chief Executive Of13 ficer shall appoint a Vice President for Foreign Pol14 icy and National Security, from among individuals 

15 with experience in foreign policy or national security 

16 matters. 

17 ‘‘(2) DUTIES.—The Vice President shall— 

18 ‘‘(A) advise the Chief Executive Officer 

19 and Deputy Chief Executive Officer on foreign 

20 policy matters; 

21 ‘‘(B) in addition to the Chief Executive Of22 ficer and the Deputy Chief Executive Officer, 

23 represent the Corporation in the interagency 

24 national security and foreign planning process; 


ssavage on LAPJG3WLY3PROD with BILLS
11 

•HR 8926 IH

1 ‘‘(C) work with other relevant Federal 

2 agencies to identify projects that advance 

3 United States foreign policy interests; 

4 ‘‘(D) manage employees that are dedicated 

5 to ensuring that the Corporation’s activities ad6 vance United States foreign policy and national 

7 security interests and diplomatic strategy, in8 cluding through— 

9 ‘‘(i) long-term strategic planning; 

10 ‘‘(ii) issue and crisis management; 

11 and 

12 ‘‘(iii) the advancement of foreign pol13 icy initiatives; 

14 ‘‘(E) foster and maintain relationships 

15 within the Corporation and external to the Cor16 poration that increase the capacity of the Cor17 poration to achieve its mission to advance 

18 United States foreign policy and national secu19 rity interests; and 

20 ‘‘(F) coordinate within the Corporation to 

21 ensure United States foreign policy and na22 tional security interests are considered together 

23 with the Corporation’s development goals.’’. 


ssavage on LAPJG3WLY3PROD with BILLS
12 

•HR 8926 IH

1 TITLE III—AUTHORITIES RELAT2 ING TO PROVISION OF SUP3 PORT 

4 SEC. 301. APPLICABILITY OF FEDERAL CREDIT REFORM 

5 ACT OF 1990. 

6 Section 1421(c) of the Better Utilization of Invest7 ments Leading to Development Act of 2018 (22 U.S.C. 

8 9621(c)), as amended by this title, is further amended by 

9 adding at the end the following: 

10 ‘‘(8) APPLICABILITY OF FEDERAL CREDIT RE11 FORM ACT OF 1990.— 

12 ‘‘(A) IN GENERAL.—Subject to subpara13 graphs (B) and (C), support provided under 

14 paragraph (1) with respect to a project shall be 

15 subject to the Federal Credit Reform Act of 

16 1990 (2 U.S.C. 661 et seq.) for purposes of ap17 plying the requirements of such Act to such 

18 support. 

19 ‘‘(B) DETERMINATION OF COST.— 

20 ‘‘(i) IN GENERAL.—For purposes of 

21 section 502(5) of the Federal Credit Re22 form Act of 1990 (2 U.S.C. 661a(5)) the 

23 cost of support provided under paragraph 

24 (1) with respect to a project shall be the 

25 net present value, at the time when funds 


ssavage on LAPJG3WLY3PROD with BILLS
13 

•HR 8926 IH

1 are disbursed to provide the support, of the 

2 following estimated cash flows: 

3 ‘‘(I) The purchase price of the 

4 support. 

5 ‘‘(II) Dividends, redemptions, 

6 and other shareholder distributions 

7 during the term of the support. 

8 ‘‘(III) Proceeds received upon a 

9 sale, redemption, or other liquidation 

10 of the support. 

11 ‘‘(IV) Adjustments for risk of es12 timated losses, if any. 

13 ‘‘(ii) CHANGES IN TERMS IN14 CLUDED.—The estimated cash flows de15 scribed in subclauses (I) through (IV) of 

16 clause (i) shall include the effects of 

17 changes in terms resulting from the exer18 cise of options included in the agreement 

19 to provide the support. 

20 ‘‘(C) REESTIMATE OF COST.—When the 

21 estimated cost of support provided under para22 graph (1) with respect to a project made in a 

23 single fiscal year is reestimated in a subsequent 

24 year, the difference between the reestimated 

25 cost and the previous cost estimate shall be 


ssavage on LAPJG3WLY3PROD with BILLS
14 

•HR 8926 IH

1 paid from, or transferred to, the balances avail2 able in the Corporate Capital Account estab3 lished under section 1434.’’. 

4 SEC. 302. SUBORDINATION. 

5 Section 1421 of the Better Utilization of Investments 

6 Leading to Development Act of 2018 (22 U.S.C. 9621) 

7 is amended by adding at the end the following: 

8 ‘‘(j) SUBORDINATION.— 

9 ‘‘(1) IN GENERAL.—The Corporation may ac10 cept a creditor status that is subordinate to that of 

11 other creditors, if the Corporation— 

12 ‘‘(A) has determined that an acceptable 

13 level of risk of non-payment or under-payment 

14 has been established; and 

15 ‘‘(B) provides to the appropriate congres16 sional committees— 

17 ‘‘(i) notice of the determination of an 

18 acceptable level of risk of non-payment or 

19 under-payment; and 

20 ‘‘(ii) the information required by 

21 paragraph (2). 

22 ‘‘(2) INFORMATION REQUIRED.—The informa23 tion required by this paragraph includes— 

24 ‘‘(A) the amount of each such financial 

25 commitment; 


ssavage on LAPJG3WLY3PROD with BILLS
15 

•HR 8926 IH

1 ‘‘(B) an identification of the recipient or 

2 beneficiary; and 

3 ‘‘(C) a description of the project, activity, 

4 or asset and the development goal or purpose to 

5 be achieved by providing support by the Cor6 poration.’’. 

7 SEC. 303. TERMINATION. 

8 Section 1424(a) of the Better Utilization of Invest9 ments Leading to Development Act of 2018 (22 U.S.C. 

10 9624) is amended by striking ‘‘7 years after the date of 

11 the enactment of this Act’’ and inserting ‘‘7 years after 

12 the date of the enactment of the DFC Modernization and 

13 Reauthorization Act of 2024’’. 

14 TITLE IV—OTHER MATTERS 

15 SEC. 401. CORPORATE POWERS. 

16 Section 1432(a) of the Better Utilization of Invest17 ments Leading to Development Act of 2018 (22 U.S.C. 

18 9632(a)) is amended— 

19 (1) in paragraph (2), by striking ‘‘division C of 

20 subtitle I of’’; and 

21 (2) in paragraph (10), by striking ‘‘until the ex22 piration of the current lease under predecessor au23 thority, as of the day before the date of the enact24 ment of this Act’’. 


ssavage on LAPJG3WLY3PROD with BILLS
16 

•HR 8926 IH

1 SEC. 402. MAXIMUM CONTINGENT LIABILITY. 

2 Section 1433 of the Better Utilization of Investments 

3 Leading to Development Act of 2018 (22 U.S.C. 9633) 

4 is amended by striking ‘‘$60,000,000,000’’ and inserting 

5 ‘‘$120,000,000,000’’. 

6 SEC. 403. AUTHORITY TO USE PORTION OF CORPORATION 

7 FEES TO UPDATE INFORMATION TECH8 NOLOGY SYSTEMS. 

9 Section 1434 of the Better Utilization of Investments 

10 Leading to Development Act of 2018 (22 U.S.C. 9634) 

11 is amended— 

12 (1) in subsection (d)— 

13 (A) in paragraph (1)— 

14 (i) in subparagraph (B), by adding 

15 ‘‘and’’ at the end; 

16 (ii) in subparagraph (C), by striking 

17 the semicolon at the end and inserting a 

18 period; and 

19 (iii) by striking subparagraph (D); 

20 and 

21 (B) in paragraph (2)— 

22 (i) in subparagraph (B), by striking 

23 ‘‘and’’ at the end; 

24 (ii) in subparagraph (C), by striking 

25 the period at the end and inserting a semi26 colon; and 


ssavage on LAPJG3WLY3PROD with BILLS
17 

•HR 8926 IH

1 (iii) by adding at the end the fol2 lowing: 

3 ‘‘(D) project-specific transaction costs; and 

4 ‘‘(E) transfers and additions to such other 

5 accounts, funds, or reserves as the Corporation 

6 may establish, at such time and in such 

7 amounts as the Board may determine.’’; and 

8 (2) in subsection (k)— 

9 (A) in paragraph (1), by inserting ‘‘other 

10 direct costs associated with origination or moni11 toring services, including seminars, conferences, 

12 and other preinvestment services,’’ after ‘‘legal 

13 expenses,’’; and 

14 (B) in paragraph (2), by striking ‘‘does not 

15 include’’ and inserting ‘‘includes’’. 

16 SEC. 404. REPEAL OF EUROPEAN ENERGY SECURITY AND 

17 DIVERSIFICATION ACT OF 2019. 

18 The European Energy Security and Diversification 

19 Act of 2019 (title XX of division P of Public Law 116– 

20 94; 22 U.S.C. 9501 note) is hereby repealed. 

Æ 


ssavage on LAPJG3WLY3PROD with BILLS