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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3005 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 3005

 To amend the Better Utilization of Investments Leading to Development 
 Act of 2018 to enhance the economic and strategic competitiveness of 
               the United States, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            October 3, 2023

 Mr. Coons (for himself and Mr. Cornyn) introduced the following bill; 
which was read twice and referred to the Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL

 
 To amend the Better Utilization of Investments Leading to Development 
 Act of 2018 to enhance the economic and strategic competitiveness of 
               the United States, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Enhancing American Competitiveness 
Act of 2023''.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Foreign Relations, the 
                Committee on Appropriations, and the Committee on the 
                Budget of the Senate; and
                    (B) the Committee on Foreign Affairs, the Committee 
                on Appropriations, and the Committee on the Budget of 
                the House of Representatives.
            (2) Corporation.--The term ``Corporation'' means the United 
        States International Development Finance Corporation.

SEC. 3. FINDINGS.

    Congress finds the following:
            (1) The mission of the Corporation is to mobilize 
        investment to advance global development, foreign policy 
        objectives of the United States, and taxpayer interests.
            (2) Congress established the Corporation to leverage 
        private sector capabilities and to serve as a robust 
        alternative to state-directed investments by authoritarian 
        governments and strategic competitors of the United States.
            (3) Congress authorized the Corporation--
                    (A) to provide equity financing in order to provide 
                the Corporation with greater flexibility to invest in 
                early- and growth-stage companies, partner with other 
                financial institutions, and enable investees to scale 
                operations more effectively to create greater impact on 
                developments;
                    (B) under section 1421(d) of the BUILD Act of 2018 
                (22 U.S.C. 9621(d))--
                            (i) to provide insurance and reinsurance of 
                        debt for the purposes of furthering United 
                        States foreign policy, development, and 
                        national security objectives; and
                            (ii) to insure debt investments;
                    (C) to collect insurance and reinsurance premiums 
                and pay insurance and reinsurance claims; and
                    (D) to make loans or guaranties upon such terms and 
                conditions as the Corporation may determine under 
                section 1421(b) of the BUILD Act of 2018 (22 U.S.C. 
                9621(b)) for the purposes of furthering foreign policy, 
                development, and national security objectives of the 
                United States.
            (4) Under section 1422(b)(3) of that Act (22 U.S.C. 
        9621(b)(3)), Congress limited the authority described in 
        paragraph (3)(D) by requiring that for any loan or guaranty to 
        a project, the parties to the project bear the risk of loss in 
        an amount equal to at least 20 percent of the guaranteed 
        support by the Corporation in the project.
            (5) Congress authorized the Corporation to guaranty 100 
        percent of an obligation, including a loan, a bond issuance, or 
        a tranche of any such loan or bond in which other parties to 
        the project bear the risk of loss in an amount equal to at 
        least 20 percent of the guaranteed support by the Corporation 
        in the project.
            (6) Obstacles to the implementation of the authorities 
        described in paragraph (3) have constrained the ability of the 
        Corporation to leverage its full capacity to enhance the 
        economic and strategic competitiveness of the United States and 
        to cooperate effectively with foreign partners and the private 
        sector.

SEC. 4. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) the proper budgetary treatment of the insurance and 
        reinsurance authorities of the Corporation, including insurance 
        and reinsurance of debt, is not subject to budgetary treatment 
        under the requirements of Federal Credit Reform Act of 1990 (2 
        U.S.C. 661 et seq.); and
            (2) guaranties provided by the Corporation in excess of 80 
        percent of an obligation are exempt from applicable provisions 
        of the Office of Management and Budget Circular A-129.

SEC. 5. MODIFICATION OF ELIGIBILITY DEFINITIONS.

    The Build Act of 2018 (22 U.S.C. 9601 et seq.) is amended--
            (1) in section 1402--
                    (A) by redesignating paragraphs (2), (3), and (4) 
                as paragraphs (3), (4), and (5), respectively; and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Fragile and conflict-affected state.--The term 
        `fragile and conflict-affected state' means a country that--
                    ``(A) is on the List of Fragile and Conflict-
                affected Situations maintained by the Fragility, 
                Conflict and Violence Group of the World Bank; or
                    ``(B) the Corporation, after consultation with the 
                Secretary of State and the Administrator of the United 
                States Agency for International Development, designates 
                as fragile or conflict-affected.''; and
            (2) in section 1412(c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Eligible countries.--The Corporation may provide 
        support under title II in a country that is--
                    ``(A) eligible to receive development lending from 
                the World Bank; and
                    ``(B) a fragile and conflict-affected state.''.

SEC. 6. BUDGETARY TREATMENT OF EQUITY INVESTMENTS BY THE CORPORATION.

    Section 1421(c) of the BUILD Act of 2018 (22 U.S.C. 9521 (c)) is 
amended by adding at the end the following:
            ``(7) Present value of equity account.--There is 
        established as a subaccount within the Corporate Capital 
        Account a fund to be known as the `Corporate Equity Account' to 
        carry out this subsection.
            ``(8) Budgetary treatment of equity investments.--
                    ``(A) Calculation of the costs of investment.--
                            ``(i) In general.--The cost of support 
                        provided under paragraph (1) with respect to a 
                        project shall be the net present value, at the 
                        time when funds are disbursed to provide the 
                        support, excluding administrative costs and any 
                        incidental effects on governmental receipts or 
                        outlays, of the following estimated cash flows:
                                    ``(I) The purchase price of the 
                                investment.
                                    ``(II) Dividends, redemptions, and 
                                other shareholder distributions during 
                                the term of the support.
                                    ``(III) Proceeds received upon a 
                                sale, redemption, or other liquidation 
                                of the investment.
                                    ``(IV) Foreign currency 
                                fluctuations, for support denominated 
                                in foreign currencies.
                                    ``(V) Any other relevant cashflow.
                            ``(ii) Changes in terms included.--The 
                        estimated cash flows described in subclauses 
                        (I) through (V) of clause (i) shall include the 
                        effects of changes in terms resulting from the 
                        exercise of options included in the agreement 
                        to provide the support.
                            ``(iii) Discount rate.--The discount rate 
                        shall be the average interest rate on 
                        marketable Treasury securities of similar 
                        maturity to the support provided under 
                        paragraph (1).
                    ``(B) Transfer.--Subject to the availability of 
                appropriations, an amount equal to the cost of support 
                determined under subparagraph (A) shall be transferred 
                from the Corporate Capital Account to the Corporate 
                Equity Account.
                    ``(C) Differential amount.--
                            ``(i) Appropriation.--For any fiscal year, 
                        upon the transfer of an amount pursuant to 
                        subparagraph (B), an amount equal to the 
                        differential amount shall be appropriated, out 
                        of any money in the Treasury not otherwise 
                        appropriated, to the Corporate Equity Account.
                            ``(ii) Treatment as direct spending.--An 
                        amount appropriated pursuant to clause (i) 
                        shall be recorded as direct spending (as 
                        defined by section 250(c)(8) of the Balanced 
                        Budget and Emergency Deficit Control Act of 
                        1985 (2 U.S.C. 900(c)(8)).
                            ``(iii) Budgetary effects.--The following 
                        shall apply to budget enforcement under the 
                        Congressional Budget Act of 1974 (2 U.S.C. 601 
                        et seq.), the Balanced Budget and Emergency 
                        Deficit Control Act of 1985 (2 U.S.C. 900 et 
                        seq.), and the Statutory Pay-As-You-Go Act of 
                        2010 (2 U.S.C. 931 et seq.):
                                    ``(I) Future appropriations.--Any 
                                amount appropriated pursuant to clause 
                                (i) shall not be recorded as budget 
                                authority or outlays for purposes of 
                                any estimate under the Congressional 
                                Budget Act of 1974 or the Balanced 
                                Budget and Emergency Deficit Control 
                                Act of 1985.
                                    ``(II) Statutory paygo 
                                scorecards.--The budgetary effects of 
                                any amounts appropriated pursuant to 
                                clause (i) shall not be entered on 
                                either PAYGO scorecard maintained 
                                pursuant to section 4(d) of the 
                                Statutory Pay As-You-Go Act of 2010 (2 
                                U.S.C. 933(d)).
                                    ``(III) Senate paygo scorecards.--
                                The budgetary effects of any amounts 
                                appropriated pursuant to clause (i) 
                                shall not be entered on any PAYGO 
                                scorecard maintained for purposes of 
                                section 4106 of H. Con. Res. 71 (115th 
                                Congress).
                                    ``(IV) Elimination of credit for 
                                cancellation or rescission of 
                                differential.--If there is enacted into 
                                law an Act that rescinds or reduces an 
                                amount appropriated pursuant to clause 
                                (i), the amount of any such rescission 
                                or reduction shall not be--
                                            ``(aa) estimated as a 
                                        reduction in direct spending 
                                        under the Congressional Budget 
                                        Act of 1974 or the Balanced 
                                        Budget and Emergency Deficit 
                                        Control Act of 1985; or
                                            ``(bb) entered on either 
                                        PAYGO scorecard maintained 
                                        pursuant to section 4(d) of the 
                                        Statutory Pay As-You-Go Act of 
                                        2010 or any PAYGO scorecard 
                                        maintained for purposes of 
                                        section 4106 of H. Con. Res. 71 
                                        (115th Congress).
                            ``(iv) Differential amount defined.--In 
                        this subparagraph, the term `differential 
                        amount' means the difference between the cost 
                        of support provided under paragraph (1), as 
                        determined under subparagraph (A), and the 
                        purchase price of the equity investment 
                        involved.
                    ``(D) Coordination.--
                            ``(i) In general.--The Director of the 
                        Office of Management and Budget, in 
                        consultation with the Corporation, shall be 
                        responsible for coordinating the cost estimates 
                        required by this paragraph.
                            ``(ii) Rule of construction.--Nothing in 
                        this subparagraph shall be construed to change 
                        the authority or responsibility of the 
                        Corporation to determine the terms and 
                        conditions of eligibility for, or the amount of 
                        support provided by, the Corporation.''.

SEC. 7. MAXIMUM CONTINGENT LIABILITY.

    Section 1433 of the BUILD Act of 2018 (22 U.S.C. 9633) is amended 
by striking ``$60,000,000,000'' and inserting ``$100,000,000,000''.

SEC. 8. REPORTING REQUIREMENT.

    Not later than 180 days after the date of the enactment of this 
Act, the Chief Executive Officer of the Corporation shall submit to the 
appropriate congressional committees a plan to expand the financing of 
the Corporation to support national security and development priorities 
of the United States in critical regions, including--
            (1) a description of the budgetary, staffing, and 
        programmatic resources necessary to carry out the plan; and
            (2) the effective date and the basis used, in consultation 
        with the Director of the Office of Management and Budget, to 
        calculate the net present value of funds appropriated for use 
        under section 1421(c) of the Build Act of 2018 (22 U.S.C. 
        9621(c)).
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