I 

118TH CONGRESS 

1ST SESSION H. R. 514 

To establish a National Development Strategy, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2023 

Mr. KHANNA introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy 

and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To establish a National Development Strategy, and for other 

purposes. 

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. 

4 This Act may be cited as the ‘‘National Development 

5 Strategy and Coordination Act of 2023’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 


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1 (1) APPROPRIATE CONGRESSIONAL COM2 MITTEE.—The term ‘‘appropriate congressional com3 mittee’’ means— 

4 (A) the Committee on Banking, Housing, 

5 and Urban Affairs, the Committee on Finance, 

6 the Committee on Commerce, Science, and 

7 Transportation, and the Select Committee on 

8 Intelligence of the Senate; and 

9 (B) the Committee on Financial Services, 

10 the Committee on Energy and Commerce, and 

11 the Permanent Select Committee on Intelligence 

12 of the House of Representatives. 

13 (2) COUNTRY OF CONCERN.—The term ‘‘coun14 try of concern’’ means— 

15 (A) the People’s Republic of China and 

16 any other foreign government or foreign non17 government person determined to be a foreign 

18 adversary under section 7.4 of title 15, Code of 

19 Federal Regulations, or any successor regula20 tion; or 

21 (B) any country determined by the Sec22 retary of Commerce, in consultation with the 

23 United States Trade Representative, the Sec24 retary of Defense, and the Director of National 

25 Intelligence, to have inadequate safeguards in 


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1 place to protect United States funds (or intel2 lectual property developed using such funds) 

3 from theft or transfer to a foreign government 

4 or foreign non-government person described in 

5 subparagraph (A). 

6 (3) ENTITY OF CONCERN.—The term ‘‘entity of 

7 concern’’ means— 

8 (A) an entity headquartered in a country 

9 of concern; 

10 (B) an entity that is more than 25-percent 

11 owned by individuals or entities in countries of 

12 concern; 

13 (C) an entity on the list of specially des14 ignated nationals and blocked persons main15 tained by the Office of Foreign Assets Control 

16 of the Department of the Treasury (commonly 

17 referred to as the ‘‘SDN list’’); 

18 (D) an entity on the Non-SDN Chinese 

19 Military-Industrial Complex Companies List— 

20 (i) established pursuant to Executive 

21 Order 13959 (50 U.S.C. 1701 note; relat22 ing to addressing the threat from securities 

23 investments that finance Communist Chi24 nese military companies), as amended beVerDate Sep 11 2014 04:04 Mar 09, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H514.IH H514

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1 fore, on, or after the date of the enactment 

2 of this Act; and 

3 (ii) maintained by the Office of For4 eign Assets Control; 

5 (E) a Chinese military company on the list 

6 required by section 1260H of the William M. 

7 (Mac) Thornberry National Defense Authoriza8 tion Act for Fiscal Year 2021 (Public Law 

9 116–283; 10 U.S.C. 113 note); 

10 (F) an entity on the Entity List main11 tained by the Bureau of Industry and Security 

12 of the Department of Commerce and set forth 

13 in Supplement No. 4 to part 744 of title 15, 

14 Code of Federal Regulations, or any successor 

15 regulation; 

16 (G) an entity that produces equipment or 

17 services on the list of communications equip18 ment and services that pose an unacceptable 

19 risk to the national security of the United 

20 States or the security and safety of United 

21 States persons maintained by the Federal Com22 munications Commission under section 2 of the 

23 Secure and Trusted Communications Networks 

24 Act of 2019 (47 U.S.C. 1601); or 


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1 (H) any entity that is majority owned or 

2 controlled by, or under common ownership or 

3 control with, an entity described in any of sub4 paragraphs (A) through (G). 

5 SEC. 3. ESTABLISHMENT OF THE INTERAGENCY COM6 MITTEE FOR THE COORDINATION OF NA7 TIONAL DEVELOPMENT FINANCING PRO8 GRAMS. 

9 (a) ESTABLISHMENT.—There is established in the 

10 Executive Office of the President a Committee to be 

11 known as the Interagency Committee for the Coordination 

12 of National Development Financing Programs (referred to 

13 in this Act as the ‘‘Committee’’). 

14 (b) MEMBERSHIP.— 

15 (1) COMPOSITION.—The Committee shall con16 sist of the following members: 

17 (A) The Secretary of Transportation or a 

18 designee of the Secretary. 

19 (B) The Secretary of Energy or a designee 

20 of the Secretary. 

21 (C) The Secretary of Commerce or a des22 ignee of the Secretary. 

23 (D) The Secretary of Labor or a designee 

24 of the Secretary. 


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1 (E) The Secretary of the Treasury or a 

2 designee of the Secretary. 

3 (F) The Administrator of the Small Busi4 ness Administration or a designee of the Ad5 ministrator. 

6 (G) The Secretary of Defense or a des7 ignee of the Secretary. 

8 (H) The Director of National Intelligence 

9 or a designee of the Director. 

10 (I) The Secretary of Agriculture or a des11 ignee of the Secretary. 

12 (J) The United States Trade Representa13 tive or their designee. 

14 (K) The Chair of the Board of Governors 

15 of the Federal Reserve or a designee of the 

16 Chair, who shall serve as a nonvoting member. 

17 (L) The Secretary of the Treasury or a 

18 designee of the Secretary, who shall serve as 

19 the chair of the Committee. 

20 (2) TIE VOTE.—In the event of a tie vote, the 

21 vote of the chair of the Committee shall serve as the 

22 tie-breaker. 

23 (c) DUTIES.—The Committee— 

24 (1) shall submit to Congress the National De25 velopment Strategy described in subsection (d); 


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1 (A) not later than 1 year after the date of 

2 enactment of this Act; and 

3 (B) not later than 1 year after January 

4 20, 2024, and every 4 years thereafter, and in 

5 each such year not earlier than the latest date 

6 on which the budget of the President may be 

7 submitted to Congress under section 1105(a) of 

8 title 31, United States Code, submit to Con9 gress the National Development Strategy de10 scribed in subsection (d); and 

11 (2) shall identify economic sectors of the United 

12 States, regions of the United States, and, as nec13 essary and supported by substantial evidence, 

14 projects or partnerships that advance the goals of 

15 the National Development Strategy described in sub16 section (d), to which financing assistance should be 

17 prioritized by member agencies of the Committee 

18 and should be provided or supported by the Federal 

19 Financing Bank. 

20 (d) NATIONAL DEVELOPMENT STRATEGY.—The 

21 Committee shall develop a publicly available (except for 

22 an allowable classified annex) National Development 

23 Strategy, which shall— 


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1 (1) identify and address vulnerabilities in 

2 United States supply chains in industries critical to 

3 national security; 

4 (2) identify and address vulnerabilities and 

5 shortfalls in domestic manufacturing capabilities 

6 that threaten the ability of the United States to 

7 maintain a global advantage in innovation and man8 ufacturing; 

9 (3) identify weaknesses and discuss opportuni10 ties to strengthen the broad industrial base of the 

11 United States, which may include— 

12 (A) strengthening supply chain resiliency; 

13 (B) supporting industries critical for the 

14 national security; 

15 (C) developing technologies that provide 

16 scientific or commercial value to the United 

17 States; 

18 (D) supporting job growth and develop19 ment of critical manufacturing capabilities with20 in the United States workforce; 

21 (E) supporting the development and adop22 tion of innovative resource extraction tech23 nologies, including technologies for renewable 

24 energy; and 


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1 (F) supporting job growth and economic 

2 development in critical industries in qualified 

3 opportunity zones (as defined in section 1400Z– 

4 1 of the Internal Revenue Code of 1986); 

5 (4) identify industries and regions in the United 

6 States that require assistance in order to address 

7 vulnerabilities and advance the goals described in 

8 paragraphs (1), (2), and (3); and 

9 (5) outline a strategic plan to promote invest10 ment in the industries described in paragraph (4), 

11 which shall include— 

12 (A) an estimate of the amount and nature 

13 of public financing needed to achieve the goals 

14 and address vulnerabilities described in para15 graphs (1), (2), and (3); 

16 (B) an inventory of all Federal programs 

17 in existence as of the date of the National De18 velopment Strategy that are capable of pro19 viding the financing described in subparagraph 

20 (A), the level of investment from each such 

21 Federal program in the preceding 5-year period, 

22 and a detailed description of how each such 

23 program is advancing development goals in the 

24 United States; 


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1 (C) recommendations as to how Federal 

2 agencies may, under existing Federal authori3 ties, leverage and attract private investment to 

4 accomplish the goals described in this sub5 section; 

6 (D) recommendations, if applicable, on any 

7 changes to Federal financing programs, includ8 ing changes to how financing decisions are 

9 prioritized or creation of new financing pro10 grams, that may be needed to advance the goals 

11 of the National Development Strategy; 

12 (E) directives to the Federal Financing 

13 Bank to accomplish the goals of the National 

14 Development Strategy; and 

15 (F) performance metrics to evaluate and 

16 monitor projects supported by the Federal Fi17 nancing Bank in alignment with the National 

18 Development Strategy. 

19 (e) ADVICE AND INPUT.—The Committee shall seek 

20 the advice and input of industry partners, manufacturing 

21 policy experts, State and local development officials, and 

22 manufacturing worker interests when preparing the Na23 tional Development Strategy described in subsection (d), 

24 including by— 


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1 (1) holding not less than 4 public hearings per 

2 year, either virtually or in person, during which in3 dustry representatives, worker groups, and regional 

4 representatives can provide insight into strategic de5 velopment prioritization; and 

6 (2) establishing an Industry Advisory Board of 

7 not more than 10 members appointed by the Presi8 dent, which shall include— 

9 (A) an expert in industry competitiveness 

10 and national security; 

11 (B) a manufacturing trade association rep12 resentative; 

13 (C) a representative of small business gov14 ernment contractors; 

15 (D) a manufacturing worker representa16 tive; 

17 (E) a representative from a private invest18 ment firm investing in critical industries and 

19 frontier technology; and 

20 (F) such other representatives as the 

21 President may appoint. 

22 (f) ASSESSMENT OF NATIONAL DEVELOPMENT

23 STRATEGY.—In January of each year in which the Com24 mittee does not submit a new National Development 

25 Strategy as required under subsection (d), the Committee 


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1 shall submit to the appropriate congressional committees 

2 an assessment of the most recently published National De3 velopment Strategy, which shall include— 

4 (1) an accounting of any new investments made 

5 by the Federal Financing Bank or member agencies 

6 of the Committee in the preceding year, including 

7 ZIP Code, North American Industry Classification 

8 System code, and financing stage; 

9 (2) the performance of such investments, in ac10 cordance with performance metrics established by 

11 the Committee; 

12 (3) an assessment of the implementation of the 

13 National Development Strategy, including an assess14 ment by each agency represented on the Committee, 

15 supported by sufficient evidence, of steps taken to 

16 align such agencies’ financing, research, and devel17 opment activities with the goals of the National De18 velopment Strategy; and 

19 (4) a determination on whether or not an up20 date is needed to the National Development Strategy 

21 as a result of a change in assumptions, geopolitical 

22 dynamics, or other factors. 

23 (g) MEMORANDUM OF COORDINATION WITH FED24 ERAL AGENCIES ENGAGED IN INVESTMENT AND FINANC25 ING ACTIVITIES.—Not later than 1 year after the date of 


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1 enactment of this Act, the Committee shall negotiate a 

2 memorandum of understanding among the Federal agen3 cies represented on the Committee, which shall— 

4 (1) establish procedures for— 

5 (A) aligning their respective investment 

6 and financing authorities to ensure maximum 

7 efficiency and comply with the goals of the Na8 tional Development Strategy; 

9 (B) resolving conflicts in cases of overlap10 ping jurisdiction between their respective agen11 cies; and 

12 (C) avoiding conflicting or duplicative op13 eration of services; and 

14 (2) be reviewed and updated annually in coordi15 nation with the submission of the assessment out16 lined in subsection (f). 

17 (h) MEETINGS.—The Committee shall meet regularly 

18 and as required by the President, but not less frequently 

19 than annually. 

20 (i) STRATEGIC ALIGNMENT.—Each Federal agency 

21 represented on the Committee shall— 

22 (1) consult on a regular basis the most recently 

23 published National Development Strategy described 

24 in subsection (d); and 


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1 (2) to the extent practicable, give priority con2 sideration to projects that align with the goals of the 

3 National Development Strategy when engaged in fi4 nancing, research, and development activities. 

5 SEC. 4. REQUIREMENTS OF THE FEDERAL FINANCING 

6 BANK RELATING TO THE NATIONAL DEVEL7 OPMENT STRATEGY. 

8 (a) IN GENERAL.—The Federal Financing Bank Act 

9 of 1973 (12 U.S.C. 2281 et seq.) is amended by adding 

10 at the end the following: 

11 ‘‘SEC. 21. FUNCTIONS WITH RESPECT TO THE COMMITTEE. 

12 ‘‘(a) IN GENERAL.—The Bank shall carry out any 

13 directives made to the Bank by the Interagency Com14 mittee for the Coordination of National Development Fi15 nancing Programs pursuant to subsections (c)(2) and 

16 (d)(5)(E) of section 3 of the National Development Strat17 egy and Coordination Act of 2023. 

18 ‘‘(b) ACTIVITIES.—Pursuant to subsection (a), the 

19 Bank is authorized, upon direction by the Interagency 

20 Committee for the Coordination of National Development 

21 Financing Programs, to— 

22 ‘‘(1) issue securities that are backed by financ23 ing assistance through any member agency of the 

24 Committee; 


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1 ‘‘(2) purchase from the private market loans or 

2 other debt or equity instruments guaranteed in 

3 whole or in part by any member agency of the Com4 mittee; and 

5 ‘‘(3) participate in agency loans or loan guaran6 tees in an amount less than 100 percent of the prin7 cipal amount of financing. 

8 ‘‘(c) PURCHASE NOT FOR RESALE.—As directed by 

9 the Interagency Committee for the Coordination of Na10 tional Development Financing Programs in accordance 

11 with the National Development Strategy established under 

12 section 3(d) of the National Development Strategy and 

13 Coordination Act of 2023, the Bank may, as necessary, 

14 purchase not for resale to the private market any loans 

15 or other debt or equity instruments described in sub16 section (b)(2). 

17 ‘‘SEC. 22. SECONDARY MARKET OPERATIONS. 

18 ‘‘Except as otherwise provided in the National Devel19 opment Strategy and Coordination Act of 2023, obliga20 tions purchased by the Bank may be resold in the sec21 ondary market in a similar manner to secondary market 

22 sales of Treasury notes. 

23 ‘‘SEC. 23. OMBUDSMAN. 

24 ‘‘The Board of Directors of the Bank shall designate 

25 an official as the Ombudsman who shall— 


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1 ‘‘(1) review investments made by the Bank on 

2 projects or partnerships identified by the Inter3 agency Committee for the Coordination of National 

4 Development Financing Programs; 

5 ‘‘(2) review the risk profiles and performance of 

6 any such projects or partnerships; 

7 ‘‘(3) provide oversight relating to any such 

8 projects or partnerships; and 

9 ‘‘(4) provide annually to the appropriate con10 gressional committees a report detailing investments 

11 made by the Bank in projects or partnerships identi12 fied by the Interagency Committee for the Coordina13 tion of National Development Financing Programs, 

14 the performance of such investments, and any new 

15 or existing investments that may present cause for 

16 concern regarding the potential of repayment or lack 

17 of alignment with strategic directives.’’. 

18 (b) FEDERAL CREDIT REFORM ACT.—If the Com19 mittee determines that a project or partnership receiving 

20 financial assistance through any member agency is invest21 ing in frontier technologies for which no reasonable mar22 ket comparison exists, obligations purchased in connection 

23 with such project or partnership by the Federal Financing 

24 Bank under section 21 of the Federal Financing Bank Act 

25 of 1973, as added by subsection (a) of this section, shall 


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1 not be subject to the Federal Credit Reform Act of 1990 

2 (2 U.S.C. 661 et seq.). 

3 SEC. 5. AUTHORIZATION OF APPROPRIATIONS FOR THE 

4 FEDERAL FINANCING BANK. 

5 (a) IN GENERAL.—There is authorized to be appro6 priated to the Federal Financing Bank, to remain avail7 able for 10 years after the date of distribution, to carry 

8 out projects and partnerships selected by the Interagency 

9 Committee for the Coordination of National Development 

10 Financing Programs established under section 3 of this 

11 Act— 

12 (1) for fiscal year 2024, $5,000,000,000; 

13 (2) for fiscal year 2025, $5,000,000,000; 

14 (3) for fiscal year 2026, $5,000,000,000; and 

15 (4) for fiscal year 2027, $5,000,000,000; 

16 (b) SET ASIDE.—Not more than 2 percent of funds 

17 appropriated under this section shall be utilized for admin18 istrative costs, including the hiring of new staff to oversee 

19 and accomplish the functions of the Federal Financing 

20 Bank. 

21 (c) SENSE OF CONGRESS.—It is the sense of Con22 gress that the Federal Financing Bank should use 

23 amounts appropriated under this section as soon as pos24 sible. 


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1 SEC. 6. PROHIBITIONS AND POLICY. 

2 (a) PROHIBITION.—No funding or authorities pro3 vided under this Act may be used to support projects or 

4 partnerships with any entity of concern. 

5 (b) POLICIES.—Not later than 180 days after the 

6 date of enactment of this Act, the Committee shall estab7 lish policies to ensure that any support to projects or part8 nerships provided by the Federal Financing Bank in ac9 cordance with this Act— 

10 (1) includes assurances that no support pro11 vided in such project or partnership shall be used to 

12 expand operations in a country of concern; 

13 (2) includes protections to ensure against trans14 fer of intellectual property to countries of concern; 

15 and 

16 (3) includes requirements that any firm partici17 pating in a project or partnership funded by this Act 

18 disclose any affiliate, parent company, or subsidiary 

19 located in a country of concern. 

Æ 


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