I 
119TH CONGRESS 
1ST SESSION H. R. 5299 
To modify and reauthorize the Better Utilization of Investments Leading 
to Development Act of 2018, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 11, 2025 
Mr. MAST introduced the following bill; which was referred to the Committee 
on Foreign Affairs 
A BILL 
To modify and reauthorize the Better Utilization of Invest-
ments Leading to Development Act of 2018, and for 
other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘DFC Modernization 
Act of 2025’’. 
SEC. 2. SENSE OF CONGRESS; STATEMENT OF POLICY. 
(a) IN GENERAL.—It is the sense of Congress that 
the United States International Development Finance 
Corporation should seek to responsibly increase its risk 
tolerance in investments to ensure that the Corporation 
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is maximizing the mobilization of private capital and prop-
erly pursuing its statutory objectives of advancing United 
States foreign policy, economic development, and national 
security goals to make America safer, stronger, and more 
prosperous, including— 
(1) by more frequent use of one or more of a 
variety of tools to mitigate risk to the private sector, 
including the use of equity, hybrid securities, mez-
zanine debt, accepting creditor status that is subor-
dinate to that of other creditors, using partial guar-
antees, employing first loss coverage, insurance, and 
using blended finance; 
(2) by lending, investing, or offering insurance 
in high-risk countries, regions, or sectors as a means 
to achieve its mission as a United States foreign pol-
icy and development agency of economic statecraft 
to mobilize capital, secure strategic needs, and build 
private markets; 
(3) by preventing strategic competitor inroads 
and dominance of key sectors such as infrastructure, 
critical and rare earth minerals, and critical supply 
chains and industries, which is in the economic and 
national security interests of the United States; and 
(4) by assisting allied and partner countries in 
achieving energy security through diversification of 
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their energy sources and supply routes which is in 
the economic and national security interests of the 
United States. 
(b) STATEMENT OF POLICY.—It is the policy of the 
United States— 
(1) to advance United States foreign policy, na-
tional security, and economic development goals by 
facilitating market-based private sector development 
in countries to make America safer, stronger, and 
more prosperous; 
(2) to counter or limit strategic competitor in-
roads and dominance of key sectors such as infra-
structure, critical and rare earth minerals, and crit-
ical supply chains and industries through support of 
diversified private sector options and by providing a 
robust alternative to and reducing reliance on state- 
directed, unsustainable financing by strategic com-
petitors of the United States; 
(3) to advance United States foreign policy, na-
tional security, and economic development goals by 
assisting countries to reduce their dependence on re-
sources from countries that use dependence for 
undue malign influence and that have used natural 
gas, nuclear energy, oil, rare earths, critical and 
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strategic materials, and other resources to coerce, 
intimidate, and influence other countries; 
(4) to promote the energy security of allied and 
partner countries by encouraging the development of 
accessible, transparent, and competitive energy mar-
kets that provide diversified sources, energy types, 
and diversified energy transport and distribution 
methods and routes, which are in the economic and 
national security interests of the United States; 
(5) to encourage United States public and pri-
vate sector investment in energy, telecommuni-
cations, and other infrastructure projects in allied 
and partner countries to bridge the gap between se-
curity requirements and commercial demand con-
sistent with the country’s absorptive capacity; 
(6) to facilitate the export of United States en-
ergy, telecommunications, technology, expertise, and 
other resources to global markets in a way that ben-
efits the economic and national security interests of 
the United States; 
(7) to support private sector development in 
countries that promote economic prosperity in a 
manner that can help to curb illegal migration and 
secure the borders of the United States; 
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(8) to facilitate procurement of necessary re-
sources and supply chains for the benefit of the 
United States and its citizens; and 
(9) to facilitate market-based private sector de-
velopment and economic growth through the provi-
sion of credit, capital, and other financial support by 
taking on substantial financial risk, and when nec-
essary financial losses, to unlock new, significant 
private capital investments or achieve or advance 
major United States foreign policy objectives. Losses 
may be expected, in certain instances, at the indi-
vidual investment level and financial performance 
may be measured at the overall portfolio level. 
TITLE I—DEFINITIONS AND LESS 
DEVELOPED COUNTRY FOCUS 
SEC. 101. DEFINITIONS. 
Section 1402 of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9601) 
is amended— 
(1) by redesignating paragraphs (2), (3), and 
(4) as paragraphs (3), (4), and (5), respectively; 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) HIGH-INCOME COUNTRY.—The term ‘high- 
income country’ means a country with a high-income 
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economy, as defined by International Bank for Re-
construction and Development and the International 
Development Association (collectively referred to as 
the ‘World Bank’).’’; 
(3) in paragraph (5), as so redesignated— 
(A) in subparagraph (A), by striking ‘‘or’’ 
at the end; 
(B) in subparagraph (B), by striking the 
period at the end and inserting ‘‘; or’’; and 
(C) by adding at the end, the following: 
‘‘(C) any other similar institution that has 
a purpose that is similar to the purposes of the 
Corporation as described in section 1412(b) of 
this title.’’; and 
(4) by adding at the end the following: 
‘‘(6) COUNTRY OF CONCERN.—The term ‘coun-
try of concern’ means any of the following countries: 
‘‘(A) The Bolivarian Republic of Ven-
ezuela. 
‘‘(B) The Republic of Cuba. 
‘‘(C) The Democratic People’s Republican 
of Korea. 
‘‘(D) The Islamic Republic of Iran. 
‘‘(E) The People’s Republic of China. 
‘‘(F) The Russian Federation. 
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‘‘(G) Belarus.’’. 
SEC. 102. LESS DEVELOPED COUNTRY FOCUS. 
Section 1412 of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9612) 
is amended— 
(1) by inserting ‘‘and high income countries 
and areas, as appropriate,’’ after ‘‘less developed 
countries’’; and 
(2) by adding at the end the following: 
‘‘(3) SUPPORT
IN
HIGH-INCOME
COUNTRIES 
AND AREAS.—The Corporation shall restrict the pro-
vision of support under title II in high-income coun-
tries and areas unless the President certifies to the 
appropriate congressional committees that such sup-
port furthers the national economic or foreign policy 
interests of the United States.’’. 
TITLE II—MANAGEMENT OF 
CORPORATION 
SEC. 201. BOARD OF DIRECTORS. 
Section 1413(b) of the Better Utilization of Invest-
ments Leading to Development Act of 2018 (22 U.S.C. 
9613(b)) is amended— 
(1) in subparagraph (2)(A)(iii), by striking ‘‘5 
individuals’’ each place it appears and inserting ‘‘3 
individuals’’; 
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(2) in subparagraph (2)(B)(i), by striking sub-
clause III and inserting the following: 
‘‘(III) One other principal officer 
from an executive Department des-
ignated by the President.’’; and 
(3) by striking subparagraph (4) and inserting 
the following: 
‘‘(4) VICE CHAIRPERSON.—The President shall 
appoint a member of the Board to serve as the Vice 
Chairperson of the Board.’’. 
SEC. 202. CHIEF RISK OFFICER. 
Section 1413(f) of the Better Utilization of Invest-
ments Leading to Development Act of 2018 (22 U.S.C. 
9613(f)) is amended— 
(1) in the matter preceding subparagraph (A), 
by striking ‘‘, who—’’ and inserting a period; 
(2) in paragraph (1), by striking subparagraphs 
(A) and (B); and 
(3) in paragraph (2), by striking ‘‘audit’’ and 
inserting ‘‘risk’’. 
SEC. 203. CHIEF DEVELOPMENT OFFICER. 
(a) IN GENERAL.—Section 1413 of the Better Utili-
zation of Investments Leading to Development Act of 
2018 (22 U.S.C. 9613) is amended— 
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(1) in subsection (a), by striking ‘‘a Chief De-
velopment Officer,’’; 
(2) by striking subsection (g) and redesignating 
subsections (h) and (i) as subsections (g) and (h), 
respectively; 
(3) in subsection (g) as so redesignated, by 
striking paragraph (1) and inserting the following: 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, officers, employees, and agents 
shall be selected and appointed by or under the au-
thority of the Chief Executive Officer, and shall be 
vested with such powers and duties as the Chief Ex-
ecutive Officer or the designee of the Chief Execu-
tive Officer may determine.’’; and 
(4) in subsection (h), as so redesignated, by 
striking ‘‘and the Chief Development Officer,’’. 
(b) CHIEF EXECUTIVE OFFICER.—Section 1445 of 
the Better Utilization of Investments Leading to Develop-
ment Act of 2018 (22 U.S.C. 9655) is amended— 
(1) by striking subsection (a) and inserting the 
following: 
‘‘(a) IN GENERAL.—The Chief Executive Officer 
shall— 
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‘‘(1) develop a strategic relationship with pri-
vate sector entities focused at the nexus of business 
opportunities and development priorities; 
‘‘(2) engage such entities and reduce business 
risks primarily through direct transaction support 
and facilitating investment partnerships; 
‘‘(3) develop and support tools, approaches, and 
intermediaries that can mobilize private finance at 
scale in the developing world; and 
‘‘(4) pursue highly developmental projects of all 
sizes, especially those that are small but designed for 
work in the most underdeveloped areas, including 
countries with chronic suffering as a result of ex-
treme poverty, fragile institutions, or a history of vi-
olence.’’; and 
(2) in subsection (c), by striking ‘‘the United 
States Agency for International Development and’’. 
SEC. 204. ADMINISTRATIVELY DETERMINED POSITIONS. 
Section 1413(g)(2) of the Better Utilization of In-
vestments Leading to Development Act of 2018 (22 
U.S.C. 9613(g)(2)), as so redesignated, is amended in 
subparagraph (A) by striking ‘‘50’’ and inserting ‘‘100’’. 
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TITLE III—AUTHORITIES RELAT-
ING TO PROVISION OF SUP-
PORT 
SEC. 301. EQUITY LIMITATION. 
Section 1421(c)(4)(A) of the Better Utilization of In-
vestments Leading to Development Act of 2018 (22 
U.S.C. 9621(c)(4)(A)) is amended by striking ‘‘30’’ and 
inserting ‘‘49’’. 
SEC. 302. REVOLVING EQUITY INVESTMENT ACCOUNT. 
(a) 
EQUITY
INVESTMENTS
ACCOUNT.—Section 
1421(c) of the Better Utilization of Investments Leading 
to Development Act of 2018 (22 U.S.C. 9621(c)) is 
amended by adding at the end the following: 
‘‘(7) EQUITY INVESTMENTS ACCOUNT.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Treasury of the United States an 
Equity Investments Account of the United 
States International Development Finance Cor-
poration (referred to in this subsection as the 
‘Equity Investments Account’). 
‘‘(B) RETENTION OF COLLECTIONS.—Col-
lections derived from the earnings, fees, credits, 
and other collections from the equity invest-
ments made using amounts in the Equity In-
vestments Account shall be deposited into the 
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Equity Investments Account, and shall be avail-
able to the Corporation without further appro-
priation or fiscal year limitation for carrying 
out the purposes of this section.’’. 
(b) COLLECTIONS.—Section 1434(h) of the Better 
Utilization of Investments Leading to Development Act of 
2018 (22 U.S.C. 9634(h)) is amended by adding ‘‘except 
earnings, fees, credits, and other collections related to eq-
uity investments from the Equity Investments Account,’’ 
after ‘‘earnings collected related to equity investments,’’. 
SEC. 303. ENTERPRISE FUNDS. 
Section 1421(g) of the Better Utilization of Invest-
ments Leading to Development Act of 2018 (22 U.S.C. 
9621(g)) is amended— 
(1) in paragraph (1), by striking ‘‘the Adminis-
trator of the United States Agency for International 
Development,’’; and 
(2) in paragraph (3)(E), by striking ‘‘Agency 
for International Development’’. 
SEC. 304. TERMINATION. 
Section 1424(a) of the Better Utilization of invest-
ments Leading to Development Act of 2018 (22 U.S.C. 
9624(a)) is amended by striking ‘‘the date that is 7 years 
after the date of the enactment of this Act’’ and inserting 
‘‘December 31, 2031’’. 
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(3) in subsection (k)— 
(A) in paragraph (1), by inserting ‘‘other 
direct costs associated with origination or moni-
toring services, including seminars, conferences, 
and other pre-investment services,’’ after ‘‘legal 
expenses,’’; and 
(B) in paragraph (2), by striking ‘‘does not 
include’’ and inserting ‘‘includes’’. 
SEC. 404. NOTIFICATIONS TO BE PROVIDED BY THE COR-
PORATION. 
Section 1446(a) of the Better Utilization of Invest-
ments Leading to Development Act of 2018 (22 U.S.C. 
9656(a)) is amended by striking ‘‘$10,000,000’’ and in-
serting ‘‘$100,000,000’’. 
SEC. 405. MILLENNIUM CHALLENGE CORPORATION. 
(a) COORDINATION WITH OTHER DEVELOPMENT 
AGENCIES.—Section 1435 of the Better Utilization of In-
vestments Leading to Development Act of 2018 (22 
U.S.C. 9635) is amended by striking ‘‘the United States 
Agency for International Development’’. 
(b) SOURCES OF INFORMATION.—Section 1451(g)(2) 
of the Better Utilization of Investments Leading to Devel-
opment Act of 2018 (22 U.S.C. 9671(g)(2)) is amended 
by striking ‘‘the Department of Commerce’s Country 
Commercial Guides, or the Millennium Challenge Corpora-
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tion’s Constraints Analysis,’’ and inserting ‘‘or the De-
partment of Commerce’s Country Commercial Guides,’’. 
SEC. 406. STATE-OWNED ENTERPRISES. 
Section 1451 of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 9671) 
is amended by adding at the end the following: 
‘‘(j) POLICIES WITH RESPECT
TO STATE-OWNED 
ENTERPRISES, 
ANTICOMPETITIVE
PRACTICES, 
AND 
COUNTRIES OF CONCERN.— 
‘‘(1) POLICY.—The Corporation shall develop 
appropriate policies and guidelines for support pro-
vided under title II for a project involving a state- 
owned enterprise, sovereign wealth fund, or a 
parastatal entity to ensure such support is provided 
consistent with appropriate principles and practices 
of competitive neutrality. 
‘‘(2) PROHIBITIONS.— 
‘‘(A) ANTICOMPETITIVE PRACTICES.—The 
Corporation may not provide support under 
title II for a project that involves a private sec-
tor entity engaged in anticompetitive practices. 
‘‘(B) COUNTRIES OF CONCERN.—The Cor-
poration may not provide support under title II 
for projects— 
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‘‘(i) that involve partnerships with the 
government of a country of concern or a 
state-owned enterprise that belongs to or is 
under the control of a foreign country of 
concern; or 
‘‘(ii) that would be operated, man-
aged, or controlled by the government of a 
country of concern or a state-owned enter-
prise that belongs to or is under the con-
trol of a foreign country of concern. 
‘‘(3) DEFINITIONS.—In this subsection: 
‘‘(A) STATE-OWNED
ENTERPRISE.—The 
term ‘state-owned enterprise’ means any enter-
prise established for a commercial or business 
purpose that is directly owned or controlled by 
one or more governments, including any agency, 
instrumentality, subdivision, or other unit of 
government at any level of jurisdiction. 
‘‘(B) CONTROL.—The term ‘control’, with 
respect to an enterprise, means the power by 
any means to control the enterprise regardless 
of— 
‘‘(i) the level of ownership; and 
‘‘(ii) whether or not the power is exer-
cised. 
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‘‘(C) OWNED.—The term ‘owned’, with re-
spect to an enterprise, means a majority or con-
trolling interest, whether by value or voting in-
terest, of the shares of that enterprise, includ-
ing through fiduciaries, agents, or other means. 
‘‘(4) QUALIFYING SOVEREIGN ENTITY.—State- 
owned enterprises, sovereign wealth funds, or 
parastatal entities that the Corporation supports, 
pursuant to the policy and prohibitions in section 
407 (1) and (2), shall be considered as a ‘qualifying 
sovereign entity’ as defined in section 1402.’’. 
SEC. 407. REPEAL OF REDUNDANT PROVISIONS OF THE EU-
ROPEAN 
ENERGY 
SECURITY 
AND 
DIVER-
SIFICATION ACT OF 2019. 
The European Energy Security and Diversification 
Act of 2019 (title XX of division P of Public Law 116– 
94; 22 U.S.C. 9501 note) is hereby repealed. 
Æ 
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