I 
118TH CONGRESS 
1ST SESSION H. R. 4952 
To amend title 10, United States Code, to establish the Office of Strategic 
Capital in the Office of the Secretary of Defense, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 26, 2023 
Mr. WITTMAN (for himself, Mr. KHANNA, and Mr. MILLS) introduced the 
following bill; which was referred to the Committee on Armed Services 
A BILL 
To amend title 10, United States Code, to establish the 
Office of Strategic Capital in the Office of the Secretary 
of Defense, 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. ESTABLISHMENT OF OFFICE OF STRATEGIC 
CAPITAL. 
(a) IN GENERAL.—Chapter 4 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 148. Office of Strategic Capital 
‘‘(a) ESTABLISHMENT.—There is in the Office of the 
Secretary of Defense an office to be known as the Office 
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of Strategic Capital (in this section referred to as the ‘Of-
fice’). 
‘‘(b) DIRECTOR.—The Office shall be headed by an 
Executive Director (in this section referred to as the ‘Di-
rector’), who shall be appointed by the Secretary of De-
fense from among employees of the Department of De-
fense in Senior Executive Service or equivalent positions 
(as defined in section 3132 of title 5). 
‘‘(c) DUTIES.—The Office shall— 
‘‘(1) identify, accelerate, and sustain the estab-
lishment, research, development, construction, pro-
curement, leasing, consolidation, alteration, improve-
ment, or repair of tangible and intangible assets 
vital to national security; 
‘‘(2) protect vital tangible and intangible assets 
from theft, acquisition, and transfer by countries 
that are adversaries of the United States; and 
‘‘(3) provide capital assistance to eligible enti-
ties engaged in eligible investments. 
‘‘(d) APPLICATIONS.—An eligible entity seeking cap-
ital assistance for an eligible investment shall submit to 
the Director an application at such time, in such manner, 
and containing such information as the Director may re-
quire. 
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‘‘(e) SELECTION OF INVESTMENTS.—The Director 
shall establish criteria for selecting among eligible invest-
ments for which applications are submitted under sub-
section (d). Such criteria shall include— 
‘‘(1) the extent to which an investment is sig-
nificant to the national security of the United 
States; 
‘‘(2) the creditworthiness of an investment; and 
‘‘(3) the likelihood that capital assistance pro-
vided for an investment would enable the investment 
to proceed sooner than the investment would other-
wise be able to proceed. 
‘‘(f) CAPITAL ASSISTANCE.—The Secretary of De-
fense is authorized to provide capital assistance within this 
section. 
‘‘(1) LOANS AND LOAN GUARANTEES.— 
‘‘(A) IN GENERAL.—The Office may pro-
vide loans or loan guarantees to finance or refi-
nance the costs of an eligible investment se-
lected pursuant to subsection (e). 
‘‘(B) ADMINISTRATION OF LOANS.— 
‘‘(i) INTEREST RATE.— 
‘‘(I) IN
GENERAL.—Except as 
provided by subclause (II), the inter-
est rate on a loan provided under sub-
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paragraph (A) shall be not less than 
the yield on marketable United States 
Treasury securities of a similar matu-
rity to the maturity of the loan on the 
date of execution of the loan agree-
ment. 
‘‘(II) EXCEPTION.—The Director 
may waive the requirement under sub-
clause (I) with respect to an invest-
ment if the investment is determined 
by the Secretary of Defense to be vital 
to the national security of the United 
States. 
‘‘(III) CRITERIA.—The Director 
shall establish separate and distinct 
criteria for the interest rates for loan 
guarantees with private sector lending 
institutions. 
‘‘(ii) FINAL
MATURITY
DATE.—The 
final maturity date of a loan provided 
under subparagraph (A) shall be not later 
than 50 years after the date of substantial 
completion of the investment for which the 
loan was provided. 
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‘‘(iii) PREPAYMENT.—A loan provided 
under subparagraph (A) may be paid ear-
lier than is provided for under the loan 
agreement without a penalty. 
‘‘(iv) NONSUBORDINATION.— 
‘‘(I) IN GENERAL.—A loan pro-
vided under subparagraph (A) shall 
not be subordinated to the claims of 
any holder of investment obligations 
in the event of bankruptcy, insolvency, 
or liquidation of the obligor. 
‘‘(II) 
WAIVER.—The 
Director 
may waive the requirement under sub-
clause (I) with respect to the invest-
ment in order to mitigate risks to loan 
repayment. 
‘‘(v) SALE OF LOANS.—For which a 
loan is provided under subparagraph (A) 
and after notifying the obligor, the Direc-
tor may sell to another entity or reoffer 
into the capital markets a loan for the in-
vestment if the Director determines that 
the sale or reoffering can be made on fa-
vorable terms. 
‘‘(vi) LOAN GUARANTEES.— 
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‘‘(I) IN GENERAL.—If the Direc-
tor determines that the holder of a 
loan guaranteed by the Office de-
faulted on the loan, the Director shall 
pay the holder as specified in the loan 
guarantee agreement. 
‘‘(II) LOAN
GUARANTEE
PER-
CENTAGE.—A loan guarantee agree-
ment entered into by the Office under 
this paragraph shall specify the per-
centage of the principal amount of the 
loan guaranteed by the Office under 
such agreement. 
‘‘(vii) TERMS
AND
CONDITIONS.— 
Loans and loan guarantees provided under 
subparagraph (A) shall be subject to such 
other terms and conditions and contain 
such other covenants, representations, war-
ranties, and requirements (including re-
quirements for audits) as the Director de-
termines appropriate. 
‘‘(viii) INVESTMENT-GRADE RATING.— 
The Director shall establish a credit rating 
system to ensure a reasonable likelihood of 
repayment of loans made or guaranteed 
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under this subsection. The credit rating 
system may include the use of existing 
credit rating agencies as the Director de-
termines appropriate. 
‘‘(ix) APPLICABILITY
OF
FEDERAL 
CREDIT REFORM ACT OF 1990.—Loans and 
loan guarantees provided under subpara-
graph (A) shall be subject to the require-
ments of the Federal Credit Reform Act of 
1990 (2 U.S.C. 661 et seq.). 
‘‘(2) EQUITY INVESTMENTS.— 
‘‘(A) IN GENERAL.—The Director may, as 
a minority investor and subject to the avail-
ability of appropriations this purpose, support 
an eligible investment selected pursuant to sub-
section (e) with funds or use other mechanisms 
for the purpose of purchasing, and may make 
and fund commitments to purchase, invest in, 
make pledges in respect of, or otherwise ac-
quire, equity, warrants, or quasi-equity securi-
ties or shares or financial interests of the eligi-
ble entity receiving support for the eligible in-
vestment, including as a limited partner or 
other investor in investment funds, upon such 
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terms and conditions as the Director may deter-
mine. 
‘‘(B) SALES AND LIQUIDATION OF POSI-
TION.—The Office shall seek to sell and liq-
uidate any support for an investment provided 
under subparagraph (A) as soon as commer-
cially feasible, commensurate with other similar 
investors in the investment and taking into con-
sideration the national security interests of the 
United States. 
‘‘(3) TECHNICAL ASSISTANCE.—Subject to the 
availability of appropriations, the Director may pro-
vide technical assistance with respect to developing 
and financing investments to eligible entities seeking 
capital assistance for eligible investments and eligi-
ble entities receiving capital assistance under this 
subsection. 
‘‘(4) TERMS AND CONDITIONS.— 
‘‘(A) FEES.—The Director may charge 
fees for the provision of capital assistance 
under this subsection to cover the administra-
tive costs to the Office of providing such assist-
ance. 
‘‘(B) USE OF FEES.—Fees collected pursu-
ant to subparagraph (A) may only be used to 
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pay for the cost of administering the activities 
authorized by this section. 
‘‘(C) AMOUNT OF CAPITAL ASSISTANCE.— 
The Director shall provide to an eligible invest-
ment selected pursuant to subsection (e) the 
minimum amount of assistance necessary to 
carry out the investment. 
‘‘(D) USE OF UNITED STATES DOLLAR.— 
All financial transactions conducted under this 
subsection shall be conducted in United States 
dollars. 
‘‘(g) ESTABLISHMENT OF ACCOUNTS.— 
‘‘(1) CREDIT PROGRAM ACCOUNT.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Treasury of the United States an 
account to be known as the ‘Department of De-
fense Credit Program Account’ (in this sub-
section referred to as the ‘Credit Program Ac-
count’) to make loans and loan guarantees 
under this section in accordance with the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 661 
et seq.). 
‘‘(B) FUNDING.—The Credit Program Ac-
count shall consist of amounts appropriated to 
the Credit Program Account pursuant to an au-
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thorization of appropriations and all fees as de-
scribed in subparagraph (C). 
‘‘(C) FEE AUTHORITY.— 
‘‘(i) IN
GENERAL.—The Secretary 
may charge and collect fees for providing 
capital assistance in an amount to be de-
termined by the Secretary to cover the 
costs to the Office of providing such cap-
ital assistance. 
‘‘(ii) AMOUNT.—The amount of the 
fees under clause (i) shall equal, but not 
exceed, the costs to the Office of providing 
capital assistance. 
‘‘(iii) USE OF FEES.—Fees collected 
pursuant to clause (i) may only be used to 
pay for the cost of administering the ac-
tivities authorized by this section. 
‘‘(2) EQUITY ACCOUNT.— 
‘‘(A) ESTABLISHMENT.—There is estab-
lished in the Treasury of the United States an 
account to be known as the ‘Department of De-
fense Strategic Capital Equity Account’ (in this 
subsection referred to as the ‘Strategic Capital 
Equity Account’). 
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‘‘(B) FUNDING.—The Strategic Capital 
Equity Account shall consist of all amounts ap-
propriated to the Strategic Capital Equity Ac-
count pursuant to an authorization of appro-
priations. 
‘‘(3) USE
OF
FUNDS.—Subject to appropria-
tions Acts, the Secretary is authorized to pay, from 
the Credit Program Account or the Strategic Capital 
Equity Account— 
‘‘(A) the cost, as defined in section 502 of 
the Federal Credit Reform Act of 1990 (2 
U.S.C. 661a), of loans and loan guarantees and 
other capital assistance; 
‘‘(B) administrative expenses of the Office 
associated with activities under this section; 
‘‘(C) 
project-specific 
transaction 
costs 
under this section; 
‘‘(D) the cost of providing support author-
ized by this section; and 
‘‘(E) the costs of equity investments under 
this section. 
‘‘(h) REGULATIONS.— 
‘‘(1) IN GENERAL.—The Secretary of Defense 
shall prescribe such regulations as are necessary to 
carry out this section. 
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‘‘(2) LIMITATION ON AUTHORITIES.—The Sec-
retary of Defense may not exercise the authorities 
under this section prior to promulgating the regula-
tions required by paragraph (1). 
‘‘(i) ANNUAL REPORT.—Not later than the first Mon-
day in February of each year, the Secretary of Defense 
shall submit to the congressional defense committees an 
annual report describing the activities of the Office in the 
preceding fiscal year and the goals of the Office for the 
next fiscal year. 
‘‘(j) CONGRESSIONAL
NOTIFICATION.—Not later 
than 30 days after the Director exercises the authority 
under subsection (f) to make a loan or equity investment 
or to provide a loan guarantee, insurance, or reinsurance, 
the Secretary of Defense shall notify the congressional de-
fense committees of such exercise of authority. 
‘‘(k) SUNSET.—The authorities provided under this 
section shall expire on October 1, 2028. 
‘‘(l) DEFINITIONS.—In this section: 
‘‘(1) CAPITAL ASSISTANCE.—The term ‘capital 
assistance’ means loans, loan guarantees, equity in-
vestments, or technical assistance provided under 
subsection (f). 
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ means— 
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‘‘(A) an individual; 
‘‘(B) a corporation, including a limited li-
ability corporation; 
‘‘(C) a partnership, including a public-pri-
vate, limited, and general partnership; 
‘‘(D) a joint venture, including a strategic 
alliance; 
‘‘(E) a trust; 
‘‘(F) a State, including a political subdivi-
sion or any other instrumentality of a State; 
‘‘(G) a Tribal government or consortium of 
Tribal governments; 
‘‘(H) any other governmental entity or 
public agency in the United States, including a 
special purpose district or public authority, in-
cluding a port authority; or 
‘‘(I) a multi-State or multi-jurisdictional 
group of public entities. 
‘‘(3) ELIGIBLE INVESTMENT.—The term ‘eligi-
ble investment’ means an investment that facilitates 
the efforts of the Office— 
‘‘(A) to identify, accelerate, and sustain 
the establishment, research, development, con-
struction, procurement, leasing, consolidation, 
alteration, improvement, or repair of tangible 
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