II 117th CONGRESS 2d Session S. 5246 IN THE SENATE OF THE UNITED STATES December 13, 2022 Mr. Rubio introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To establish a National Development Strategy, and for other purposes.

1. Short title This Act may be cited as the National Development Strategy and Coordination Act of 2022 . 2. Definitions In this Act: (1) Appropriate congressional committee The term appropriate congressional committee means— (A) the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance, the Committee on Commerce, Science, and Transportation, and the Select Committee on Intelligence of the Senate; and (B) the Committee on Financial Services, the Committee on Energy and Commerce, and the Permanent Select Committee on Intelligence of the House of Representatives. (2) Country of concern The term country of concern means— (A) the People’s Republic of China and any other foreign government or foreign non-government person determined to be a foreign adversary under section 7.4 of title 15, Code of Federal Regulations, or any successor regulation; or (B) any country determined by the Secretary of Commerce, in consultation with the United States Trade Representative, the Secretary of Defense, and the Director of National Intelligence, to have inadequate safeguards in place to protect United States funds (or intellectual property developed using such funds) from theft or transfer to a foreign government or foreign non-government person described in subparagraph (A). (3) Entity of concern The term entity of concern means— (A) an entity headquartered in a country of concern; (B) an entity that is more than 25-percent owned by individuals or entities in countries of concern; (C) an entity on the list of specially designated nationals and blocked persons maintained by the Office of Foreign Assets Control of the Department of the Treasury (commonly referred to as the SDN list ); (D) an entity on the Non-SDN Chinese Military-Industrial Complex Companies List— (i) established pursuant to Executive Order 13959 ( 50 U.S.C. 1701 note; relating to addressing the threat from securities investments that finance Communist Chinese military companies), as amended before, on, or after the date of the enactment of this Act; and (ii) maintained by the Office of Foreign Assets Control; (E) a Chinese military company on the list required by section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 ( Public Law 116–283 ; 10 U.S.C. 113 note); (F) an entity on the Entity List maintained by the Bureau of Industry and Security of the Department of Commerce and set forth in Supplement No. 4 to part 744 of title 15, Code of Federal Regulations, or any successor regulation; (G) an entity that produces equipment or services on the list of communications equipment and services that pose an unacceptable risk to the national security of the United States or the security and safety of United States persons maintained by the Federal Communications Commission under section 2 of the Secure and Trusted Communications Networks Act of 2019 ( 47 U.S.C. 1601 ); or (H) any entity that is majority owned or controlled by, or under common ownership or control with, an entity described in any of subparagraphs (A) through (G). 3. Establishment of the Interagency Committee for the coordination of National Development Financing Programs (a) Establishment There is established in the Executive Office of the President a Committee to be known as the Interagency Committee for the Coordination of National Development Financing Programs (referred to in this Act as the Committee ). (b) Membership (1) Composition The Committee shall consist of the following members: (A) The Secretary of Transportation or a designee of the Secretary. (B) The Secretary of Energy or a designee of the Secretary. (C) The Secretary of Commerce or a designee of the Secretary. (D) The Secretary of Labor or a designee of the Secretary. (E) The Secretary of the Treasury or a designee of the Secretary. (F) The Administrator of the Small Business Administration or a designee of the Administrator. (G) The Secretary of Defense or a designee of the Secretary. (H) The Director of National Intelligence or a designee of the Director. (I) The Secretary of Agriculture or a designee of the Secretary. (J) The United States Trade Representative or their designee. (K) The Chair of the Board of Governors of the Federal Reserve or a designee of the Chair, who shall serve as a nonvoting member. (L) The Secretary of the Treasury or a designee of the Secretary, who shall serve as the chair of the Committee. (2) Tie vote In the event of a tie vote, the vote of the chair of the Committee shall serve as the tie-breaker. (c) Duties The Committee— (1) shall submit to Congress the National Development Strategy described in subsection (d); (A) not later than 1 year after the date of enactment of this Act; and (B) not later than 1 year after January 20, 2024, and every 4 years thereafter, and in each such year not earlier than the latest date on which the budget of the President may be submitted to Congress under section 1105(a) of title 31, United States Code, submit to Congress the National Development Strategy described in subsection (d); and (2) shall identify economic sectors of the United States, regions of the United States, and, as necessary and supported by substantial evidence, projects or partnerships that advance the goals of the National Development Strategy described in subsection (d), to which financing assistance should be prioritized by member agencies of the Committee and should be provided or supported by the Federal Financing Bank. (d) National Development Strategy The Committee shall develop a publicly available (except for an allowable classified annex) National Development Strategy, which shall— (1) identify and address vulnerabilities in United States supply chains in industries critical to national security; (2) identify and address vulnerabilities and shortfalls in domestic manufacturing capabilities that threaten the ability of the United States to maintain a global advantage in innovation and manufacturing; (3) identify weaknesses and discuss opportunities to strengthen the broad industrial base of the United States, which may include— (A) strengthening supply chain resiliency; (B) supporting industries critical for the national security; (C) developing technologies that provide scientific or commercial value to the United States; (D) supporting job growth and development of critical manufacturing capabilities within the United States workforce; (E) supporting the development and adoption of innovative resource extraction technologies, including for renewable energy; and (F) supporting job growth and economic development in critical industries in communities designated as qualified opportunity zones under section 1400Z–1 of the Internal Revenue Code of 1986; (4) identify industries and regions in the United States that require assistance in order to address vulnerabilities and advance the goals described in paragraphs (1), (2), and (3); and (5) outline a strategic plan to promote investment in the industries described in paragraph (4), which shall include— (A) an estimate of the amount and nature of public financing needed to achieve the goals and address vulnerabilities described in paragraphs (1), (2), and (3); (B) an inventory of all Federal programs in existence as of the date of the National Development Strategy that are capable of providing the financing described in subparagraph (A), the level of investment from each such Federal program in the preceding 5-year period, and a detailed description of how each such program is advancing development goals in the United States; (C) recommendations as to how Federal agencies may, under existing Federal authorities, leverage and attract private investment to accomplish the goals described in this subsection; (D) recommendations, if applicable, on any changes to Federal financing programs, including changes to how financing decisions are prioritized or creation of new financing programs, that may be needed to advance the goals of the National Development Strategy; (E) directives to the Federal Financing Bank to accomplish the goals of the National Development Strategy; and (F) performance metrics to evaluate and monitor projects supported by the Federal Financing Bank in alignment with the National Development Strategy. (e) Advice and input The Committee shall seek the advice and input of industry partners, manufacturing policy experts, State and local development officials, and manufacturing worker interests when preparing the National Development Strategy described in subsection (d), including by— (1) holding not less than 4 public hearings per year, either virtually or in-person, during which industry representatives, worker groups, and regional representatives can provide insight into strategic development prioritization; and (2) establishing an Industry Advisory Board of not more than 10 members appointed by the President, which shall include— (A) an expert in industry competitiveness and national security; (B) a manufacturing trade association representative; (C) a representative of small business government contractors; (D) a manufacturing worker representative; (E) a representative from a private investment firm investing in critical industries and frontier technology; and (F) such other representatives as the President may appoint. (f) Assessment of National Development Strategy In January of each year in which the Committee does not submit a new National Development Strategy as required under subsection (d), the Committee shall submit to the appropriate congressional committees an assessment of the most recently published National Development Strategy, which shall include— (1) an accounting of any new investments made by the Federal Financing Bank or member agencies of the Committee in the preceding year, including ZIP Code, North American Industry Classification System code, and financing stage; (2) the performance of such investments, in accordance with performance metrics established by the Committee; (3) an assessment of the implementation of the National Development Strategy, including an assessment by each agency represented on the Committee, supported by sufficient evidence, of steps taken to align such agencies’ financing, research, and development activities with the goals of the National Development Strategy; and (4) a determination on whether or not an update is needed to the National Development Strategy as a result of a change in assumptions, geopolitical dynamics, or other factors. (g) Memorandum of coordination with Federal agencies engaged in investment and financing activities Not later than 1 year after the date of enactment of this Act, the Committee shall negotiate a memorandum of understanding among the Federal agencies represented on the Committee, which shall— (1) establish procedures for— (A) aligning their respective investment and financing authorities to ensure maximum efficiency and comply with the goals of the National Development Strategy; (B) resolving conflicts in cases of overlapping jurisdiction between their respective agencies; and (C) avoiding conflicting or duplicative operation of services. (2) be reviewed and updated annually in coordination with the submission of the assessment outlined in subsection (f). (h) Meetings The Committee shall meet regularly and as required by the President, but not less frequently than annually. (i) Strategic alignment Each Federal agency represented on the Committee shall— (1) consult on a regular basis the most recently published National Development Strategy described in subsection (d); and (2) to the extent practicable, give priority consideration to projects that align with the goals of the National Development Strategy when engaged in financing, research, and development activities. 4. Requirements of the Federal Financing Bank relating to the National Development Strategy (a) In general The Federal Financing Bank Act of 1973 ( 12 U.S.C. 2281 et seq. ) is amended by adding at the end the following: 21. Functions with respect to the Committee (a) In general The Bank shall carry out any directives made to the Bank by the Interagency Committee for the Coordination of National Development Financing Programs pursuant to subsections (c)(2) and (d)(5)(E) of section 3 of the National Development Strategy and Coordination Act of 2022 . (b) Activities Pursuant to subsection (a), the Bank is authorized, upon direction by the Interagency Committee for the Coordination of National Development Financing Programs, to— (1) issue securities that are backed by financing assistance through any member agency of the Committee; (2) purchase from the private market loans or other debt or equity instruments guaranteed in whole or in part by any member agency of the Committee; and (3) participate in agency loans or loan guarantees in an amount less than 100 percent of the principal amount of financing. (c) Purchase not for resale As directed by the Interagency Committee for the Coordination of National Development Financing Programs in accordance with the National Development Strategy established under section 3(d) of the National Development Strategy and Coordination Act of 2022 , the Bank may, as necessary, purchase not for resale to the private market any loans or other debt or equity instruments described in subsection (b)(2). 22. Secondary market operations Except as otherwise provided in the National Development Strategy and Coordination Act of 2022 , obligations purchased by the Bank may be resold in the secondary market in a similar manner to secondary market sales of Treasury notes. 23. Ombudsman The Board of Directors of the Bank shall designate an official as the Ombudsman who shall— (1) review investments made by the Bank on projects or partnerships identified by the Interagency Committee for the Coordination of National Development Financing Programs; (2) review the risk profiles and performance of any such projects or partnerships; (3) provide oversight relating to any such projects or partnerships; and (4) provide annually to the appropriate congressional committees a report detailing investments made by the Bank in projects or partnerships identified by the Committee described in paragraph (1), the performance of such investments, and any new or existing investments that may present cause for concern regarding the potential of repayment or lack of alignment with strategic directives. . (b) Federal Credit Reform Act If the Committee determines that a project or partnership receiving financial assistance through any member agency is investing in frontier technologies for which no reasonable market comparison exists, obligations purchased in connection with such project or partnership by the Federal Financing Bank under section 21 of the Federal Financing Bank Act of 1973, as added by subsection (a) of this section, shall not be subject to the Federal Credit Reform Act of 1990 ( 2 U.S.C. 661 et seq. ). 5. Authorization of appropriations for the Federal Financing Bank (a) In general There is authorized to be appropriated to the Federal Financing Bank, to remain available for 10 years after the date of distribution, to carry out projects and partnerships selected by the National Development Strategy established under section 3(d) of this Act— (1) for fiscal year 2023, $5,000,000,000; (2) for fiscal year 2024, $5,000,000,000; (3) for fiscal year 2025, $5,000,000,000; and (4) for fiscal year 2026, $5,000,000,000; (b) Set aside Not more than 2 percent of funds appropriated under this section shall be utilized for administrative costs, including the hiring of new staff to oversee and accomplish the functions of the Federal Financing Bank. (c) Sense of Congress It is the sense of Congress that the Federal Financing Bank should use amounts appropriated under this section as soon as possible. 6. Prohibitions and policy (a) Prohibition No funding or authorities provided under this Act may be used to support projects or partnerships with any entity of concern. (b) Policies Not later than 180 days after the date of enactment of this Act, the Committee shall establish policies to ensure that any support to projects or partnerships provided by the Federal Financing Bank in accordance with this Act— (1) includes assurances that no support provided in such project or partnership shall be used to expand operations in a country of concern; (2) includes protections to ensure against transfer of intellectual property to countries of concern; and (3) includes requirements that any firm participating in a project or partnership funded by this Act disclose any affiliate, parent company, or subsidiary located in a country of concern.