T he Overseas Private Investment Corporation (OPIC) is a wholly owned U.S. government corporation that seeks to promote economic growth in less developed economies through the mobilization of private capital, in support of U.S. foreign policy goals. It is often referred to as the U.S. government's development finance institution (DFI). OPIC's enabling legislation is the Foreign Assistance Act of 1961 (P.L. 87-195), as amended. The Foreign Assistance Act provides OPIC with authority to conduct its activities for a renewable period of time (see Appendix A ). Over the past several years, Congress has extended OPIC's authority through appropriations law. Most recently, an FY2017 continuing resolution extended OPIC's authority through April 28, 2017 ( P.L. 114-254 ). The Foreign Assistance Act directs OPIC to "mobilize and facilitate the participation of United States private capital and skills in the economic and social development of less developed countries and areas, and countries in transition from nonmarket to market economies ... under the policy guidance of the Secretary of State." OPIC works to fulfill its mandate by providing political risk insurance, project and investment funds financing, and other services to promote U.S. direct investment overseas. Its services are intended to mitigate the risks affecting U.S. international investment, such as political risks (including currency inconvertibility, expropriation, and political violence), for U.S. firms making qualified investments overseas. OPIC characterizes itself as "demand-driven," providing services based on user interest. OPIC's activities may support U.S. exports, and it is involved in U.S. trade promotion interagency processes and initiatives. Congress does not approve individual OPIC projects, but has authorization, appropriations, oversight, and other legislative responsibilities related to the agency and its activities. Congress authorizes OPIC's ability to conduct its credit and insurance programs for a period of time that it chooses; can amend or change its governing legislation as it deems appropriate; and approves an annual appropriation for OPIC that sets an upper limit on the agency's administrative and program expenses, which are covered by OPIC's own funds. The Senate confirms presidential appointments to OPIC's Board of Directors and to the OPIC positions of president and executive vice president. The 115 th Congress may take up a number of issues related to OPIC, chief of which could be whether to renew OPIC's authority and, if so, under what terms. Congress also may examine OPIC's financial product offerings, policies, activity composition, and organizational structure, among other issues. This report is structured into three parts: (1) OPIC background; (2) international context for development finance; and (3) key issues for Congress related to OPIC. The U.S. government's role in overseas investment financing predates the formal establishment of OPIC. The Foreign Assistance Act of 1961 (P.L. 87-195) authorized the President to issue investment guarantees to support economic development overseas until June 30, 1964. Annual Foreign Assistance Acts for 1964-1968 extended this authority on a single-year basis. Then, in the Foreign Assistance Act of 1969 (P.L. 91-175), Con gress established OPIC in law, authorizing it until June 30, 1974. OPIC began operations in 1971 as a development finance institution amid an atmosphere of congressional disillusionment overall with U.S. aid programs, especially large infrastructure projects. In his first message to Congress on aid, President Nixon recommended the creation of OPIC to assume the investment guaranty and promotion functions that were being conducted by the U.S. Agency for International Development (USAID). President Nixon also directed that OPIC would provide "businesslike management of investment incentives" to contribute to the economic and social progress of developing nations. In creating OPIC, the Nixon Administration indicated that it was not attempting to end official U.S. foreign assistance, because "private capital and technical assistance cannot substitute for government assistance programs," a combination that can provide "official aid on the one hand, and private investment and technical assistance on the other." Private investment activities, however, were meant to complement the official assistance programs and, thereby, multiply the benefits of both. In addition, market-oriented private investment was viewed as an antidote to the government-oriented aid projects that were considered by some to be costly and inefficient. OPIC was created as a first step in the eventual overhaul of the entire U.S. aid program. In 1973, this overhaul was completed, as the United States largely abandoned infrastructure building and other large capital projects in favor of humanitarian aid to meet basic human needs. OPIC operates on a renewable basis under the Foreign Assistance Act of 1961, as amended (22 U.S.C. §2191 et seq . ). The Foreign Assistance Act includes a provision authorizing OPIC to perform certain functions until its sunset date, which Congress has periodically extended. That provision, in 22 U.S.C. §2195(a)(2), currently states, "The authority of subsections (a), (b), and (c) of section 2194 of this title [political risk insurance, loan guarantees, and direct loans, respectively] shall continue until September 30, 2007." This sunset date reflects the last extension of OPIC's authority on a multi-year basis; the OPIC Amendments Act of 2003 ( P.L. 108-158 ) extended OPIC's authority for nearly four years until September 30, 2007. Since 2007, OPIC generally has continued operating based on extensions of its authority in appropriations law, which OPIC has characterized as authorization "waivers." (One exception was a six-month period in 2008 when its authority lapsed.) These "waivers" have occurred through consolidated appropriations acts and continuing resolutions (CRs). For instance, Section 7061(b) of the FY2016 Consolidated Appropriations Act extended OPIC's authority until September 30, 2016; it stated, "Notwithstanding section 235(a)(2) of the Foreign Assistance Act of 1961, the authority of subsections (a) through (c) of section 234 of such Act shall remain in effect until September 30, 2016" ( P.L. 114-113 ). FY2017 CRs subsequently extended OPIC's authority, most recently through April 28, 2017. OPIC categorizes its operations into three main programs—insurance, finance, and investment funds—that are intended to promote U.S. private investment in less developed countries by mitigating risks, such as political risks, for U.S. firms making qualified investment overseas. OPIC's authority to guarantee and insure U.S. investments abroad is backed by the full faith and credit of the U.S. government and OPIC's own financial resources. While private sector markets exist for financing and insuring U.S. direct investment overseas, there may be gaps in them due to "market failures" such as imperfect information, barriers to entry, risk levels, and financial crises. OPIC's primary objective in operating its programs is to promote economic development in low-income countries by supporting investment in projects, economic sectors, regions, and countries that are underserved by private markets; and mobilizing private investment in countries with viable project environments, but low credit ratings. For example, individual firms may attach more risk to investing in developing economies due to imperfect information and, thus, be unwilling to commit resources to investments in the least developed countries without risk mitigation by OPIC through its programs. OPIC provides political risk insurance to safeguard investments against certain political risks involved in investing in developing countries in three broad areas: Currency inconvertibility coverage compensates investors if new currency restrictions are imposed which prevent the conversion and transfer of remittances from insured investments, but does not protect against currency devaluation. Expropriation coverage protects U.S. firms against the nationalization, confiscation, or expropriation of an enterprise, including actions by foreign governments that deprive an investor of fundamental rights or financial interests in a project for a period of at least six months. This coverage excludes losses that may arise from lawful regulatory or revenue actions by a foreign government and actions instigated or provoked by the investor or foreign firm. Political violence coverage compensates U.S. citizens and firms for property and income losses directly caused by various kinds of violence, including declared or undeclared wars, hostile actions by national or international forces, civil war, revolution, insurrection, and civil strife (including politically motivated terrorism and sabotage). Income loss insurance protects the investor's share of income from losses that result from damage to the insured property caused by political violence. Assets coverage compensates U.S. citizens and firms for losses of or damage to tangible property caused by political violence. OPIC also has a number of special programs that protect U.S. banks from political violence. This type of insurance reduces risks for banks and other institutional investors, which allows them to play a more active role in financing projects in developing countries. Specialized types of insurance coverage also are available for U.S. investors involved with certain contracting, exporting, licensing, or leasing transactions that are undertaken in a developing country. OPIC provides political risk insurance with terms of up to $250 million per project for up to 20 years, with premium rates guaranteed for the life of the contract. OPIC can insure up to 90% of a qualifying investment; OPIC's enabling legislation generally requires that investors bear at least 10% of the risk of loss.