DFC Modernization and Reauthorization Act of 2024

(1) by accepting a creditor status that is subordinate to that of other creditors;

(2) by guaranteeing loans up to 100 percent of principal as part of projects structured in compliance with the Better Utilization of Investments Leading to Development Act of 2018; and

(3) lending, investing, or offering insurance in high-risk countries, regions, or sectors as a means to achieve its mission to mobilize capital in underserved markets or segments.

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 following:

The term high-income country —

(A) means a country with a high-income economy, as defined by International Bank for Reconstruction and Development and the International Development Association (collectively referred to as the World Bank; but

(B) does not include a wealthy country.

(3) in paragraph (3) (as so redesignated) to read as follows:

The term less developed country means, with respect to a fiscal year for the Corporation, a country the per capita income of which at the start of such fiscal year is equal to or less than the then-current World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process.

(3) ; and

(4) 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 purpose of the Corporation as described in section 1412(b).

(C) ; and

(5) by adding at the end the following:

The term “upper-middle-income country” means, with respect to a fiscal year for the Corporation, a country the per capita income of which at the start of such fiscal year is greater than the then-current World Bank threshold for initiating the International Bank for Reconstruction and Development graduation process, and is equal to or less than the per capita income threshold defined as a high-income economy by the World Bank.

The term wealthy country means a country that is among the 40 countries with the highest gross domestic product per capita at purchasing power parity as calculated by the World Bank.

Section 1412 of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9612) is amended by striking subsection (c) and inserting the following:

The Corporation shall prioritize the provision of support under title II in less developed countries.

The Corporation may provide support under title II in an upper-middle-income country if, prior to providing the support, the Chief Executive Officer certifies in writing to the appropriate congressional committees that such support—

(i) is designed to produce significant developmental outcomes or provide developmental benefits to the poorest population of such country; and

(ii) furthers the national economic or foreign policy interests of the United States.

The Corporation may provide support under title II in a high-income country, subject to following conditions:

(i) With respect to support for all projects in such countries, the aggregate amount of such support may not exceed 10 percent of the maximum contingent liability of the Corporation authorized to be outstanding pursuant to section 1433.

(ii) With respect to support for any single project in such a country—

(I) the Corporation shall seek to minimize its support to a level necessary to achieve the development and foreign policy goals of the United States;

(II) the Chief Executive Officer shall certify to the appropriate congressional committees that the Corporation has made all reasonable efforts to ensure that—

(aa) the support is a preferred alternative to state-directed investments by foreign countries of concern or otherwise furthers the strategic interest of the United States to counter or limit the influence of foreign countries of concern;

(bb) private sector entities have been afforded an opportunity to support the project on viable terms in lieu of support by the Corporation; and

(cc) the support is designed to produce significant developmental outcomes or provide developmental benefits to the poorest population of such country.

Not later than 120 days after the date of the enactment of this subsection, and annually thereafter, the Corporation shall submit to the appropriate congressional committees a list of all high-income countries in which the Corporation anticipates providing support in the subsequent fiscal year, and, to the extent practicable, a description of the type of projects anticipated.

In this subsection, the term foreign country of concern has the meaning given that term in section 231.102 of title 15, Code of Federal Regulations.

Section 1413(b)(2)(A)(iii) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9613(b)(2)(A)(iii)) is amended by striking 5 individuals each place it appears and inserting 3 individuals.

Section 1413(f)(1) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9613(f)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking who— and inserting who shall be removable only by a majority vote of the Board.; and

(2) by striking subparagraphs (A) and (B).

Section 1413(g) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9613(g)) is amended—

(1) in paragraph (1)—

(A) in the matter preceding subparagraph (A), by striking who— and inserting who shall be removable only by a majority vote of the Board.; and

(B) by striking subparagraphs (A) and (B); and

(2) in paragraph (2)(B), by striking under the guidance of the Chief Executive Officer,.

Section 1413(h)(2) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9613(h)(2)) is amended—

(1) in subparagraph (A), by striking 50 and inserting 100; and

(2) in subparagraph (D)—

(A) by inserting not to exceed 20 percent of its before officers and employees; and

(B) by striking appointed under subparagraph (A).

Section 1413 of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9613) is amended by adding at the end the following:

The Chief Executive Officer shall appoint a Vice President for Foreign Policy and National Security, from among individuals with experience in foreign policy or national security matters.

The Vice President shall—

(A) advise the Chief Executive Officer and Deputy Chief Executive Officer on foreign policy matters;

(B) in addition to the Chief Executive Officer and the Deputy Chief Executive Officer, represent the Corporation in the interagency national security and foreign planning process;

(C) work with other relevant Federal agencies to identify projects that advance United States foreign policy interests;

(D) manage employees that are dedicated to ensuring that the Corporation’s activities advance United States foreign policy and national security interests and diplomatic strategy, including through—

(i) long-term strategic planning;

(ii) issue and crisis management; and

(iii) the advancement of foreign policy initiatives;

(E) foster and maintain relationships within the Corporation and external to the Corporation that increase the capacity of the Corporation to achieve its mission to advance United States foreign policy and national security interests; and

(F) coordinate within the Corporation to ensure United States foreign policy and national security interests are considered together with the Corporation’s development goals.

Section 1421(c) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9621(c)), as amended by this title, is further amended by adding at the end the following:

Subject to subparagraphs (B) and (C), support provided under paragraph (1) with respect to a project shall be subject to the Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) for purposes of applying the requirements of such Act to such support.

For purposes of section 502(5) of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a(5)) the cost of support provided under paragraph (1) with respect to a project shall be the net present value, at the time when funds are disbursed to provide the support, of the following estimated cash flows:

(I) The purchase price of the support.

(II) Dividends, redemptions, and other shareholder distributions during the term of the support.

(III) Proceeds received upon a sale, redemption, or other liquidation of the support.

(IV) Adjustments for risk of estimated losses, if any.

The estimated cash flows described in subclauses (I) through (IV) of clause (i) shall include the effects of changes in terms resulting from the exercise of options included in the agreement to provide the support.

When the estimated cost of support provided under paragraph (1) with respect to a project made in a single fiscal year is reestimated in a subsequent year, the difference between the reestimated cost and the previous cost estimate shall be paid from, or transferred to, the balances available in the Corporate Capital Account established under section 1434.

Section 1421 of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9621) is amended by adding at the end the following:

The Corporation may accept a creditor status that is subordinate to that of other creditors, if the Corporation—

(A) has determined that an acceptable level of risk of non-payment or under-payment has been established; and

(B) provides to the appropriate congressional committees—

(i) notice of the determination of an acceptable level of risk of non-payment or under-payment; and

(ii) the information required by paragraph (2).

The information required by this paragraph includes—

(A) the amount of each such financial commitment;

(B) an identification of the recipient or beneficiary; and

(C) a description of the project, activity, or asset and the development goal or purpose to be achieved by providing support by the Corporation.

Section 1424(a) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9624) is amended by striking 7 years after the date of the enactment of this Act and inserting 7 years after the date of the enactment of the DFC Modernization and Reauthorization Act of 2024.

Section 1432(a) of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9632(a)) is amended—

(1) in paragraph (2), by striking division C of subtitle I of; and

(2) in paragraph (10), by striking until the expiration of the current lease under predecessor authority, as of the day before the date of the enactment of this Act.

Section 1433 of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9633) is amended by striking $60,000,000,000 and inserting $120,000,000,000.

Section 1434 of the Better Utilization of Investments Leading to Development Act of 2018 (22 U.S.C. 9634) is amended—

(1) in subsection (d)—

(A) in paragraph (1)—

(i) in subparagraph (B), by adding and at the end;

(ii) in subparagraph (C), by striking the semicolon at the end and inserting a period; and

(iii) by striking subparagraph (D); and

(B) in paragraph (2)—

(i) in subparagraph (B), by striking “and” at the end;

(ii) in subparagraph (C), by striking the period at the end and inserting a semicolon; and

(iii) by adding at the end the following:

(D) project-specific transaction costs; and

(E) transfers and additions to such other accounts, funds, or reserves as the Corporation may establish, at such time and in such amounts as the Board may determine.

(iii) ; and

(2) in subsection (k)—

(A) in paragraph (1), by inserting other direct costs associated with origination or monitoring services, including seminars, conferences, and other preinvestment services, after legal expenses,; and

(B) in paragraph (2), by striking does not include and inserting includes.

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.