S.Amdt. 3766

The DFC Modernization and Reauthorization Act of 2025 is an amendment designed to update and extend the authorities of the Development Finance Corporation (DFC). Its primary purpose is to modernize how the Corporation manages investments, increases oversight, and aligns its financial activities with United States national security and foreign policy goals.

The amendment aims to change or add the following to the bill:

Investment Focus and Restrictions

• It creates new categories for countries based on income (less developed, advancing income, and high-income) and requires the Corporation to prioritize less developed countries.
• It strictly prohibits providing support to countries of concern, which include Belarus, China, Cuba, Iran, North Korea, Russia, and Venezuela.
• It sets specific rules for investing in high-income countries, including a cap where such support cannot exceed 8 percent of the Corporation's total contingent liability.

Management and Oversight

• It adds a Chief Strategic Investment Officer to handle national security matters and foreign investment.
• It mandates that Board meetings comply with the Government in the Sunshine Act and requires at least two public hearings per year.
• It establishes a Congressional Strategic Advisory Group and a Biennial Strategic Priorities Plan to ensure the Corporation's goals are coordinated with Congress.

Financial Authorities and Accountability

• It increases the maximum contingent liability of the Corporation to $200 billion.
• It creates a Corporate Equity Investment Fund with $3 billion authorized for appropriations from 2026 through 2030.
• It introduces an Impact Quotient to measure the actual development effect of projects and requires in-person site visits for high-risk projects.
• It implements protections to prevent usurious or abusive lending by intermediaries.

Other Additions

• It establishes a student internship program for United States citizens.
• It requires a report on the feasibility of creating development finance education at the Foreign Service Institute.
• It repeals the European Energy Security and Diversification Act of 2019.