The U.S. development finance institution, which funds private sector development projects, may soon have an extended mandate and updates to its authorities that could allow it to work in more countries, take more risk, and better counter China’s economic development policies, with a key committee approving a bill to reauthorize the agency.
If the bill passes, it would double the U.S. International Development Finance Corporation’s investment cap to $120 billion, change accounting methods allowing the agency to make more equity investments, and also expand the number of countries where DFC can invest.
DFC was created in 2018 and its mandate will expire without a congressional extension next year. The House Foreign Affairs Committee hearing this week demonstrated that the effort to renew and update the agency has bipartisan support and that lawmakers want to act quickly.