The DFC Modernization Act of 2025 would change the rules and management of the U.S. International Development Finance Corporation (DFC), which supports private investment in projects abroad. It would allow the DFC to take on more financial risk and raise its maximum contingent liability from $60 billion to $250 billion. It would increase the share of an investment that may be made as equity, and let the DFC reuse certain earnings and fees from equity investments.
The bill would limit DFC support in high-income countries unless the President certifies that it serves U.S. economic or foreign policy interests. It would also bar support for certain projects involving governments or state-owned businesses from listed countries of concern, and for projects involving private companies engaged in anticompetitive practices. Other changes cover DFC leadership, staffing, fees, and coordination with other agencies. The bill would reauthorize the DFC through December 31, 2031.
The bill focuses on DFC support for overseas projects, rather than services or payments to individuals in the United States. It could affect which projects the DFC supports and how it finances them. No publicly available information describes a direct effect on individual residents.
The bill does not specify a new appropriation. It would raise the DFC’s maximum contingent liability and allow certain collections from equity investments to remain available for DFC activities without further appropriation or a fiscal-year limit. These changes do not state how much the DFC would spend.
The bill states that DFC investment should help advance U.S. foreign policy, economic development, and national security goals. It says the DFC should mobilize private capital, support energy security, and offer alternatives to financing from strategic competitors, while accepting substantial risk when needed.
No publicly available information.