The DFC Modernization Act of 2025 updates and expands the authorities of the U.S. International Development Finance Corporation (DFC), a government agency that provides loans, investments, and insurance to support development and advance U.S. foreign policy interests abroad. The bill directs the DFC to take on greater financial risks and tolerate losses when necessary to unlock private sector investment, particularly in strategic areas like infrastructure, critical minerals, and energy security. It also expands the DFC's ability to invest in high-income countries (with presidential approval) and explicitly prohibits the agency from supporting projects involving state-owned enterprises or governments from countries designated as strategic competitors, including China, Russia, Iran, North Korea, Venezuela, Cuba, and Belarus. Key structural changes include increasing the DFC's maximum contingent liability from $60 billion to $250 billion, raising the equity investment limit from 30 to 49 percent, establishing a revolving equity investment account, expanding the Board of Directors, and removing the Chief Development Officer position. The bill extends the DFC's authorization through December 31, 2031, and is intended to position the DFC as an alternative to financing from strategic competitors while advancing U.S. economic and national security interests.
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