DFC Modernization Act of 2025

Summary

Directs the U.S. International Development Finance Corporation (DFC) to take greater financial risk, use more financing and risk‑mitigation tools, and aggressively mobilize private capital in higher‑risk countries, sectors, and supply chains tied to U.S. foreign policy and national security goals. It creates a permanent Equity Investments Account to retain and revolve earnings from equity deals without further appropriation, changes governance and senior‑management roles at the Corporation, tightens rules on support for projects tied to certain “countries of concern,” and adjusts the Corporation’s contingent liability limit and program timelines.

• Directs DFC to increase risk tolerance and mobilize private capital in higher‑risk countries, sectors, and strategic supply chains.
• Creates a Treasury Equity Investments Account allowing DFC to retain and revolve equity earnings without further appropriation.
• Adds a statutory list of "countries of concern" and bars Title II support for projects controlled by governments or SOEs of those countries.
• Revises DFC governance and management: board composition changes, creates a presidentially appointed Vice Chair, consolidates officer reporting to the CEO, and revises CEO duties.
• Reduces the Corporation’s maximum contingent liability from $60B to $50B.
• Expands allowable uses of DFC fees to include project‑specific transaction costs and transfers to other accounts/reserves.
• Removes several statutory references to USAID and narrows certain interagency information sources; repeals a prior European energy law.
• Sets an explicit program termination date of December 31, 2031 for a previously time‑limited authority.