Dear Leader Thune, Speaker Johnson, Leader Schumer, and Leader Jeffries:
The U.S. Chamber of Commerce supports the reauthorization of the U.S. International Development Finance Corporation (DFC), which advances U.S. strategic and economic interests in emerging markets. While the Chamber strongly supports long-term reauthorization, Congress should quickly pivot to a short-term reauthorization if doing so is necessary to avert a shutdown of the agency, whose authorization is currently set to expire in October.
The DFC has demonstrated its ability to leverage the U.S. private sector’s expertise and investment capital to support strategic investments around the world. It fosters economic development, supports U.S. geopolitical interests, and operates in a self-sustaining manner—at no cost to the American taxpayer. The agency has shown a consistent focus on measurable strategic and economic policy objectives.
In addition to reinforcing American prosperity by supporting exports, the DFC advances the U.S. national interest as an economic statecraft tool to respond to challenges posed by strategic competitors. Since its establishment in 2018, the DFC has provided new development finance options to respond to Chinese programs such as its “One Belt, One Road” initiative. For example, the DFC is helping to reduce U.S. dependencies on Chinese critical minerals and rare earth elements by supporting new, independent mining and processing operations.
The DFC helps expand access to energy to drive development and promote economic growth and job creation in the United States. Its investments have helped reduce the dependence of U.S. allies on Russian natural gas. It has also facilitated investments that fortify Ukraine’s electricity infrastructure.
The DFC is also active in the health sector, where it mobilizes private capital in projects that expand access to quality healthcare. The benefits to the U.S. economy in these activities are substantial given the many world-beating U.S. companies in the sector, and these programs help ensure the world is better prepared to contain chronic disease and potential health crises in the future. The agency has increased access to affordable, high-quality healthcare in Africa, including via investments in relevant technology infrastructure and medical supply chains.
Reauthorizing the DFC will advance U.S. interests abroad and send a strong signal that the United States is a reliable and long-term partner for economic growth. The Chamber urges Congress to enact a long-term reauthorization of the DFC, including core provisions such as increasing the Maximum Contingent Liability cap; assessing country eligibility criteria; and expanding equity, political risk insurance and loan guarantee capacity. If more time is necessary to assess these issues, Congress should approve a short-term reauthorization to avert a lapse in the agency’s authorization on October 6.
