DFC Modernization Act of 2025

The DFC Modernization Act of 2025 would modernize the U.S. International Development Finance Corporation (DFC) by allowing it to increase its risk tolerance to better mobilize private capital for U.S. foreign policy and national security goals. The bill permits DFC to use new tools like equity investments and partial guarantees, and to lend in high-risk countries or sectors, while restricting support for projects involving "countries of concern" like China, Russia, and Iran. It also increases DFC's maximum contingent liability from $60 billion to $250 billion and modifies the agency's management structure, including changes to its Board of Directors. This legislation would directly affect DFC's operations and the countries and private sector entities it works with, particularly by expanding its ability to invest in strategic areas while limiting support for certain geopolitical rivals. The bill aims to help the U.S. counter strategic competitors' influence in key sectors like infrastructure and critical supply chains.