Media Contact 202-226-8467

Washington, D.C. – Today, House Foreign Affairs Committee Chairman Michael McCaul delivered the following remarks at a full committee markup in support of his bill, H.R. 8926, the DFC Modernization and Reauthorization Act of 2024. During his remarks, Chairman McCaul emphasized the important work the U.S. International Development Finance Corporation (DFC) does to advance our national security interests and counter malign influences – like the Chinese Communist Party (CCP) – who exploit developing nations.


— Remarks as delivered —

We are in a great power competition.
America’s soft power is key to fostering democracy and freedom, while also preventing the spread of authoritarianism around the globe.

A key component of our diplomatic efforts is to establish partnerships and work with countries around the globe to support development.

That is why the [U.S. International Development Finance Corporation] was actually established. 

I’m proud to have been a strong supporter of the [Better Utilization of Investments Leading to Development] Act. Mr. Yoho was here previously — he was the author of that Act — it established the DFC [and] it was designed to primarily counter China. 

The Development Finance Corporation is a critical component in countering the malign intentions of other countries to exploit developing nations, especially the Chinese Communist Party.

China’s Belt and Road initiative is a tool of economic coercion, employing debt trap diplomacy to ensnare nations [and] place them under the CCP’s influence.

This bill modernizes the DFC and maintains its development mandate.

But most importantly, it strengthens the DFC’s ability to further our national security interests, by allowing it to provide a better alternative to Russian projects and China’s Belt and Road Initiative.

[This] legislation also enacts an “equity fix” that adjusts how the DFC’s investments are accounted for.

This change will bring equity in line with Congress’ original intent, allowing the DFC to fully unleash its equity investment tool.

This will make the taxpayers’ money go further, as it allows the DFC to make more investments with the same amount of appropriated money.  

This legislation also expands country eligibility to allow the DFC to invest in an additional 34 countries.  

It also creates a waiver for the DFC to work in high-income areas and countries.

It allows the DFC to work in countries where China has already been active and to establish projects in those countries that advance our economic and national security interests.

I am pleased that this is a bipartisan bill.

I want to thank Ranking Member Meeks for his efforts to work with me to modernize the DFC to make it more competitive and effective around the globe. 

When I go to Africa, primarily, or Latin America we say, ‘Why are you doing business with China?’ And the answer is always, ‘Because [the United States is] not here.’

The United States is not there. 

This bill will allow the United States to be there and compete more effectively.