U.S. International Development Finance Corporation DFC

The BUILD Act, signed on October 5, 2018, created the U.S. International Development Finance Corporation by merging the Overseas Private Investment Corporation, which had financed private investment abroad since 1971, with USAID's loan guarantee program. The DFC opened on December 20, 2019. It is led by a Chief Executive Officer and a board that includes the Secretary of State and other senior officials, and it is structured as a government corporation.

The DFC provides loans, loan guarantees, political risk insurance, and, unlike its predecessor, equity investments in private projects, focusing on low- and lower-middle-income countries. It has financed power plants, ports, telecommunications networks, health facilities, small business lending, and critical mineral projects. The BUILD Act allowed it to hold up to sixty billion dollars in total exposure, roughly double OPIC's limit, and it earns fees and interest that help cover its costs.

Congress created the DFC with bipartisan support largely to offer an alternative to China's Belt and Road lending, and it has increasingly financed projects tied to supply chains and strategic competition. Its authorization came up for renewal in 2025, prompting debate over raising its investment cap and broadening where it can invest. Supporters say it advances U.S. interests while turning a profit, while critics worry about financial risk to taxpayers and a drift away from helping the poorest countries.