This bill modifies budget treatment for equity investments made by the U.S. International Development Finance Corporation. Under current law, such equity investments are treated like grants for federal budgetary scoring, which requires the government to provide through appropriations the full amount that may be invested (i.e., dollar-for-dollar funding). The bill instead deems such equity investments a federal credit program. As a result, such investments are scored based on an estimated repayment rate, and appropriation of the full investment amount is not required.
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Timeline
Introduced in House
Referred to the House Committee on Foreign Affairs.
Introduced in House
Referred to the House Committee on Foreign Affairs.
International Affairs
Business investment and capitalFinancial services and investmentsForeign aid and international reliefGovernment corporations and government-sponsored enterprisesGovernment lending and loan guaranteesGovernment trust fundsPublic-private cooperationSecuritiesU.S. and foreign investments
To amend the Better Utilization of Investments Leading to Development Act of 2018 to facilitate increased equity investments under that Act.
USA116th CongressHR-7570| House
| Updated: 7/9/2020
This bill modifies budget treatment for equity investments made by the U.S. International Development Finance Corporation. Under current law, such equity investments are treated like grants for federal budgetary scoring, which requires the government to provide through appropriations the full amount that may be invested (i.e., dollar-for-dollar funding). The bill instead deems such equity investments a federal credit program. As a result, such investments are scored based on an estimated repayment rate, and appropriation of the full investment amount is not required.
Business investment and capitalFinancial services and investmentsForeign aid and international reliefGovernment corporations and government-sponsored enterprisesGovernment lending and loan guaranteesGovernment trust fundsPublic-private cooperationSecuritiesU.S. and foreign investments