The Trump administration is proposing a sweeping overhaul of the U.S. International Development Finance Corporation (DFC), aiming to quadruple its funding capacity and expand its mandate to include high-income countries. According to a proposal reviewed by Reuters, the plan would raise DFC’s spending authority from $60 billion to $250 billion, allowing the agency to make larger loans, equity investments, and guarantees while aligning more closely with U.S. national security goals.
The DFC, created in 2019 to support development projects in poorer nations, has historically focused on energy, critical minerals, and infrastructure in developing regions. The new proposal would allow it to fund projects in wealthier countries with greater flexibility and fewer congressional approvals. It also calls for adding the U.S. Defense Secretary to the DFC’s board, reflecting the agency’s growing role in strategic initiatives, including access to critical minerals.
Acting DFC head Dev Jagadesan said the changes would strengthen the agency’s ability to advance U.S. foreign policy and economic objectives. The proposal comes amid a review of DFC’s governing rules and the pending confirmation of Ben Black, Trump’s nominee to lead the agency. Black, son of Apollo Global Management co-founder Leon Black, has advocated prioritizing resource development, including in Greenland, over what he termed “virtue-signaling” green projects.
The DFC has committed $12 billion to projects across food, health, and energy in fiscal year 2024 and currently manages $49 billion in outstanding investments. It is also central to a new U.S.-Ukraine Reconstruction Investment Fund, which targets strategic sectors such as mining and hydrocarbons as part of broader U.S. support for Ukraine.
This expansion, if approved, would mark a significant shift in U.S. development finance strategy, prioritizing geopolitical competition and resource security.