US Congress Reauthorizes DFC and Raises its Credit Ceiling to $205B

The US Development Finance Corporation (DFC) has been reauthorized with a substantial increase in its credit limit to USD 205 billion, from USD 60 billion previously. Under the DFC Modernization and Reauthorization Act, the DFC is extended for another five years up to 31 December 2030, after it lapsed in October 2025.

The DFC Reauthorization was part of the National Defense Authorization Bill (S.1071). The House of Representatives voted and passed the Bill on 10 December 2025; the Senate cleared it on 17 December 2025; and President Donald Trump signed it into law on the following day of the18th December 2025.

The DFC is authorized to provide loan for a maximum 25-year term. It can also provide equity financing with a limit of 40% of the shareholding. DFC also provice political risk insurance against currency inconvertibility, expropriation, and political violence. For select projects, it can also support feasibility studies and technical assistance, although that is more the domain of the USTDA.

By statute, DFC can provide no more than 2.5% of its funding ($5B) to a single entity and will prioritize less-developed economies, while being barred from ‘countries of concern’ such as China and Iran.

Obviously, the financing must be in line with the Foreign Policy of the USA. Currently, the US is focusing on securing and diversifying its supply chain for Strategic Materials, including #CriticalMinerals, Agricultural Inputs and semiconductors.