Ranking Member Lee Statement at Fiscal Year 2025 Budget Request for the United States International Development Finance Corporation

Congresswoman Barbara Lee (D-CA-12), Ranking Member of the State, Foreign Operations, and Related Programs Subcommittee, delivered the following remarks at the Subcommittee’s hearing on the fiscal year 2025 budget request for the United States International Development Finance Corporation:

- As Prepared For Delivery - 

Thank you, Mister Chairman. It has been a number of years since we have gotten the opportunity to do a hearing with the United States International Development Finance Corporation, or DFC, so Mr. Nathan, I welcome you today.

In 2018, there was a recognition that many of our partners overseas were clamoring not just for aid, but for partnership. Countries were seeking support from the United States to build their private sector and expand growth and opportunity to their citizens in a sustainable, broad-based way. Other donor nations had created development finance institutions in the preceding decades, but the United States’ tools were outdated and and not up to the demand. The result was the BUILD Act and creation of the DFC.

Mr. Nathan, I hope we can spend some time this morning on how DFC is living up to its statutory requirement to mobilize private sector capital for “highly developmental” economic development projects in less developed countries.

As the new agency on the block, there are many demands for the unique tools DFC is able to employ. I fully expect you are being pulled in many directions, but I am here to remind you of that original mandate and ask how the DFC holds itself accountable to do the hard work of assisting the private sector to take the leap into countries and industries with great promise, but may be less well-known or considered more risky because of their environment or neighbors.

When I travel to Africa or small island states such as in the Caribbean, I meet with government, civil society and the private sector. And across the board, they tell me that they want to partner with the United States. They understand the risks of agreeing to the deal terms being offered by China or Russia and are looking for an alternative.

But the United States has been slow and risk averse in helping these countries build their own economies. It will always take more work and attention to support the private sector in these countries. But this is what the DFC was created to do. I was pleased to see the FY25 budget request plan for more investment in deal orgination, compliance and monitoring and evaluation.

I would be interested to hear from you about the challenges DFC faces in doing more deals with low income countries and how you are addressing those challenges. How is DFC tracking the poverty reduction impacts of its investments? Even in upper middle countries, DFC investments are required by the BUILD Act to be geared toward reaching those most in need and fighting poverty.

The United Nations estimates that more than $4 trillion dollars will be needed to achieve the Sustainable Development Goals by 2030. These needs won’t be met through donor good intentions or multilateral finance alone. Getting the private sector involved as a partner in putting many low-income countries on the path toward greater growth and sustainability is our only chance. Mr. Nathan, again thank you for your testimony this morning. I am looking forward to this conversation. I yield back.