The BUILD Act
“The President’s signature launches a new era for development finance. With more tools, more flexibility and more running room – the United States will be able to have even greater impact.”
Ray W. Washburne, President & CEO, OPIC
A New Era in U.S. Development Finance
OPIC to begin transition to the U.S. International Development Finance Corporation
President Trump signed the Better Utilization of Investments Leading to Development (BUILD) Act into law on October 5, 2018. This landmark legislation will reform and strengthen U.S. development finance capabilities into a new federal agency to help address development challenges and foreign policy priorities of the United States.
The U.S. International Development Finance Corporation (“USDFC”) will be a modern, consolidated agency that brings together the capabilities of OPIC and USAID’s Development Credit Authority, while introducing new and innovative financial products to better bring private capital to the developing world. The U.S. will have more flexibility to support investments in developing countries to drive economic growth, create stability, and improve livelihoods.
The USDFC will make America a stronger and more competitive leader on the global development stage, with greater ability to partner with allies on transformative projects and provide financially-sound alternatives to state-directed initiatives that can leave developing countries worse off.
Under the law, the President will soon submit a reorganization plan to Congress to begin the consolidation of the agencies involved. It is anticipated that USDFC could be operational as of October 1, 2019. In the interim, OPIC and DCA will operate without interruption and will work cooperatively on the work of building the USDFC.
OPIC President and CEO Ray W. Washburne discusses how the BUILD Act will help U.S. business invest in emerging markets:
|OPIC PRESIDENT'S STATEMENT AS BUILD ACT IS SIGNED INTO LAW||WASHBURNE TESTIMONY TO CAPITOL HILL||WHITE HOUSE 2018 NATIONAL SECURITY STRATEGY|
|The White House announced its support for the BUILD Act as a "recognition of the growing role development finance will pla to meet development needs and advance U.S. interests."||In his remarks to the Senate Foreign Relations Committee, Mr. Washburne discusses the proposal to improve efficiences, advance U.S. foreign policy goals, and reform development finance with the BUILD Act.||The Administration's new National Security strategy "will shift away from a reliance on assistance based on grants to approaches that attract private capital and catalyze private sector activity."|
|SECRETARY MATTIS REMARKS AT THE 2018 SHANGRI-LA DIALOGUE||CONGRESSIONAL BUDGET JUSTIFICATION FOR FY 2019||SECRETARY POMPEO REMARKS AT INDO-PACIFIC FORUM|
|In his remarks, Secretary Mattis discusses the need for greater private sector-led economic development in the Indo-Pacific and the role of DFIs to enable the U.S. to be better and more responsive.||The FY19 Congressional Budget Justification explains the consolidation of various U.S. Government development finance functions to create a new stand-alone DFI with linkages to foreign policy and development goals and the budget associated with those changes.||In remarks at the U.S. Chamber of Commerce Indo-Pacific Business Forum, Secretary Pompeo discusses importance of development finance to help American firms become a force for prosperity and good throughout the Indo-Pacific region.|