According to a proposal from the White House, the Trump administration wants to give the U.S.’s main development agency greater freedom to fund projects in high-income nations. They also aim to double its spending capacity and make it more focused on national security, a shift that signals a significant change in the agency’s mission.
The DFC national security funding proposal marks a major departure for the U.S. International Development Finance Corporation (DFC), a modest institution traditionally focused on supporting impoverished countries by financing environmentally friendly and resource development projects.
As detailed in the proposal, the DFC’s total funding capacity would rise dramatically—from $60 billion to $250 billion. The plan would also allow the DFC to operate more freely in wealthier countries and make larger equity investments, bypassing some of the usual congressional approvals.
Historically, the DFC has avoided working in high-income nations unless granted special permissions. Under the new DFC national security funding proposal, that restriction would be loosened significantly. The Trump administration also recommends adding the U.S. Secretary of Defense to the DFC board, reinforcing its growing national security role.
According to a letter dated June 18, acting DFC chief Dev Jagadesan noted that these changes would enable the DFC to better support the U.S. agenda across foreign policy, national security, and global economic development. An agency official added that the intent is to ensure the DFC can “fulfill its mandate and be responsive to global investment needs.”
The proposal comes as the agency’s governance rules are under review, with Congress expected to finalize them by early October. Meanwhile, the administration is preparing to officially name Ben Black, son of Apollo Global Management co-founder Leon Black, as the next DFC director. His prior criticisms of DFC’s support for green projects have raised concerns among aid advocates, especially as he advocates for investments in resource-rich regions like Greenland—a territory considered high-income by the World Bank.
The DFC national security funding proposal also comes at a time when the agency is increasing its involvement in geopolitically sensitive regions. For example, earlier this year, the U.S. and Ukraine signed a pact ensuring American access to Ukraine’s mineral resources. In return, the U.S. will continue supporting Ukraine’s defense efforts. The DFC has been tapped to play a key financial role in this strategic partnership.
The DFC, established in 2019, was designed to mobilize private capital to address development challenges and promote U.S. foreign policy in developing economies. For fiscal year 2024, it committed to spending $12 billion in sectors such as food, energy, and infrastructure—though it still holds $49 billion in outstanding commitments.
To implement its plans in Ukraine, the DFC and the Ukrainian government recently launched a U.S.-Ukrainian Reconstruction Investment Fund, designed to attract private investors to critical sectors like hydrocarbons, mining, and transport infrastructure.
Through the DFC national security funding proposal, the Trump administration is clearly seeking to align economic development with strategic security interests, indicating a new era for U.S. development finance.