Trump Administration Seeks Major Expansion of U.S. Development Finance Agency’s Power and Security Role

The Trump administration is proposing a dramatic expansion of the U.S. International Development Finance Corporation (DFC), seeking to quadruple its funding capacity from $60 billion to $250 billion and allow it to operate more freely in high-income countries. The move would shift DFC’s traditional focus from supporting low-income nations to broader national security and foreign policy goals.

Under the proposal, DFC would take larger equity stakes in projects, require less congressional oversight for major investments, and add the U.S. Defense Secretary to its board. Acting DFC head Dev Jagadesan framed the changes as "critical to advancing U.S. national security and economic interests".

The initiative comes amid a regulatory review of DFC’s operations and ahead of Trump’s expected appointment of Ben Black, a controversial figure critical of the agency’s historical green investment strategies, as its new chief.

The DFC, originally established in 2019 to mobilize private capital in developing countries, is also playing a growing role in Ukraine. A new U.S.-Ukraine investment fund will focus on key sectors like mining and infrastructure, in exchange for American access to Ukrainian mineral deals.

If approved, the overhaul would redefine the agency’s mission—prioritizing strategic influence and resource competition over traditional development aid.